Segment Information | 9 Months Ended |
Sep. 30, 2013 |
Segment Information Disclosure [Abstract] | ' |
Segment Information [Text Block] | ' |
<>NOTE 11—SEGMENT INFORMATION |
The Company's segments are determined based on the properties, products and services it provides and how the chief operating decision maker (“CODM”) evaluates the business. The Company's chief executive officer is the Company's CODM for the nine months ended September 30, 2013. |
The CODM uses adjusted operating income before depreciation and amortization (“Adjusted OIBDA”) to evaluate the performance of the segments and allocate resources. Management considers Adjusted OIBDA to be the appropriate metric to evaluate and compare the ongoing operating performance of the Company's business on a consistent basis across reporting periods, as it eliminates the effect of noncash items which the Company does not believe are indicative of its core operating performance. This measure of profit or loss is considered to be a non-GAAP measure, and may be different than similarly-titled non-GAAP financial measures used by other companies. |
| Segment information for the three and nine months ended September 30, 2013 and 2012 is as follows (in millions): |
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| | Brand Group | | Membership Group | | AOL Networks | | Corporate and Other | | Consolidated Total |
Three months ended September 30, 2013: | | | | | | | | | | | | | | |
Revenues from external customers | | | | | | | | | | | | | | |
| Advertising | $ | 170.6 | | $ | 37.2 | | $ | 178.2 | | $ | - | | $ | 386 |
| Subscription | | - | | | 161.6 | | | - | | | - | | | 161.6 |
| Other | | 5.5 | | | 1.6 | | | 6.6 | | | - | | | 13.7 |
Revenues from transactions with other segments | | 16.4 | | | 4.1 | | | 3.9 | | | -24.4 | | | - |
Total revenue | $ | 192.5 | | $ | 204.5 | | $ | 188.7 | | $ | -24.4 | | $ | 561.3 |
Adjusted OIBDA | $ | 10.9 | | $ | 149.8 | | $ | -7.1 | | $ | -33.8 | | $ | 119.8 |
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Nine months ended September 30, 2013: | | | | | | | | | | | | | | |
Revenues from external customers | | | | | | | | | | | | | | |
| Advertising | $ | 515.2 | | $ | 110.6 | | $ | 480.5 | | $ | 0.1 | | $ | 1,106.40 |
| Subscription | | - | | | 493.4 | | | - | | | - | | | 493.4 |
| Other | | 12.7 | | | 7.3 | | | 20.6 | | | 0.5 | | | 41.1 |
Revenues from transactions with other segments | | 44.5 | | | 18.5 | | | 8.9 | | | -71.9 | | | - |
Total revenue | $ | 572.4 | | $ | 629.8 | | $ | 510 | | $ | -71.3 | | $ | 1,640.90 |
Adjusted OIBDA | $ | 4.6 | | $ | 447.8 | | $ | -20.9 | | $ | -98.1 | | $ | 333.4 |
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Three months ended September 30, 2012: | | | | | | | | | | | | | | |
Revenues from external customers | | | | | | | | | | | | | | |
| Advertising | $ | 157.4 | | $ | 36.7 | | $ | 145.9 | | $ | - | | $ | 340 |
| Subscription | | - | | | 173.5 | | | - | | | - | | | 173.5 |
| Other | | 5.3 | | | 3.3 | | | 9.3 | | | 0.3 | | | 18.2 |
Revenues from transactions with other segments | | 14.3 | | | 7.5 | | | 3.2 | | | -25 | | | - |
Total revenue | $ | 177 | | $ | 221 | | $ | 158.4 | | $ | -24.7 | | $ | 531.7 |
Adjusted OIBDA | $ | -9.6 | | $ | 156.4 | | $ | 0.3 | | $ | -46.2 | | $ | 100.9 |
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Nine months ended September 30, 2012: | | | | | | | | | | | | | | |
Revenues from external customers | | | | | | | | | | | | | | |
| Advertising | $ | 466.1 | | $ | 118.6 | | $ | 423 | | $ | 0.2 | | $ | 1,007.90 |
| Subscription | | - | | | 531.1 | | | - | | | - | | | 531.1 |
| Other | | 12.2 | | | 11.5 | | | 28.5 | | | 1 | | | 53.2 |
Revenues from transactions with other segments | | 38.7 | | | 22.6 | | | 9.1 | | | -70.4 | | | - |
Total revenue | $ | 517 | | $ | 683.8 | | $ | 460.6 | | $ | -69.2 | | $ | 1,592.20 |
Adjusted OIBDA | $ | -41.6 | | $ | 474.2 | | $ | 0.9 | | $ | -144.2 | | $ | 289.3 |
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| The following table presents the Company's reconciliation of Adjusted OIBDA to operating income (in millions): | | | |
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| | Three Months Ended September 30, | | Nine Months Ended September 30, | | | |
| | 2013 | | 2012 | | 2013 | | 2012 | | | |
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Operating income | $ | 16.7 | | $ | 43.1 | | $ | 118.5 | | $ | 1,133.70 | | | |
| Add: Depreciation | | 32 | | | 34.3 | | | 97.4 | | | 105.6 | | | |
| Add: Amortization of intangible assets | | 11.1 | | | 9 | | | 29.7 | | | 28.6 | | | |
| Add: Restructuring costs | | 19 | | | 0.4 | | | 28.1 | | | 7.7 | | | |
| Add: Equity-based compensation | | 11.8 | | | 11.1 | | | 31.4 | | | 28.3 | | | |
| Add: Asset impairments and write-offs | | 29 | | | 0.2 | | | 30.4 | | | 3 | | | |
| Add: Losses/(gains) on disposal of assets, net | | 0.2 | | | -0.2 | | | -2.1 | | | -946.6 | | | |
| Add: Special items | | - | | | 3 | | | - | | | -71 | | | |
Adjusted OIBDA | $ | 119.8 | | $ | 100.9 | | $ | 333.4 | | $ | 289.3 | | | |
Special items for the nine months ended September 30, 2012 include patent licensing income of $96.0 million, partially offset by costs related to the proxy contest of $8.8 million, costs related to the patent sale and return of the related proceeds to shareholders of $8.6 million and $7.6 million of expense relating to the Virginia sales tax settlement in the second quarter of 2012. |
Due to the nature of the Company's operations, a majority of its assets are utilized across all segments. In addition, segment assets are not reported to, or used by, the CODM function to allocate resources or assess performance of the Company's segments. Accordingly, the Company has not disclosed asset information by segment |
Information about Geographical Areas | | | | | | | | |
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| The following table presents revenues in different geographical locations (in millions): | | |
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| | | Three Months Ended September 30,(a) | | Nine Months Ended September 30,(a) | | |
| | | 2013 | | 2012 | | 2013 | | 2012 | | |
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United States | | $ | 498.5 | | $ | 475.2 | | $ | 1,456.30 | | $ | 1,426.00 | | |
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United Kingdom | | | 22.7 | | | 23.5 | | | 70.8 | | | 71.1 | | |
Canada | | | 12.7 | | | 10.7 | | | 35.4 | | | 27.7 | | |
Germany | | | 9.7 | | | 7.3 | | | 28 | | | 24.4 | | |
Japan | | | 8.1 | | | 9.8 | | | 24.4 | | | 24.7 | | |
Other international | | | 9.6 | | | 5.2 | | | 26 | | | 18.3 | | |
| Total international | | | 62.8 | | | 56.5 | | | 184.6 | | | 166.2 | | |
Total | | $ | 561.3 | | $ | 531.7 | | $ | 1,640.90 | | $ | 1,592.20 | | |
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(a) | Revenues are attributed to countries based on the location of customers. | | |