Time Magazine 2010 Annual Report Download - page 115

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Time Warner also has commitments under certain programming, network licensing, artist, franchise and other
agreements aggregating $25.961 billion at December 31, 2010, which are payable as follows (millions):
2011 .............................................................. $ 5,007
2012 .............................................................. 3,541
2013 .............................................................. 3,118
2014 .............................................................. 2,622
2015 .............................................................. 2,341
Thereafter .......................................................... 9,332
Total .............................................................. $ 25,961
Contingent Commitments
The Company also has certain contractual arrangements that would require it to make payments or provide
funding if certain circumstances occur (“contingent commitments”). Contingent commitments include contingent
consideration to be paid in connection with acquisitions and put/call arrangements on certain investment
transactions, which could require the Company to make payments to acquire certain assets or ownership interests.
The following table summarizes the Company’s contingent commitments at December 31, 2010. For put/call
options where payment obligations are outside the control of the Company, the timing of amounts presented in the
table represents the earliest period in which payment could be made. For other contingent commitments, the timing
of amounts presented in the table represents when the maximum contingent commitment will expire, but does not
mean that the Company expects to incur an obligation to make any payments within that time period. In addition,
amounts presented do not reflect the effects of any indemnification rights the Company might possess (millions).
Nature of Contingent Commitments Total 2011 2012-2013 2014-2015 Thereafter
Guarantees
(a)
....................... $ 1,199 $ 81 $ 77 $ 80 $ 961
Letters of credit and other contingent
commitments .................... 1,154 114 490 309 241
Total contingent commitments .......... $ 2,353 $ 195 $ 567 $ 389 $ 1,202
(a)
Amounts primarily reflect the Six Flags Guarantee discussed below.
The following is a description of the Company’s contingent commitments at December 31, 2010:
• Guarantees include guarantees the Company has provided on certain lease and operating commitments
entered into by (a) entities formerly owned by the Company, including the arrangements described below,
and (b) ventures in which the Company is or was a venture partner.
Six Flags
In connection with the Company’s former investment in the Six Flags theme parks located in Georgia and
Texas (“Six Flags Georgia” and “Six Flags Texas,” respectively, and, collectively, the “Parks”), in 1997,
certain subsidiaries of the Company (including Historic TWand, in connection with the separation of TWC
in 2009, Warner Bros. Entertainment Inc.) agreed to guarantee (the “Six Flags Guarantee”) certain
obligations of the partnerships that hold the Parks (the “Partnerships”) for the benefit of the limited partners
in such Partnerships, including the following (the “Guaranteed Obligations”): (a) making a minimum
annual distribution to such limited partners; (b) making a minimum amount of capital expenditures each
year; (c) offering each year to purchase 5% of the limited partnership units of the Partnerships (plus any
such units not purchased pursuant to such offer in any prior year; the estimated maximum amount for 2011
is approximately $334 million) based on a price determined as provided in the applicable agreement;
(d) making annual ground lease payments; and (e) either (i) purchasing all of the outstanding limited
103
TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)