Time Magazine 2010 Annual Report Download - page 87

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Financial data for the discontinued operations is as follows (millions, except per share amounts):
2009 2008
Years Ended December 31,
Total revenues .............................................. $ 6,500 $ 21,365
Pretax income (loss).......................................... 849 (14,227)
Income tax provision ......................................... (421) 4,668
Net income (loss)............................................ $ 428 $ (9,559)
Net income (loss) attributable to Time Warner Inc. shareholders ......... $ 389 $ (8,308)
Per share information attributable to Time Warner Inc. common
shareholders:
Basic net income (loss) per common share ......................... $ 0.32 $ (6.95)
Diluted net income (loss) per common share ........................ $ 0.32 $ (6.95)
Discontinued operations for the year ended December 31, 2009 included direct transaction costs (e.g., legal and
professional fees) related to the separations of TWC and AOL of $112 million. Discontinued operations for the year
ended December 31, 2008, included such direct transaction and financing costs related to the TWC Separation of
$206 million.
Also included in discontinued operations for 2008 was a noncash impairment of $14.822 billion and a related
tax benefit of $5.729 billion to reduce the carrying values of certain cable franchise rights at TWC and a noncash
impairment of $2.207 billion and a related tax benefit of $90 million to reduce the carrying value of goodwill at
AOL.
The Networks segment of Time Warner recognized approximately $170 million of Subscription revenues from
TWC in 2009 through the Distribution Record Date and $840 million for the year ended December 31, 2008.
4. INVESTMENTS
The Company’s investments consist of equity-method investments, fair-value and other investments, including
available-for-sale securities, and cost-method investments. Time Warner’s investments, by category, consist of
(millions):
2010 2009
December 31,
Equity-method investments ....................................... $ 883 $ 641
Fair-value and other investments, including available-for-sale securities ...... 600 578
Cost-method investments......................................... 313 323
Total ....................................................... $ 1,796 $ 1,542
Equity-Method Investments
At December 31, 2010, investments accounted for using the equity method primarily included the Company’s
investments in HBO LAG (80% owned), HBO Asia (80% owned), HBO South Asia (75% owned) and certain other
network and filmed entertainment ventures which are generally 20%-50% owned.
75
TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)