Time Magazine 2012 Annual Report Download - page 88

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TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
The following summary of changes in the Company’s Goodwill related to continuing operations during the
years ended December 31, 2012 and 2011, by reportable segment, is as follows (millions):
December 31,
2010
Acquisitions,
Dispositions
and
Adjustments
Translation
Adjustments
December 31,
2011
Acquisitions,
Dispositions
and
Adjustments
Translation
Adjustments
December 31,
2012
Networks
Gross goodwill .............. $ 34,509 $ 11 $(10) $ 34,510 $ 129 $ (1) $ 34,638
Impairments ................ (13,277) — — (13,277) (61) — (13,338)
Net goodwill ................ 21,232 11 (10) 21,233 68 (1) 21,300
Film and TV Entertainment
Gross goodwill .............. 9,709 47 (2) 9,754 328 5 10,087
Impairments ................ (4,091) — — (4,091) — — (4,091)
Net goodwill ................ 5,618 47 (2) 5,663 328 5 5,996
Publishing
Gross goodwill .............. 18,432 — (11) 18,421 (7) 24 18,438
Impairments ................ (15,288) — — (15,288) — — (15,288)
Net goodwill ................ 3,144 — (11) 3,133 (7) 24 3,150
Time Warner
Gross goodwill .............. 62,650 58 (23) 62,685 450 28 63,163
Impairments ................ (32,656) — — (32,656) (61) — (32,717)
Net goodwill ................ $ 29,994 $ 58 $(23) $ 30,029 $ 389 $ 28 $ 30,446
The increase in Goodwill for the year ended December 31, 2012 at the Networks segment is primarily related
to the acquisition of Bleacher Report (see Note 3 for additional information). The increase in Goodwill for the
year ended December 31, 2012 at the Film and TV Entertainment segment is primarily related to contingent
consideration earned by the former shareholders of TT Games Limited, which was acquired by the Company in
2007, upon achieving certain earnings targets specified in the acquisition agreement. Such amount has been
accounted for in accordance with business combination guidance in place at the time of the acquisition.
Intangible Assets
The Company recorded noncash impairments of intangible assets during the years ended December 31, 2012,
2011 and 2010 by reportable segment, as follows (millions):
Year Ended December 31,
2012 2011 2010
Networks ....................................................... $ 79 $ 5 $ —
Film and TV Entertainment .........................................119
Publishing ...................................................... — 13 11
Time Warner .................................................... $ 80 $ 19 $ 20
The impairments noted above did not result in non-compliance with respect to any debt covenants.
72