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Table of Contents
AOL INC.
PART II—ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
You should read the following discussion of our results of operations and financial condition together with our consolidated financial statements and
the notes thereto included elsewhere in this Annual Report as well as the discussion in the "Item 1—Business" section. This discussion contains forward-
looking statements that involve risks and uncertainties. The forward-looking statements are not historical facts, but rather are based on current expectations,
estimates, assumptions and projections about our industry, business and future financial results. Our actual results could differ materially from the results
contemplated by these forward-looking statements due to a number of factors, including those discussed in "Item 1A—Risk Factors" and "Cautionary
Statement Concerning Forward-Looking Statements."
Introduction
Management's discussion and analysis of financial condition and results of operations ("MD&A") is a supplement to the accompanying consolidated
financial statements and provides additional information on our business, recent developments, results of operations, liquidity and capital resources and
critical accounting policies. MD&A is organized as follows:
• Overview. This section provides a general description of our business and outlook for 2012, as well as recent developments we believe are
important in understanding our results of operations and financial condition or in understanding anticipated future trends.
• Results of operations. This section provides an analysis of our results of operations for the three years in the period ended December 31, 2011.
• Liquidity and capital resources. This section provides a discussion of our current financial condition and an analysis of our cash flows for the
three years in the period ended December 31, 2011. This section also provides a discussion of our contractual obligations and commitments, off-
balance sheet arrangements, indemnification obligations and customer credit risk that existed at December 31, 2011. This section also includes a
discussion of the amount of financial capacity available to fund our future commitments and ongoing operating activities.
• Critical accounting policies. This section identifies those accounting policies that are considered important to our results of operations and
financial condition and require significant judgment and estimates on the part of management.
Overview
Our Business
We are a leading global web services company with a suite of compelling brands and offerings and a substantial worldwide audience. Our business
spans online content, products and services that we offer to consumers, publishers and advertisers. We are focused on attracting and engaging consumers and
providing valuable online advertising services. We market our offerings to advertisers on both AOL Properties and the Third Party Network under the brand
"AOL Advertising." Through the Advertising.com Group, we provide third party publishers with premium products and services intended to make their
websites attractive to brand advertisers, such as video and custom content production, in addition to offering ad serving and sales of third party advertising
inventory. Our AOL-brand access subscription service, which we offer consumers in the United States for a monthly fee, is a valuable distribution channel for
AOL Properties.
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