America Online 2009 Annual Report Download - page 39

Table of Contents
Years Ended December 31,
2009 2008 2007 2006 2005
($ in millions, except per share amounts) (unaudited)
Statement of Operations Data:
Revenues:
Advertising $ 1,748.3 $ 2,096.4 $ 2,230.6 $ 1,886.1 $ 1,337.8
Subscription 1,388.8 1,929.3 2,787.9 5,783.6 6,754.9
Other 120.3 140.1 162.2 117.0 109.4
Total revenues $ 3,257.4 $ 4,165.8 $ 5,180.7 $ 7,786.7 $ 8,202.1
Costs of revenues $ 1,898.5 $ 2,278.4 $ 2,652.6 $ 4,129.0 $ 4,281.5
Operating income (loss) (a) $ 458.0 $ (1,167.7) $ 1,853.8 $ 1,167.8 $ (1,817.8)
Income (loss) from continuing operations (b) $ 248.5 $ (1,526.6) $ 1,213.3 $ 716.5 $ (363.6)
Net income (loss) attributable to AOL Inc.(c) $ 248.8 $ (1,525.8) $ 1,396.1 $ 749.7 $ (334.1)
Income per Share Data Attributable to AOL Inc. Common Stockholders (d):
Basic and diluted income (loss) per common share from continuing operations $ 2.35 $ (14.42) $ 11.48 $ 6.77 $ (3.44)
Discontinued operations — — 1.72 0.18 0.28
Cumulative effect of accounting change — — — 0.14 —
Basic and diluted net income (loss) per common share $ 2.35 $ (14.42) $ 13.20 $ 7.09 $ (3.16)
Shares used in computing basic and diluted income (loss) per share (in millions) 105.8 105.8 105.8 105.8 105.8
(a) 2009 includes $27.9 million in amounts incurred related to securities litigation and government investigations. 2008 includes a $2,207.0 million non-cash impairment to reduce the
carrying value of goodwill and $20.8 million in amounts incurred related to securities litigation and government investigations. 2007 includes a net pre-tax gain of $668.2 million on the
sale of the German access service business and $171.4 million in amounts incurred related to securities litigation and government investigations. 2006 includes a $767.4 million gain on
the sales of the French and United Kingdom access service businesses and $705.2 million in amounts incurred related to securities litigation and government investigations. 2005 includes
$2,864.8 million in amounts incurred related to securities litigation and government investigations.
(b) Includes net gains of $944.4 million in 2005 related to the sale of primarily available-for-sale equity securities.
(c) Includes net income of $182.1 million in 2007, $18.9 million in 2006 and $29.5 million in 2005 related to discontinued operations. 2006 also includes a non-cash benefit of $14.3 million
as the cumulative effect of an accounting change upon the adoption of guidance related to the accounting for equity-based compensation to recognize the effect of estimating the number
of equity awards granted prior to January 1, 2006 that are ultimately not expected to vest.
(d) On November 2, 2009, the Company converted from AOL Holdings LLC, a limited liability company wholly owned by Time Warner, to AOL Inc., a corporation wholly owned by Time
Warner. On December 9, 2009, the date of our spin-off, 105.8 million shares of $0.01 par value AOL common stock were distributed to Time Warner shareholders of record as of 5 p.m.
on November 27, 2009. For periods prior to 2009, the same number of shares is being used for basic and diluted income (loss) per common share as no common stock of the Company
existed prior to November 2, 2009 and no dilutive securities of the Company were outstanding for any prior period.
For the year ended December 31, 2009, in determining the weighted average number of common shares outstanding for basic income (loss) per common share, the Company used
105.8 million shares for the period from January 1, 2009 through December 9, 2009, and the actual number of shares outstanding for the period from December 10, 2009 through
December 31, 2009. Diluted income (loss) per common share subsequent to the distribution date of December 9, 2009 reflects the potential dilution of outstanding equity-based
compensation awards by application of the treasury stock method.
As of December 31,
2009 2008 2007 2006 2005
(in millions) (unaudited) (unaudited)
Balance Sheet Data:
Cash and equivalents $ 147.0 $ 134.7 $ 151.9 $ 401.5 $ 119.9
Total assets $ 3,963.1 $ 4,861.3 $ 6,863.1 $ 6,786.4 $ 6,064.6
Long-term notes payable and obligations under capital leases $ 41.5 $ 33.7 $ 24.7 $ 105.1 $ 110.4
Total equity $ 3,062.9 $ 3,737.7 $ 5,269.5 $ 4,505.8 $ 3,530.8
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