Time Magazine 2015 Annual Report Download - page 91

Download and view the complete annual report

Please find page 91 of the 2015 Time Magazine annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 140

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

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, 2015, 2014 and
2013 by reportable segment, as follows (millions):
Year Ended December 31,
2015 2014 2013
Turner ....................................................... $ 1 $ 1 $ 18
Home Box Office .............................................. — 4 —
Warner Bros. .................................................. — 13 1
Time Warner .................................................. $ 1 $ 18 $ 19
The Company’s intangible assets subject to amortization and related accumulated amortization consisted of the
following (millions):
December 31, 2015 December 31, 2014
Gross
Accumulated
Amortization (a) Net Gross
Accumulated
Amortization (a) Net
Intangible assets subject to
amortization:
Filmlibrary ............ $ 3,432 $ (2,776) $ 656 $ 3,432 $ (2,635) $ 797
Brands, tradenames and
other intangible assets . . 716 (423) 293 710 (366) 344
Total ................. $ 4,148 $ (3,199) $ 949 $ 4,142 $ (3,001) $ 1,141
(a) The film library has a weighted-average remaining life of approximately 5 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 $189 million in 2015 compared to $202 million in 2014 and $209
million in 2013. 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):
2016 2017 2018 2019 2020
Estimated amortization expense ......... $ 188 $ 174 $ 166 $ 157 $ 143
3. DISPOSITIONS AND ACQUISITIONS
Dispositions
Separation of Time Inc.
As discussed in Note 1, the Time Separation was completed on June 6, 2014. The Time Separation was effected as a
pro rata dividend of all shares of Time Inc. common stock held by Time Warner in a spin-off to Time Warner stockholders.
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 presented 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.
77