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TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
3. DISPOSITIONS AND ACQUISITIONS
Dispositions
Time Inc. Separation from Time Warner
On March 6, 2013, Time Warner announced that its Board of Directors has authorized management to
proceed with plans for the complete legal and structural separation of the Company’s Time Inc. segment from
Time Warner (the “Time Separation”). The Time Separation is currently expected to be effected as a spin-off of
Time Inc., a wholly owned subsidiary. In the Time Separation, Time Warner will distribute all of its Time Inc.
common stock to Time Warner stockholders, and Time Inc. will become an independent publicly-traded
company. The Time Separation is contingent on the satisfaction of a number of conditions, including the
effectiveness of a registration statement on Form 10, which Time Inc. filed with the Securities and Exchange
Commission on November 22, 2013. Time Warner expects to complete the Time Separation during the second
quarter of 2014.
Imagine
In 2012, Turner shut down its general entertainment network, Imagine, in India and recognized $123 million
of charges related to the shutdown. These charges consisted of $117 million primarily related to certain
receivables, including value added tax receivables, inventories and long-lived assets, including Goodwill, and $6
million related to exit and other transaction costs.
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, Time Inc. 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.
Acquisitions
AEP
On October 1, 2013, Time Inc. acquired American Express Publishing Corporation (“AEP”), including
Travel+Leisure and Food & Wine magazines and their related websites. Time Inc. also entered into a multi-year
agreement to publish Departures magazine on behalf of American Express Company. In connection with the
purchase, Time Inc. recognized a pretax gain of $13 million in the fourth quarter of 2013 resulting from the
settlement of the pre-existing contractual arrangement with AEP pursuant to which Time Inc. previously
provided management services to AEP’s publishing business. The purchase price was not material to the
Company’s financial condition or results of operations, and the acquisition did not have a material impact on its
financial results.
CME
Central European Media Enterprises Ltd. (“CME”) is a publicly-traded broadcasting company operating
leading networks in six Central and Eastern European countries. Since the Company’s initial investment in CME
in May 2009, CME founder and Non-Executive Chairman Ronald S. Lauder had controlled the voting rights
associated with the Company’s shares in CME pursuant to a voting agreement between the parties. During the
second quarter of 2013, the voting agreement ended and the Company assumed control of the voting rights
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