Twenty-First Century Fox 2005 Annual Report Download - page 107

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NEWS CORPORATION
Notes to the Consolidated Financial Statements (continued)
> Note 16 Other, Net
The following table sets forth the components of Other, net included in the accompanying consolidated statements of operations:
Footnote
reference 2005 2004 2003
For the years ended June 30, (in millions)
Loss on sale of RPP 3 $ (85) $ — $—
Loss on sale of Sky Multi-Country Partners 5 (55) ——
Gain on sale of Rogers Sportsnet 539
Gain on sale of Sky PerfecTV! 5 — 105 —
Monarchy dividend(a) — 52 —
Gain on sale of Radio 538 ——51
Early extinguishment of debt(b) — (13) (46)
World Trade Center insurance settlement — 26 —
Investment impairments(c) (10) — (98)
Change in fair value of Exchangeable securities(d) 246 18 (14)
Gain on repurchase of TOPrS, net(e) ——78
Other 43 (2) 20
Total Other, net $178 $186 $ (9)
(a) During fiscal 2004, the Company received a special dividend from Monarchy Enterprises Holdings B.V., a cost based investment. The portion of
the dividend representing a distribution of the Company’s share of cumulative earnings of the investee of $52 million is reflected as Other, net
while the balance was a return of capital.
(b) During fiscal 2004, the loss recognized relates to the redemption of the 6.703% MOPPRS. This loss was recognized in accordance with SFAS
No. 145, “Rescission of FASB Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13, and Technical Corrections.”
During fiscal 2003, the Company recognized an aggregate loss of approximately $46 million on the early extinguishments of debt obligations. In
March 2003, the Company purchased approximately 74% of its outstanding $500 million aggregate principal 8.5% Senior Notes due February
2005 at a premium, plus accrued interest. The Company recognized a loss of approximately $45 million on the early redemption of the 8.5%
Senior Notes. The balance of the loss relates to the redemption of the remaining portion of the 10.125% Senior Debentures due in October 2012
not redeemed in fiscal 2002.
(c) The Company continually monitors its investments to assess their realizability. Where an “other than temporary” impairment is deemed to have
occurred an impairment charge is recorded in the relevant period to adjust the carrying value of the investment to estimated fair value. During
fiscal 2003, the Company recorded a $92 million write-down of its cost-based investment in Knowledge Enterprises (See Note 5 Investments).
(d) The Company has certain outstanding exchangeable debt securities which contain embedded derivatives. Pursuant to SFAS No. 133, these
embedded derivatives are not designated as hedges and, as such, changes in their fair value are recognized in Other, net.
(e) In March 2003, 8,247,953 TOPrS were redeemed by the Company using proceeds from the issuance of BUCS. The Company recognized a loss
of approximately $37 million on early redemption of the TOPrS and recognized a gain of approximately $115 million on the retirement of the
related Warrants.
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