America Online 2010 Annual Report Download - page 55

Table of Contents
AOL INC.
PART II—ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
See "Note 3" in our accompanying consolidated financial statements for additional information.
Gain (loss) on disposal of assets and consolidated businesses, net
The gain on disposal of assets and consolidated businesses, net for the year ended December 31, 2010 of $106.0 million was related to the gain on the
sale of ICQ recorded in the third quarter of 2010 with an adjustment recorded in the fourth quarter as discussed above.
Operating Income (Loss)
Operating loss was $982.6 million for the year ended December 31, 2010, as compared to operating income of $462.6 million for the year ended
December 31, 2009. This decline was due to the goodwill impairment charge recorded in the second quarter of 2010 and the decline in revenues, partially
offset by decreases in costs of revenues and in restructuring costs and the gain on the sale of ICQ.
Operating income was $462.6 million for the year ended December 31, 2009, as compared to an operating loss of $1,163.5 million for the year ended
December 31, 2008. This increase was due to the goodwill impairment charge recorded in the fourth quarter of 2008 and decreases in costs of revenues and
selling, general and administrative costs in 2009, partially offset by the decline in revenues and increase in restructuring costs in 2009.
Other Income Statement Amounts
The following table presents our other income statement amounts for the periods presented (in millions):
Years Ended December 31,
2010 2009
% Change
from 2009
to 2010 2008
% Change
from 2008
to 2009
Other income (loss), net $ 13.4 $ (2.5) NM $ (4.1) (39)%
Income tax provision (benefit) (178.5) 208.7 NM 353.0 (41)%
Discontinued operations, net of tax 8.2 (2.9) NM (6.0) (52)%
Other Income (Loss), Net
Other income, net was $13.4 million for the year ended December 31, 2010, as compared to other loss, net of $2.5 million for the year ended
December 31, 2009. This increase was primarily due to the $17.5 million gain from the sale of our investment in Kayak in the third quarter of 2010, the $8.0
million gain from the sale of our investment in Brightcove in the fourth quarter of 2010 and $5.2 million of transaction costs incurred in 2009 related to the
spin-off, partially offset by unfavorable foreign currency impacts of $6.6 million and credit facility fees of $6.0 million incurred in 2010.
Other loss, net was $2.5 million for the year ended December 31, 2009, as compared to other loss, net of $4.1 million for the year ended December 31,
2008. This decrease was primarily due to favorable foreign currency impacts and decreases in interest expense, partially offset by decreases in interest income
and transaction costs incurred in 2009 related to the spin-off.
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