America Online 2010 Annual Report Download - page 85

Table of Contents
AOL INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
determined a range of loss, but no amount within the range is a better estimate than any other amount within the range, the Company records the minimum
amount of the range of loss as a liability. See "Note 4" for information on a contingency related to ICQ.
Discontinued Operations
In determining whether a group of assets disposed (or to be disposed) of should be presented as a discontinued operation, the Company makes a
determination of whether the group of assets being disposed of comprises a component of the entity; that is, whether it has historical operations and cash
flows that can be clearly distinguished (both operationally and for financial reporting purposes). The Company also determines whether the cash flows
associated with the group of assets have been significantly (or will be significantly) eliminated from the ongoing operations of the Company as a result of the
disposal transaction and whether the Company has no significant continuing involvement in the operations of the group of assets after the disposal transaction.
If these determinations can be made affirmatively, the results of operations of the group of assets being disposed of (as well as any gain or loss on the disposal
transaction) are aggregated for separate presentation apart from continuing operating results of the Company in the consolidated financial statements. See
"Note 4" for additional information.
Other Comprehensive Income (Loss)
Other comprehensive income (loss) is included within stockholders' equity in the consolidated balance sheets and consists of net income (loss) and
other gains and losses affecting equity that, under GAAP, are excluded from net income (loss). For AOL, such items consist primarily of foreign currency
translation gains (losses). The following table sets forth other comprehensive income (loss), net of tax, accumulated in stockholders' equity (in millions):
Foreign currency
translation
gains (losses)
Net unrealized
gains (losses) on
securities
Net derivative
financial
instrument
gains (losses)
Net accumulated
other
comprehensive
income (loss)
Balance at December 31, 2007 $ (207.6) $ 0.1 $ 0.6 $ (206.9)
2008 activity (95.5) (0.1) 0.1 (95.5)
Balance at December 31, 2008 (303.1) — 0.7 (302.4)
2009 activity 28.0 — (0.7) 27.3
Balance at December 31, 2009 (275.1) — — (275.1)
2010 activity (12.8) — — (12.8)
Balance at December 31, 2010 $ (287.9) $ — $ — $ (287.9)
Recent Accounting Standards
Variable Interest Entities
In June 2009, new guidance was issued which modified the provisions of the variable interest consolidation model that specify whether an enterprise's
variable interest or interests give it a controlling financial interest in a variable interest entity. The modifications define the primary beneficiary of a variable
interest entity as the enterprise that has (i) the power to direct the activities of a variable interest entity that most significantly impact the entity's economic
performance and (ii) the obligation to absorb losses of the entity that could potentially be significant to the variable interest entity or the right to receive
benefits from the entity that could potentially be significant to the variable interest entity. In addition, this guidance amends the accounting for variable
interest
81