time warner 4Q08 Earnings Package

For Immediate Release:
Time Warner Inc. Provides 2009 Full-Year Business Outlook
NEW YORK, February 4, 2009 – Time Warner Inc. (NYSE:TWX) today provided its 2009 full-year business
outlook. With the Company’s separation of Time Warner Cable Inc. expected to be completed in the first quarter
of 2009, Time Warner’s 2009 Full-Year Business Outlook excludes the results of the Cable segment in the prior
and current years.
Time Warner announced that it expects its 2009 full-year Adjusted Diluted Income per Share from Continuing
Operations (“Adjusted EPS”) to be around flat compared to Adjusted EPS of $0.66 in 2008. This outlook reflects
the impact of approximately $250 million in restructuring charges that the Company anticipates incurring in 2009,
related to restructurings at AOL and Warner Bros.
At a special meeting of stockholders held January 16, 2009, Time Warner stockholders authorized the Board of
Directors, at its discretion, to implement a reverse stock split at a ratio of either 1-for-2 or 1-for-3. The outlook
above does not include the impact of any future reverse stock split.
The outlook above also does not include the impact of any future merger or unplanned restructuring charges, the
impact from sales and acquisitions of operating assets and investments, or the impact of taxes on the above items,
that may occur from time to time due to management decisions and changing business circumstances. The
Company is currently unable to forecast precisely the timing and/or magnitude of any such amounts or events.
Use of Adjusted Diluted Income per Share from Continuing Operations
Adjusted EPS is Diluted Income per Share from Continuing Operations excluding the results of the Cable
segment; noncash impairments of goodwill, intangible and fixed assets and investments; gains and losses on sales
of operating assets and investments; external costs related to mergers, acquisitions, investments or dispositions, as
well as contingent consideration related to such transactions, to the extent such costs are expensed; and amounts
related to securities litigation and government investigations, as well as the impact of taxes on the above items.
Adjusted EPS is considered an important indicator of the operational strength of the Company’s businesses as this
measure eliminates amounts that do not reflect the fundamental performance of the Company’s businesses. The
Company utilizes Adjusted EPS, among other measures, to evaluate the performance of its businesses both on an
absolute basis and relative to its peers and the broader market. Many investors also use an adjusted EPS measure
as a common basis for comparing the performance of different companies. Some limitations of this measure,
however, are that it does not reflect certain cash charges that affect the operating results of the Company’s
businesses and that it involves judgment as to whether items affect fundamental operating performance. Also, a
general limitation of Adjusted EPS is that this measure is not prepared in accordance with U.S. generally accepted
accounting principles and may not be comparable to similarly titled measures of other companies due to
differences in methods of calculation and excluded items.
Adjusted EPS should be considered in addition to, not as a substitute for, the Company’s Diluted Income per
Share from Continuing Operations as well as other measures of financial performance reported in accordance with
U.S. generally accepted accounting principles.
About Time Warner Inc.
Time Warner Inc. is a leading media and entertainment company, whose businesses include interactive services,
cable systems, filmed entertainment, television networks and publishing.

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Information on Earnings Release and Conference Call
In a separate release issued today, Time Warner Inc. reported the financial results for its full year and fourth
quarter ended December 31, 2008.
The Company’s conference call can be heard live at 10:30 am ET on Wednesday, February 4, 2009. To listen to
the call, visit www.timewarner.com/investors or AOL Keyword: IR.
Information on Time Warner Cable’s Press Release and Conference Call
Time Warner Cable Inc. issued a separate release today regarding its financial results for the full year and fourth
quarter ended December 31, 2008.
Time Warner Cable’s conference call can be heard live at 8:30 am ET on Wednesday, February 4, 2009. To
listen to the call, visit www.timewarnercable.com/investors or AOL Keyword: TWC IR.
Caution Concerning Forward-Looking Statements
This document includes certain forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements are based on management’s current expectations or beliefs, and are
subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or
implied by the statements herein due to changes in economic, business, competitive, technological, strategic
and/or regulatory factors, sales of business assets, the planned separation of Time Warner Cable Inc. from the
Company, and the potential impact of future decisions by management that may result in merger and restructuring
charges, as well as the potential impact of any future impairment charges to goodwill or other intangible assets.
More detailed information about these factors may be found in filings by Time Warner Inc. with the Securities
and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q. Time Warner is under no obligation to, and expressly disclaims any such obligation to, update or alter
its forward-looking statements, whether as a result of new information, future events, or otherwise.
Contacts:
Corporate Communications Investor Relations
Edward Adler (212) 484-6630 Doug Shapiro (212) 484-8926
Keith Cocozza (212) 484-7482
# # #

TIME WARNER INC.
RECONCILIATION OF GUIDANCE
(Unaudited)
Year Ended
December 31, 2008 Reconciliation of 2009 Guidance
Reconciliation of Adjusted Diluted Income per Share from Continuing
Operations to Diluted Income (Loss) per Share from Continuing
Operations:
Adjusted Diluted Income per Share from Continuing Operations
(1)
0.66$ Around flat
Impairments of goodwill, intangible and fixed assets and investments (2.60) No impairment expected
Gains and losses on sales of operating assets and investments
(2)
(0.01) Unable to estimate
External costs related to mergers, acquisitions, investments or dispositions,
including contingent consideration - Unable to estimate
Amounts related to securities litigation and government investigations (0.01) Unable to estimate
Tax impact on above items 0.16 Unable to estimate
Diluted Income (Loss) per Share from Continuing Operations (excluding
Time Warner Cable) (1.80)
Diluted Income (Loss) per Share attributable to Time Warner Cable
(3)
(2.05)
Diluted Income (Loss) per Share attributable to intersegment
eliminations
(4)
0.11
Diluted Income (Loss) per Share from Continuing Operations - Time
Warner (3.74)$
Notes:
(2) Includes share of equity investment gain on disposal of assets.
(3) Calculated as Time Warner Cable Loss from Continuing Operations of $7.344 billion divided by Time Warner Inc. average diluted common shares outstanding of 3.583 billion.
(4) Eliminates the impact of intercompany transactions between the Cable and Non-Cable businesses.
(1) Adjusted Diluted Income per Share from Continuing Operations is Diluted Income per Share from Continuing Operations excluding the results of the Cable segment; noncash impairments of
goodwill, intangible and fixed assets and investments; gains and losses on sales of operating assets and investments; external costs related to mergers, acquisitions, investments or dispositions, as
well as contingent consideration related to such transactions, to the extent such costs are expensed; and amounts related to securities litigation and government investigations, as well as the impact of
taxes on the above items.

For Immediate Release:
TIME WARNER INC. REPORTS RESULTS FOR
2008 FULL YEAR AND FOURTH QUARTER
NEW YORK, February 4, 2009 – Time Warner Inc. (NYSE:TWX) today reported financial results
for its full year and fourth quarter ended December 31, 2008.
Chairman and Chief Executive Officer Jeff Bewkes said: “We’re making progress at Time Warner
toward our goals of becoming a more content-focused company and delivering increasing returns to our
stockholders. Last year, our priorities were to rationalize our structure and improve our operating
performance. Despite the challenging economic environment, we achieved most of what we set out to
do. Moving into 2009, we intend to build on these accomplishments.”
Mr. Bewkes continued: “Operationally, we’ll continue to improve the efficiency of our businesses
while creating even more of the compelling content that’s becoming increasingly valuable.
Structurally, we’ll complete the Time Warner Cable separation soon. At the same time, we’ll strengthen
our balance sheet, improve our strategic flexibility and return capital to our stockholders on a consistent
basis. Through these steps, we expect to emerge from this downturn in an even stronger competitive
position.”
Full-Year Results
Revenues grew 1% over 2008 to $47.0 billion, reflecting increases at the Company’s Cable and
Networks segments.
Adjusted Operating Income before Depreciation and Amortization rose 1% to $13.0 billion. The growth
at the Cable, Networks and Filmed Entertainment segments more than offset declines at the Publishing
and AOL segments. The Company’s Operating Loss of $16.0 billion reflected a decline of $24.9 billion
compared to 2007’s Operating Income of $8.9 billion, due mainly to a $24.2 billion noncash
impairment to reduce the carrying value of goodwill and intangible assets.
Cash Provided by Operations totaled $10.3 billion and Free Cash Flow amounted to $6.0 billion
(reflecting a 46% conversion rate of Adjusted Operating Income before Depreciation and
Amortization). As of December 31, 2008, Net Debt was $33.0 billion, down $2.6 billion from $35.6
billion at the end of 2007, due primarily to the generation of Free Cash Flow, offset in part by
acquisitions.
Diluted Loss per Common Share from Continuing Operations was $3.74 for the year ended December
31, 2008, compared to Diluted Income per Common Share from Continuing Operations of $1.08 in
2007. The current and prior year amounts included certain items affecting comparability that are
described in Note 3 to the accompanying consolidated financial statements. The net impact of such
items was to decrease the current year results by $4.73 per diluted common share and to increase the
prior year results by $0.12 per diluted common share.

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Fourth-Quarter Results
Fourth-quarter revenues declined 3% over the same period in 2007 to $12.3 billion, driven mainly by
decreases at the Filmed Entertainment, AOL and Publishing segments, offset partially by increases at
the Cable and Networks segments.
Adjusted Operating Income before Depreciation and Amortization decreased 8% to $3.2 billion.
Increases at the Cable, AOL and Filmed Entertainment segments were more than offset by declines at
the Publishing and Networks segments, which were adversely affected by significant charges related to
restructurings and a trial court judgment, respectively, as described in the Performance of Segments
section below. The Company’s Operating Loss of $22.2 billion represented a decline of $24.5 billion
compared to the year-ago quarter’s Operating Income of $2.3 billion, due largely to a $24.2 billion
noncash impairment to reduce the carrying value of goodwill and intangible assets.
Diluted Loss per Common Share from Continuing Operations was $4.47 for the three months ended
December 31, 2008, compared to Diluted Income per Common Share from Continuing Operations of
$0.28 in last year’s fourth quarter. The current and prior year quarters’ amounts included certain items
affecting comparability that are described in Note 3 to the accompanying consolidated financial
statements. The net impact of such items was to decrease the current and prior year quarters’ results by
$4.70 and $0.01 per diluted common share, respectively.

3
Performance of Segments
Presentation of Financial Information
The schedule below reflects Time Warner’s financial performance for the three months and full year ended
December 31, by line of business (millions).
In the presentation of financial information in this release, Adjusted Operating Income (Loss) before
Depreciation and Amortization excludes the impact of noncash impairments of goodwill, intangible and
fixed assets, as well as gains and losses on asset sales and amounts related to securities litigation and
government investigations. Operating Income includes these amounts in their respective periods. Refer to
the reconciliations of Adjusted Operating Income (Loss) before Depreciation and Amortization to
Operating Income (Loss) before Depreciation and Amortization and the reconciliations of Operating
Income (Loss) before Depreciation and Amortization to Operating Income (Loss) in this release for details.
Three Months Ended December 31, Year Ended December 31,
2008 2007 2008 2007
Revenues:
AOL $ 968 $ 1,251 $ 4,165 $ 5,181
Cable 4,402 4,089 17,200 15,955
Filmed Entertainment 3,113 3,508 11,398 11,682
Networks 2,938 2,704 11,154 10,270
Publishing 1,269 1,455 4,608 4,955
Intersegment eliminations (384) (365) (1,541) (1,561)
Total Revenues $ 12,306 $ 12,642 $ 46,984 $ 46,482
Adjusted Operating Income (Loss) before Depreciation and Amortization(a)
:
AOL $ 405 $ 381 $ 1,558 $ 1,836
Cable 1,660 1,563 6,186 5,742
Filmed Entertainment 371 350 1,228 1,215
Networks(b)
682 857 3,508 3,370
Publishing 124 414 779 1,098
Corporate (71) (98) (315) (379)
Intersegment eliminations 17 – 35 (3)
Total Adjusted Operating Income (Loss) before
Depreciation and Amortization $ 3,188 $ 3,467 $ 12,979 $ 12,879
Operating Income (Loss)(a)
:
AOL(c)
$ (1,929) $ 274 $ (1,147) $ 2,013
Cable(c)
(13,944) 795 (11,782) 2,766
Filmed Entertainment 271 253 823 845
Networks(b)
586 770 3,118 3,015
Publishing(c)
(7,097) 362 (6,624) 907
Corporate (82) (109) (359) (423)
Securities litigation expenses, net (8) (2) (21) (171)
Intersegment eliminations 17 – 35 (3)
Total Operating Income (Loss) $ (22,186) $ 2,343 $ (15,957) $ 8,949
(a)
Adjusted Operating Income (Loss) before Depreciation and Amortization and Operating Income (Loss) for the three months and full year ended December 31,
2008 and 2007, respectively, included merger-related and restructuring charges of (millions):
AOL $ (2) $ (98) $ (17) $ (125)
Cable (1) (3) (15) (23)
Filmed Entertainment (12) – (142) –
Networks 3 (17) 3 (37)
Publishing (160) (21) (176) (67)
Corporate (5) (10) (12) (10)
Total Merger-related and Restructuring charges $ (177) $ (149) $ (359) $ (262)
(b)
Adjusted Operating Income (Loss) before Depreciation and Amortization and Operating Income (Loss) for the three months and full year ended December 31,
2008, included charges of approximately $270 million and $280 million, respectively, taken in connection with a trial court judgment against Turner related to
the 2004 sale of its winter sports teams.
(c)
Operating Income (Loss) for the three months and full year ended December 31, 2008, included noncash impairments to reduce the carrying value of goodwill
and intangible assets of $2.2 billion at the AOL segment, $14.8 billion at the Cable segment and $7.1 billion at the Publishing segment.

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Presented below is a discussion of Time Warner’s segments for the 2008 full year and fourth quarter.
Unless otherwise noted, the dollar amounts in parentheses represent year-over-year changes.
AOL
Full-Year Results
Revenues declined 20% ($1.0 billion) to $4.2 billion, due mainly to decreases of 31% ($859 million) in
Subscription revenues and 6% ($135 million) in Advertising revenues. The decline in Subscription
revenues resulted from a decrease in subscribers, which reflects primarily AOL’s strategy to offer its e-mail
and certain other products free of charge to Internet consumers. Reducing Advertising revenues were
declines in display advertising on AOL Network sites and sales of advertising on third-party Internet sites,
offset partially by an increase in paid-search advertising.
Adjusted Operating Income before Depreciation and Amortization decreased 15% ($278 million) to
$1.6 billion, reflecting primarily lower revenues and higher traffic acquisition costs ($83 million), offset
partly by lower personnel and overhead costs, as well as reduced marketing, network and other expenses.
The current and prior year results also included net restructuring charges of $17 million and $125 million,
respectively.
Operating Loss of $1.1 billion reflected a decline of $3.1 billion compared to the prior year Operating
Income of $2.0 billion, due mainly to a $2.2 billion noncash impairment to reduce the carrying value of
goodwill, a $22 million noncash impairment related to asset writedowns in connection with facility
consolidations and the absence of the net pretax gain of $668 million on the prior year sale of AOL’s
German access business. Also contributing to the decline were lower Adjusted Operating Income before
Depreciation and Amortization and higher amortization expense ($70 million), offset in part by lower
depreciation expense ($98 million).
Revenues decreased 23% ($283 million) to $968 million, including declines of 27% ($160 million) in
Subscription revenues and 18% ($113 million) in Advertising revenues. Adjusted Operating Income
before Depreciation and Amortization increased 6% ($24 million) to $405 million. The current and prior
year quarters reflected restructuring charges of $2 million and $98 million, respectively. Operating Loss of
$1.9 billion represented a decline of $2.2 billion compared to the year-ago quarter’s Operating Income of
$274 million, resulting from a $2.2 billion noncash impairment to reduce the carrying value of goodwill
and a $13 million noncash impairment related to asset writedowns in connection with facility
consolidations.
Key Operating Metrics
During the quarter, AOL had 109 million average monthly domestic unique visitors and 54 billion domestic
page views, according to comScore Media Metrix, which translates into 165 average monthly domestic
page views per unique visitor.
As of December 31, 2008, the AOL service had 6.9 million U.S. access subscribers, a decline of 573,000
from the prior quarter and 2.4 million from the year-ago quarter, reflecting subscriber losses due partially to
AOL’s strategy to prioritize its advertising business.

5
CABLE (Time Warner Cable)
Full-Year Results
Revenues increased 8% ($1.2 billion) to $17.2 billion. Subscription revenues rose 8% ($1.2 billion) to
$16.3 billion. Video revenues grew 4% ($359 million) to $10.5 billion, benefiting from the continued
growth in digital video subscriptions and video price increases. High-speed data revenues climbed 12%
($429 million) to $4.2 billion, driven by continued high-speed data subscriber growth. Voice revenues
increased 36% ($426 million) to $1.6 billion. Advertising revenues grew 4% ($31 million) to $898 million,
due mainly to an increase in political advertising revenues, offset partially by declines in other categories.
Adjusted Operating Income before Depreciation and Amortization rose 8% ($444 million) to $6.2
billion, benefiting from revenue growth, offset partly by higher employee, video programming and voice
costs related primarily to increases in digital video, high-speed data and Digital Phone subscribers, as well
as higher marketing costs resulting from intensified marketing efforts. Additionally, the current year results
included restructuring expenses of $15 million, compared to merger-related and restructuring expenses of
$23 million in the prior year.
Income of $2.8 billion, due to a $14.8 billion noncash impairment of cable franchise rights, a $45 million
noncash impairment of certain non-core cable systems and a $13 million loss on the sale of these non-core
cable systems. Also contributing to the decline was an increase in depreciation expense ($122 million),
offset in part by higher Adjusted Operating Income before Depreciation and Amortization.
Revenues rose 8% ($313 million) to $4.4 billion. Adjusted Operating Income before Depreciation and
Amortization grew 6% ($97 million) to $1.7 billion. Operating Loss of $13.9 billion represented a
decline of $14.7 billion compared to the year-ago quarter’s Operating Income of $795 million, resulting
from a $14.8 billion noncash impairment of cable franchise rights and a $13 million loss on the sale of
certain non-core cable systems, offset in part by higher Adjusted Operating Income before Depreciation
and Amortization.
Key Operating Metrics
Revenue generating units (“RGUs”) totaled 34.2 million as of December 31, 2008 – reflecting net additions
of 175,000 during the fourth quarter. Customer relationships were 14.6 million, and Triple play subscribers
reached 3.1 million (or 21% of total customer relationships), benefiting from 110,000 net additions during
the fourth quarter.

6
Selected Subscriber Data
Net
Additions Acquisitions
9/30/08 (Declines)(a)
(Dispositions)(a)
12/31/08
(in thousands)
Subscriber Data:
Revenue generating units(b)
.............................................. 34,151 175 (126) 34,200
Customer relationships(c)
.................................................. 14,750 (84) (84) 14,582
Double play subscribers(d)
................................................ 4,811 (5) (12) 4,794
Triple play subscribers(e)
................................................... 2,992 110 (3) 3,099
Bundled subscribers(f)
....................................................... 7,803 105 (15) 7,893
Homes passed(g)
................................................................ 26,830 207 (271) 26,766
Basic video subscribers(h)
................................................. 13,266 (119) (78) 13,069
Digital video subscribers(i)
................................................ 8,607 44 (24) 8,627
Residential high-speed data subscribers(j)(k)
...................... 8,339 124(j)
(19) 8,444
Commercial high-speed data subscribers(j)(k)
.................... 295 (11)(j)
(1) 283
Residential Digital Phone subscribers(k)(l)
......................... 3,621 130 (4) 3,747
Commercial Digital Phone subscribers(k)(l)
....................... 23 7 — 30
——————————
(a)
Net additions (declines) reflect subscriber activity for each period other than subscriber changes resulting from acquisitions, dispositions or
exchanges during any given quarter of cable systems that, in the aggregate, served more than 5,000 basic video subscribers. The subscriber
changes resulting from such transactions are reflected in the “Acquisitions (Dispositions)” column and include the subscriber changes
resulting from the disposition of certain non-core cable systems in the fourth quarter of 2008.
(b)
Revenue generating units represent the total of all basic video, digital video, high-speed data and voice subscribers.
(c)
Customer relationships represent the number of subscribers who receive at least one level of service, encompassing video, high-speed data and
voice services, without regard to the number of services purchased. For example, a subscriber who purchases only high-speed data service and
no video service will count as one customer relationship, and a subscriber who purchases both video and high-speed data services will also
count as only one customer relationship.
(d)
Double play subscriber numbers reflect customers who subscribe to two of Time Warner Cable’s primary services (video, high-speed data and
voice).
(e)
Triple play subscriber numbers reflect customers who subscribe to all three of Time Warner Cable’s primary services.
(f)
Bundled subscriber numbers reflect customers who subscribe to two or more of Time Warner Cable’s primary services.
(g)
Homes passed represent the estimated number of service-ready single residence homes, apartment and condominium units and commercial
establishments passed by Time Warner Cable’s cable systems without further extending the transmission lines.
(h)
Basic video subscriber numbers reflect billable subscribers who receive at least basic video service.
(i)
Digital video subscriber numbers reflect billable subscribers who receive any level of video service via digital transmissions.
(j)
High-speed data subscriber numbers reflect billable subscribers who receive Road Runner high-speed data service or any of the other high-
speed data services offered by Time Warner Cable. Net additions (declines) for the fourth quarter and full year of 2008 reflect a
reclassification of approximately 15,000 subscribers from commercial high-speed data to residential high-speed data.
(k)
The determination of whether a high-speed data or Digital Phone subscriber is categorized as commercial or residential is generally based
upon the type of service provided to that subscriber. For example, if Time Warner Cable provides a commercial service, the subscriber is
classified as commercial.
(l)
Digital Phone subscriber numbers reflect billable subscribers who receive an IP-based telephony service.
FILMED ENTERTAINMENT (Warner Bros. Entertainment)
Full-Year Results
Revenues declined 2% ($284 million) to $11.4 billion, reflecting difficult comparisons due to a reduced
number of films released in 2008 compared to 2007 and softening DVD sales. The current year included
revenues from The Dark Knight, Sex and the City: The Movie and 10,000 B.C., while revenues in the prior
year included Harry Potter and the Order of the Phoenix, 300, Ocean’s 13 and I Am Legend. Also
contributing to the decline were lower television license fees, due mainly to the prior year’s initial off-
network availabilities of Two and a Half Men and Cold Case and the negative impact of the Writers Guild
of America (East and West) strike on the current year results. These decreases were offset partially by
growth in interactive video games revenues, due primarily to the releases of LEGO Indiana Jones and
LEGO Batman.
Operating Income before Depreciation and Amortization rose 1% ($13 million) to $1.2 billion, as the
impact of lower revenues and higher restructuring costs ($142 million), which were associated largely
with the operational reorganization of the New Line Cinema business, were more than offset by lower print
and advertising expenses and lower film costs, due mainly to timing, quantity and mix of titles.

7
Operating Income declined 3% ($22 million) to $823 million, due primarily to higher depreciation ($14
million) and amortization ($21 million) expenses, offset in part by higher Operating Income before
Depreciation and Amortization.
Revenues decreased 11% ($395 million) to $3.1 billion. Operating Income before Depreciation and
Amortization rose 6% ($21 million) to $371 million. The current year quarter’s results also included $30
million in increased bad debt reserves for potential credit losses related to several customers that have
recently filed for bankruptcy. Operating Income grew 7% ($18 million) to $271 million, due largely to
higher Operating Income before Depreciation and Amortization.
NETWORKS (Turner Broadcasting & HBO)
Full-Year Results
Revenues rose 9% ($884 million) to $11.2 billion, benefiting from growth of 9% ($577 million) in
Subscription revenues and 10% ($301 million) in Advertising revenues. The increase in Subscription
revenues resulted mainly from higher rates at both Turner and HBO and, to a lesser extent, more
subscribers for Turner’s networks, as well as the impact of international expansion. Advertising revenues
benefited from increases at Turner’s domestic entertainment and news networks, reflecting largely higher
CPMs (advertising rates per thousand viewers) and audience delivery, as well as increases at Turner’s
international networks, due primarily to an increase in the number of units sold.
Adjusted Operating Income before Depreciation and Amortization climbed 4% ($138 million) to $3.5
billion, reflecting revenue growth, offset primarily by higher programming and election-related
newsgathering expenses. The current year results also included a charge of approximately $280 million,
taken in connection with a trial court judgment against Turner related to the 2004 sale of its winter sports
teams. This charge reduced growth in Adjusted Operating Income before Depreciation and Amortization by
8 percentage points. Programming expenses grew 8% to $3.9 billion, driven largely by an increase in
programming costs associated with international expansion; sports programming costs at Turner, related
particularly to NBA programming; and higher original and licensed programming costs. In addition,
programming expenses in the current and prior year results included impairments of $38 million and $6
million, respectively, in connection with the decision not to proceed with certain original programming.
The prior year results included a charge of $37 million related to restructuring charges and severance at
HBO.
Operating Income grew 3% ($103 million) to $3.1 billion, due mainly to the increase in Adjusted
Operating Income before Depreciation and Amortization, offset partly by increased depreciation ($23
million) and amortization ($25 million) expenses. The current year results included an $18 million noncash
impairment of GameTap, an online video game business and a $3 million loss on the sale of GameTap. The
prior year results included a $34 million noncash impairment of the Court TV tradename due to rebranding
the network’s name to truTV.
Revenues rose 9% ($234 million) to $2.9 billion, including increases of 7% ($113 million) in Subscription
revenues and 7% ($65 million) in Advertising revenues. Adjusted Operating Income before
Depreciation and Amortization declined 20% ($175 million) to $682 million. The current year quarter’s
results included a charge of approximately $270 million taken in connection with a trial court judgment
against Turner related to the 2004 sale of its winter sports teams. This charge reduced growth in Adjusted
Operating Income before Depreciation and Amortization by 31 percentage points. Operating Income
decreased 24% ($184 million) to $586 million, reflecting primarily the decline in Adjusted Operating
Income before Depreciation and Amortization.

8
PUBLISHING (Time Inc.)
Full-Year Results
Revenues decreased 7% ($347 million) to $4.6 billion, resulting from declines of 10% ($279 million) in
Advertising revenues, 8% ($50 million) in Other revenues and 2% ($28 million) in Subscription revenues.
Advertising revenues reflected decreases in print magazine revenues and lower custom publishing
revenues, as well as the impact of the 2007 closures of LIFE and Business 2.0 magazines. Offsetting these
decreases in part was an increase in online revenues ($57 million), led by People.com, CNNMoney.com and
Time.com. The decline in Other revenues was due primarily to decreases at Synapse, Southern Living At
Home and Oxmoor House, offset partly by the impact of the acquisition of QSP, Inc. and its Canadian
affiliate, Quality Service Programs Inc. Subscription revenues declined, reflecting mainly the negative
impact of foreign exchange rates at IPC Media and lower domestic magazine subscription sales, offset
partly by higher newsstand sales for certain domestic magazines.
Adjusted Operating Income before Depreciation and Amortization declined 29% ($319 million) to
$779 million, due primarily to decreases in Advertising revenues, higher restructuring charges ($109
million) and a $35 million increase in bad debt reserves, offset partially by lower overhead expenses. The
current year restructuring charges of $176 million included $57 million related to a sub-lease with a tenant
that filed for bankruptcy in September 2008.
Income of $907 million, due mainly to a $7.1 billion noncash impairment to reduce the carrying value of
goodwill and intangible assets. Also contributing to the decline were lower Adjusted Operating Income
before Depreciation and Amortization, a $30 million noncash asset impairment related to the sub-lease with
a tenant that filed for bankruptcy in September 2008 and a $21 million noncash impairment related to
Southern Living At Home, which is held for sale.
Revenues declined 13% ($186 million) to $1.3 billion, including decreases of 20% ($158 million) in
Advertising revenues and 9% ($38 million) in Subscription revenues. The decline in Subscription revenues
was due primarily to the negative impact of foreign exchange rates ($22 million). Adjusted Operating
Income before Depreciation and Amortization decreased 70% ($290 million) to $124 million. The
current and prior year quarters reflected restructuring charges of $160 million and $21 million,
respectively. The current year quarter’s restructuring charges included $57 million related to the sub-lease
with a tenant that filed for bankruptcy in September 2008. The current year quarter also included a $35
million increase in bad debt reserves. Operating Loss of $7.1 billion represented a decline of $7.5 billion
compared to the year-ago quarter’s Operating Income of $362 million, resulting from a $7.1 billion
noncash impairment to reduce the carrying value of goodwill and intangible assets, lower Adjusted
Operating Income before Depreciation and Amortization and a $21 million noncash impairment related to
Southern Living At Home, which is held for sale.
CONSOLIDATED REPORTED NET INCOME (LOSS) AND PER SHARE RESULTS
Full-Year Results
For the year ended December 31, 2008, the Company reported a Net Loss of $13.4 billion, or $3.74 per
diluted common share. This compares to 2007 Net Income of $4.4 billion, or $1.17 per diluted common
share.
For the year ended December 31, 2008, the Company reported a Loss from Continuing Operations of $13.4
billion, or $3.74 per diluted common share. This compares to Income from Continuing Operations in 2007
of $4.1 billion, or $1.08 per diluted common share.

9
The comparability of the Company’s results from continuing operations has been affected by certain
significant transactions and other items in the current and prior years. Refer to Note 3 to the accompanying
consolidated financial statements at the end of this release for a discussion of these items.
In the aggregate, these items affecting comparability had the net effect of decreasing the current year
Income (Loss) from Continuing Operations by $17.0 billion (net of taxes), or $4.73 per diluted common
share, and increasing the prior year by $426 million (net of taxes), or $0.12 per diluted common share.
Excluding such items, Income (Loss) from Continuing Operations decreased, reflecting higher amortization
and depreciation expenses and the impact of an increase in the effective tax rate due to the potential
nondeductibility of certain litigation accruals, offset in part by growth in Adjusted Operating Income (Loss)
before Depreciation and Amortization and lower interest expense. Excluding such items, Diluted Income
(Loss) per Common Share from Continuing Operations increased in 2008 compared to 2007, driven by a
decrease in average diluted common shares outstanding as a result of common stock repurchases made
under the stock repurchase program, offset partly by the decline in Income (Loss) from Continuing
Operations.
For the three months ended December 31, 2008, the Company reported a Net Loss of $16.0 billion, or
$4.47 per diluted common share. This compares to Net Income in the 2007 comparable quarter of $1.0
billion, or $0.28 per diluted common share.
For the three months ended December 31, 2008, the Company reported a Loss from Continuing Operations
of $16.0 billion, or $4.47 per diluted common share. This compares to Income from Continuing Operations
in 2007’s fourth quarter of $1.0 billion, or $0.28 per diluted common share.
The comparability of the Company’s results from continuing operations has been affected by certain
significant transactions and other items in the current and prior year quarters. Refer to Note 3 to the
accompanying consolidated financial statements at the end of this release for a discussion of these items.
In the aggregate, these items affecting comparability had the net effect of decreasing the current year
quarter’s Income (Loss) from Continuing Operations by $16.8 billion (net of taxes), or $4.70 per diluted
common share, and decreasing the prior year quarter’s Income (Loss) from Continuing Operations by $35
million (net of taxes), or $0.01 per diluted common share. Excluding such items, Income (Loss) from
Continuing Operations decreased, reflecting lower Adjusted Operating Income before Depreciation and
Amortization and the impact of an increase in the effective tax rate due to the potential nondeductibility of
certain litigation accruals, offset in part by lower interest expense. Excluding such items, Diluted Income
(Loss) per Common Share from Continuing Operations declined in the current year quarter compared to the
prior year quarter, driven by lower Income (Loss) from Continuing Operations, offset partly by a decrease
in average diluted common shares outstanding as a result of common stock repurchases made under the
stock repurchase program.
STOCK REPURCHASE PROGRAM UPDATE
From the announcement of the Company’s $5 billion stock repurchase program on August 1, 2007, through
February 3, 2009, the Company repurchased approximately 154 million shares of common stock for
approximately $2.8 billion. These amounts are unchanged from those reported in the Company’s third-
quarter 2008 earnings release issued on November 5, 2008.

10
Use of Operating Income (Loss) before Depreciation and Amortization, Adjusted Operating Income
(Loss) before Depreciation and Amortization and Free Cash Flow
The Company utilizes Operating Income (Loss) before Depreciation and Amortization, among other
measures, to evaluate the performance of its businesses. The Company also evaluates the performance of its
businesses using Operating Income (Loss) before Depreciation and Amortization excluding the impact of
noncash impairments of goodwill, intangible and fixed assets, as well as gains and losses on asset sales, and
amounts related to securities litigation and government investigations (referred to herein as Adjusted
Operating Income (Loss) before Depreciation and Amortization). Both Operating Income (Loss) before
Depreciation and Amortization and Adjusted Operating Income (Loss) before Depreciation and
Amortization are considered important indicators of the operational strength of the Company’s businesses.
Operating Income (Loss) before Depreciation and Amortization eliminates the uneven effect across all
business segments of considerable amounts of noncash depreciation of tangible assets and amortization of
certain intangible assets that were primarily recognized in business combinations. A limitation of this
measure, however, is that it does not reflect the periodic costs of certain capitalized tangible and intangible
assets used in generating revenues in the Company’s businesses. Moreover, Adjusted Operating Income
(Loss) before Depreciation and Amortization does not reflect gains and losses on asset sales or amounts
related to securities litigation and government investigations or any impairment charge related to goodwill,
intangible assets and fixed assets. Management evaluates the investments in such tangible and intangible
assets through other financial measures, such as capital expenditure budgets, investment spending levels
and return on capital.
Free Cash Flow is Cash Provided by Operations (as defined by U.S. generally accepted accounting
principles) plus payments related to securities litigation and government investigations (net of any insurance
recoveries) and excess tax benefits from the exercise of stock options, less cash flow attributable to
discontinued operations, capital expenditures and product development costs, principal payments on capital
leases and partnership distributions, if any. The Company uses Free Cash Flow to evaluate its businesses
and this measure is considered an important indicator of the Company’s liquidity, including its ability to
reduce net debt, make strategic investments, pay dividends to common shareholders and repurchase stock.
A limitation of this measure, however, is that it does not reflect payments made in connection with the
securities litigation and government investigations, which reduce liquidity.
Operating Income (Loss) before Depreciation and Amortization, Adjusted Operating Income (Loss) before
Depreciation and Amortization and Free Cash Flow should be considered in addition to, not as a substitute
for, the Company’s Operating Income, Net Income and various cash flow measures (e.g., Cash Provided by
Operations), as well as other measures of financial performance and liquidity reported in accordance with
U.S. generally accepted accounting principles.
About Time Warner Inc.
Time Warner Inc. is a leading media and entertainment company, whose businesses include interactive
services, cable systems, filmed entertainment, television networks and publishing.
Information on Time Warner’s Business Outlook Release and Conference Call
Time Warner Inc. issued a separate release today providing its 2009 full-year business outlook.
The Company’s conference call can be heard live at 10:30 am ET on Wednesday, February 4, 2009. To
listen to the call, visit www.timewarner.com/investors or AOL Keyword: IR.

11
Information on Time Warner Cable’s Release and Conference Call
Time Warner Cable issued a separate release today providing its 2008 full-year and fourth-quarter results.
Time Warner Cable’s conference call can be heard live at 8:30 am ET on Wednesday, February 4, 2009.
To listen to the call, visit www.timewarnercable.com/investors or AOL Keyword: TWC IR.
Caution Concerning Forward-Looking Statements
This document includes certain forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are based on management’s current expectations or
beliefs, and are subject to uncertainty and changes in circumstances. Actual results may vary materially
from those expressed or implied by the statements herein due to changes in economic, business,
competitive, technological, strategic and/or regulatory factors, the planned separation of Time Warner
Cable from the Company and other factors affecting the operation of the businesses of Time Warner Inc.
More detailed information about these factors may be found in filings by Time Warner with the Securities
and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Reports
on Form 10-Q. Time Warner is under no obligation to, and expressly disclaims any such obligation to,
update or alter its forward-looking statements, whether as a result of new information, future events, or
otherwise.
Contacts:
Corporate Communications Investor Relations
Edward Adler (212) 484-6630 Doug Shapiro (212) 484-8926
Keith Cocozza (212) 484-7482
# # #

TIME WARNER INC.
CONSOLIDATED BALANCE SHEET
(Unaudited; millions, except per share amounts)
December 31,
2008
December 31,
2007
ASSETS
Current assets
Cash and equivalents.......................................................................................................................$ 6,682 $ 1,516
Receivables, less allowances of $2,359 and $2,410 ........................................................................ 6,195 7,296
Inventories....................................................................................................................................... 1,989 2,105
Prepaid expenses and other current assets....................................................................................... 976 834
Deferred income taxes..................................................................................................................... 760 700
Total current assets.......................................................................................................................... 16,602 12,451
Noncurrent inventories and film costs............................................................................................. 5,192 5,304
Investments, including available-for-sale securities........................................................................ 1,930 1,963
Property, plant and equipment, net.................................................................................................. 18,433 18,048
Intangible assets subject to amortization, net .................................................................................. 4,057 5,167
Intangible assets not subject to amortization................................................................................... 31,822 47,220
Goodwill.......................................................................................................................................... 34,530 41,749
Other assets ..................................................................................................................................... 1,330 1,928
Total assets......................................................................................................................................$ 113,896 $ 133,830
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable ............................................................................................................................$ 1,341 $ 1,470
Participations payable...................................................................................................................... 2,522 2,547
Royalties and programming costs payable ...................................................................................... 1,265 1,253
Deferred revenue............................................................................................................................. 1,169 1,178
Debt due within one year................................................................................................................. 2,067 126
Other current liabilities.................................................................................................................... 5,610 5,611
Current liabilities of discontinued operations.................................................................................. 2 8
Total current liabilities .................................................................................................................... 13,976 12,193
Long-term debt................................................................................................................................ 37,616 37,004
Mandatorily redeemable preferred membership units issued by a subsidiary ................................. 300 300
Deferred income taxes..................................................................................................................... 8,756 13,951
Deferred revenue............................................................................................................................. 283 522
Other liabilities................................................................................................................................ 7,258 7,002
Minority interests ............................................................................................................................ 3,419 4,322
Shareholders’ equity
Time Warner common stock, $0.01 par value, 4.891 and 4.877 billion shares issued and
3.588 and 3.593 billion shares outstanding ................................................................................... 49 49
Paid-in-capital ................................................................................................................................. 172,645 172,443
Treasury stock, at cost (1.303 and 1.284 billion shares).................................................................. (25,836) (25,526)
Accumulated other comprehensive income (loss), net .................................................................... (1,676) 149
Accumulated deficit ........................................................................................................................ (102,894) (88,579)
Total shareholders’ equity ............................................................................................................... 42,288 58,536
Total liabilities and shareholders’ equity.........................................................................................$ 113,896 $ 133,830
See accompanying notes.
12

TIME WARNER INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited; millions, except per share amounts)
2008 2007 2008 2007
Revenues:
Subscription .................................................... $ 6,474 $ 6,266 $ 25,786 $ 24,904
Advertising...................................................... 2,329 2,504 8,742 8,799
Content ............................................................ 3,155 3,545 11,432 11,708
Other................................................................ 348 327 1,024 1,071
Total revenues.......................................................... 12,306 12,642 46,984 46,482
Costs of revenues..................................................... (7,092) (7,552) (27,289) (27,426)
Selling, general and administrative.......................... (2,794) (2,440) (10,163) (9,653)
Amortization of intangible assets............................. (201) (172) (784) (674)
Amounts related to securities litigation and
government investigations ..................................... (8) (2) (21) (171)
Merger-related, restructuring and shutdown costs ... (177) (149) (359) (262)
Asset impairments.................................................... (24,207) — (24,309) (36)
Gain (loss) on disposal of assets, net........................ (13) 16 (16) 689
Operating income (loss)........................................... (22,186) 2,343 (15,957) 8,949
Interest expense, net................................................. (604) (585) (2,250) (2,299)
Other income (loss), net........................................... (394) (86) (416) 145
Minority interest income (expense), net................... 2,240 (103) 1,974 (408)
Income (loss) from continuing operations before
income taxes .......................................................... (20,944) 1,569 (16,649) 6,387
Income tax provision................................................ 4,910 (550) 3,247 (2,336)
Income (loss) from continuing operations................ (16,034) 1,019 (13,402) 4,051
Discontinued operations, net of tax.......................... 2 12 — 336
Net income (loss)..................................................... $ (16,032) $ 1,031 $ (13,402) $ 4,387
Basic income (loss) per common share from
continuing operations............................................. $ (4.47) $ 0.28 $ (3.74) $ 1.09
Discontinued operations........................................... — 0.01 — 0.09
Basic net income (loss) per common share.............. $ (4.47) $ 0.29 $ (3.74) $ 1.18
Diluted income (loss) per common share from
continuing operations............................................. $ (4.47) $ 0.28 $ (3.74) $ 1.08
Discontinued operations........................................... — — — 0.09
Diluted net income (loss) per common share........... $ (4.47) $ 0.28 $ (3.74) $ 1.17
Average basic common shares outstanding.............. 3,587.4 3,605.8 3,582.6 3,718.9
Average diluted common shares outstanding........... 3,587.4 3,637.8 3,582.6 3,762.3
Cash dividends declared per share of common
stock....................................................................... $ 0.0625 $ 0.0625 $ 0.2500 $ 0.2350
13

TIME WARNER INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
Year Ended December 31,
(Unaudited, millions)
2008 2007
OPERATIONS
Net income (loss)(a)
........................................................................................................................$ (13,402) $ 4,387
Adjustments for noncash and nonoperating items:
Depreciation and amortization ............................................................................................. 4,590 4,412
Amortization of film and television costs............................................................................. 5,891 6,076
Asset impairments................................................................................................................ 24,309 36
(Gain) loss on investments and other assets, net .................................................................. 434 (909)
Equity in losses of investee companies, net of cash distributions ........................................ 31 63
Equity-based compensation.................................................................................................. 290 286
Minority interests ................................................................................................................. (1,974) 408
Deferred income taxes.......................................................................................................... (4,116) 1,736
Amounts related to securities litigation and government investigations........................................ — (741)
Changes in operating assets and liabilities, net of acquisitions:
Receivables........................................................................................................................... 1,245 (1,090)
Inventories and film costs..................................................................................................... (5,766) (6,045)
Accounts payable and other liabilities.................................................................................. (445) 109
Other balance sheet changes................................................................................................. (741) 60
Adjustments relating to discontinued operations(a)
........................................................................ (14) (313)
Cash provided by operations(b) (c)
................................................................................................... 10,332 8,475
INVESTING ACTIVITIES
Investments in available-for-sale securities................................................................................... (19) (94)
Investments and acquisitions, net of cash acquired ....................................................................... (2,435) (1,513)
Investment in a wireless joint venture ........................................................................................... (3) (33)
Investment activities of discontinued operations........................................................................... — (26)
Capital expenditures and product development costs.................................................................... (4,377) (4,430)
Investment proceeds from available-for-sale securities................................................................. 17 36
Other investment proceeds ............................................................................................................ 331 2,041
Cash used by investing activities................................................................................................... (6,486) (4,019)
FINANCING ACTIVITIES
Borrowings .................................................................................................................................... 40,366 14,690
Debt repayments............................................................................................................................ (37,808) (12,523)
Proceeds from exercise of stock options........................................................................................ 134 521
Excess tax benefit on stock options............................................................................................... 3 76
Principal payments on capital leases ............................................................................................. (43) (57)
Repurchases of common stock(d)
.................................................................................................... (332) (6,231)
Dividends paid............................................................................................................................... (901) (871)
Other financing activities............................................................................................................... (99) (94)
Cash provided (used) by financing activities................................................................................. 1,320 (4,489)
INCREASE (DECREASE) IN CASH AND EQUIVALENTS................................................. 5,166 (33)
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD ............................................... 1,516 1,549
CASH AND EQUIVALENTS AT END OF PERIOD..............................................................$ 6,682 $ 1,516
_____________________
(a)
The year ended December 31, 2007 includes net income from discontinued operations of $336 million. After considering noncash gains and
expenses and working capital-related adjustments relating to discontinued operations, net operational cash flows from discontinued operations were
$(14) million and $23 million for the years ended December 31, 2008 and 2007, respectively.
(b)
The years ended December 31, 2008 and 2007 include $21 million and $912 million, respectively, in payments, net of recoveries, related to securities
litigation and government investigations.
(c)
The year ended December 31, 2007 includes approximately $2 million of cash related to changing the fiscal year end of certain international
operations from November 30 to December 31.
(d)
The year ended December 31, 2007 excludes $440 million of common stock repurchased from Liberty Media Corporation, indirectly attributable to
the exchange of the Atlanta Braves baseball franchise (the “Braves”) and Leisure Arts, Inc. (“Leisure Arts”). Specifically, the $440 million represents
the fair value at the time of the exchange of the Braves and Leisure Arts of $473 million, less a $33 million net working capital adjustment.
14

TIME WARNER INC.
RECONCILIATION OF ADJUSTED OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND
AMORTIZATION TO OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION
Three Months Ended December 31, 2008
Adjusted
Operating
Income/(Loss)
Before
Depreciation
And Amortization
Amounts
Related To
Securities
Litigation &
Government
Investigations
Operating
Income/(Loss)
Before
Depreciation
And
Amortization
Gains/(Losses)
From
Asset Disposals
Asset
Impairments
AOL(a)
.................................. $ 405 $ (2,220) $ — $ — $ (1,815)
Cable(b)
................................ 1,660 (14,822) — (13) (13,175)
Filmed Entertainment.......... 371 — — — 371
Networks ............................. 682 — — — 682
Publishing(c)
......................... 124 (7,165) — — (7,041)
Corporate(d)
.......................... (71) — (8) — (79)
Intersegment elimination..... 17 — — — 17
Total .................................... $ 3,188 $ (24,207) $ (8) $ (13) $ (21,040)
Adjusted
Operating
Income/(Loss)
Before
Depreciation
And Amortization
Amounts
Related To
Securities
Litigation &
Government
Investigations
Operating
Income/(Loss)
Before
Depreciation
And
Amortization
Gains/(Losses)
From
Asset Disposals
Asset
Impairments
AOL(a)
.................................. $ 381 $ — $ — $ 16 $ 397
Cable ................................... 1,563 — — — 1,563
Filmed Entertainment.......... 350 — — — 350
Networks ............................. 857 — — — 857
Publishing............................ 414 — — — 414
Corporate(d)
.......................... (98) — (2) — (100)
Intersegment elimination..... — — — — —
Total .................................... $ 3,467 $ — $ (2) $ 16 $ 3,481
_________________________
(a)
For the three months ended December 31, 2008, Operating Loss before Depreciation and Amortization includes a $2.207 billion noncash impairment to
reduce the carrying value of goodwill and a $13 million noncash impairment related to asset writedowns in connection with facility consolidations. For
the three months ended December 31, 2007, Operating Income before Depreciation and Amortization includes a $16 million gain related to the sale of a
building.
(b)
For the three months ended December 31, 2008, Operating Loss before Depreciation and Amortization includes a $14.822 billion noncash impairment
of cable franchise rights and a $13 million loss on the sale of certain non-core cable systems.
(c)
reduce the carrying value of goodwill and intangible assets, a $21 million noncash impairment of Southern Living At Home, which is held for sale, and
a $5 million noncash impairment related to certain other asset write-offs.
(d)
For the three months ended December 31, 2008, Operating Loss before Depreciation and Amortization includes $8 million in net expenses related to
securities litigation and government investigations. For the three months ended December 31, 2007, Operating Loss before Depreciation and
Amortization includes $2 million in net expenses related to securities litigation and government investigations.
15

TIME WARNER INC.
RECONCILIATION OF ADJUSTED OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND
AMORTIZATION TO OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION
Year Ended December 31, 2008
Adjusted
Operating
Income/(Loss)
Before
Depreciation
And Amortization
Amounts
Related To
Securities
Litigation &
Government
Investigations
Operating
Income/(Loss)
Before
Depreciation
And
Amortization
Gains/(Losses)
From
Asset Disposals
Asset
Impairments
AOL(a)
.................................. $ 1,558 $ (2,229) $ — $ — $ (671)
Cable(b)
................................ 6,186 (14,867) — (13) (8,694)
Filmed Entertainment.......... 1,228 — — — 1,228
Networks(c)
.......................... 3,508 (18) — (3) 3,487
Publishing(d)
......................... 779 (7,195) — — (6,416)
Corporate(e)
.......................... (315) — (21) — (336)
Intersegment elimination..... 35 — — — 35
Total .................................... $ 12,979 $ (24,309) $ (21) $ (16) $ (11,367)
Adjusted
Operating
Income/(Loss)
Before
Depreciation
And Amortization
Amounts
Related To
Securities
Litigation &
Government
Investigations
Operating
Income/(Loss)
Before
Depreciation
And
Amortization
Gains/(Losses)
From
Asset Disposals
Asset
Impairments
AOL(a)
.................................. $ 1,836 $ (2) $ — $ 683 $ 2,517
Cable ................................... 5,742 — — — 5,742
Filmed Entertainment.......... 1,215 — — — 1,215
Networks(c)
.......................... 3,370 (34) — — 3,336
Publishing(d)
......................... 1,098 — — 6 1,104
Corporate(e)
.......................... (379) — (171) — (550)
Intersegment elimination..... (3) — — — (3)
Total .................................... $ 12,879 $ (36) $ (171) $ 689 $ 13,361
_________________________
(a)
For the year ended December 31, 2008, Operating Loss before Depreciation and Amortization includes a $2.207 billion noncash impairment to reduce
the carrying value of goodwill and a $22 million noncash impairment related to asset writedowns in connection with facility consolidations. For the year
ended December 31, 2007, Operating Income before Depreciation and Amortization includes a net pretax gain of $668 million on the sale of AOL’s
German access business, a net $1 million reduction to the gain on the sale of AOL’s U.K. access business, a $16 million gain related to the sale of a
building and a $2 million noncash asset impairment.
(b)
For the year ended December 31, 2008, Operating Loss before Depreciation and Amortization includes a $14.822 billion noncash impairment of cable
franchise rights, a $45 million noncash impairment of certain non-core cable systems and a $13 million loss on the sale of these non-core cable systems.
(c)
For the year ended December 31, 2008, Operating Income before Depreciation and Amortization includes an $18 million noncash impairment of
GameTap, an online video game business, as well as a $3 million loss on the sale of GameTap. For the year ended December 31, 2007, Operating
Income before Depreciation and Amortization includes a $34 million noncash impairment of the Court TV tradename as a result of rebranding the
network’s name to truTV.
(d)
the carrying value of goodwill and intangible assets, a $30 million noncash asset impairment related to the sub-lease with a tenant that filed for
bankruptcy in September 2008, a $21 million noncash impairment of Southern Living At Home, which is held for sale, and a $5 million noncash
impairment related to certain other asset write-offs. For the year ended December 31, 2007, Operating Income before Depreciation and Amortization
includes a $6 million gain on the sale of four non-strategic magazine titles.
(e)
For the year ended December 31, 2008, Operating Loss before Depreciation and Amortization includes $21 million in net expenses related to securities
litigation and government investigations. For the year ended December 31, 2007, Operating Income before Depreciation and Amortization includes
$153 million in legal reserves related to securities litigation and $18 million in net expenses related to securities litigation and government
investigations.
16

TIME WARNER INC.
RECONCILIATION OF OPERATING INCOME (LOSS) BEFORE DEPRECIATION
AND AMORTIZATION TO OPERATING INCOME (LOSS)
Operating
Income/(Loss)
Before Depreciation
And Amortization
Operating
Income/(Loss)Depreciation Amortization
AOL(a)
.................................. $ (1,815) $ (72) $ (42) $ (1,929)
Cable(b)
................................. (13,175) (703) (66) (13,944)
Filmed Entertainment........... 371 (41) (59) 271
Networks.............................. 682 (85) (11) 586
Publishing(c)
......................... (7,041) (33) (23) (7,097)
Corporate(d)
.......................... (79) (11) — (90)
Intersegment elimination...... 17 — — 17
Total..................................... $ (21,040) $ (945) $ (201) $(22,186)
Operating
Income/(Loss)
Before Depreciation
And Amortization
Operating
AOL(a)
.................................. $ 397 $ (96) $ (27) $ 274
Cable.................................... 1,563 (703) (65) 795
Filmed Entertainment........... 350 (41) (56) 253
Networks.............................. 857 (81) (6) 770
Publishing ............................ 414 (34) (18) 362
Corporate(d)
.......................... (100) (11) — (111)
Intersegment elimination...... — — — —
Total..................................... $ 3,481 $ (966) $ (172) $ 2,343
_________________________
(a)
reduce the carrying value of goodwill and a $13 million noncash impairment related to asset writedowns in connection with facility consolidations. For
the three months ended December 31, 2007, Operating Income before Depreciation and Amortization includes a $16 million gain related to the sale of a
building.
(b)
For the three months ended December 31, 2008, Operating Loss before Depreciation and Amortization includes a $14.822 billion noncash impairment
of cable franchise rights and a $13 million loss on the sale of certain non-core cable systems.
(c)
reduce the carrying value of goodwill and intangible assets, a $21 million noncash impairment of Southern Living At Home, which is held for sale, and
a $5 million noncash impairment related to certain other asset write-offs.
(d)
For the three months ended December 31, 2008, Operating Loss before Depreciation and Amortization includes $8 million in net expenses related to
securities litigation and government investigations. For the three months ended December 31, 2007, Operating Loss before Depreciation and
Amortization includes $2 million in net expenses related to securities litigation and government investigations.
17

TIME WARNER INC.
RECONCILIATION OF OPERATING INCOME (LOSS) BEFORE DEPRECIATION
AND AMORTIZATION TO OPERATING INCOME (LOSS)
Operating
Income/(Loss)
Before Depreciation
And Amortization
Operating
AOL(a)
.................................. $ (671) $ (310) $ (166) $ (1,147)
Cable(b)
................................. (8,694) (2,826) (262) (11,782)
Filmed Entertainment........... 1,228 (167) (238) 823
Networks(c)
........................... 3,487 (326) (43) 3,118
Publishing(d)
......................... (6,416) (133) (75) (6,624)
Corporate(e)
.......................... (336) (44) — (380)
Intersegment elimination...... 35 — — 35
Total..................................... $ (11,367) $ (3,806) $ (784) $(15,957)
Operating
Income/(Loss)
Before Depreciation
And Amortization
Operating
AOL(a)
.................................. $ 2,517 $ (408) $ (96) $ 2,013
Cable.................................... 5,742 (2,704) (272) 2,766
Filmed Entertainment........... 1,215 (153) (217) 845
Networks(c)
........................... 3,336 (303) (18) 3,015
Publishing(d)
......................... 1,104 (126) (71) 907
Corporate(e)
.......................... (550) (44) — (594)
Intersegment elimination...... (3) — — (3)
Total..................................... $ 13,361 $ (3,738) $ (674) $ 8,949
_________________________
(a)
the carrying value of goodwill and a $22 million noncash impairment related to asset writedowns in connection with facility consolidations. For the year
ended December 31, 2007, Operating Income before Depreciation and Amortization includes a net pretax gain of $668 million on the sale of AOL’s
German access business, a net $1 million reduction to the gain on the sale of AOL’s U.K. access business, a $16 million gain related to the sale of a
building and a $2 million noncash asset impairment.
(b)
For the year ended December 31, 2008, Operating Loss before Depreciation and Amortization includes a $14.822 billion noncash impairment of cable
franchise rights, a $45 million noncash impairment of certain non-core cable systems and a $13 million loss on the sale of these non-core cable systems.
(c)
For the year ended December 31, 2008, Operating Income before Depreciation and Amortization includes an $18 million noncash impairment of
GameTap, an online video game business, as well as a $3 million loss on the sale of GameTap. For the year ended December 31, 2007, Operating
Income before Depreciation and Amortization includes a $34 million noncash impairment of the Court TV tradename as a result of rebranding the
network’s name to truTV.
(d)
the carrying value of goodwill and intangible assets, a $30 million noncash asset impairment related to the sub-lease with a tenant that filed for
bankruptcy in September 2008, a $21 million noncash impairment of Southern Living At Home, which is held for sale, and a $5 million noncash
impairment related to certain other asset write-offs. For the year ended December 31, 2007, Operating Income before Depreciation and Amortization
includes a $6 million gain on the sale of four non-strategic magazine titles.
(e)
For the year ended December 31, 2008, Operating Loss before Depreciation and Amortization includes $21 million in net expenses related to securities
litigation and government investigations. For the year ended December 31, 2007, Operating Income before Depreciation and Amortization includes
$153 million in legal reserves related to securities litigation and $18 million in net expenses related to securities litigation and government
investigations.
18

19
TIME WARNER INC.
RECONCILIATION OF CASH PROVIDED BY OPERATIONS TO FREE CASH FLOW
2008 2007 2008 2007
Cash provided by operations..................................... $ 2,238 $ 2,319 $ 10,332 $ 8,475
Less cash provided by discontinued operations:
Net income (loss) .................................................... (2) (12) — (336)
Other changes.......................................................... 5 22 14 313
Cash provided by continuing operations................... 2,241 2,329 10,346 8,452
Add payments related to securities litigation and
government investigations ...................................... 8 (7) 21 912
Add excess tax benefits on stock options.................. — 2 3 76
Less capital expenditures and product
development costs................................................... (1,240) (1,330) (4,377) (4,430)
Less principal payments on capital leases................. (12) (12) (43) (57)
Free Cash Flow(a)
....................................................... $ 997 $ 982 $ 5,950 $ 4,953
_________________________
(a)
Free Cash Flow is cash provided by operations (as defined by U.S. generally accepted accounting principles) plus payments related to securities litigation
and government investigations (net of any insurance recoveries) and excess tax benefits from the exercise of stock options, less cash flow attributable to
discontinued operations, capital expenditures and product development costs, principal payments on capital leases, and partnership distributions, if any.

TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
20
Note 1: DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
Description of Business
Time Warner Inc. (“Time Warner” or the “Company”) is a leading media and entertainment company, whose businesses
include interactive services, cable systems, filmed entertainment, television networks and publishing. Time Warner classifies
its operations into five reportable segments: AOL: consisting principally of interactive consumer and advertising services;
Cable: consisting principally of cable systems that provide video, high-speed data and voice services; Filmed Entertainment:
consisting principally of feature film, television and home video production and distribution; Networks: consisting principally
of cable television networks that provide programming; and Publishing: consisting principally of magazine publishing.
Note 2: INTERSEGMENT TRANSACTIONS
In the normal course of business, the Time Warner segments enter into transactions with one another. The most common
types of intersegment transactions include:
The Filmed Entertainment segment generating Content revenues by licensing television and theatrical programming to
the Networks segment;
The Networks segment generating Subscription revenues by selling cable network programming to the Cable segment;
and
The AOL, Cable, Networks and Publishing segments generating Advertising revenues by promoting the products and
services of other Time Warner segments.
These intersegment transactions are recorded by each segment at estimated fair value as if the transactions were with third
parties and, therefore, impact segment performance. While intersegment transactions are treated like third-party transactions
to determine segment performance, the revenues (and corresponding expenses or assets recognized by the segment that is
counterparty to the transaction) are eliminated in consolidation and, therefore, do not impact consolidated results.
Additionally, transactions between divisions within the same reporting segment (e.g., a transaction between HBO and Turner
Broadcasting System, Inc. within the Networks segment) are eliminated in arriving at segment performance and, therefore,
do not impact segment results.
Revenues recognized by Time Warner’s segments on intersegment transactions are as follows (millions):
2008 2007 2008 2007
Intersegment Revenues
AOL............................................................................ $ 3 $ 4 $ 10 $ 20
Cable .......................................................................... 5 5 12 15
Filmed Entertainment ................................................. 133 114 544 583
Networks .................................................................... 236 235 946 916
Publishing................................................................... 7 7 29 27
Total intersegment revenues....................................... $ 384 $ 365 $ 1,541 $ 1,561

TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
21
Note 3: SIGNIFICANT TRANSACTIONS AFFECTING COMPARABILITY
The comparability of Time Warner’s results from continuing operations has been affected by certain significant
transactions and other items in each period as follows (millions):
2008 2007 2008 2007
Amounts related to securities litigation and
government investigations........................................ $ (8) $ (2) $ (21) $ (171)
Asset impairments...................................................... (24,207) — (24,309) (36)
Gain (loss) on disposal of assets, net.......................... (13) 16 (16) 689
Impact on Operating Income (Loss)........................... (24,228) 14 (24,346) 482
Investment gains (losses), net..................................... (406) (77) (426) 211
Costs related to the separation of TWC...................... (108) — (217) —
Share of equity investment gain on disposal of
assets ........................................................................ — — 30 —
Minority interest impacts on certain of the above
items......................................................................... 2,362 (1) 2,386 (58)
Pretax impact.............................................................. (22,380) (64) (22,573) 635
Income tax impact ...................................................... 5,534 (10) 5,597 (340)
Other tax items affecting comparability ..................... (1) 39 (6) 131
After-tax impact ......................................................... $ (16,847) $ (35) $ (16,982) $ 426
Impact of items affecting comparability on
diluted income (loss) per common share from
continuing operations ............................................... $ 4.70 $ 0.01 $ 4.73 $ (0.12)
Diluted average common shares outstanding ............. 3,596.4 3,637.8 3,602.1 3,762.3
Amounts Related to Securities Litigation
The Company recognized legal reserves as well as legal and other professional fees related to the defense of various
securities lawsuits, totaling $8 million and $21 million for the three months and year ended December 31, 2008,
respectively, and $2 million and $180 million for the three months and year ended December 31, 2007, respectively. In
addition, the Company recognized related insurance recoveries of $9 million for the year ended December 31, 2007.
Asset Impairments
During the three months and year ended December 31, 2008, the Company recorded noncash impairments related to
goodwill and intangible assets of $14.822 billion, $7.139 billion and $2.207 billion at the Cable, Publishing and AOL
segments, respectively. During the three months and year ended December 31, 2008, the Company also recorded noncash
impairments of $13 million and $22 million, respectively, related to asset writedowns in connection with facility
consolidations at the AOL segment, as well as $21 million related to Southern Living At Home, which is held for sale, and
$5 million related to certain other asset write-offs at the Publishing segment. In addition, during the year ended December
31, 2008, the Company recorded noncash impairments of $45 million relating to certain non-core cable systems at the
Cable segment, $18 million related to GameTap, an online video game business, at the Networks segment and $30 million
related to a sub-lease with a tenant that filed for bankruptcy in September 2008 at the Publishing segment.
During the year ended December 31, 2007, the Company recorded noncash impairments of $2 million at the AOL segment
related to asset write-offs in connection with facility closures and a $34 million noncash impairment of the Court TV
tradename at the Networks segment as a result of rebranding the network’s name to truTV, effective January 1, 2008.

TIME WARNER INC.
Gain (Loss) on Disposal of Assets, Net
For the three months and year ended December 31, 2008, the Company recorded a $13 million loss on the sale of certain
non-core cable systems at the Cable segment. In addition, for the year ended December 31, 2008, the Company recorded a
$3 million loss on the sale of GameTap at the Networks segment.
For the three months and year ended December 31, 2007, the Company recorded a $16 million gain related to the sale of a
building at the AOL segment. In addition, for the year ended December 31, 2007, the Company recorded a net pretax gain
of $668 million on the sale of AOL’s German access business and a net $1 million reduction to the gain on the sale of
AOL’s U.K. access business at the AOL segment and a $6 million gain on the sale of four non-strategic magazine titles at
the Publishing segment.
Investment Gains (Losses), Net
For the three months and year ended December 31, 2008, the Company recognized net losses of $406 million and $426
million, respectively, primarily related to a $367 million impairment of the Company’s investment in Clearwire
Corporation, an impairment of $12 million and $38 million, respectively, of the Company’s investment in SCi
Entertainment Group plc (“SCi”) and $27 million and $21 million, respectively, of miscellaneous investment losses.
For the three months and year ended December 31, 2007, the Company recognized net losses of $77 million and net gains
of $211 million, respectively, primarily related to a $73 million impairment of the Company’s investment in The CW
Television Network and a $57 million impairment of the Company’s investment in SCi, partially offset by a $56 million
gain on the sale of the Company’s investment in Oxygen Media Corporation. In addition, for the year ended December 31,
2007, the Company also recognized a $100 million gain on the Company’s sale of its 50% interest in Bookspan and a $146
million gain at the Cable segment on Time Warner Cable’s (“TWC”) deemed sale of its 50% interest in the pool of assets
consisting of the Houston cable systems (the “Houston Pool”) in connection with the distribution of the assets of Texas and
Kansas City Cable Partners, L.P. to TWC and Comcast Corporation.
Costs Related to the Separation of TWC
During the three months and year ended December 31, 2008, the Company incurred pretax costs related to the separation of
TWC of $108 million and $217 million, respectively, including direct transaction costs (e.g., legal and professional fees) of
$6 million and $28 million, respectively (which have been reflected in other income (loss), net on the Company’s
consolidated statement of operations), and financing costs of $102 million and $189 million, respectively (which have been
reflected in interest expense, net on the Company’s consolidated statement of operations). For the three months and year
ended December 31, 2008, financing costs included $89 million and $143 million, respectively, in net interest expense on
the $7.0 billion in aggregate principal amount of senior unsecured notes and debentures issued by TWC in June 2008 and
November 2008 in two separate, registered public offerings (the “2008 Cable Bond Offerings”) (after considering the
impact of the use of a portion of the proceeds of such offerings to repay variable-rate debt with lower interest rates and the
investment of the remainder in various short-term investments) and $12 million and $45 million, respectively, of debt
issuance costs, primarily related to the portion of the upfront loan fees for TWC’s $9.0 billion senior unsecured term loan
that was expensed due to the reduction of commitments under such facility as a result of the 2008 Cable Bond Offerings.
Share of Equity Investment Gain on Disposal of Assets
For the year ended December 31, 2008, the Company recognized its $30 million share of a pretax gain on the sale of a
Central European documentary channel of an equity method investee.
Minority Interest Impacts
For the three months and year ended December 31, 2008, expense of $2.362 billion and $2.386 billion, respectively, was
attributed to minority interests associated with items affecting comparability, which primarily reflects the respective
minority owners’ shares of impairments related to goodwill and intangible assets, the costs related to the separation of
TWC and the impairment of certain non-core cable systems.
For the three months and year ended December 31, 2007, income of $1 million and $58 million, respectively, was
attributed to minority interests associated with items affecting comparability, which primarily reflects the respective
22

TIME WARNER INC.
23
minority owners’ shares of the gains on TWC’s deemed sale of the Houston Pool interest and on the sale of AOL’s German
access business.
Income Tax Impact and Other Tax Items Affecting Comparability
The income tax impact reflects the estimated tax or tax benefit associated with each item affecting comparability. Such
estimated taxes or tax benefits vary based on certain factors, including the taxability or deductibility of the items and
foreign tax on certain gains. The Company’s tax provision also includes certain other items affecting comparability. For the
three months and year ended December 31, 2007, these items included $43 million and $125 million, respectively, of tax
benefits related to the realization of tax attribute carryforwards and changes in certain state tax laws.

TIME WARNER INC.
2008 TRENDING SCHEDULES
BASIS OF PRESENTATION
The Company utilizes Operating Income (Loss) before Depreciation and Amortization, among other measures, to evaluate the performance of its businesses. The
Company also evaluates the performance of its businesses using Operating Income (Loss) before Depreciation and Amortization excluding the impact of noncash
impairments of goodwill, intangible and fixed assets, as well as gains and losses on asset sales, and amounts related to securities litigation and government investigations
(referred to herein as Adjusted Operating Income (Loss) before Depreciation and Amortization). Both Operating Income (Loss) before Depreciation and Amortization and
Adjusted Operating Income (Loss) before Depreciation and Amortization are considered important indicators of the operational strength of the Company's businesses.
Operating Income (Loss) before Depreciation and Amortization eliminates the uneven effect across all business segments of considerable amounts of noncash
depreciation of tangible assets and amortization of certain intangible assets that were primarily recognized in business combinations. A limitation of this measure, however,
is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the Company's businesses. Moreover,
Adjusted Operating Income (Loss) before Depreciation and Amortization does not reflect gains and losses on asset sales or amounts related to securities litigation and
government investigations or any impairment charge related to goodwill, intangible assets and fixed assets. Management evaluates the investments in such tangible and
intangible assets through other financial measures, such as capital expenditure budgets, investment spending levels and return on capital.
Free Cash Flow is Cash Provided by Operations (as defined by U.S. generally accepted accounting principles) plus payments related to securities litigation and
government investigations (net of any insurance recoveries) and excess tax benefits from the exercise of stock options, less cash flow attributable to discontinued
operations, capital expenditures and product development costs, principal payments on capital leases and partnership distributions, if any. The Company uses Free Cash
Flow to evaluate its businesses and this measure is considered an important indicator of the Company's liquidity, including its ability to reduce net debt, make strategic
investments, pay dividends to common shareholders and repurchase stock. A limitation of this measure, however, is that it does not reflect payments made in connection
with the securities litigation and government investigations, which reduce liquidity.
Operating Income (Loss) before Depreciation and Amortization, Adjusted Operating Income (Loss) before Depreciation and Amortization and Free Cash Flow should be
considered in addition to, not as a substitute for, the Company's Operating Income (Loss), Net Income (Loss) and various cash flow measures (e.g., Cash Provided by
Operations), as well as other measures of financial performance and liquidity reported in accordance with U.S. generally accepted accounting principles.

SCHEDULE 1
Growth Growth Growth Growth Growth
2006 2007 2008 2008 2006 2007 2008 2008 2006 2007 2008 2008 2006 2007 2008 2008 2006 2007 2008 2008
Revenues:
AOL 1,957$ 1,458$ 1,128$ -23% 2,027$ 1,253$ 1,057$ -16% 1,964$ 1,219$ 1,012$ -17% 1,838$ 1,251$ 968$ -23% 7,786$ 5,181$ 4,165$ -20%
Cable 2,385 3,851 4,160 8% 2,522 4,014 4,298 7% 3,209 4,001 4,340 8% 3,651 4,089 4,402 8% 11,767 15,955 17,200 8%
Filmed Entertainment 2,779 2,743 2,840 4% 2,363 2,253 2,564 14% 2,390 3,178 2,881 -9% 3,093 3,508 3,113 -11% 10,625 11,682 11,398 -2%
Networks 2,410 2,410 2,659 10% 2,625 2,601 2,826 9% 2,409 2,555 2,731 7% 2,669 2,704 2,938 9% 10,113 10,270 11,154 9%
Publishing 1,063 1,048 1,045 0% 1,252 1,253 1,176 -6% 1,195 1,199 1,118 -7% 1,442 1,455 1,269 -13% 4,952 4,955 4,608 -7%
Intersegment elimination (356) (326) (415) -27% (428) (394) (366) 7% (417) (476) (376) 21% (352) (365) (384) -5% (1,553) (1,561) (1,541) 1%
Total revenues 10,238$ 11,184$ 11,417$ 2% 10,361$ 10,980$ 11,555$ 5% 10,750$ 11,676$ 11,706$ NM 12,341$ 12,642$ 12,306$ -3% 43,690$ 46,482$ 46,984$ 1%
Operating Income (Loss) Before Depreciation and Amortizatio(1)
AOL 429$ 1,211$ 405$ -67% 494$ 484$ 350$ -28% 554$ 425$ 389$ -8% 1,051$ 397$ (1,815)$ NM 2,528$ 2,517$ (671)$ NM
Cable 851 1,307 1,402 7% 950 1,444 1,525 6% 1,119 1,428 1,554 9% 1,309 1,563 (13,175) NM 4,229 5,742 (8,694) NM
Filmed Entertainment 457 332 280 -16% 229 174 196 13% 210 359 381 6% 240 350 371 6% 1,136 1,215 1,228 1%
Networks 882 937 958 2% 681 712 842 18% 585 830 1,005 21% 865 857 682 -20% 3,013 3,336 3,487 5%
Publishing 117 84 145 73% 269 302 269 -11% 265 304 211 -31% 406 414 (7,041) NM 1,057 1,104 (6,416) NM
Corporate (126) (268) (103) 62% (126) (93) (81) 13% (126) (89) (73) 18% (718) (100) (79) 21% (1,096) (550) (336) 39%
Intersegment elimination 8 15 (9) -160% 14 (1) 8 NM (14) (17) 19 212% (22) - 17 NM (14) (3) 35 NM
Operating Income (Loss) Before Depreciation and Amortization 2,618 3,618 3,078 -15% 2,511 3,022 3,109 3% 2,593 3,240 3,486 8% 3,131 3,481 (21,040) NM 10,853 13,361 (11,367) NM
Depreciation (649) (901) (948) -5% (653) (928) (969) -4% (783) (943) (944) NM (878) (966) (945) 2% (2,963) (3,738) (3,806) -2%
Amortization of intangible assets (129) (177) (183) -3% (127) (158) (194) -23% (163) (167) (206) -23% (168) (172) (201) -17% (587) (674) (784) -16%
Operating income (loss) 1,840 2,540 1,947 -23% 1,731 1,936 1,946 1% 1,647 2,130 2,336 10% 2,085 2,343 (22,186) NM 7,303 8,949 (15,957) NM
Interest expense, net (299) (551) (546) 1% (336) (574) (550) 4% (479) (589) (550) 7% (560) (585) (604) -3% (1,674) (2,299) (2,250) 2%
Other income (expense), net 311 125 (48) -138% 47 108 (5) -105% 711 (2) 31 NM 58 (86) (394) NM 1,127 145 (416) NM
Minority interest income (expense), net (71) (130) (83) 36% (105) (91) (87) 4% (89) (84) (96) -14% (110) (103) 2,240 NM (375) (408) 1,974 NM
Income (loss) from continuing operations before income taxes 1,781 1,984 1,270 -36% 1,337 1,379 1,304 -5% 1,790 1,455 1,721 18% 1,473 1,569 (20,944) NM 6,381 6,387 (16,649) NM
Income tax benefit (provision) (598) (797) (499) 37% (505) (434) (509) -17% (443) (555) (655) -18% 238 (550) 4,910 NM (1,308) (2,336) 3,247 239%
Income (loss) from continuing operations 1,183 1,187 771 -35% 832 945 795 -16% 1,347 900 1,066 18% 1,711 1,019 (16,034) NM 5,073 4,051 (13,402) NM
Discontinued operations, net of tax 255 16 - NM 182 122 (3) NM 975 186 1 NM 42 12 2 -83% 1,454 336 - NM
Income (loss) before cumulative effect of accounting change 1,438 1,203 771 -36% 1,014 1,067 792 -26% 2,322 1,086 1,067 -2% 1,753 1,031 (16,032) NM 6,527 4,387 (13,402) NM
Cumulative effect of accounting change, net of tax 25 - - NM - - - NM - - - NM - - - NM 25 - - NM
Net income (loss) 1,463$ 1,203$ 771$ -36% 1,014$ 1,067$ 792$ -26% 2,322$ 1,086$ 1,067$ -2% 1,753$ 1,031$ (16,032)$ NM 6,552$ 4,387$ (13,402)$ NM
Basic income (loss) per common share from continuing operations 0.26$ 0.31$ 0.22$ -29% 0.20$ 0.25$ 0.22$ -12% 0.33$ 0.24$ 0.30$ 25% 0.43$ 0.28$ (4.47)$ NM 1.21$ 1.09$ (3.74)$ NM
Basic net income (loss) per common share 0.33$ 0.31$ 0.22$ -29% 0.24$ 0.28$ 0.22$ -21% 0.57$ 0.30$ 0.30$ NM 0.44$ 0.29$ (4.47)$ NM 1.57$ 1.18$ (3.74)$ NM
Diluted income (loss) per common share from continuing operations 0.26$ 0.30$ 0.21$ -30% 0.20$ 0.25$ 0.22$ -12% 0.33$ 0.24$ 0.30$ 25% 0.43$ 0.28$ (4.47)$ NM 1.20$ 1.08$ (3.74)$ NM
Diluted net income (loss) per common share 0.32$ 0.31$ 0.21$ -32% 0.24$ 0.28$ 0.22$ -21% 0.57$ 0.29$ 0.30$ 3% 0.44$ 0.28$ (4.47)$ NM 1.55$ 1.17$ (3.74)$ NM
Average basic common shares outstanding 4,499.5 3,839.5 3,579.1 -7% 4,227.9 3,756.7 3,579.8 -5% 4,048.8 3,673.7 3,584.4 -2% 3,954.0 3,605.8 3,587.4 -1% 4,182.5 3,718.9 3,582.6 -4%
Average diluted common shares outstanding 4,542.9 3,892.6 3,600.7 -7% 4,266.2 3,807.1 3,603.0 -5% 4,084.4 3,714.3 3,606.1 -3% 4,005.8 3,637.8 3,587.4 -1% 4,224.8 3,762.3 3,582.6 -5%
(1)
See reconciliation of Operating Income (Loss) Before Depreciation and Amortization by segment to Operating Income (Loss) by segment - Schedule 3.
(Unaudited)
YEARS ENDED
DECEMBER 31,DECEMBER 31,
THREE MONTHS ENDED
MARCH 31, JUNE 30, SEPTEMBER 30,
TIME WARNER INC.
BUSINESS SEGMENT RESULTS & CONSOLIDATED STATEMENT OF OPERATIONS
(In millions; except per share amounts)

SCHEDULE 2
2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008
AOL
Subscription 1,538$ 873$ 539$ 1,546$ 691$ 491$ 1,455$ 635$ 470$ 1,245$ 589$ 429$ 5,784$ 2,788$ 1,929$
Advertising 392 549 552 449 522 530 479 540 507 566 620 507 1,886 2,231 2,096
Other 27 36 37 32 40 36 30 44 35 27 42 32 116 162 140
Total 1,957$ 1,458$ 1,128$ 2,027$ 1,253$ 1,057$ 1,964$ 1,219$ 1,012$ 1,838$ 1,251$ 968$ 7,786$ 5,181$ 4,165$
Cable
Subscription 2,276$ 3,662$ 3,963$ 2,389$ 3,788$ 4,065$ 3,031$ 3,780$ 4,116$ 3,407$ 3,858$ 4,158$ 11,103$ 15,088$ 16,302$
Advertising 109 189 197 133 226 233 178 221 224 244 231 244 664 867 898
Total 2,385$ 3,851$ 4,160$ 2,522$ 4,014$ 4,298$ 3,209$ 4,001$ 4,340$ 3,651$ 4,089$ 4,402$ 11,767$ 15,955$ 17,200$
Filmed Entertainment
Subscription -$ 7$ 10$ -$ 7$ 10$ -$ 8$ 10$ 14$ 8$ 9$ 14$ 30$ 39$
Advertising - 5 15 1 13 22 10 12 20 12 18 31 23 48 88
Content 2,709 2,663 2,753 2,296 2,179 2,484 2,311 3,100 2,797 2,998 3,413 2,996 10,314 11,355 11,030
Other 70 68 62 66 54 48 69 58 54 69 69 77 274 249 241
Total 2,779$ 2,743$ 2,840$ 2,363$ 2,253$ 2,564$ 2,390$ 3,178$ 2,881$ 3,093$ 3,508$ 3,113$ 10,625$ 11,682$ 11,398$
Networks
Subscription 1,462$ 1,545$ 1,695$ 1,490$ 1,561$ 1,719$ 1,460$ 1,566$ 1,722$ 1,456$ 1,586$ 1,699$ 5,868$ 6,258$ 6,835$
Advertising 743 655 739 915 817 906 731 709 772 774 877 942 3,163 3,058 3,359
Content 194 200 213 206 212 189 204 270 224 420 227 274 1,024 909 900
Other 11 10 12 14 11 12 14 10 13 19 14 23 58 45 60
Total 2,410$ 2,410$ 2,659$ 2,625$ 2,601$ 2,826$ 2,409$ 2,555$ 2,731$ 2,669$ 2,704$ 2,938$ 10,113$ 10,270$ 11,154$
Publishing
Subscription
(1)
361$ 356$ 365$ 385$ 383$ 387$ 393$ 385$ 382$ 425$ 427$ 389$ 1,564$ 1,551$ 1,523$
Advertising 538 554 550 708 714 648 635 636 585 782 794 636 2,663 2,698 2,419
Content 11 13 12 10 13 12 14 13 16 15 14 23 50 53 63
Other 153 125 118 149 143 129 153 165 135 220 220 221 675 653 603
Total 1,063$ 1,048$ 1,045$ 1,252$ 1,253$ 1,176$ 1,195$ 1,199$ 1,118$ 1,442$ 1,455$ 1,269$ 4,952$ 4,955$ 4,608$
Intersegment elimination
Subscription (143)$ (204)$ (212)$ (142)$ (201)$ (210)$ (203)$ (204)$ (210)$ (194)$ (202)$ (210)$ (682)$ (811)$ (842)$
Advertising (33) (20) (29) (33) (24) (28) (30) (23) (30) (20) (36) (31) (116) (103) (118)
Content (168) (97) (170) (243) (161) (122) (180) (242) (131) (127) (109) (138) (718) (609) (561)
Other (12) (5) (4) (10) (8) (6) (4) (7) (5) (11) (18) (5) (37) (38) (20)
Total (356)$ (326)$ (415)$ (428)$ (394)$ (366)$ (417)$ (476)$ (376)$ (352)$ (365)$ (384)$ (1,553)$ (1,561)$ (1,541)$
Time Warner
Subscription 5,494$ 6,239$ 6,360$ 5,668$ 6,229$ 6,462$ 6,136$ 6,170$ 6,490$ 6,353$ 6,266$ 6,474$ 23,651$ 24,904$ 25,786$
Advertising 1,749 1,932 2,024 2,173 2,268 2,311 2,003 2,095 2,078 2,358 2,504 2,329 8,283 8,799 8,742
Content 2,746 2,779 2,808 2,269 2,243 2,563 2,349 3,141 2,906 3,306 3,545 3,155 10,670 11,708 11,432
Other 249 234 225 251 240 219 262 270 232 324 327 348 1,086 1,071 1,024
Total 10,238$ 11,184$ 11,417$ 10,361$ 10,980$ 11,555$ 10,750$ 11,676$ 11,706$ 12,341$ 12,642$ 12,306$ 43,690$ 46,482$ 46,984$
(1)
Subscription revenues at the Publishing Division include revenues from newsstand circulation.
THREE MONTHS ENDED YEARS ENDED
MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31, DECEMBER 31,
TIME WARNER INC.
REVENUES
(In millions; Unaudited)

time warner 4Q08 Earnings Package

time warner 4Q08 Earnings Package

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time warner 4Q08 Earnings Package