Time Magazine 2013 Annual Report Download - page 45

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TIME WARNER INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION – (Continued)
RESULTS OF OPERATIONS
Recent Accounting Guidance
See Note 1, “Description of Business, Basis of Presentation and Summary of Significant Accounting
Policies,” to the accompanying consolidated financial statements for a discussion of recent accounting guidance.
Transactions and Other Items Affecting Comparability
As more fully described herein and in the related notes to the accompanying consolidated financial
statements, the comparability of Time Warner’s results has been affected by transactions and certain other items
in each period as follows (millions):
Year Ended December 31,
2013 2012 2011
Asset impairments ........................................... $ (140) $ (186) $ (44)
Gain on operating assets, net ................................... 142 9 7
Other ..................................................... 4 (31) (22)
Impact on Operating Income ................................... 6 (208) (59)
Investment gains (losses), net .................................. 61 (30) (136)
Amounts related to the separation of Time Warner Cable Inc. ......... 3 4 (5)
Amounts related to the disposition of Warner Music Group .......... (1) (7) —
Items affecting comparability relating to equity method investments . . . (30) (94) (1)
Pretax impact ............................................... 39 (335) (201)
Income tax impact of above items ............................... (34) 100 43
Impact of items affecting comparability on income from continuing
operations attributable to Time Warner Inc. shareholders .......... $ 5 $ (235) $ (158)
In addition to the items affecting comparability described above, the Company incurred Restructuring and
severance costs of $246 million, $119 million and $113 million for the years ended December 31, 2013, 2012
and 2011, respectively. For further discussion of Restructuring and severance costs, see “Consolidated Results”
and “Business Segment Results.”
Asset Impairments
During the year ended December 31, 2013, the Company recorded noncash impairments of $47 million at the
Turner segment of which $18 million related to certain of Turner’s international intangible assets, $18 million
related to a building, $10 million related to programming assets resulting from Turner’s decision to shut down
certain of its entertainment networks in Spain and Belgium and $1 million related to miscellaneous assets, $7
million at the Warner Bros. segment related to miscellaneous assets, $79 million at the Time Inc. segment
primarily related to certain tradenames and $7 million at Corporate related to certain internally developed
software.
During the year ended December 31, 2012, the Company recognized $174 million of charges at the Turner
segment in connection the shutdown of Turner’s general entertainment network, Imagine, in India and its TNT
television operations in Turkey (the “Imagine and TNT Turkey Shutdowns”) primarily related to certain
receivables, including value added tax receivables, inventories and long-lived assets, including Goodwill. For the
year ended December 31, 2012, the Company also recognized $12 million of other miscellaneous noncash asset
impairments consisting of $2 million at the Turner segment, $4 million at the Warner Bros. segment, and $6
million at the Time Inc. segment.
29