Time Magazine 2010 Annual Report Download - page 38

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Asset Impairments
During the year ended December 31, 2010, the Company recorded noncash impairments of $9 million at the
Filmed Entertainment segment related to the termination of a games licensing relationship and $11 million at the
Publishing segment related to certain intangible assets.
During the year ended December 31, 2009, the Company recorded noncash impairments of $52 million at the
Networks segment related to Turner’s interest in a general entertainment network in India and $33 million at the
Publishing segment related to certain fixed assets in connection with the Publishing segment’s restructuring
activities.
During the year ended December 31, 2008, the Company recorded noncash impairments related to goodwill
and identifiable intangible assets of $7.139 billion at the Publishing segment. The Company also recorded noncash
impairments of $18 million at the Networks segment related to GameTap, an online video game business, and
$30 million at the Publishing segment related to a sub-lease with a tenant that filed for bankruptcy in September
2008, $21 million at the Publishing segment related to Southern Living At Home and $5 million at the Publishing
segment related to certain other asset write-offs.
Gain (Loss) on Operating Assets
For the year ended December 31, 2010, the Company recognized a $59 million gain at the Networks segment
upon the acquisition of its controlling interest in HBO CE, reflecting the recognition of the excess of the fair value
over the Company’s carrying costs of its original investment in HBO CE. For the year ended December 31, 2010, the
Company also recorded noncash income of $11 million at the Filmed Entertainment segment related to a fair value
adjustment on certain contingent consideration arrangements relating to acquisitions.
For the year ended December 31, 2009, the Company recognized a $33 million loss at the Filmed Entertainment
segment on the sale of Warner Bros.’ Italian cinema assets.
For the year ended December 31, 2008, the Company recorded a $3 million loss at the Networks segment on the
sale of GameTap.
Investment Gains (Losses), Net
For the year ended December 31, 2010, the Company recognized net investment gains of $32 million, including
$13 million of miscellaneous investment gains, net, and noncash income of $19 million related to fair value
adjustments on certain options to redeem securities.
For the year ended December 31, 2009, the Company recognized net investment losses of $21 million,
including a $23 million impairment of the Company’s investment in Miditech Pvt. Limited, a programming
production company in India, and $43 million of other miscellaneous investment losses, net, partially offset by a
$28 million gain on the sale of the Company’s investment in TiVo Inc. and a $17 million gain on the sale of the
Company’s investment in Eidos plc. (“Eidos”).
For the year ended December 31, 2008, the Company recognized net investment losses of $60 million,
including a $38 million impairment of the Company’s investment in Eidos, $12 million of other miscellaneous
investment losses, net and $10 million of losses resulting from market fluctuations in equity derivative instruments.
Amounts Related to the Separation of TWC
For the year ended December 31, 2010, the Company recognized $6 million of other loss related to the
expiration, exercise and net change in the estimated fair value of Time Warner equity awards held by Time Warner
Cable Inc. (“TWC”) employees.
26
TIME WARNER INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION – (Continued)