Jay Chan's List: TWX (Time Warner)

• OL has transitioned from a business that has primarily focused  on generating subscription revenues to one that is focused on  attracting and engaging Internet consumers. Historically,  AOL’s primary focus had been its Internet access business.  In 2006, due in part to the growth of online advertising, AOL  shifted its focus to its advertising business and began offering  many of its services for free.
• Asset impairments 

              (24,309    )  
• During the year ended December 31, 2008, the Company  recorded noncash impairments related to goodwill and  identifiable intangible assets of $14.822 billion,  $7.139 billion and $2.207 billion at the Cable,  Publishing and AOL segments, respectively
• 2008 was negatively impacted by  $2.229 billion of asset impairments and prior year gains on  the disposal of consolidated businesses and assets
• Excluding  these items, Operating Income before Depreciation and  Amortization decreased due primarily to a decline in revenues,  partially offset by lower costs of revenues and selling, general  and administrative expenses. Also excluding these items, the  decrease in Operating Income was due primarily to the decrease  in Operating Income before Depreciation and Amortization, as  discussed above, as well as an increase in amortization expense  associated with finite-lived intangible assets related to  AOL’s recent business acquisitions, partially offset by a  decrease in depreciation expense as a result of a reduction in  network assets due to subscriber declines.
• excluding the effect of asset  impairments, Operating Income before Depreciation and  Amortization and Operating Income at the AOL segment during 2009  will be less than that generated during 2008, primarily  resulting from continuing declines in Subscription revenues as  well as the impact of the planned restructuring activities.
• Asset impairments 

              (14,867    )    
• Intangible assets not subject to amortization 

              31,822                47,220        

    Goodwill 

              34,530                41,749    

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