Time Magazine 2009 Annual Report Download - page 39

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impairments of $18 million related to GameTap, an online video game business, at the Networks segment and
$30 million related to a sub-lease with a tenant that filed for bankruptcy in September 2008, $21 million related to
Southern Living At Home and $5 million related to certain other asset write-offs at the Publishing segment.
During the year ended December 31, 2007, the Company recorded a $34 million noncash impairment at the
Networks segment related to the impairment of the Courtroom Television Network LLC (“Court TV”) tradename as
a result of rebranding the Court TV network name to truTV.
Gain (Loss) on Sale of Assets
For the year ended December 31, 2009, the Company recognized a $33 million loss on the sale of Warner Bros.’
Italian cinema assets.
For the year ended December 31, 2008, the Company recorded a $3 million loss on the sale of GameTap at the
Networks segment.
For the year ended December 31, 2007, the Company recorded a $6 million gain on the sale of four non-
strategic magazine titles at the Publishing segment.
Investment Losses, Net
For the year ended December 31, 2009, the Company recognized net investment losses of $21 million,
including a $23 million impairment of the Company’s investment in Miditech Pvt. Limited, a programming
production company in India, and $43 million of other miscellaneous investment losses, net, partially offset by a
$28 million gain on the sale of the Company’s investment in TiVo Inc. and a $17 million gain on the sale of the
Company’s investment in Eidos plc (formerly Sci Entertainment Group plc) (“Eidos”).
For the year ended December 31, 2008, the Company recognized net investment losses of $60 million,
including a $38 million impairment of the Company’s investment in Eidos, $12 million of other miscellaneous
investment losses, net and $10 million of losses resulting from market fluctuations in equity derivative instruments.
For the year ended December 31, 2007, the Company recognized net investment gains of $75 million, including
a $100 million gain on the Company’s sale of its 50% interest in Bookspan, a $56 million gain on the sale of the
Company’s investment in Oxygen Media Corporation, $47 million of other miscellaneous investment gains, net and
$2 million of gains resulting from market fluctuations in equity derivative instruments, partially offset by a
$73 million impairment of the Company’s investment in The CW and a $57 million impairment of the Company’s
investment in Eidos.
Amounts Related to the Separation of TWC
The Company incurred pretax direct transaction costs (e.g., legal and professional fees) related to the separation
of TWC of $6 million for the year ended December 31, 2009 and $11 million for the year ended December 31, 2008,
which have been reflected in other income (loss), net in the accompanying consolidated statement of operations. In
addition, for the year ended December 31, 2009, the Company recognized $20 million of other income related to the
increase in the estimated fair value of Time Warner equity awards held by TWC employees.
Costs Related to the Separation of AOL
During the year ended December 31, 2009, the Company incurred costs related to the separation of AOL of
$15 million, which have been reflected in other income (loss), net in the accompanying consolidated statement of
operations. These costs related to the solicitation of consents from debt holders to amend the indentures governing
certain of the Company’s debt securities for the year ended December 31, 2009. For additional information, refer to
27
TIME WARNER INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION – (Continued)