Time Magazine 2009 Annual Report Download - page 96

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The following summary of changes in the Company’s goodwill related to continuing operations during the
years ended December 31, 2009 and 2008, by reportable segment, is as follows (millions):
December 31,
2007
Acquisitions,
Dispositions and
Adjustments
(a)
Impairments
Translation
Adjustments
December 31,
2008
Acquisitions,
Dispositions
and
Adjustments
(a)
Translation
Adjustments
December 31,
2009
(recast) (recast)
Networks
Gross goodwill. . . $ 34,352 $ 606 $ — $ 4 $ 34,962 $ (492) $ 5 $ 34,475
Impairments . . . . (13,277) — — — (13,277) — — (13,277)
Net goodwill . . . . 21,075 606 — 4 21,685 (492) 5 21,198
Filmed
Entertainment
Gross goodwill. . . 9,551 (14) — (4) 9,533 (19) 3 9,517
Impairments . . . . (4,091) — — — (4,091) — — (4,091)
Net goodwill . . . . 5,460 (14) — (4) 5,442 (19) 3 5,426
Publishing
Gross goodwill. . . 18,851 98 — (521) 18,428 (8) 39 18,459
Impairments . . . . (9,281) — (6,007) — (15,288) — — (15,288)
Net goodwill . . . . 9,570 98 (6,007) (521) 3,140 (8) 39 3,171
Time Warner
Gross goodwill. . . 62,754 690 — (521) 62,923 (519) 47 62,451
Impairments . . . . (26,649) — (6,007) — (32,656) — — (32,656)
Net goodwill . . . . $ 36,105 $ 690 $ (6,007) $ (521) $ 30,267 $ (519) $ 47 $ 29,795
(a)
2009 includes $481 million related to allocations of the final purchase price adjustments related to HBO LAG at the Networks segment.
2008 includes $612 million related to the acquisitions of additional interests in HBO LAG at the Networks segment as well as $60 million
related to the acquisition of QSP, Inc. and its Canadian affiliate Quality Service Programs Inc. (collectively, “QSP”) and $8 million related
to the acquisition of Mousebreaker at the Publishing segment.
The Company’s intangible assets and related accumulated amortization consisted of the following (millions):
Gross
Accumulated
Amortization
(a)
Net Gross
Accumulated
Amortization
(a)
Net
December 31, 2009 December 31, 2008
(recast)
Intangible assets subject to amortization:
Film Library
(b)
. . . . . . . . . . . . . . . . . . $ 3,635 $ (1,871) $ 1,764 $ 3,861 $ (1,701) $ 2,160
Brands, trademarks and other intangible
assets
(c)
. . . . . . . . . . . . . . . . . . . . . . 2,275 (971) 1,304 1,912 (877) 1,035
Total . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,910 $ (2,842) $ 3,068 $ 5,773 $ (2,578) $ 3,195
Intangible assets not subject to
amortization:
Brands, trademarks and other intangible
assets
(c)
. . . . . . . . . . . . . . . . . . . . . . $ 8,093 $ (257) $ 7,836 $ 7,985 $ (257) $ 7,728
(a)
The Film Library is amortized using a film forecast methodology. Amortization of Brands, trademarks and other intangible assets subject to
amortization is provided generally on a straight-line basis over their respective useful lives. The weighted-average useful life for such
intangibles is 17 years. The Company evaluates the useful lives of its finite-lived intangible assets each reporting period to determine
whether events or circumstances warrant revised estimates of useful lives.
(b)
The decrease in 2009 is primarily related to an adjustment of $226 million representing a change in cumulative participations payable with
respect to film library titles at Warner Bros., which is required to be recognized as a reduction to the related film cost asset.
(c)
The increase in 2009 is primarily related to intangible assets recognized for HBO LAG.
84
TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)