Twenty-First Century Fox 2013 Annual Report Download - page 102

TWENTY-FIRST CENTURY FOX, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Date” (“ASU 2013-04”). The objective of ASU 2013-04 is to provide guidance for the recognition, measurement,
and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of
the obligation (within the scope of this guidance) is fixed at the reporting date. Examples of obligations within
the scope of ASU 2013-04 include debt arrangements, other contractual obligations, and settled litigation and
judicial rulings. ASU 2013-04 is effective for the Company for interim reporting periods beginning July 1, 2014,
however, early adoption is permitted. The Company is currently evaluating the impact ASU 2013-04 will have
on its consolidated financial statements.
In March 2013, the FASB issued ASU 2013-05, “Parent’s Accounting for the Cumulative Translation
Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an
Investment in a Foreign Entity,” (“ASU 2013-05”). The objective of ASU 2013-05 is to resolve the diversity in
practice regarding the release of the cumulative translation adjustment into net income when a parent either sells
a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary
or group of assets or a business within a foreign entity. ASU 2013-05 is effective for the Company for interim
reporting periods beginning July 1, 2014, however, early adoption is permitted. The Company is currently
evaluating the impact ASU 2013-05 will have on its consolidated financial statements.
NOTE 3. ACQUISITIONS, DISPOSALS AND OTHER TRANSACTIONS
Fiscal 2013
Acquisitions
During the fiscal year ended June 30, 2013, the Company completed a number of acquisitions as more fully
described below. All of the Company’s acquisitions were accounted for under Accounting Standards
Codification (“ASC”) 805, “Business Combinations” (“ASC 805”), which requires, among other things, that an
acquirer (i) remeasure any previously held equity interest in an acquiree at its acquisition date fair value and
recognize any resulting gains or losses in earnings and (ii) record any noncontrolling interests in an acquiree at
their acquisition date fair values. Accordingly, some of these transactions described below resulted in the
recognition of remeasurement gains since the Company acquired control of an acquiree in stages. Further, other
transactions described below involved the Company acquiring control with an ownership stake of less than
100%. In those instances, the allocation of the excess purchase price reflects 100% of the fair value of the
acquiree with the noncontrolling interests recorded at fair value.
The below acquisitions all support the Company’s strategic priority of increasing its brand presence and
reach in key international and domestic markets, acquiring greater control of investments that complement its
portfolio of businesses and creating new pay-TV sports franchises. For those acquisitions where the allocation of
the excess purchase price is not final, the amounts allocated to intangibles and goodwill, the estimates of useful
lives and the related amortization expense are subject to change pending the completion of final valuations of
certain assets and liabilities. A change in the purchase price allocations and any estimates of useful lives could
result in a change in the value allocated to the intangible assets that could impact future amortization expense.
For the fiscal year ended June 30, 2013, the below acquisitions contributed approximately $1.3 billion in
revenues and $150 million in Segment OIBDA to the Company’s consolidated results of operations and
approximately $500 million of goodwill that is deductible for tax purposes based upon preliminary allocations.
Eredivisie Media & Marketing
In November 2012, the Company acquired a controlling 51% ownership stake in Eredivisie Media &
Marketing CV (“EMM”) for approximately $350 million, of which $325 million was cash and $25 million was
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