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10. SHAREHOLDERS’ EQUITY
Common Stock Repurchase Program
On January 28, 2010, Time Warner’s Board of Directors authorized up to $3.0 billion of share repurchases
beginning January 1, 2010. Purchases under the stock repurchase program may be made from time to time on the
open market and in privately negotiated transactions. The size and timing of these purchases are based on a number
of factors, including price and business and market conditions. From January 1, 2010 through December 31, 2010,
the Company repurchased approximately 65 million shares of common stock for approximately $1.999 billion
pursuant to trading programs under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. On
January 25, 2011, Time Warner’s Board of Directors authorized up to $5.0 billion of share repurchases beginning
January 1, 2011.
Shares Authorized and Outstanding
At December 31, 2010, shareholders’ equity of Time Warner included 1.099 billion shares of common stock
(net of approximately 542 million shares of common stock held in treasury). As of December 31, 2010, Time
Warner is authorized to issue up to 750 million shares of preferred stock, up to 8.33 billion shares of common stock
and up to 600 million shares of additional classes of common stock. At December 31, 2009, shareholders’ equity of
Time Warner included 1.157 billion shares of common stock (net of approximately 477 million shares of common
stock held in treasury).
Spin-Offs of TWC and AOL
In connection with the TWC Separation, the Company recognized a reduction of $7.989 billion to shareholders’
equity, including $1.167 billion attributable to noncontrolling interests. In connection with the AOL Separation, the
Company recognized a reduction of $3.202 billion to shareholders’ equity.
Comprehensive Income (Loss)
Comprehensive income (loss) is reported in the consolidated statement of equity as a component of retained
earnings (accumulated deficit) and consists of net income (loss) and other gains and losses affecting shareholders’
equity that, under GAAP, are excluded from net income (loss). For Time Warner, such items consist primarily of
unrealized gains and losses on marketable equity securities, gains and losses on certain derivative financial
instruments, foreign currency translation gains (losses) and changes in unfunded and underfunded benefit plan
obligations.
88
TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)