Time Magazine 2013 Annual Report Download - page 94

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TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
Intangible Assets
The Company recorded noncash impairments of intangible assets during the years ended December 31, 2013,
2012 and 2011 by reportable segment, as follows (millions):
Year Ended December 31,
2013 2012 2011
Turner ......................................................... $ 18 $ 79 $ 5
Warner Bros. ....................................................111
Time Inc. ....................................................... 78 — 13
Time Warner .................................................... $ 97 $ 80 $ 19
For the year ended December 31, 2013, the Company recorded an impairment of intangible assets at the
Time Inc. segment in connection with the performance of its annual impairment analysis as well as in connection
with triggering events affecting two of its tradenames. For the year ended December 31, 2012, the Turner
segment recognized impairments of both Goodwill and intangible assets related to the shutdown of Imagine (see
Note 3 for additional information). The impairments noted above did not result in non-compliance with respect to
any debt covenants.
The Company’s intangible assets subject to amortization and related accumulated amortization consisted of
the following (millions):
December 31, 2013 December 31, 2012
Gross
Accumulated
Amortization(a) Net Gross
Accumulated
Amortization(a) Net
Intangible assets subject to
amortization:
Film library ...................... $ 3,452 $(2,494) $ 958 $ 3,452 $(2,345) $ 1,107
Brands, tradenames and other
intangible assets ................. 2,156 (1,194) 962 2,145 (1,144) 1,001
Total ............................ $ 5,608 $(3,688) $ 1,920 $ 5,597 $(3,489) $ 2,108
(a) The film library is amortized using a film forecast computation methodology. Amortization of brands, tradenames and other intangible
assets subject to amortization is provided generally on a straight-line basis over their respective useful lives.
Effective January 1, 2014, certain tradenames at the Time Inc. segment with a carrying value totaling
approximately $586 million that were previously assigned indefinite lives have been assigned finite lives of 17
years and will begin to be amortized starting in January 2014.
The Company recorded amortization expense of $251 million in 2013 compared to $248 million in 2012 and
$269 million in 2011. Amortization may vary as acquisitions and dispositions occur in the future and as purchase
price allocations are finalized. The Company’s estimated amortization expense for the succeeding five years
ended December 31 is as follows (millions):
2014 2015 2016 2017 2018
Estimated amortization expense ............. $ 274 $ 259 $ 249 $ 241 $ 236
78