SEC Filings

WARNER MEDIA, LLC filed this Form S-4/A on 03/24/2000
Entire Document
   AOL Time Warner will periodically review the carrying value of the acquired
goodwill and other intangible assets for acquired businesses to determine
whether an impairment may exist. AOL Time Warner will consider relevant cash
flow information, including estimated future operating results, trends and
other available information, in assessing whether the carrying value of
goodwill and other intangible assets can be recovered. If it is determined that
the carrying value of goodwill and other intangible assets will not be
recovered from the undiscounted future cash flows of acquired businesses, the
carrying value of such goodwill and other intangible assets would be considered
impaired and reduced by a charge to operations in the amount of the impairment.
An impairment charge is measured as any deficiency in the amount of estimated
undiscounted cash flows of acquired businesses available to recover the
carrying value related to goodwill and other intangible assets.     
 Revenue Classification Changes     
   In December 1999, the Securities and Exchange Commission issued Staff
Accounting Bulletin No. 101, "Revenue Recognition in Financial Statements,"
which will be effective for Time Warner in the quarter ended March 31, 2000.
SAB 101 will not be effective for America Online until the quarter ended
September 30, 2000. SAB 101 clarifies certain existing accounting principles
for the timing of revenue recognition and its classification in financial
statements. While America Online's and Time Warner's existing revenue policies
regarding the timing of revenue recognition are consistent with the provisions
of SAB 101, the new rules are expected to result in some changes as to how the
filmed entertainment industry classifies its revenue, particularly relating to
distribution arrangements for third-party and co-financed joint venture
product. As a result, America Online and Time Warner are in the process of
evaluating the overall impact of SAB 101 on their respective consolidated
financial statements. It is expected that both annual revenues and costs of
Time Warner's filmed entertainment businesses will be reduced by an equal
amount of approximately $1.5 to $2 billion as a result of these classification
changes. However, other aspects of SAB 101 are not expected to have a
significant effect on AOL Time Warner's pro forma consolidated condensed
financial statements.