Twenty-First Century Fox 2004 Annual Report Download - page 75

Consolidated
2004 2003 2002
A$ million
Note 6 Other items
The profit (loss) from ordinary activities before tax includes the
following Other items whose disclosure is relevant in
explaining the financial performance of the Group.
Disposal of interests in subsidiaries (a) (142) 504
Sale of investments (b) 114
Sale of Fox Family Worldwide (c) 2,323
Sale of Echostar shares (d) 468
Sale of Outdoor Life (e) 271
Write down of investment in Gemstar-TV Guide(f) (551) (11,138)
Write down of investment in Knowledge Enterprises (g) (158)
Early extinguishment of debt (h) (18) (143) (191)
Write down of sports rights (i) (1,861)
Write down of investment in Stream (j) (590)
Write down of investment in KirchMedia (k) (460)
Write down of investment in MediaHighway (l) (17)
Dividends income (m) 73
Office closure costs and other (40)
Disposal and write down of other non-current assets (n) (36) (30) (756)
(26) (378) (11,974)
Income tax benefit (expense) attributable to Other items (1) 215 (15)
Other loss after tax (27) (163) (11,989)
Other loss after tax comprises:
Other revenues before income tax 1,484 679 5,627
Other expenses before income tax (1,510) (1,057) (17,601)
Income tax benefit (expense) attributable to Other items (1) 215 (15)
(27) (163) (11,989)
(a) On 13 February, 2004, the Group sold the Los Angeles Dodgers (“Dodgers”), together with Dodger Stadium and the team’s
training facilities in Vero Beach, Florida and the Dominican Republic, to entities owned by Frank McCourt (the
“McCourt Entities”). The gross consideration for the sale of the Dodgers franchise and real estate assets was $616
million (US$421 million), subject to further adjustment. The consideration at closing was comprised of (i) $329 million
(US$225 million) in cash, (ii) a $183 million (US$125 million) two-year note secured by non-team real estate, (iii) a $59
million (US$40 million) four-year note secured by bank letters of credit and (iv) a $45 million (US$31 million) three-year
note that is convertible, at the Group’s option, into preferred equity in the McCourt Entities if unpaid at maturity. The
Group has agreed to remit $73 million (US$50 million) during the first two years following the closing of the transaction
to reimburse the McCourt Entities for certain pre-existing commitments. Pending the final determination of
contractual adjustments, the sale has resulted in an estimated loss of $142 million (US$101 million).
In fiscal 2003, primarily relates to the sale by Fox Entertainment Group (“FEG”), a subsidiary of the Group, of 50 million
shares of its Class A Common Stock for net proceeds of approximately $1.8 billion (US$1.2 billion). Upon consummation
of the offering, in November 2002, the Group’s equity and voting interest in FEG decreased from 85.32% and 97.84% to
80.58% and 97%, respectively. The resulting gain was recorded as Other revenue.
(b) Fiscal 2004 amount primarily relates to Group’s August 2003 sale of its entire 8.14% cost investment in SKY Perfect
Communications Inc. (“SKY PerfecTV!”). The Group’s 182,000 shares of SKY PerfecTV! were sold for total consideration
of $249 million . The Group recognised a gain of approximately $116 million on the sale, which is reflected in Other items
73
NEWS CORPORATION CONCISE REPORT 2004
Notes to and forming part of the Concise Financial Report
(continued)
for the year ended 30 June, 2004