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<HTML><HEAD><META content="text/html; charset=utf-8" /></HEAD><BODY><DIV><FONT size="2"><P>1.        DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES<BR/><BR/>Description of Business<BR/><BR/>Time Warner Inc. (“Time Warner” or the “Company”) is a leading media and entertainment company, whose businesses include television networks, filmed entertainment, publishing and interactive services. Time Warner classifies its operations into four reportable segments: Networks: consisting principally of cable television networks that provide programming; Filmed Entertainment: consisting principally of feature film, television and home video production and distribution; Publishing: consisting principally of magazine publishing; and AOL: consisting principally of interactive consumer and advertising services. Financial information for Time Warner’s various reportable segments is presented in Note 11.<BR/><BR/>Changes in Basis of Presentation<BR/><BR/>The 2008 financial information has been recast so that the basis of presentation is consistent with that of the 2009 financial information. This recast reflects (i) the financial condition and results of operations of Time Warner Cable Inc. (“TWC”) as discontinued operations for all periods presented, (ii) the adoption of Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards (“Statement”) No. 160, Noncontrolling Interests in Consolidated Financial Statements – an amendment of ARB No. 51 (“FAS 160”), (iii) the adoption of FASB Staff Position (“FSP”) Emerging Issues Task Force (“EITF”) Issue No. 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities (“FSP No. EITF 03-6-1”), and (iv) the 1-for-3 reverse stock split of the Company’s common stock that became effective on March 27, 2009.<BR/><BR/>TWC Separation from Time Warner <BR/><BR/>On March 12, 2009 (the “Distribution Record Date”), the Company disposed of all of its shares of TWC common stock. The disposition was made pursuant to a separation agreement entered into on May 20, 2008, among Time Warner, TWC and certain of their subsidiaries (the “Separation Agreement”) for the purpose of achieving the legal and structural separation of TWC from Time Warner (the “TWC Separation”). The TWC Separation was effected as a pro rata dividend of all shares of TWC common stock held by Time Warner in a spin-off (the “Distribution”) to Time Warner stockholders. <BR/><BR/>Prior to the Distribution Record Date, on March 12, 2009, TWC, in accordance with the terms of the Separation Agreement, paid a special cash dividend of $10.27 per share to all holders of TWC Class A Common Stock and TWC Class B Common Stock as of the close of business on March 11, 2009 (aggregating $10.856 billion) (the “Special Dividend”) that resulted in the receipt by Time Warner of $9.253 billion.<BR/><BR/>With the completion of the TWC Separation, the Company disposed of the Cable segment in its entirety. Accordingly, the Company has presented the financial condition and results of operations of the Cable segment as discontinued operations in the consolidated financial statements for all periods presented. For a summary of discontinued operations see Note 2.<BR/><BR/>Noncontrolling Interests<BR/><BR/>On January 1, 2009, the Company adopted the provisions of FAS 160. The provisions of FAS 160 establish accounting and reporting standards for the noncontrolling interest in a consolidated subsidiary, including the accounting treatment upon the deconsolidation of a subsidiary. FAS 160 is being applied prospectively, except for the provisions related to the presentation of noncontrolling interests. As of June 30, 2009 and December 31, 2008, noncontrolling interests of $360 million and $3.382 billion, respectively, have been classified as a component of equity in the consolidated balance sheet. For the three and six months ended June 30, 2009, net income attributable to noncontrolling interests of $11 million and $40 million, respectively, and for the three and six months ended June 30, 2008, net income attributable to noncontrolling interests of $51 million and $102 million, respectively, are included in net income. Earnings per share has not been affected as a result of the adoption of the provisions of FAS 160.<BR/><BR/>Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities<BR/><BR/>On January 1, 2009, the Company adopted the provisions of FSP No. EITF 03-6-1. The provisions of FSP No. EITF 03-6-1 require that all outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends or dividend equivalents (such as restricted stock units granted by the Company) be considered participating securities. Because the awards are participating securities, the Company is required to apply the two-class method of computing basic and diluted earnings per share (the “Two-Class Method”). The retrospective application of the provisions of FSP No. EITF 03-6-1 did not change any prior-period earnings per share amounts. <BR/><BR/>Basis of Presentation<BR/><BR/>Basis of Consolidation<BR/><BR/>The consolidated financial statements include 100% of the assets, liabilities, revenues, expenses and cash flows of Time Warner and all voting interest entities in which Time Warner has a controlling voting interest (“subsidiaries”). In addition, FASB Interpretation No. 46R, Consolidation of Variable Interest Entities (“FIN 46R”), applies to certain entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties (a “VIE”). The primary beneficiary of a VIE is the party that absorbs the majority of the entity’s expected losses, receives the majority of its expected residual returns, or both, as a result of holding variable interests. In accordance with FIN 46R, the Company consolidates those VIEs of which it is the primary beneficiary. Intercompany accounts and transactions between consolidated companies have been eliminated in consolidation.<BR/><BR/>The Company’s investments in entities determined to be VIEs principally consisted of certain investments in its Networks segment, primarily HBO Asia and HBO South Asia (collectively “HBO Asia”) and HBO Latin America Group (“HBO LAG”). For the three and six months ended June 30, 2009, HBO Asia and HBO LAG collectively had revenues of $115 million and $224 million, respectively, and operating income of $17 million and $41 million, respectively. As of June 30, 2009, total assets, liabilities and noncontrolling interest attributable to HBO Asia and HBO LAG were $887 million (including goodwill and intangible assets of $669 million), $145 million and $391 million, respectively. Such amounts are included in the consolidated statement of operations and consolidated balance sheet. See “Recent Accounting Standards Not Yet Adopted” for a description of amendments to the guidance on the accounting for VIEs.<BR/><BR/>The financial position and operating results of substantially all 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. Translation gains or losses of assets and liabilities are included in the consolidated statement of shareholders’ equity as a component of Accumulated other comprehensive income, net.<BR/><BR/>Reclassifications<BR/><BR/>Certain reclassifications have been made to the prior year information to conform to the June 30, 2009 presentation of the components of inventory. <BR/><BR/>Use of Estimates<BR/><BR/>The preparation of 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 consolidated financial statements and footnotes thereto. Actual results could differ from those estimates.<BR/><BR/>Significant estimates inherent in the preparation of the consolidated financial statements include reserves established for accounting for asset impairments, allowances for doubtful accounts, depreciation and amortization, film ultimate revenues, home video and magazine returns, business combinations, pension and other postretirement benefits, equity-based compensation, income taxes, contingencies, litigation matters and certain programming arrangements.<BR/><BR/>Interim Financial Statements<BR/><BR/>The 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, results of operations and cash flows for the periods presented in conformity with GAAP applicable to interim periods. The consolidated financial statements should be read in conjunction with the audited consolidated financial statements of Time Warner included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2008 (the “2008 Form 10-K”).<BR/><BR/>Recent Accounting Standards Adopted in 2009<BR/><BR/>In addition to the adoption of FAS 160 and FSP No. EITF 03-6-1 as discussed in “Changes in Basis of Presentation,” the Company has also adopted the following accounting standards in 2009:<BR/><BR/>Subsequent Events<BR/><BR/>On April 1, 2009, the Company adopted the provisions of FASB Statement No. FAS 165, Subsequent Events (“FAS 165”), on a prospective basis. The provisions of FAS 165 provide guidance related to the accounting for and disclosure of events that occur after the balance sheet date but before the financial statements are issued or are available to be issued. Additionally, FAS 165 requires the Company to disclose the date through which subsequent events have been evaluated, as well as whether that date is the date the financial statements were issued or the date the financial statements were available to be issued. For the three and six months ended June 30, 2009, the Company evaluated, for potential recognition and disclosure, events that occurred prior to the filing of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2009 on July 29, 2009. The adoption of the provisions of FAS 165 did not affect the Company’s historical consolidated financial statements. <BR/><BR/>Interim Disclosures about Fair Value of Financial Instruments<BR/><BR/>On April 1, 2009, the Company adopted the provisions of FSP No. FAS 107-1 and APB 28-1, Interim Disclosures about Fair Value of Financial Instruments (“FSP No. FAS 107-1 and APB 28-1”), on a prospective basis. This FSP amends FASB Statement No. 107, Disclosures about Fair Value of Financial Instruments, to require disclosures regarding fair value of financial instruments in interim financial statements, as well as in annual financial statements. The adoption of the provisions of FSP No. FAS 107-1 and APB 28-1 did not affect the Company’s historical consolidated financial statements. <BR/><BR/>Recognition and Presentation of Other-Than-Temporary-Impairments<BR/><BR/>On April 1, 2009, the Company adopted the provisions of FSP No. FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary-Impairments (“FSP No. FAS 115-2 and FAS 124-2”), on a prospective basis. This FSP incorporates impairment guidance for debt securities from various sources of authoritative literature and clarifies the interaction of the factors that should be considered when determining whether a debt security is other than temporarily impaired. The adoption of the provisions of FSP No. FAS 115-2 and FAS 124-2 did not affect the Company’s historical consolidated financial statements.<BR/><BR/>Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly<BR/><BR/>On April 1, 2009, the Company adopted the provisions of FSP No. FAS 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly (“FSP No. FAS 157-4”), on a prospective basis. This FSP provides additional guidance for estimating fair value in accordance with FASB Statement No. 157, Fair Value Measurements (“FAS 157”) when the volume and level of activity for the asset or liability have significantly decreased. This FSP also includes guidance on identifying circumstances that indicate if a transaction is not orderly (i.e., a forced liquidation or distressed sale). The adoption of the provisions of FSP No. FAS 157-4 did not affect the Company’s historical consolidated financial statements. <BR/><BR/>Fair Value Measurements<BR/><BR/>On January 1, 2009, the Company adopted the provisions of FAS 157 related to nonfinancial assets and liabilities on a prospective basis. FAS 157 establishes the authoritative definition of fair value, sets out a framework for measuring fair value and expands the required disclosures about fair value measurement. On January 1, 2008, the Company adopted the provisions of FAS 157 related to financial assets and liabilities as well as other assets and liabilities carried at fair value on a recurring basis. The adoption of the provisions of FAS 157 did not affect the Company’s historical consolidated financial statements. For more information, see Note 4.<BR/><BR/>Business Combinations<BR/><BR/>On January 1, 2009, the Company adopted the provisions of FASB Statement No. 141 (revised 2007), Business Combinations (“FAS 141R”), and is applying such provisions prospectively to business combinations that have an acquisition date on or after January 1, 2009. FAS 141R establishes principles and requirements for how an acquirer in a business combination (i) recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree, (ii) recognizes and measures goodwill acquired in a business combination or a gain from a bargain purchase, and (iii) determines what information to disclose to enable users of financial statements to evaluate the nature and financial effects of the business combination. In addition, changes in accounting for deferred tax asset valuation allowances and acquired income tax uncertainties after purchase accounting is completed will be recognized in earnings rather than as an adjustment to the cost of acquisition. This accounting treatment for deferred tax asset valuation allowances and acquired income tax uncertainties is applicable to acquisitions that occurred both prior and subsequent to the adoption of FAS 141R. The adoption of the provisions of FAS 141R did not affect the Company’s historical consolidated financial statements.<BR/><BR/>Disclosures about Derivative Instruments and Hedging Activities<BR/><BR/>On January 1, 2009, the Company adopted the provisions of FASB Statement No. 161, Disclosures about Derivative Instruments and Hedging Activities, an Amendment of FASB Statement No. 133 (“FAS 161”). The provisions of FAS 161 amend and expand the disclosure requirements for derivative instruments and hedging activities by requiring enhanced disclosures about (i) how and why an entity uses derivative instruments, (ii) how derivative instruments and related hedged items are accounted for under FAS 133 and its related interpretations, and (iii) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. The adoption of the provisions of FAS 161 requires prospective disclosures and accordingly did not affect the Company’s historical consolidated financial statements. For more information, see Note 10.<BR/><BR/>Accounting for Collaborative Arrangements<BR/><BR/>On January 1, 2009, the Company adopted the provisions of EITF Issue No. 07-1, Accounting for Collaborative Arrangements (“EITF 07-1”). EITF 07-1 defines collaborative arrangements and establishes accounting and reporting requirements for transactions between participants in the arrangement and third parties. The Company’s collaborative arrangements primarily relate to arrangements entered into with third parties to jointly finance and distribute theatrical productions. These arrangements, which are referred to as co-financing arrangements, take various forms. In most cases, the form of the arrangement is the sale of an economic interest in a film to an investor. The Filmed Entertainment segment generally records the amounts received for the sale of an economic interest as a reduction of the cost of the film, as the investor assumes full risk for that portion of the film asset acquired in these transactions. The substance of these arrangements is that the third-party investors own an interest in the film and, therefore, in each period the Company reflects in the statement of operations either a charge or benefit to costs of revenues to reflect the estimate of the third-party investor’s interest in the profits or losses incurred on the film. Consistent with the requirements of Statement of Position 00-2, Accounting by Producers or Distributors of Films (“SOP 00-2”), the estimate of the third-party investor’s interest in profits or losses incurred on the film is determined by reference to the ratio of actual revenue earned to date in relation to total estimated ultimate revenues. For the three months ended June 30, 2009 and 2008, participation costs of $109 million and $100 million, respectively, were recorded in costs of revenues and net amounts received from collaborators for which capitalized film costs were reduced was $104 million and $50 million, respectively. For the six months ended June 30, 2009 and 2008, participation costs of $177 million and $224 million, respectively, were recorded in costs of revenues and net amounts received from collaborators for which capitalized film costs were reduced was $142 million and $108 million, respectively. As of June 30, 2009 and December 31, 2008, the net amount due to collaborators for their share of participations was $227 million and $276 million, respectively, and was recorded in participations payable in the consolidated balance sheet. The provisions of EITF 07-1 did not affect the Company’s historical consolidated financial statements.<BR/><BR/>Recent Accounting Standards Not Yet Adopted<BR/><BR/>Hierarchy of Generally Accepted Accounting Principles<BR/><BR/>In June 2009, the FASB issued Statement No. 168, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles, a replacement of FASB Statement No. 162 (“FAS 168”), which establishes the FASB Accounting Standards Codification as the source of accounting principles and the framework for selecting the principles to be used in the preparation of financial statements. The provisions of FAS 168 will be applied prospectively beginning in the third quarter of 2009 and will have no impact on the Company’s consolidated financial statements.<BR/><BR/>Accounting for Transfers of Financial Assets<BR/><BR/>In June 2009, the FASB issued Statement No. 166, Accounting for Transfers of Financial Assets, an Amendment of FASB Statement No. 140 (“FAS 166”). The provisions of FAS 166 amend FASB Statement No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities (“FAS 140”), by removing the concept of a qualifying special-purpose entity and removing the exception from applying FASB Interpretation No. 46 (revised December 2003), Consolidation of Variable Interest Entities (“FIN46”), to variable interest entities that were previously considered qualifying special-purpose entities. The provisions of FAS 166 will become effective for Time Warner on January 1, 2010. The Company is currently evaluating the impact the provisions of FAS 166 will have on the Company’s consolidated financial statements.<BR/><BR/>Amendments to FASB Interpretation No. 46(R)<BR/><BR/>In June 2009, the FASB issued Statement No. 167, Amendments to FASB Interpretation No. 46 (“FAS 167”), which amends the definition of the primary beneficiary of a VIE and will require the Company to assess each reporting period if any of the Company’s variable interests give it a controlling financial interest in the applicable VIE. The provisions of FAS 167 will become effective for Time Warner on January 1, 2010. The Company is currently evaluating the impact the provisions of FAS 167 will have on the Company’s VIEs and its securitization programs.<BR/><BR/>Income Per Common Share<BR/><BR/>Basic income per common share is determined using the Two-Class Method and is computed by dividing net income attributable to Time Warner Inc. common shareholders by the weighted-average common shares outstanding during the period. The Two-Class Method is an earnings allocation formula that determines income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Diluted income per common share reflects the more dilutive earnings per share amount calculated using the treasury stock method or the Two-Class Method. For the three and six months ended June 30, 2009 and 2008, both the Two-Class Method and the treasury stock method calculation for diluted income per common share attributable to Time Warner Inc. common shareholders yielded the same result.<BR/><BR/>Set forth below is a reconciliation of basic and diluted income per common share from continuing operations (millions, except per share amounts):</P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Three Months Ended</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Six Months Ended</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/2009</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/2008</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/2009</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/2008</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B>(recast)</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B>(recast)</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Income from continuing operations attributable to </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">  Time Warner Inc. shareholders</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 519 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 564 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 1,074 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 1,112 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Income allocated to participating securities</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">  (restricted stock and restricted stock units)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (2)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (1)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (4)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (2)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Income from continuing operations attributable to </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">  Time Warner Inc. common shareholders</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">  — basic</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 517 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 563 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 1,070 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 1,110 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Average number of common shares outstanding</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">  — basic</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 1,195.2 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 1,193.3 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 1,195.6 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 1,193.1 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Dilutive effect of equity awards</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 10.2 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 7.8 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 7.2 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 7.3 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Average number of common shares outstanding</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">  — diluted</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 1,205.4 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 1,201.1 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 1,202.8 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 1,200.4 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Income per common share from continuing</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">  operations attributable to Time Warner Inc.</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">  common shareholders:</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">  Basic</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 0.43 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 0.47 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 0.89 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 0.93 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">  Diluted</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 0.43 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 0.47 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 0.89 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 0.93 </FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>Diluted income per common share for the three and six months ended June 30, 2009 and the three and six months ended June 30, 2008 excludes approximately 154 million and 169 million, respectively, and 129 million and 132 million, respectively, common shares that may be issued under the Company’s stock compensation plans because they do not have a dilutive effect.<BR/><BR/>Interim Impairment Testing of Goodwill at AOL<BR/><BR/>As discussed in more detail in Note 1 to the Company’s consolidated financial statements in the 2008 Form 10-K, goodwill and indefinite-lived intangible assets are tested annually for impairment during the fourth quarter or earlier upon the occurrence of certain events or substantive changes in circumstances. During the first quarter of 2009, the Company determined that, because the spin-off of AOL was more likely than not, the Company was required to test goodwill at AOL as of March 31, 2009 (the “interim testing date”).<BR/><BR/>In determining the fair value of AOL for the interim impairment analysis, the Company used a market based approach. The market based approach to determine fair value involves the exercise of judgment in identifying the relevant comparable company market multiples. The market multiples identified by the Company were multiplied by AOL’s 2009 earnings forecast in determining the estimated fair value of AOL. Such fair value exceeded AOL’s net book value and therefore did not result in an impairment charge.<BR/><BR/>If the fair value of the AOL reporting unit had been hypothetically lower by 20% at March 31, 2009, the fair value of the AOL reporting unit would have exceeded its book value. In addition, if the fair value of the AOL reporting unit had been hypothetically lower by 30% at March 31, 2009, the book value of the AOL reporting unit would have exceeded its fair value by approximately $100 million. If the book value of the AOL reporting unit had been greater than its fair value, the second step of the goodwill impairment test would have been required to be performed to determine the ultimate amount of impairment loss to recognize.</P></FONT></DIV></BODY></HTML>
<HTML><HEAD><META content="text/html; charset=utf-8" /></HEAD><BODY><DIV><FONT size="2"><P>2.        BUSINESS ACQUISITIONS, DISPOSITIONS AND RELATED TRANSACTIONS<BR/><BR/>AOL Separation from Time Warner<BR/><BR/>On May 28, 2009, Time Warner announced that its Board of Directors has authorized management to proceed with plans for the complete legal and structural separation of AOL from Time Warner (the “AOL Separation”). The AOL Separation is currently expected to be effected as a spin-off of AOL Holdings LLC, a wholly-owned subsidiary that will be converted to a corporation and renamed AOL Inc. prior to the spin-off. In the AOL Separation, Time Warner will distribute all its AOL Inc. common stock to Time Warner shareholders, and AOL will become an independent, publicly traded company. As of June 30, 2009, Time Warner owned 95% of AOL, and Google Inc. (“Google”) held the remaining 5%. On July 8, 2009, the Company repurchased Google’s 5% interest in AOL for $283 million in cash, which amount included a payment in respect of Google’s pro rata share of cash distributions to Time Warner by AOL attributable to the period of Google’s investment in AOL. After repurchasing this stake, Time Warner owns 100% of AOL. The AOL Separation is contingent on the satisfaction of a number of conditions, including the effectiveness of a registration statement on Form 10 that AOL filed with the Securities and Exchange Commission (the “SEC”) on July 27, 2009 in connection with the transaction. Time Warner expects to complete the AOL Separation around the end of the year.<BR/><BR/>Patch Acquisition<BR/><BR/>On June 10, 2009, AOL purchased Patch Media Corporation (“Patch”), a news, information and community platform business dedicated to providing comprehensive local information and services for individual towns and communities, for approximately $7 million in cash.  Approximately $700,000 of the consideration is being held in an indemnity escrow account until the first anniversary of the closing.  <BR/><BR/>At the time of closing, Tim Armstrong, AOL’s Chairman and Chief Executive Officer, held, indirectly, through Polar Capital Group, LLC (“Polar Capital”) (a private investment company which he founded), economic interests in Patch that entitled him to receive approximately 75% of the transaction consideration. Mr. Armstrong’s original investment in Patch, made in December 2007 through Polar Capital, was approximately $4.5 million. In connection with the transaction, Mr. Armstrong, through Polar Capital, waived his right to receive any transaction consideration in excess of his original $4.5 million investment, opting to accept only the return of his initial investment.  In addition, Mr. Armstrong elected to return the $4.5 million (approximately $450,000 of which is being held in the indemnity escrow account for a year) that he was entitled to receive in connection with the transaction to AOL, to be held by AOL until after the AOL Separation. As soon as legally permissible, following the AOL Separation, AOL will cause to be issued to Polar Capital an amount of AOL Inc. common stock equivalent to $4.5 million (based on an average of the high and low market prices on the relevant trading day). The issuance of shares of AOL Inc. common stock to Polar Capital will be exempt from registration under Section 4(2) of the Securities Act of 1933, as a transaction by an issuer not involving a public offering. The payment to Polar Capital of the $4.5 million of consideration is not contingent on the continued employment of Mr. Armstrong with AOL.<BR/><BR/>An appraisal of the value of the business was performed to determine that the consideration paid by AOL was within a reasonable range of the fair value of Patch. The Patch acquisition did not significantly affect the Company’s consolidated financial results for the three and six months ended June 30, 2009.<BR/><BR/>CME Investment<BR/><BR/>On May 18, 2009, the Company completed a $244 million investment in Central European Media Enterprises Ltd. (“CME”), in which the Company received a 31% economic interest and a 38% voting interest. CME is a broadcasting company operating leading networks in seven Central and Eastern European countries. In connection with its investment, Time Warner has agreed to allow CME founder and Non-Executive Chairman Ronald S. Lauder to vote Time Warner’s shares of CME for at least four years, subject to certain exceptions. Also, Mr. Lauder has agreed to support Time Warner’s appointment of two designees to CME’s board of directors. The Company’s investment in CME is being accounted for under the cost method of accounting.<BR/><BR/>Summary of Discontinued Operations<BR/><BR/>Discontinued operations for the six months ended June 30, 2009 and the three and six months June 30, 2008 reflect the financial condition and results of operations of TWC. Financial data for discontinued operations for the six months ended June 30, 2009 and the three and six months ended June 30, 2008 is as follows (millions, except per share amounts):</P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="14" height="44" align="left"><FONT size="2"> </FONT></TD><TD width="366" height="44" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="44" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="85" height="44" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Three Months Ended</B></FONT></TD><TD width="10" height="44" align="left"><FONT size="2"> </FONT></TD><TD colspan="5" width="180" height="44" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Six Months Ended</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="366" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD></TR><TR><TD width="14" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="366" height="5" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="366" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="85" height="14" align="center"><FONT size="2"><B>(recast)</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="85" height="14" align="center"><FONT size="2"><B>(recast)</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="366" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="85" height="14" align="center"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="366" height="14" align="left"><FONT size="2">Total revenues </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 4,298 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 3,443 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 8,458 </FONT></TD></TR><TR><TD width="14" height="7" align="left"><FONT size="2"> </FONT></TD><TD width="366" height="7" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="7" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="7" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="7" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="7" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="7" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="7" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="7" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="7" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="7" align="right"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="366" height="14" align="left"><FONT size="2">Pretax income </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 503 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 262 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 951 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="366" height="14" align="left"><FONT size="2">Income tax benefit (provision) </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (230)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (131)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (416)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="366" height="14" align="left"><FONT size="2">Net income </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 273 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 131 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 535 </FONT></TD></TR><TR><TD width="14" height="6" align="left"><FONT size="2"> </FONT></TD><TD width="366" height="6" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="6" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="6" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="6" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="6" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="6" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="6" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="6" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="6" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="6" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="366" height="14" align="left"><FONT size="2">Net income attributable to Time Warner Inc. shareholders </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 228 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 106 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 451 </FONT></TD></TR><TR><TD width="14" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="366" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="366" height="14" align="left"><FONT size="2"><B>Per share information attributable to Time Warner Inc.</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="366" height="14" align="left"><FONT size="2"><B>  common shareholders:</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="366" height="14" align="left"><FONT size="2">Basic net income per common share </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 0.19 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 0.09 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 0.38 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="366" height="14" align="left"><FONT size="2">Average common shares outstanding - basic</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 3px double #000000;border-bottom: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 3px double #000000;border-bottom: 3px double #000000;"><FONT size="2"> 1,193.3 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 3px double #000000;border-bottom: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 3px double #000000;border-bottom: 3px double #000000;"><FONT size="2"> 1,195.6 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 3px double #000000;border-bottom: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 3px double #000000;border-bottom: 3px double #000000;"><FONT size="2"> 1,193.1 </FONT></TD></TR><TR><TD width="14" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="366" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="366" height="14" align="left"><FONT size="2">Diluted net income per common share </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 0.19 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 0.09 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 0.37 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="366" height="14" align="left"><FONT size="2">Average common shares outstanding - diluted</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 3px double #000000;border-bottom: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 3px double #000000;border-bottom: 3px double #000000;"><FONT size="2"> 1,201.1 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 3px double #000000;border-bottom: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 3px double #000000;border-bottom: 3px double #000000;"><FONT size="2"> 1,202.8 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 3px double #000000;border-bottom: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 3px double #000000;border-bottom: 3px double #000000;"><FONT size="2"> 1,200.4 </FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>Discontinued operations for the six months ended June 30, 2009 included direct transaction costs (e.g., legal and professional fees) related to the separation of TWC of $75 million, and for the three and six months ended June 30, 2008, included such direct transaction and financing costs of $47 million and $49 million, respectively. The Networks segment of Time Warner recognized approximately $170 million of Subscription revenues from TWC in 2009 through the Distribution Record Date and $210 million and $420 million, respectively, for the three and six months ended June 30, 2008. <BR/></P></FONT></DIV></BODY></HTML>
<HTML><HEAD><META content="text/html; charset=utf-8" /></HEAD><BODY><DIV><FONT size="2"><P>3.         INVENTORIES AND FILM COSTS<BR/><BR/>Inventories and film costs consist of (millions):</P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="450" height="14" align="left"><FONT size="2"><B> </B></FONT><SUP><FONT size="1"><B></B></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>June 30, 2009</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>December 31, 2008</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="450" height="14" align="left"><FONT size="2">Inventories:</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="450" height="14" align="left"><FONT size="2">Programming costs, less amortization </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 3,251 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 3,206 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="450" height="14" align="left"><FONT size="2">DVDs, books, paper and other merchandise </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 303 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 408 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="450" height="14" align="left"><FONT size="2">Total inventories</FONT><SUP><FONT size="1">(a)</FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 3,554 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 3,614 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="450" height="14" align="left"><FONT size="2">Less: current portion of inventory </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (1,840)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (1,842)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="450" height="14" align="left"><FONT size="2">Total noncurrent inventories </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 1,714 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 1,772 </FONT></TD></TR><TR><TD width="14" height="8" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="450" height="8" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="450" height="14" align="left"><FONT size="2">Film costs — Theatrical:</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="450" height="14" align="left"><FONT size="2">Released, less amortization </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 657 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 767 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="450" height="14" align="left"><FONT size="2">Completed and not released </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 499 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 364 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="450" height="14" align="left"><FONT size="2">In production </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 642 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 713 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="450" height="14" align="left"><FONT size="2">Development and pre-production </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 101 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 76 </FONT></TD></TR><TR><TD width="14" height="8" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="450" height="8" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="right"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="450" height="14" align="left"><FONT size="2">Film costs — Television:</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="450" height="14" align="left"><FONT size="2">Released, less amortization </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 988 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 922 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="450" height="14" align="left"><FONT size="2">Completed and not released </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 80 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 224 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="450" height="14" align="left"><FONT size="2">In production </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 422 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 499 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="450" height="14" align="left"><FONT size="2">Development and pre-production </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 5 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 2 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="450" height="14" align="left"><FONT size="2">Total film costs </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 3,394 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 3,567 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="450" height="14" align="left"><FONT size="2">Total noncurrent inventories and film costs </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 5,108 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 5,339 </FONT></TD></TR><TR><TD width="14" height="8" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="450" height="8" align="left"><FONT size="2">_____________</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="8" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="450" height="8" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1">(a)</FONT></SUP><FONT size="2"> </FONT></TD><TD colspan="8" width="690" height="14" align="left"><FONT size="2">Does not include $1.900 billion and $2.160 billion of net film library costs as of June 30, 2009 and December 31, 2008, respectively, which are included in intangible assets subject to amortization in the consolidated balance sheet. The decrease in 2009 is primarily related to an adjustment of $174 million representing a change in cumulative participations payable with respect to film library titles at Warner Bros., which under SOP 00-2 is required to be recognized as a reduction to the related film cost.</FONT></TD></TR></TABLE></DIV></BODY></HTML>
<HTML><HEAD><META content="text/html; charset=utf-8" /></HEAD><BODY><DIV><FONT size="2"><P>4.         FAIR VALUE MEASUREMENTS<BR/><BR/>In accordance with FAS 157, a fair value measurement is determined based on the assumptions that a market participant would use in pricing an asset or liability. FAS 157 also established a three-tiered hierarchy that draws a distinction between market participant assumptions based on (i) observable inputs such as quoted prices in active markets (Level 1), (ii) inputs other than quoted prices in active markets that are observable either directly or indirectly (Level 2) and (iii) unobservable inputs that require the Company to use present value and other valuation techniques in the determination of fair value (Level 3). The following table presents information about assets and liabilities required to be carried at fair value on a recurring basis as of June 30, 2009 (millions):</P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="231" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD colspan="10" width="401" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Fair Value Measurements as of June 30, 2009 Using </B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="231" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> Fair Value
as of </B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="95" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B>Quoted Market Prices in Active Markets for Identical Assets </B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="96" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B>Significant Other Observable Inputs </B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B>Significant Unobservable Inputs </B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="231" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Description </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>June 30, 2009</B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="95" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>(Level 1) </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="96" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>(Level 2) </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>(Level 3) </B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="231" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="96" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="231" height="14" align="left"><FONT size="2">Assets:</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="96" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="231" height="14" align="left"><FONT size="2">  Trading securities</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 226 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 222 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="96" height="14" align="right"><FONT size="2"> 4 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> - </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="231" height="14" align="left"><FONT size="2">  Available-for-sale securities</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 39 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 10 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="96" height="14" align="right"><FONT size="2"> 29 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> - </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="231" height="14" align="left"><FONT size="2">  Derivatives</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 30 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 5 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="96" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 25 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="231" height="14" align="left"><FONT size="2">Liabilities:</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="96" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="231" height="14" align="left"><FONT size="2">  Derivatives</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (97)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="96" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (97)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="231" height="14" align="left"><FONT size="2">Total</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 198 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="95" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 237 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="96" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> (64)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 25 </FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>The Company primarily applies the market approach for valuing recurring fair value measurements. <BR/><BR/>The following table reconciles the beginning and ending balances of assets classified as Level 3 measurements and identifies the net income (losses) the Company recognized during the six months ended June 30, 2009 on such assets and liabilities that were included in the balance as of June 30, 2009 (millions): <BR/></P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="551" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="12" height="14" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Derivatives </B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="551" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="12" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="551" height="14" align="left"><FONT size="2">Balance as of January 1, 2009</FONT></TD><TD width="12" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 1 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="551" height="14" align="left"><FONT size="2">  Total gains (losses):</FONT></TD><TD width="12" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="551" height="14" align="left"><FONT size="2">    Included in net income</FONT></TD><TD width="12" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 8 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="551" height="14" align="left"><FONT size="2">    Included in other comprehensive income</FONT></TD><TD width="12" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> - </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="551" height="14" align="left"><FONT size="2">  Purchases, issuances and settlements</FONT></TD><TD width="12" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 16 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="551" height="14" align="left"><FONT size="2">Transfers in and/or out of Level 3</FONT></TD><TD width="12" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="551" height="14" align="left"><FONT size="2">Balance as of June 30, 2009</FONT></TD><TD width="12" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 25 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="551" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="12" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="551" height="14" align="left"><FONT size="2">Total gain for the six months ended June 30, 2009 included in</FONT></TD><TD width="12" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="551" height="14" align="left"><FONT size="2">  net income related to assets still held as of June 30, 2009</FONT></TD><TD width="12" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 8 </FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>Gains and losses recognized for assets and liabilities valued using significant unobservable inputs are reported in investment gains (losses), net, in other loss, net (Note 13).<BR/><BR/>Other Financial Instruments<BR/><BR/>Based on the interest rates prevailing at June 30, 2009, the carrying value of Time Warner’s debt approximates its fair value. The carrying value for the majority of the Company’s other financial instruments approximates fair value due to the short-term nature of such instruments. However, differences exist between the carrying value and fair value of the Company’s other financial instruments, but these differences are not significant at June 30, 2009. The fair value of financial instruments is generally determined by reference to the market value of the instrument as quoted on a national securities exchange or in an over-the-counter market. In cases where quoted market value is not available, fair value is based on an estimate using present value or other valuation techniques. <BR/><BR/>Non-Financial Instruments<BR/><BR/>The majority of the Company’s non-financial instruments, which include goodwill, intangible assets, inventories and property, plant and equipment, are not required to be carried at fair value on a recurring basis. However, if certain triggering events occur (or at least annually for goodwill and indefinite-lived intangible assets) such that a non-financial instrument is required to be evaluated for impairment, a resulting asset impairment would require that the non-financial instrument be recorded at the lower of historical cost or its fair value. <BR/><BR/>The Company accounts for film production costs in accordance with the guidance in SOP 00-2, which requires that upon the occurrence of an event or change in circumstance that may indicate that the fair value of a film is less than its unamortized costs, an entity should determine the fair value of the film and write off to the consolidated statement of operations the amount by which the unamortized capitalized costs exceed the film’s fair value. Some of these events or changes in circumstance include: (i) an adverse change in the expected performance of a film prior to its release, (ii) actual costs substantially in excess of budgeted costs, (iii) substantial delays in completion or release schedules, (iv) changes in release plans, (v) insufficient funding or resources to complete the film and to market it effectively and (vi) the failure of actual performance subsequent to release to meet that which had been expected prior to release. When required to determine the fair value of its films, the Company employs a discounted cash flow methodology with assumptions for cash flows for periods not exceeding 10 years. The discount rate utilized in the discounted cash flow analysis is based on the weighted average cost of capital of the respective business (e.g., Warner Bros.) plus a risk premium representing the risk associated with producing a particular film. The fair value of any film costs associated with a film that management plans to abandon is zero. As the primary determination of fair value is determined using a discounted cash flow model, the resulting fair value is considered a Level 3 input. During the three and six months ended June 30, 2009, certain film production costs, which were recorded as inventory in the consolidated balance sheet, were written down to zero and $43 million, respectively, from their carrying values of $38 million and $117 million, respectively.</P></FONT></DIV></BODY></HTML>
<HTML><HEAD><META content="text/html; charset=utf-8" /></HEAD><BODY><DIV><FONT size="2"><P>5.         LONG TERM DEBT AND OTHER FINANCING ARRANGEMENTS <BR/><BR/>Committed financing capacity and long-term debt consists of (millions):</P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="14" height="58" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="111" height="58" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="5" height="58" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="59" height="58" align="center"><FONT size="2"><B>Weighted Average Interest Rate at</B></FONT></TD><TD width="7" height="58" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="50" height="58" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="7" height="58" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="7" height="58" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="53" height="58" align="center"><FONT size="2"><B>2009 </B></FONT><SUP><FONT size="1"><B></B></FONT></SUP></TD><TD width="7" height="58" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="58" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="53" height="58" align="center"><FONT size="2"><B> </B></FONT><SUP><FONT size="1"><B></B></FONT></SUP></TD><TD width="7" height="58" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="7" height="58" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="67" height="58" align="center"><FONT size="2"><B>Unamortized Discount on</B></FONT></TD><TD width="7" height="58" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="7" height="58" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="58" height="58" align="center"><FONT size="2"><B>2009 Unused</B></FONT></TD><TD width="7" height="58" align="left"><FONT size="2"> </FONT></TD><TD colspan="5" width="145" height="58" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Outstanding Debt</B></FONT><SUP><FONT size="1"><B>(c)</B></FONT></SUP></TD></TR><TR><TD width="14" height="26" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="111" height="26" align="left"><FONT size="2"><B> </B></FONT><SUP><FONT size="1"><B></B></FONT></SUP></TD><TD width="5" height="26" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="59" height="26" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>June 30, 2009</B></FONT></TD><TD width="7" height="26" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="50" height="26" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Maturities</B></FONT></TD><TD width="7" height="26" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="7" height="26" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="53" height="26" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Committed Capacity </B></FONT><SUP><FONT size="1"><B>(a)</B></FONT></SUP></TD><TD width="7" height="26" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="26" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="53" height="26" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Letters of Credit </B></FONT><SUP><FONT size="1"><B>(b)</B></FONT></SUP></TD><TD width="7" height="26" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="7" height="26" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="67" height="26" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Commercial Paper</B></FONT></TD><TD width="7" height="26" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="7" height="26" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="58" height="26" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Committed Capacity</B></FONT></TD><TD width="7" height="26" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="7" height="26" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="58" height="26" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>June 30, 2009</B></FONT></TD><TD width="7" height="26" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="7" height="26" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="66" height="26" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>December 31, 2008</B></FONT><SUP><FONT size="1"><B></B></FONT></SUP></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="111" height="14" align="left"><FONT size="2"><B> </B></FONT><SUP><FONT size="1"><B></B></FONT></SUP></TD><TD width="5" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="59" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="7" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="50" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="7" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="7" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="53" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT><SUP><FONT size="1"><B></B></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="53" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="67" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="7" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="7" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="58" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="7" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="7" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="58" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="7" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="73" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B>(recast)</B></FONT><SUP><FONT size="1"></FONT></SUP></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="111" height="14" align="left"><FONT size="2">Cash and equivalents </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="5" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="59" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="50" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2">$</FONT></TD><TD width="53" height="14" align="right"><FONT size="2"> 7,009 </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2">$</FONT></TD><TD width="53" height="14" align="right"><FONT size="2"> - </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2">$</FONT></TD><TD width="67" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="7" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2">$</FONT></TD><TD width="58" height="14" align="right"><FONT size="2"> 7,009 </FONT></TD><TD width="7" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="58" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="66" height="14" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="111" height="14" align="left"><FONT size="2">Revolving bank credit</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="5" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="59" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="50" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="53" height="14" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="53" height="14" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="67" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="58" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="58" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="66" height="14" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="111" height="14" align="left"><FONT size="2">  agreement and</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="5" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="59" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="50" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="53" height="14" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="53" height="14" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="67" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="58" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="58" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="66" height="14" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="111" height="14" align="left"><FONT size="2">  commercial paper</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="5" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="59" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="50" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="53" height="14" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="53" height="14" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="67" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="58" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="58" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="66" height="14" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="111" height="14" align="left"><FONT size="2">  program</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="5" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="59" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="50" height="14" align="right"><FONT size="2">2011 </FONT></TD><TD width="7" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="53" height="14" align="right"><FONT size="2"> 6,900 </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="53" height="14" align="right"><FONT size="2"> 84 </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="67" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="58" height="14" align="right"><FONT size="2"> 6,816 </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="58" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="66" height="14" align="right"><FONT size="2"> 4,490 </FONT><SUP><FONT size="1"></FONT></SUP></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="111" height="14" align="left"><FONT size="2">Floating-rate public</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="5" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="59" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="50" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="53" height="14" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="53" height="14" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="67" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="58" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="58" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="66" height="14" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="111" height="14" align="left"><FONT size="2">  debt</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="5" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="59" height="14" align="right"><FONT size="2">1.15% </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="50" height="14" align="right"><FONT size="2">2009 </FONT></TD><TD width="7" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="53" height="14" align="right"><FONT size="2"> 2,000 </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="53" height="14" align="right"><FONT size="2"> - </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="67" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="58" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="58" height="14" align="right"><FONT size="2"> 2,000 </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="66" height="14" align="right"><FONT size="2"> 2,000 </FONT><SUP><FONT size="1"></FONT></SUP></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="111" height="14" align="left"><FONT size="2">Fixed-rate public debt</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="5" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="59" height="14" align="right"><FONT size="2">7.14% </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="50" height="14" align="right"><FONT size="2">2011-2036</FONT></TD><TD width="7" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="53" height="14" align="right"><FONT size="2"> 15,227 </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="53" height="14" align="right"><FONT size="2"> - </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="67" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="58" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="58" height="14" align="right"><FONT size="2"> 15,227 </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="66" height="14" align="right"><FONT size="2"> 15,227 </FONT><SUP><FONT size="1"></FONT></SUP></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="111" height="14" align="left"><FONT size="2">Other obligations</FONT><SUP><FONT size="1">(d)</FONT></SUP></TD><TD width="5" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="59" height="14" align="right"><FONT size="2">7.37% </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="50" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="53" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 375 </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="53" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 8 </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="67" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="58" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 96 </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="58" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 271 </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="66" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 238 </FONT><SUP><FONT size="1"></FONT></SUP></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="111" height="14" align="left"><FONT size="2">Subtotal </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="5" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="59" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="50" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="53" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 31,511 </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="53" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 92 </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="67" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="58" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 13,921 </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="58" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 17,498 </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="66" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 21,955 </FONT><SUP><FONT size="1"></FONT></SUP></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="111" height="14" align="left"><FONT size="2">Debt due within one year</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="5" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="59" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="50" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="53" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (2,087)</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="53" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="67" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="58" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="58" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (2,087)</FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="66" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (2,066)</FONT><SUP><FONT size="1"></FONT></SUP></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="111" height="14" align="left"><FONT size="2">Total</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="5" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="59" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center"><FONT size="2"> </FONT></TD><TD width="50" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="53" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 29,424 </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="53" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 92 </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="67" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> - </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="58" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 13,921 </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="58" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 15,411 </FONT></TD><TD width="7" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="66" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 19,889 </FONT><SUP><FONT size="1"></FONT></SUP></TD></TR><TR><TD width="14" height="8" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="111" height="8" align="left"><FONT size="2">__________</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="5" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="59" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="50" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="53" height="8" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="53" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="67" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="7" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="58" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="7" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="58" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="7" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="66" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD></TR><TR><TD width="14" height="8" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="111" height="8" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="5" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="59" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="50" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="53" height="8" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="53" height="8" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="7" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="67" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="58" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="58" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="7" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="66" height="8" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1">(a)</FONT></SUP><FONT size="2"> </FONT></TD><TD colspan="26" width="772" height="14" align="left"><FONT size="2">The bank credit agreements, commercial paper program and public debt of the Company rank pari passu with the senior debt of the respective obligors thereon. The Company’s maturity profile of its outstanding debt and other financing arrangements is relatively long-term, with a weighted average maturity of approximately 11.3 years as of June 30, 2009.</FONT><SUP><FONT size="1"></FONT></SUP></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1">(b)</FONT></SUP><FONT size="2"> </FONT></TD><TD colspan="26" width="772" height="14" align="left"><FONT size="2">Represents the portion of committed capacity reserved for outstanding and undrawn letters of credit.</FONT><SUP><FONT size="1"></FONT></SUP></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1">(c)</FONT></SUP><FONT size="2"> </FONT></TD><TD colspan="26" width="772" height="14" align="left"><FONT size="2">Represents principal amounts adjusted for premiums and discounts. The weighted-average interest rate on Time Warner’s total debt was 6.46% at June 30, 2009 and 5.51% at December 31, 2008. The Company’s public debt matures as follows: $2.000 billion in 2009, $0 in 2010, $2.000 billion in 2011, $2.000 billion in 2012, $1.300 billion in 2013 and $10.031 billion thereafter.</FONT><SUP><FONT size="1"></FONT></SUP></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1">(d)</FONT></SUP><FONT size="2"> </FONT></TD><TD colspan="26" width="772" height="14" align="left"><FONT size="2">Amount consists of capital lease and other obligations, including committed financings by subsidiaries under local bank credit agreements primarily in India and China.</FONT><SUP><FONT size="1"></FONT></SUP></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>Repayment and Termination of $2.0 Billion Term Facility<BR/><BR/>On March 17, 2009, the Company used a portion of the proceeds it received from the Special Dividend to repay in full the $2.0 billion outstanding (plus accrued interest) under its unsecured term loan facility with a maturity date of January 8, 2011 (the “Term Facility”) and terminated the Term Facility. Time Warner did not incur any early termination or prepayment penalties in connection with the termination of the Term Facility.<BR/><BR/>Termination of Supplemental Credit Agreement<BR/><BR/>On March 12, 2009, TWC borrowed the full committed amount of $1.932 billion under its unsecured term loan credit facility entered into on June 30, 2008 (the “TWC Bridge Facility”), all of which was used by TWC to pay a portion of the Special Dividend. On March 26, 2009, TWC completed an offering of $3.0 billion in aggregate principal amount of debt securities and used a portion of the net proceeds from the offering to prepay in full the outstanding loans and all other amounts due under the TWC Bridge Facility, and the TWC Bridge Facility was terminated in accordance with its terms. Concurrently with the termination of the TWC Bridge Facility and pursuant to the terms of the $1.535 billion credit agreement (the “Supplemental Credit Agreement”) between the Company (as lender) and TWC (as borrower) for a two-year senior unsecured supplemental term loan facility (the “Supplemental Credit Facility”), on March 26, 2009, TWC terminated the commitments of Time Warner under the Supplemental Credit Facility, and the Supplemental Credit Agreement was terminated in accordance with its terms.<BR/><BR/>Amendments to Revolving Facility<BR/><BR/>On March 11, 2009, the Company entered into the first and second amendments to the amended and restated credit agreement (the “Revolving Credit Agreement”) for its senior unsecured five-year revolving credit facility (the “Revolving Facility”). The first amendment terminated the $100 million commitment of Lehman Commercial Paper Inc. (“LCPI”), a subsidiary of Lehman Brothers Holdings Inc., which filed a petition for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code in September 2008, reducing the committed amount of the Revolving Facility from $7.0 billion to $6.9 billion. The second amendment, among other things, amended the Revolving Credit Agreement to (i) expand the circumstances under which any other lender under the Revolving Facility would become a Defaulting Lender (as defined in the Revolving Credit Agreement, as amended) and (ii) permit Time Warner to terminate the commitment of any such lender on terms substantially similar to those applicable to LCPI under the first amendment to the Revolving Credit Agreement. <BR/><BR/>Consent Solicitation<BR/><BR/>On April 15, 2009, the Company completed a solicitation of consents (the “Consent Solicitation”) from the holders of the debt securities (the “Securities”) issued by Time Warner Inc. and its subsidiaries under all of the indentures governing the publicly traded debt securities of the Company and its subsidiaries other than the indenture entered into in November 2006 (collectively, the “Indentures”). Completion of the Consent Solicitation resulted in the adoption on April 16, 2009 of certain amendments to each Indenture that provide that certain restrictive covenants will not apply (subject to the concurrent or prior issuance of the guarantee by HBO discussed below) to a conveyance or transfer by AOL LLC of its properties and assets substantially as an entirety, unless such conveyance or transfer constitutes a conveyance or transfer of the properties and assets of the issuer and the guarantors under the relevant Indenture and their respective subsidiaries, taken as a whole, substantially as an entirety. As a result of the Consent Solicitation, prior to or concurrent with a conveyance or transfer of AOL LLC’s properties and assets substantially as an entirety, HBO will issue a guarantee of the obligations of Historic TW Inc. (“Historic TW”) (including in its capacity as successor to Time Warner Companies, Inc.), whether as issuer or guarantor, under the Indentures and the Securities. Such guarantee will be issued by HBO only in connection with such a transaction.<BR/><BR/>Shelf Registration Statement<BR/><BR/>Time Warner had a shelf registration statement (the “Registration Statement”) on file with the SEC since November 8, 2006 that allowed it to offer and sell from time to time debt securities, preferred stock, common stock and/or warrants to purchase debt and equity securities. As a result of the Company’s $13.955 billion of unused committed capacity at March 31, 2009 and the anticipated expiration in early November 2009 of the Registration Statement, the Company determined it no longer needed the Registration Statement. Accordingly, on April 24, 2009, the Company and the subsidiary guarantors under the Registration Statement submitted filings to the SEC that suspended the reporting obligations with respect to the debt securities (and related guarantees) that were offered and sold pursuant to the Registration Statement and deregistered the securities covered under the Registration Statement that were available for offer and sale.<BR/></P></FONT></DIV></BODY></HTML>
<HTML><HEAD><META content="text/html; charset=utf-8" /></HEAD><BODY><DIV><FONT size="2"><P>6.        SHAREHOLDERS’ EQUITY <BR/><BR/>Spin-Off of TWC<BR/><BR/>In connection with the Distribution, the Company recognized a reduction of $7.989 billion to shareholders’ equity, including $1.167 billion attributable to noncontrolling interests.<BR/><BR/>Common Stock Repurchase Program<BR/><BR/>On July 26, 2007, Time Warner’s Board of Directors authorized a common stock repurchase program that allows the Company to purchase up to an aggregate of $5 billion of common stock. Purchases under this stock repurchase program may be made from time to time on the open market and in privately negotiated transactions. The size and timing of these purchases are based on a number of factors, including price and business and market conditions. From the program’s inception through June 30, 2009, the Company repurchased approximately 59 million shares of common stock for approximately $3.0 billion pursuant to trading programs under Rule 10b5-1 of the Exchange Act. This number included approximately 7.9 million shares of common stock purchased for approximately $200 million during the six months ended June 30, 2009. </P></FONT></DIV></BODY></HTML>
<HTML><HEAD><META content="text/html; charset=utf-8" /></HEAD><BODY><DIV><FONT size="2"><P>7. EQUITY-BASED COMPENSATION<BR/><BR/>Time Warner Equity Plans<BR/><BR/>The Company has two active equity plans under which it is authorized to grant equity awards to employees and non-employee directors, covering an aggregate of 112 million shares of Time Warner common stock. Options have been granted to employees and non-employee directors of Time Warner with exercise prices equal to, or in excess of, the fair market value at the date of grant. Generally, the stock options vest ratably over a four-year vesting period and expire ten years from the date of grant. Certain stock option awards provide for accelerated vesting upon an election to retire pursuant to the Company’s defined benefit retirement plans or after reaching a specified age and years of service, as well as certain additional circumstances for non-employee directors. For the six months ended June 30, 2009, the Company granted approximately 10 million stock options at a weighted-average grant date fair value per option of $5.04 ($3.12 net of tax). For the six months ended June 30, 2008, the Company granted approximately 10 million stock options at a weighted-average grant date fair value per option of $12.36 ($7.66 net of tax). The table below presents the weighted-average values of the assumptions used to value stock options at their grant date.</P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="452" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="20" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="3" width="170" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Six Months Ended</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="452" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="20" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="20" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="452" height="14" align="left"><FONT size="2">Expected volatility </FONT></TD><TD width="20" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2">35.2% </FONT></TD><TD width="20" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2">28.7% </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="452" height="14" align="left"><FONT size="2">Expected term to exercise from grant date </FONT></TD><TD width="20" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2">6.11 years</FONT></TD><TD width="20" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2">5.96 years</FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="452" height="14" align="left"><FONT size="2">Risk-free rate </FONT></TD><TD width="20" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2">2.5% </FONT></TD><TD width="20" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2">3.2% </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="452" height="14" align="left"><FONT size="2">Expected dividend yield </FONT></TD><TD width="20" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2">4.4% </FONT></TD><TD width="20" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2">1.7% </FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>Pursuant to these equity plans, Time Warner may also grant shares of common stock or restricted stock units (“RSUs”), which generally vest between three to five years from the date of grant, to its employees and non-employee directors. Certain RSU awards provide for accelerated vesting upon an election to retire pursuant to the Company’s defined benefit retirement plans or after reaching a specified age and years of service, as well as certain additional circumstances for non-employee directors. Holders of restricted stock and RSU awards are generally entitled to receive cash dividends or dividend equivalents, respectively, paid by the Company during the period of time that the restricted stock or RSU awards are unvested. For the six months ended June 30, 2009, the Company granted approximately 5 million RSUs at a weighted-average grant date fair value per RSU of $22.09 ($13.70 net of tax). For the six months ended June 30, 2008, the Company granted approximately 3 million RSUs at a weighted-average grant date fair value per RSU of $44.79 ($27.77 net of tax). <BR/><BR/>Time Warner also has a performance stock unit program for senior level executives. Under this program, recipients of performance stock units (“PSUs”) are awarded a target number of PSUs that represent the contingent (unfunded and unsecured) right to receive shares of Company stock at the end of a performance period (generally three years) based on the actual performance level achieved by the Company. For PSUs granted prior to 2009, the recipient of a PSU may receive, depending on the Company’s total shareholder return (“TSR”) relative to the other companies in the S&P 500 Index, 0% to 200% of the target PSUs granted based on a sliding scale where a relative ranking of less than the 25th percentile will pay 0% and a ranking at the 100th percentile will pay 200% of the target number of shares. <BR/><BR/>PSUs granted in 2009 will be paid out in a number of shares of Common Stock based on (i) the Company’s TSR relative to the other companies in the S&P 500 Index and (ii) the Company’s growth in adjusted earnings per share (“EPS”) relative to the growth in adjusted EPS of the other companies in the S&P 500 Index, in each case over a three-year performance period. Depending on the Company’s TSR ranking and adjusted EPS growth ranking relative to the other companies in the S&P 500 Index, a recipient of a PSU will receive between 0% and 200% of his or her target award following the three-year performance period. If (i) the Company’s TSR ranking and adjusted EPS growth ranking are both below the 50th percentile or (ii) the Company’s TSR ranking is at or above the 50th percentile, then the percentage of a participant’s target PSUs that will vest will be based on the Company’s TSR ranking for the performance period. If the Company’s TSR ranking is below the 50th percentile and its adjusted EPS growth ranking is at or above the 50th percentile, the percentage of a participant’s target PSUs that will vest will be the average of (i) the percentage of target PSUs that would vest based on the Company’s TSR ranking during the performance period and (ii) 100%. Based on market data as of June 30, 2009, the PSUs granted in 2009, 2008 and 2007 are tracking at a level that, if maintained, would result in the award of 124%, 111% and 69%, respectively, target PSUs granted.<BR/><BR/>For accounting purposes, PSUs granted prior to 2009 are considered to have a market condition and PSUs granted in 2009 are considered to have a market condition and a performance condition. The effect of a market condition is reflected in the grant date fair value of the award, which is estimated using a Monte Carlo analysis to estimate the total return ranking of Time Warner among the S&P 500 Index companies over the performance period. In the case of PSUs granted in 2009, the performance condition is assumed to have been met. As a result, compensation expense is recognized on these types of awards provided that the requisite service is rendered (regardless of whether the market condition is achieved).<BR/><BR/>PSU holders do not receive payments or accruals of dividends or dividend equivalents for regular cash dividends paid by the Company while the PSU is outstanding. Participants who are terminated by the Company other than for cause or who terminate their own employment for good reason or due to retirement or disability are generally entitled to a pro rata portion of the PSUs that would otherwise vest at the end of the performance period. For the six months ended June 30, 2009, the Company granted approximately 0.2 million target PSUs at a weighted-average grant date fair value per PSU of $23.67 ($14.68 net of tax). For the six months ended June 30, 2008, the Company granted approximately 0.4 million target PSUs at a weighted-average grant date fair value per PSU of $52.60 ($32.61 net of tax).<BR/><BR/>In connection with the TWC Separation, and as provided for in the Company’s equity plans, the number of stock options, RSUs and target PSUs outstanding at the Distribution Record Date and the exercise prices of such stock options were adjusted to maintain the fair value of those awards. The changes in the number of equity awards and the exercise prices (which are reflected herein) were determined by comparing the fair value of such awards immediately prior to the TWC Separation to the fair value of such awards immediately after the TWC Separation. In performing this analysis, the only assumptions that changed related to the Time Warner stock price and the employee’s exercise price. Accordingly, each equity award outstanding as of the Distribution Record Date was increased by multiplying the size of such award by 1.35, while the per share exercise price of each stock option was decreased by dividing by 1.35. This adjustment resulted in an increase of approximately 50 million equity awards (comprised of 46 million stock options and 4 million RSUs). The modifications to the outstanding equity awards were made pursuant to existing antidilution provisions in the Company’s equity plans and did not result in any additional compensation expense.<BR/><BR/>In addition, in connection with the 1-for-3 reverse stock split the Company implemented on March 27, 2009, the number of outstanding equity awards was proportionately adjusted to reflect the reverse stock split. As a result, and after giving effect to the adjustment for the TWC Separation, the number of outstanding equity awards was determined by dividing the number of outstanding equity awards by three. The per share exercise price of stock options, after giving effect to the adjustment for the TWC Separation, was determined by multiplying the exercise price by three.<BR/><BR/>Compensation expense recognized for equity-based compensation plans for the three and six months ended June 30, 2009 and 2008 is as follows (millions):<BR/></P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Three Months Ended</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Six Months Ended</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B>(recast)</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B>(recast)</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Stock options</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 16 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 21 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 45 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 59 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Restricted stock, restricted stock units and</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">  and performance stock units</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 23 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 25 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 65 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 62 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Total impact on Operating Income</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 39 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 46 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 110 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 121 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Tax benefit recognized</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 15 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 17 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 42 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 46 </FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>Under the terms of Time Warner’s equity plans and related award agreements, as a result of the TWC Separation, TWC employees who held Time Warner equity awards were treated at the time of the TWC Separation as if their employment with Time Warner was terminated without cause at the time of the separation. This treatment resulted in the forfeiture of unvested stock options and shortened exercise periods for vested stock options and pro rata vesting of the next installment of (and forfeiture of the remainder of) the RSU awards for those TWC employees who do not satisfy retirement-treatment eligibility provisions in the Time Warner equity plans and related award agreements.<BR/><BR/>Upon the exercise of Time Warner stock options and the vesting of Time Warner RSUs held by TWC employees, TWC is obligated to reimburse Time Warner for the intrinsic value of the applicable award. As a result of the TWC Separation, TWC is no longer considered a related party. Accordingly, on the Distribution Record Date, the Company established an asset of $16 million for the estimated fair value (determined using the Black-Scholes option pricing model) of outstanding equity awards held by TWC employees, with an offsetting adjustment to Time Warner Inc. shareholders’ equity in the consolidated balance sheet. The estimated receivable from TWC fluctuates with the fair value and number of outstanding equity awards and the resulting change is recorded in other income (loss), net, in the consolidated statement of operations. As of June 30, 2009, the estimated receivable was $24 million.</P></FONT></DIV></BODY></HTML>
<HTML><HEAD><META content="text/html; charset=utf-8" /></HEAD><BODY><DIV><FONT size="2"><P>8.        BENEFIT PLANS<BR/><BR/>Time Warner and certain of its subsidiaries have both funded and unfunded defined benefit pension plans, the substantial majority of which are noncontributory, covering certain domestic employees and, to a lesser extent, have various defined benefit plans covering international employees. Pension benefits are determined based on formulas that reflect the employees’ years of service and compensation during their employment period and participation in the plans. Time Warner uses a December 31 measurement date for its plans. A summary of the components of the net periodic benefit costs from continuing operations recognized for substantially all of Time Warner’s domestic and international defined benefit pension plans for the three and six months ended June 30, 2009 and 2008 is as follows (millions):<BR/><BR/>Components of Net Periodic Benefit Costs</P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="13" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="170" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="110" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Domestic </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="109" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>International </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="110" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Domestic </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="109" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>International </B></FONT></TD></TR><TR><TD width="13" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="170" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="11" width="229" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>Three Months Ended</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="11" width="229" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>Six Months Ended</B></FONT></TD></TR><TR><TD width="13" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="170" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="50" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="50" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="49" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="50" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="50" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="50" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="49" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="50" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD></TR><TR><TD width="13" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="170" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="40" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="50" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B>(recast)</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="39" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="50" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="40" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="50" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B>(recast)</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="39" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="50" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="13" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="170" height="14" align="left"><FONT size="2">Service cost </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="40" height="14" align="right"><FONT size="2"> 15 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="40" height="14" align="right"><FONT size="2"> 17 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="39" height="14" align="right"><FONT size="2"> 4 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="40" height="14" align="right"><FONT size="2"> 6 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="40" height="14" align="right"><FONT size="2"> 33 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="40" height="14" align="right"><FONT size="2"> 39 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="39" height="14" align="right"><FONT size="2"> 8 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="40" height="14" align="right"><FONT size="2"> 11 </FONT></TD></TR><TR><TD width="13" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="170" height="14" align="left"><FONT size="2">Interest cost </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="40" height="14" align="right"><FONT size="2"> 35 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="40" height="14" align="right"><FONT size="2"> 35 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="39" height="14" align="right"><FONT size="2"> 10 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="40" height="14" align="right"><FONT size="2"> 14 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="40" height="14" align="right"><FONT size="2"> 71 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="40" height="14" align="right"><FONT size="2"> 71 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="39" height="14" align="right"><FONT size="2"> 20 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="40" height="14" align="right"><FONT size="2"> 28 </FONT></TD></TR><TR><TD width="13" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="170" height="14" align="left"><FONT size="2">Expected return on plan assets </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="40" height="14" align="right"><FONT size="2"> (33)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="40" height="14" align="right"><FONT size="2"> (46)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="39" height="14" align="right"><FONT size="2"> (12)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="40" height="14" align="right"><FONT size="2"> (20)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="40" height="14" align="right"><FONT size="2"> (66)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="40" height="14" align="right"><FONT size="2"> (88)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="39" height="14" align="right"><FONT size="2"> (24)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="40" height="14" align="right"><FONT size="2"> (39)</FONT></TD></TR><TR><TD width="13" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="170" height="14" align="left"><FONT size="2">Amounts amortized</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="40" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 30 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="40" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 6 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="39" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 2 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="40" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="40" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 59 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="40" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 12 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="39" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 4 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="40" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD></TR><TR><TD width="13" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="170" height="14" align="left"><FONT size="2">Net periodic benefit costs </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="40" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 47 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="40" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 12 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="39" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 4 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="40" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="40" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 97 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="40" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 34 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="39" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 8 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="40" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> - </FONT></TD></TR><TR><TD width="13" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="170" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="40" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="40" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="39" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="40" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="40" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="40" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="39" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="40" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="13" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="170" height="14" align="left"><FONT size="2">Contributions </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="40" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 13 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="40" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 7 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="39" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 2 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="40" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 7 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="40" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 21 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="40" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 110 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="39" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 7 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="40" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 13 </FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>Expected cash flows<BR/><BR/>After considering the funded status of the Company’s defined benefit pension plans, movements in the discount rate, investment performance and related tax consequences, the Company may choose to make contributions to its pension plans in any given year. At June 30, 2009, there were no minimum required contributions for domestic funded plans. As of December 31, 2008, the Company’s funded domestic defined benefit pension plans were funded by assets in a pension trust with a fair market value of $1.702 billion. Between January 1, 2009 and June 30, 2009, the Company’s plan assets have experienced market gains of approximately 10%. The Company did not make any discretionary cash contributions to its funded defined benefit pension plans during the six months ended June 30, 2009. Subject to market conditions and other considerations, the Company may make discretionary cash contributions during the remainder of the year. For domestic unfunded plans, contributions will continue to be made to the extent benefits are paid. Expected benefit payments for domestic unfunded plans for 2009 are approximately $34 million. In addition, the Company anticipates making an additional $20 million discretionary contribution to its international plans in the fourth quarter of 2009.</P></FONT></DIV></BODY></HTML>
<HTML><HEAD><META content="text/html; charset=utf-8" /></HEAD><BODY><DIV><FONT size="2"><P>9.        RESTRUCTURING COSTS <BR/><BR/>Merger Costs Capitalized as a Cost of Acquisition<BR/><BR/>As of June 30, 2009, merger costs capitalized as a cost of acquisition was $26 million, with $1 million having been paid during the six months ended June 30, 2009. As of June 30, 2009, $6 million of the remaining liability was classified as a current liability in the consolidated balance sheet, with the remaining $20 million classified as a long-term liability. Amounts classified as long-term, primarily related to lease exit costs, are expected to be paid through 2014.<BR/><BR/>Restructuring Costs Expensed<BR/><BR/>Restructuring costs expensed as incurred by segment for the three and six months ended June 30, 2009 and 2008 are as follows (millions):<BR/></P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="285" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Three Months Ended</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Six Months Ended</B></FONT></TD></TR><TR><TD width="285" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD></TR><TR><TD width="285" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B>(recast)</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B>(recast)</B></FONT></TD></TR><TR><TD width="285" height="14" align="left"><FONT size="2">Filmed Entertainment </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 31 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (3)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 68 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 113 </FONT></TD></TR><TR><TD width="285" height="14" align="left"><FONT size="2">Publishing</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (4)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 5 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (5)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 15 </FONT></TD></TR><TR><TD width="285" height="14" align="left"><FONT size="2">AOL</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 15 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 4 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 73 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 13 </FONT></TD></TR><TR><TD width="285" height="14" align="left"><FONT size="2">Corporate</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 7 </FONT></TD></TR><TR><TD width="285" height="14" align="left"><FONT size="2">Total restructuring costs</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 42 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 6 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 136 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 148 </FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>The Company’s restructuring costs primarily related to employee termination costs and ranged from senior executives to line personnel. The Company currently expects to incur incremental restructuring charges relating to operational reorganizations at the AOL and Filmed Entertainment segments of up to approximately $105 million during the remainder of 2009.<BR/><BR/>Restructuring costs that were expensed for the three and six months ended June 30, 2009 and 2008 are as follows (millions):<BR/></P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="270" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Three Months Ended</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Six Months Ended</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="270" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="270" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B>(recast)</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B>(recast)</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="270" height="14" align="left"><FONT size="2">2009 restructuring activity</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 42 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 137 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> - </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="270" height="14" align="left"><FONT size="2">2008 and prior restructuring activity</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 6 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (1)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 148 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="270" height="14" align="left"><FONT size="2">Restructuring costs</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 42 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 6 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 136 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 148 </FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>Selected Information<BR/><BR/>Selected information relating to restructuring costs is as follows (millions):</P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="14" height="27" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"><B> </B></FONT></TD><TD width="356" height="27" align="left"><FONT size="2"><B> </B></FONT><SUP><FONT size="1"><B></B></FONT></SUP></TD><TD width="10" height="27" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="27" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Employee Terminations</B></FONT></TD><TD width="10" height="27" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="27" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Other Exit Costs</B></FONT></TD><TD width="10" height="27" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="27" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="27" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Total</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="356" height="14" align="left"><FONT size="2">Remaining liability as of December 31, 2008 (recast)</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 204 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 84 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 288 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="356" height="14" align="left"><FONT size="2">Net accruals</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 87 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 49 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 136 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="356" height="14" align="left"><FONT size="2">Noncash reductions</FONT><SUP><FONT size="1">(a)</FONT></SUP></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (10)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (10)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="356" height="14" align="left"><FONT size="2">Cash paid</FONT><SUP><FONT size="1">(b)</FONT></SUP></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (132)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (46)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (178)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="356" height="14" align="left"><FONT size="2">Remaining liability as of June 30, 2009</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 149 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 87 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 236 </FONT></TD></TR><TR><TD width="14" height="8" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="356" height="8" align="left"><FONT size="2">____________</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="8" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="8" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="356" height="8" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="8" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="right"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="15" align="left"><SUP><FONT size="1"> (a)</FONT></SUP><FONT size="2"> </FONT></TD><TD colspan="11" width="651" height="15" align="left"><FONT size="2">Noncash reductions relate to the settlement of certain employee-related liabilities with equity instruments.</FONT></TD></TR><TR><TD width="14" height="15" align="left"><SUP><FONT size="1"> (b)</FONT></SUP><FONT size="2"> </FONT></TD><TD colspan="11" width="651" height="15" align="left"><FONT size="2">Of the $178 million paid in 2009, $77 million was paid during the three months ended June 30, 2009.</FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>As of June 30, 2009, of the remaining liability of $236 million, $146 million was classified as a current liability in the consolidated balance sheet, with the remaining $90 million classified as a long-term liability. Amounts classified as long-term are expected to be paid through 2017.</P></FONT></DIV></BODY></HTML>
<HTML><HEAD><META content="text/html; charset=utf-8" /></HEAD><BODY><DIV><FONT size="2"><P>10.        DERIVATIVE INSTRUMENTS<BR/><BR/>Time Warner uses derivative instruments, principally forward contracts, to manage the risk associated with the volatility of future cash flows denominated in foreign currencies and changes in fair value resulting from changes in foreign currency exchange rates. The Company uses derivative instruments that generally have maturities of three to eighteen months to hedge various foreign exchange exposures, including the following: (i) variability in foreign currency-denominated cash flows, such as the hedges of unremitted or forecasted royalty and license fees to be received from the sale or anticipated sale of U.S. copyrighted products abroad or cash flows for certain film costs denominated in a foreign currency (i.e., cash flow hedges) and (ii) currency risk associated with foreign currency-denominated operating assets and liabilities (i.e., fair value hedges). The Company also enters into derivative contracts that economically hedge certain of its foreign currency risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting under FASB Statement No. 133, Accounting for Derivative Instruments and Hedging Activities (“FAS 133”). These economic hedges are used primarily to offset the change in certain foreign currency denominated long-term receivables and certain foreign currency denominated debt due to changes in the underlying foreign exchange rates. Gains and losses from hedging activities are largely offset by corresponding economic gains or losses from the respective transactions that were hedged. The Company monitors its positions with, and the credit quality of, the financial institutions that are party to any of its financial transactions. <BR/><BR/>The following is a summary of amounts pertaining to Time Warner’s use of foreign currency derivatives at June 30, 2009 (millions):</P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="558" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="center"><FONT size="2"><B>June 30, </B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="558" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>2009 </B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="558" height="14" align="left"><FONT size="2"><B>FAS 133 Hedges</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="558" height="14" align="left"><FONT size="2">Assets</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 57 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="558" height="14" align="left"><FONT size="2">Liabilities</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (157)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="558" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="558" height="14" align="left"><FONT size="2"><B>Economic Hedges</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="558" height="14" align="left"><FONT size="2">Assets</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 31 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="558" height="14" align="left"><FONT size="2">Liabilities</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (28)</FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>Netting provisions are provided for in existing International Swap and Derivative Association Inc. agreements in situations where the Company executes multiple contracts with the same counterparty. As a result, net assets or liabilities resulting from foreign exchange derivatives subject to these netting agreements are classified within prepaid expenses and other current assets or accounts payable and accrued expenses in the Company’s consolidated balance sheet. At June 30, 2009, $104 million of losses related to cash flow hedges are recorded in accumulated other comprehensive income and are expected to be recognized in earnings at the same time hedged items affect earnings. Included in this amount are deferred net losses of $68 million related to hedges of cash flows associated with films that are not expected to be released within the next twelve months. <BR/><BR/>The following is a summary of amounts pertaining to Time Warner’s use of foreign currency derivatives for the three and six months ended June 30, 2009 (millions):</P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Three Months Ended</B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Six Months Ended</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2"><B>Fair Value Hedges</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">Gain (loss) — Effective Portion: </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">  Costs of revenues</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 9 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 8 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">Gain (loss) recognized in net income and excluded from effectiveness testing</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">   — Ineffective Portion: </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">   Other income (loss), net</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 1 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 3 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2"><B>Cash Flow Hedges</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">Gain (loss) — Effective Portion: </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">  Recorded to accumulated other comprehensive income</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 28 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (13)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">  Reclassified from accumulated other comprehensive income to net income: </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">    Selling, general and administrative expense</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (5)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (6)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">    Costs of revenues</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (7)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (14)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">Gain (loss) recognized in net income and excluded from effectiveness testing</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">   — Ineffective Portion: </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">   Other income (loss), net</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (5)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (3)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2"><B>Economic Hedges</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">Gain (loss): </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">  Costs of revenues</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (40)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (25)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">  Other income (loss), net</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 9 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 2 </FONT></TD></TR></TABLE></DIV></BODY></HTML>
<HTML><HEAD><META content="text/html; charset=utf-8" /></HEAD><BODY><DIV><FONT size="2"><P>11. SEGMENT INFORMATION<BR/><BR/>Time Warner classifies its operations into four reportable segments: Networks, consisting principally of cable television networks that provide programming; Filmed Entertainment, consisting principally of feature film, television and home video production and distribution; Publishing, consisting principally of magazine publishing; and AOL, consisting principally of interactive consumer and advertising services.<BR/><BR/>Information as to the operations of Time Warner in each of its reportable segments is set forth below based on the nature of the products and services offered. Time Warner evaluates performance based on several factors, of which the primary financial measure is operating income before depreciation of tangible assets and amortization of intangible assets (“Operating Income before Depreciation and Amortization”). Additionally, the Company has provided a summary of Operating Income by segment.<BR/></P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD colspan="14" width="422" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Three Months Ended June 30, 2009</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="75" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>Subscription</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="75" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>Advertising</B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="75" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>Content</B></FONT></TD><TD width="13" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="78" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>Other </B></FONT></TD><TD width="11" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="75" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>Total</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B>(millions)</B></FONT></TD><TD width="13" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="13" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="11" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2"><B>Revenues</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="right"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="right"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="right"><FONT size="2"><B> </B></FONT></TD><TD width="13" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="13" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="right"><FONT size="2"><B> </B></FONT></TD><TD width="11" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="right"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2">Networks</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,863 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 876 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 196 </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="13" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 28 </FONT></TD><TD width="11" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 2,963 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2">Filmed Entertainment</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 10 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 20 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 2,257 </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 46 </FONT></TD><TD width="11" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 2,333 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2">Publishing</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 319 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 482 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 12 </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 102 </FONT></TD><TD width="11" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 915 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2">AOL</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 356 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 419 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="13" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 29 </FONT></TD><TD width="11" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 804 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2">Intersegment eliminations</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (26)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (175)</FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="13" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (5)</FONT></TD><TD width="11" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (206)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2">Total revenues</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 2,548 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 1,771 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 2,290 </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="13" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 200 </FONT></TD><TD width="11" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 6,809 </FONT></TD></TR><TR><TD width="14" height="18" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="18" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="18" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="18" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="18" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="13" height="18" align="left"><FONT size="2"> </FONT></TD><TD width="13" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="11" height="18" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD colspan="14" width="422" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Three Months Ended June 30, 2008</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="75" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>Subscription</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="75" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>Advertising</B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="75" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>Content</B></FONT></TD><TD width="13" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="78" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>Other </B></FONT></TD><TD width="11" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="75" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>Total</B></FONT></TD></TR><TR><TD width="14" height="1" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="13" height="1" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="13" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="11" height="1" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="14" width="422" height="14" align="center"><FONT size="2"><B>(recast, millions)</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2"><B>Revenues</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="right"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="right"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="right"><FONT size="2"><B> </B></FONT></TD><TD width="13" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="13" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="right"><FONT size="2"><B> </B></FONT></TD><TD width="11" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="right"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2">Networks</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,719 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 906 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 189 </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="13" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 12 </FONT></TD><TD width="11" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 2,826 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2">Filmed Entertainment</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 10 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 22 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 2,484 </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 48 </FONT></TD><TD width="11" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 2,564 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2">Publishing</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 387 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 648 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 12 </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 129 </FONT></TD><TD width="11" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,176 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2">AOL</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 491 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 530 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="13" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 36 </FONT></TD><TD width="11" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,057 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2">Intersegment eliminations</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 1 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (27)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (122)</FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="13" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (6)</FONT></TD><TD width="11" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (154)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2">Total revenues</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 2,608 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 2,079 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 2,563 </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="13" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 219 </FONT></TD><TD width="11" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 7,469 </FONT></TD></TR><TR><TD width="14" height="18" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="18" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="18" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="18" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="18" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="13" height="18" align="left"><FONT size="2"> </FONT></TD><TD width="13" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="11" height="18" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD colspan="14" width="422" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Six Months Ended June 30, 2009</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="75" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>Subscription</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="75" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>Advertising</B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="75" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>Content</B></FONT></TD><TD width="13" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="78" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>Other </B></FONT></TD><TD width="11" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="75" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>Total</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B>(millions)</B></FONT></TD><TD width="13" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="13" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="11" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2"><B>Revenues</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="right"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="right"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="right"><FONT size="2"><B> </B></FONT></TD><TD width="13" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="13" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="right"><FONT size="2"><B> </B></FONT></TD><TD width="11" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="right"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2">Networks</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 3,713 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,599 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 401 </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="13" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 58 </FONT></TD><TD width="11" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 5,771 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2">Filmed Entertainment</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 19 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 34 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 4,810 </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 103 </FONT></TD><TD width="11" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 4,966 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2">Publishing</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 626 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 865 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 31 </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 199 </FONT></TD><TD width="11" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,721 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2">AOL</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 749 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 862 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="13" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 60 </FONT></TD><TD width="11" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,671 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2">Intersegment eliminations</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (49)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (316)</FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="13" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (10)</FONT></TD><TD width="11" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (375)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2">Total revenues</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 5,107 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 3,311 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 4,926 </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="13" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 410 </FONT></TD><TD width="11" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 13,754 </FONT></TD></TR><TR><TD width="14" height="18" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="18" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="18" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="18" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="18" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="13" height="18" align="left"><FONT size="2"> </FONT></TD><TD width="13" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="11" height="18" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="18" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD colspan="14" width="422" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Six Months Ended June 30, 2008</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="75" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>Subscription</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="75" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>Advertising</B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="75" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>Content</B></FONT></TD><TD width="13" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="78" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>Other </B></FONT></TD><TD width="11" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="75" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>Total</B></FONT></TD></TR><TR><TD width="14" height="1" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="13" height="1" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="13" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="11" height="1" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="14" width="422" height="14" align="center"><FONT size="2"><B>(recast, millions)</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2"><B>Revenues</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="right"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="right"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="right"><FONT size="2"><B> </B></FONT></TD><TD width="13" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="13" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="right"><FONT size="2"><B> </B></FONT></TD><TD width="11" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="right"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2">Networks</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 3,414 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,645 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 402 </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="13" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 24 </FONT></TD><TD width="11" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 5,485 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2">Filmed Entertainment</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 20 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 37 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 5,237 </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 110 </FONT></TD><TD width="11" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 5,404 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2">Publishing</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 752 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,198 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 24 </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 247 </FONT></TD><TD width="11" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 2,221 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2">AOL</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,030 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,082 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="13" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 73 </FONT></TD><TD width="11" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 2,185 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2">Intersegment eliminations</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (55)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (291)</FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="13" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (10)</FONT></TD><TD width="11" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (356)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="236" height="14" align="left"><FONT size="2">Total revenues</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 5,216 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 3,907 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 5,372 </FONT></TD><TD width="13" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="13" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 444 </FONT></TD><TD width="11" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 14,939 </FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>Intersegment Revenues<BR/><BR/>In the normal course of business, the Time Warner segments enter into transactions with one another. The most common types of intersegment transactions include:<BR/><BR/>•        the Filmed Entertainment segment generating Content revenues by licensing television and theatrical programming to the Networks segment; and<BR/>•        the Networks, Publishing and AOL segments generating Advertising revenues by promoting the products and services of other Time Warner segments.<BR/><BR/>These intersegment transactions are recorded by each segment at estimated fair value as if the transactions were with third parties and, therefore, affect segment performance. While intersegment transactions are treated like third-party transactions to determine segment performance, the revenues (and corresponding expenses or assets recognized by the segment that is counterparty to the transaction) are eliminated in consolidation and, therefore, do not affect consolidated results. Additionally, transactions between divisions within the same reporting segment (e.g., a transaction between HBO and Turner within the Networks segment) are eliminated in arriving at segment performance and, therefore, do not affect segment results. Revenues recognized by Time Warner’s segments on intersegment transactions are as follows:<BR/></P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Three Months Ended</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Six Months Ended</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD></TR><TR><TD width="14" height="1" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD colspan="5" width="180" height="14" align="center"><FONT size="2"><B>(millions)</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD colspan="5" width="180" height="14" align="center"><FONT size="2"><B>(millions)</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center"><FONT size="2"><B>(recast)</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center"><FONT size="2"><B>(recast)</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B>Intersegment Revenues</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Networks</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 26 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 32 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 50 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 57 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Filmed Entertainment</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 171 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 114 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 309 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 281 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Publishing</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 8 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 7 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 14 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 13 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">AOL</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 1 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 1 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 2 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 5 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Total intersegment revenues</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 206 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 154 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 375 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 356 </FONT></TD></TR></TABLE></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B> </B></FONT><SUP><FONT size="1"><B></B></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Three Months Ended</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Six Months Ended</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B> </B></FONT><SUP><FONT size="1"><B></B></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD></TR><TR><TD width="14" height="1" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="1" align="left"><FONT size="2"><B> </B></FONT><SUP><FONT size="1"><B></B></FONT></SUP></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD colspan="5" width="180" height="14" align="center"><FONT size="2"><B>(millions)</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD colspan="5" width="180" height="14" align="center"><FONT size="2"><B>(millions)</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center"><FONT size="2"><B>(recast)</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center"><FONT size="2"><B>(recast)</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B>Operating Income before Depreciation and </B></FONT><SUP><FONT size="1"><B></B></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B>  Amortization</B></FONT><SUP><FONT size="1"><B></B></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Networks</FONT><SUP><FONT size="1">(a)</FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 981 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 842 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 2,045 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 1,800 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Filmed Entertainment</FONT><SUP><FONT size="1">(b)</FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 230 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 196 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 538 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 476 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Publishing</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 144 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 269 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 156 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 414 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">AOL</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 271 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 350 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 526 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 755 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Corporate</FONT><SUP><FONT size="1">(c)</FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (78)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (81)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (162)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (184)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Intersegment eliminations</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (14)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 7 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (14)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (2)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Total operating income before depreciation and</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">  amortization</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 1,534 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 1,583 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 3,089 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> 3,259 </FONT></TD></TR><TR><TD width="14" height="8" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="8" align="left"><FONT size="2">____________</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="8" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="8" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1">(a)</FONT></SUP><FONT size="2"> </FONT></TD><TD colspan="14" width="688" height="14" align="left"><FONT size="2">For the three and six months ended June 30, 2008, includes an $18 million noncash impairment of GameTap as a result of Turner's decision to sell its online video game business. </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1">(b)</FONT></SUP><FONT size="2"> </FONT></TD><TD colspan="14" width="688" height="14" align="left"><FONT size="2">For the three and six months ended June 30, 2009, includes a $33 million loss on the sale of Warner Bros.' Italian cinema assets. </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1">(c)</FONT></SUP><FONT size="2"> </FONT></TD><TD colspan="14" width="688" height="14" align="left"><FONT size="2">For the three and six months ended June 30, 2009, includes $7 million and $14 million, respectively, and for the three and six months ended June 30, 2008, includes $4 million and $8 million, respectively, in net expenses related to securities litigation and government investigations.</FONT></TD></TR></TABLE></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="15" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Three Months Ended</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Six Months Ended</B></FONT></TD></TR><TR><TD width="15" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD></TR><TR><TD width="15" height="1" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="1" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="15" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD colspan="5" width="180" height="14" align="center"><FONT size="2"><B>(millions)</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD colspan="5" width="180" height="14" align="center"><FONT size="2"><B>(millions)</B></FONT></TD></TR><TR><TD width="15" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center"><FONT size="2"><B>(recast)</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center"><FONT size="2"><B>(recast)</B></FONT></TD></TR><TR><TD width="15" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B>Depreciation of Property, Plant and</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="15" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B>  Equipment</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="15" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Networks</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (86)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (81)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (172)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (159)</FONT></TD></TR><TR><TD width="15" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Filmed Entertainment</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (41)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (43)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (81)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (84)</FONT></TD></TR><TR><TD width="15" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Publishing</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (31)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (34)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (62)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (68)</FONT></TD></TR><TR><TD width="15" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">AOL</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (71)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (79)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (140)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (162)</FONT></TD></TR><TR><TD width="15" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Corporate</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (10)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (10)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (20)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (21)</FONT></TD></TR><TR><TD width="15" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Total depreciation of property, plant </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="15" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">  and equipment</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> (239)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> (247)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> (475)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 3px double #000000;"><FONT size="2"> (494)</FONT></TD></TR></TABLE></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="15" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Three Months Ended</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Six Months Ended</B></FONT></TD></TR><TR><TD width="15" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD></TR><TR><TD width="15" height="1" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="1" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="15" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD colspan="5" width="180" height="14" align="center"><FONT size="2"><B>(millions)</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD colspan="5" width="180" height="14" align="center"><FONT size="2"><B>(millions)</B></FONT></TD></TR><TR><TD width="15" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center"><FONT size="2"><B>(recast)</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center"><FONT size="2"><B>(recast)</B></FONT></TD></TR><TR><TD width="15" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B>Amortization of Intangible Assets</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="15" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Networks</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (20)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (12)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (38)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (18)</FONT></TD></TR><TR><TD width="15" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Filmed Entertainment</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (46)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (59)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (100)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (115)</FONT></TD></TR><TR><TD width="15" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Publishing</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (11)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (17)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (24)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (35)</FONT></TD></TR><TR><TD width="15" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">AOL</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (35)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (41)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (71)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (79)</FONT></TD></TR><TR><TD width="15" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Total amortization of intangible assets</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> (112)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> (129)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> (233)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> (247)</FONT></TD></TR></TABLE></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B> </B></FONT><SUP><FONT size="1"><B></B></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Three Months Ended</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Six Months Ended</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B> </B></FONT><SUP><FONT size="1"><B></B></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD></TR><TR><TD width="14" height="1" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="1" align="left"><FONT size="2"><B> </B></FONT><SUP><FONT size="1"><B></B></FONT></SUP></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD colspan="5" width="180" height="14" align="center"><FONT size="2"><B>(millions)</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD colspan="5" width="180" height="14" align="center"><FONT size="2"><B>(millions)</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center"><FONT size="2"><B>(recast)</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center"><FONT size="2"><B>(recast)</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B>Operating Income</B></FONT><SUP><FONT size="1"><B></B></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Networks</FONT><SUP><FONT size="1">(a)</FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 875 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 749 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 1,835 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 1,623 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Filmed Entertainment</FONT><SUP><FONT size="1">(b)</FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 143 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 94 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 357 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 277 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Publishing</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 102 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 218 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 70 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 311 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">AOL</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 165 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 230 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 315 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 514 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Corporate</FONT><SUP><FONT size="1">(c)</FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (88)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (91)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (182)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (205)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Intersegment eliminations</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (14)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 7 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (14)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (2)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Total operating income</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 1,183 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 1,207 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 2,381 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 2,518 </FONT></TD></TR><TR><TD width="14" height="8" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="8" align="left"><FONT size="2">__________</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="8" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="271" height="8" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="8" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="8" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1">(a)</FONT></SUP><FONT size="2"> </FONT></TD><TD colspan="14" width="688" height="14" align="left"><FONT size="2">For the three and six months ended June 30, 2008, includes an $18 million noncash impairment of GameTap as a result of Turner's decision to sell its online video game business. </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1">(b)</FONT></SUP><FONT size="2"> </FONT></TD><TD colspan="14" width="688" height="14" align="left"><FONT size="2">For the three and six months ended June 30, 2009, includes a $33 million loss on the sale of Warner Bros.' Italian cinema assets.</FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1">(c)</FONT></SUP><FONT size="2"> </FONT></TD><TD colspan="14" width="688" height="14" align="left"><FONT size="2">For the three and six months ended June 30, 2009, includes $7 million and $14 million, respectively, and for the three and six months ended June 30, 2008, includes $4 million and $8 million, respectively, in net expenses related to securities litigation and government investigations.</FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>A summary of total assets by operating segment is set forth below:</P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>June 30, 2009</B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>December 31, 2008</B></FONT></TD></TR><TR><TD width="14" height="1" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD colspan="5" width="180" height="14" align="center"><FONT size="2"><B>(millions)</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center"><FONT size="2"><B>(recast)</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2"><B>Assets</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">Networks</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 36,324 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 36,097 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">Filmed Entertainment</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 15,974 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 17,080 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">Publishing</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 6,453 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 6,778 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">AOL</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 3,843 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 4,075 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">Corporate</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 8,326 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 2,316 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">Assets of discontinued operations</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 47,711 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">Total assets</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 70,920 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 114,057 </FONT></TD></TR></TABLE></DIV></BODY></HTML>
<HTML><HEAD><META content="text/html; charset=utf-8" /></HEAD><BODY><DIV><FONT size="2"><P>12.        COMMITMENTS AND CONTINGENCIES <BR/><BR/>Commitments<BR/><BR/>Six Flags<BR/><BR/>In connection with the Company’s former investment in the Six Flags theme parks located in Georgia and Texas (“Six Flags Georgia” and “Six Flags Texas,” respectively, and, collectively, the “Parks”), in 1997, certain subsidiaries of the Company (including Historic TW) agreed to guarantee (the “Six Flags Guarantee”) certain obligations of the partnerships that hold the Parks (the “Partnerships”) for the benefit of the limited partners in such Partnerships, including the following (the “Guaranteed Obligations”): (a) making a minimum annual distribution to the limited partners of the Partnerships (the minimum was approximately $61 million in 2008 and is subject to annual cost of living adjustments); (b) making a minimum amount of capital expenditures each year (an amount approximating 6% of the Parks’ annual revenues); (c) offering each year to purchase 5% of the limited partnership units of the Partnerships (plus any such units not purchased pursuant to such offer in any prior year) based on an aggregate price for all limited partnership units at the higher of (i) $250 million in the case of Six Flags Georgia and $374.8 million in the case of Six Flags Texas (the “Base Valuations”) and (ii) a weighted average multiple of EBITDA for the respective Park over the previous four-year period (the “Cumulative LP Unit Purchase Obligation”); (d) making annual ground lease payments; and (e) either (i) purchasing all of the outstanding limited partnership units through the exercise of a call option upon the earlier of the occurrence of certain specified events and the end of the term of each of the Partnerships in 2027 (Six Flags Georgia) and 2028 (Six Flags Texas) (the “End of Term Purchase”) or (ii) causing each of the Partnerships to have no indebtedness and to meet certain other financial tests as of the end of the term of the Partnership. The aggregate amount payable in connection with an End of Term Purchase option on either Park will be the Base Valuation applicable to such Park, adjusted for changes in the consumer price index from December 1996, in the case of Six Flags Georgia, and December 1997, in the case of Six Flags Texas, through December of the year immediately preceding the year in which the End of Term Purchase occurs, in each case, reduced ratably to reflect limited partnership units previously purchased.<BR/> <BR/>In connection with the Company’s 1998 sale of Six Flags Entertainment Corporation (which held the controlling interests in the Parks) to Six Flags, Inc. (formerly Premier Parks Inc.) (“Six Flags”), Six Flags and Historic TW entered into a Subordinated Indemnity Agreement pursuant to which Six Flags agreed to guarantee the performance of the Guaranteed Obligations when due and to indemnify Historic TW, among others, in the event that the Guaranteed Obligations are not performed and the Six Flags Guarantee is called upon. In the event of a default of Six Flags’ obligations under the Subordinated Indemnity Agreement, the Subordinated Indemnity Agreement and related agreements provide, among other things, that Historic TW has the right to acquire control of the managing partner of the Parks. Six Flags’ obligations to Historic TW are further secured by its interest in all limited partnership units that are held by Six Flags. To date, no payments have been made by the Company pursuant to the Six Flags Guarantee.<BR/><BR/>In connection with the TWC Separation, guarantees previously made by Time Warner Entertainment Company, L.P. (“TWE”), a subsidiary of TWC, were terminated and, pursuant to and as required under the original terms of the Six Flags Guarantee, Warner Bros. Entertainment Inc. (“WBEI”) became a guarantor. In addition, TWE’s rights and obligations under the Subordinated Indemnity Agreement have been assigned to WBEI. The Company continues to indemnify TWE in connection with any residual exposure of TWE under the Guaranteed Obligations. <BR/><BR/>In April 2009, Six Flags received notices from limited partners of the Partnerships to sell limited partnership units with an aggregate price of approximately $66 million. The general partner of the Georgia limited partnership exercised its right to purchase Six Flags Georgia units having a total purchase price of $7 million. The remaining purchase price for limited partnership units in the Parks that were put was funded through $6 million of cash that had been held in escrow to support the Six Flags Guarantee and a loan from a wholly-owned Time Warner subsidiary (TW-SF LLC) of approximately $53 million (the “TW Loan”). The TW Loan was made to SFOG Acquisition A, Inc., a Delaware corporation, and SFOT Acquisition I, Inc., a Delaware corporation (collectively, the “Acquisition Corporations”). The TW Loan accrues interest at 14% per annum with a final maturity date of March 15, 2011. Up to $10 million of the TW Loan has been guaranteed by Six Flags. Taking into account the limited partnership units purchased in 2009, the estimated maximum Cumulative LP Unit Purchase Obligation for 2010 is approximately $300 million. In addition, the aggregate undiscounted estimated future cash flow requirements covered by the Six Flags Guarantee over the remaining term (through 2028) of the agreements are approximately $1.15 billion (for a net present value of approximately $415 million).  In July 2009, the Company received a payment on the TW Loan of $13 million (which included both principal and accrued interest) from the Acquisition Corporations.<BR/><BR/>On June 12, 2009, Six Flags and certain of its subsidiaries filed petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the Bankruptcy Court in Delaware. The reorganization plan that ultimately becomes effective is expected to result in a significant reduction in debt for Six Flags. It is too early to determine the impact, if any, of the reorganization proceedings on the guarantee by Six Flags of the TW Loan. The Partnerships holding the Parks and the Acquisition Corporations were not included in the debtors filing the bankruptcy proceeding. <BR/><BR/>Because the Six Flags Guarantee existed prior to the Company’s adoption of FASB Interpretation No. 45, Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others (“FIN 45”), and no modifications to the arrangements have been made since the date the guarantee came into existence, the recognition requirements of FIN 45 are not applicable to the arrangements and the Company has continued to account for the Guaranteed Obligations in accordance with FASB Statement No. 5, Accounting for Contingencies (“FAS 5”). Based on its evaluation of the current facts and circumstances surrounding the Guaranteed Obligations and the Subordinated Indemnity Agreement, the Company is unable to predict the loss, if any, that may be incurred under these Guaranteed Obligations and no liability for the arrangements has been recognized at June 30, 2009. Because of the specific circumstances surrounding the arrangements and the fact that no active or observable market exists for this type of financial guarantee, the Company is unable to determine a current fair value for the Guaranteed Obligations and related Subordinated Indemnity Agreement.<BR/><BR/>Google Investment in AOL<BR/><BR/>In connection with the expansion of their strategic relationship in April 2006, Google acquired a 5% interest in AOL, and, as a result, 95% of the equity interests in AOL were indirectly held by the Company and 5% were indirectly held by Google. As part of the April 2006 transaction, Google received certain registration rights relating to its equity interest in AOL. In late January 2009, Google exercised its right to request that AOL register Google’s 5% equity interest for sale in an initial public offering. Time Warner exercised its right to purchase Google’s equity interest for cash based on the appraised fair market value of the equity interest in lieu of conducting an initial public offering. On July 8, 2009, the Company repurchased Google’s 5% interest in AOL for $283 million in cash, which amount included a payment in respect of Google’s pro rata share of cash distributions to Time Warner by AOL attributable to the period of Google’s investment in AOL. The $283 million of noncontrolling interests was reclassified from equity to accounts payable and accrued liabilities in the consolidated balance sheet as of June 30, 2009. After repurchasing Google’s stake, Time Warner owns 100% of AOL.</P></FONT></DIV><DIV><FONT size="2"><P>Contingencies<BR/><BR/>Shareholder Derivative Lawsuits<BR/><BR/>During the Summer and Fall of 2002, numerous shareholder derivative lawsuits were filed in state and federal courts naming as defendants certain current and former directors and officers of the Company, as well as the Company as a nominal defendant. The complaints alleged that defendants breached their fiduciary duties by, among other things, causing the Company to issue corporate statements that did not accurately represent that AOL had declining advertising revenues. Certain of these lawsuits were later dismissed, and others were eventually consolidated in their respective jurisdictions. In 2006, the parties entered into a settlement agreement to resolve all of the remaining derivative matters, and the Court granted final approval of the settlement on September 6, 2006. The court has yet to rule on plaintiffs’ petition for attorneys’ fees and expenses. At June 30, 2009, the Company’s remaining reserve related to these matters is $10 million, which approximates an expected award for plaintiffs’ attorneys’ fees.<BR/><BR/>Other Matters<BR/><BR/>Warner Bros. (South) Inc. (“WBS”), a wholly owned subsidiary of the Company, is litigating numerous tax cases in Brazil. WBS currently is the theatrical distribution licensee for Warner Bros. Entertainment Nederlands (“Warner Bros. Nederlands”) in Brazil and acts as a service provider to the Warner Bros. Nederlands home video licensee. All of the ongoing tax litigation involves WBS’ distribution activities prior to January 2004, when WBS conducted both theatrical and home video distribution. Much of the tax litigation stems from WBS’ position that in distributing videos to rental retailers, it was conducting a distribution service, subject to a municipal service tax, and not the “industrialization” or sale of videos, subject to Brazilian federal and state VAT-like taxes. Both the federal tax authorities and the State of São Paulo, where WBS is based, have challenged this position. Certain of these matters were settled in September 2007 pursuant to a government-sponsored amnesty program. In some additional tax cases, WBS, often together with other film distributors, is challenging the imposition of taxes on royalties remitted outside of Brazil and the constitutionality of certain taxes. The Company intends to defend against the various remaining tax cases vigorously.<BR/><BR/>On October 8, 2004, certain heirs of Jerome Siegel, one of the creators of the “Superman” character, filed suit against the Company, DC Comics and Warner Bros. Entertainment Inc. in the U.S. District Court for the Central District of California. Plaintiffs’ complaint seeks an accounting and demands up to one-half of the profits made on Superman since the alleged April 16, 1999 termination by plaintiffs of Siegel’s grants of one-half of the rights to the Superman character to DC Comics’ predecessor-in-interest. Plaintiffs have also asserted various Lanham Act and unfair competition claims, alleging “wasting” of the Superman property by DC Comics and failure to accord credit to Siegel. The Company answered the complaint and filed counterclaims. On April 30, 2007, the Company filed motions for partial summary judgment on various issues, including the unavailability of accounting for pre-termination and foreign works. On March 26, 2008, the court entered an order of summary judgment finding, among other things, that plaintiffs’ notices of termination were valid and that plaintiffs had thereby recaptured, as of April 16, 1999, their rights to a one-half interest in the Superman story material, as first published, but that the accounting for profits would not include profits attributable to foreign exploitation, republication of pre-termination works and trademark exploitation. On October 6, 2008, the court dismissed plaintiffs’ Lanham Act and “wasting” claims with prejudice. In orders issued on October 14, 2008, the court determined that the remaining claims in the case will be subject to phased non-jury trials. The first phase trial concluded on May 21, 2009, and on July 8, 2009, the court issued a decision in favor of the defendants on the issue of whether the terms of various license agreements between DC Comics and Warner Bros. Entertainment Inc. were at fair market value or constituted “sweetheart deals.” A second phase trial is scheduled to commence on December 1, 2009. The Company intends to defend against this lawsuit vigorously. <BR/><BR/>On October 22, 2004, the same Siegel heirs filed a second lawsuit against the Company, DC Comics, Warner Bros. Entertainment Inc., Warner Communications Inc. and Warner Bros. Television Production Inc. in the U.S. District Court for the Central District of California. Plaintiffs claim that Jerome Siegel was the sole creator of the character Superboy and, as such, DC Comics has had no right to create new Superboy works since the alleged October 17, 2004 termination by plaintiffs of Siegel’s grants of rights to the Superboy character to DC Comics’ predecessor-in-interest. This lawsuit seeks a declaration regarding the validity of the alleged termination and an injunction against future use of the Superboy character. Plaintiffs have also asserted Lanham Act and unfair competition claims alleging false statements by DC Comics regarding the creation of the Superboy character. The Company answered the complaint and filed counterclaims. The case was consolidated for discovery purposes with the “Superman” action described immediately above. The parties filed cross-motions for summary judgment or partial summary judgment on February 15, 2006. In its ruling dated March 23, 2006, the court denied the Company’s motion for summary judgment, granted plaintiffs’ motion for partial summary judgment on termination and held that further proceedings are necessary to determine whether the Company’s Smallville television series may infringe on plaintiffs’ rights to the Superboy character. On January 12, 2007, the Company filed a motion for reconsideration of the court’s decision granting plaintiffs’ motion for partial summary judgment on termination. On April 30, 2007, the Company filed a motion for summary judgment on non-infringement of Smallville. On July 27, 2007, the court granted the Company’s motion for reconsideration, reversing the bulk of the March 23, 2006 ruling, and requested additional briefing on certain issues. On March 31, 2008, the court, among other things, denied the Company’s summary judgment motion as moot in view of the court’s July 27, 2007 reconsideration ruling. To the extent any issues remain, the Company intends to defend against this lawsuit vigorously. <BR/><BR/>On May 24, 1999, two former AOL Community Leader volunteers filed Hallissey et al. v. America Online, Inc. in the U.S. District Court for the Southern District of New York. This lawsuit was brought as a collective action under the Fair Labor Standards Act (“FLSA”) and as a class action under New York state law against AOL and AOL Community, Inc. The plaintiffs allege that, in serving as Community Leader volunteers, they were acting as employees rather than volunteers for purposes of the FLSA and New York state law and are entitled to minimum wages. On February 21, 2008, the court granted plaintiffs’ motion to issue notice to the former community leaders nationwide. Notice to the putative class was issued in May 2008 and in December 2008 and the putative class had until February 27, 2009 to opt-in to the collective action. In February 2009, plaintiffs filed a motion, the briefing for which was completed in May 2009, to amend their complaint to add claims under the wage laws in 25 states, including state wage claims already filed in the New Jersey and Ohio actions described below. The court denied plaintiffs' motion on July 17, 2009. In 2001, a related case was filed by several of the Hallissey plaintiffs in the U.S. District Court for the Southern District of New York alleging violations of the retaliation provisions of the FLSA. This case was stayed pending the outcome of the Company’s motion to dismiss in the Hallissey matter described above, but has not been activated (although the court denied that motion to dismiss in 2006). Also in 2001, two related class actions were filed in state courts in New Jersey and Ohio, alleging violations of the FLSA and/or the respective state laws. These cases were removed to federal court and subsequently transferred to the U.S. District Court for the Southern District of New York for consolidated pretrial proceedings with Hallissey. A third related action was filed in state court in California, which the parties have settled. The Company intends to defend against the remaining lawsuits vigorously.<BR/><BR/>On January 17, 2002, Community Leader volunteers filed a class action lawsuit in the U.S. District Court for the Southern District of New York against the Company, AOL and AOL Community, Inc. under ERISA. Plaintiffs allege that they are entitled to pension and/or welfare benefits and/or other employee benefits subject to ERISA. In March 2003, plaintiffs filed and served a second amended complaint, adding as defendants the Company’s Administrative Committee and the AOL Administrative Committee. On May 19, 2003, the Company, AOL and AOL Community, Inc. filed a motion to dismiss and the Administrative Committees filed a motion for judgment on the pleadings. Both of these motions are pending. The Company intends to defend against these lawsuits vigorously.<BR/><BR/>On August 1, 2005, Thomas Dreiling filed a derivative suit in the U.S. District Court for the Western District of Washington against AOL and Infospace Inc. as nominal defendant. The complaint, brought in the name of Infospace by one of its shareholders, asserts violations of Section 16(b) of the Exchange Act. Plaintiff alleges that certain AOL executives and the founder of Infospace, Naveen Jain, entered into an agreement to manipulate Infospace’s stock price through the exercise of warrants that AOL had received in connection with a commercial agreement with Infospace. Because of this alleged agreement, plaintiff asserts that AOL and Mr. Jain constituted a “group” that held more than 10% of Infospace’s stock and, as a result, AOL violated the short-swing trading prohibition of Section 16(b) in connection with sales of shares received from the exercise of those warrants. The complaint seeks disgorgement of profits, interest and attorneys’ fees. On October 11, 2007, the parties filed cross-motions for summary judgment. On January 3, 2008, the court granted AOL’s motion and dismissed the complaint with prejudice. Plaintiff has filed a notice of appeal with the U.S. Court of Appeals for the Ninth Circuit, and the oral argument on that appeal was held on May 7, 2009. The court’s decision is pending. The Company intends to defend against this lawsuit vigorously.<BR/><BR/>In September 2006, Ronald A. Katz Technology Licensing, L.P. (“Katz”) filed a complaint, seeking unspecified monetary damages as well as injunctive relief, alleging that AOL and TWC, among other defendants, infringe a number of patents purportedly relating to customer call center operations and/or voicemail services. While the Company has reported on this case in its notes to financial statements and still intends to defend against this lawsuit vigorously, following the separation of TWC from the Company in March 2009, the Company does not view the remaining claims brought by Katz against AOL to be material. As a result, the Company does not intend to include disclosure regarding this matter in its future notes to financial statements.<BR/><BR/>On February 11, 2008, trustees of the Tolkien Trust and the J.R.R. Tolkien 1967 Discretionary Settlement Trust, as well as HarperCollins Publishers, Ltd. and two related publishing entities, sued New Line Cinema Corporation (“NLC Corp.”), a wholly owned subsidiary of the Company, and Katja Motion Picture Corp. (“Katja”), a wholly owned subsidiary of NLC Corp., and other unnamed defendants in Los Angeles Superior Court. The complaint alleges that defendants breached contracts relating to three motion pictures: The Lord of the Rings: The Fellowship of the Ring; The Lord of the Rings: The Two Towers; and The Lord of the Rings: The Return of the King (collectively, the “Trilogy”) by, among other things, failing to make full payment to plaintiffs for their participation in the Trilogy’s gross receipts. The suit also seeks declarations as to the meaning of several provisions of the relevant agreements, including a declaration that would terminate defendants’ future rights to other motion pictures based on J.R.R. Tolkien’s works, including The Hobbit. In addition, the complaint sets forth related claims of breach of fiduciary duty, fraud and for reformation, an accounting and imposition of a constructive trust. Plaintiffs seek compensatory damages in excess of $150 million, unspecified punitive damages, and other relief. On May 14, 2008, NLC Corp. moved to dismiss under California law certain claims in the complaint and on June 24, 2008, the court granted that motion, finding that plaintiffs had failed to state sufficient facts to support their fraud and breach of fiduciary duty claims, and granted plaintiffs leave to amend the complaint. On July 14, 2008, plaintiffs filed an amended complaint, adding a cause of action for reformation of the underlying contracts. NLC Corp. again moved to dismiss certain claims and, on September 22, 2008, the court granted that motion, dismissing the plaintiffs’ claims for reformation and punitive damages without leave to amend. On October 3, 2008, plaintiffs moved for reconsideration of that decision, and on November 20, 2008 the court denied the plaintiffs’ motion. On November 3, 2008, Katja was dismissed from the case upon the consent of all parties. On May 1, 2009, NLC Corp. filed a motion to vacate jury trial and a motion to bifurcate, both of which were denied by the court on June 2, 2009 (the latter with permission to re-file at a subsequent time). On July 2, 2009, NLC Corp. filed a motion for summary adjudication regarding plaintiffs’ purported termination rights. Trial is currently scheduled for October 2009. The Company intends to defend against this lawsuit vigorously.<BR/><BR/>Between December 27, 2006 and July 6, 2009, AOL Europe Services SARL (“AOL Luxembourg”), a wholly owned subsidiary of AOL organized under the laws of Luxembourg, received four assessments from the French tax authorities for French value added tax (“VAT”) related to AOL Luxembourg’s subscription revenues from French subscribers earned during the period from July 1, 2003 through October 31, 2006. The French tax authorities allege that the French subscriber revenues are subject to French VAT, instead of Luxembourg VAT, as originally reported and paid by AOL Luxembourg. The assessments, including interest accrued through the respective assessment dates, total €187.1 million (approximately $263 million based on the euro to dollar exchange rate as of June 30, 2009). On May 12, 2009, the French tax authority issued a collection notice for €94 million (approximately $132 million based on the euro to dollar exchange rate as of June 30, 2009), the amount of the 2003 and 2004 assessments. The Company is currently appealing the assessments at the French VAT audit level and intends to continue to defend against the assessments vigorously.<BR/><BR/>On September 20, 2007, Brantley, et al. v. NBC Universal, Inc., et al. was filed in the U.S. District Court for the Central District of California against the Company. The complaint, which also named as defendants several other programming content providers (collectively, the “programmer defendants”) as well as cable and satellite providers (collectively, the “distributor defendants”), alleged violations of Sections 1 and 2 of the Sherman Antitrust Act. Among other things, the complaint alleged coordination between and among the programmer defendants to sell and/or license programming on a “bundled” basis to the distributor defendants, who in turn purportedly offer that programming to subscribers in packaged tiers, rather than on a per channel (or “à la carte”) basis. Plaintiffs, who seek to represent a purported nationwide class of cable and satellite subscribers, demand, among other things, unspecified treble monetary damages and an injunction to compel the offering of channels to subscribers on an “à la carte” basis. On December 3, 2007, plaintiffs filed an amended complaint in this action (the “First Amended Complaint”) that, among other things, dropped the Section 2 claims and all allegations of horizontal coordination. The defendants, including the Company, filed motions to dismiss the First Amended Complaint and these motions were granted, with leave to amend. On March 20, 2008, plaintiffs filed a second amended complaint (the “Second Amended Complaint”) that modified certain aspects of the First Amended Complaint. On April 22, 2008, the defendants, including the Company, filed motions to dismiss the Second Amended Complaint, which motions were denied. On July 14, 2008, the defendants filed motions requesting the court to certify its order for interlocutory appeal to the U.S. Court of Appeals for the Ninth Circuit, which motions were denied. On November 14, 2008, the Company was dismissed as a programmer defendant, and Turner Broadcasting System, Inc. was substituted in its place. On May 1, 2009, by stipulation of the parties, plaintiffs filed a third amended complaint (the “Third Amended Complaint”) and a related motion to adjudicate an element of plaintiffs’ claim. On June 12, 2009, all defendants opposed that motion and moved to dismiss the Third Amended Complaint.  On the same date, the distributor defendants also filed a motion to dismiss for lack of standing. The Company intends to defend against this lawsuit vigorously.<BR/>        <BR/>On April 4, 2007, the National Labor Relations Board (“NLRB”) issued a complaint against CNN America Inc. (“CNN America”) and Team Video Services, LLC (“Team Video”). This administrative proceeding relates to CNN America’s December 2003 and January 2004 terminations of its contractual relationships with Team Video, under which Team Video had provided electronic newsgathering services in Washington, DC and New York, NY. The National Association of Broadcast Employees and Technicians, under which Team Video’s employees were unionized, initially filed charges of unfair labor practices with the NLRB in February 2004, alleging that CNN America and Team Video were joint employers, that CNN America was a successor employer to Team Video, and/or that CNN America discriminated in its hiring practices to avoid becoming a successor employer or due to specific individuals’ union affiliation or activities. The NLRB investigated the charges and issued the above-noted complaint. The complaint seeks, among other things, the reinstatement of certain union members and monetary damages. A hearing in the matter before an NLRB Administrative Law Judge began on December 3, 2007 and ended on July 21, 2008. On November 19, 2008, the Administrative Law Judge issued a non-binding recommended decision finding CNN America liable. On February 17, 2009, CNN America filed exceptions to this decision with the NLRB. The Company intends to defend against this matter vigorously.<BR/><BR/>On June 6, 2005, David McDavid and certain related entities (collectively, “McDavid”) filed a complaint against Turner Broadcasting System, Inc. (“Turner”) and the Company in Georgia state court. The complaint asserted, among other things, claims for breach of contract, breach of fiduciary duty, promissory estoppel and fraud relating to an alleged oral agreement between plaintiffs and Turner for the sale of the Atlanta Hawks and Thrashers sports franchises and certain operating rights to the Philips Arena. On August 20, 2008, the court issued an order dismissing all claims against the Company. The court also dismissed certain claims against Turner for breach of an alleged oral exclusivity agreement, for promissory estoppel based on the alleged exclusivity agreement and for breach of fiduciary duty. A trial as to the remaining claims against Turner commenced on October 8, 2008 and concluded on December 2, 2008. On December 9, 2008, the jury announced its verdict in favor of McDavid on the breach of contract and promissory estoppel claims, awarding damages on those claims of $281 million and $35 million, respectively. Pursuant to the court’s direction that McDavid choose one of the two claim awards, McDavid elected the $281 million award. The jury found in favor of Turner on the two remaining claims of fraud and breach of confidential information. On January 12, 2009, Turner filed a motion to overturn the jury verdict or, in the alternative, for a new trial, and, on April 22, 2009, the court denied the motion. On April 23, 2009, Turner filed a notice of appeal to the Georgia Court of Appeals and on June 15, 2009 posted a $25 million letter of credit as security pending appeal. The Company has a reserve established for this matter at June 30, 2009 of approximately $292 million (including interest accrued through such date), although it intends to defend against this lawsuit vigorously.<BR/><BR/>On March 10, 2009, Anderson News L.L.C. and Anderson Services L.L.C. (collectively, “Anderson News”) filed an antitrust lawsuit in the U.S. District Court for the Southern District of New York against several magazine publishers, distributors and wholesalers, including Time Inc. and one of its subsidiaries, Time/Warner Retail Sales & Marketing, Inc. Plaintiffs allege that defendants violated Section 1 of the Sherman Antitrust Act by engaging in an antitrust conspiracy against Anderson News, as well as other related state law claims. Plaintiffs are seeking unspecified monetary damages. The Company intends to defend against this lawsuit vigorously.<BR/><BR/>From time to time, the Company receives notices from third parties claiming that it infringes their intellectual property rights. Claims of intellectual property infringement could require Time Warner to enter into royalty or licensing agreements on unfavorable terms, incur substantial monetary liability or be enjoined preliminarily or permanently from further use of the intellectual property in question. In addition, certain agreements entered into by the Company may require the Company to indemnify the other party for certain third-party intellectual property infringement claims, which could increase the Company’s damages and its costs of defending against such claims. Even if the claims are without merit, defending against the claims can be time-consuming and costly.<BR/><BR/>The costs and other effects of pending or future litigation, governmental investigations, legal and administrative cases and proceedings (whether civil or criminal), settlements, judgments and investigations, claims and changes in those matters (including those matters described above), and developments or assertions by or against the Company relating to intellectual property rights and intellectual property licenses, could have a material adverse effect on the Company’s business, financial condition and operating results.</P></FONT></DIV><DIV><FONT size="2"><P>Income Tax Uncertainties<BR/><BR/>During the six months ended June 30, 2009, the Company recorded additional income tax reserves of approximately $45 million. Of the $45 million additional income tax reserves, approximately $24 million would affect the Company’s effective tax rate if reversed. During the six months ended June 30, 2009, the Company recorded interest reserves related to the income tax reserves of approximately $67 million.</P></FONT></DIV></BODY></HTML>
<HTML><HEAD><META content="text/html; charset=utf-8" /></HEAD><BODY><DIV><FONT size="2"><P>13.        ADDITIONAL FINANCIAL INFORMATION<BR/><BR/>Cash Flows<BR/><BR/>Additional financial information with respect to cash (payments) and receipts is as follows (millions):</P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2"><B> </B></FONT><SUP><FONT size="1"><B></B></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Six Months Ended</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2"><B> </B></FONT><SUP><FONT size="1"><B></B></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2"><B> </B></FONT><SUP><FONT size="1"><B></B></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B>(recast)</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">Cash payments made for interest</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (567)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (714)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">Interest income received</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 25 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 53 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">Cash interest payments, net</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> (542)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> (661)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">Cash payments made for income taxes</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (591)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (423)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">Income tax refunds received</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 61 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 101 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">TWC tax sharing (payment) receipts</FONT><SUP><FONT size="1">(a)</FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (34)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 9 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2">Cash tax payments, net</FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> (564)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> (313)</FONT></TD></TR><TR><TD width="14" height="1" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="462" height="1" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="1" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="1" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="1" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="1" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="1" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="1" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD colspan="2" width="491" height="14" align="left"><FONT size="2">___________</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1"></FONT></SUP><FONT size="2"> </FONT></TD><TD width="462" height="14" align="left"><FONT size="2"> </FONT><SUP><FONT size="1"></FONT></SUP></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="14" height="14" align="left"><SUP><FONT size="1">(a)</FONT></SUP><FONT size="2"> </FONT></TD><TD colspan="8" width="681" height="14" align="left"><FONT size="2">Represents amounts (paid) received from TWC in accordance with a tax sharing agreement.</FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>The consolidated statement of cash flows for the six months ended June 30, 2009 does not reflect approximately $30 million of common stock repurchases that were executed in the second quarter of 2009, for which payment was made in the third quarter of 2009. <BR/><BR/>The consolidated statement of cash flows for the six months ended June 30, 2009 does not reflect the noncash dividend of all shares of TWC common stock held by the Company in a spin-off to Time Warner stockholders, which reduced shareholders’ equity by $6.822 billion.<BR/><BR/>Interest Expense, Net<BR/><BR/>Interest expense, net, consists of (millions):</P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Three Months Ended</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Six Months Ended</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B>(recast)</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B>(recast)</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Interest income</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 39 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 45 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 73 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 92 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Interest expense</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (334)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (376)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (680)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (770)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Total interest expense, net</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> (295)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> (331)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> (607)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> (678)</FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>Other Income (Loss), Net<BR/><BR/>Other income (loss), net, consists of (millions):</P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Three Months Ended</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Six Months Ended</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B>(recast)</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B>(recast)</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Investment gains (losses), net</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 37 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 20 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 24 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (16)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Loss on equity method investees</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (7)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (5)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (30)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (18)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Losses on accounts receivable</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (2)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (7)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (4)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (20)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Other</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (9)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 1 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (10)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 4 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Total other income (loss), net</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 19 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 9 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> (20)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> (50)</FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>Related Parties<BR/><BR/>Income (expense) resulting from transactions with related parties consists of (millions):</P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Three Months Ended</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="5" width="180" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Six Months Ended</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/09</B></FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"><B>6/30/08</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B>(recast)</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="75" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="85" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B>(recast)</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Revenues</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 73 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 84 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 178 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> 177 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Costs of revenues</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (8)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (2)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (9)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (5)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="271" height="14" align="left"><FONT size="2">Selling, general and administrative</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (1)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (3)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (5)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="75" height="14" align="right"><FONT size="2"> (4)</FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>Prepaid Expenses and Other Current Assets<BR/><BR/>The Company has historically invested a portion of its cash on hand in money market funds, including The Reserve Fund’s Primary Fund (“The Reserve Fund”). On the morning of September 15, 2008, the Company requested a full redemption of its approximately $330 million investment in The Reserve Fund, but the redemption request was not honored. On September 22, 2008, The Reserve Fund announced that redemptions of shares were suspended pursuant to an SEC order requested by The Reserve Fund so that an orderly liquidation could be effected. Through July 28, 2009, the Company has received $297 million from The Reserve Fund representing its pro rata share of partial distributions made by The Reserve Fund. The Company has not been informed as to when the remaining amount will be returned. In February 2009, The Reserve Fund announced that it would set aside an initial amount of $3.5 billion to defend against certain legal actions. The Company has filed a claim against The Reserve Fund demanding repayment of the remaining amount of its full investment. As a result of the status of The Reserve Fund, the Company has classified its receivable from The Reserve Fund at June 30, 2009 as other current assets on the Company’s consolidated balance sheet.<BR/><BR/>Accounts Payable and Accrued Liabilities<BR/><BR/>Accounts payable and accrued liabilities consist of (millions):<BR/></P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="14" height="17" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="17" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="17" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="105" height="17" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>June 30, 2009</B></FONT></TD><TD width="10" height="17" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="105" height="17" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>December 31, 2008</B></FONT></TD></TR><TR><TD width="14" height="17" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="17" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="17" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="17" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="95" height="17" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="17" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="105" height="17" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B>(recast)</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2">Accounts payable</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 640 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 800 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2">Accrued expenses</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 2,783 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 2,789 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2">Participations payable</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 2,575 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 2,522 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2">Royalties and programming costs payable</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 820 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 687 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2">Accrued compensation</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 716 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 974 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2">Accrued interest</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 282 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 265 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2">Accrued income taxes</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 136 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 157 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2">Total accounts payable and accrued liabilities</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="95" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 7,952 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="95" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 8,194 </FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>Other Noncurrent Liabilities<BR/><BR/>Other noncurrent liabilities consist of (millions):<BR/></P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="105" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>June 30, 2009</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="105" height="14" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>December 31, 2008</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="95" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="105" height="14" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B>(recast)</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2">Noncurrent tax and interest reserves</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 2,174 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 2,106 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2">Participations payable</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 947 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 1,384 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2">Royalties and programming costs payable</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 1,184 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 1,145 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2">Noncurrent pension and post retirement liabilities</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 853 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 829 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2">Deferred compensation</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 525 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 552 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2">Other noncurrent liabilities</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 789 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 785 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2">Total other noncurrent liabilities</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="95" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 6,472 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="95" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 6,801 </FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>Accounts Receivable and Receivables Securitized<BR/><BR/>Accounts receivable and receivables securitized consist of (millions):</P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="14" height="17" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="17" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="17" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="105" height="17" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>June 30, 2009</B></FONT></TD><TD width="10" height="17" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="105" height="17" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>December 31, 2008</B></FONT></TD></TR><TR><TD width="14" height="17" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="17" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="17" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="17" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="95" height="17" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="17" align="left"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="105" height="17" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B>(recast)</B></FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2">Securitized trade receivables</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 1,546 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="95" height="14" align="right"><FONT size="2"> 1,984 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2">Receivables sold to third parties</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (744)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (805)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2">Retained interests in securitizations</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 802 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,179 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2">Receivables not subject to securitizations</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 5,855 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 6,754 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2">Receivables, including retained interest in securitizations</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 6,657 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 7,933 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2">Allowances</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (1,810)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (2,269)</FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2">Current receivables, including retained interests in securitizations, net</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 4,847 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 5,664 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2">Noncurrent receivables (included in other assets)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 950 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="95" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 983 </FONT></TD></TR><TR><TD width="14" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="421" height="14" align="left"><FONT size="2">Total receivables</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="95" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 5,797 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="95" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 6,647 </FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>Revenues (and related receivables) from the distribution of television product are recognized when the film or series is made available to customers for exploitation. In certain circumstances, the availability dates granted to the customers may precede the date the Company, pursuant to the terms of the applicable contractual arrangements, may bill the customers for these sales. Unbilled accounts receivable, which primarily relate to the aforementioned distribution of television product, totaled $2.334 billion and $2.428 billion at June 30, 2009 and December 31, 2008, respectively. Included in the unbilled accounts receivable at June 30, 2009 was $1.538 billion to be billed in the next twelve months.</P></FONT></DIV></BODY></HTML>
<HTML><HEAD><META content="text/html; charset=utf-8" /></HEAD><BODY><DIV><FONT size="2"><P>Overview<BR/><BR/>Set forth below are condensed consolidating financial statements presenting the financial position, results of operations and cash flows of (i) Time Warner Inc. (the “Parent Company”), (ii) Historic TW Inc. (in its own capacity and as successor to Time Warner Companies, Inc.), Home Box Office, Inc. (“HBO”), and Turner Broadcasting System, Inc., each a wholly owned subsidiary of the Parent Company, on a combined basis (collectively, the “Guarantor Subsidiaries”), (iii) the direct and indirect non-guarantor subsidiaries of the Parent Company (the “Non-Guarantor Subsidiaries”) on a combined basis and (iv) the eliminations necessary to arrive at the information for Time Warner Inc. on a consolidated basis. These condensed consolidating financial statements are included in connection with the registration statement on Form S-3 filed with the Securities and Exchange Commission by the Parent Company and HBO on April 6, 2009.<BR/><BR/>There are no legal or regulatory restrictions on the Parent Company’s ability to obtain funds from any of its wholly owned subsidiaries through dividends, loans or advances.<BR/><BR/>These condensed consolidating financial statements should be read in conjunction with the consolidated financial statements of Time Warner Inc. and reflect Time Warner Cable Inc., which was separated from the Parent Company on March 12, 2009, as a discontinued operation.<BR/><BR/>On April 15, 2009, the Parent Company completed a solicitation of consents (the “Consent Solicitation”) from the holders of debt securities issued under certain Indentures (the “Securities”), resulting in the adoption on April 16, 2009 of certain amendments to each Indenture that provide that certain restrictive covenants will not apply (subject to the concurrent or prior issuance of the guarantee by HBO discussed below) to a conveyance or transfer by AOL LLC, a subsidiary of the Parent Company, of its properties and assets substantially as an entirety unless such conveyance or transfer constitutes a conveyance or transfer of the properties and assets of the issuer and the guarantors under the relevant Indenture and their respective subsidiaries, taken as a whole, substantially as an entirety. As a result of the Consent Solicitation, in connection with the conveyance or transfer of AOL LLC’s properties and assets substantially as an entirety, HBO will issue a guarantee of the obligations of Historic TW Inc., whether as issuer or guarantor, under the Indentures and the Securities.  Such guarantee will be issued by HBO only in connection with such a transaction.  Accordingly, for purposes of this presentation, the consolidating financial information herein reflects HBO as a Guarantor Subsidiary and does not reflect the historical financial information of AOL LLC in the Guarantor data and information.  Instead, the historical financial information of AOL LLC is reflected in the data and information regarding the Non-Guarantor Subsidiaries.  If the HBO guarantee is issued, HBO, together with the other Guarantor Subsidiaries, will fully and unconditionally, jointly and severally, guarantee the Securities on an unsecured basis.<BR/><BR/>Basis of Presentation<BR/><BR/>In presenting the condensed consolidating financial statements, the equity method of accounting has been applied to (i) the Parent Company’s interests in the Guarantor Subsidiaries and (ii) the Guarantor Subsidiaries’ interests in the Non-Guarantor Subsidiaries, where applicable, even though all such subsidiaries meet the requirements to be consolidated under U.S. generally accepted accounting principles. All intercompany balances and transactions between the Parent Company, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries have been eliminated, as shown in the column “Eliminations.”<BR/><BR/>The Parent Company’s accounting bases in all subsidiaries, including goodwill and identified intangible assets, have been “pushed down” to the applicable subsidiaries. Interest income (expense) is determined based on third-party debt and the relevant intercompany amounts within the respective legal entity.<BR/><BR/>All direct and indirect domestic subsidiaries are included in Time Warner Inc.’s consolidated U.S. tax return. In the condensed consolidating financial statements, tax expense has been allocated based on each such subsidiary’s relative pretax income to the consolidated pretax income. With respect to the use of certain consolidated tax attributes (principally operating and capital loss carryforwards), such benefits have been allocated to the respective subsidiary that generated the taxable income permitting such use (i.e., pro-rata based on where the income was generated). For example, to the extent a Non-Guarantor Subsidiary generated a gain on the sale of a business for which the Parent Company utilized tax attributes to offset such gain, the tax attribute benefit would be allocated to that Non-Guarantor Subsidiary. Deferred taxes of the Parent Company, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries have been allocated based upon the temporary differences between the carrying amounts of the respective assets and liabilities of the applicable entities.<BR/><BR/>Corporate overhead expenses have been reflected as expenses of the Parent Company and have not been allocated to the Guarantor Subsidiaries or the Non-Guarantor Subsidiaries. Certain transfers of cash between subsidiaries and their parent companies are reflected as cash flows from investing and financing activities in the accompanying condensed consolidating statements of cash flows. All other intercompany activity is reflected in cash flows from operations.<BR/><BR/></P></FONT></DIV><DIV><FONT size="2"><P>Consolidating Balance Sheet<BR/>June 30, 2009<BR/>(Unaudited)<BR/><BR/></P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="255" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="15" align="center"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center"><FONT size="2"><B>Time</B></FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center"><FONT size="2"><B>Parent</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center"><FONT size="2"><B>Guarantor</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center"><FONT size="2"><B>Non-Guarantor</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center"><FONT size="2"><B>Warner</B></FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Company</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Subsidiaries</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Subsidiaries</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Eliminations</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Consolidated</B></FONT></TD></TR><TR><TD width="255" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="14" width="400" height="15" align="center"><FONT size="2"><B>(millions)</B></FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"><B>ASSETS</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2"><B>Current assets</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Cash and equivalents</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 6,051 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 86 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 872 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 7,009 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Receivables, net</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 27 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 678 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 4,142 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 4,847 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Inventories</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 541 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,299 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,840 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Deferred income taxes</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 802 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 642 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 643 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (1,285)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 802 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Prepaid expenses and other current assets</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 107 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 93 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 545 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 745 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Total current assets</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 6,987 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 2,040 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 7,501 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (1,285)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 15,243 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Noncurrent inventories and film costs</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 1,767 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 3,452 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (111)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 5,108 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Investments in amounts due to and from consolidated</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">  subsidiaries</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 43,734 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 20,942 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 11,209 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (75,885)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> - </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Investments, including available-for-sale securities</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 63 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 367 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,242 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (495)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,177 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Property, plant and equipment</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 387 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 480 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 3,872 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 4,739 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Intangible assets subject to amortization, net</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 1 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 3,593 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 3,594 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Intangible assets not subject to amortization</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 2,009 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 5,723 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 7,732 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Goodwill</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 9,879 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 22,185 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 32,064 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Other assets</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 178 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 104 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 981 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 1,263 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Total assets</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 51,349 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 37,589 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 59,758 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> (77,776)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 70,920 </FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="right" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"><B>LIABILITIES AND EQUITY</B></FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="right"><FONT size="2"> </FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"><B>Current liabilities</B></FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="right"><FONT size="2"> </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Accounts payable and accrued liabilities</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 624 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 1,197 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 6,286 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (155)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 7,952 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Deferred revenue</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 11 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 935 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (13)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 933 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Debt due within one year</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 2,000 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 13 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 74 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 2,087 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Current liabilities of discontinued operations</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 2 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 2 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Total current liabilities</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 2,624 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,221 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 7,297 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (168)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 10,974 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Long-term debt</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 9,977 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 5,341 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 93 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 15,411 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Due (to) from affiliates</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (890)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 890 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> - </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Deferred income taxes</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 1,251 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 2,820 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 2,618 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (5,438)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,251 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Deferred revenue</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 374 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (107)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 267 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Other noncurrent liabilities</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 2,202 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 2,317 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 4,170 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (2,217)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 6,472 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2"><B>Equity</B></FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Due (to) from Time Warner and subsidiaries</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (17,239)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (3,707)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 20,946 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> - </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Other shareholders’ equity</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 36,185 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 43,129 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 47,519 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (90,648)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 36,185 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Total Time Warner Inc. shareholders’ equity</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 36,185 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 25,890 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 43,812 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (69,702)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 36,185 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Noncontrolling interests</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 504 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (144)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 360 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Total equity</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 36,185 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 25,890 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 44,316 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> (69,846)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 36,545 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Total liabilities and equity</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 51,349 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 37,589 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 59,758 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> (77,776)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 70,920 </FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>Consolidating Balance Sheet<BR/>December 31, 2008<BR/>(Unaudited)<BR/><BR/></P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="255" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="75" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="15" align="center"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="center"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center"><FONT size="2"><B>Time</B></FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center"><FONT size="2"><B>Parent</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center"><FONT size="2"><B>Guarantor</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center"><FONT size="2"><B>Non-Guarantor</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center"><FONT size="2"><B>Warner</B></FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Company</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Subsidiaries</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Subsidiaries</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Eliminations</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Consolidated</B></FONT></TD></TR><TR><TD width="255" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="14" width="400" height="15" align="center"><FONT size="2"><B>(recast, millions)</B></FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"><B>ASSETS</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2"><B>Current assets</B></FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Cash and equivalents</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 469 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 103 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 661 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,233 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Receivables, net</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 67 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 675 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 4,922 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 5,664 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Inventories</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 548 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,294 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,842 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Deferred income taxes</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 624 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 464 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 465 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (929)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 624 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Prepaid expenses and other current assets</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 217 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 107 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 448 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 772 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Current assets of discontinued operations</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 6,480 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 6,480 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Total current assets</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,377 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,897 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 14,270 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (929)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 16,615 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Noncurrent inventories and film costs</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 1,737 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 3,726 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (124)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 5,339 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Investments in amounts due to and from consolidated </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">  subsidiaries</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 59,525 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 38,198 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 11,178 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (108,901)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> - </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Investments, including available-for-sale securities</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 68 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 382 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,047 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (461)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,036 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Property, plant and equipment</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 406 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 499 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 3,991 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 4,896 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Intangible assets subject to amortization, net</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 2 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 3,562 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 3,564 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Intangible assets not subject to amortization</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 2,009 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 5,719 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 7,728 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Goodwill</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 9,879 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 22,549 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 32,428 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Other assets</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 104 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 101 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,015 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,220 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Noncurrent assets of discontinued operations</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 41,231 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 41,231 </FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2">Total assets</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 61,480 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 54,704 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 108,288 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> (110,415)</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 114,057 </FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="left" style="border-top: 3px double #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"><B>LIABILITIES AND EQUITY</B></FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2"><B>Current liabilities</B></FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Accounts payable and accrued liabilities</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 463 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 1,030 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 6,789 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (88)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 8,194 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Deferred revenue</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 8 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,020 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (16)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,012 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Debt due within one year</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 2,000 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 12 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 54 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 2,066 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Current liabilities of discontinued operations</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 2,865 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 2,865 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Total current liabilities</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 2,463 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,050 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 10,728 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (104)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 14,137 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Long-term debt</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 14,466 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 5,350 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 73 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 19,889 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Due (to) from affiliates</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (847)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 847 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> - </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Deferred income taxes</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 974 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 2,795 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 2,616 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (5,411)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 974 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Deferred revenue</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 379 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (113)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 266 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Other noncurrent liabilities</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 2,136 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 2,330 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 4,504 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (2,169)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 6,801 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Noncurrent liabilities of discontinued operations</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 26,320 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 26,320 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2"><B>Equity</B></FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Due (to) from Time Warner and subsidiaries</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (15,308)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (30,627)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 45,935 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> - </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Other shareholders’ equity</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 42,288 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 58,487 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 89,927 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (148,414)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 42,288 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Total Time Warner Inc. shareholders’ equity</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 42,288 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 43,179 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 59,300 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (102,479)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 42,288 </FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2">Noncontrolling interests</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 3,521 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (139)</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 3,382 </FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2">Total equity</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 42,288 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 43,179 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 62,821 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> (102,618)</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 45,670 </FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2">Total liabilities and equity</FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 61,480 </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 54,704 </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 108,288 </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> (110,415)</FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 114,057 </FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>Consolidating Statement of Operations<BR/>For The Three Months Ended June 30, 2009<BR/>(Unaudited)<BR/><BR/></P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="255" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="15" align="center"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="74" height="15" align="center"><FONT size="2"><B>Time</B></FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center"><FONT size="2"><B>Parent </B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center"><FONT size="2"><B>Guarantor</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center"><FONT size="2"><B>Non-Guarantor</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="74" height="15" align="center"><FONT size="2"><B>Warner</B></FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Company</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Subsidiaries</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Subsidiaries</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Eliminations</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="74" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Consolidated</B></FONT></TD></TR><TR><TD width="255" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="64" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="14" width="399" height="15" align="center"><FONT size="2"><B>(millions)</B></FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="64" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Revenues</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 1,282 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 5,570 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (43)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2">$</FONT></TD><TD width="64" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 6,809 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Costs of revenues</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (612)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (3,271)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 42 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="64" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (3,841)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Selling, general and administrative</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (82)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (214)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (1,303)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 1 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="64" height="14" align="right"><FONT size="2"> (1,598)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Amortization of intangible assets</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (112)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="64" height="14" align="right"><FONT size="2"> (112)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Restructuring costs</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (42)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="64" height="14" align="right"><FONT size="2"> (42)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Loss on sale of assets</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (33)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="64" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (33)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Operating income (loss)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (82)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 456 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 809 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="64" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,183 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Equity in pretax income of consolidated subsidiaries</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 1,192 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 634 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 306 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (2,132)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="64" height="14" align="right"><FONT size="2"> - </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Interest expense, net</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (183)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (106)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (6)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="64" height="14" align="right"><FONT size="2"> (295)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Other income (loss), net</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (20)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 68 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (29)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="64" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 19 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Income from continuing operations before income taxes</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 907 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 984 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,177 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (2,161)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="64" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 907 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Income tax provision</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (377)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (415)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (484)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 899 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="64" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (377)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Income from continuing operations</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 530 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 569 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 693 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (1,262)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="64" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 530 </FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2">Discontinued operations, net of tax</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="64" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2">Net income</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 530 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 569 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 693 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (1,262)</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="64" height="15" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 530 </FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2">Less Net income attributable to noncontrolling interests</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (11)</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (7)</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (19)</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 26 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="64" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (11)</FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2">Net income attributable to Time Warner Inc. shareholders</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 519 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 562 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 674 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> (1,236)</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="64" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 519 </FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>Consolidating Statement of Operations<BR/>For The Three Months Ended June 30, 2008<BR/>(Unaudited)<BR/><BR/><BR/></P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="255" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="15" align="center"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="center"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center"><FONT size="2"><B>Time</B></FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center"><FONT size="2"><B>Parent</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center"><FONT size="2"><B>Guarantor</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center"><FONT size="2"><B>Non-Guarantor</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center"><FONT size="2"><B>Warner</B></FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Company</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Subsidiaries</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Subsidiaries</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Eliminations</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Consolidated</B></FONT></TD></TR><TR><TD width="255" height="1" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="1" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="14" width="400" height="15" align="center"><FONT size="2"><B>(recast, millions)</B></FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Revenues</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 1,228 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 6,339 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (98)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 7,469 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Costs of revenues</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (603)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (3,836)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 97 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (4,342)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Selling, general and administrative</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (84)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (198)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (1,486)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 1 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (1,767)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Amortization of intangible assets</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (2)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (127)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (129)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Restructuring costs</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (1)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (5)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (6)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Asset impairments</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (18)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (18)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Operating income (loss)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (85)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 425 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 867 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,207 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Equity in pretax income of consolidated subsidiaries</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 1,190 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 728 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 350 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (2,268)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> - </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Interest expense, net</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (243)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (216)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 128 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (331)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Other income (loss), net</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 23 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 3 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 7 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (24)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 9 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Income from continuing operations before income</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">  taxes</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 885 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 940 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 1,352 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (2,292)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 885 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Income tax provision</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (315)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (334)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (503)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 837 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (315)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Income from continuing operations</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 570 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 606 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 849 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (1,455)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 570 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Discontinued operations, net of tax</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 273 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 271 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 269 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (540)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 273 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Net income</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 843 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 877 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,118 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (1,995)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 843 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Less Net income attributable to noncontrolling interests</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (51)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (45)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (40)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 85 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (51)</FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2">Net income attributable to Time Warner Inc. shareholders</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 792 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 832 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 1,078 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> (1,910)</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 792 </FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>Consolidating Statement of Operations<BR/>For The Six Months Ended June 30, 2009<BR/>(Unaudited)<BR/><BR/></P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="255" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD colspan="2" width="75" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="15" align="center"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="center"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center"><FONT size="2"><B>Time</B></FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center"><FONT size="2"><B>Parent</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center"><FONT size="2"><B>Guarantor</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center"><FONT size="2"><B>Non-Guarantor</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center"><FONT size="2"><B>Warner</B></FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Company</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Subsidiaries</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Subsidiaries</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Eliminations</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Consolidated</B></FONT></TD></TR><TR><TD width="255" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="14" width="400" height="15" align="center"><FONT size="2"><B>(millions)</B></FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Revenues</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 2,555 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 11,317 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (118)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 13,754 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Costs of revenues</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (1,220)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (6,618)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 117 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (7,721)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Selling, general and administrative</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (173)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (413)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (2,665)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 1 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (3,250)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Amortization of intangible assets</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (233)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (233)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Restructuring costs</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (136)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (136)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Loss on sale of assets</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (33)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (33)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Operating income (loss)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (173)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 922 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,632 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 2,381 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Equity in pretax income of consolidated subsidiaries</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 2,350 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 1,272 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 616 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (4,238)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> - </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Interest expense, net</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (386)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (213)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (8)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (607)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Other income (loss), net</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (37)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 2 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 73 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (58)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (20)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Income from continuing operations before income taxes</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,754 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,983 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 2,313 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (4,296)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,754 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Income tax provision</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (665)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (762)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (879)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 1,641 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (665)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Income from continuing operations</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,089 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,221 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,434 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (2,655)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,089 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Discontinued operations, net of tax</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 131 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 180 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 180 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (360)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 131 </FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2">Net income</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,220 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,401 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,614 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (3,015)</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,220 </FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2">Less Net income attributable to noncontrolling interests</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (40)</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (27)</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (56)</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 83 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (40)</FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2">Net income attributable to Time Warner Inc. shareholders</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 1,180 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 1,374 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 1,558 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> (2,932)</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 1,180 </FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>Consolidating Statement of Operations<BR/>For The Six Months Ended June 30, 2008<BR/>(Unaudited)<BR/><BR/><BR/></P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="255" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="15" align="center"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center"><FONT size="2"><B>Time</B></FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center"><FONT size="2"><B>Parent</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center"><FONT size="2"><B>Guarantor</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center"><FONT size="2"><B>Non-Guarantor</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center"><FONT size="2"><B>Warner</B></FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Company</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Subsidiaries</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Subsidiaries</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Eliminations</B></FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="75" height="15" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Consolidated</B></FONT></TD></TR><TR><TD width="255" height="1" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="1" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="1" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="65" height="1" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD colspan="14" width="400" height="15" align="center"><FONT size="2"><B>(recast, millions)</B></FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Revenues</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 2,465 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 12,658 </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (184)</FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 14,939 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Costs of revenues</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (1,242)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (7,450)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 183 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (8,509)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Selling, general and administrative</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (184)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (396)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (2,920)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 1 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (3,499)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Amortization of intangible assets</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (2)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (245)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (247)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Restructuring costs</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (7)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (141)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (148)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Asset impairments</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (18)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (18)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Operating income (loss)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (191)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 825 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,884 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 2,518 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Equity in pretax income of consolidated subsidiaries</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 2,459 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> 1,558 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 682 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (4,699)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> - </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Interest expense, net</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (505)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> (481)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> 308 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right"><FONT size="2"> (678)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Other income (loss), net</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 27 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (1)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (28)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (48)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (50)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Income from continuing operations before income taxes</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,790 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,901 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 2,846 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (4,747)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,790 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Income tax provision</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (660)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (688)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (1,082)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 1,770 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (660)</FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Income from continuing operations</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,130 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,213 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,764 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (2,977)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,130 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Discontinued operations, net of tax</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 535 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 534 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 528 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (1,062)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 535 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Net income</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,665 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,747 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 2,292 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (4,039)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,665 </FONT></TD></TR><TR><TD width="255" height="14" align="left"><FONT size="2">Less Net income attributable to noncontrolling interests</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (102)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (85)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (111)</FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 196 </FONT></TD><TD width="10" height="14" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="14" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="65" height="14" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (102)</FONT></TD></TR><TR><TD width="255" height="15" align="left"><FONT size="2">Net income attributable to Time Warner Inc. shareholders</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 1,563 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 1,662 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 2,181 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> (3,843)</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="65" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 1,563 </FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>Consolidating Statement of Cash Flows<BR/>For The Six Months Ended June 30, 2009<BR/>(Unaudited)<BR/></P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="275" height="13" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="13" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="13" align="center"><FONT size="2"><B>Parent</B></FONT></TD><TD width="10" height="13" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="13" align="center"><FONT size="2"><B>Guarantor</B></FONT></TD><TD width="10" height="13" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="13" align="center"><FONT size="2"><B>Non-Guarantor</B></FONT></TD><TD width="10" height="13" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="13" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="13" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="13" align="center"><FONT size="2"><B>Time Warner</B></FONT></TD></TR><TR><TD width="275" height="13" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="13" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="13" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Company</B></FONT></TD><TD width="10" height="13" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="13" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Subsidiaries</B></FONT></TD><TD width="10" height="13" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="13" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Subsidiaries</B></FONT></TD><TD width="10" height="13" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="13" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Eliminations</B></FONT></TD><TD width="10" height="13" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="13" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Consolidated</B></FONT></TD></TR><TR><TD width="275" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="275" height="13" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="13" align="left"><FONT size="2"> </FONT></TD><TD colspan="14" width="390" height="13" align="center"><FONT size="2"><B>(millions)</B></FONT></TD></TR><TR><TD width="275" height="7" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="7" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="7" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="7" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="7" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="7" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="7" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="7" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="7" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="7" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="7" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="7" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="7" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="7" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="7" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="7" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2"><B>OPERATIONS</B></FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Net income</FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2">$</FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 1,220 </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2">$</FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 1,401 </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2">$</FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 1,614 </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2">$</FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (3,015)</FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2">$</FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 1,220 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Less Discontinued operations, net of tax</FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 131 </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 180 </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 180 </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (360)</FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 131 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Net income from continuing operations</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,089 </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,221 </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,434 </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (2,655)</FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,089 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Adjustments for noncash and nonoperating items:</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">  Depreciation and amortization</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 19 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 62 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 627 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 708 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">  Amortization of film and television costs</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 957 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 2,285 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 3,242 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">  Gain (loss) on investments and other assets, net</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 7 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 1 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (10)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (2)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">  Excess (deficiency) of distributions over equity in pretax</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">     income of consolidated subsidiaries</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (2,350)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (1,272)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (616)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 4,238 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">  Equity in losses of investee companies, net of cash</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">    distributions</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (4)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 36 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 32 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">  Equity-based compensation</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 20 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 25 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 65 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 110 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">  Deferred income taxes </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (42)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (90)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (83)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 173 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (42)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Changes in operating assets and liabilities, net of acquisitions</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 159 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (154)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (1,255)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (1,759)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (3,009)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Intercompany</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 650 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (650)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Cash provided (used) by operations from continuing operations</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> (1,098)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 1,396 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 1,833 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> (3)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 2,128 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2"><B>INVESTING ACTIVITIES</B></FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Investments in available-for-sale securities</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (2)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (2)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Investments and acquisitions, net of cash acquired</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (56)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 15 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (312)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (353)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Capital expenditures and product development costs</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (17)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (43)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (240)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (300)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Investment proceeds from available-for-sale securities</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 2 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 47 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 49 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Proceeds from the Special Dividend paid by Time Warner</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">  Cable Inc. </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 9,253 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 9,253 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Advances to parent and consolidated subsidiaries</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 2,611 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 524 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (3,135)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Other investment proceeds</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 54 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 31 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 142 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 227 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Cash provided (used) by investing activities from continuing</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">  operations</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 11,845 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 527 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> (363)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> (3,135)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 8,874 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2"><B>FINANCING ACTIVITIES</B></FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Borrowings</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 3,493 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 27 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 3,520 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Debt repayments</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (7,983)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (11)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (7,994)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Proceeds from exercise of stock options</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 6 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 6 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Principal payments on capital leases</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (7)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (18)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (25)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Repurchases of common stock</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (170)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (170)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Dividends paid</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (453)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (453)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Other financing activities</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (58)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (58)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Change in due to/from parent and investment in segment</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (1,933)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (1,205)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 3,138 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Cash provided (used) by financing activities from continuing </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">  operations</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> (5,165)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> (1,940)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> (1,207)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 3,138 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> (5,174)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Cash provided (used) by continuing operations</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 5,582 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> (17)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 263 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 5,828 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Cash provided by operations from discontinued operations</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 532 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 532 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Cash used by investing activities from discontinued operations</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (622)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (622)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Cash used by financing activities from discontinued operations</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (5,224)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (5,224)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Effect of change in cash and equivalents of discontinued </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">  operations</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 5,262 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 5,262 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Cash used by discontinued operations</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> (52)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> (52)</FONT></TD></TR><TR><TD width="275" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="15" align="left"><FONT size="2"><B>INCREASE (DECREASE) IN CASH AND</B></FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="15" align="left"><FONT size="2"><B>  EQUIVALENTS</B></FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right"><FONT size="2"> 5,582 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right"><FONT size="2"> (17)</FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right"><FONT size="2"> 211 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right"><FONT size="2"> 5,776 </FONT></TD></TR><TR><TD width="275" height="15" align="left"><FONT size="2"><B>CASH AND EQUIVALENTS AT BEGINNING</B></FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="15" align="left"><FONT size="2"><B>  OF PERIOD</B></FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 469 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 103 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 661 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 1,233 </FONT></TD></TR><TR><TD width="275" height="15" align="left"><FONT size="2"><B>CASH AND EQUIVALENTS AT END OF PERIOD</B></FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 6,051 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 86 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 872 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 7,009 </FONT></TD></TR></TABLE></DIV><DIV><FONT size="2"><P>Consolidating Statement of Cash Flows<BR/>For The Six Months Ended June 30, 2008<BR/>(Unaudited)<BR/></P></FONT></DIV><DIV><TABLE style="border-collapse: collapse; margin-top: 20px;"><TR><TD width="275" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="12" align="center"><FONT size="2"><B>Parent</B></FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="12" align="center"><FONT size="2"><B>Guarantor</B></FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="12" align="center"><FONT size="2"><B>Non-Guarantor</B></FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="12" align="center"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="12" align="center"><FONT size="2"><B>Time Warner</B></FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="12" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Company</B></FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="12" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Subsidiaries</B></FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="12" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Subsidiaries</B></FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="12" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Eliminations</B></FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD colspan="2" width="70" height="12" align="center" style="border-bottom: 1px solid #000000;"><FONT size="2"><B>Consolidated</B></FONT></TD></TR><TR><TD width="275" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="10" height="5" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD><TD width="60" height="5" align="center" style="border-top: 1px solid #000000;"><FONT size="2"><B> </B></FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD colspan="14" width="390" height="12" align="center"><FONT size="2"><B>(recast, millions)</B></FONT></TD></TR><TR><TD width="275" height="6" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="6" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="6" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="6" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="6" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="6" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="6" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="6" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="6" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="6" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="6" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="6" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="6" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="6" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="6" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="6" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2"><B>OPERATIONS</B></FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Net income</FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2">$</FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 1,665 </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2">$</FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 1,747 </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2">$</FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 2,292 </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2">$</FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (4,039)</FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2">$</FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 1,665 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Less Discontinued operations, net of tax</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 535 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 534 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 528 </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (1,062)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 535 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Net income from continuing operations</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,130 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,213 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,764 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> (2,977)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;"><FONT size="2"> 1,130 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Adjustments for noncash and nonoperating items:</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">  Depreciation and amortization</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 21 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 57 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 663 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 741 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">  Amortization of film and television costs</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 955 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 2,004 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 2,959 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">  Asset impairments</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 18 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 18 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">  Gain (loss) on investments and other assets, net</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (23)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 1 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 26 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 4 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">  Excess (deficiency) of distributions over equity in pretax</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">     income of consolidated subsidiaries</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (2,459)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (1,558)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (682)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 4,699 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">  Equity in losses of investee companies, net of cash</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">    distributions</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 28 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 28 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">  Equity-based compensation</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 27 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 26 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 67 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 120 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">  Deferred income taxes</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (23)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (182)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (174)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 356 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (23)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Changes in operating assets and liabilities, net of acquisitions</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 1,303 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (729)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (1,062)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (2,078)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (2,566)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Intercompany</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 550 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (550)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Cash provided (used) by operations from continuing operations</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> (24)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 333 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 2,102 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 2,411 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2"><B>INVESTING ACTIVITIES</B></FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Investments in available-for-sale securities</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (6)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (8)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (14)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Investments and acquisitions, net of cash acquired</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (18)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (5)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (1,184)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (1,207)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Capital expenditures and product development costs</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (3)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (51)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (287)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (341)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Investment proceeds from available-for-sale securities</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 9 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 5 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 14 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Advances to parent and consolidated subsidiaries</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 486 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 1,703 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 893 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (3,082)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Other investment proceeds</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 20 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 34 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 162 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 216 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Cash provided (used) by investing activities from</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">  continuing operations</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 488 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 1,681 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> (419)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> (3,082)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> (1,332)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2"><B>FINANCING ACTIVITIES</B></FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Borrowings</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 19,375 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 22 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 19,397 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Debt repayments</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (19,483)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (166)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (22)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (19,671)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Proceeds from exercise of stock options</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 73 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 73 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Excess tax benefit on stock options</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 3 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 3 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Principal payments on capital leases</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (20)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (20)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Repurchases of common stock</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (332)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (332)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Dividends paid</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (450)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (450)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Other financing activities</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (16)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (16)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Change in due to/from parent and investment in segment</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (1,807)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (1,275)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 3,082 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Cash provided (used) by financing activities from continuing </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">  operations</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> (830)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> (1,973)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> (1,295)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 3,082 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> (1,016)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Cash provided (used) by continuing operations</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> (366)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 41 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 388 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> 63 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Cash provided by operations from discontinued operations</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 2,521 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 2,521 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Cash used by investing activities from discontinued operations</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (1,722)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (1,722)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Cash provided by financing activities from discontinued</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">  operations</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 2,807 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 2,807 </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Effect of change in cash and equivalents of discontinued </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">  operations</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (3,617)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> (3,617)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2">Cash used by discontinued operations</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> (11)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;"><FONT size="2"> (11)</FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left" style="border-top: 1px solid #000000;"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2"><B>INCREASE (DECREASE) IN CASH AND</B></FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="12" align="left"><FONT size="2"><B>  EQUIVALENTS</B></FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> (366)</FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 41 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 377 </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> - </FONT></TD><TD width="10" height="12" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="12" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="12" align="right"><FONT size="2"> 52 </FONT></TD></TR><TR><TD width="275" height="15" align="left"><FONT size="2"><B>CASH AND EQUIVALENTS AT BEGINNING</B></FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="left"><FONT size="2"> </FONT></TD></TR><TR><TD width="275" height="15" align="left"><FONT size="2"><B>  OF PERIOD</B></FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 586 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 53 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 646 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 1px solid #000000;"><FONT size="2"> </FONT></TD><TD width="60" height="15" align="right" style="border-bottom: 1px solid #000000;"><FONT size="2"> 1,285 </FONT></TD></TR><TR><TD width="275" height="15" align="left"><FONT size="2"><B>CASH AND EQUIVALENTS AT END OF PERIOD</B></FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 220 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 94 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 1,023 </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> - </FONT></TD><TD width="10" height="15" align="right"><FONT size="2"> </FONT></TD><TD width="10" height="15" align="left" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2">$</FONT></TD><TD width="60" height="15" align="right" style="border-top: 1px solid #000000;border-bottom: 3px double #000000;"><FONT size="2"> 1,337 </FONT></TD></TR></TABLE></DIV></BODY></HTML>
(recast)
For the six months ended June 30, 2008, amount reflects the impact of adopting the provisions of Emerging Issues Task Force (“EITF”) Issue No. 06-10, Accounting for Collateral Assignment Split-Dollar Life Insurance Arrangements (“EITF 06-10”), and EITF Issue No. 06-04, Accounting for Deferred Compensation and Postretirement Benefits Aspects of Endorsement Split-Dollar Life Insurance Arrangements (“EITF 06-04”).