Viacom (VIAWE) 10-K 11 Feb 10 2009 FY Annual report Financial data

CONSOLIDATED STATEMENTS OF EARN

CONSOLIDATED STATEMENTS OF EARNINGS (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
CONSOLIDATED STATEMENTS OF EARNINGS
Revenues	$13,619	$14,625	$13,423
Expenses:
Operating	7,587	8,787	7,431
Selling, general and administrative	2,737	2,910	2,663
Depreciation and amortization	391	405	393
Total expenses	10,715	12,102	10,487
Operating income	2,904	2,523	2,936
Interest expense, net	(430)	(482)	(464)
Gain on sale of equity investment	0	0	151
Equity in net losses of investee companies	(77)	(74)	0
Loss on extinguishment of debt	(84)	0	0
Other items, net	(37)	(112)	(43)
Earnings from continuing operations before provision for income taxes	2,276	1,855	2,580
Provision for income taxes	(708)	(605)	(929)
Net earnings from continuing operations	1,568	1,250	1,651
Discontinued operations, net of tax	20	18	208
Net earnings (Viacom and noncontrolling interests)	1,588	1,268	1,859
Net losses (earnings) attributable to noncontrolling interests	23	(17)	(21)
Net earnings attributable to Viacom	1,611	1,251	1,838
Amounts attributable to Viacom:
Net earnings from continuing operations	1,591	1,233	1,630
Discontinued operations, net of tax	20	18	208
Net earnings attributable to Viacom	$1,611	$1,251	$1,838
Basic earnings per share attributable to Viacom:
Continuing operations	2.62	1.97	2.42
Discontinued operations	0.03	0.03	0.31
Net earnings per share of Viacom	2.65	2	2.73
Diluted earnings per share attributable to Viacom:
Continuing operations	2.62	1.97	2.41
Discontinued operations	0.03	0.03	0.31
Net earnings per share of Viacom	2.65	2	2.72
Weighted average number of common shares outstanding:
Weighted average number of common shares outstanding, basic	607.1	624.7	674.1
Weighted average number of common shares outstanding, diluted	608.3	625.4	675.6

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008
Current assets:
Cash and cash equivalents	$298	$792
Receivables, net (including retained interests in securitizations - see Note 8)	2,881	2,271
Inventory, net	779	881
Deferred tax assets, net	147	203
Prepaid and other assets	325	355
Total current assets	4,430	4,502
Property and equipment, net	1,179	1,145
Inventory net	3,731	4,133
Goodwill	11,401	11,470
Intangibles, net	570	674
Other assets	589	563
Total assets	21,900	22,487
Current liabilities:
Accounts payable	248	574
Accrued expenses	1,169	1,304
Participants' share and residuals	1,090	1,537
Program rights obligations	404	384
Deferred revenue	323	442
Current portion of debt	123	105
Other liabilities	394	496
Total current liabilities	3,751	4,842
Noncurrent portion of debt	6,650	7,897
Participants' share and residuals, noncurrent	739	488
Program rights obligations, noncurrent	523	621
Deferred tax liabilities, net	89	12
Other liabilities, non-current	1,303	1,556
Redeemable noncontrolling interest	168	148
Commitments and contingencies (Note 16)	-	-
Viacom Stockholders' equity:
Additional paid-in-capital	8,287	8,186
Treasury stock	5,725	5,725
Accumulated other comprehensive income (loss)	35	(49)
Retained earnings	6,106	4,496
Total Viacom stockholders' equity	8,704	6,909
Noncontrolling interests	(27)	14
Total equity	8,677	6,923
Total liabilities and equity	21,900	22,487
Common stock, Class A
Viacom Stockholders' equity:
Common stock, value	0	0
Common stock, par value	0.001	0.001
Common stock, authorized	375	375
Common stock, outstanding	52.4	57.4
Common stock, Class B
Viacom Stockholders' equity:
Common stock, value	1	1
Common stock, par value	0.001	0.001
Common stock, authorized	5,000	5,000
Common stock, outstanding	555	549.4
Common Stock/APIC
Viacom Stockholders' equity:
Total equity	8,288	8,187
Treasury Stock
Viacom Stockholders' equity:
Treasury stock held	151.5	151.5
Total equity	(5,725)	(5,725)
Retained Earnings
Viacom Stockholders' equity:
Total equity	6,106	4,496
Accumulated Other Comprehensive Income (Loss)
Viacom Stockholders' equity:
Total equity	35	(49)
Total Viacom Stockholders Equity
Viacom Stockholders' equity:
Total equity	8,704	6,909
Noncontrolling Interests
Viacom Stockholders' equity:
Total equity	($27)	$14

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
OPERATING ACTIVITIES
Net earnings (Viacom and noncontrolling interests)	$1,588	$1,268	$1,859
Discontinued operations, net of tax	(20)	(18)	(208)
Net earnings from continuing operations	1,568	1,250	1,651
Reconciling items:
Depreciation and amortization	391	405	393
Feature film and program amortization	4,346	4,808	3,747
Stock based compensation	102	99	86
Gain on sale of equity investment	0	0	(151)
Equity in investee companies, net of distributions	86	103	26
Provision for deferred taxes	87	14	33
Decrease in securitization program	(950)	0	0
Operating assets and liabilities, net of acquisitions:
Receivables	208	279	(329)
Inventory, program rights and participations	(4,048)	(4,731)	(3,809)
Accounts payable and other current liabilities	(520)	(278)	(36)
Other, net	(119)	74	156
Discontinued operations, net	0	13	9
Cash provided by operations	1,151	2,036	1,776
INVESTING ACTIVITIES
Acquisitions and investments, net	(133)	(296)	(70)
Business dispositions	0	0	194
Capital expenditures	(141)	(288)	(237)
Discontinued operations, net	0	13	361
Net cash flow (used in) provided by investing activities	(274)	(571)	248
FINANCING ACTIVITIES
Borrowings from banks	4,075	2,845	750
Repayments to banks	(4,725)	(2,945)	0
Issuance of senior notes and debentures, net of discount	1,387	0	745
Repayment of senior notes	(2,056)	0	0
Commercial paper	16	(56)	(1,038)
Payment of other financing obligations	(65)	(124)	(81)
Special Dividend to Former Viacom	0	0	(170)
Purchase of treasury stock	(8)	(1,266)	(2,134)
Distributions to noncontrolling interests	(13)	(13)	(16)
Exercise of stock options and other, net	1	4	113
Net cash flow used in financing activities	(1,388)	(1,555)	(1,831)
Effect of exchange rate changes on cash and cash equivalents	17	(38)	21
Net change in cash and cash equivalents	(494)	(128)	214
Cash and cash equivalents at beginning of period	792	920	706
Cash and cash equivalents at end of period	$298	$792	$920

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME (USD $)
In Millions	Common Stock Issued & held in treasury	Common Stock/APIC	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total Viacom Stockholders Equity	Noncontrolling Interests	Total
Shares issued, at beginning of period at Dec. 31, 2006	693.2
Equity, at beginning of period at Dec. 31, 2006		$7,873	($2,345)	$1,592	$46	$7,166	$0	$7,166
Adoption of guidance for redeemable securities				(194)	(10)	(204)	5	(199)
Equity, restated (post adoption of redeemable securities guidance)		7,873	(2,345)	1,398	36	6,962	5	6,967
Net earnings				1,838		1,838	21	1,859
Translation adjustments					67	67	2	69
Unrealized gain (loss) on securities					(3)	(3)		(3)
Cash flow hedges					(2)	(2)		(2)
Defined benefit pension plans					16	16		16
Comprehensive income						1,916	23	1,939
Reclassifications to redeemable noncontrolling interest							(14)	(14)
Change in redemption value of put option				6		6		6
Acquisition of additional shares in noncontrolling interest							(1)	(1)
Dividends to noncontrolling interests							(5)	(5)
Stock based compensation		97				97		97
Exercise of stock options, and other, value		110				110		110
Exercise of stock options, and other, shares	4.1
Purchase of treasury stock, value			(2,157)			(2,157)		(2,157)
Purchase of treasury stock, shares	-52.5
Adoption of accounting for uncertainty in income taxes				(23)		(23)		(23)
Equity, at end of period at Dec. 31, 2007		8,080	(4,502)	3,219	114	6,911	8	6,919
Shares issued, at end of period at Dec. 31, 2007	644.8
Net earnings				1,251		1,251	17	1,268
Translation adjustments					(40)	(40)	(14)	(54)
Unrealized gain (loss) on securities					0	0		0
Cash flow hedges					(4)	(4)		(4)
Defined benefit pension plans					(119)	(119)		(119)
Comprehensive income						1,088	3	1,091
Reclassifications to redeemable noncontrolling interest							(3)	(3)
Change in redemption value of put option				26		26		26
Acquisition of additional shares in noncontrolling interest							11	11
Dividends to noncontrolling interests							(5)	(5)
Stock based compensation		113				113		113
Exercise of stock options, and other, value		(6)				(6)		(6)
Exercise of stock options, and other, shares	0.7
Purchase of treasury stock, value		(1,223)				(1,223)		(1,223)
Purchase of treasury stock, shares	-38.7
Equity, at end of period at Dec. 31, 2008		8,187	(5,725)	4,496	(49)	6,909	14	6,923
Shares issued, at end of period at Dec. 31, 2008	606.8
Net earnings				1,611		1,611	(23)	1,588
Translation adjustments					32	32	(1)	31
Unrealized gain (loss) on securities					5	5		5
Cash flow hedges					(5)	(5)		(5)
Defined benefit pension plans					52	52		52
Comprehensive income						1,695	(24)	1,671
Reclassifications to redeemable noncontrolling interest							(13)	(13)
Change in redemption value of put option				(1)		(1)		(1)
Dividends to noncontrolling interests							4	4
Stock based compensation		113				113		113
Exercise of stock options, and other, value		(12)				(12)		(12)
Exercise of stock options, and other, shares	0.6
Equity, at end of period at Dec. 31, 2009		$8,288	($5,725)	$6,106	$35	$8,704	($27)	$8,677
Shares issued, at end of period at Dec. 31, 2009	607.4

Description of Business and Bas

Description of Business and Basis of Presentation
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements Abstract
Description of Business and Basis of Presentation	VIACOM INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Description of BusinessViacom Inc. including its consolidated subsidiaries (Viacom or the Company) is a leading global entertainment content company, engaging audiences on television, motion picture, Internet, mobile and video game platforms through many of the worlds best known entertainment brands. Viacom operates through two reporting segments: Media Networks, which includes MTV Networks (MTVN) and BET Networks (BETN); and Filmed Entertainment. The Media Networks segment provides entertainment content for consumers in key demographics attractive to advertisers, content distributors and retailers. The Filmed Entertainment segment produces, finances and distributes motion pictures and other entertainment content under the Paramount Pictures, Paramount Vantage, Paramount Classics, MTV Films and Nickelodeon Movies brands. The Filmed Entertainment segment also continues to release certain pictures under the DreamWorks brand. It also acquires films for distribution and has distribution relationships with third parties.Basis of PresentationAccounting ChangesNoncontrolling InterestsIn December 2007, the Financial Accounting Standards Board (the FASB) issued new guidance which establishes and provides accounting and reporting standards for the noncontrolling interest in a consolidated subsidiary and for the deconsolidation of a subsidiary. The Company has adopted the provisions under this guidance beginning January1, 2009, via retrospective application of the presentation and disclosure requirements. The retrospective impact of applying this guidance was the reclassification of $5 million from mezzanine equity to noncontrolling interests as of December 31, 2006.In conjunction with its adoption of the new guidance for noncontrolling interests, the Company adopted the guidance for redeemable securities. The redeemable security guidance is applicable to all noncontrolling interests where the Company is subject to a put option under which it may be required to repurchase an interest in a consolidated subsidiary from the noncontrolling interest holder. The Company is currently subject to a redeemable put option for an international subsidiary payable in a foreign currency which expires in 2011. At December 31, 2009 and 2008, the redemption value of the put was approximately $168 million and $148 million, respectively, and is reflected in the Consolidated Balance Sheets as Redeemable noncontrolling interest. The retrospective impact of applying this guidance was a reduction to opening Retained earnings of $194 million and a reduction to Accumulated other comprehensive income (loss) in the Consolidated Balance Sheet of $10 million as of December 31, 2006. See Note 17 for additional information on the activity related to the redeemable noncontrolling interest.Accounting for Uncertainty in Income TaxesIn July2006, the FASB issued additional guidance which clarifies the accounting for uncertainty in income taxes recognized in the Companys financial statements. The revised guidance also prescribes a recognition threshold and measurement model f

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements Abstract
Summary of Significant Accounting Policies	VIACOM INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued) NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of ConsolidationThe consolidated financial statements of the Company include the accounts of Viacom Inc., its subsidiaries and variable interest entities (VIEs) where the Company is considered the primary beneficiary, after elimination of intercompany accounts and transactions. Disclosure regarding the Companys participation in VIEs is included in Note 3. Investments in business entities in which the Company lacks control but does have the ability to exercise significant influence over operating and financial policies are accounted for using the equity method. The Companys proportionate share of net income or loss of the entity is recorded in Equity in net losses of investee companies in the Consolidated Statements of Earnings. Related party transactions between the Company and CBS Corporation, National Amusements Inc. (NAI) and Midway Games, Inc. (Midway) have not been eliminated.Revenue RecognitionThe Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when it has persuasive evidence of an arrangement, delivery has occurred, the sales price is fixed and determinable, and collectibility is reasonably assured. Determining whether some or all of these criteria have been met involves assumptions and judgments, including the evaluation of multiple element arrangements, that can have a significant impact on the timing and amount of revenue the Company reports.Advertising RevenuesAdvertising revenue earned by the Media Networks segment is recognized, net of agency commissions, when the advertisement is aired and the contracted audience rating is met. Should the advertisement fail to meet the contracted audience rating, the Company establishes a liability referred to as an audience deficiency unit liability. The liability is typically relieved when the audience rating is met through the provision of additional air time for the advertiser.Feature Film RevenuesRevenue is recognized from theatrical distribution of motion pictures upon exhibition. For home entertainment product revenue, including sales to wholesalers and retailers, revenue is recognized upon the later of delivery or the date that those products are made widely available for sale by retailers. Revenue from the licensing of feature films and original programming for exhibition in television markets is recognized upon availability for airing by the licensee. Revenue for video-on-demand and similar pay-per-view arrangements are recognized as the feature films are exhibited based on end-customer purchases as reported by the distributor.Affiliate FeesAffiliate fees are recognized by the Media Networks segment as the service is provided to cable television operators, direct-to-home satellite operators and other distributors.Ancillary RevenuesVideo game product revenues are evaluated under software revenue recognition guidance. Where a video game provides limited online features at no additional cost to the consumer, the Company generally considers such features to be incidental t

Aquisitions and Investments

Aquisitions and Investments
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements Abstract
Acquisitions and Investments	NOTE 3. ACQUISITIONS INVESTMENTSIn 2009, 2008 and 2007, the Company invested $133 million, $296 million and $70 million, respectively, in acquisitions and investments. In October 2009, the Company acquired the global rights to the Teenage Mutant Ninja Turtles for $64 million. Included in the 2008 amount is $150 million for an earn-out payment, subject to adjustment, related to the Companys acquisition of Harmonix Music Systems Inc. (Harmonix). The acquisition agreement provided that to the extent financial results exceeded specific contractual targets against a defined gross profit metric through 2008, former Harmonix shareholders are eligible for incremental earn-out payments with respect to the years ended December31, 2007 and December31, 2008. See Note 16 for additional information.The pro forma impact of business combinations completed during each of the years ended December31, 2009, 2008 and 2007, either individually or in the aggregate, were not material to the Company.At December31, 2009 and 2008, the Company had equity method investments totaling $186 million and $238 million, respectively. The Company holds an equity interest in EPIX, a joint venture formed with Lionsgate and Metro-Goldwyn Mayer in April 2008 to exhibit certain motion pictures on behalf of the equity partners' movie studios through a new premium pay television channel, video-on-demand service and Internet site, of approximately 50%. In November 2007, the Company established a joint venture (Viacom 18) with Network18 Fincap Limited (Network18), a leading entertainment and media company in India, through the Companys contribution of its existing MTV Networks India operations, with cash and other consideration contributed to the venture by Network18. In August 2007, the Company contributed a $230 million non-interest bearing note payable and certain assets related to MTVs URGE digital music service for a 49% stake in Rhapsody America LLC (Rhapsody), a newly formed venture with RealNetworks, Inc.During 2007, the Company sold its non-controlling investment in MTV Russia, an international equity affiliate, for $191 million and recognized a pre-tax gain on the sale of $151 million.Variable Interest EntitiesIn the normal course of business, the Company enters into joint ventures or makes investments with business partners that support its underlying business strategy and provide it the ability to enter new markets to expand the reach of its brands, develop new programming and/or distribute its existing content. In certain instances, an entity in which the Company makes an investment may qualify as a variable interest entity. In determining whether the Company is the primary beneficiary of those VIEs, it considers quantitative and qualitative factors as further described below.Unconsolidated Variable Interest EntitiesThe Company has a number of unconsolidated investments in which it holds a non-controlling ownership interest, including but not limited to Rhapsody, EPIX and Viacom 18. These arrangements are typically entered into with strategic partners and generally contain the following governance provisions: (i)the funding of the venture is provided by the equity holder

Goodwill and Intangibles

Goodwill and Intangibles
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements Abstract
Goodwill and Intangibles	NOTE 4. GOODWILL AND INTANGIBLESGoodwillFor the years ended December 31, 2009 and 2008, the changes in the book value of goodwill by segment were as follows: Goodwill Media Filmed (in millions) Networks Entertainment Total Balance at December 31, 2007 $ 9,781 $ 1,594 $ 11,375 Additions 21 31 52 Purchase price adjustments 40 40 Foreign currency translation 3 3 Balance at December 31, 2008 9,845 1,625 11,470 Additions - - - Purchase price adjustments (87) - (87) Foreign currency translation 18 - 18 Balance at December 31, 2009 $ 9,776 $ 1,625 $ 11,401 Intangibles The following table details the Companys intangible asset balances by major asset classes: Intangibles December 31, (in millions) 2009 2008 Finite lived intangible assets: Subscriber agreements $ 61 $ 61 Film distribution and fulfillment services 344 344 Other intangible assets 411 359 Total finite lived intangible assets 816 764 Accumulated amortization on finite lived intangible assets : Subscriber agreements (20) (16) Film distribution and fulfillment services (184) (136) Other intangible assets (199) (151) Total accumulated amortization on finite lived intangible assets : (403) (303) Finite lived intangible assets, net $ 413 $ 461 Trademarks and other, indefinite lived 157 213 Total intangibles, net $ 570 $ 674 Amortization expense relating to intangible assets was $165 million, $141 million and $143million in 2009, 2008 and 2007, respectively. The Company expects its aggregate annual amortization expense for existing intangible assets subject to amortization at December 31, 2009 to be as follows for each of the next five years: Amortization of Intangibles (in millions) 2010 2011 2012 2013 2014 Amortization expense $ 102 $ 84 $ 59 $ 53 $ 18

Inventory

Inventory
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements Abstract
Inventory	NOTE 5. INVENTORY Inventory December 31, (in millions) 2009 2008 Film inventory: Released, net of amortization $ 770 $ 840 Completed, not yet released 173 263 In process and other 467 826 Total film inventory, net of amortization 1,410 1,929 Original programming: Released, net of amortization 956 844 Completed, not yet released 6 - In process and other 451 409 Total original programming, net of amortization 1,413 1,253 Acquired program rights, net of amortization 1,504 1,474 Merchandise and other inventory, net of allowance of $108 and $119 183 358 Total inventory, net 4,510 5,014 Less current portion of inventory, net (779) (881) Total inventory-noncurrent, net $ 3,731 $ 4,133 The Company expects to amortize approximately $868 million of original programming and film inventory, including released and completed, not yet released during the year ending December31, 2010 using the individual-film-forecast-computation method. In addition, the Company expects to amortize 80% of unamortized released original programming and film inventory, excluding acquired film libraries, at December 31, 2009 within the next three years. As of December 31, 2009, unamortized film libraries of approximately $57 million remain to be amortized on a straight-line basis over an average remaining life of four years.

Debt

Debt
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements Abstract
Debt	NOTE 6. DEBT Total debt of the Company consists of the following: Debt December 31, (in millions) 2009 2008 Senior Notes and Debentures: Senior notes due 2009 $ - $ 750 Senior notes due 2011, 5.750% 193 1,496 Senior notes due 2014, 4.375% 596 - Senior notes due 2015, 4.250% 250 - Senior notes due 2016, 6.250% 1,496 1,495 Senior notes due 2017, 6.125% 497 497 Senior notes due 2019, 5.625% 554 - Senior debentures due 2036, 6.875% 1,735 1,734 Senior debentures due 2037, 6.750% 248 248 Senior notes due 2055, 6.850% 750 750 Commercial paper 16 - Credit facility - 650 Capital lease and other obligations 438 382 Total debt 6,773 8,002 Less current portion (123) (105) Total non-current portion $ 6,650 $ 7,897 Senior Notes and DebenturesIn the third quarter of 2009 the Company issued a total of $1.4 billion of senior notes with maturities of five, six and ten years and used the proceeds to repurchase a substantial portion of its shorter term 5.75% Senior Notes due 2011 as further described below.In August 2009, the Company issued $600 million aggregate principal amount of 4.375% Senior Notes due 2014 at a price equal to 99.291% of the principal amount, and $250 million aggregate principal amount of 5.625% Senior Notes due 2019 at a price equal to 99.247% of the principal amount. In September 2009, the Company issued $250 million aggregate principal amount of 4.250% Senior Notes due 2015 at a price equal to 99.814% of the principal amount, and an additional $300 million aggregate principal amount of its 5.625% Senior Notes due 2019 at a price equal to 101.938% of the principal amount.The Company used the net cash proceeds from these offerings of $1.393 billion to conduct a cash tender offer to repurchase any and all of the aggregate principal of its $1.5 billion 5.75% Senior Notes due 2011 at a purchase price of $1,061.25 per $1,000 of principal. The Companys repurchase of $1.307 billion of principal pursuant to the tender offer resulted in a pre-tax extinguishment loss of $84 million. At December 31, 2009, $193 million of principal remains outstanding on the 5.75% Senior Notes due 2011.In 2009, the Company also repurchased in the open market or paid off at maturity its $750 million of Senior Notes due June 16, 2009.In October 2007, the Company sold $500 million aggregate principal amount of 6.125% Senior Notes due 2017 at a price equal to 99.286% of the principal amount, and $250 million aggregate principal amount of 6.750% Senior Debentures due 2037 at a price equal to 99.275% of the principal amount. The Company used the net cash proceeds of $740 million to repay amounts outstanding under its revolving credit facility and its commercial paper program.The Companys outstanding senior notes and debentures provide for certain covenant packages typical for an investment grade company. There is one acceleration trigger for certain of the senior notes and debentures in the event of a change in control under certain specified circumstances coupled with ratings downgrades due to the change in control. At December

Financial Instruments

Financial Instruments
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements Abstract
Financial Instruments	NOTE 7. FINANCIAL INSTRUMENTS The Company uses derivative financial instruments to modify its exposure to market risks from changes in foreign exchange rates and interest rates. The Company conducts business in various countries outside the United States, resulting in exposure to movements in foreign exchange rates when translating from the foreign local currency to the U.S. Dollar. Foreign currency forward contracts are used to economically hedge anticipated cash flows and foreign currency balances in such currencies as the British Pound, the Australian Dollar, the Euro, the Japanese Yen and the Canadian Dollar. From time to time the Company enters into forward contracts to hedge future production costs or programming obligations or a hedge of the foreign currency exposure of a net investment in a foreign operation. The change in fair value of non-designated foreign exchange contracts is included in current period earnings as part of Other items, net in the Consolidated Statements of Earnings. The Company manages the use of foreign exchange derivatives centrally.At December 31, 2009 and 2008, the notional value of all foreign exchange contracts was $300 million and $3 million, respectively. In 2009, $233 million related to net investments in foreign operations, $51 million related to expected foreign currency net cash flows and $16 million related to programming obligations. In 2008, these contracts related to the hedging of future production costs. The net fair value of the Companys foreign exchange contracts was a $3 million liability as of December 31, 2009.A portion of the Companys interest expense is exposed to movements in short-term rates. Interest rate hedges may be used to modify this exposure at the discretion of the Company. As of December 31, 2009 and 2008, there were no interest rate hedges outstanding, however the Company had unrecognized gains related to terminated interest rate swaps of $39 million and $44 million, respectively, which are included in Accumulated other comprehensive income (loss) in the Consolidated Balance Sheets. Such balances are being recognized as a reduction of Interest expense, net in the Consolidated Statements of Earnings over the life of the related senior notes and debentures.The following table summarizes the valuation of the Companys financial assets and liabilities as of December 31, 2009 and 2008: Quoted Prices In Significant Other Significant Active Markets for Observable Unobservable Financial Asset (Liability) Identical Assets Inputs Inputs (in millions) Total Level 1 Level 2 Level 3 December 31, 2009 Marketable securities $ 79 $ 79 $ - $ - Other financial instruments (57) - (3) (54) Total $ 22 $ 79 $ (3) $ (54) December 31, 2008 Marketable securities $ 56 $ 56 $ - $ - Other financial instruments (53) - - (53) Total $ 3 $ 56 $ - $ (53) The $54 million and $53 million of other financial instruments measured using significant unobservable inputs as of December 31, 2009 and 2008, respectively, relate to the Companys guarantee of certain debt of DW Funding as more fully described in

Receivables

Receivables
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements Abstract
Receivables, net	NOTE 8. RECEIVABLES At December 31, 2009 and 2008 Receivables, net (including retained interests in securitizations) were as follows: Receivables, net (including retained interests in securitizations) December 31, (in millions) 2009 2008 Securitized pools of trade receivables $ 1,931 $ 2,348 Interests in securitizations sold to third parties - (950) Retained interests in securitizations 1,931 1,398 Receivables not subject to securitizations 1,044 972 Receivables, including retained interests in securitizations 2,975 2,370 Less allowance for doubtful accounts (94) (99) Total receivables, net $ 2,881 $ 2,271 The level of securitized receivables sold to third parties was $0 and $950 million at December 31, 2009 and December 31, 2008, respectively. The capacity of the Companys receivable securitization programs at December 31, 2009 was $775 million. The Company plans to use the programs from time to time to supplement working capital requirements as needed. The terms of the revolving securitization arrangements require that the receivable pools meet certain performance ratios. At December 31, 2009, the Company was in compliance with the required ratios under the receivable securitization programs. The financial cost of funding and the cash flow impact of the securitization programs to the Companys operating cash flows are included in Note 17. The Company does not believe its receivables represent significant concentrations of credit risk at December 31, 2009, due to the wide variety of customers, markets and geographic areas from which the Company derives its revenue. While the Company is exposed to credit loss in the event of nonpayment by its customers, the Company believes its allowance for doubtful accounts is sufficient to cover any anticipated nonpayment by customers.

Stockholders Equity

Stockholders Equity
	1/1/2009 - 12/31/2009
Notes To Financial Statements Abstract
Stockholders' Equity	NOTE 9. STOCKHOLDERS EQUITYCommon StockThe Viacom Board of Directors has the power to issue shares of authorized but unissued ClassA common stock and Class B common stock without further stockholder action, subject to the requirements of applicable law and stock exchanges. Viacoms certificate of incorporation authorizes 375million shares of ClassA common stock and 5 billion shares of Class B common stock. The number of authorized shares of ClassA common stock and Class B common stock could be increased with the approval of the stockholders of a majority of the outstanding shares of ClassA common stock and without any action by the holders of shares of Class B common stock.The following is a description of the material terms of Viacoms capital stock. The following description is not meant to be complete and is qualified by reference to Viacoms certificate of incorporation and bylaws and Delaware General Corporation Law.Voting RightsHolders of ClassA common stock are entitled to one vote per share. Holders of Class B common stock do not have any voting rights, except as required by Delaware law. Generally, all matters to be voted on by Viacom stockholders must be approved by a majority of the aggregate voting power of the shares of ClassA common stock present in person or represented by proxy, except as required by Delaware law.DividendsStockholders of ClassA common stock and Class B common stock will share ratably in any cash dividend declared by the Board of Directors, subject to any preferential rights of any outstanding preferred stock. Viacom does not currently pay a cash dividend, and any decision to pay a cash dividend in the future will be at the discretion of the Board of Directors and will depend on many factors.ConversionSo long as there are 5,000 shares of ClassA common stock outstanding, each share of ClassA common stock will be convertible at the option of the holder of such share into one share of Class B common stock.Liquidation RightsIn the event of liquidation, dissolution or winding-up of Viacom, all stockholders of common stock, regardless of class, will be entitled to share ratably in any assets available for distributions to stockholders of shares of Viacom common stock subject to the preferential rights of any outstanding preferred stock.Split, Subdivisions or CombinationIn the event of a split, subdivision or combination of the outstanding shares of ClassA common stock or Class B common stock, the outstanding shares of the other class of common stock will be divided proportionally.Preemptive RightsShares of ClassA common stock and Class B common stock do not entitle a stockholder to any preemptive rights enabling a stockholder to subscribe for or receive shares of stock of any class or any other securities convertible into shares of stock of any class of Viacom.Preferred StockThe Companys capital stock includes 25million authorized shares of preferred stock with a par value of $0.001 per share. At December 31, 2009 and 2008, none of the 25million authorized shares of the preferred stock were issued and outstanding.Other Comprehensive Income (Loss)Total changes in stockholders equity are included in the Consolidated St

Stock Repurchase Program

Stock Repurchase Program
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements Abstract
Stock Repurchase Program	NOTE 10. STOCK REPURCHASE PROGRAMSince December 31, 2008, the Company has not purchased any shares under its stock repurchase program but may resume purchases in the future based on a variety of factors. At December 31, 2009, there is $1.275 billion available to make purchases under the program. From June 23, 2007 to December 31, 2008, the Company repurchased shares of its Class B common stock under a $4.0 billion stock repurchase program. Prior to June 23, 2007 the Company repurchased shares of its Class B common stock under a $3.0 billon stock repurchase program.For the year ended December 31, 2008, 35.1 million shares were repurchased in the open market under the $4.0 billion program for an aggregate purchase price of $1.099 billion and an additional 3.6 million shares were purchased under the NAIRI Agreement with NAI for an aggregate purchase price of $124 million. The NAIRI Agreement was terminated October 10, 2008.

Stock Based Compensation

Stock Based Compensation
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements Abstract
Stock Based Compensation	NOTE 11. STOCK BASED COMPENSATION The Companys 2006 Long-Term Management Incentive Plan (the LTMIP) provides for various types of equity awards, including stock options, stock appreciation rights, restricted shares, restricted share units (RSUs), unrestricted shares of Class B common stock, phantom shares, dividend equivalents, performance awards (including performance share units (PSUs)) and other awards, or a combination of any of the above. In addition, the Companys director equity plans provide for automatic grants of stock options and RSUs to outside directors each year.The Company has primarily granted stock options and RSUs to employees. Certain senior executives have also received PSUs. Stock options generally vest ratably over a four-year period from the date of grant and expire eight to ten years after the date of grant. RSUs typically vest ratably over a four-year period from the date of the grant. The Company grants PSUs with the target number of PSUs granted to each executive representing the right to receive one share of Class B common stock, subject to adjustment depending on the total shareholder return (TSR) of the Companys Class B common stock measured against the TSR of the common stock of the companies comprising the SP 500 Index at the start of the measurement period. The measurement period is at least three years. The number of shares of Class B common stock an executive is entitled to receive at the end of the applicable measurement period ranges from 0% to 200/300% of the target PSU award. If Viacomspercentile rank of TSRrelative to the TSR for the companies in the SP 500 Indexisless than the 25th percentile,the target grant is forfeited unless the Company has achieved a specified level of earnings per share set forthemeasurement period, in which case the executive would receive a percentage of the target award.Upon the exercise of a stock option award or the vesting of RSUs, shares of Class B common stock are issued from authorized but unissued shares or from treasury stock. At December 31, 2009, the Company had 151.5million shares in treasury. The aggregate number of equity awards authorized and available under the LTMIP for future grants as of December 31, 2009 and December 31, 2008 approximated 44.7million and 40.9million, respectively, assuming that outstanding PSU awards are paid at target except for those awards for which the measurement period has been completed.Presented below is a summary of the compensation cost recognized in the accompanying Consolidated Statements of Earnings: Stock Based Compensation Expense Year Ended December 31, (in millions) 2009 2008 2007 Recognized in earnings: Stock options $ 34 $ 42 $ 46 Restricted share units 34 34 29 Performance share units 34 23 11 Total compensation cost in earnings $ 102 $ 99 $ 86 Tax benefit recognized $ 38 $ 37 $ 33 Capitalized stock based compensation expense $ 11 $ 14 $ 11 Stock Options The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The determination of volatility is principally based upon implied volatilities

Pension and other post retireme

Pension and other post retirement benefits
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements Abstract
Pension and other post retirement benefits	NOTE 12. PENSION AND OTHER POSTRETIREMENT BENEFITSThe Companys defined benefit pension plans principally consist of both funded and unfunded noncontributory plans covering the majority of domestic employees and retirees. The funded plan provides a defined benefit based on a percentage of eligible compensation for periods of service. The unfunded pension plans are currently frozen to future benefit accruals. In addition, eligible employees participate in Viacom-sponsored health and welfare plans that provide certain postretirement health care and life insurance benefits to retired employees and their covered dependents. Most of the health and welfare plans are contributory and contain cost-sharing features such as deductibles and coinsurance which are adjusted annually. Claims are paid either through certain trusts funded by Viacom or by the Companys own funds.A December31st measurement date is used for all pension and other postretirement benefit plans. The following tables summarize changes in the benefit obligation, the plan assets and the funded status of the Companys pension and postretirement benefit plans: Year Ended December 31, Change in Benefit Obligation 2009 2008 2009 2008 (in millions) Pension Benefits Postretirement Benefits Benefit obligation, beginning of period $ 648 $ 535 $ 12 $ 10 Service cost 27 35 1 1 Interest cost 38 34 1 1 Amendments 1 - - - Actuarial (gain) / loss (25) 55 (1) 1 Curtailments (12) - - - Benefits paid (18) (10) (1) (1) Cumulative translation adjustments - (1) - - Benefit obligation, end of period $ 659 $ 648 $ 12 $ 12 Year Ended December 31, Change in Plan Assets 2009 2008 2009 2008 (in millions) Pension Benefits Postretirement Benefits Fair value of plan assets, beginning of period $ 231 $ 312 $ $ Actual return on plan assets 82 (114) Employer contributions 119 44 1 1 Benefits paid (18) (10) (1) (1) Cumulative translation adjustments (1) Fair value of plan assets, end of period $ 414 $ 231 $ 0 $ 0 December 31, Funded status 2009 2008 2009 2008 (in millions) Pension Benefits Postretirement Benefits Funded status* $ (245) $ (417) $ (12) $ (12) * These unfunded amounts are included in Other liabilities noncurrent in the Consolidated Balance Sheets. Accumulated Benefit ObligationThe accumulated benefit obligation differs from the projected benefit obligation in that it includes no assumption about future compensation levels. Since the Companys unfunded plans are frozen as of December 31, 2009, the projected benefit obligation equals the accumulated benefit obligation. Included in the change in benefit obligation table above are the following funded and unfunded plans with an accumulated benefit obligation equal to or in excess of plan assets at the end of the year. Funded Plans Unfunded Plans Total Plans Accumulated Benefit Obligation December 31, December 31, December 31, (in millions) 2009 2008 2009 2008 2009 2008 Projected benefit obliga

Restructuring and other charges

Restructuring and other charges
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements Abstract
Restructuring and other charges	NOTE 13. RESTRUCTURING AND OTHER CHARGESDuring the second quarter of 2009 the Company incurred $33 million of severance charges included within Selling, general and administrative expenses in the Companys Consolidated Statement of Earnings. During 2009, approximately $12 million related to these charges was paid out in cash, leaving a remaining liability of $21 million as of December 31, 2009.In the fourth quarter of 2009, the Company recorded a $60 million non-cash impairment charge in the Media Networks segment related to certain broadcast licenses held by a 32%-owned consolidated entity. This charge is included within Depreciation and amortization in the Consolidated Statement of Earnings. The impact to Net earnings attributable to Viacom was a reduction of $19 million. The impairment results from a planned change in strategy of distribution in the affected markets as well as a sustained deterioration in the advertising markets that supported the broadcast licenses. The fair value of the broadcast licenses was determined under an income approach utilizing the projected net cash flows of the licenses, a Level 3 input within the hierarchy set forth in the accounting guidance for fair value measurements.In the fourth quarter of 2008, to better align the Companys organization and cost structure with changing economic conditions, the Company undertook a strategic review of its businesses which resulted in an aggregate of $454 million of restructuring and other charges. In addition to broad adverse economic conditions, the strategic review considered the emergence of sustained softness in the advertising market and ratings issues at certain channels in the Media Networks segment, and the Filmed Entertainment segments decision to reduce its future film slate. The restructuring plan included workforce reductions of 890 positions across its domestic and international operations and resulted in an associated restructuring charge of $103 million. The charge includes $80 million for severance, principally consisting of one-time benefits for terminated employees and $23 million related to lease termination costs. The plan was substantially completed in 2008 and is expected to involve cash payments of approximately $88 million, of which $7 million was paid in 2008 and $63 million was paid in 2009. There have been no significant changes to the restructuring plan. At December 31, 2009 the remaining liability is $18 million.In conjunction with the strategic review, the Company also assessed the effectiveness of its programming and motion pictures not yet released. As a result of the assessment, the Media Networks segment recorded a charge of $286 million principally related to managements decision to cease use of certain acquired and original programming which was no longer achieving desired audience levels and/or branding objectives. The charge reflects the acceleration of amortization of such programming into the fourth quarter of 2008, consistent with the decision to discontinue airing of the respective programs subsequent to the fourth quarter of 2008. The Filmed Entertainment segment recorded a charge of $19 million primarily related to pre-release

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements Abstract
Income Taxes	NOTE 14. INCOME TAXES Earnings from continuing operations before provision for income taxes consists of the following: Pre-tax Earnings from Continuing Operations Year Ended December 31, (in millions) 2009 2008 2007 United States $ 1,841 $ 1,451 $ 2,143 International 435 404 437 Pre-tax earnings from continuing operations $ 2,276 $ 1,855 $ 2,580 The provision for income taxes from continuing operations consists of the following: Provision for Income Taxes from Continuing Operations Year Ended December 31, (in millions) 2009 2008 2007 Current Provision for Taxes on Income: Federal $ 408 $ 328 $ 621 State and local 34 96 129 International 179 167 146 Total current provision for income taxes 621 591 896 Deferred provision for income taxes 87 14 33 Provision for income taxes $ 708 $ 605 $ 929 A reconciliation of the effective income tax rate on continuing operations to the U.S. federal statutory income tax rate is as follows: Year Ended December 31, Effective Tax Rate 2009 2008 2007 U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % State and local taxes, net of federal benefit 3.2 3.4 3.5 Effect of international operations (3.9) (3.8) (1.6) Audit settlements (4.6) (2.4) (0.6) Qualified production activities deduction (1.9) (1.9) (1.6) All other, net 3.3 2.3 1.3 Effective tax rate, continuing operations 31.1 % 32.6 % 36.0 % During 2009, 2008 and 2007, the Company recognizednetdiscrete tax benefits of $124 million, $55 million and $15 million, respectively, which served to reduce the provision for income taxes for those years. Thenetdiscrete tax benefits for all yearsrelateprincipallyto the release of tax reserves in respect of certain effectively settled tax positions. The 2009net discrete taxbenefit also reflects the recognition of certain previously unrecognized capital losses from international operations.The tax effects of the items recorded as deferred tax assets and liabilities are: Deferred Taxes December 31, (in millions) 2009 2008 Deferred Tax Assets: Provision for expense and losses $ 403 $ 458 Postretirement and other employee benefits 243 238 Tax credit and loss carryforwards 148 133 All other 157 198 Total deferred tax assets 951 1,027 Valuation allowance (144) (108) Total deferred tax assets, net $ 807 $ 919 Deferred Tax Liabilities: Property, equipment and intangible assets $ (667) $ (626) All other (82) (102) Total deferred tax liabilities (749) (728) Deferred taxes, net $ 58 $ 191 The Company has recorded valuation allowances for certain deferred tax assets, which are primarily related to foreign jurisdictions, as sufficient uncertainty exists regarding the future realization of these assets. During 2009, valuation allowances increased $36 million principally as a result of the impairment of broadcast licenses held by a 32%-owned consolidated entity and net increases of loss carryforwards. During 2008, the Company

Related Party Transactions

Related Party Transactions
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements Abstract
Related Party Transactions	NOTE 15. RELATED PARTY TRANSACTIONS NAI, through NAIRI, Inc., is the controlling stockholder of both Viacom and CBS Corporation. NAI also held a controlling interest in Midway until November 28, 2008. SumnerM.Redstone, the Chairman, Chief Executive Officer and controlling shareholder of NAI, is the Executive Chairman of the Board and Founder of both Viacom and CBS Corporation. In addition, Shari Redstone, who is Sumner Redstones daughter, is the President of NAI, and the Vice Chair of the Board of both Viacom and CBS Corporation. George Abrams, one of the Companys directors, serves on the boards of both NAI and Viacom, and Frederic Salerno, another of the Companys directors, serves on the boards of both Viacom and CBS Corporation. Philippe Dauman, the Companys President and Chief Executive Officer, also serves on the boards of both NAI and Viacom.Since the fall of 2008, Mr. Dauman has recused himself from activity as an NAI board member with respect to all matters relating to the restructuring of NAIs indebtedness. In addition, NAIs board of directors has created a special committee that does not include Mr. Redstone or Mr. Dauman in order to consider issues that may be perceived to create a conflict between their responsibility to Viacom and to NAI. Similarly, the Companys independent directors act on behalf of the Board of Directors when appropriate to address such issues. Transactions between Viacom and related parties are typically overseen by the Companys Governance and Nominating Committee.NAI licenses films in the ordinary course of business for its motion picture theaters from all major studios, including Paramount. During the years ended December 31, 2009, 2008 and 2007, Paramount earned revenues from NAI in connection with these licenses in the aggregate amounts of approximately $34 million, $36 million and $36 million, respectively.In connection with the Companys stock repurchase programs, the Company entered into an agreement with NAIRI Inc. (NAIRI), a wholly-owned subsidiary of NAI, and NAI under which the Company agreed to buy from them, and they agreed to sell to the Company, a number of shares of Viacom Class B common stock each month such that their ownership percentage of Viacom Class A common stock and Class B common stock (considered as a single class) would not increase as a result of the Companys repurchase of shares under its stock repurchase program. In 2008 and 2007, the Company repurchased 3.6 million and 6.0 million shares, respectively, of Class B common stock from NAIRI for an aggregate purchase price of $124 million and $246 million, respectively. The NAIRI Agreement was terminated in October 2008.Viacom and CBS Corporation Related Party TransactionsIn the normal course of business, the Company is involved in transactions with CBS Corporation and its various businesses (CBS) that result in the recognition of revenues and expenses by Viacom. Transactions with CBS, through the normal course of business, are settled in cash.Paramount earns revenues and recognizes expenses associated with the distribution of certain television products into the home entertainment market on behalf of CBS. Effective January1, 2008,

Commitments and Contingencies

Commitments and Contingencies
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements Abstract
Commitments and Contingencies	NOTE 16. COMMITMENTS AND CONTINGENCIESCommitmentsThe Companys commitments primarily consist of programming and talent commitments, operating lease arrangements, purchase obligations for goods and services and future funding commitments related to equity investees, including a put option with respect to DW Funding. See Note 3 for additional information relating to the Companys future funding commitments. These arrangements result from the Companys normal course of business and represent obligations that may be payable over several years. Additionally, the Company is subject to a redeemable put option, payable in a foreign currency, with respect to an international subsidiary which expires in 2011 and is classified as Redeemable noncontrolling interest in the Consolidated Balance Sheets. See Notes 1 and 17 to the Companys Consolidated Financial Statements for additional information related to the redeemable noncontrolling interest.Programming and talent commitments of the Company not recorded on the balance sheet, which aggregate approximately $1.567 billion as of December 31, 2009, included $1.287 billion relating to media networks programming and $280 million for talent contracts. At December 31, 2009, the Company had recorded, on the balance sheet, programming commitments of $927 million. Amounts expected to be paid over the next five years are as follows: $405 million, $243 million, $168 million, $106 million and $5 million.The Company has long-term noncancelable operating and capital lease commitments for office space, equipment, transponders, studio facilities and vehicles. At December 31, 2009, minimum rental payments under noncancelable leases are as follows: Noncancelable Lease Commitments (in millions) Capital Operating 2010 $ 55 $ 190 2011 46 157 2012 34 146 2013 29 138 2014 27 127 2015 and thereafter 134 336 Total minimum payments $ 325 $ 1,094 Amounts representing interest (65) Total $ 260 Future minimum operating lease payments have been reduced by future minimum sublease income of $17 million. Rent expense amounted to $160 million, $152 million and $162million in 2009, 2008 and 2007, respectively. The Company also has purchase obligations which include agreements to purchase goods or services in the future that totaled $584 million as of December 31, 2009.The Harmonix acquisition agreement provided that to the extent financial results exceeded specific contractual targets against a defined gross profit metric for the calendar years 2007 and 2008, former Harmonix shareholders are eligible for incremental earn-out payments. In 2008, the Company paid $150 million, subject to adjustment, under this earn-out agreement related to 2007 performance. At December 31, 2009, the Company believes that it is entitled to a refund of a substantial portion of amounts previously paid, but the final amount of the earn-out has not yet been determined.GuaranteesIn the course of its business, the Company both provides and receives the benefit of indemnities that are intended to allocate certain risks associated with business transactions. The Company guarantees debt o

Supplemental Cash Flow and Othe

Supplemental Cash Flow and Other Information
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements Abstract
Supplemental Cash Flow and Other Information	NOTE 17. SUPPLEMENTAL CASH FLOW AND OTHER INFORMATION Supplemental Cash Flow Information Year Ended December 31, (in millions) 2009 2008 2007 Cash paid for interest $ 425 $ 495 $ 469 Cash paid for income taxes* $ 603 $ 741 $ 826 Non-cash Investing and Financing Activities: Equipment acquired under capitalized leases $ 134 $ 10 $ - Investments with joint ventures, including note payable, net of discount $ - $ 4 $ 190 Acquisitions: Fair value of assets $ 66 $ 176 $ 15 Fair value of liabilities (2) (90) - Noncontrolling interest - (11) - Cash paid, net of cash acquired** $ 64 $ 75 $ 15 Receivable Securitization Arrangements: Receivable interests sold to investors at beginning of the period $ 950 $ 950 $ 950 Proceeds from the sale of receivables 3,315 3,946 3,841 Cash interest paid 22 36 55 Cash remitted (4,112) (3,982) (3,896) Cash remitted related to reduction in sponsor participation (175) - - Receivable interests sold to investors at end of the period $ - $ 950 $ 950 * Includes cash payments for discontinued operations in 2007.**Excludes a $150 million earn-out payment in 2008. See Note 3 for additional information. Interest Expense, net Year Ended December 31, (in millions) 2009 2008 2007 Interest expense $ (440) $ (514) $ (487) Interest income 10 32 23 Interest expense, net $ (430) $ (482) $ (464) Other Items, net Year Ended December 31, (in millions) 2009 2008 2007 Loss on securitization programs $ (14) $ (34) $ (55) Foreign exchange (loss) gain (27) (50) 42 Impairment of minority investment - (27) (36) Other gains/(losses) 4 (1) 6 Other items, net $ (37) $ (112) $ (43) Redeemable Noncontrolling Interest Year Ended December 31, (in millions) 2009 2008 2007 Beginning balance $ 148 $ 229 $ 226 Net earnings 11 13 13 Distributions (8) (8) (11) Translation adjustment 16 (60) 7 Redemption value adjustment 1 (26) (6) Ending balance $ 168 $ 148 $ 229

Reporting Segments

Reporting Segments
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements Abstract
Reporting Segments	NOTE 18. REPORTING SEGMENTSThe following tables set forth the Companys financial performance by reporting segment. The Companys reporting segments have been determined in accordance with the Companys internal management structure. The Company manages its operations through two reporting segments: (i)Media Networks and (ii)Filmed Entertainment. Typical intersegment transactions include the purchase of advertising by the Filmed Entertainment segment on Media Networks properties and the purchase of Filmed Entertainments feature films exhibition rights by Media Networks. The elimination of such intercompany transactions in the consolidated financial statements is included within eliminations in the table below. Operating income is used as the measure of segment profit performance. Revenues by Segment Year Ended December 31, (in millions) 2009 2008 2007 Media Networks $ 8,288 $ 8,756 $ 8,101 Filmed Entertainment 5,482 6,033 5,476 Eliminations (151) (164) (154) Total revenues $ 13,619 $ 14,625 $ 13,423 Segment Operating Income Year Ended December 31, (in millions) 2009 2008 2007 Media Networks $ 2,934 $ 2,729 $ 3,048 Filmed Entertainment 219 26 103 Total segment operating income 3,153 2,755 3,151 Corporate expenses (248) (234) (219) Eliminations (1) 2 4 Total operating income 2,904 2,523 2,936 Interest expense, net (430) (482) (464) Gain on sale of equity investment - - 151 Equity in net losses of investee companies (77) (74) - Loss on extinguishment of debt (84) - - Other items, net (37) (112) (43) Earnings from continuing operations before provision for income taxes $ 2,276 $ 1,855 $ 2,580 Depreciation and Amortization Total Assets Depreciation and Amortization and Total Assets Year Ended December 31, December 31, (in millions) 2009 2008 2007 2009 2008 Media Networks $ 276 $ 274 $ 276 $ 16,189 $ 15,784 Filmed Entertainment 105 108 99 5,549 6,001 Corporate/Eliminations 10 23 18 162 702 Total $ 391 $ 405 $ 393 $ 21,900 $ 22,487 Capital Expenditures Year Ended December 31, (in millions) 2009 2008 2007 Media Networks $ 73 $ 208 $ 132 Filmed Entertainment 66 78 82 Corporate 2 2 23 Total capital expenditures $ 141 $ 288 $ 237 Revenues by Component Year Ended December 31, (in millions) 2009 2008 2007 Advertising $ 4,405 $ 4,722 $ 4,690 Feature film 5,205 5,771 5,253 Affiliate fees 2,901 2,620 2,339 Ancillary 1,259 1,676 1,295 Eliminations (151) (164) (154) Total revenues $ 13,619 $ 14,625 $ 13,423 The Company generated 28% of its total consolidated revenues from international markets in 2009 as compared to 29% and 27% in 2008 and 2007, respectively. The Companys principal international businesses are in Europe, of which the United Kingdom and Germany together accounted for approximately 48%, 48% and 49% of total European revenues for the years ended December 31, 2009, 200

Discontinued Operations

Discontinued Operations
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements Abstract
Discontinued Operations	NOTE 19. DISCONTINUED OPERATIONSIn July 2007, the Company completed the sale of Famous Music for $355 million, which was previously included in the Filmed Entertainment reporting segment. Following the sale, the Companys continuing involvement with Famous Music is limited to certain license and distribution agreements that are not considered significant. Other discontinued operations activity in all years reflects adjustments related to businesses previously sold. The following table sets forth the Companys net gain attributable to Famous Music and adjustments to previously disposed businesses, including Famous Players and Blockbuster (see Note 16 for additional information), which are presented as discontinued operations in the consolidated financial statements for all periods presented: Discontinued Operations (in millions) Famous Music All Other Total Year-ended December 31, 2009 Pre-tax earnings from discontinued operations $ - $ 32 $ 32 Income tax provision - (12) (12) Net earnings from discontinued operations $ - $ 20 $ 20 Year-ended December 31, 2008 Pre-tax gain on discontinued operations $ 3 $ 20 $ 23 Income tax provision (1) (4) (5) Net earnings from discontinued operations $ 2 $ 16 $ 18 Year-ended December 31, 2007 Revenues from discontinued operations $ 72 $ - $ 72 Pre-tax earnings from discontinued operations $ 3 $ - $ 3 Gain on disposal of discontinued operations 320 22 342 Earnings from discontinued operations (before taxes) 323 22 345 Income tax provision (125) (12) (137) Net earnings from discontinued operations $ 198 $ 10 $ 208

Property and Equipment

Property and Equipment
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements Abstract
Property and Equipment	NOTE 20. PROPERTY AND EQUIPMENT Estimated Property and Equipment, Net December 31, Life (in millions) 2009 2008 (in years) Land $ 246 $ 245 - Buildings 328 313 20 to 40 Capital leases 394 362 3 to 15 Equipment and other 1,661 1,635 3 to 15 Property and equipment 2,629 2,555 Less: Accumulated depreciation (1,450) (1,410) Property and equipment, net $ 1,179 $ 1,145 Depreciation expense, including capitalized lease amortization, was $226 million, $264 million and $250 million in 2009, 2008 and 2007, respectively. Amortization expense related to capital leases was $35 million, $48 million and $64 million in 2009, 2008 and 2007, respectively. Accumulated amortization of capital leases was $162 million and $222 million at December 31, 2009 and 2008, respectively.

Quarterly Financial Data

Quarterly Financial Data
	12 Months Ended Dec. 31, 2009
Notes To Financial Statements Abstract
Quarterly Financial Data	NOTE 21. QUARTERLY FINANCIAL DATA (unaudited): 2009 Full (in millions, except per share information) First Second Third Fourth Year Revenues $ 2,905 $ 3,299 $ 3,317 $ 4,098 $ 13,619 Operating income $ 442 $ 586 $ 784 $ 1,092 $ 2,904 Net earnings from continuing operations (Viacom and noncontrolling interests) $ 180 $ 281 $ 446 $ 661 $ 1,568 Net earnings (Viacom and noncontrolling interests) $ 180 $ 281 $ 466 $ 661 $ 1,588 Net earnings from continuing operations attributable to Viacom $ 177 $ 277 $ 443 $ 694 $ 1,591 Net earnings attributable to Viacom $ 177 $ 277 $ 463 $ 694 $ 1,611 Basic net earnings per share, continuing operations of Viacom $ 0.29 $ 0.46 $ 0.73 $ 1.14 $ 2.62 Basic net earnings per share of Viacom $ 0.29 $ 0.46 $ 0.76 $ 1.14 $ 2.65 Diluted net earnings per share, continuing operations of Viacom $ 0.29 $ 0.46 $ 0.73 $ 1.14 $ 2.62 Diluted net earnings per share of Viacom $ 0.29 $ 0.46 $ 0.76 $ 1.14 $ 2.65 2008* Full (in millions, except per share information) First Second Third Fourth Year Revenues $ 3,117 $ 3,857 $ 3,408 $ 4,243 $ 14,625 Operating income $ 567 $ 792 $ 689 $ 475 $ 2,523 Net earnings from continuing operations (Viacom and noncontrolling interests) $ 274 $ 410 $ 389 $ 177 $ 1,250 Net earnings (Viacom and noncontrolling interests) $ 274 $ 411 $ 405 $ 178 $ 1,268 Net earnings from continuing operations attributable to Viacom $ 270 $ 406 $ 385 $ 172 $ 1,233 Net earnings attributable to Viacom $ 270 $ 407 $ 401 $ 173 $ 1,251 Basic net earnings per share, continuing operations attributable to Viacom $ 0.42 $ 0.65 $ 0.62 $ 0.28 $ 1.97 Basic net earnings per attributable to Viacom $ 0.42 $ 0.65 $ 0.65 $ 0.28 $ 2.00 Diluted net earnings per share, continuing operations attributable to Viacom $ 0.42 $ 0.64 $ 0.62 $ 0.28 $ 1.97 Diluted net earnings per share attributable to Viacom $ 0.42 $ 0.65 $ 0.65 $ 0.28 $ 2.00 * Amounts for all periods have been recast for the adoption of the revised accounting guidance for noncontrolling interests.

Schedule II Valuation and Qauli

Schedule II Valuation and Qaulifying Accounts
	12 Months Ended Dec. 31, 2009
Schedule I I Valuation And Qualifying Accounts
Schedule II Valuation and Qualifying Accounts	Item15(a). VIACOM INC.SCHEDULE IIVALUATION AND QUALIFYING ACCOUNTS Beginning of Additional-expense End of (in millions) period Acquired and other Deductions period Year ended December 31, 2009: Allowance for doubtful accounts $ 99 $ $ 31 $ (36) $ 94 Sales returns and allowances $ 829 $ $ 625 $ (988) $ 466 Inventory obsolescence reserves $ 119 $ $ 26 $ (37) $ 108 Deferred tax valuation allowance $ 108 $ $ 43 $ (7) $ 144 Year ended December 31, 2008: Allowance for doubtful accounts $ 102 $ $ 33 $ (36) $ 99 Sales returns and allowances $ 706 $ $ 1,451 $ (1,328) $ 829 Inventory obsolescence reserves $ 107 $ $ 40 $ (28) $ 119 Deferred tax valuation allowance $ 126 $ $ 29 $ (47) $ 108 Year ended December 31, 2007: Allowance for doubtful accounts $ 143 $ $ 13 $ (54) $ 102 Sales returns and allowances $ 563 $ $ 1,210 $ (1,067) $ 706 Inventory obsolescence reserves $ 106 $ $ 13 $ (12) $ 107 Deferred tax valuation allowance $ 88 $ $ 52 $ (14) $ 126

Entity information

Entity information (USD $)
	12 Months Ended Dec. 31, 2009
Entity Information Abstract
Current fiscal year end date	--12-31
Entity central index key	0001339947
Entity current reporting status	Yes
Entity filer category	Large Accelerated Filer
Entity registrant name	Viacom Inc.
Entity voluntary filers	No
Entity well-known seasoned issuer	Yes
Entity Common Stock, Shares Outstanding	607,400,000
Entity public float	$17,428,850,809

Document information

Document information
	12 Months Ended Dec. 31, 2009
Document Information Abstract
Document type	10-K
Document period end date	2009-12-31
Amendment flag	false