Twenty-First Century Fox 2011 Annual Report Download - page 24

Download and view the complete annual report

Please find page 24 of the 2011 Twenty-First Century Fox annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 106

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
Other, net–
2010 2009
For the years ended June 30, (in millions)
Gain (loss) on the sale of eastern European television stations(a) $195 $ (100)
Loss on the financial indexes business transaction(a) (23) —
Loss on Photobucket transaction(a) (32) —
Gain on sale of NDS shares(a) — 1,249
Gain on the sale of the Stations(a) — 232
Impairment of cost based investments(b) (3) (113)
Change in fair value of exchangeable securities(c) 3 77
Other (71) (89)
Total Other, net $ 69 $1,256
(a) See Note 3 to the Consolidated Financial Statements of News Corporation.
(b) See Note 6 to the Consolidated Financial Statements of News Corporation.
(c) The Company had certain exchangeable debt securities which contained embedded derivatives. Pursuant to ASC 815, these embedded derivatives were not designated as hedges and, as such,
changes in their fair value were recognized in Other, net in the consolidated statements of operations. The Company redeemed the exchangeable debt securities in fiscal 2010. (See Note 11 to
the Consolidated Financial Statements of News Corporation.)
Income tax (expense) benefit–The Company’s tax provision and related tax rate for the fiscal year ended June 30, 2010 were lower than the
statutory rate primarily due to the recognition of prior year tax credits, permanent differences and the recognition of tax assets on the disposition
of certain assets. The recognition of prior year tax credits relates to the Company’s election to credit certain prior year taxes instead of claiming
deductions.
The Company’s tax provision and related tax rate for the fiscal year ended June 30, 2009 were different from the statutory rate primarily due
to the recognition of a non-cash benefit related to the reduction of accruals for uncertain positions resulting from the resolution of certain tax
matters and a permanent difference on the gain on the sale of a portion of a subsidiary. The tax provision and tax rate for the fiscal year ended
June 30, 2009 reflect these items, which were offset in part by the non-deductible goodwill included within the impairment charges taken in fiscal
2009.
Net income (loss)–Net income increased for the fiscal year ended June 30, 2010 as compared to fiscal 2009. The increase was primarily due to
a reduction in impairment charges recorded in fiscal 2010, as well as the higher revenues and equity earnings of affiliates as noted above. This
increase was partially offset by the litigation settlement charge recorded in fiscal 2010, the absence of the gain on the sale of a portion of the
Company’s ownership stake in NDS in February 2009, the gain on the sale of eight of the Company’s television stations in July 2008 and the
non-cash tax benefit in fiscal 2009 noted above.
Net income attributable to noncontrolling interests–Net income attributable to noncontrolling interests increased for the fiscal year ended
June 30, 2010 as compared to fiscal 2009, primarily due to higher results at the Company’s majority owned businesses. This increase was partially
offset by the absence of income from NDS due to the sale of a portion of the Company’s ownership stake in February 2009, resulting in the
Company’s remaining interest in NDS being accounted for under the equity method of accounting.
22 News Corporation