Time Magazine 2010 Annual Report Download - page 111

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During the year ended December 31, 2010, the Company incurred $18 million at the Filmed Entertainment
segment and $8 million at the Publishing segment related to 2009 restructuring initiatives as a result of changes in
estimates of previously established restructuring accruals.
2008 and Prior Restructuring Activity
For the year ended December 31, 2008, the Company incurred $327 million in restructuring costs primarily
related to various employee terminations and other exit activities, including $142 million at the Filmed
Entertainment segment, $176 million at the Publishing segment and $12 million at Corporate. In addition, the
Company also reversed a $3 million charge at the Networks segment as a result of changes in estimates of
previously established restructuring accruals.
In addition, during the years ended December 31, 2010 and 2009, the Company incurred additional charges
related to 2008 restructuring initiatives as a result of changes in estimates of previously established restructuring
accruals. During the year ended December 31, 2010, the Company incurred $1 million at the Filmed Entertainment
segment and $14 million at the Publishing segment. During the year ended December 31, 2009, the Company
incurred $5 million at the Filmed Entertainment segment and $9 million at the Publishing segment.
Selected Information
Selected information relating to accrued restructuring costs is as follows (millions):
Employee
Terminations Other Exit Costs Total
Remaining liability as of December 31, 2007 ........... $ 87 $ — $ 87
Net accruals ................................... 242 85 327
Noncash reductions
(a)
............................ (1) — (1)
Noncash charges
(b)
.............................. — (17) (17)
Cash paid ..................................... (134) (5) (139)
Remaining liability as of December 31, 2008 ........... 194 63 257
Net accruals ................................... 127 85 212
Cash paid ..................................... (166) (50) (216)
Remaining liability as of December 31, 2009 ........... 155 98 253
Net accruals ................................... 63 34 97
Cash paid ..................................... (111) (48) (159)
Remaining liability as of December 31, 2010 ........... $ 107 $ 84 $ 191
(a)
Noncash reductions relate to the settlement of certain employee-related liabilities with equity instruments.
(b)
Noncash charges relate to the write-down of certain assets, including fixed assets, prepaid marketing materials and certain contract
terminations.
As of December 31, 2010, of the remaining liability of $191 million, $95 million was classified as a current
liability in the consolidated balance sheet, with the remaining $96 million classified as a long-term liability.
Amounts classified as long-term are expected to be paid through 2017.
99
TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)