Twenty-First Century Fox 2013 Annual Report Download - page 57

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Selling, general and administrative expenses increased 8% for the fiscal year ended June 30, 2013 as
compared to fiscal 2012, primarily due to increased expenses at the Cable Network Programming, the Filmed
Entertainment and Television segments of approximately $160 million, $70 million and $36 million,
respectively. The increase at the Cable Network Programming segment was primarily due to the consolidations
of Fox Sports Asia and FSLA, the acquisition of EMM and the launch of new channels. The increase at the
Filmed Entertainment and Television segments was primarily due to higher personnel costs and higher legal
expenses for cases relating to protection of the Company’s intellectual property rights.
Depreciation and amortization increased 12% for the fiscal year ended June 30, 2013 as compared to fiscal
2012, primarily due to consolidations of Sky Deutschland, Fox Sports Asia and FSLA and the acquisition of
EMM.
Goodwill impairment and restructuring charges—During fiscal 2013 and fiscal 2012, the Company
recorded non-cash goodwill impairment charges of $35 million and $201 million, respectively, related to the sale
of a business in its Digital Media Group in fiscal 2013. The Company recorded restructuring charges from
continuing operations of $13 million and $41 million, respectively. The restructuring charges related to accretion
on facility termination obligations in both fiscal 2013 and 2012 and one-time termination benefits in fiscal 2012.
Equity earnings of affiliates—Equity earnings of affiliates increased $19 million for the fiscal year ended
June 30, 2013 as compared to fiscal 2012, primarily due to improved results at the DBS equity affiliates of $168
million partially offset by losses at the other equity affiliates. The improvement in DBS equity results was driven
by the absence of approximately $85 million in losses as a result of the consolidation of Sky Deutschland and
improved results of approximately $75 million from British Sky Broadcasting Group plc (“BSkyB”). These
improvements were partially offset by lower contributions of approximately $70 million from Hulu LLC
(“Hulu”), as a result of the redemption of Providence Equity Partners’ equity interest in October 2012 and the
absence of approximately $55 million in equity earnings resulting from the sale of the Company’s investment in
NDS in July 2012.
For the years ended June 30,
2013 2012 Change % Change
(in millions, except %)
DBSequityaffiliates ........................................ $826 $658 $168 26%
Cable channel equity affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (52) (34) (18) 53%
Otherequityaffiliates ........................................ (119) 12 (131) **
Total Equity earnings of affiliates from continuing operations . . . . . . . . $ 655 $636 $ 19 3%
** not meaningful
Interest expense, net—Interest expense, net increased $31 million for the fiscal year ended June 30, 2013 as
compared to fiscal 2012, primarily due to the issuance of $1.0 billion of 3.00% Senior Notes due 2022 in
September 2012 and increased interest expense related to the consolidation of Sky Deutschland debt.
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