Time Magazine 2011 Annual Report Download - page 89

Download and view the complete annual report

Please find page 89 of the 2011 Time Magazine annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 136

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136

TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
The impairments noted above did not result in non-compliance with respect to any debt covenants.
The following summary of changes in the Company’s Goodwill related to continuing operations during the
years ended December 31, 2011 and 2010, by reportable segment, is as follows (millions):
December 31,
2009
Acquisitions,
Dispositions
and
Adjustments
Translation
Adjustments
December 31,
2010
Acquisitions,
Dispositions
and
Adjustments
Translation
Adjustments
December 31,
2011
Networks
Gross goodwill ........... $ 34,319 $ 192 $ (2) $ 34,509 $ 11 $ (10) $ 34,510
Impairments ............. (13,277) — — (13,277) — — (13,277)
Net goodwill ............. 21,042 192 (2) 21,232 11 (10) 21,233
Filmed Entertainment
Gross goodwill ........... 9,517 197 (5) 9,709 47 (2) 9,754
Impairments ............. (4,091) — — (4,091) — — (4,091)
Net goodwill ............. 5,426 197 (5) 5,618 47 (2) 5,663
Publishing
Gross goodwill ........... 18,459 2 (29) 18,432 — (11) 18,421
Impairments ............. (15,288) — — (15,288) — — (15,288)
Net goodwill ............. 3,171 2 (29) 3,144 — (11) 3,133
Time Warner
Gross goodwill ........... 62,295 391 (36) 62,650 58 (23) 62,685
Impairments ............. (32,656) — — (32,656) — — (32,656)
Net goodwill ............. $ 29,639 $ 391 $ (36) $ 29,994 $ 58 $ (23) $ 30,029
The Company’s intangible assets and related accumulated amortization consisted of the following (millions):
December 31, 2011 December 31, 2010
Gross
Accumulated
Amortization(a) Net Gross
Accumulated
Amortization(a) Net
Intangible assets subject to amortization:
Film library ............................... $ 3,514 $ (2,194) $ 1,320 $ 3,534 $ (2,036) $ 1,498
Brands, tradenames and other
intangible assets .......................... 2,015 (1,103) 912 2,000 (1,006) 994
Total .................................... $ 5,529 $ (3,297) $ 2,232 $ 5,534 $ (3,042) $ 2,492
(a) The film library is amortized using a film forecast methodology. Amortization of brands, tradenames and other intangible assets subject
to amortization is provided generally on a straight-line basis over their respective useful lives.
The Company recorded amortization expense of $269 million in 2011 compared to $264 million in 2010 and
$280 million in 2009. Based on the amount of intangible assets subject to amortization at December 31, 2011, the
estimated amortization expense for each of the succeeding five years ended December 31 is as follows: 2012 —
$252 million; 2013 — $238 million; 2014 — $230 million, 2015 — $213 million; and 2016 — $207 million.
These amounts may vary as acquisitions and dispositions occur in the future and as purchase price allocations are
finalized.
75