RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS

6 Months Ended

Jun. 30, 2011

RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS

RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS

NOTE 14—RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS

Restatement of Prior Period Consolidated Financial Statements

        The June 30, 2011 and December 31, 2010 consolidated balance sheets have been restated to correct the deferred income tax liability relating to a gain recorded in 2002 in connection with a series of transactions, which included the exchange of certain of the Company's media businesses for certain other assets, and the subsequent incorrect allocation of a portion of the deferred income taxes that were recorded in 2002 to a former subsidiary. These errors were identified during an analysis of the tax basis of certain businesses in connection with a 2011 review of the Company's organizational structure. Accordingly, the Company has restated the financial statements referenced above to correct these errors. The correction of these errors as of June 30, 2011 and December 31, 2010 increased non-current deferred income tax liabilities and reduced shareholders' equity by $380.9 million. Reclassifications of certain other deferred income tax balances as of June 30, 2011 and December 31, 2010 have also been recorded. Correcting these errors has no impact on the Company's consolidated statement of operations or consolidated statement of cash flows.

Consolidated Balance Sheet as of June 30, 2011:

	As originally reported		Effect of restatement			As restated
	(In thousands)
Other non-current assets	$	159,302	$	(79,439	)	$	79,863
Total Assets		3,509,301		(79,439	)		3,429,862
Deferred income taxes		—		301,567			301,567
Other long-term liabilities		19,710		(141	)		19,569
Additional paid-in capital		11,539,948		(380,865	)		11,159,083
Total shareholders' equity		2,471,635		(380,865	)		2,090,770
Total Liabilities and Shareholders' Equity		3,509,301		(79,439	)		3,429,862

Consolidated Balance Sheet as of December 31, 2010:

	As originally reported		Effect of restatement			As restated
	(In thousands)
Other non-current assets	$	192,383	$	(110,475	)	$	81,908
Total Assets		3,439,554		(110,475	)		3,329,079
Deferred income taxes		—		270,501			270,501
Other long-term liabilities		20,350		(111	)		20,239
Additional paid-in capital		11,428,749		(380,865	)		11,047,884
Total shareholders' equity		2,430,933		(380,865	)		2,050,068
Total Liabilities and Shareholders' Equity		3,439,554		(110,475	)		3,329,079