Twenty-First Century Fox 2013 Annual Report Download - page 51

•Results of Operations—This section provides an analysis of the Company’s results of operations for the
three fiscal years ended June 30, 2013. This analysis is presented on both a consolidated and a segment
basis. In addition, a brief description is provided of significant transactions and events that impact the
comparability of the results being analyzed.
•Liquidity and Capital Resources—This section provides an analysis of the Company’s cash flows for
the three fiscal years ended June 30, 2013, as well as a discussion of the Company’s outstanding debt
and commitments, both firm and contingent, that existed as of June 30, 2013. Included in the discussion
of outstanding debt is a discussion of the amount of financial capacity available to fund the Company's
future commitments and obligations, as well as a discussion of other financing arrangements.
•Critical Accounting Policies—This section discusses accounting policies considered important to the
Company’s financial condition and results of operations, and which require significant judgment and
estimates on the part of management in application. In addition, Note 2 to the accompanying
Consolidated Financial Statements of Twenty-First Century Fox summarizes the Company's significant
accounting policies, including the critical accounting policy discussion found in this section.
OVERVIEW OF THE COMPANY’S BUSINESS
The Company has realigned its reporting segments following the Separation and the Other segment has been
renamed; Other, Corporate and Eliminations. This segment includes costs not directly associated with an
operating segment, such as corporate overhead and eliminations.
The Company is a diversified global media and entertainment company, which manages and reports its
businesses in the following five segments:
•Cable Network Programming, which principally consists of the production and licensing of
programming distributed through cable television systems, direct broadcast satellite operators and
telecommunication companies primarily in the U.S., Latin America, Europe and Asia.
•Television, which principally consists of the broadcasting of network programming in the U.S. and the
operation of 28 full power broadcast television stations, including 10 duopolies, in the U.S. (of these
stations, 18 are affiliated with the FOX Broadcasting Company (“FOX”) and 10 are affiliated with
Master Distribution Service, Inc. (“MyNetworkTV”)).
•Filmed Entertainment, which principally consists of the production and acquisition of live-action and
animated motion pictures for distribution and licensing in all formats in all entertainment media
worldwide, and the production and licensing of television programming worldwide.
•Direct Broadcast Satellite Television, which consists of the distribution of programming services via
satellite, cable, and broadband directly to subscribers in Italy, Germany and Austria.
•Other, Corporate and Eliminations, which principally consists of corporate overhead and eliminations
and other businesses.
Television and Cable Network Programming
The Company’s television operations primarily consist of FOX, MyNetworkTV and the 28 television
stations owned by the Company.
The television operations derive revenues primarily from the sale of advertising and to a lesser extent,
retransmission consent revenue. Adverse changes in general market conditions for advertising may affect
revenues. The U.S. television broadcast environment is highly competitive and the primary methods of
competition are the development and acquisition of popular programming. Program success is measured by
ratings, which are an indication of market acceptance, with the top rated programs commanding the highest
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