Time Magazine 2010 Annual Report Download - page 119

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that dismissal. On November 8, 2010, Anderson News filed a notice of appeal with the U.S. Court of Appeals for the
Second Circuit.
The Company intends to defend against or prosecute, as applicable, the lawsuits and proceedings described
above vigorously, but is unable to predict the outcome of these matters or to reasonably estimate the possible loss or
range of loss arising from the claims against the Company.
From time to time, the Company receives notices from third parties claiming that it infringes their intellectual
property rights. Claims of intellectual property infringement could require Time Warner to enter into royalty or
licensing agreements on unfavorable terms, incur substantial monetary liability or be enjoined preliminarily or
permanently from further use of the intellectual property in question. In addition, certain agreements entered into by
the Company may require the Company to indemnify the other party for certain third-party intellectual property
infringement claims, which could increase the Company’s damages and its costs of defending against such claims.
Even if the claims are without merit, defending against the claims can be time-consuming and costly.
The costs and other effects of pending or future litigation, governmental investigations, legal and administrative
cases and proceedings (whether civil or criminal), settlements, judgments and investigations, claims and changes in
those matters (including those matters described above), and developments or assertions by or against the Company
relating to intellectual property rights and intellectual property licenses, could have a material adverse effect on the
Company’s business, financial condition and operating results.
17. RELATED PARTY TRANSACTIONS
The Company has entered into certain transactions in the ordinary course of business with unconsolidated
investees accounted for under the equity method of accounting. These transactions have been executed on terms
comparable to the terms of transactions with unrelated third parties and primarily include the licensing of broadcast
rights to The CW broadcast network for film and television product, by the Filmed Entertainment segment and the
licensing of rights to carry cable television programming provided by the Networks segment.
Revenues from transactions with related parties were $360 million, $316 million and $404 million for the years
ended December 31, 2010, 2009 and 2008, respectively. Expenses from transactions with related parties were
$62 million, $54 million and $41 million for the years ended December 31, 2010, 2009 and 2008, respectively.
18. ADDITIONAL FINANCIAL INFORMATION
Cash Flows
Additional financial information with respect to cash (payments) and receipts is as follows (millions):
2010 2009 2008
Years Ended December 31,
Cash payments made for interest ....................... $ (1,086) $ (1,125) $ (1,406)
Interest income received ............................. 26 43 65
Cash interest payments, net ........................... $ (1,060) $ (1,082) $ (1,341)
Cash payments made for income taxes .................. $ (961) $ (1,150) $ (691)
Income tax refunds received .......................... 90 99 137
TWC and AOL tax sharing (payments) receipts, net
(a)
....... (87) 241 342
Cash tax (payments) receipts, net ...................... $ (958) $ (810) $ (212)
(a)
Represents net amounts (paid) received from TWC and AOL in accordance with tax sharing agreements with TWC and AOL.
107
TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)