Time Magazine 2015 Annual Report Download - page 90

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TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Discontinued Operations
In determining whether a group of assets disposed (or to be disposed) of should be presented as a discontinued
operation for periods beginning January 1, 2015, the Company assesses whether the disposal (or planned disposal) represents
a strategic shift that has had or will have a major effect on the Company’s operations and financial results.
On June 6, 2014 (the “Distribution Date”), the Company completed the legal and structural separation of the
Company’s Time Inc. segment from the Company (the “Time Separation”). The Company has presented the financial
position and results of operations of its former Time Inc. segment as discontinued operations in the accompanying
consolidated financial statements for all periods presented. For more information on the Time Separation, see Note 3.
2. GOODWILL AND INTANGIBLE ASSETS
Time Warner has a significant number of intangible assets, including acquired film and television libraries and other
copyrighted products and tradenames. Certain intangible assets are deemed to have finite lives and, accordingly, are
amortized over their estimated useful lives, while others are deemed to be indefinite-lived and therefore are not amortized.
Goodwill and indefinite-lived intangible assets, primarily certain tradenames, are tested annually for impairment during the
fourth quarter, or earlier upon the occurrence of certain events or substantive changes in circumstances.
Goodwill
The following summary of changes in the Company’s Goodwill during the years ended December 31, 2015 and 2014,
by reportable segment, is as follows (millions):
Turner Home Box Office Warner Bros. Total
Balance at December 31, 2013 ................... $ 13,980 $ 7,431 $ 5,990 $ 27,401
Acquisitions, dispositions and adjustments, net ...... (6) 2 206 202
Translation adjustments ........................ (18) — (20) (38)
Balance at December 31, 2014 ................... $ 13,956 $ 7,433 $ 6,176 $ 27,565
Acquisitions, dispositions and adjustments, net ...... 176 — 8 184
Translation adjustments ........................ (24) — (36) (60)
Balance at December 31, 2015 ................... $ 14,108 $ 7,433 $ 6,148 $ 27,689
The carrying amount of goodwill for all periods presented was net of accumulated impairments of $13.338 billion and
$4.091 billion at the Turner segment and the Warner Bros. segment, respectively.
The performance of the Company’s annual impairment analysis did not result in any impairments of Goodwill for any
of the years in the three-year period ended December 31, 2015. Refer to Note 1 for a discussion of the 2015 annual
impairment test.
The increase in Goodwill at the Turner segment for the year ended December 31, 2015 is primarily related to the
acquisition of iStreamPlanet Co., LLC (“iStreamPlanet”) and the increase at the Warner Bros. segment for the year ended
December 31, 2014 is primarily related to the acquisition of the operations outside the U.S. of Eyeworks Group (see Note 3
for additional information).
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