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Table of Contents
AOL INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The Company maintains its cash balances in the form of money market accounts and overnight deposits. The Company maintains cash deposits with
banks that at times exceed applicable insurance limits. The Company reduces its exposure to credit risk by maintaining such deposits with high quality
financial institutions that management believes are creditworthy.
The Company's exposure to customer credit risk relates primarily to advertising customers and individual subscribers to AOL's subscription access
service, and is dispersed among many different counterparties, with no single customer having a receivable balance in excess of 10% of total net receivables
at December 31, 2011 or 2010.
For each of the periods presented herein, the Company has had a contractual relationship with Google whereby Google provides paid text-based search
advertising and contextual advertising on AOL Properties. For the years ended December 31, 2011, 2010 and 2009, the revenues associated with the Google
relationship (substantially all of which were search and contextual revenues generated on AOL Properties), were $335.3 million, $398.4 million and $556.7
million, respectively.
Net property and equipment located outside the United States, which represent less than 4% of total assets, are not material. Revenues in different
geographical areas are as follows (in millions):
Years Ended December 31, (a)
2011 2010 2009
United States $ 2,001.4 $ 2,193.3 $ 2,863.6
United Kingdom 98.8 102.4 157.9
Germany 40.0 43.3 59.2
France 9.1 17.3 70.3
Canada 37.7 36.5 35.7
Other international 15.1 23.9 59.1
Total international 200.7 223.4 382.2
Total $ 2,202.1 $ 2,416.7 $ 3,245.8
(a) Revenues are attributed to countries based on the location of customers.
Cash and Equivalents
Cash equivalents primarily consist of highly liquid short-term investments with an original maturity of three months or less, which include money
market accounts, Treasury bills, time deposits and overnight deposits that are readily convertible into cash. Cash equivalents are carried at cost plus accrued
interest, which approximates fair value.
Restricted Cash
In the first quarter of 2011, the Company was required to post cash collateral for letters of credit related to certain of the Company's lease agreements.
Previously, the Company's letters of credit were guaranteed by Time Warner, Inc. The collateral amounts are legally restricted as to withdrawal and use for a
period in excess of twelve months. Accordingly, the collateral balances have been classified as restricted cash within other long-term assets and are omitted
from cash and equivalents on the consolidated balance sheets. Also included in restricted cash are security deposits held by the Company from lessees that are
restricted as to use. The Company had $12.6 million of restricted cash included in other long-term assets on the consolidated balance sheet as of December 31,
2011.
72