America Online 2009 Annual Report Download - page 92

Table of Contents
Changes in the liability for uncertain tax positions, excluding the related accrual for interest, from January 1 to December 31 are set forth below (in
millions):
Years Ended December 31,
2009 2008 2007
Beginning balance $ 345.7 $ 311.8 $ 176.4
Additions for current year tax provisions 26.0 41.0 137.4
Reductions for prior year tax provisions (32.0) (7.1) —
Settlements (including reversal of the liability retained by Time Warner following the spin-off) (325.4) — (2.0)
Total $ 14.3 $ 345.7 $ 311.8
Interest expensed through the income tax provision for uncertain tax provisions was $14.3 million, $18.2 million, and $11.5 million for the years ended
December 31, 2009, 2008 and 2007, respectively. As of December 31, 2009 and 2008, the amount of accrued interest in the consolidated balance sheet
associated with uncertain tax positions was $3.2 million and $31.3 million, respectively.
As of December 31, 2009 and 2008, the amount of unrecognized tax benefits which, if recognized, would affect our effective tax rate is $13.4 million
and $42.7 million, respectively.
NOTE 7—STOCKHOLDERS' EQUITY
AOL is authorized to issue up to 660.0 million shares of all classes of stock, consisting of 60 million shares of preferred stock, par value $0.01 per share
("Preferred Stock"), and 600 million shares of common stock, par value $0.01 per share. Rights and privileges associated with shares of Preferred Stock are
subject to authorization by the Company's Board of Directors and may differ from those of any and all other series at any time outstanding. All shares of
common stock will be identical and will entitle the holders thereof to the same rights and privileges.
As discussed in "Note 1: Description of Business, Basis of Presentation and Summary of Significant Accounting Policies" on December 9, 2009, in
accordance with the Separation Agreement, Time Warner shareholders of record as of 5 p.m. on November 27, 2009, the record date for the distribution,
received one share of AOL common stock for every eleven shares of Time Warner common stock held, which resulted in the complete legal and structural
separation of the two companies. Fractional shares of AOL common stock were not distributed to Time Warner shareholders. Instead, the fractional shares of
AOL common stock were aggregated and sold in the open market, with the net proceeds distributed pro rata in the form of cash payments to Time Warner
shareholders who would otherwise be entitled to receive a fractional share of AOL common stock.
As of December 31, 2009, 105.8 million shares of common stock were issued and outstanding. No dividends were declared or paid as of December 31,
2009.
NOTE 8—EQUITY-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS
Defined Contribution Plans
Prior to the spin-off, AOL employees participated in certain Time Warner domestic and international defined contribution plans, including savings and
profit sharing plans. AOL's contributions to Time Warner's savings plans were primarily based on a percentage of the employees' elected contributions and
were subject to plan provisions. Subsequent to the spin-off, AOL employees are no longer participating in and AOL is no longer contributing to these plans.
88