Time Magazine 2014 Annual Report Download - page 86

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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, 2014, 2013 and
2012 by reportable segment, as follows (millions):
Year Ended December 31,
2014 2013 2012
(recast) (recast)
Turner ....................................................... $ 1 $ 18 $ 79
Home Box Office .............................................. 4 - -
Warner Bros. .................................................. 13 1 1
Time Warner .................................................. $ 18 $ 19 $ 80
The Company’s intangible assets subject to amortization and related accumulated amortization consisted of the following
(millions):
December 31, 2014 December 31, 2013
Gross
Accumulated
Amortization(a) Net Gross
Accumulated
Amortization(a) Net
(recast)
Intangible assets subject to
amortization:
Film library .............. $ 3,432 $ (2,635) $ 797 $ 3,452 $ (2,494) $ 958
Brands, tradenames and
other intangible assets . . . 710 (366) 344 686 (306) 380
Total ................... $ 4,142 $ (3,001) $ 1,141 $ 4,138 $ (2,800) $ 1,338
(a) The film library has a weighted-average remaining life of approximately 6 years and 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.
The Company recorded amortization expense of $202 million in 2014 compared to $209 million in 2013 and $212 million
in 2012. Amortization expense may vary in the future as acquisitions, dispositions and impairments, if any, occur 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):
2015 2016 2017 2018 2019
Estimated amortization expense .......... $ 191 $ 186 $ 176 $ 170 $ 166
3. DISPOSITIONS AND ACQUISITIONS
Dispositions
Separation of Time Inc.
As discussed in Note 1, on June 6, 2014, the Company completed the legal and structural separation of the Company’s
Time Inc. segment from the Company. With the completion of the Time Separation, the Company disposed of the Time Inc.
segment in its entirety and ceased to consolidate its assets, liabilities and results of operations in the Company’s consolidated
financial statements. Accordingly, the Company has recast its financial information to present the financial position and
results of operations of its former Time Inc. segment as discontinued operations in the consolidated financial statements for
all periods presented.
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