Time Magazine 2013 Annual Report Download - page 93

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TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
Goodwill
The following summary of changes in the Company’s Goodwill during the years ended December 31, 2013
and 2012, by reportable segment, is as follows (millions):
December 31,
2011
Acquisitions,
Dispositions
and
Adjustments
Translation
Adjustments
December 31,
2012
Acquisitions,
Dispositions
and
Adjustments
Translation
Adjustments
December 31,
2013
Turner
Gross goodwill .............. $ 27,201 $ 129 $ (1) $ 27,329 $ 7 $ (18) $ 27,318
Impairments ................ (13,277) (61) — (13,338) — — (13,338)
Net goodwill ................ 13,924 68 (1) 13,991 7 (18) 13,980
Home Box Office
Gross goodwill .............. 7,309 — — 7,309 122 — 7,431
Impairments ................ — — — — — — —
Net goodwill ................ 7,309 — — 7,309 122 — 7,431
Warner Bros.
Gross goodwill .............. 9,754 328 5 10,087 (9) 3 10,081
Impairments ................ (4,091) — — (4,091) — — (4,091)
Net goodwill ................ 5,663 328 5 5,996 (9) 3 5,990
Time Inc.
Gross goodwill .............. 18,421 (7) 24 18,438 — 12 18,450
Impairments ................ (15,288) — — (15,288) — — (15,288)
Net goodwill ................ 3,133 (7) 24 3,150 — 12 3,162
Time Warner
Gross goodwill .............. 62,685 450 28 63,163 120 (3) 63,280
Impairments ................ (32,656) (61) — (32,717) — — (32,717)
Net goodwill ................ $ 30,029 $ 389 $ 28 $ 30,446 $ 120 $ (3) $ 30,563
The performance of the Company’s annual impairment analysis did not result in any impairments of
Goodwill in 2013, 2012 or 2011. Refer to Note 1 for a discussion of the 2013 annual impairment test. For the
year ended December 31, 2012, the Turner segment recognized impairments of Goodwill related to the shutdown
of Imagine (see Note 3 for additional information).
The increase in Goodwill for the year ended December 31, 2013 at the Home Box Office segment is
primarily related to the acquisition of HBO Asia and South Asia (see Note 3 for additional information). The
increase in Goodwill for the year ended December 31, 2012 at the Turner 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 Warner Bros. 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.
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