This excerpt taken from the TWX 10-K filed Mar 11, 2005.
Comprehensive Income (Loss)
Comprehensive income (loss) is reported on the accompanying consolidated statement of shareholders equity as a component of retained earnings (accumulated deficit) and consists of net income (loss) and other gains and losses affecting shareholders equity that, under U.S. generally accepted accounting principles, are excluded from net income (loss). For Time Warner, such items consist primarily of unrealized gains and losses on marketable equity investments, gains and losses on certain derivative financial instruments, foreign currency translation gains and losses and unfunded accumulated benefit obligations.
TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following summary sets forth the components of other comprehensive income (loss), net of tax, accumulated in shareholders equity: