Additional Financial Information

6 Months Ended

Jun. 30, 2011

Additional Financial Information Disclosure [Abstract]

14. ADDITIONAL FINANCIAL INFORMATION

14.       ADDITIONAL FINANCIAL INFORMATION

Cash Flows

Additional financial information with respect to cash payments and receipts is as follows (millions):

	Six Months Ended June 30,
	2011		2010
Cash payments made for interest	$	(525)	$	(546)
Cash interest received		25		13
Cash interest payments, net	$	(500)	$	(533)
Cash payments made for income taxes	$	(611)	$	(687)
Income tax refunds received		40		50
TWC tax sharing payments, net(a)		-		(87)
Cash tax payments, net	$	(571)	$	(724)
___________

(a)Represents net amounts paidto TWC in accordance with tax sharing agreements with TWC.

Interest Expense, Net

Interest expense, net, consists of (millions):

	Three Months Ended				Six Months Ended
	6/30/11		6/30/10		6/30/11		6/30/10
Interest income	$	20	$	26	$	57	$	51
Interest expense		(334)		(326)		(645)		(647)
Total interest expense, net	$	(314)	$	(300)	$	(588)	$	(596)

Other Loss, Net

Otherloss, net, consists of (millions):

	Three Months Ended				Six Months Ended
	6/30/11		6/30/10		6/30/11		6/30/10
Investment gains (losses), net	$	(7)	$	3	$	(3)	$	-
Premiums paid and transaction costs incurred in
connection with debt redemptions		-		(14)		-		(69)
Income (loss) on equity method investees		8		(3)		(10)		(3)
Other		(3)		(3)		(3)		2
Total other loss, net	$	(2)	$	(17)	$	(16)	$	(70)

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consist of (millions):

	June 30, 2011		December 31, 2010
Accounts payable	$	772	$	846
Accrued expenses		1,731		2,087
Participations payable		2,177		2,480
Programming costs payable		761		737
Accrued compensation		716		1,051
Accrued interest		328		284
Accrued income taxes		140		248
Total accounts payable and accrued liabilities	$	6,625	$	7,733

Other Noncurrent Liabilities

Other noncurrent liabilities consist of (millions):

	June 30, 2011		December 31, 2010
Noncurrent tax and interest reserves	$	2,430	$	2,397
Participations payable		779		806
Programming costs payable		1,140		1,227
Noncurrent pension and post retirement liabilities		559		565
Deferred compensation		584		575
Other noncurrent liabilities		589		597
Total other noncurrent liabilities	$	6,081	$	6,167

Accounting for Collaborative Arrangements

The Company's collaborative arrangements primarily relate to arrangements entered into with third parties to jointly finance and distribute theatrical productions (“co-financing arrangements”) and the arrangement entered into with CBS Broadcasting, Inc. (“CBS”) and The National Collegiate Athletic Association (the “NCAA”) that provides Turner and CBS with exclusive television, Internet and wireless rights to the NCAA Division I Men's Basketball Championship events (the “NCAA Tournament”) in the United States and its territories and possessions from 2011 through 2024. 

During the first quarter of 2011, Turner and CBS began jointly producing and distributing the NCAA Tournament and related programming.  The events were televised on Turner's TNT, TBS and truTV networks and on the CBS network.  The aggregate programming rights fee of approximately $10.8 billion, which is being shared equally by Turner and CBS, is being paid by Turner to the NCAA over the 14-year term of the agreement, and Turner and CBS are equally sharing advertising and sponsorship revenues and production costs.  In the event, however, that the cash paid for the programming rights and production costs, in any given year, exceeds advertising and sponsorship revenues, CBS's share of such shortfall is limited to specified annual amounts (the “loss cap”), ranging from approximately $90 million to $30 million.  The amount incurred by the Company pursuant to the loss cap during the three and six months ended June 30, 2011 was not significant.

In accounting for this arrangement, the Company recorded advertising revenue for the advertisements aired on the Turner networks.  In addition, the Company amortized Turner's share of the rights fee based on the ratio of current period advertising revenue to its estimate of total advertising revenue over the term of the agreement.

For the Company's collaborative arrangements related to arrangements entered into with third parties to jointly finance and distribute theatrical productions, net participation costs of $111 million and $123 million were recorded in costs of revenues for the three months ended June 30, 2011 and 2010, respectively, and $198 million and $210 million were recorded in costs of revenues for the six months ended June 30, 2011 and 2010, respectively.