America Online 2011 Annual Report Download - page 69

Table of Contents
AOL INC.
CONSOLIDATED STATEMENTS OF EQUITY
(In millions)
Common Stock
Divisional
Equity
Additional
Paid-In
Capital
Accumulated
Other
Comprehensive
Income (Loss)
Accumulated
Deficit
Treasury
Stock,
at Cost
Non-
Controlling
Interest
Total
Equity Shares Amount
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 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
Net income — — — — — 13.1 — — 13.1
Foreign currency translation
adjustments — — — — 0.4 — — — 0.4
Comprehensive income — — — — 0.4 13.1 — — 13.5
Amounts related to equity-based compensation, including tax
benefits — — — 44.5 — — — — 44.5
Issuance of common stock 0.3 — — 0.4 — — — — 0.4
Repurchase of common stock (12.7) — — — — — (173.6) — (173.6)
Other — — — 0.9 — — — — 0.9
Balance at December 31, 2011 94.3 $ 1.1 $ — $ 3,422.4 $ (287.5) $ (789.8) $ (173.6) $ — $2,172.6
(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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