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Common Shares Outstanding and Anti-Dilutive Common Shares

Year Ended December 31,

(in millions)

Weighted average common shares outstanding, basic

CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions	12 Months Ended
Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007
CONSOLIDATED STATEMENTS OF EARNINGS
Revenues	$ 13,619,000,000	$ 14,625,000,000	$ 13,423,000,000
Expenses:
Operating	7,587,000,000	8,787,000,000	7,431,000,000
Selling, general and administrative	2,737,000,000	2,910,000,000	2,663,000,000
Depreciation and amortization	391,000,000	405,000,000	393,000,000
Total expenses	10,715,000,000	12,102,000,000	10,487,000,000
Operating income	2,904,000,000	2,523,000,000	2,936,000,000
Interest expense, net	(430,000,000)	(482,000,000)	(464,000,000)
Gain on sale of equity investment	0	0	151,000,000
Equity in net losses of investee companies	(77,000,000)	(74,000,000)	0
Loss on extinguishment of debt	(84,000,000)	0	0
Other items, net	(37,000,000)	(112,000,000)	(43,000,000)
Earnings from continuing operations before provision for income taxes	2,276,000,000	1,855,000,000	2,580,000,000
Provision for income taxes	(708,000,000)	(605,000,000)	(929,000,000)
Net earnings from continuing operations	1,568,000,000	1,250,000,000	1,651,000,000
Discontinued operations, net of tax	20,000,000	18,000,000	208,000,000
Net earnings (Viacom and noncontrolling interests)	1,588,000,000	1,268,000,000	1,859,000,000
Net losses (earnings) attributable to noncontrolling interests	23,000,000	(17,000,000)	(21,000,000)
Net earnings attributable to Viacom	1,611,000,000	1,251,000,000	1,838,000,000
Amounts attributable to Viacom:
Net earnings from continuing operations	1,591,000,000	1,233,000,000	1,630,000,000
Discontinued operations, net of tax	20,000,000	18,000,000	208,000,000
Net earnings attributable to Viacom	1,611,000,000	1,251,000,000	1,838,000,000
Basic earnings per share attributable to Viacom:
Continuing operations	2.62	1.97	2.42
Discontinued operations	0.03	0.03	0.31
Net earnings per share of Viacom	2.65	2	2.73
Diluted earnings per share attributable to Viacom:
Continuing operations	2.62	1.97	2.41
Discontinued operations	0.03	0.03	0.31
Net earnings per share of Viacom	$ 2.65	$ 2	$ 2.72
Weighted average number of common shares outstanding:
Weighted average number of common shares outstanding, basic	607.1	624.7	674.1
Weighted average number of common shares outstanding, diluted	608.3	625.4	675.6

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2009

Notes To Financial Statements Abstract

Summary of Significant Accounting Policies

VIACOM INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation
The consolidated financial statements of the Company include the accounts of Viacom Inc., its subsidiaries and variable interest entities (VIEs) where the Company is considered the primary beneficiary, after elimination of intercompany accounts and transactions. Disclosure regarding the Company’s participation in VIEs is included in Note 3. Investments in business entities in which the Company lacks control but does have the ability to exercise significant influence over operating and financial policies are accounted for using the equity method. The Company’s proportionate share of net income or loss of the enti ty is recorded in Equity in net losses of investee companies in the Consolidated Statements of Earnings. Related party transactions between the Company and CBS Corporation, National Amusements Inc. (“NAI”) and Midway Games, Inc. (“Midway”) have not been eliminated.
Revenue Recognition
The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when it has persuasive evidence of an arrangement, delivery has occurred, the sales price is fixed and determinable, and collectibility is reasonably assured. Determining whether some or all of these criteria have been met involves assumptions and judgments, including the evaluation of multiple element arrangements, that can have a significant impact on the timing and amount of revenue the Company reports.
Advertising Revenues
Advertising revenue earned by the Media Networks segment is recognized, net of ag ency commissions, when the advertisement is aired and the contracted audience rating is met. Should the advertisement fail to meet the contracted audience rating, the Company establishes a liability referred to as an audience deficiency unit liability. The liability is typically relieved when the audience rating is met through the provision of additional air time for the advertiser.
Feature Film Revenues
Revenue is recognized from theatrical distribution of motion pictures upon exhibition. For home entertainment product revenue, including sales to wholesalers and retailers, revenue is recognized upon the later of delivery or the date that those products are made widely available for sale by retailers. Revenue from the licensing of feature films and original programming for exhibition in television markets is recognized upon availability for airing by the licensee. Revenue for video-on-demand and similar pay-per-view arrangements are recognized as the feature films are exhibited based on end-customer purchases as reported by the distributor.

Affiliate Fees
Affiliate fees are recognized by the Media Networks segment as the service is provided to cable television operators, direct-to-home satellite operators and other distributors.
Ancillary Revenues
Video game product revenues are evaluated under software revenue recognition guidance. Where a video game provides limited online features at no additional cost to the consumer, the Company generally considers such features to be incidental to the overall product offering and an inconsequential deliverable. Accordingly, the Company does not defer any revenue related to products containing these limited online features. In instances where online features or additional functionality is considered a substantive deliverable in addition to the software product, the Company recognizes revenue ratably over an estimated service period. This evaluation is performed for each software product that is released.
Licensing associated with consumer products is typically recognized utilizing contractual royalty rates applied to sales amounts reported by licensees. Revenue for online transactions, such as electronic downloads of films, programming or product add-ons is recognized when the fee is paid by the online customer to purchase the content, the Company is notified by the online retailer that the product has been downloaded and all other revenue recognition criteria are met. Ancillary online subscription revenues are generally recognized on a straight-line basis over the service period.
Gross versus Net Revenue
The Company earns and recognizes revenues as a distributor on behalf of third parties. In such cases, determining whether revenue should be reported on a gross or net basis is based on management’s assessment of whether the Company acts as the principal or agent in the transaction. To the extent the Company acts as the principal in a transaction, revenues are reported on a gross basis. Determining whether the Company acts as principal or agent in a transaction involves judgment and is based on an evaluation of whether the Company has the substantial risks and rewards of ownership under the terms of an arrangement.
The Company’s most significant arrangements are in connection with certain exclusive distribution rights to and home video fulfillment services for the animated feature films produced by DreamWorks Animation SKG, Inc. and the distribution agreements with MVL Productions LLC (“Marvel”), DW Funding LLC (“DW Funding”) and CBS Corporation. Under the terms of these agreements, the Company is generally responsible for all out-of-pocket costs, primarily comprised of distribution and marketing costs. For the provision of distribution services, the Company generally retains a fee based upon a percentage of gross receipts and recovers expended distribution and marketing costs on a title-b y-title basis prior to any participation payments to the contracting parties of the films, except as pertains to certain contractually agreed upon advance payments. As primary obligor, revenue and related distribution and marketing costs for these arrangements are presented on a gross basis.
Sales Returns, Allowances & Uncollectible Accounts
The Company records a provision for sales returns and allowances, including price protection incentives, at the time of sale based upon an estimate of future returns, rebates and other incentives (“estimated returns”). In determining estimated returns, the Company considers numerous sources of qualitative and quantitative evidence including forecasted sales data, customers’ rights of return, units shipped and units remaining at retail, historical return rates for similar product, current economic trends, competitive environment, promotions and sales strategies. Reserves for accounts receivable are based on amo unts estimated to be uncollectible.
Inventory
Inventories related to theatrical and original media network programming content (which include direct production costs, production overhead, acquisition costs and development costs) are stated at the lower of amortized cost or fair value.

Film inventories, which are included as a component of Inventory, net, in the Consolidated Balance Sheets, are amortized and estimated liabilities for residuals and participations are accrued using an individual-film-forecast-computation method based on the ratio of current period to estimated remaining total gross revenues (“ultimate revenues”). Ultimate revenues for feature films include revenues from all sources that are estimated to be earned within ten years from the date of a film’s initial theatrical release. For acquired film libraries, the Company’s estimate of ultimate revenues is for a period within 20 years from the date of acquisit ion. These estimates are periodically reviewed and adjustments, if any, will result in changes to inventory amortization rates, estimated accruals for residuals and participations or possibly the recognition of an impairment charge to operating income. The Company has entered into film financing arrangements that involve the sale of a partial copyright interest in a film. Amounts received under these arrangements are deducted from the film’s cost.
The cost of theatrical development projects is amortized over a three-year period unless they are abandoned earlier, in which case these projects are written down to their estimated net realizable value in the period the decision to abandon the project is determined. The Company has a rigorous greenlight process designed to manage the risk of loss or abandonment.
The Company acquires rights to programming and produces original programming to exhibit on its media networks which is also included as a component of Inventory, net, in the Consolidated Balance Sheets. The costs incurred in acquiring and producing programs are capitalized and amortized over the license period or projected useful life of the programming if shorter. Original programming development costs are expensed unless a project is greenlit for production. An impairment charge is recorded when the fair value of the original programming is less than the unamortized production cost or the programming is abandoned.
Acquired program rights and obligations are recorded based on the gross amount of the liability when the license period has begun, and when the program is accepted and available for airing. Acquired programming is stated at the lower of unamortized cost or net realizable value. Net realizable value of acquired rights programming is evaluated quarterly by the Company on a daypart basis, which is defined as an aggregation of programs broadcast during a particular time of day or an aggregation of programs of a similar type. The Company aggregates simil ar programming based on the specific demographic targeted by each respective program service. Net realizable value is determined by estimating advertising revenues to be derived from the future airing of the programming within the daypart as well as an allocation of affiliate fee revenue to the programming. An impairment charge may be necessary if the Company’s estimates of future cash flows of similar programming are insufficient or if programming is abandoned.

Merchandising and other inventories are valued at the lower of cost or net realizable value. Cost is determined using the average cost method. Obsolescence reserves are based on estimates of future product demand.
Advertising Expense
The Company expenses advertising costs as they are incurred. The Company incurred total advertising expenses of $1.295 billion, $1.662 billion and $1.628 billion in 2009, 2008 and 2007, respectively.
Business Combinations and Intangibl e Assets Including Goodwill
The Company accounts for business combinations using the acquisition method of accounting. Under the acquisition method, once control is obtained of a business, 100% of the assets, liabilities and certain contingent liabilities acquired, including amounts attributed to noncontrolling interests, are recorded at fair value. Goodwill represents the residual difference between the fair value of consideration paid and the net assets acquired, and transaction costs are expensed as incurred. Prior to 2009, the Company accounted for business combinations using the purchase method of accounting, which allocated the consideration to the fair value of the net assets acquired, including intangible assets, with the residual allocated to goodwill.

Identifiable intangible assets with finite lives are amortized over their estimated useful lives, which range from 3 to 15 years. Goodwill and identifiable intangible assets with indefinite lives are not amortized , but rather are tested annually for impairment, or sooner when circumstances indicate impairment may exist.
Impairment
Amortizable intangible assets and other long-lived assets are tested for impairment utilizing an income approach based on undiscounted cash flows upon the occurrence of certain triggering events and, if impaired, written down to fair value. Goodwill and indefinite-lived intangible assets are tested for impairment using a fair value approach at the reporting unit level for goodwill. A reporting unit is the operating segment, or a business which is one level below that operating segment. For all periods presented, the Company’s reporting units are consistent with its operating segments in all material respects.

Comprehensive Income
Comprehensive income includes net earnings, foreign currency translation adjustments, amortization of amounts related to defined benefit plans, unrealized gains or losses on certain deri vative financial instruments, and unrealized gains and losses on investments in equity securities which are publicly traded.
Earnings per Common Share
Basic earnings per common share excludes potentially dilutive securities and is computed by dividing Net earnings attributable to Viacom by the weighted average number of common shares outstanding during the period. The determination of diluted earnings per common share includes the potential dilutive effect of stock options, restricted share units (RSUs) and performance share units (PSUs) based upon the application of the treasury stock method. Anti-dilutive common shares were excluded from the calculation of diluted earnings per common share.
The following table sets forth the computation of the common shares outstanding utilized in determining basic and diluted earnings per common share and anti-dilutive shares:

CONSOLIDATED BALANCE SHEETS - USD ($) shares in Millions	12 Months Ended
CONSOLIDATED BALANCE SHEETS - USD ($) shares in Millions	Dec. 31, 2009	Dec. 31, 2008
Current assets:
Cash and cash equivalents	$ 298,000,000	$ 792,000,000
Receivables, net (including retained interests in securitizations - see Note 8)	2,881,000,000	2,271,000,000
Inventory, net	779,000,000	881,000,000
Deferred tax assets, net	147,000,000	203,000,000
Prepaid and other assets	325,000,000	355,000,000
Total current assets	4,430,000,000	4,502,000,000
Property and equipment, net	1,179,000,000	1,145,000,000
Inventory net	3,731,000,000	4,133,000,000
Goodwill	11,401,000,000	11,470,000,000
Intangibles, net	570,000,000	674,000,000
Other assets	589,000,000	563,000,000
Total assets	21,900,000,000	22,487,000,000
Current liabilities:
Accounts payable	248,000,000	574,000,000
Accrued expenses	1,169,000,000	1,304,000,000
Participants' share and residuals	1,090,000,000	1,537,000,000
Program rights obligations	404,000,000	384,000,000
Deferred revenue	323,000,000	442,000,000
Current portion of debt	123,000,000	105,000,000
Other liabilities	394,000,000	496,000,000
Total current liabilities	3,751,000,000	4,842,000,000
Noncurrent portion of debt	6,650,000,000	7,897,000,000
Participants' share and residuals, noncurrent	739,000,000	488,000,000
Program rights obligations, noncurrent	523,000,000	621,000,000
Deferred tax liabilities, net	89,000,000	12,000,000
Other liabilities, non-current	1,303,000,000	1,556,000,000
Redeemable noncontrolling interest	$ 168,000,000	$ 148,000,000
Commitments and contingencies (Note 16)	-	-
Viacom Stockholders' equity:
Additional paid-in-capital	$ 8,287,000,000	$ 8,186,000,000
Treasury stock	5,725,000,000	5,725,000,000
Accumulated other comprehensive income (loss)	35,000,000	(49,000,000)
Retained earnings	6,106,000,000	4,496,000,000
Total Viacom stockholders' equity	8,704,000,000	6,909,000,000
Noncontrolling interests	(27,000,000)	14,000,000
Total equity	8,677,000,000	6,923,000,000
Total liabilities and equity	21,900,000,000	22,487,000,000
Common stock, Class A
Viacom Stockholders' equity:
Common stock, value	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized	375.0	375.0
Common stock, outstanding	52.4	57.4
Common stock, Class B
Viacom Stockholders' equity:
Common stock, value	$ 1,000,000	$ 1,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized	5,000.0	5,000.0
Common stock, outstanding	555.0	549.4
Common Stock/APIC
Viacom Stockholders' equity:
Total equity	$ 8,288,000,000	$ 8,187,000,000
Treasury Stock
Viacom Stockholders' equity:
Treasury stock held	151.5	151.5
Total equity	$ (5,725,000,000)	$ (5,725,000,000)
Retained Earnings
Viacom Stockholders' equity:
Total equity	6,106,000,000	4,496,000,000
Accumulated Other Comprehensive Income (Loss)
Viacom Stockholders' equity:
Total equity	35,000,000	(49,000,000)
Total Viacom Stockholders Equity
Viacom Stockholders' equity:
Total equity	8,704,000,000	6,909,000,000
Noncontrolling Interests
Viacom Stockholders' equity:
Total equity	$ (27,000,000)	$ 14,000,000

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007
OPERATING ACTIVITIES
Net earnings (Viacom and noncontrolling interests)	$ 1,588	$ 1,268	$ 1,859
Discontinued operations, net of tax	(20)	(18)	(208)
Net earnings from continuing operations	1,568	1,250	1,651
Reconciling items:
Depreciation and amortization	391	405	393
Feature film and program amortization	4,346	4,808	3,747
Stock based compensation	102	99	86
Gain on sale of equity investment	0	0	(151)
Equity in investee companies, net of distributions	86	103	26
Provision for deferred taxes	87	14	33
Decrease in securitization program	(950)	0	0
Operating assets and liabilities, net of acquisitions:
Receivables	208	279	(329)
Inventory, program rights and participations	(4,048)	(4,731)	(3,809)
Accounts payable and other current liabilities	(520)	(278)	(36)
Other, net	(119)	74	156
Discontinued operations, net	0	13	9
Cash provided by operations	1,151	2,036	1,776
INVESTING ACTIVITIES
Acquisitions and investments, net	(133)	(296)	(70)
Business dispositions	0	0	194
Capital expenditures	(141)	(288)	(237)
Discontinued operations, net	0	13	361
Net cash flow (used in) provided by investing activities	(274)	(571)	248
FINANCING ACTIVITIES
Borrowings from banks	4,075	2,845	750
Repayments to banks	(4,725)	(2,945)	0
Issuance of senior notes and debentures, net of discount	1,387	0	745
Repayment of senior notes	(2,056)	0	0
Commercial paper	16	(56)	(1,038)
Payment of other financing obligations	(65)	(124)	(81)
Special Dividend to Former Viacom	0	0	(170)
Purchase of treasury stock	(8)	(1,266)	(2,134)
Distributions to noncontrolling interests	(13)	(13)	(16)
Exercise of stock options and other, net	1	4	113
Net cash flow used in financing activities	(1,388)	(1,555)	(1,831)
Effect of exchange rate changes on cash and cash equivalents	17	(38)	21
Net change in cash and cash equivalents	(494)	(128)	214
Cash and cash equivalents at beginning of period	792	920	706
Cash and cash equivalents at end of period	$ 298	$ 792	$ 920

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007
Statement [Line Items]
Equity, at beginning of period	$ 6,923	$ 6,919	$ 7,166
Adoption of guidance for redeemable securities			(199)
Equity, restated (post adoption of redeemable securities guidance)			6,967
Net earnings	1,588	1,268	1,859
Translation adjustments	31	(54)	69
Unrealized gain (loss) on securities	5	0	(3)
Cash flow hedges	(5)	(4)	(2)
Defined benefit pension plans	52	(119)	16
Comprehensive income	1,671	1,091	1,939
Reclassifications to redeemable noncontrolling interest	(13)	(3)	(14)
Change in redemption value of put option	(1)	26	6
Acquisition of additional shares in noncontrolling interest		11	(1)
Dividends to noncontrolling interests	4	(5)	(5)
Stock based compensation	113	113	97
Exercise of stock options, and other, value	(12)	(6)	110
Purchase of treasury stock, value		(1,223)	(2,157)
Adoption of accounting for uncertainty in income taxes			(23)
Equity, at end of period	$ 8,677	$ 6,923	$ 6,919
Common Stock Issued & held in treasury
Statement [Line Items]
Shares issued, at beginning of period	606.8	644.8	693.2
Exercise of stock options, and other, shares	0.6	0.7	4.1
Purchase of treasury stock, shares		(38.7)	(52.5)
Shares issued, at end of period	607.4	606.8	644.8
Common Stock/APIC
Statement [Line Items]
Equity, at beginning of period	$ 8,187	$ 8,080	$ 7,873
Equity, restated (post adoption of redeemable securities guidance)			7,873
Stock based compensation	113	113	97
Exercise of stock options, and other, value	(12)	(6)	110
Purchase of treasury stock, value		(1,223)
Equity, at end of period	8,288	8,187	8,080
Treasury Stock
Statement [Line Items]
Equity, at beginning of period	(5,725)	(4,502)	(2,345)
Equity, restated (post adoption of redeemable securities guidance)			(2,345)
Purchase of treasury stock, value			(2,157)
Equity, at end of period	(5,725)	(5,725)	(4,502)
Retained Earnings
Statement [Line Items]
Equity, at beginning of period	4,496	3,219	1,592
Adoption of guidance for redeemable securities			(194)
Equity, restated (post adoption of redeemable securities guidance)			1,398
Net earnings	1,611	1,251	1,838
Change in redemption value of put option	(1)	26	6
Adoption of accounting for uncertainty in income taxes			(23)
Equity, at end of period	6,106	4,496	3,219
Accumulated Other Comprehensive Income (Loss)
Statement [Line Items]
Equity, at beginning of period	(49)	114	46
Adoption of guidance for redeemable securities			(10)
Equity, restated (post adoption of redeemable securities guidance)			36
Translation adjustments	32	(40)	67
Unrealized gain (loss) on securities	5	0	(3)
Cash flow hedges	(5)	(4)	(2)
Defined benefit pension plans	52	(119)	16
Equity, at end of period	35	(49)	114
Total Viacom Stockholders Equity
Statement [Line Items]
Equity, at beginning of period	6,909	6,911	7,166
Adoption of guidance for redeemable securities			(204)
Equity, restated (post adoption of redeemable securities guidance)			6,962
Net earnings	1,611	1,251	1,838
Translation adjustments	32	(40)	67
Unrealized gain (loss) on securities	5	0	(3)
Cash flow hedges	(5)	(4)	(2)
Defined benefit pension plans	52	(119)	16
Comprehensive income	1,695	1,088	1,916
Change in redemption value of put option	(1)	26	6
Stock based compensation	113	113	97
Exercise of stock options, and other, value	(12)	(6)	110
Purchase of treasury stock, value		(1,223)	(2,157)
Adoption of accounting for uncertainty in income taxes			(23)
Equity, at end of period	8,704	6,909	6,911
Noncontrolling Interests
Statement [Line Items]
Equity, at beginning of period	14	8	0
Adoption of guidance for redeemable securities			5
Equity, restated (post adoption of redeemable securities guidance)			5
Net earnings	(23)	17	21
Translation adjustments	(1)	(14)	2
Comprehensive income	(24)	3	23
Reclassifications to redeemable noncontrolling interest	(13)	(3)	(14)
Acquisition of additional shares in noncontrolling interest		11	(1)
Dividends to noncontrolling interests	4	(5)	(5)
Equity, at end of period	$ (27)	$ 14	$ 8

Description of Business and Basis of Presentation	12 Months Ended
Description of Business and Basis of Presentation	Dec. 31, 2009
Notes To Financial Statements Abstract
Description of Business and Basis of Presentation	VIACOM INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Description of Business Viacom Inc. including its consolidated subsidiaries (“Viacom” or the “Company”) is a leading global entertainment content company, engaging audiences on television, motion picture, Internet, mobile and video game platforms through many of the world’s best known entertainment brands. Viacom operates through two reporting segments: Media Networks, which includes MTV Networks (“MTVN”) and BET Networks (“BETN”); and Filmed Entertainment. The Media Networks segment provides entertainment content for consumers in key demographi cs attractive to advertisers, content distributors and retailers. The Filmed Entertainment segment produces, finances and distributes motion pictures and other entertainment content under the Paramount Pictures, Paramount Vantage, Paramount Classics, MTV Films and Nickelodeon Movies brands. The Filmed Entertainment segment also continues to release certain pictures under the DreamWorks brand. It also acquires films for distribution and has distribution relationships with third parties. Basis of Presentation Accounting Changes Noncontrolling Interests In December 2007, the Financial Accounting Standards Board (the “FASB”) issued new guidance which establishes and provides accounting and reporting standards for the noncontrolling interest in a consolidated subsidiary and for the deconsolidation of a subsidiary. The Company has adopted the provisions under this guidance beginning January 1, 2009, via retrospective application of the pr esentation and disclosure requirements. The retrospective impact of applying this guidance was the reclassification of $5 million from mezzanine equity to noncontrolling interests as of December 31, 2006. In conjunction with its adoption of the new guidance for noncontrolling interests, the Company adopted the guidance for redeemable securities. The redeemable security guidance is applicable to all noncontrolling interests where the Company is subject to a put option under which it may be required to repurchase an interest in a consolidated subsidiary from the noncontrolling interest holder. The Company is currently subject to a redeemable put option for an international subsidiary payable in a foreign currency which expires in 2011. At December 31, 2009 and 2008, the redemption value of the put was approximately $168 million and $148 million, respectively, and is reflected in the Consolidated Balance Sheets as Redeemable noncontrolling interest. The retrospective impact of applyi ng this guidance was a reduction to opening Retained earnings of $194 million and a reduction to Accumulated other comprehensive income (loss) in the Consolidated Balance Sheet of $10 million as of December 31, 2006. See Note 17 for additional information on the activity related to the redeemable noncontrolling interest. Accounting for Uncertainty in Income Taxes In July 2006, the FASB issued additional guidance which clarifies the accounting for uncertainty in income taxes recognized in the Company’s financial statements. The revised guidance also prescribes a recognition threshold and measurement model for the financial statement recognition and measurement of a tax position taken, or expected to be taken, in a tax return and provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company adopted the provisions under this guidance on January 0;1, 2007. As a result of the implementation, the Company recognized a $9 million increase in unrecognized income tax benefits, primarily related to state income tax matters, along with $14 million of related potential interest and penalties. The items were recorded as Other liabilities—noncurrent with a corresponding reduction to Retained earnings in the Consolidated Balance Sheet as of January 1, 2007. Subsequent Events The Company has performed an evaluation of subsequent events through February 11, 2010, which is the date the financial statements were issued. Reclassification Certain amounts have been reclassified to conform to the 2009 presentation.