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(a)	Circulation level guaranteed to advertisers for regular issue U.S. magazines in 2014 or ABC reported first-half 2014 circulation for U.K. magazines, as applicable.

(b)	Number of physical issues, including regularly published special issues, delivered to subscribers in 2014.

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•

Consumer connection. We believe there are opportunities to serve our audiences across multi-media platforms, and with alternative approaches to content creation, including mobile, video, advertiser-sponsored content, social media and optimization for searches. For example, in December 2014, our U.S. multi-platform unique visitors increased by 32% year-over-year to 97.8 million (excluding our CNNMoney.com collaborative arrangement with a subsidiary of Time Warner, which was terminated in the second quarter of 2014). Our unique visitors exclusively from mobile devices increased 92.5% year-over-year to 51.4 million. Additionally, Time Inc.’s total worldwide social media audience as of December 2014 was 132 million, including 59 million Facebook likes and 38.9 million Twitter followers. During 2014, we grew our user-initiated video streams to 322 million, excluding CNNMoney.com. We were also awarded an Emmy for sports programming and an Edward R. Murrow award for news documentary.

•

Advertising sales effectiveness. Our long-standing relationships with advertisers are a key competitive advantage. We are expanding our corporate sales efforts in order to leverage the collective strength of Time Inc. This new approach moves us toward selling Time Inc. as a single premium media network. For example, our new Time Inc. Native Studio provides custom solutions to our advertising partners, and collaborates with our editorial function to integrate marketing across our brand portfolio.

•

Consumer pricing and targeting. We believe there are opportunities to more effectively optimize subscription offers, newsstand pricing and other consumer targeting and pay strategies across our organization. For example, we are pursuing data initiatives to personalize the audience experience by more effectively targeting consumers at all stages of the marketing life cycle. We are planning to leverage enhanced

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Cost transformation. In 2014, we incurred charges of $192 million associated with company-wide restructuring plans intended to streamline our organizational structure, to drive operational efficiencies and to create the appropriate infrastructure to support our long-range plan. Also, we announced the move of our corporate headquarters and other real estate consolidations, which are expected to drive meaningful ongoing cost savings. We anticipate additional headcount and efficiency measures in the future including global sourcing of personnel, streamlining the editorial process, centralized procurement, and further elimination of duplication across brands.

•

Technology platform. We see opportunities to streamline our technology infrastructure, and eliminate outdated and redundant systems. We have been shifting our engineering teams to focus on digital media, especially mobile and video. We are investing to ensure that we are aligned with the evolving needs of consumers and advertisers, that we are providing product development agility to our creative teams and that our technology supports innovation and accountability.

•	Leveraging audience scale across platforms. We intend to continue to invest in digital media including mobile and video as well as extensions of our brands across social media. For example, in 2015, we will bring together our fashion and beauty assets into a single content, services and commerce platform with InStyle as the cornerstone brand.

•

New consumer products and services. We believe there are opportunities to further extend our brands and marketing scale beyond our existing footprint of print and digital magazines, websites, books and bookazines and clubs. This could include the direct sale or licensing of consumer products and services. For example, Real Simple began selling home products through retailer Bed Bath and Beyond in 2010 and is now among the retailer's top selling private label brands.

•

Data collection and targeting. We believe there are opportunities to leverage our extensive data and consumer insights and to enhance data services to marketers and advertisers. In 2015, we will be kicking off two major initiatives to move Time Inc. toward becoming a more data-driven organization. We will be investing in customer relationship management technologies and data science teams, and testing metered paid-content technologies across many of our titles.

•

Live events and conferences. We believe there are opportunities to continue to expand our live events and tent-pole franchises. For example, in 2014 the Essence Festival celebrated its 20th year and hosted over 550,000 attendees, making it one of the largest live consumer events in the United States. Additionally, Fortune’s 2014 Most Powerful Women Conference gathered 400 of the world’s most prominent women leaders who paid to attend this invitation-only event. The franchise is expanding with international events, and a new digital content channel on Fortune.com.

•	Business-to-business (B2B) services. We believe there are opportunities to expand offerings of our ancillary services that offer end-to-end fulfillment and direct marketing expertise.

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•	trademarks in product and service names and logos, including our key brands and trade names, such as “People,” “Sports Illustrated,” “InStyle,” “Time,” “Fortune” and "Travel + Leisure;"

•	copyrights in magazines, software, books and mobile apps, as well as in text and photos created or commissioned by us as “works made for hire”;

•	domain names;

•	licenses of intellectual property rights, including rights to many of the photos appearing in our magazines and other third-party content appearing in our products; and

•	patents for inventions related to our products, business methods and/or services (although none of our patents are material to our business).

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•	a reduction in the number of suppliers due to restructurings, bankruptcies and consolidations;

•	declining paper supply due to paper mill closures; and

•	other factors that generally adversely impact supplier profitability, including increases in operating expenses caused by rising raw material and energy costs.

•	increase our vulnerability to general adverse economic and industry conditions;

•	limit our ability to obtain additional financing to fund future working capital, capital expenditures and other general corporate requirements or to carry out other aspects of our business;

•	increase our cost of borrowing;

•	require us to dedicate a substantial portion of our cash flow from operations to payments on indebtedness, thereby reducing the availability of such cash flow to fund working capital, capital expenditures and other general corporate requirements or to carry out other aspects of our business;

•	limit our ability to make material acquisitions or take advantage of business opportunities that may arise;

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•	expose us to fluctuations in interest rates, to the extent our borrowings bear variable rates of interest;

•	limit our flexibility in planning for, or reacting to, changes in our business and industry; and

•	place us at a potential disadvantage compared to our competitors that have less debt.

•	incur or guarantee additional indebtedness or sell disqualified or preferred stock;

•	pay dividends on, make distributions in respect of, repurchase or redeem, capital stock;

•	make investments or acquisitions;

•	sell, transfer or otherwise dispose of assets out of the ordinary course of business, including restrictions on the use of proceeds of such sales;

•	create liens;

•	enter into sale/leaseback transactions;

•	enter into agreements restricting the ability to pay dividends or make other intercompany transfers;

•	consolidate, merge, sell or otherwise dispose of all or substantially all of our or our subsidiaries’ assets;

•	enter into transactions with affiliates;

•	prepay, repurchase or redeem certain kinds of indebtedness;

•	issue or sell stock of our subsidiaries; and

•	significantly change the nature of our business.

•	limited in how we conduct our business and pursue our strategy;

•	unable to raise additional debt or equity financing to operate during general economic or business downturns; or

•	unable to compete effectively or to take advantage of new business opportunities.

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•	issues related to managing international operations;

•	potentially adverse changes in tax laws and regulations;

•	lack of sufficient protection for intellectual property in some countries;

•	government policies that restrict the digital flow of information;

•	complying with international laws and regulations, including those governing the collection, use, retention, sharing and security of consumer data;

•	currency exchange and export controls;

•	local labor laws and regulations;

•	political or social instability; and

•	limitations on our ability to efficiently repatriate cash from our foreign operations.

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•	the difficulty in integrating newly acquired businesses and operations in an efficient and effective manner;

•	the challenge in achieving strategic objectives, cost savings and other anticipated benefits;

•	the potential loss of key employees of the acquired businesses;

•	the potential diversion of senior management’s attention from our operations;

•	the risks associated with integrating financial reporting and internal control systems;

•	the difficulty in expanding information technology systems and other business processes to incorporate the acquired businesses;

•	potential future impairments of goodwill associated with the acquired businesses; and

•	in some cases, the potential for increased regulation.

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•

Prior to the Spin-Off, we operated as part of Time Warner’s broader corporate organization and Time Warner performed various corporate functions for us, including information technology, tax administration, treasury activities, accounting, benefits administration, procurement, legal and ethics and compliance program administration. Our historical financial information for periods prior to the Spin-Off reflects allocations of corporate expenses from Time Warner for these and similar functions. These allocations may not reflect the costs we would have incurred or will incur as an independent publicly-traded company.

•	We entered into agreements with Time Warner that either did not exist prior to the Spin-Off or that have different terms than terms of arrangements or agreements that existed prior to the Spin-Off.

•

Our historical financial information for periods prior to the Spin-Off does not reflect changes that we are experiencing as a result of our separation from Time Warner, including changes in the financing, operations, cost structure and personnel needs of our business. As part of Time Warner, we enjoyed certain benefits from Time Warner’s operating diversity, size, purchasing power, borrowing leverage and available capital for investments, and we lost these benefits after the Spin-Off. As an independent entity, we may be unable to purchase goods, services and technologies, such as insurance and health care benefits and computer software licenses, or access capital markets on terms as favorable to us as those we obtained as part of Time Warner prior to the Spin-Off. In addition, subject to the discretion of our Board and other factors, we have made and expect to continue to make quarterly dividend payments to our stockholders.

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•	actual or anticipated fluctuations in our operating results due to factors related to our business;

•	success or failure of our business strategies;

•	our quarterly or annual earnings, or those of other companies in our industry;

•	our ability to obtain financing as needed;

•	announcements by us or our competitors of significant acquisitions or dispositions;

•	changes in accounting standards, policies, guidance, interpretations or principles;

•	the failure of securities analysts to continue to cover our common stock;

•	changes in earnings estimates by securities analysts or our ability to meet those estimates;

•	the operating and stock price performance of other comparable companies;

•	investor perception of our company and the magazine publishing industry;

•	overall market fluctuations;

•	results from any material litigation or government investigation;

•	changes in laws and regulations (including tax laws and regulations) affecting our business;

•	changes in capital gains taxes and taxes on dividends affecting stockholders; and

•	general economic conditions and other external factors.

•	permit us to issue blank check preferred stock;

•	do not permit our stockholders to act by written consent and require that stockholder action must take place at an annual or special meeting of our stockholders;

•	provide that only our Chief Executive Officer, Board of Directors or any record holders of shares representing at least 25% of the combined voting power of the outstanding shares of all classes and series of our capital stock entitled generally to vote in the election of directors, voting as a single class, are entitled to call a special meeting of our stockholders; and

•	limit the ability of certain stockholders to enter into business combination transactions with the Company without the approval of our Board of Directors.

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(a)	Approximately 550,000 square feet are subleased to unaffiliated third-party tenants.

(b)	Approximately 220,000 square feet are leased to unaffiliated third-party tenants.

(c)	Approximately 37,000 square feet are subleased to unaffiliated third-party tenants.

(d)	We have two five-year renewal options under this lease that are exercisable in June 2019 and 2024, respectively.

(e)	We have four five-year renewal options under this lease that are exercisable in December 2029, 2034, 2039, and 2044, respectively.

(f)	This property is currently being held for sale.

(g)	We have an option to renew this lease for an additional five years. Such renewal option must be exercised by September 2015.

(h)	Approximately 30,000 square feet is vacant and on the market for sublet. We have an option to renew this lease for an additional five years. Such renewal option must be exercised by June 2019.

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(a)	On the Distribution Date, approximately 108.94 million shares of Time Inc. stock were distributed to Time Warner stockholders of record. This initial share amount is being utilized for the calculation of both basic and diluted earnings per share for all years presented that ended prior to the Distribution Date as Time Inc. common stock was privately held by Time Warner Inc. prior to June 6, 2014.

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(a)	The following documents are filed as part of this annual report on Form 10-K:

(1)	The financial statements as indicated in the index set forth on page F-2

(2)	Financial Statement Schedule:

(3)	Exhibits

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•	Investing in digital media, including mobile, video, contributor networks and extensions of our brands across social media;

•	Expanding corporate sales efforts to increase cross-brand advertising sales;

•	Evaluating alternative approaches to pricing models, channel optimization and subscriber targeting;

•	Extending our brands beyond magazines, including through direct sale or licensing agreements related to consumer products and services;

•	Using our extensive database and consumer insights to extend data services to marketers;

•	Expanding live events and conferences such as the Essence Festival and the Fortune Global Forum; and

•	Streamlining our organizational structure to drive operational efficiencies, including through global sourcing of staff.

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•	Amortization Expense: We recorded amortization expense of $78 million, $42 million and $36 million for the years ended December 31, 2014, 2013 and 2012, respectively. The increase in amortization expense in 2014 as compared to 2013 primarily related to the classification of certain previously defined indefinite-lived intangibles to finite lives of 17 years effective January 1, 2014.

•	Headquarters Relocation: As a result of the planned relocation of our corporate headquarters, we have accelerated the depreciation on our current tenant improvements at our New York City headquarters at 1271 Avenue of the Americas. This accelerated depreciation charge impacted the year ended December 31, 2014 by $16 million and is expected to impact our 2015 results of operations by $21 million.

•	Corporate Transactions: We acquired Cozi Inc., a provider of mobile and digital family organizing tools, during the second quarter of 2014; we sold our Mexico-based GEX operations in the third quarter of 2014; and our CNNMoney.com collaborative arrangement with a subsidiary of Time Warner terminated in the second quarter of

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NM	- Not Meaningful

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(a)	Costs of revenues and Selling, general and administrative expenses exclude depreciation.

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•	a Term Loan in an initial principal amount of $700 million with a seven-year maturity; and

•	a $500 million Revolving Credit Facility with a five-year maturity, of which up to $100 million is available for the issuance of letters of credit.

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(a)	We have long-term, noncancelable operating lease commitments for office space, studio facilities and equipment. Future minimum operating lease payments have been reduced by future minimum sublease income of $31 million in 2015, $28 million in 2016 and $27 million in 2017. Rent expense was $91 million, $82 million and $79 million for the years ended December 31, 2014, 2013 and 2012, respectively.

(b)

During the fourth quarter of 2014, we sold our property in Menlo Park, California for approximately $78 million and agreed to lease back some of the office space from the buyer through 2015. In connection with these transactions, we recognized a pretax gain of $76 million during the fourth quarter of 2014. Additionally, during the fourth quarter of 2014, we sold our properties in Birmingham, Alabama for approximately $58 million and agreed to lease back some of the office space from the buyer through 2015 in two buildings and through 2030 in the third building. In connection with these transactions, we recognized a pretax gain of $9 million. The tax impact of the aforementioned transactions was $3 million, as the capital gain portion of these transactions was offset by capital loss generated from the sale of GEX for federal tax purposes. Lease obligations in connection with these new operating leases are reflected within the table above.

(c)	Includes future payments of principal and interest due on our Term Loan and Senior Notes. Interest on variable rate debt is calculated based on the prevailing interest rate as of December 31, 2014.

(d)

Accrued benefit liability for pension and other postretirement benefit plans is affected by, among other items, statutory funding levels, changes in plan demographics and assumptions and investment returns on plan assets. A portion of payments under our company-sponsored qualified pension plans will be made out of existing assets of the pension plans and not our cash. For a summary of certain developments that could materially increase our funding obligations under our U.K. pension plans, see Item 1A, "Risk Factors – Adverse changes in the equity markets or interest rates, changes in actuarial assumptions and legislative or other regulatory actions could substantially increase our U.K. pension costs and adversely affect our ability to utilize earnings and proceeds of asset sales from our U.K. operations to invest in our business."

(e)

The contractual obligations table above does not include any liabilities for uncertain income tax positions due to the fact that we are unable to reasonably predict the ultimate amount or timing of settlement of our liabilities for uncertain income tax positions. At December 31, 2014, the liability for uncertain tax positions was $37 million, excluding the related accrued interest liability of $9 million and deferred tax assets of $5 million. See Note 10, "Income Taxes," to the accompanying Financial Statements. Additionally, the contractual obligations table above does not include any liabilities on our Revolving Credit Facility except for customary unused fees. The Revolving Credit Facility was undrawn as of December 31, 2014, except for the $1 million in letters of credit issued thereunder, and we cannot reasonably predict any potential draw downs on the Revolving Credit Facility.

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•	Gross versus Net Revenue Recognition;

•	Sales Returns;

•	Impairment of Goodwill and Intangible Assets; and

•	Income Taxes.

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(a)	We acquired a 20% interest in 120 Sports during the second quarter of 2014. This investment yielded $7 million of equity losses for the year ended December 31, 2014.

(b)	Our partnership with HFE in Mexico terminated in conjunction with the sale of GEX in August 2014.

(c)	Our other equity-method investments primarily consist of joint ventures in our international operations. Equity gains (losses) and foreign currency movements on these investments were not significant for the years ended December 31, 2014, 2013 and 2012. Additionally, in the fourth quarter of 2014 we acquired an interest in an e-commerce fashion marketplace start-up company.

(d)

Available-for-sale securities are recorded at fair value in the Balance Sheets, and the realized gains and losses are included as a component of Other expense, net in the Statements of Operations. Gains and losses reclassified from Accumulated other comprehensive loss, net to Other expense, net in the Statements of Operations are determined based on the specific identification method. Our available-for-sale securities primarily consisted of equity securities and were liquidated in the fourth quarter of 2014 with cash proceeds of approximately $1 million, resulting in a gain of less than $1 million.

(e)	Other investments recorded at fair value included investments in a Rabbi Trust as part of a deferred compensation plan. Assets in the trust consist of debt and equity securities and offset the liability of the deferred compensation plan. Gains and losses on such trading securities as of December 31, 2014 were insignificant.

(f)	We use available qualitative and quantitative information to evaluate all cost-method investments for impairment at least quarterly.

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(a)	Consisted of investments related to deferred compensation.

(b)

In connection with the Tax Matters Agreement with Time Warner, we are required to indemnify Time Warner for international equity awards in connection with our employees' exercises of stock compensation awards granted by Time Warner. The fair value of this obligation, as included within Accounts payable and accrued expenses and Other noncurrent liabilities on the accompanying Balance Sheets as of December 31, 2014, was estimated at $5 million. This fair value was derived using a Black-Scholes model and is considered a Level 3 measurement. Adjustments to fair value of this obligation are included as a component of Other expense, net in the Statements of Operations.

(c)

Our other liabilities included within Other noncurrent liabilities on the accompanying Balance Sheets as of December 31, 2014 consist primarily of a put option liability related to an equity method investment, the fair value of which was derived using a lattice model which is considered a Level 3 measurement. Adjustments to fair value of this obligation are included as a component of Other expense, net in the Statements of Operations.

(d)	We primarily apply the market approach for valuing recurring fair value measurements. During the years ended December 31, 2014 and 2013, there were no transfers of securities between levels.

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N/A	- Not applicable.

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N/A	- Not applicable.

(a)

During the fourth quarter of 2014, we sold our property in Menlo Park, California for approximately $78 million and agreed to lease back office space from the buyer through 2015. In connection with these transactions, we recognized a pretax gain of $76 million during the fourth quarter of 2014. Additionally, during the fourth quarter of 2014, we sold our properties in Birmingham, Alabama for approximately $58 million and agreed to lease back office space from the buyer through 2015 in two buildings and through 2030 in the third building. In connection with these transactions, we recognized a pretax gain of $9 million during the fourth quarter of 2014. The tax impact of the aforementioned transactions was $3 million, as the capital gain portion of the transactions was offset by capital loss generated from the sale of GEX for federal tax purposes.

(b)

As a result of the planned relocation of our corporate headquarters (See Note 16, "Commitment and Contingencies"), we have accelerated the depreciation on our current tenant improvements at our New York City headquarters at 1271 Avenue of the Americas. This accelerated depreciation charge impacted our results of operations for the year ended December 31, 2014 by approximately $16 million and is expected to impact our 2015 results of operations by approximately $21 million.

(c)	Accumulated depreciation and amortization included accumulated amortization of capital software of approximately $309 million and $322 million as of December 31, 2014 and 2013, respectively.

(d)	Amounts in 2014 primarily relate to capitalized software costs and leasehold improvements in connection with our new headquarters lease. Amounts in 2013 primarily relate to capitalized software costs.

(e)

During the first quarter of 2014, we classified one of our buildings as an asset held for sale within Prepaid expenses and other current assets on the accompanying Balance Sheets. As a result, we recorded a noncash impairment charge of $20 million to write down the value of the building to its fair value less costs to sell. We incurred additional fixed asset impairment charges of approximately $6 million during 2014, primarily as a result of our exit from other leased properties.

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(c)	An allocated Goodwill impairment charge of $26 million was recognized during the second quarter of 2014 in connection with the impending sale of our Mexico-based GEX operations.

(a)	Effective January 1, 2014, certain tradenames with a carrying value totaling approximately $586 million that were previously assigned indefinite lives have been assigned finite lives of 17 years. We recorded amortization expense of approximately $34 million (approximately $21 million net of tax) on these tradenames during the year ended December 31, 2014.

(b)	During the year ended December 31, 2014, tradenames decreased approximately $14 million in connection with the sale of our Mexico-based GEX operations and $4 million from foreign currency movements.

(c)	Customer lists and other intangible assets decreased approximately $9 million in connection with the sale of our Mexico-based GEX operations. This decrease was partially offset by an increase of $5 million from other intangible assets acquired in connection with the Cozi Inc. acquisition during the second quarter of 2014.

(d)

Accumulated amortization on tradenames was $397 million and $336 million as of December 31, 2014 and 2013, respectively. Accumulated amortization on customer lists and other intangible assets was $552 million as of both December 31, 2014 and 2013, respectively. The increase in accumulated amortization on intangible assets for the year ended December 31, 2014 was primarily due to amortization expense of approximately $78 million, partially offset by the write-off of intangible assets in connection with the sale of our Mexico-based GEX operations and foreign currency movements.

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(a)	Includes foreign withholding taxes of $1 million in each of the years ended December 31, 2014, 2013 and 2012.

(b)	Excludes excess tax benefits from equity awards allocated directly to contributed capital which were insignificant in 2014, $34 million in 2013 and $16 million in 2012.

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(a)	Foreign currency reclassification adjustments were the result of the sale of our Mexico-based GEX operations in August 2014 and the dissolution of our Australian operations. Pretax (gains) losses are included in Selling, general and administrative expenses.

(b)	Included in Selling, general and administrative expenses.

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(a)	In October 2014, our Board of Directors declared a cash dividend of $0.19 per common share to stockholders of record. These dividends were paid in December 2014 and approximated $21 million. RSUs granted as part of our Replacement Awards and Conversion Awards are entitled to participate in allocated cash earnings.

(b)

On the Distribution Date, approximately 108.94 million shares of our common stock were distributed to Time Warner stockholders as of the Record Date. This share amount is being utilized for the pro forma calculation of both basic and diluted net income (loss) per common share for the periods prior to the Distribution Date as no Time Inc. equity awards were outstanding prior to June 6, 2014 and Time Inc. was a wholly-owned subsidiary of Time Warner prior to that date.

N/A	- Not Applicable.

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N/A	- Not Applicable.

(a)	The 2013 balance consists of Time Warner stock options awarded to our Chief Executive Officer and Executive Vice President and Chief Financial Officer which were converted to approximately 727,000 Time Inc. stock options at the time of the Spin-Off.

(b)	The 2013 balance consists of Time Warner RSUs awarded to our Chief Executive Officer and Executive Vice President and Chief Financial Officer which were converted to approximately 190,000 Time Inc. RSUs at the time of the Spin-Off.

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N/A	- Not Applicable.

(a)	The 2013 amounts relate to stock options awarded to our Chief Executive Officer and Executive Vice President and Chief Financial Officer which were converted to Time Inc. stock options at the time of the Spin-Off.

(a)	Represents Time Warner stock options awarded to our Chief Executive Officer and Executive Vice President and Chief Financial Officer which were converted to Time Inc. stock options at the time of the Spin-Off.

N/A	- Not Applicable.

(a)	The 2013 amount represents Time Warner RSUs granted to our Chief Executive Officer and Executive Vice President and Chief Financial Officer which were converted to Time Inc. RSUs at the time of the Spin-Off.

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(a)	Represent Time Warner RSUs granted to our Chief Executive Officer and Executive Vice President and Chief Financial Officer which were converted to Time Inc. RSUs at the time of the Spin-Off.

(b)	The weighted average contractual life of unvested RSUs at December 31, 2014 was 1 year.

N/A	- Not Applicable.

(a)	Amounts prior to the Spin-Off represent Time Warner awards granted to our employees.

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N/A	- Not Applicable.

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N/A	- Not Applicable.

N/A	- Not Applicable.

N/A	- Not Applicable.

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N/A	- Not Applicable.

N/A	- Not Applicable.

(a)	The amount expected to be recognized in net periodic benefit cost (benefit) in 2015 is approximately $15 million benefit.

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N/A	- Not Applicable.

N/A	- Not Applicable.

(a)	The rate of increase in compensation level assumption is not applicable due to the freeze of the pension plan.

(b)	Expected long-term return on plan assets is not applicable on unfunded pension plans.

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(a)	We have long-term, noncancelable operating lease commitments for office space, studio facilities and equipment. Future minimum operating lease payments have been reduced by future minimum sublease income of $31 million in 2015, $28 million in 2016 and $27 million in 2017. Rent expense was $91 million, $82 million and $79 million for the years ended December 31, 2014, 2013 and 2012, respectively.

(b)

During the fourth quarter of 2014, we sold our properties in Birmingham, Alabama for approximately $58 million and agreed to lease back office space from the buyer through 2015 in two buildings and through 2030 in the third building. In connection with these transactions, we recognized a pretax gain of $9 million during the fourth quarter of 2014. Additionally, during the fourth quarter of 2014, we sold our property in Menlo Park, California for approximately $78 million and agreed to lease back office space from the buyer through 2015. In connection with these transactions, we recognized a pretax gain of $76 million during the fourth quarter of 2014. The net tax impact of the aforementioned transactions was $3 million, as the capital gain portion of the transactions was offset by capital loss generated from the sale of GEX for federal tax purposes. Lease obligations in connection with these new operating leases are reflected within the table above.

(c)	Includes future payments of principal and interest due on our Term Loan and Senior Notes. Interest on variable rate debt is calculated based on the prevailing interest rate as of December 31, 2014.

(d)	Accrued benefit liability for pension and other postretirement benefit plans is affected by, among other items, statutory funding levels, changes in plan demographics and assumptions and investment returns on plan assets. A portion of the payments under our Company-sponsored qualified pension plans will be made out of existing assets of the pension plans and not Company cash.

(e)

The contractual obligations table above does not include any liabilities for uncertain income tax positions due to the fact that we are unable to reasonably predict the ultimate amount or timing of settlement of our liabilities for uncertain income tax positions. At December 31, 2014, the liability for uncertain tax positions was $37 million, excluding the related accrued interest liability of $9 million and deferred tax assets of $5 million. See Note 10, "Income Taxes." Additionally, the contractual obligations table above does not include any liabilities under our Revolving Credit Facility except for customary unused fees. The Revolving Credit Facility was undrawn as of December 31, 2014, except for the $1 million in letters of credit issued thereunder and we cannot reasonably predict any potential draw downs on the Revolving Credit Facility.

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(a)

Our Senior Notes bear interest at the rate of 5.75% per annum payable on April 15 and October 15 of each year. We made an interest payment of approximately $19 million on our Senior Notes on October 15, 2014. The Senior Notes mature in April 2022. Our Term Loan bears interest at a variable rate payable quarterly. We made an interest payment on our Term Loan of approximately $15 million for the year ended December 31, 2014. Our Term Loan matures in April 2021. Commitment fees paid on our Revolving Credit Facility for the year ended December 31, 2014 were not significant. See Note 9, "Debt."

(b)	Liabilities to Time Warner relate to tax and stock compensation expense recharges in connection with the Tax Matters Agreement and Employee Matters Agreement. See Note 17, "Relationship Between Time Inc. and Time Warner After the Spin-Off."

(c)	Other income consists primarily of reimbursements for Restructuring and severance costs from American Express Company in connection with the acquisition of AMG in the fourth quarter of 2013.

(a)	Reflects total assets less current assets, Goodwill, Intangible assets, investments and non-current deferred tax assets.

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(a)	Revenues are attributed to countries based on location of customer.

(a)

The Spin-Off was completed on June 6, 2014 when approximately 108.94 million common shares of Time Inc. were distributed to Time Warner stockholders. This share amount is being utilized for the pro forma calculation of both basic and diluted net income (loss) per common share for all periods presented prior to the Distribution Date as no Time Inc. equity-based awards were outstanding prior to June 6, 2014 and Time Inc. was a wholly-owned subsidiary of Time Warner prior to that date.

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