×
You will be redirected back to your article in seconds

New regs boost AOL

Restructuring to continue

AOL Time Warner foresees new accounting rules boosting its annual profit by $5.9 billion while acknowledging that a restructuring initiated shortly after its merger will continue into the second half of the year.

According to a filing with the Securities & Exchange Commission, AOL TW took a $65 million restructuring charge in the second quarter. The bulk of revamp costs fell in the first quarter with a $965 million hit.

America Online and Time Warner merged in January. Shortly after, it announced 2,400 layoffs companywide and plans to shutter or sell the Warner Bros. retail stores — which employ about 3,800. Additional layoffs, up to 1,000, are likely to be announced soon at the AOL Internet unit in Dulles, Va.

Cut coin

Termination payments totaled about $95 million in the second quarter.

Meanwhile, the company’s bottom line will perk up from new accounting rules, which took effect in July. Regs say companies don’t have to write off goodwill, which is the difference between the price paid for an acquired asset and the liquidation value of that asset. Companies that are acquisitive usually amortize goodwill over a number of years and have seen those charges cut into their reported profits.

It’s a reason why some big earnings-focused players like Walt Disney and General Electric have shied away from hefty acquisitions; now they will be freer to pursue deals.

(Reuters contributed to this report.)

More Biz

  • STAR WARS-THEMED LAND MODEL AT D23

    John Williams to Compose New 'Star Wars' Music for Disney Parks Attractions

    AOL Time Warner foresees new accounting rules boosting its annual profit by $5.9 billion while acknowledging that a restructuring initiated shortly after its merger will continue into the second half of the year. According to a filing with the Securities & Exchange Commission, AOL TW took a $65 million restructuring charge in the second quarter. […]

  • Fox Sports NFL Sunday

    AT&T Sets Broad Carriage Renewal Pact With Fox Networks Group

    AOL Time Warner foresees new accounting rules boosting its annual profit by $5.9 billion while acknowledging that a restructuring initiated shortly after its merger will continue into the second half of the year. According to a filing with the Securities & Exchange Commission, AOL TW took a $65 million restructuring charge in the second quarter. […]

  • President Donald Trump talks with Gov.-elect

    Trump Says He'll Work With California to Aid Wildfire Relief

    AOL Time Warner foresees new accounting rules boosting its annual profit by $5.9 billion while acknowledging that a restructuring initiated shortly after its merger will continue into the second half of the year. According to a filing with the Securities & Exchange Commission, AOL TW took a $65 million restructuring charge in the second quarter. […]

  • church set Westworld Paramount Ranch Western

    Park Service Aims to Rebuild Western Town at Paramount Ranch in Two Years

    AOL Time Warner foresees new accounting rules boosting its annual profit by $5.9 billion while acknowledging that a restructuring initiated shortly after its merger will continue into the second half of the year. According to a filing with the Securities & Exchange Commission, AOL TW took a $65 million restructuring charge in the second quarter. […]

  • Jim Acosta Microphone Moment

    First They Came For Acosta. Why We Sued Trump Before He Acts Again (Opinion)

    AOL Time Warner foresees new accounting rules boosting its annual profit by $5.9 billion while acknowledging that a restructuring initiated shortly after its merger will continue into the second half of the year. According to a filing with the Securities & Exchange Commission, AOL TW took a $65 million restructuring charge in the second quarter. […]

  • Daniel GlassUJA-Federation of New York's Music

    Glassnote Music Strikes Strategic Partnership With Kobalt’s AWAL

    AOL Time Warner foresees new accounting rules boosting its annual profit by $5.9 billion while acknowledging that a restructuring initiated shortly after its merger will continue into the second half of the year. According to a filing with the Securities & Exchange Commission, AOL TW took a $65 million restructuring charge in the second quarter. […]

  • Movie Theater

    Studios Expected to Push for Early Home Release in 2019 (EXCLUSIVE)

    AOL Time Warner foresees new accounting rules boosting its annual profit by $5.9 billion while acknowledging that a restructuring initiated shortly after its merger will continue into the second half of the year. According to a filing with the Securities & Exchange Commission, AOL TW took a $65 million restructuring charge in the second quarter. […]

More From Our Brands

Access exclusive content