Time Magazine 2009 Annual Report Download - page 98

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Summary of Discontinued Operations
Discontinued operations in 2009, 2008 and 2007 reflect the financial condition and results of operations of
TWC and AOL. In addition, discontinued operations in 2007 reflect certain businesses sold, which included the
Parenting Group, most of the Time4 Media magazine titles, The Progressive Farmer magazine, Leisure Arts, Inc.
(“Leisure Arts”) and the Atlanta Braves baseball franchise (the “Braves”). Financial data for the discontinued
operations for 2009, 2008 and 2007 is as follows (millions, except per share amounts):
2009 2008 2007
Years Ended December 31,
(recast) (recast)
Total revenues .................................... $ 6,500 $ 21,365 $ 21,269
Pretax income (loss) ............................... 849 (14,227) 4,276
Income tax provision ............................... (421) 4,668 (1,536)
Net income (loss) ................................. $ 428 $ (9,559) $ 2,740
Net income (loss) attributable to Time Warner Inc.
shareholders ................................... $ 389 $ (8,308) $ 2,498
Per share information attributable to Time Warner Inc.
common shareholders:
Basic net income (loss) per common share ............... $ 0.33 $ (6.96) $ 2.02
Average common shares outstanding — basic ............. 1,184.0 1,194.2 1,239.6
Diluted net income (loss) per common share ............. $ 0.33 $ (6.96) $ 1.99
Average common shares outstanding — diluted ........... 1,195.1 1,194.2 1,254.0
Discontinued operations for the year ended December 31, 2009 included direct transaction costs (e.g., legal and
professional fees) related to the separations of TWC and AOL of $112 million. Discontinued operations for the year
ended December 31, 2008, included such direct transaction and financing costs related to the separation of TWC of
$206 million.
Also included in discontinued operations for 2008 was a noncash impairment of $14.822 billion and a related
tax benefit of $5.729 billion to reduce the carrying values of certain cable franchise rights at TWC and a noncash
impairment of $2.207 billion and a related tax benefit of $90 million to reduce the carrying value of goodwill at
AOL.
The Networks segment of Time Warner recognized approximately $170 million of Subscription revenues from
TWC in 2009 through the Distribution Record Date and $840 million and $804 million for the years ended
December 31, 2008 and 2007, respectively.
86
TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)