Time Magazine 2010 Annual Report Download - page 101

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The following summary sets forth the components of other comprehensive income (loss), net of tax, for Time
Warner shareholders accumulated in equity (millions):
Foreign Currency
Translation
Gains (Losses)
Net Unrealized
Gains (Losses) on
Securities
Net Derivative
Financial
Instrument
Gains (Losses)
Net Unfunded/
Underfunded
Benefit Obligation
Net Accumulated
Other
Comprehensive
Income (Loss)
Balance at December 31, 2007 . . . $ 596 $ 39 $ (9) $ (477) $ 149
2008 activity . ............... (956) (18) (71) (780) (1,825)
Balance at December 31, 2008 . . . (360) 21 (80) (1,257) (1,676)
AOL Separation.............. 278 — — — 278
TWC Separation ............. — — 4 387 391
2009 activity . ............... 221 (12) 35 183 427
Balance at December 31, 2009 . . . 139 9 (41) (687) (580)
2010 activity . ............... (131) (1) 25 55 (52)
Balance at December 31, 2010 . . . $ 8 $ 8 $ (16) $ (632) $ (632)
For the years ended December 31, 2010, 2009 and 2008, the tax impact related to net unrealized gains (losses)
on securities was $0 million, $7 million and $11 million, respectively. For the years ended December 31, 2010, 2009
and 2008, the tax impact related to net derivative financial instrument gains (losses) was $14 million, $21 million
and $44 million, respectively. For the years ended December 31, 2010, 2009 and 2008, the tax impact related to net
unfunded/underfunded benefit obligations was $30 million, $129 million and $515 million, respectively.
11. INCOME PER COMMON SHARE
Set forth below is a reconciliation of basic and diluted income per common share from continuing operations
(millions, except per share amounts):
2010 2009 2008
Years Ended December 31,
Income (loss) from continuing operations attributable to Time Warner
Inc. shareholders ....................................... $ 2,578 $ 2,088 $ (5,090)
Income allocated to participating securities ...................... (13) (9) (5)
Income (loss) from continuing operations attributable to Time Warner
Inc. common shareholders — basic .......................... $ 2,565 $ 2,079 $ (5,095)
Average number of common shares outstanding — basic ............ 1,128.4 1,184.0 1,194.2
Dilutive effect of equity awards .............................. 16.9 11.1 —
Average number of common shares outstanding — diluted........... 1,145.3 1,195.1 1,194.2
Income (loss) per common share from continuing operations
attributable to Time Warner Inc. common shareholders:
Basic . . .............................................. $ 2.27 $ 1.76 $ (4.27)
Diluted .............................................. $ 2.25 $ 1.75 $ (4.27)
Diluted income per common share for the years ended December 31, 2010, 2009 and 2008 excludes
approximately 127 million, 160 million and 151 million, respectively, common shares that may be issued
under the Company’s stock compensation plans because they do not have a dilutive effect.
89
TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)