Time Magazine 2012 Annual Report Download - page 117

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TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
Long-lived hard assets located outside the United States, which represent approximately 1% of total assets at
December 31, 2012, are not material. Revenues in different geographical areas are as follows (millions):
Year Ended December 31,
2012 2011 2010
Revenues(a)
United States and Canada ................................ $ 20,729 $ 20,634 $ 19,738
Europe(b) ............................................. 4,757 5,142 4,414
Asia/Pacific Rim ....................................... 1,645 1,599 1,463
Latin America ......................................... 1,346 1,358 1,037
All Other ............................................. 252 241 236
Total revenues ......................................... $ 28,729 $ 28,974 $ 26,888
(a) Revenues are attributed to region based on location of customer.
(b) Revenue in the EuroZone countries comprise approximately 45%, 46% and 49% of Europe for the years ended 2012, 2011 and 2010,
respectively.
16. COMMITMENTS AND CONTINGENCIES
Commitments
Time Warner has commitments under certain network programming, film licensing, creative talent,
employment and other agreements aggregating $27.490 billion at December 31, 2012.
The Company also has commitments for office space, studio facilities and operating equipment. Time
Warner’s net rent expense was $407 million in 2012, $416 million in 2011 and $398 million in 2010. Included in
such amounts was sublease income of $62 million for 2012, $56 million for 2011 and $46 million for 2010.
The commitments under certain programming, film licensing, talent and other agreements (“Programming
and Other”) and minimum rental commitments under noncancelable long-term operating leases (“Operating
Leases”) payable during the next five years and thereafter are as follows (millions):
Programming
and Other
Operating
Leases
2013 ......................................................... $ 4,844 $ 422
2014 ......................................................... 3,545 392
2015 ......................................................... 2,942 349
2016 ......................................................... 2,511 316
2017 ......................................................... 2,173 282
Thereafter ..................................................... 11,475 360
Total ......................................................... $ 27,490 $ 2,121
Additionally, as of December 31, 2012, the Company has future sublease income arrangements of
$232 million, which are not included in Operating Leases in the table above.
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.
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