America Online 2014 Annual Report Download - page 121

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AOL INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 11—ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued expenses and other current liabilities consist of (in millions):
December 31,
2014 2013
TAC...................................................................... $ 98.3 $ 80.7
Costs of revenues (excluding TAC) ............................................. 34.4 35.3
General and administrative expense ............................................. 15.4 19.7
Taxes ..................................................................... 12.6 12.1
Member support services ..................................................... 11.0 8.5
Rent and facilities expense .................................................... 10.2 12.9
Restructuring liabilities ....................................................... 5.6 16.0
Other accrued expenses ....................................................... 9.8 12.1
Total accrued expenses and other liabilities ....................................... $ 197.3 $ 197.3
NOTE 12—SEGMENT INFORMATION
The Company’s segments are determined based on the properties, products and services it provides and how
the chief operating decision maker (“CODM”) evaluates the business and assesses performance. The Company’s
chief executive officer is the Company’s CODM for the year ended December 31, 2014. The Company has the
following operating segments:
• The Brand Group, which consists of AOL’s portfolio of distinct and unique content brands as well as
certain service brands. The results for this segment include the performance of AOL’s advertising
offerings on a number of owned and operated sites, such as AOL.com, The Huffington Post,
TechCrunch and MapQuest. The Brand Group also includes co-branded websites owned or operated by
third parties for which certain criteria have been met, including the requirement that the internet traffic
has been assigned to AOL.
• The Membership Group, which consists of offerings that serve AOL’s registered account holders, both
free and paid. The results for this segment include the performance of AOL’s subscription offerings
and advertising offerings on Membership Group properties, including communications products, such
as AOL Mail.
• AOL Platforms (formerly referred to as AOL Networks), which consists of interconnected
programmatic (automated) and premium advertising offerings and technologies that advertisers and
publishers use to reach consumers across all devices (i.e., desktop, mobile and television), and includes
formats such as display, including video and social formats. AOL Platforms also provides additional
technology solutions that enhance AOL’s programmatic platforms and enable advertisers and
publishers to have an end-to-end open programmatic media buying experience by providing access to
Third Party Properties, AOL Properties ad serving, content personalization, targeting, attribution and
cross-channel analytics. The results for this segment include the performance of Advertising.com,
AdLearn Open Platform, Adap.tv, Marketplace by ADTECH, AOL On, Be On, ADTECH, Gravity,
Vidible and Convertro.
In addition to the above operating segments, the Company has a corporate and other category that includes
activities that are not directly attributable or allocable to a specific segment. This category primarily consists of
broad corporate functions and includes legal, human resources, accounting, analytics, finance and marketing as
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