Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 31, 2014 | |
Document Information [Abstract] | ' | ' |
Entity Registrant Name | 'AOL Inc. | ' |
Entity Central Index Key | '0001468516 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity current reporting status | 'Yes | ' |
Entity well known seasoned issuer | 'Yes | ' |
Entity voluntary files | 'No | ' |
Entity Common Stock, Shares Outstanding | ' | 77,886,172 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Advertising and other | $473.40 | $399.70 | $1,358.50 | $1,147.50 |
Subscription | 153.4 | 161.6 | 458.4 | 493.4 |
Total revenues | 626.8 | 561.3 | 1,816.90 | 1,640.90 |
Costs of revenues | 479.4 | 418.6 | 1,394.30 | 1,211.60 |
General and administrative | 81.5 | 78.2 | 236.3 | 237.6 |
Amortization of intangible assets | 16.9 | 11.1 | 48.6 | 29.7 |
Restructuring costs | 1.2 | 19 | 15.7 | 28.1 |
Goodwill impairment charge | 0 | 17.5 | 0 | 17.5 |
(Gain) loss on disposal of assets, net | -0.2 | 0.2 | -4.2 | -2.1 |
Operating income | 48 | 16.7 | 126.2 | 118.5 |
Interest and other income (expense), net | -5.7 | -2.1 | -7 | -5.6 |
Income before income taxes | 42.3 | 14.6 | 119.2 | 112.9 |
Income tax provision | 14.4 | 13.1 | 55.2 | 57.8 |
Net income | 27.9 | 1.5 | 64 | 55.1 |
Net (income) loss attributable to noncontrolling interests | 0.6 | 0.5 | 2 | 1.3 |
Net income attributable to AOL Inc. | 28.5 | 2 | 66 | 56.4 |
Per share information attributable to AOL Inc. common stockholders: | ' | ' | ' | ' |
Basic net income per common share | $0.36 | $0.03 | $0.83 | $0.73 |
Diluted net income per common share | $0.35 | $0.02 | $0.79 | $0.69 |
Shares used in computing basic income per common share | 78.3 | 77.3 | 79.2 | 77.1 |
Shares used in computing diluted income per common share | 82.2 | 81.2 | 83.3 | 81.4 |
Comprehensive income attributable to AOL Inc.: | ' | ' | ' | ' |
Comprehensive income | 21.2 | 1.7 | 60.5 | 49.8 |
Comprehensive (income) loss attributable to noncontrolling interests | 0.8 | 0.5 | 2.1 | 3.7 |
Comprehensive income attributable to AOL Inc. | $22 | $2.20 | $62.60 | $53.50 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and equivalents | $457.50 | $207.30 |
Accounts receivable, net of allowances of $9.2 and $8.3, respectively | 457.3 | 491 |
Prepaid expenses and other current assets | 38.9 | 34.1 |
Deferred income taxes, net | 24.2 | 30.7 |
Total current assets | 977.9 | 763.1 |
Property and equipment, net | 454.3 | 467.9 |
Goodwill | 1,486.30 | 1,361.70 |
Intangible assets, net | 228 | 208.4 |
Long-term deferred income taxes, net | 76.6 | 110.6 |
Other long-term assets | 95.4 | 71.7 |
Total assets | 3,318.50 | 2,983.40 |
Current liabilities: | ' | ' |
Accounts payable | 77 | 101 |
Accrued compensation and benefits | 96.5 | 127 |
Accrued expenses and other current liabilities | 201.8 | 197.3 |
Deferred revenue | 70.4 | 67.2 |
Current portion of obligations under capital leases | 53.6 | 55.5 |
Total current liabilities | 499.3 | 548 |
Convertible senior notes | 303.1 | 0 |
Long-term portion of obligations under capital leases | 82.3 | 56.2 |
Long-term deferred income taxes | 3.7 | 4.4 |
Other long-term liabilities | 104.5 | 97.6 |
Total liabilities | 992.9 | 706.2 |
Commitments and contingencies (see Note 10) | ' | ' |
Redeemable noncontrolling interest (see Note 1) | 9 | 9.7 |
Equity: | ' | ' |
Common stock, $0.01 par value, 115.2 million shares issued and 77.8 million shares outstanding as of September 30, 2014 and 114.1 million shares issued and 79.2 million shares outstanding as of December 31, 2013 | 1.2 | 1.1 |
Additional paid-in capital | 3,676.80 | 3,592.70 |
Accumulated other comprehensive income (loss), net | -293.8 | -290.4 |
Accumulated deficit | -27.4 | -93.6 |
Treasury stock, at cost, 37.4 million shares as of September 30, 2014 and 34.9 million shares as of December 31, 2013 | -1,041.50 | -942.9 |
Total stockholders’ equity | 2,315.30 | 2,266.90 |
Noncontrolling interest | 1.3 | 0.6 |
Total equity | 2,316.60 | 2,267.50 |
Total liabilities, redeemable noncontrolling interest and equity | $3,318.50 | $2,983.40 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Balance Sheet Parenthetical [Abstract] | ' | ' |
Allowance for Doubtful Accounts Receivable Current | $9.20 | $8.30 |
Common Stock, Par or Stated Value Per Share | $0.01 | $0.01 |
Common Stock Shares Issued | 115.2 | 114.1 |
Common Stock Shares Outstanding | 77.8 | 79.2 |
Treasury Stock Shares | 37.4 | 34.9 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Operating Activities | ' | ' |
Net income | $64 | $55.10 |
Adjustments for non-cash and non-operating items: | ' | ' |
Depreciation and amortization | 149.2 | 127.1 |
Asset impairments and write-offs | 12.3 | 30.4 |
(Gain) loss on disposal of assets, net | -4.2 | -1.1 |
Accretion of convertible notes discount | 1.6 | 0 |
Amortization of debt issuance costs | 0.7 | 0.2 |
Equity-based compensation | 51.4 | 31.4 |
Deferred income taxes | 4.7 | 31.5 |
Other non-cash adjustments | 2.8 | 4.5 |
Changes in operating assets and liabilities, net of acquisitions | 4.7 | -50.2 |
Cash provided by operating activities | 287.2 | 228.9 |
Investing Activities | ' | ' |
Investments and acquisitions, net of cash acquired | -192.6 | -336.9 |
Proceeds from Sale of Productive Assets | 38.2 | 1.1 |
Capital expenditures and product development costs | -55.7 | -52.7 |
Cash used by investing activities | -210.1 | -388.5 |
Financing Activities | ' | ' |
Borrowings under the credit facility agreement | 105 | 0 |
Repayments under the credit facility agreement | -105 | 0 |
Repurchase of common stock | -98.6 | -102.2 |
Proceeds from issuance of convertible notes | 379.5 | 0 |
Payment of issuance costs | -10.4 | -3.1 |
Payments for note hedges | 70.1 | 0 |
Proceeds from issuance of warrants | 33.5 | 0 |
Principal payments on capital leases | -53.3 | -44.5 |
Tax withholdings related to net share settlements of restricted stock units | -22.5 | -13.3 |
Proceeds from exercise of stock options | 10.2 | 22.7 |
Other financing activities | 5.9 | 3.9 |
Cash provided (used) by financing activities | 174.2 | -136.5 |
Effect of exchange rate changes on cash and equivalents | -1.1 | -2.3 |
Increase (decrease) in cash and equivalents | 250.2 | -298.4 |
Cash and equivalents at beginning of period | 207.3 | 466.6 |
Cash and equivalents at end of period | 457.5 | 168.2 |
Supplemental disclosures of cash flow information | ' | ' |
Cash paid for interest | 6.6 | 4.2 |
Cash paid for income taxes | $4.20 | $9.90 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Additional Paid-in Capital [Member] |
In Millions, unless otherwise specified | ||||||||
Balance at Dec. 31, 2012 | $2,137.80 | $1.10 | $3,457.50 | ($294.10) | ($188) | ($838.40) | ($0.30) | ' |
Treasury Stock Shares at Dec. 31, 2012 | ' | ' | ' | ' | ' | -33.5 | ' | ' |
Balance Shares Outstanding at Dec. 31, 2012 | ' | 76.6 | ' | ' | ' | ' | ' | ' |
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 55.5 | ' | ' | ' | 56.4 | ' | -0.9 | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Equity interest in investee's unrealized gain on investments | 0.1 | ' | ' | 0.1 | ' | ' | ' | ' |
Foreign currency translation adjustments | -3.1 | ' | ' | -3 | ' | ' | -0.1 | ' |
Comprehensive income (loss) | 52.5 | ' | ' | -2.9 | 56.4 | ' | -1 | ' |
Contributions from noncontrolling interest owners | 2.2 | ' | ' | ' | ' | ' | 2.2 | ' |
Amounts related to equity-based compensation, net of tax withholdings | 23.5 | ' | 23.5 | ' | ' | ' | ' | ' |
Treasury stock reissued, shares | ' | ' | ' | ' | ' | 2.4 | ' | ' |
Treasury stock reissued, value | ' | ' | ' | ' | ' | 64.2 | ' | ' |
Common stock issued, value | 117.9 | ' | 53.7 | ' | ' | ' | ' | ' |
Common stock issued, shares | ' | 4.2 | ' | ' | ' | ' | ' | ' |
Treasury Stock, Shares, Acquired | ' | -2.9 | ' | ' | ' | -2.9 | ' | ' |
Repurchase of common stock, value | -102.2 | ' | ' | ' | ' | -136.1 | ' | -33.9 |
Other | 2 | ' | ' | 0 | 2 | ' | ' | ' |
Balance at Sep. 30, 2013 | 2,233.70 | 1.1 | 3,568.60 | -297 | -129.6 | -910.3 | 0.9 | ' |
Treasury Stock Shares at Sep. 30, 2013 | ' | ' | ' | ' | ' | -34 | ' | ' |
Balance Shares Outstanding at Sep. 30, 2013 | ' | 77.9 | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2013 | 2,267.50 | 1.1 | 3,592.70 | -290.4 | -93.6 | -942.9 | 0.6 | ' |
Treasury Stock Shares at Dec. 31, 2013 | -34.9 | ' | ' | ' | ' | -34.9 | ' | ' |
Balance Shares Outstanding at Dec. 31, 2013 | ' | 79.2 | ' | ' | ' | ' | ' | ' |
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 64.8 | ' | ' | ' | 66 | ' | -1.2 | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Equity interest in investee's unrealized gain on investments | 1.6 | ' | ' | 1.6 | ' | ' | ' | ' |
Foreign currency translation adjustments | -5 | ' | ' | -5 | ' | ' | ' | ' |
Comprehensive income (loss) | 61.4 | ' | ' | -3.4 | 66 | ' | -1.2 | ' |
Contributions from noncontrolling interest owners | 1.9 | ' | ' | ' | ' | ' | 1.9 | ' |
Amounts related to equity-based compensation, net of tax withholdings | 34.2 | ' | 34.2 | ' | ' | ' | ' | ' |
Common stock issued, value | 13.3 | 0.1 | 13.2 | ' | ' | ' | ' | ' |
Common stock issued, shares | ' | 1.1 | ' | ' | ' | ' | ' | ' |
Treasury Stock, Shares, Acquired | ' | -2.5 | ' | ' | ' | -2.5 | ' | ' |
Repurchase of common stock, value | -98.6 | ' | ' | ' | ' | -98.6 | ' | ' |
AdjustmentsToAdditionalPaidInCapitalNoteHedgeTransactions | -42 | ' | -42 | ' | ' | ' | ' | ' |
Equity component of convertible senior notes, net of tax (Note 5) | 45.4 | ' | 45.4 | ' | ' | ' | ' | ' |
Sale of warrants (Note 5) | 33.5 | ' | 33.5 | ' | ' | ' | ' | ' |
Other | ' | ' | -0.2 | 0 | 0.2 | ' | ' | ' |
Balance at Sep. 30, 2014 | $2,316.60 | $1.20 | $3,676.80 | ($293.80) | ($27.40) | ($1,041.50) | $1.30 | ' |
Treasury Stock Shares at Sep. 30, 2014 | -37.4 | ' | ' | ' | ' | -37.4 | ' | ' |
Balance Shares Outstanding at Sep. 30, 2014 | ' | 77.8 | ' | ' | ' | ' | ' | ' |
Description_of_Business_Basis_
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies [Text Block] | ' |
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Description of Business | |
For a description of the business of AOL Inc. (“AOL” or the “Company”), see “Note 1” to the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 (the “Annual Report”). | |
Basis of Presentation | |
Reclassifications | |
Advertising revenues and other revenues have been combined for all periods into a single advertising and other revenues line in the condensed consolidated statement of comprehensive income, given the immateriality of other revenues to total revenues for all periods presented. | |
Basis of Consolidation | |
The condensed consolidated financial statements include 100% of the assets, liabilities, revenues, expenses and cash flows of AOL and all voting interest entities in which AOL has a controlling voting interest (“subsidiaries”) and variable interest entities in which AOL is the primary beneficiary in accordance with the consolidation accounting guidance. Intercompany accounts and transactions between consolidated companies have been eliminated in consolidation. The consolidated balances of the Company’s variable interest entities are not material to the Company’s condensed consolidated financial statements for the periods presented. | |
The financial position and operating results of the majority of AOL’s foreign operations are consolidated using the local currency as the functional currency. Local currency assets and liabilities are translated at the rates of exchange on the balance sheet date, and local currency revenues and expenses are translated at average rates of exchange during the period. Resulting translation gains or losses are included in the condensed consolidated balance sheet as a component of accumulated other comprehensive income (loss), net and in the condensed consolidated statement of comprehensive income (loss) as a component of other comprehensive income (loss), net of tax. | |
Redeemable Noncontrolling Interest | |
The noncontrolling interest in a joint venture between Mitsui & Company Ltd. and AOL (“Ad.com Japan”) is classified outside of permanent equity in the Company’s condensed consolidated balance sheet for all periods presented due to a redemption right available to the noncontrolling interest holder in the future. The noncontrolling interest holder’s right to redeem its stock is exercisable any time between July 1 and July 30 of any year, commencing with July 1, 2014. This right was not exercised during July 2014. Net income in the condensed consolidated statements of comprehensive income (loss) reflects 100% of the results of Ad.com Japan for the three and nine months ended September 30, 2014 and 2013 as the Company has a controlling financial interest in the entity. Net income is subsequently adjusted to exclude AOL’s noncontrolling interests to arrive at net income attributable to AOL Inc. | |
Use of Estimates | |
The preparation of the financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates, judgments and assumptions that affect the amounts reported in the condensed consolidated financial statements and footnotes thereto. Actual results could differ from those estimates. Significant estimates inherent in the preparation of the condensed consolidated financial statements include asset impairments, reserves established for doubtful accounts, equity-based compensation, depreciation and amortization, business combinations, income taxes, litigation matters and contingencies. | |
Interim Financial Statements | |
The interim condensed consolidated financial statements are unaudited; however, in the opinion of management, they contain all the adjustments (consisting of those of a normal recurring nature) considered necessary to present fairly the financial position, the results of operations and cash flows for the periods presented in conformity with GAAP applicable to interim periods. The interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of AOL in the Annual Report. | |
Recently Adopted Accounting Standards | |
Accounting for Cumulative Translation Adjustments | |
In March 2013, new guidance was issued related to accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. The new guidance clarifies that companies are required to apply the guidance in the foreign currency accounting subtopic to release any related cumulative translation adjustment into net income. The guidance also applies to step acquisitions. | |
The new guidance became effective for us in January 2014. The new guidance does not have a material impact on the way the Company currently releases cumulative translation adjustments into net income upon disposition or deconsolidation of a subsidiary. | |
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | |
In July 2013, new guidance was issued related to the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The objective of the new guidance is to eliminate the diversity in financial statement reporting practices by requiring the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carryforward that would apply in settlement of uncertain tax positions. | |
The new guidance became effective for the Company in January 2014 and resulted in the offsetting of approximately $7 million of uncertain tax positions against deferred tax assets as of September 30, 2014. |
Income_per_Common_Share_Notes
Income per Common Share (Notes) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | ' | |||||||||||||||
Income (Loss) Per Common Share [Text Block] | ' | |||||||||||||||
INCOME (LOSS) PER COMMON SHARE | ||||||||||||||||
Basic income per common share is calculated by dividing net income attributable to AOL common stockholders by the weighted average number of shares of common stock outstanding during the reporting period. Diluted income per common share is calculated to give effect to all potentially dilutive common shares that were outstanding during the reporting period. The dilutive effect of outstanding equity-based compensation awards is reflected in diluted income per common share by application of the treasury stock method, only in periods in which such effect would have been dilutive for the period. | ||||||||||||||||
The Company has the option to pay cash, issue shares of common stock or any combination thereof for the aggregate amount due upon conversion of the Convertible Senior Notes. The Company’s intent is to settle the principal amount of the Convertible Senior Notes in cash upon conversion. As a result, only the amounts payable in excess of the principal amounts of the Convertible Senior Notes are considered in diluted earnings per share under the treasury stock method. | ||||||||||||||||
For the three and nine months ended September 30, 2014, the Company had 8.0 million and 3.3 million, respectively, of weighted-average potentially dilutive common shares that were not included in the computation of diluted earnings per share because to do so would be anti-dilutive for those periods. For each of the three and nine months ended September 30, 2013, the Company had 1.2 million of weighted-average potentially dilutive common shares that were not included in the computation of diluted earnings per share because to do so would be anti-dilutive for those periods. | ||||||||||||||||
The following table is a reconciliation of basic and diluted net income attributable to AOL common stockholders per common share (in millions, except per share amounts): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income attributable to AOL Inc. common stockholders | $ | 28.5 | $ | 2 | $ | 66 | $ | 56.4 | ||||||||
Shares used in computing basic income per common share | 78.3 | 77.3 | 79.2 | 77.1 | ||||||||||||
Dilutive effect of equity-based awards | 3.9 | 3.9 | 4.1 | 4.3 | ||||||||||||
Shares used in computing diluted income per common share | 82.2 | 81.2 | 83.3 | 81.4 | ||||||||||||
Basic net income per common share | $ | 0.36 | $ | 0.03 | $ | 0.83 | $ | 0.73 | ||||||||
Diluted net income per common share | $ | 0.35 | $ | 0.02 | $ | 0.79 | $ | 0.69 | ||||||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets (Notes) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||
Goodwill [Text Block] | ' | |||||||||||||||||||
GOODWILL | ||||||||||||||||||||
A summary of changes in the Company’s goodwill during the nine months ended September 30, 2014 is as follows (in millions): | ||||||||||||||||||||
31-Dec-13 | Acquisitions | Dispositions | Translation | September 30, | ||||||||||||||||
and Other | 2014 | |||||||||||||||||||
Adjustments | ||||||||||||||||||||
Brand Group | ||||||||||||||||||||
Gross Goodwill | $ | 283.5 | $ | 46.1 | $ | (1.9 | ) | $ | — | $ | 327.7 | |||||||||
Net Goodwill | 283.5 | 46.1 | (1.9 | ) | — | 327.7 | ||||||||||||||
Membership Group | ||||||||||||||||||||
Gross Goodwill | 605 | — | — | (0.7 | ) | 604.3 | ||||||||||||||
Net Goodwill | 605 | — | — | (0.7 | ) | 604.3 | ||||||||||||||
AOL Platforms | ||||||||||||||||||||
Gross Goodwill | 473.2 | 83.6 | — | (2.5 | ) | 554.3 | ||||||||||||||
Net Goodwill | 473.2 | 83.6 | — | (2.5 | ) | 554.3 | ||||||||||||||
Patch | ||||||||||||||||||||
Gross Goodwill | 17.5 | — | (17.5 | ) | — | — | ||||||||||||||
Impairments | (17.5 | ) | — | 17.5 | — | — | ||||||||||||||
Net Goodwill | — | — | — | — | — | |||||||||||||||
Corporate and Other | ||||||||||||||||||||
Gross Goodwill | 35,625.10 | — | — | — | 35,625.10 | |||||||||||||||
Impairments | (35,625.1 | ) | — | — | — | (35,625.1 | ) | |||||||||||||
Net Goodwill | — | — | — | — | — | |||||||||||||||
Consolidated | ||||||||||||||||||||
Gross Goodwill | 37,004.30 | 129.7 | (19.4 | ) | (3.2 | ) | 37,111.40 | |||||||||||||
Impairments | (35,642.6 | ) | — | 17.5 | — | (35,625.1 | ) | |||||||||||||
Net Goodwill | $ | 1,361.70 | $ | 129.7 | $ | (1.9 | ) | $ | (3.2 | ) | $ | 1,486.30 | ||||||||
The increase in goodwill for the nine months ended September 30, 2014 was due primarily to the acquisition of Project Rover, Inc., dba Gravity (“Gravity”) and Convertro, Inc. ("Convertro") in 2014. See “Note 4” for additional information on these transactions. |
Business_Acquisitions_Disposit
Business Acquisitions, Dispositions and Other Significant Transactions (Notes) | 9 Months Ended |
Sep. 30, 2014 | |
Business Combinations [Abstract] | ' |
Business Acquisitions, Dispositions And Other Significant Transactions [Text Block] | ' |
BUSINESS ACQUISITIONS, DISPOSITIONS AND OTHER SIGNIFICANT TRANSACTIONS | |
Acquisitions | |
Gravity | |
On January 23, 2014, the Company acquired Gravity, a company that provides content personalization technology and publisher solutions to create relevant consumer and advertiser experiences, for a purchase price of $83.2 million, net of cash acquired. An additional $7.6 million of cash consideration was deferred and will be paid over a two year service period to certain Gravity employees contingent upon their future service to the Company, which is being recorded as compensation expense over the required service period. The purchase price includes $0.8 million related to the portion of the fair value of converted Gravity awards that was attributable to pre-acquisition service. An additional $5.9 million of fair value of unvested AOL restricted stock issued to Gravity employees is being recognized as equity-based compensation expense over the remaining award service periods. | |
The Company recorded $46.1 million of goodwill (which is not deductible for tax purposes) and $40.4 million of intangible assets associated with this acquisition. The intangible assets associated with this acquisition consist primarily of technology, customer relationships and trade names, all of which are being amortized on a straight-line basis over a period of five years. The fair value of the significant identified intangible assets was estimated by using relief from royalty and multi-period excess earnings valuation methodologies, which represent level 3 fair value measurements. Inputs used in the methodologies primarily included projected future cash flows, discounted at a rate commensurate with the risk involved. | |
Unaudited pro forma results of operations assuming this acquisition had taken place at the beginning of each period are not provided because the historical operating results of Gravity were not significant and pro forma results would not be significantly different from reported results for the periods presented. | |
Convertro | |
On May 6, 2014, the Company acquired Convertro, a leading attribution modeling technology company that helps marketers reallocate budgets within their media channels, sites, placements and creatives, for a total purchase price of $98.6 million, net of cash acquired. The purchase price included $89.0 million in cash, $8.9 million estimated fair value (with a gross value of $10.0 million) of contingent consideration to be paid to Convertro shareholders upon meeting specified product development milestones over the 17 months following the acquisition date, and $0.7 million of the $2.1 million estimated fair value of the unvested in-the-money options held by Convertro employees replaced with unvested AOL restricted stock and related to pre-acquisition service period. | |
The remaining $1.4 million fair value of issued restricted stock is being recognized as equity-based compensation expense over the remaining awards requisite service periods. The integration of Convertro technology is expected to enhance the ability of advertisers to customize their audience segments and establish a map of user journey to a particular event across media channels (e.g., a conversion, completion), thereby enabling the Company’s advertisers to develop a media plan that maximizes return on ad spend across various media channels. The Company borrowed $75.0 million under its senior secured revolving credit facility agreement (the “Credit Facility Agreement”) to facilitate funding of this acquisition. | |
The fair value of the contingent consideration liability recognized on the acquisition date was $8.9 million, of which $6.0 million was classified within other current liabilities and the remaining $2.9 million was classified within other long-term liabilities on the condensed consolidated balance sheets based on the expected timing of payments as of the acquisition date. The Company determined the fair value of the liability for the contingent consideration based on a probability-weighted discounted cash flow analysis, which represents a level 3 fair value measurement. As of September 30, 2014, the contingent liability balance is $6.6 million and is classified within other current liabilities based on the expected timing to complete the remaining product development milestones. The $2.3 million reduction to the liability is a result of a $2.5 million payment, including $0.2 million of accretion expense, made during the quarter as a result of Convertro achieving two product development milestones. In addition to the purchase price paid for this business, the Company agreed to pay up to a $9.0 million retention bonus to certain Convertro employees which is being recorded as compensation expense over the two year required service period. | |
The Company recorded $73.3 million of goodwill (which is not deductible for tax purposes) and $28.3 million of intangible assets associated with this acquisition. The intangible assets associated with this acquisition consist of technology, a trade name and customer relationships, all of which are being amortized on a straight-line basis over a period of five years, consistent with the useful lives of comparable intangible assets purchased under similar circumstances. | |
The fair value of the significant identified intangibles assets was estimated by using a discounted cash flow analysis using the relief from royalty approach to value the technology and trade name and the replacement cost approach to value customer relationships, which represent level 3 fair value measurements. Inputs used in the methodologies primarily included projected future cash flows, discounted at a rate commensurate with the risk involved. | |
Unaudited pro forma results of operations assuming this acquisition had taken place at the beginning of each period are not provided because the historical operating results of Convertro were not significant and pro forma results would not be significantly different from reported results for the periods presented. | |
Dispositions and Disposals | |
Patch | |
On January 29, 2014, the Company entered into a joint venture with DMEP Corp. dba Hale Global (“Hale Global”), whereby the Company contributed Patch into a new limited liability company, which is operated and majority owned by Hale Global subsequent to the closing of the transaction. The Company recorded a loss on disposition of $3.1 million, which primarily represents the difference between the $12.8 million fair value of the Company’s 40% retained interest in Patch and the carrying value of contributed net assets. The loss on disposition is included in the loss on disposal of assets in the Company’s condensed consolidated statement of comprehensive income (loss). The fair value of the Company’s retained interest in the joint venture is being accounted for as an equity method investment. Due to the Company’s significant continuing involvement with the joint venture, the disposed component did not meet the criteria to be classified as a discontinued operation in the Company’s financial statements. | |
Sale of Dulles Technology Center | |
On July 30, 2014, the Company completed the sale of a data center property located in Virginia for cash of approximately $33.1 million, net of costs to sell the property. During the three months ended June 30, 2014, the assets associated with this property were reclassified from property and equipment, net, to assets held for sale on the condensed consolidated balance sheets, and the Company recorded an immaterial impairment on the assets. During the three months ended September 30, 2014, an immaterial loss was recorded upon the sale of the assets. |
LongTerm_Debt_and_Other_Financ
Long-Term Debt and Other Financing Arrangements Long-Term Debt and Other Financing Arrangements (Notes) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-term Debt [Text Block] | ' | |||||||
LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS | ||||||||
Revolving Credit Facility | ||||||||
On July 1, 2013, AOL entered into a $250 million Credit Facility Agreement (the “Credit Facility Agreement”). Under the terms of the Credit Facility Agreement, AOL may request an increase in the commitments of up to an additional $250 million with commitments from either new lenders or increased commitments from existing lenders, subject to the satisfaction of certain conditions. The Credit Facility Agreement is guaranteed by all of AOL’s material domestic subsidiaries, as defined in the Credit Facility Agreement, and substantially all of the property and assets of AOL have been pledged as collateral, subject to customary exceptions. | ||||||||
Interest on borrowings under the Credit Facility Agreement is payable at rates per annum equal to, at the option of AOL: (1) a fluctuating base rate equal to JPMorgan’s adjusted base rate (“ABR”) plus the applicable margin, or (2) a periodic fixed rate equal to the Eurodollar rate plus the applicable margin. The ABR will be the highest of (i) the federal funds rate plus 0.5%, (ii) JPMorgan’s publicly announced prime rate and (iii) one-month LIBOR plus 1.0%. The applicable margin relating to any Eurodollar loan is 2.0% and the applicable margin relating to any ABR loan is 1.0%. AOL is required to pay a commitment fee of 0.5% per annum based on the unused portion of the commitments under the Credit Facility Agreement. | ||||||||
The Credit Facility Agreement contains various affirmative, negative and financial covenants. Financial covenants in the agreement include a ratio of debt (net of unrestricted cash up to an agreed cap) to EBITDA (as defined in the Credit Facility Agreement, "EBITDA") and a ratio of EBITDA to interest expense. The debt to EBITDA ratio must not exceed a specified maximum. The EBITDA to interest expense ratio requires the Company to meet or exceed a specified minimum. Each of the above ratios are tested at the end of each fiscal quarter and measured on a rolling four-quarter basis. To date, the Company is in compliance with its covenants under the Credit Facility Agreement. | ||||||||
Any amounts outstanding under the Credit Facility Agreement will be due and payable on July 1, 2018, and the commitments thereunder will terminate on such date. The Company intends to use borrowings under the Credit Facility Agreement for general corporate purposes. | ||||||||
On August 4, 2014, the Company repaid $30.0 million of borrowings under the Credit Facility Agreement. The Company repaid the remaining $75.0 million outstanding on September 11, 2014, through use of the proceeds from the convertible senior notes discussed below. As of September 30, 2014 there were no amounts outstanding under the Credit Facility Agreement and the available borrowing capacity was $250 million. | ||||||||
Convertible Senior Notes | ||||||||
On August 14, 2014, the Company issued $379.5 million aggregate principal amount of 0.75% convertible senior notes due September 1, 2019 (the “Notes”) through a private placement. The Company sold the Notes under a purchase agreement, dated August 13, 2014, with Goldman, Sachs & Co. (“Goldman Sachs”) and J.P. Morgan Securities LLC (“J.P. Morgan”) as representatives of the several purchasers (the “Initial Purchasers”). The Notes were issued under an indenture, dated as of August 19, 2014 (the "Indenture") between the Company and The Bank of New York Mellon, as trustee. | ||||||||
The net proceeds from the Company's sale of the Notes were approximately $369.1 million, net of issuance costs of $10.4 million. The Company used $40.0 million of the net proceeds from this offering to repurchase shares of its common stock from the purchasers of Notes in this offering in privately negotiated transactions through Goldman Sachs as its agent. These repurchases are part of the 2014 Stock Repurchase Program discussed in "Note 7". The Company used $36.6 million of the net proceeds to pay the cost of the convertible note hedge transactions (after such cost was partially offset by the proceeds to the Company from the sale of warrants pursuant to the warrant transactions) as described below under “Note Hedge and Warrant Arrangements.” The Company used $75.0 million of the net proceeds to repay borrowings under the Credit Facility Agreement discussed above. The Company expects to use the remaining net proceeds from the offering of the Notes for general corporate purposes including, but not limited to, additional share repurchases, acquisitions or other strategic transactions and working capital. | ||||||||
Under the Indenture, the Notes bear interest at a rate of 0.75% per year payable semiannually in arrears in cash on March 1 and September 1 of each year, beginning on March 1, 2015. The Notes will mature on September 1, 2019, unless earlier converted or repurchased in accordance with their terms. The Notes rank senior in right of payment to all of the Company’s indebtedness that is expressly subordinated in right of payment to the Notes, will rank equally in right of payment with all of the Company’s existing and future liabilities that are not so subordinated, will be effectively junior to any of the Company's secured indebtedness to the extent of the value of the assets securing such indebtedness (including amounts outstanding under the Company’s current credit facility) and will be structurally subordinated to all indebtedness and other liabilities (including trade payables) of the Company’s subsidiaries. | ||||||||
If the Company undergoes a fundamental change, subject to certain conditions, holders of the Notes may require the Company to purchase for cash all or a part of their Notes in principal amounts of $1,000 or a multiple thereof at a repurchase price equal to 100% of the principal amount of Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, following certain corporate events that occur prior to maturity, the Company will increase the conversion rate for a holder who elects to convert its Notes in connection with such a corporate event in certain circumstances. In such event, an aggregate of up to 2.3 million additional shares of common stock could be issued upon conversions in connection with such corporate events, subject to adjustment in the same manner as the conversion rate. | ||||||||
The Notes will be convertible into cash, shares of common stock, or a combination of cash and shares of common stock, at the Company’s election based on an initial conversion rate of 17.4456 shares of common stock per $1,000 principal amount of Notes (which is equivalent to an initial conversion price of approximately $57.32 per share of common stock) subject to customary adjustments. Holders may convert their Notes at their option at any time prior to the close of business on the business day immediately preceding May 1, 2019 upon the occurrence of certain events in the future, as defined in the Indenture. On or after May 1, 2019 to the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes, regardless of the foregoing conditions. The Company's intent is to settle the principal amount of the Notes in cash upon conversion. If the conversion value exceeds the principal amount, the Company would deliver shares of its common stock in respect to the remainder of its conversion obligation in excess of the aggregate principal amount (the "conversion spread"). The conversion spread would be included in the denominator for the computation of diluted net income per common share, using the treasury stock method. As of September 30, 2014, none of the conditions allowing holders of the Notes to convert have been met. | ||||||||
Accounting guidance requires that convertible debt that can be settled for cash, such as the Notes, be separated into the liability and equity component at issuance and each be assigned a value. The value assigned to the liability component is the estimated fair value, as of the issuance date, of a similar debt without the conversion feature. The difference between the principal amount of the Notes and estimated fair value of the liability component, representing the value of the conversion premium assigned to the equity component, is recorded as a debt discount on the issuance date. The fair value of the liability component of the Notes was determined using a | ||||||||
discounted cash flow analysis, in which the projected interest and principal payments were discounted | ||||||||
back to the issuance date of the Notes at a market yield, and represents a Level 3 fair value measurement. The Company estimated the straight debt yield by modeling the convertible note as a combination of a straight debt and a European call option. This required the use of a combination of inputs for similar assets observable in the market place to determine a yield on similar instruments without a conversion option and a significant unobservable input to estimate the future volatility of the Company's stock. The Company's stock volatility was estimated at 40% based on historical AOL stock price volatilities, as well as implied volatilities from option contracts traded immediately prior to the issuance date of the Notes. The Company estimated the straight debt borrowing rates at issuance to be 5.39% for similar debt to the Notes without the conversion feature, which resulted in a fair value of the liability component of approximately $301.5 million and a debt discount of $78.0 million. As a result, a conversion premium of $45.4 million, net of tax, was recorded in additional paid-in capital within stockholders' equity. The debt discount is amortized to interest expense using the effective interest method over the period from the issuance date through the contractual maturity date of the Notes on September 1, 2019. | ||||||||
In accounting for the transaction costs related to the Note issuance, the Company allocated the total amount incurred to the liability and equity components based on their relative fair values. Issuance costs attributable to the liability component were recorded within other assets on the condensed consolidated balance sheet and are being amortized to expense over the term of the Notes using the effective interest method. Issuance costs attributable to the equity component were recorded as a charge to additional paid-in capital within stockholders' equity. | ||||||||
Balances attributable to the Notes consist of the following (in millions): | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Liability component: | ||||||||
Principal | $ | 379.5 | $ | — | ||||
Less: note discount | 76.4 | — | ||||||
Net carrying amount | $ | 303.1 | $ | — | ||||
Equity component* | $ | 75.7 | $ | — | ||||
(*) Recorded in the condensed consolidated balance sheet in additional-paid-in capital within stockholders' equity. | ||||||||
The Notes are carried at their original issuance value, net of unamortized debt discount, and are not marked to market each period. The approximate fair value of the Notes as of September 30, 2014, was $394.2 million. The fair value of the Notes was estimated on the basis of inputs that are observable in the market and are considered Level 2 in the fair value hierarchy. | ||||||||
The Company recognized interest expense related to the Notes of $2.1 million for the three and nine months ended September 30, 2014, consisting of $0.3 million for the contractual coupon interest, $1.6 million for the accretion of the convertible note discount and $0.2 million for the amortization of deferred transaction costs. | ||||||||
Note Hedge and Warrant Arrangements | ||||||||
In connection with the sale of the Notes, the Company entered into privately negotiated note hedge transactions relating to approximately 6.6 million shares of common stock (the "Note Hedges") with certain option counterparties (the “Option Counterparties”). The Note Hedges represent call options from the Option Counterparties with respect to $379.5 million aggregate principal amount of the Notes. The strike price of the Note Hedges is $57.32 with a maturity date of September 1, 2019. These Note Hedges are designed to offset the Company’s exposure to potential dilution and/or amounts the Company is required to pay in excess of the principal amount of converted Notes upon conversion of the Notes in the event that the market value per share of the Common Stock at the time of exercise is greater than the strike price of the Note Hedges (which strike price corresponds to the initial conversion price of the Notes, subject to certain customary adjustments). During the three months ended September 30, 2014, the Company paid $70.1 million for the Note Hedges. | ||||||||
Separately, the Company also entered into privately negotiated warrant transactions with the Option Counterparties giving them the right to purchase in aggregate up to 13.2 million shares of common stock from the Company at a strike price of $84.92 per share. The warrant transactions will have a dilutive effect with respect to the Company’s common stock to the extent that the market price per share of its common stock exceeds the strike price of $84.92 per share of the warrants on or prior to the expiration date of the warrants. The warrants expire over a three month period beginning on December 2, 2019. During the three months ended September 30, 2014, the Company received $33.5 million in proceeds from the issuance of warrants. | ||||||||
The Note Hedges and warrants are not marked to market. The Note Hedges and the warrant transactions are separate transactions, entered into by the Company with the Option Counterparties and are not part of the terms of the Notes and will not affect the holders’ rights under the Notes. In addition, holders of the Notes will not have any rights with respect to the Note Hedges or the Warrants. The value of the Note Hedges and warrants were initially recorded to and continue to be classified as additional paid-in capital within stockholders' equity. |
Income_Taxes_Income_Taxes_Note
Income Taxes Income Taxes (Notes) | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
INCOME TAXES | |
For the three months ended September 30, 2014, the Company earned income before income tax of $42.3 million and incurred income tax expense of $14.4 million, which resulted in an effective tax rate of 34.0%, as compared to an effective tax rate of 89.7% for the three months ended September 30, 2013. The effective tax rate for the three months ended September 30, 2014 did not materially differ from the statutory U.S. federal income tax rate of 35.0%, primarily due to the favorable tax impact of additional deductions that produced a tax benefit in the current quarter offset by the tax impact of foreign losses that did not produce a tax benefit. The effective tax rate for the three months ended September 30, 2013 differed from the statutory U.S. federal income tax rate of 35.0% primarily due to the tax impact of a goodwill impairment charge, foreign losses that did not produce a tax benefit and the size of these items relative to the Company's pre-tax income. | |
For the nine months ended September 30, 2014, the Company earned income before income tax of $119.2 million and incurred income tax expense of $55.2 million, which resulted in an effective tax rate of 46.3%, as compared to an effective tax rate of 51.2% for the nine months ended September 30, 2013. The effective tax rates for the nine months ended September 30, 2014 and 2013 differed from the statutory U.S. federal income tax rate of 35.0% primarily due to the tax impact of foreign losses that did not produce a tax benefit. The impact of the foreign losses on the effective tax rate for the nine months ended September 30, 2014 was partially offset by the favorable impact of additional deductions that produced a tax benefit during the third quarter. |
Stockholders_Equity_Stockholde
Stockholders' Equity Stockholders' Equity (Notes) | 9 Months Ended |
Sep. 30, 2014 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
STOCKHOLDERS’ EQUITY | |
AOL is authorized to issue up to 660 million shares of all classes of stock, consisting of 60 million shares of preferred stock, par value $0.01 per share (“Preferred Stock”), and 600 million shares of common stock, par value $0.01 per share. In August 2012, in connection with the Tax Asset Protection Plan, AOL filed a Certificate of Designation to its Amended and Restated Certificate of Incorporation creating a series of approximately 0.1 million shares of Preferred Stock designated as Series A Junior Participating Preferred Stock, par value $0.01 per share (the “Series A Preferred Stock”). The Series A Preferred Stock has the voting and such other rights as provided for in the Certificate of Designation. Rights and privileges associated with shares of Preferred Stock are subject to authorization by the Company’s Board of Directors (the “Board”) and may differ from those of any and all other series at any time outstanding. All shares of common stock will be identical and will entitle the holders thereof to the same rights and privileges. | |
During the nine months ended September 30, 2014, the Company recorded a $34.2 million increase to additional paid-in capital as a result of equity-based compensation transactions. Included in this amount was $51.4 million related to expense incurred under AOL’s equity-based compensation plan and $1.5 million related to a portion of the fair value of converted awards that was included in the purchase price of recent acquisitions, partially offset by a reduction of $18.1 million related to tax withholdings on the vesting of restricted stock units (“RSUs”). | |
2013 Stock Repurchase Program | |
Concurrent with the closing of the Credit Facility Agreement, the Company announced on July 8, 2013 that the Board approved a second stock repurchase program in 2013 (the “July 2013 Stock Repurchase Program”), which authorized AOL to repurchase up to $150 million of its outstanding shares of common stock through July 8, 2014. Repurchases were subject to market conditions, share price and other factors, and were made in accordance with applicable securities laws. | |
During the nine months ended September 30, 2014, the Company repurchased a total of 1.6 million shares under the July 2013 Stock Repurchase Program at a weighted-average price of $36.84 per share (approximately $58.6 million). | |
2014 Stock Repurchase Program | |
On July 28, 2014, the Board approved a new stock repurchase program (the "2014 Stock Repurchase Program"), which authorizes AOL to repurchase up to $150 million of its outstanding shares of common stock from time to time over the twelve months following the announcement of the program, depending on market conditions, share price and other factors. The repurchases may be made in accordance with applicable securities laws in the open market, in block trades, pursuant to pre-arranged trading plans or otherwise and may include derivative transactions. The 2014 Stock Repurchase Program may be suspended or discontinued at any time. | |
During the three and nine months ended September 30, 2014, the Company repurchased a total of 0.9 million shares under the 2014 Stock Repurchase Program at a weighted-average price of $42.46 per share (approximately $40 million). |
EquityBased_Compensation_Equit
Equity-Based Compensation Equity-Based Compensation (Notes) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | |||||||||||||||
EQUITY-BASED COMPENSATION | ||||||||||||||||
Equity-Based Compensation Expense | ||||||||||||||||
Compensation expense recognized by AOL related to its equity-based compensation plans is as follows (in millions): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock options | $ | 2.4 | $ | 2.8 | $ | 7 | $ | 8.6 | ||||||||
Restricted stock, RSUs and PSUs | 18.5 | 8.5 | 43 | 21.4 | ||||||||||||
Employee Stock Purchase Program | 0.4 | 0.5 | 1.4 | 1.4 | ||||||||||||
Total equity-based compensation expense | $ | 21.3 | $ | 11.8 | $ | 51.4 | $ | 31.4 | ||||||||
Tax benefit recognized | $ | 8.2 | $ | 4.6 | $ | 20 | $ | 12.3 | ||||||||
As of September 30, 2014, the Company had 6.0 million stock options and 4.0 million restricted stock, RSUs and Performance Stock Units (“PSUs”) outstanding to employees, advisors and non-employee directors. The weighted-average exercise price of the stock options and the weighted-average grant date fair value of the restricted stock, RSUs and PSUs outstanding as of September 30, 2014 were $22.82 and $39.32, respectively. | ||||||||||||||||
As of September 30, 2014, total unrecognized compensation cost related to unvested AOL stock option awards was $12.6 million and is expected to be recognized over a weighted-average period of approximately 2.0 years. Total unrecognized compensation cost as of September 30, 2014 related to unvested restricted stock, RSUs and PSUs was $93.7 million and is expected to be recognized over a weighted-average period of approximately 2.0 years. To the extent the actual forfeiture rate is different from what the Company has estimated, equity-based compensation expense related to these awards will be different from the Company’s expectations. | ||||||||||||||||
AOL Stock Options | ||||||||||||||||
The assumptions presented in the table below represent the weighted-average value of the applicable assumption used to value AOL stock options at their grant date for stock options granted during the periods presented: | ||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Expected volatility | 38.9 | % | 37.4 | % | ||||||||||||
Expected term to exercise from grant date | 4.89 years | 5.03 years | ||||||||||||||
Risk-free rate | 1.5 | % | 1 | % | ||||||||||||
Expected dividend yield | — | % | — | % |
Restructuring_Costs_Restructur
Restructuring Costs Restructuring Costs (Notes) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
Restructuring and Related Activities Disclosure [Text Block] | ' | |||||||||||
RESTRUCTURING COSTS | ||||||||||||
As part of the Company’s continuing effort to reduce its expenses and invest in areas of strategic focus, the Company incurred restructuring costs of $1.2 million and $15.7 million for the three and nine months ended September 30, 2014, respectively. | ||||||||||||
A summary of AOL’s restructuring activity for the nine months ended September 30, 2014 is as follows (in millions): | ||||||||||||
Employee | Other Exit | Total | ||||||||||
Terminations | Costs | |||||||||||
Liability at December 31, 2013 | $ | 15.7 | $ | 0.8 | $ | 16.5 | ||||||
Restructuring expense | 13.6 | 2.1 | 15.7 | |||||||||
Foreign currency translation and other adjustments | (0.2 | ) | — | (0.2 | ) | |||||||
Cash paid | (25.6 | ) | (1.1 | ) | (26.7 | ) | ||||||
Liability at September 30, 2014 | $ | 3.5 | $ | 1.8 | $ | 5.3 | ||||||
At September 30, 2014, of the remaining liability of $5.3 million, $5.0 million was classified as a current liability within accrued expenses and other current liabilities, with the remaining $0.3 million classified within other long-term liabilities in the condensed consolidated balance sheets. Amounts classified as long-term are expected to be paid through 2017. |
Commitments_and_Contingencies_
Commitments and Contingencies Commitments and Contingencies (Notes) | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
COMMITMENTS AND CONTINGENCIES | |
Commitments | |
For a description of AOL’s commitments see “Note 10” to the Company’s audited consolidated financial statements included in the Annual Report. | |
Contingencies | |
AOL is a party to a variety of claims, suits and proceedings that arise in the normal course of business, including actions with respect to intellectual property claims, tax matters, labor and unemployment claims, commercial claims, claims related to the Company’s business model for content creation and other matters. While the results of such normal course claims, suits and proceedings cannot be predicted with certainty, management does not believe that, based on current knowledge and the likely timing of resolution of various matters, any additional reasonably possible potential losses above the amount accrued for such matters would be material to the Company’s financial statements. Regardless of the outcome, legal proceedings can have an adverse effect on AOL because of defense costs, diversion of management resources and other factors. | |
Security Incident | |
On April 28, 2014, the Company announced a security incident that involved unauthorized access to its network and systems (the “security incident”). | |
As a result of its investigation of the security incident, the Company has determined that there was unauthorized access to information regarding a significant number of user accounts. This information included AOL users’ email addresses, postal addresses, address book contact information, encrypted passwords and encrypted answers to security questions that the Company asks when a user resets his or her password, as well as certain employee information. The Company believes that the individuals or entities have used this contact information to send “spoofed” emails that appeared to come from roughly 2% of its email accounts. There is no indication that the encryption on the passwords or on the answers to security questions was broken or that the incident resulted in disclosure of users’ financial information, including debit and credit cards, which is also fully encrypted. | |
The Company's investigation of the security incident is complete, and there is no indication that the Company has incurred or will incur a material loss associated with the security incident. |
Segment_Information_Segment_In
Segment Information Segment Information (Notes) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | |||||||||||||||||||
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, 2014. | ||||||||||||||||||||
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, 2014 and 2013 is as follows (in millions): | ||||||||||||||||||||
Brand | Membership | AOL | Corporate | Consolidated | ||||||||||||||||
Group | Group | Platforms | and Other | Total | ||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||
Revenues from external customers | ||||||||||||||||||||
Advertising and other | $ | 170.4 | $ | 32.7 | $ | 270.3 | $ | — | $ | 473.4 | ||||||||||
Subscription | — | 153.4 | — | — | 153.4 | |||||||||||||||
Revenues from transactions with other segments | 16.9 | 10.6 | 1.6 | (29.1 | ) | — | ||||||||||||||
Total revenues | $ | 187.3 | $ | 196.7 | $ | 271.9 | $ | (29.1 | ) | $ | 626.8 | |||||||||
Adjusted OIBDA | $ | 17 | $ | 139.2 | $ | (0.6 | ) | $ | (33.8 | ) | $ | 121.8 | ||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
Revenues from external customers | ||||||||||||||||||||
Advertising and other | $ | 505.3 | $ | 108.6 | $ | 744.6 | $ | — | $ | 1,358.50 | ||||||||||
Subscription | — | 458.4 | — | — | 458.4 | |||||||||||||||
Revenues from transactions with other segments | 46.5 | 29.8 | 5.2 | (81.5 | ) | — | ||||||||||||||
Total revenues | $ | 551.8 | $ | 596.8 | $ | 749.8 | $ | (81.5 | ) | $ | 1,816.90 | |||||||||
Adjusted OIBDA | $ | 31.9 | $ | 420.6 | $ | (9.1 | ) | $ | (92.8 | ) | $ | 350.6 | ||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Revenues from external customers | ||||||||||||||||||||
Advertising and other | $ | 176.1 | $ | 38.8 | $ | 184.8 | $ | — | $ | 399.7 | ||||||||||
Subscription | — | 161.6 | — | — | 161.6 | |||||||||||||||
Revenues from transactions with other segments | 16.4 | 4.1 | 3.9 | (24.4 | ) | — | ||||||||||||||
Total revenues | $ | 192.5 | $ | 204.5 | $ | 188.7 | $ | (24.4 | ) | $ | 561.3 | |||||||||
Adjusted OIBDA | $ | 10.9 | $ | 149.8 | $ | (7.1 | ) | $ | (33.8 | ) | $ | 119.8 | ||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Revenues from external customers | ||||||||||||||||||||
Advertising and other | $ | 527.9 | $ | 117.9 | $ | 501.1 | $ | 0.6 | $ | 1,147.50 | ||||||||||
Subscription | — | 493.4 | — | — | 493.4 | |||||||||||||||
Revenues from transactions with other segments | 44.5 | 18.5 | 8.9 | (71.9 | ) | — | ||||||||||||||
Total revenues | $ | 572.4 | $ | 629.8 | $ | 510 | $ | (71.3 | ) | $ | 1,640.90 | |||||||||
Adjusted OIBDA | $ | 4.6 | $ | 447.8 | $ | (20.9 | ) | $ | (98.1 | ) | $ | 333.4 | ||||||||
The following table presents the Company’s reconciliation of Adjusted OIBDA to operating income (in millions): | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Operating income | $ | 48 | $ | 16.7 | $ | 126.2 | $ | 118.5 | ||||||||||||
Add: Depreciation | 33.5 | 32 | 100.6 | 97.4 | ||||||||||||||||
Add: Amortization of intangible assets | 16.9 | 11.1 | 48.6 | 29.7 | ||||||||||||||||
Add: Restructuring costs | 1.2 | 19 | 15.7 | 28.1 | ||||||||||||||||
Add: Equity-based compensation | 21.3 | 11.8 | 51.4 | 31.4 | ||||||||||||||||
Add: Asset impairments and write-offs | 1.1 | 29 | 12.3 | 30.4 | ||||||||||||||||
Add: Losses/(gains) on disposal of assets, net | (0.2 | ) | 0.2 | (4.2 | ) | (2.1 | ) | |||||||||||||
Adjusted OIBDA | $ | 121.8 | $ | 119.8 | $ | 350.6 | $ | 333.4 | ||||||||||||
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 | ||||||||||||||||||||
The following table presents revenues in different geographical locations (in millions): | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
United States | $ | 554.6 | $ | 498.5 | $ | 1,613.90 | $ | 1,456.30 | ||||||||||||
United Kingdom | 21.7 | 22.7 | 65.1 | 70.8 | ||||||||||||||||
Germany | 15.7 | 9.7 | 41.4 | 28 | ||||||||||||||||
Canada | 14.3 | 12.7 | 36.1 | 35.4 | ||||||||||||||||
Japan | 7.4 | 8.1 | 22.7 | 24.4 | ||||||||||||||||
Other international | 13.1 | 9.6 | 37.7 | 26 | ||||||||||||||||
Total international | 72.2 | 62.8 | 203 | 184.6 | ||||||||||||||||
Total revenues | $ | 626.8 | $ | 561.3 | $ | 1,816.90 | $ | 1,640.90 | ||||||||||||
Revenues are attributed to countries based on the location of customers. |
Description_of_Business_Basis_1
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Reclassifications [Policy Text Block] | ' |
Reclassifications | |
Advertising revenues and other revenues have been combined for all periods into a single advertising and other revenues line in the condensed consolidated statement of comprehensive income, given the immateriality of other revenues to total revenues for all periods presented. | |
Basis of Consolidation [Policy Text Block] | ' |
Basis of Consolidation | |
The condensed consolidated financial statements include 100% of the assets, liabilities, revenues, expenses and cash flows of AOL and all voting interest entities in which AOL has a controlling voting interest (“subsidiaries”) and variable interest entities in which AOL is the primary beneficiary in accordance with the consolidation accounting guidance. Intercompany accounts and transactions between consolidated companies have been eliminated in consolidation. The consolidated balances of the Company’s variable interest entities are not material to the Company’s condensed consolidated financial statements for the periods presented. | |
The financial position and operating results of the majority of AOL’s foreign operations are consolidated using the local currency as the functional currency. Local currency assets and liabilities are translated at the rates of exchange on the balance sheet date, and local currency revenues and expenses are translated at average rates of exchange during the period. Resulting translation gains or losses are included in the condensed consolidated balance sheet as a component of accumulated other comprehensive income (loss), net and in the condensed consolidated statement of comprehensive income (loss) as a component of other comprehensive income (loss), net of tax. | |
Redeemable Noncontrolling Interest [Policy Text Block] | ' |
Redeemable Noncontrolling Interest | |
The noncontrolling interest in a joint venture between Mitsui & Company Ltd. and AOL (“Ad.com Japan”) is classified outside of permanent equity in the Company’s condensed consolidated balance sheet for all periods presented due to a redemption right available to the noncontrolling interest holder in the future. The noncontrolling interest holder’s right to redeem its stock is exercisable any time between July 1 and July 30 of any year, commencing with July 1, 2014. This right was not exercised during July 2014. Net income in the condensed consolidated statements of comprehensive income (loss) reflects 100% of the results of Ad.com Japan for the three and nine months ended September 30, 2014 and 2013 as the Company has a controlling financial interest in the entity. Net income is subsequently adjusted to exclude AOL’s noncontrolling interests to arrive at net income attributable to AOL Inc. | |
Use of Estimates [Policy Text Block] | ' |
Use of Estimates | |
The preparation of the financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates, judgments and assumptions that affect the amounts reported in the condensed consolidated financial statements and footnotes thereto. Actual results could differ from those estimates. Significant estimates inherent in the preparation of the condensed consolidated financial statements include asset impairments, reserves established for doubtful accounts, equity-based compensation, depreciation and amortization, business combinations, income taxes, litigation matters and contingencies. | |
Interim Financial Statements [Policy Text Block] | ' |
Interim Financial Statements | |
The interim condensed consolidated financial statements are unaudited; however, in the opinion of management, they contain all the adjustments (consisting of those of a normal recurring nature) considered necessary to present fairly the financial position, the results of operations and cash flows for the periods presented in conformity with GAAP applicable to interim periods. The interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of AOL in the Annual Report. | |
Recently Adopted Accounting Standards [Policy Text Block] | ' |
Recently Adopted Accounting Standards | |
Accounting for Cumulative Translation Adjustments | |
In March 2013, new guidance was issued related to accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. The new guidance clarifies that companies are required to apply the guidance in the foreign currency accounting subtopic to release any related cumulative translation adjustment into net income. The guidance also applies to step acquisitions. | |
The new guidance became effective for us in January 2014. The new guidance does not have a material impact on the way the Company currently releases cumulative translation adjustments into net income upon disposition or deconsolidation of a subsidiary. | |
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | |
In July 2013, new guidance was issued related to the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The objective of the new guidance is to eliminate the diversity in financial statement reporting practices by requiring the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carryforward that would apply in settlement of uncertain tax positions. | |
The new guidance became effective for the Company in January 2014 and resulted in the offsetting of approximately $7 million of uncertain tax positions against deferred tax assets as of September 30, 2014. |
Income_per_Common_Share_Tables
Income per Common Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | ' | |||||||||||||||
Schedule Of Earnings Per Share Basic And Diluted [Table Text Block] | ' | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income attributable to AOL Inc. common stockholders | $ | 28.5 | $ | 2 | $ | 66 | $ | 56.4 | ||||||||
Shares used in computing basic income per common share | 78.3 | 77.3 | 79.2 | 77.1 | ||||||||||||
Dilutive effect of equity-based awards | 3.9 | 3.9 | 4.1 | 4.3 | ||||||||||||
Shares used in computing diluted income per common share | 82.2 | 81.2 | 83.3 | 81.4 | ||||||||||||
Basic net income per common share | $ | 0.36 | $ | 0.03 | $ | 0.83 | $ | 0.73 | ||||||||
Diluted net income per common share | $ | 0.35 | $ | 0.02 | $ | 0.79 | $ | 0.69 | ||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||
Goodwill [Table Text Block] | ' | |||||||||||||||||||
A summary of changes in the Company’s goodwill during the nine months ended September 30, 2014 is as follows (in millions): | ||||||||||||||||||||
31-Dec-13 | Acquisitions | Dispositions | Translation | September 30, | ||||||||||||||||
and Other | 2014 | |||||||||||||||||||
Adjustments | ||||||||||||||||||||
Brand Group | ||||||||||||||||||||
Gross Goodwill | $ | 283.5 | $ | 46.1 | $ | (1.9 | ) | $ | — | $ | 327.7 | |||||||||
Net Goodwill | 283.5 | 46.1 | (1.9 | ) | — | 327.7 | ||||||||||||||
Membership Group | ||||||||||||||||||||
Gross Goodwill | 605 | — | — | (0.7 | ) | 604.3 | ||||||||||||||
Net Goodwill | 605 | — | — | (0.7 | ) | 604.3 | ||||||||||||||
AOL Platforms | ||||||||||||||||||||
Gross Goodwill | 473.2 | 83.6 | — | (2.5 | ) | 554.3 | ||||||||||||||
Net Goodwill | 473.2 | 83.6 | — | (2.5 | ) | 554.3 | ||||||||||||||
Patch | ||||||||||||||||||||
Gross Goodwill | 17.5 | — | (17.5 | ) | — | — | ||||||||||||||
Impairments | (17.5 | ) | — | 17.5 | — | — | ||||||||||||||
Net Goodwill | — | — | — | — | — | |||||||||||||||
Corporate and Other | ||||||||||||||||||||
Gross Goodwill | 35,625.10 | — | — | — | 35,625.10 | |||||||||||||||
Impairments | (35,625.1 | ) | — | — | — | (35,625.1 | ) | |||||||||||||
Net Goodwill | — | — | — | — | — | |||||||||||||||
Consolidated | ||||||||||||||||||||
Gross Goodwill | 37,004.30 | 129.7 | (19.4 | ) | (3.2 | ) | 37,111.40 | |||||||||||||
Impairments | (35,642.6 | ) | — | 17.5 | — | (35,625.1 | ) | |||||||||||||
Net Goodwill | $ | 1,361.70 | $ | 129.7 | $ | (1.9 | ) | $ | (3.2 | ) | $ | 1,486.30 | ||||||||
LongTerm_Debt_and_Other_Financ1
Long-Term Debt and Other Financing Arrangements Long-Term Debt and Other Financing Arrangements (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Instrument [Line Items] | ' | |||||||
Schedule of Debt [Table Text Block] | ' | |||||||
Balances attributable to the Notes consist of the following (in millions): | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Liability component: | ||||||||
Principal | $ | 379.5 | $ | — | ||||
Less: note discount | 76.4 | — | ||||||
Net carrying amount | $ | 303.1 | $ | — | ||||
Equity component* | $ | 75.7 | $ | — | ||||
EquityBased_Compensation_Equit1
Equity-Based Compensation Equity-Based Compensation (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | ' | |||||||||||||||
Compensation expense recognized by AOL related to its equity-based compensation plans is as follows (in millions): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock options | $ | 2.4 | $ | 2.8 | $ | 7 | $ | 8.6 | ||||||||
Restricted stock, RSUs and PSUs | 18.5 | 8.5 | 43 | 21.4 | ||||||||||||
Employee Stock Purchase Program | 0.4 | 0.5 | 1.4 | 1.4 | ||||||||||||
Total equity-based compensation expense | $ | 21.3 | $ | 11.8 | $ | 51.4 | $ | 31.4 | ||||||||
Tax benefit recognized | $ | 8.2 | $ | 4.6 | $ | 20 | $ | 12.3 | ||||||||
Schedule Of Share Based Payment Award Stock Options Valuation Assumptions [Table Text Block] | ' | |||||||||||||||
The assumptions presented in the table below represent the weighted-average value of the applicable assumption used to value AOL stock options at their grant date for stock options granted during the periods presented: | ||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Expected volatility | 38.9 | % | 37.4 | % | ||||||||||||
Expected term to exercise from grant date | 4.89 years | 5.03 years | ||||||||||||||
Risk-free rate | 1.5 | % | 1 | % | ||||||||||||
Expected dividend yield | — | % | — | % |
Restructuring_Costs_Restructur1
Restructuring Costs Restructuring Costs (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | ' | |||||||||||
A summary of AOL’s restructuring activity for the nine months ended September 30, 2014 is as follows (in millions): | ||||||||||||
Employee | Other Exit | Total | ||||||||||
Terminations | Costs | |||||||||||
Liability at December 31, 2013 | $ | 15.7 | $ | 0.8 | $ | 16.5 | ||||||
Restructuring expense | 13.6 | 2.1 | 15.7 | |||||||||
Foreign currency translation and other adjustments | (0.2 | ) | — | (0.2 | ) | |||||||
Cash paid | (25.6 | ) | (1.1 | ) | (26.7 | ) | ||||||
Liability at September 30, 2014 | $ | 3.5 | $ | 1.8 | $ | 5.3 | ||||||
Segment_Information_Segment_In1
Segment Information Segment Information (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Schedule Of Segment Reporting Information By Segment [Table Text Block] | ' | |||||||||||||||||||
Segment information for the three and nine months ended September 30, 2014 and 2013 is as follows (in millions): | ||||||||||||||||||||
Brand | Membership | AOL | Corporate | Consolidated | ||||||||||||||||
Group | Group | Platforms | and Other | Total | ||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||
Revenues from external customers | ||||||||||||||||||||
Advertising and other | $ | 170.4 | $ | 32.7 | $ | 270.3 | $ | — | $ | 473.4 | ||||||||||
Subscription | — | 153.4 | — | — | 153.4 | |||||||||||||||
Revenues from transactions with other segments | 16.9 | 10.6 | 1.6 | (29.1 | ) | — | ||||||||||||||
Total revenues | $ | 187.3 | $ | 196.7 | $ | 271.9 | $ | (29.1 | ) | $ | 626.8 | |||||||||
Adjusted OIBDA | $ | 17 | $ | 139.2 | $ | (0.6 | ) | $ | (33.8 | ) | $ | 121.8 | ||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
Revenues from external customers | ||||||||||||||||||||
Advertising and other | $ | 505.3 | $ | 108.6 | $ | 744.6 | $ | — | $ | 1,358.50 | ||||||||||
Subscription | — | 458.4 | — | — | 458.4 | |||||||||||||||
Revenues from transactions with other segments | 46.5 | 29.8 | 5.2 | (81.5 | ) | — | ||||||||||||||
Total revenues | $ | 551.8 | $ | 596.8 | $ | 749.8 | $ | (81.5 | ) | $ | 1,816.90 | |||||||||
Adjusted OIBDA | $ | 31.9 | $ | 420.6 | $ | (9.1 | ) | $ | (92.8 | ) | $ | 350.6 | ||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Revenues from external customers | ||||||||||||||||||||
Advertising and other | $ | 176.1 | $ | 38.8 | $ | 184.8 | $ | — | $ | 399.7 | ||||||||||
Subscription | — | 161.6 | — | — | 161.6 | |||||||||||||||
Revenues from transactions with other segments | 16.4 | 4.1 | 3.9 | (24.4 | ) | — | ||||||||||||||
Total revenues | $ | 192.5 | $ | 204.5 | $ | 188.7 | $ | (24.4 | ) | $ | 561.3 | |||||||||
Adjusted OIBDA | $ | 10.9 | $ | 149.8 | $ | (7.1 | ) | $ | (33.8 | ) | $ | 119.8 | ||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Revenues from external customers | ||||||||||||||||||||
Advertising and other | $ | 527.9 | $ | 117.9 | $ | 501.1 | $ | 0.6 | $ | 1,147.50 | ||||||||||
Subscription | — | 493.4 | — | — | 493.4 | |||||||||||||||
Revenues from transactions with other segments | 44.5 | 18.5 | 8.9 | (71.9 | ) | — | ||||||||||||||
Total revenues | $ | 572.4 | $ | 629.8 | $ | 510 | $ | (71.3 | ) | $ | 1,640.90 | |||||||||
Adjusted OIBDA | $ | 4.6 | $ | 447.8 | $ | (20.9 | ) | $ | (98.1 | ) | $ | 333.4 | ||||||||
Reconciliation Of Operating Profit Loss From Segments To Consolidated [Table Text Block] | ' | |||||||||||||||||||
The following table presents the Company’s reconciliation of Adjusted OIBDA to operating income (in millions): | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Operating income | $ | 48 | $ | 16.7 | $ | 126.2 | $ | 118.5 | ||||||||||||
Add: Depreciation | 33.5 | 32 | 100.6 | 97.4 | ||||||||||||||||
Add: Amortization of intangible assets | 16.9 | 11.1 | 48.6 | 29.7 | ||||||||||||||||
Add: Restructuring costs | 1.2 | 19 | 15.7 | 28.1 | ||||||||||||||||
Add: Equity-based compensation | 21.3 | 11.8 | 51.4 | 31.4 | ||||||||||||||||
Add: Asset impairments and write-offs | 1.1 | 29 | 12.3 | 30.4 | ||||||||||||||||
Add: Losses/(gains) on disposal of assets, net | (0.2 | ) | 0.2 | (4.2 | ) | (2.1 | ) | |||||||||||||
Adjusted OIBDA | $ | 121.8 | $ | 119.8 | $ | 350.6 | $ | 333.4 | ||||||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | ' | |||||||||||||||||||
The following table presents revenues in different geographical locations (in millions): | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
United States | $ | 554.6 | $ | 498.5 | $ | 1,613.90 | $ | 1,456.30 | ||||||||||||
United Kingdom | 21.7 | 22.7 | 65.1 | 70.8 | ||||||||||||||||
Germany | 15.7 | 9.7 | 41.4 | 28 | ||||||||||||||||
Canada | 14.3 | 12.7 | 36.1 | 35.4 | ||||||||||||||||
Japan | 7.4 | 8.1 | 22.7 | 24.4 | ||||||||||||||||
Other international | 13.1 | 9.6 | 37.7 | 26 | ||||||||||||||||
Total international | 72.2 | 62.8 | 203 | 184.6 | ||||||||||||||||
Total revenues | $ | 626.8 | $ | 561.3 | $ | 1,816.90 | $ | 1,640.90 | ||||||||||||
Revenues are attributed to countries based on the location of customers. |
Description_of_Business_Basis_2
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Accounting Policies | ' | ' | ' | ' |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | ' | ' | $7 | ' |
Percentage Of Subsidiary Consolidated Into Parent | 100.00% | 100.00% | 100.00% | 100.00% |
Income_per_Common_Share_Detail
Income per Common Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share, Basic and Diluted [Abstract] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 8 | 1.2 | 3.3 | 1.2 |
Net income attributable to AOL Inc. common stockholders | $28.50 | $2 | $66 | $56.40 |
Shares used in computing basic income per common share | 78.3 | 77.3 | 79.2 | 77.1 |
Dilutive effect of equity-based awards | 3.9 | 3.9 | 4.1 | 4.3 |
Shares used in computing diluted income per common share | 82.2 | 81.2 | 83.3 | 81.4 |
Basic net income per common share | $0.36 | $0.03 | $0.83 | $0.73 |
Diluted net income per common share | $0.35 | $0.02 | $0.79 | $0.69 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 21 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 |
Goodwill [Roll Forward] | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period, gross | ' | ' | $37,004.30 | ' | ' | ' |
Balance at the beginning of the period, impairments | 0 | -17.5 | 0 | -17.5 | -35,642.60 | -35,625.10 |
Balance at the beginning of the period | ' | ' | 1,361.70 | ' | ' | ' |
Acquisitions, gross | ' | ' | 129.7 | ' | ' | ' |
Dispositions, gross | ' | ' | -19.4 | ' | ' | ' |
Translation and other adjustments, gross | ' | ' | -3.2 | ' | ' | ' |
Acquisitions, impairments | ' | ' | 0 | ' | ' | ' |
Dispositions, impairments | ' | ' | 17.5 | ' | ' | ' |
Translation and other adjustments, impairments | ' | ' | 0 | ' | ' | ' |
Acquisitions | ' | ' | 129.7 | ' | ' | ' |
Dispositions | ' | ' | -1.9 | ' | ' | ' |
Translation and other adjustments | ' | ' | -3.2 | ' | ' | ' |
Balance at the end of the period, gross | 37,111.40 | ' | 37,111.40 | ' | 37,004.30 | 37,111.40 |
Balance at the end of the period, impairments | 0 | -17.5 | 0 | -17.5 | -35,642.60 | -35,625.10 |
Balance at the end of the period | 1,486.30 | ' | 1,486.30 | ' | 1,361.70 | 1,486.30 |
Brand Group [Member] | ' | ' | ' | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period, gross | ' | ' | 283.5 | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 283.5 | ' | ' | ' |
Acquisitions, gross | ' | ' | 46.1 | ' | ' | ' |
Dispositions, gross | ' | ' | -1.9 | ' | ' | ' |
Translation and other adjustments, gross | ' | ' | 0 | ' | ' | ' |
Acquisitions | ' | ' | 46.1 | ' | ' | ' |
Dispositions | ' | ' | -1.9 | ' | ' | ' |
Translation and other adjustments | ' | ' | 0 | ' | ' | ' |
Balance at the end of the period, gross | 327.7 | ' | 327.7 | ' | ' | 327.7 |
Balance at the end of the period | 327.7 | ' | 327.7 | ' | ' | 327.7 |
Membership Group [Member] | ' | ' | ' | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period, gross | ' | ' | 605 | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 605 | ' | ' | ' |
Acquisitions, gross | ' | ' | 0 | ' | ' | ' |
Dispositions, gross | ' | ' | 0 | ' | ' | ' |
Translation and other adjustments, gross | ' | ' | -0.7 | ' | ' | ' |
Acquisitions | ' | ' | 0 | ' | ' | ' |
Dispositions | ' | ' | 0 | ' | ' | ' |
Translation and other adjustments | ' | ' | -0.7 | ' | ' | ' |
Balance at the end of the period, gross | 604.3 | ' | 604.3 | ' | ' | 604.3 |
Balance at the end of the period | 604.3 | ' | 604.3 | ' | ' | 604.3 |
AOL Platforms [Member] | ' | ' | ' | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period, gross | ' | ' | 473.2 | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 473.2 | ' | ' | ' |
Acquisitions, gross | ' | ' | 83.6 | ' | ' | ' |
Dispositions, gross | ' | ' | 0 | ' | ' | ' |
Translation and other adjustments, gross | ' | ' | -2.5 | ' | ' | ' |
Acquisitions | ' | ' | 83.6 | ' | ' | ' |
Dispositions | ' | ' | 0 | ' | ' | ' |
Translation and other adjustments | ' | ' | -2.5 | ' | ' | ' |
Balance at the end of the period, gross | 554.3 | ' | 554.3 | ' | ' | 554.3 |
Balance at the end of the period | 554.3 | ' | 554.3 | ' | ' | 554.3 |
Patch Segment [Member] | ' | ' | ' | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period, gross | ' | ' | 17.5 | ' | ' | ' |
Balance at the beginning of the period, impairments | ' | ' | ' | ' | -17.5 | 0 |
Balance at the beginning of the period | ' | ' | 0 | ' | ' | ' |
Acquisitions, gross | ' | ' | 0 | ' | ' | ' |
Dispositions, gross | ' | ' | -17.5 | ' | ' | ' |
Translation and other adjustments, gross | ' | ' | 0 | ' | ' | ' |
Acquisitions, impairments | ' | ' | 0 | ' | ' | ' |
Dispositions, impairments | ' | ' | 17.5 | ' | ' | ' |
Translation and other adjustments, impairments | ' | ' | 0 | ' | ' | ' |
Acquisitions | ' | ' | 0 | ' | ' | ' |
Dispositions | ' | ' | 0 | ' | ' | ' |
Translation and other adjustments | ' | ' | 0 | ' | ' | ' |
Balance at the end of the period, gross | 0 | ' | 0 | ' | 17.5 | 0 |
Balance at the end of the period, impairments | ' | ' | ' | ' | -17.5 | 0 |
Balance at the end of the period | 0 | ' | 0 | ' | 0 | 0 |
CorporateAndOther [Member] | ' | ' | ' | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period, gross | ' | ' | 35,625.10 | ' | ' | ' |
Balance at the beginning of the period, impairments | ' | ' | ' | ' | -35,625.10 | -35,625.10 |
Balance at the beginning of the period | ' | ' | 0 | ' | ' | ' |
Acquisitions, gross | ' | ' | 0 | ' | ' | ' |
Dispositions, gross | ' | ' | 0 | ' | ' | ' |
Translation and other adjustments, gross | ' | ' | 0 | ' | ' | ' |
Acquisitions, impairments | ' | ' | 0 | ' | ' | ' |
Dispositions, impairments | ' | ' | 0 | ' | ' | ' |
Translation and other adjustments, impairments | ' | ' | 0 | ' | ' | ' |
Acquisitions | ' | ' | 0 | ' | ' | ' |
Dispositions | ' | ' | 0 | ' | ' | ' |
Translation and other adjustments | ' | ' | 0 | ' | ' | ' |
Balance at the end of the period, gross | 35,625.10 | ' | 35,625.10 | ' | 35,625.10 | 35,625.10 |
Balance at the end of the period, impairments | ' | ' | ' | ' | -35,625.10 | -35,625.10 |
Balance at the end of the period | $0 | ' | $0 | ' | $0 | $0 |
Business_Acquisitions_Disposit1
Business Acquisitions, Dispositions and Other Significant Transactions (Details) (USD $) | 0 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | ||||
In Millions, unless otherwise specified | Jul. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Jan. 23, 2014 | Jan. 23, 2014 | 6-May-14 | Sep. 30, 2014 | Sep. 30, 2014 | 6-May-14 | Jan. 29, 2014 | Jan. 29, 2014 |
Gravity member [Member] | Gravity member [Member] | Convertro Member [Member] | Convertro Member [Member] | Convertro Member [Member] | Convertro Member [Member] | Patch member [Member] | Patch member [Member] | ||||
Acquisitions Dispositions And Other Significant Transactions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition Fair Value Of Unvested Stock Options Converted To Acquiror Stock Compensation Expense | ' | ' | ' | ' | ' | ' | ' | ' | $2.10 | ' | ' |
Business Combination Compensation Expense | ' | ' | ' | 7.6 | ' | ' | ' | ' | ' | ' | ' |
Deferred compensation arrangement with individual, requisite service period term | ' | ' | ' | '2 years | ' | '2 years | ' | ' | ' | ' | ' |
Business Acquisition Fair Value Of Unvested Stock Options Converted To Acquirer Stock Allocated To Purchase Price | ' | ' | ' | ' | 0.8 | ' | ' | ' | ' | ' | ' |
Payments to Acquire Businesses, Gross | ' | ' | ' | ' | ' | 89 | ' | ' | ' | ' | ' |
Joint Venture Percentage Interest Acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% |
Restricted Stock issued during period | ' | ' | ' | 5.9 | ' | 1.4 | ' | ' | ' | ' | ' |
Goodwill Acquired During Period | ' | 129.7 | ' | 46.1 | ' | 73.3 | ' | ' | ' | ' | ' |
Fair value of retained interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.8 |
Loss on disposition of business | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.1 | ' |
Acquired intangible assets | ' | ' | ' | 40.4 | ' | 28.3 | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Remaining Amortization Period | ' | ' | ' | '5 years | ' | '5 years | ' | ' | ' | ' | ' |
Borrowings under the credit facility agreement | ' | 105 | 0 | ' | ' | 75 | ' | ' | ' | ' | ' |
Other Deferred Compensation Arrangements, Liability, Current and Noncurrent | ' | ' | ' | ' | ' | ' | ' | ' | 9 | ' | ' |
Payments To Acquire Businesses Net Of Cash Acquired | ' | 192.6 | 336.9 | 83.2 | ' | 98.6 | ' | ' | ' | ' | ' |
Business Combination, Contingent Consideration, Liability | ' | ' | ' | ' | ' | ' | 6.6 | 6.6 | 8.9 | ' | ' |
Business Combination, Contingent Consideration, Liability, Current | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | ' | ' | ' | ' | ' | ' | ' | 2.3 | ' | ' | ' |
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | ' | ' | ' | ' | ' | ' | 2.5 | ' | ' | ' | ' |
Accretion Expense | ' | ' | ' | ' | ' | ' | ' | 0.2 | ' | ' | ' |
Business combination, contingent liability, long-term portion | ' | ' | ' | ' | ' | ' | ' | ' | 2.9 | ' | ' |
Business combination, Contingent Liability, gross | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' |
Business Combination Contingent Consideration Expense Recognition Period | ' | ' | ' | ' | ' | '17 months | ' | ' | ' | ' | ' |
Business Acquisition Fair Value Of Unvested Stock Options Converted To Acquiror Stock Allocated To Purchase Price | ' | ' | ' | ' | ' | ' | ' | ' | 0.7 | ' | ' |
Proceeds from Sale of Buildings | $33.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_and_Other_Financ2
Long-Term Debt and Other Financing Arrangements (Details) (USD $) | 0 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | |||||||||
Share data in Millions, except Per Share data, unless otherwise specified | Sep. 11, 2014 | Aug. 04, 2014 | Jul. 01, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Aug. 14, 2014 | Dec. 31, 2013 | Jul. 01, 2013 | Sep. 30, 2014 | Aug. 14, 2014 | Dec. 02, 2019 | ||
Convertible Debt [Member] | Convertible Debt [Member] | Subsequent Event [Member] | |||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Long-term Debt, Gross | ' | ' | ' | $379,500,000 | ' | ' | $0 | ' | ' | ' | ' | ||
Derivative, Price Risk Option Strike Price | ' | ' | ' | ' | ' | 57.32 | ' | ' | ' | ' | ' | ||
Line of Credit Facility, Remaining Borrowing Capacity | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ||
Proceeds from issuance of convertible notes | ' | ' | ' | 379,500,000 | 0 | ' | ' | ' | ' | ' | ' | ||
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.75% | ' | ||
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ||
Debt Instrument, Convertible, Number of Equity Instruments | ' | ' | ' | 2.3 | ' | ' | ' | ' | ' | ' | ' | ||
Debt Instrument, Convertible, Conversion Ratio | ' | ' | ' | 17.4456 | ' | ' | ' | ' | ' | ' | ' | ||
Debt Instrument, Convertible, Conversion Price | ' | ' | ' | ' | ' | $57.32 | ' | ' | ' | ' | ' | ||
Fair Value Assumptions, Expected Volatility Rate | ' | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' | ||
Debt Instrument, Interest Rate, Effective Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.39% | ' | ||
Notes Payable, Fair Value Disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | 301,500,000 | ' | ||
Proceeds from Debt, Net of Issuance Costs | ' | ' | ' | ' | ' | ' | ' | ' | 369,100,000 | ' | ' | ||
Payments of Debt Issuance Costs | ' | ' | ' | 10,400,000 | 3,100,000 | ' | ' | ' | 10,400,000 | ' | ' | ||
Convertible Debt Proceeds Used To Purchase Treasury Shares | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | ' | ||
Convertible Debt Proceeds Used To Purchase Hedge | ' | ' | ' | ' | ' | ' | ' | ' | 36,600,000 | ' | ' | ||
Debt Instrument, Applicable Margin Rate Related To Eurodollar Loan | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt Instrument, Adjusted Base Rate LIBOR Plus Applicable Margin | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt Instrument, Applicable Margin Rate Related To ABR Loan | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ||
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ||
Debt Instrument, Basis Spread on Variable Rate | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ||
Line of Credit Facility, Capacity Available for Trade Purchases | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ||
Line of Credit Facility, Expiration Date | ' | ' | ' | 1-Jul-18 | ' | ' | ' | ' | ' | ' | ' | ||
Repayments of Lines of Credit | 75,000,000 | 30,000,000 | ' | 105,000,000 | 0 | ' | ' | ' | ' | ' | ' | ||
Equity component of convertible senior notes, net of tax (Note 5) | ' | ' | ' | 45,400,000 | ' | ' | ' | ' | ' | ' | ' | ||
Line of Credit Facility, Initiation Date | ' | ' | ' | 1-Jul-13 | ' | ' | ' | ' | ' | ' | ' | ||
Debt Instrument, Unamortized Discount | ' | ' | ' | 76,400,000 | ' | ' | 0 | ' | ' | 78,000,000 | ' | ||
Convertible Debt, Noncurrent | ' | ' | ' | 303,100,000 | ' | ' | 0 | ' | ' | ' | ' | ||
Debt Instrument, Convertible, Carrying Amount of Equity Component | ' | ' | ' | ' | ' | ' | 0 | [1] | ' | 75,700,000 | [1] | ' | ' |
Convertible Debt, Fair Value Disclosures | ' | ' | ' | ' | ' | ' | ' | ' | 394,000,000 | ' | ' | ||
Interest Expense, Debt | ' | ' | ' | ' | ' | ' | ' | ' | 2,100,000 | ' | ' | ||
Interest Expense, Debt, Excluding Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' | ||
Accretion of convertible notes discount | ' | ' | ' | 1,600,000 | 0 | ' | ' | ' | 1,600,000 | ' | ' | ||
Amortization of debt issuance costs | ' | ' | ' | 700,000 | 200,000 | ' | ' | ' | 200,000 | ' | ' | ||
Own-share Lending Arrangement, Shares, Outstanding | ' | ' | ' | 6.6 | ' | ' | ' | ' | ' | ' | ' | ||
Payments for note hedges | ' | ' | ' | 70,100,000 | 0 | ' | ' | ' | ' | ' | ' | ||
Class of Warrant or Right, Outstanding | ' | ' | ' | 13.2 | ' | ' | ' | ' | ' | ' | ' | ||
Investment Warrants, Exercise Price | ' | ' | ' | $84.92 | ' | ' | ' | ' | ' | ' | ' | ||
Investment Warrants Expiration Date Range Start | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2-Dec-19 | ||
Proceeds from issuance of warrants | ' | ' | ' | 33,500,000 | 0 | ' | ' | ' | ' | ' | ' | ||
AdjustmentsToAdditionalPaidInCapitalNoteHedgeTransactions | ' | ' | ' | ($42,000,000) | ' | ' | ' | ' | ' | ' | ' | ||
[1] | (*) Recorded in the condensed consolidated balance sheet in additional-paid-in capital within stockholders' equity. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | $42.30 | $14.60 | $119.20 | $112.90 |
Income Tax Expense (Benefit) | $14.40 | $13.10 | $55.20 | $57.80 |
Effective Income Tax Rate Reconciliation, Percent | 34.00% | 89.70% | 46.30% | 51.20% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% | 35.00% |
Stockholders_Equity_Stockholde1
Stockholders' Equity Stockholders' Equity (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Jul. 08, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Jul. 28, 2014 | Dec. 31, 2013 | Jul. 08, 2013 | |
Stockholders' Equity Note [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Authorized All Classes | 660,000,000 | 660,000,000 | ' | ' | 660,000,000 | ' | ' | ' | ' |
Preferred Stock, Shares Authorized | 60,000,000 | 60,000,000 | ' | ' | 60,000,000 | ' | ' | ' | ' |
Preferred Stock, Par or Stated Value Per Share | $0.01 | $0.01 | ' | ' | $0.01 | ' | ' | ' | ' |
Common Stock, Shares Authorized | 600,000,000 | 600,000,000 | ' | ' | 600,000,000 | ' | ' | ' | ' |
Common Stock, Par or Stated Value Per Share | $0.01 | $0.01 | ' | ' | $0.01 | ' | ' | $0.01 | ' |
Preferred Stock Shares Authorized Designation | 100,000 | 100,000 | ' | ' | 100,000 | ' | ' | ' | ' |
Preferred Stock Shares Authorized Designation Par Value | $0.01 | $0.01 | ' | ' | $0.01 | ' | ' | ' | ' |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | ' | ' | ' | ' | $34,200,000 | $23,500,000 | ' | ' | ' |
Equity-based compensation | ' | 21,300,000 | 11,800,000 | ' | 51,400,000 | 31,400,000 | ' | ' | ' |
Business Acquisition Fair Value Of Unvested Stock Options Converted To Acquiror Stock | 1,500,000 | 1,500,000 | ' | ' | 1,500,000 | ' | ' | ' | ' |
Adjustments To Additional Paid In Capital Settlements Of Restricted Stock Units | ' | ' | ' | ' | 18,100,000 | ' | ' | ' | ' |
Stock Repurchase Program, Authorized Amount | ' | ' | ' | ' | ' | ' | 150,000,000 | ' | 150,000,000 |
Treasury Stock, Shares, Acquired | 900,000 | ' | ' | 1,600,000 | ' | ' | ' | ' | ' |
Treasury Stock Acquired, Average Cost Per Share | $42.46 | ' | ' | ' | $36.84 | ' | ' | ' | ' |
Repurchase of common stock | $40,000,000 | ' | ' | $58,600,000 | $98,600,000 | $102,200,000 | ' | ' | ' |
EquityBased_Compensation_Equit2
Equity-Based Compensation Equity-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Stock Option Plan Expense | $2.40 | $2.80 | $7 | $8.60 |
Restricted Stock Expense | 18.5 | 8.5 | 43 | 21.4 |
Employee Stock Ownership Plan (ESOP), Compensation Expense | 0.4 | 0.5 | 1.4 | 1.4 |
Share Based Compensation | 21.3 | 11.8 | 51.4 | 31.4 |
Employee Service Share Based Compensation Tax Benefit From Compensation Expense | 8.2 | 4.6 | 20 | 12.3 |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number | 6 | ' | 6 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 4 | ' | 4 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $22.82 | ' | $22.82 | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Grant Date Fair Value | $39.32 | ' | $39.32 | ' |
Employee Service Share Based Compensation Nonvested Option Awards Total Compensation Cost Not Yet Recognized | 12.6 | ' | 12.6 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | '2 years 0 months 0 days | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $93.70 | ' | $93.70 | ' |
Employee Service Share Based Compensation Nonvested Option Awards Total Compensation Cost Not Yet Recognized Period For Recognition | ' | ' | '2 years 0 months 0 days | ' |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate | ' | ' | 38.90% | 37.40% |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Term | ' | ' | '4 years 10 months 19 days | '5 years 0 months 11 days |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate | ' | ' | 1.50% | 1.00% |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate | ' | ' | 0.00% | 0.00% |
Restructuring_Costs_Details
Restructuring Costs (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring costs | $1.20 | $19 | $15.70 | $28.10 |
Restructuring Reserve Current | 5 | ' | 5 | ' |
Restructuring Reserve Noncurrent | 0.3 | ' | 0.3 | ' |
Employee Severance Member | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Liability at the beginning of the period | ' | ' | 15.7 | ' |
Restructuring Reserve Accrual Adjustment | ' | ' | 13.6 | ' |
Restructuring Reserve Translation Adjustment | ' | ' | -0.2 | ' |
Cash paid for restructuring | ' | ' | -25.6 | ' |
Liability at the end of the period | 3.5 | ' | 3.5 | ' |
Other Exit Costs [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Liability at the beginning of the period | ' | ' | 0.8 | ' |
Restructuring Reserve Accrual Adjustment | ' | ' | 2.1 | ' |
Restructuring Reserve Translation Adjustment | ' | ' | 0 | ' |
Cash paid for restructuring | ' | ' | -1.1 | ' |
Liability at the end of the period | 1.8 | ' | 1.8 | ' |
Restructuring Charges [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Liability at the beginning of the period | ' | ' | 16.5 | ' |
Restructuring Reserve Accrual Adjustment | ' | ' | 15.7 | ' |
Restructuring Reserve Translation Adjustment | ' | ' | -0.2 | ' |
Cash paid for restructuring | ' | ' | -26.7 | ' |
Liability at the end of the period | $5.30 | ' | $5.30 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) | Apr. 28, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ' |
Percentage of email accounts affected | 2.00% |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Advertising and other | $473.40 | $399.70 | $1,358.50 | $1,147.50 |
Subscription | 153.4 | 161.6 | 458.4 | 493.4 |
Revenues From Transactions With Other Segments | 0 | 0 | 0 | 0 |
Total revenues | 626.8 | 561.3 | 1,816.90 | 1,640.90 |
Adjusted OIBDA | 121.8 | 119.8 | 350.6 | 333.4 |
Operating income | 48 | 16.7 | 126.2 | 118.5 |
Depreciation | 33.5 | 32 | 100.6 | 97.4 |
Amortization of intangible assets | 16.9 | 11.1 | 48.6 | 29.7 |
Restructuring costs | 1.2 | 19 | 15.7 | 28.1 |
Equity-based compensation | 21.3 | 11.8 | 51.4 | 31.4 |
Asset impairments and write-offs | 1.1 | 29 | 12.3 | 30.4 |
(Gain) loss on disposal of assets, net | -0.2 | 0.2 | -4.2 | -2.1 |
United States | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | 554.6 | 498.5 | 1,613.90 | 1,456.30 |
United Kingdom | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | 21.7 | 22.7 | 65.1 | 70.8 |
Germany | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | 15.7 | 9.7 | 41.4 | 28 |
Canada | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | 14.3 | 12.7 | 36.1 | 35.4 |
Japan | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | 7.4 | 8.1 | 22.7 | 24.4 |
Other International | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | 13.1 | 9.6 | 37.7 | 26 |
Total International | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | 72.2 | 62.8 | 203 | 184.6 |
Brand Group [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Advertising and other | 170.4 | 176.1 | 505.3 | 527.9 |
Subscription | 0 | 0 | 0 | 0 |
Revenues From Transactions With Other Segments | 16.9 | 16.4 | 46.5 | 44.5 |
Total revenues | 187.3 | 192.5 | 551.8 | 572.4 |
Adjusted OIBDA | 17 | 10.9 | 31.9 | 4.6 |
Membership Group [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Advertising and other | 32.7 | 38.8 | 108.6 | 117.9 |
Subscription | 153.4 | 161.6 | 458.4 | 493.4 |
Revenues From Transactions With Other Segments | 10.6 | 4.1 | 29.8 | 18.5 |
Total revenues | 196.7 | 204.5 | 596.8 | 629.8 |
Adjusted OIBDA | 139.2 | 149.8 | 420.6 | 447.8 |
AOL Platforms [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Advertising and other | 270.3 | 184.8 | 744.6 | 501.1 |
Subscription | 0 | 0 | 0 | 0 |
Revenues From Transactions With Other Segments | 1.6 | 3.9 | 5.2 | 8.9 |
Total revenues | 271.9 | 188.7 | 749.8 | 510 |
Adjusted OIBDA | -0.6 | -7.1 | -9.1 | -20.9 |
CorporateAndOther [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Advertising and other | 0 | 0 | 0 | 0.6 |
Subscription | 0 | 0 | 0 | 0 |
Revenues From Transactions With Other Segments | -29.1 | -24.4 | -81.5 | -71.9 |
Total revenues | -29.1 | -24.4 | -81.5 | -71.3 |
Adjusted OIBDA | ($33.80) | ($33.80) | ($92.80) | ($98.10) |