Time Magazine 2012 Annual Report Download - page 52

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TIME WARNER INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION – (Continued)
Film and TV Entertainment. Revenues and Operating Income of the Film and TV Entertainment segment
for the years ended December 31, 2012, 2011 and 2010 are as follows (millions):
Year Ended December 31, % Change
2012 2011 2010 2012 vs. 2011 2011 vs. 2010
Revenues:
Subscription ............................... $ 117 $ 86 $ 66 36% 30%
Advertising ................................ 81 85 75 (5%) 13%
Content ................................... 11,522 12,274 11,359 (6%) 8%
Other ..................................... 298 193 122 54% 58%
Total revenues ............................... 12,018 12,638 11,622 (5%) 9%
Costs of revenues(a) ........................... (8,503) (9,081) (8,429) (6%) 8%
Selling, general and administrative(a) .............. (1,879) (1,857) (1,684) 1% 10%
Gain on operating assets ........................ 1 9 11 (89%) (18%)
Asset impairments ............................ (4) (21) (9) (81%) 133%
Restructuring and severance costs ................ (23) (41) (30) (44%) 37%
Depreciation ................................. (202) (198) (186) 2% 6%
Amortization ................................ (180) (186) (188) (3%) (1%)
Operating Income ............................. $ 1,228 $ 1,263 $ 1,107 (3%) 14%
(a) Costs of revenues and Selling, general and administrative expenses exclude depreciation.
Content revenues primarily relate to theatrical product (which is content made available for initial exhibition
in theaters) and television product (which is content made available for initial airing on television). The
components of Content revenues for the years ended December 31, 2012, 2011 and 2010 are as follows
(millions):
Year Ended December 31, % Change
2012 2011 2010 2012 vs. 2011 2011 vs. 2010
Theatrical product:
Film rentals ............................. $ 1,894 $ 2,101 $ 2,250 (10%) (7%)
Home video and electronic delivery ......... 2,320 2,866 2,760 (19%) 4%
Television licensing ...................... 1,601 1,578 1,621 1% (3%)
Consumer products and other ............... 208 164 127 27% 29%
Total theatrical product ..................... 6,023 6,709 6,758 (10%) (1%)
Television product:
Television licensing ...................... 3,433 3,371 2,998 2% 12%
Home video and electronic delivery ......... 1,006 877 843 15% 4%
Consumer products and other ............... 299 246 216 22% 14%
Total television product ..................... 4,738 4,494 4,057 5% 11%
Other .................................... 761 1,071 544 (29%) 97%
Total Content revenues ..................... $ 11,522 $ 12,274 $ 11,359 (6%) 8%
36