Time Magazine 2012 Annual Report Download - page 91

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TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
TNT Turkey
In 2012, Turner shut down its TNT television operations in Turkey and recognized charges of $85 million,
consisting of $57 million primarily related to certain receivables, including value added tax receivables,
inventories and other assets; $12 million related to exit and other transaction costs; and $16 million related to an
investment.
QSP
In 2012, the Publishing segment sold, solely in exchange for contingent consideration, assets primarily
comprising the school fundraising business, QSP, and recognized a $36 million loss in connection with the sale.
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):
December 31,
2012 2011
Equity-method investments ........................................... $ 931 $ 939
Fair-value and other investments, including available-for-sale securities:
Deferred compensation investments, recorded at fair value ................ 251 254
Deferred compensation insurance-related investments, recorded at cash
surrender value ................................................ 358 337
Available-for-sale securities ........................................ 117 86
Total fair-value and other investments .................................. 726 677
Cost-method investments ............................................ 390 204
Total ............................................................. $ 2,047 $ 1,820
Available-for-sale securities are recorded at fair value in the Consolidated Balance Sheet, and the realized
gains and losses are included as a component of Other loss, net in the Consolidated Statement of Operations. The
cost basis, unrealized gains and fair market value of available-for-sale securities are set forth below (millions):
December 31,
2012 2011
Cost basis ......................................................... $ 96 $ 66
Gross unrealized gain ............................................... 21 20
Fair value ......................................................... $ 117 $ 86
Gains and losses reclassified from Accumulated other comprehensive loss, net to Other loss, net in the
Consolidated Statement of Operations are determined based on the specific identification method.
Equity-Method Investments
At December 31, 2012, investments accounted for using the equity method primarily included the
Company’s investments in HBO LAG (88% owned), HBO Asia (80% owned), HBO South Asia (75% owned)
and certain other network and filmed entertainment ventures that are generally 20% to 50% owned.
HBO LAG, HBO Asia and HBO South Asia are VIEs and, because voting control of each of these entities is
shared equally with other investors, the Company has determined that it is not the primary beneficiary of these
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