America Online 2010 Annual Report Download - page 75

Table of Contents
AOL INC.
CONSOLIDATED STATEMENTS OF EQUITY
(In millions)
Common Stock
Divisional
Equity
Additional
Paid-In
Capital
Accumulated
Other
Comprehensive
Income (Loss)
Retained
Earnings
(Accumulated
Deficit)
Non-
Controlling
Interest
Total
Equity Shares Amount
Balance at December 31, 2007 — $ — $ 5,474.1 $ — $ (206.9) $ — $ 2.3 $ 5,269.5
Net loss — — (1,525.8) — — — (0.8) (1,526.6)
Foreign currency translation adjustments — — — — (95.5) — — (95.5)
Comprehensive loss — — (1,525.8) — (95.5) — (0.8) (1,622.1)
Net transactions with Time Warner — — 90.3 — — — — 90.3
Balance at December 31, 2008 — $ — $ 4,038.6 $ — $ (302.4) $ — $ 1.5 $ 3,737.7
Net income (loss) — — 269.2 — — (20.4) (0.3) 248.5
Unrealized gains on derivatives and investments, net of tax — — — — (0.7) — — (0.7)
Foreign currency translation adjustments — — — — 28.0 — 0.6 28.6
Comprehensive income (loss) — — 269.2 — 27.3 (20.4) 0.3 276.4
Net transactions with Time Warner — — (915.6) — — — — (915.6)
Distribution to Time Warner (a) — — (36.2) — — — — (36.2)
Issuance of common stock (b) 105.8 1.1 — (1.1) — — — —
Reclassification of divisional equity to additional paid-in capital (b) — — (3,356.0) 3,356.0 — — — —
Amounts related to equity-based compensation — — — 0.6 — — — 0.6
Balance at December 31, 2009 105.8 $ 1.1 $ — $ 3,355.5 $ (275.1) $ (20.4) $ 1.8 $ 3,062.9
Net loss — — — — — (782.5) — (782.5)
Foreign currency translation adjustments — — — — (12.8) — — (12.8)
Comprehensive loss — — — — (12.8) (782.5) — (795.3)
Deconsolidation of variable interest entity — — — — — — (1.8) (1.8)
Spin-off deferred tax adjustments (c) — — — (27.0) — — — (27.0)
Issuance of common stock in connection with acquisitions 0.7 — — 18.7 — — — 18.7
Amounts related to equity-based compensation, including tax benefits 0.2 — — 31.8 — — — 31.8
Other — — — (2.4) — — — (2.4)
Balance at December 31, 2010 106.7 $ 1.1 $ — $ 3,376.6 $ (287.9) $ (802.9) $ — $ 2,286.9
(a) AOL completed a number of transactions with Time Warner in connection with the spin-off. The reduction to AOL's equity included the reversal of
AOL's liability to Time Warner for certain tax positions, which resulted in an increase to equity of $368.1 million and the reversal of AOL's equity-based
compensation deferred tax assets, which resulted in a decrease to equity of $436.1 million. These amounts were retained by Time Warner following the
spin-off.
(b) Upon the effective date of the spin-off, AOL's divisional equity was reclassified and allocated between common stock and additional paid-in capital
based on the number of shares of AOL common stock issued and outstanding.
(c) Under the terms of the Company's tax matters agreement with Time Warner, amounts payable or receivable to Time Warner prior to the spin-off were
reflected as adjustments to divisional equity. During the year ended December 31, 2010, the Company adjusted its deferred tax assets and estimated
amount payable to Time Warner for income taxes prior to the spin-off and these adjustments resulted in a $27.0 million reduction to additional paid-in
capital.
See accompanying notes.
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