America Online 2010 Annual Report Download - page 38

Table of Contents
Years Ended December 31,
2010 2009 2008 2007 2006
($ in millions, except per share amounts) (recast) (recast) (recast) (recast)
Statement of Operations Data:
Revenues:
Advertising $ 1,284.1 $ 1,736.7 $ 2,083.3 $ 2,230.6 $ 1,886.1
Subscription 1,023.6 1,388.8 1,929.3 2,787.9 5,783.6
Other 109.0 120.3 140.1 162.2 117.0
Total revenues $ 2,416.7 $ 3,245.8 $ 4,152.7 $ 5,180.7 $ 7,786.7
Costs of revenues $ 1,420.6 $ 1,893.2 $ 2,273.1 $ 2,652.6 $ 4,129.0
Operating income (loss) (a) $ (982.6) $ 462.6 $ (1,163.5) $ 1,853.8 $ 1,167.8
Income (loss) from continuing operations $ (790.7) $ 251.4 $ (1,520.6) $ 1,213.3 $ 716.5
Net income (loss) attributable to AOL Inc. (b) $ (782.5) $ 248.8 $ (1,525.8) $ 1,396.1 $ 749.7
Per share information attributable to AOL Inc. common stockholders: (c)
Basic and diluted income (loss) per common share from
continuing operations $ (7.42) $ 2.38 $ (14.36) $ 11.48 $ 6.77
Discontinued operations 0.08 (0.03) (0.06) 1.72 0.18
Cumulative effect of accounting change, net of tax — — — — 0.14
Basic and diluted net income (loss) per common share $ (7.34) $ 2.35 $ (14.42) $ 13.20 $ 7.09
Shares used in computing basic and diluted income (loss) per
share (in millions) 106.6 105.8 105.8 105.8 105.8
(a) 2010 includes a $1,414.4 million non-cash impairment charge to reduce the carrying value of goodwill and a $106.0 million gain on the sale of ICQ. 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 charge 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.
(b) Includes net income (loss) of $8.2 million in 2010, ($2.9) million in 2009, ($6.0) million in 2008, $182.1 million in 2007 and $18.9 million in 2006 related to discontinued operations.
(c) 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,
2010 2009 2008 2007 2006
(in millions) (recast) (recast) (recast)
(unaudited
and recast)
Balance Sheet Data:
Cash and equivalents $ 801.8 $ 146.1 $ 134.8 $ 151.9 $ 401.5
Total assets $ 2,962.3 $ 3,963.1 $ 4,861.3 $ 6,863.1 $ 6,786.4
Long-term notes payable and obligations under capital leases $ 50.9 $ 41.5 $ 33.7 $ 24.7 $ 105.1
Total equity $ 2,286.9 $ 3,062.9 $ 3,737.7 $ 5,269.5 $ 4,505.8
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