Twenty-First Century Fox 2013 Annual Report Download - page 64

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Depreciation and amortization decreased 8% for the fiscal year ended June 30, 2012 as compared to fiscal
2011, primarily due to lower depreciation and amortization of approximately $80 million at the Other, Corporate
and Eliminations segment due to the Dispositions, partially offset by additional depreciation and amortization of
approximately $25 million from the acquisition of Shine at the Filmed Entertainment segment.
Goodwill impairment and restructuring charges—During fiscal 2012 and 2011, the Company recorded
non-cash goodwill impairment charges of $201 million and $168 million, respectively. The fiscal 2012 charge
related to the pending sale of a business in its Digital Media Group below its carrying value. In fiscal 2011, the
Company performed an interim impairment assessment of the Digital Media Group reporting unit’s goodwill. As
a result of the review performed, the Company recorded a non-cash goodwill impairment charge of $168 million
during the fiscal year ended June 30, 2011.
In fiscal 2012, the Company recorded restructuring charges from continuing operations of $41 million,
primarily reflecting $29 million of one-time termination benefits and a $12 million charge for accretion on
facility termination obligations. In fiscal 2011, the Company recorded restructuring charges from continuing
operations of approximately $120 million, of which $115 million related to the Company’s digital media
properties resulting from an organizational restructuring to align resources more closely with business properties
and consisted of facility related costs of $95 million, termination benefits of $18 million and other associated
costs of $2 million.
Equity earnings of affiliates—Equity earnings of affiliates increased $284 million for the fiscal year ended
June 30, 2012 as compared to fiscal 2011, primarily due to a gain on the sale of a portion of the Company’s
BSkyB investment in accordance with its share repurchase program of $270 million and improved results of
approximately $60 million from BSkyB and approximately $75 million from Sky Deutschland. These increases
were partially offset by the absence of approximately $135 million in gains recognized by NDS and BSkyB on
the sale of certain of their businesses in fiscal 2011.
For the years ended June 30,
2012 2011 Change % Change
(in millions, except %)
DBSequityaffiliates ........................................ $658 $232 $426 **
Cable channel equity affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (34) (8) (26) **
Otherequityaffiliates ........................................ 12 128 (116) (91)%
Total Equity earnings of affiliates from continuing operations . . . . . . . . $636 $352 $ 284 81%
** not meaningful
Interest expense, net—Interest expense, net increased $70 million for the fiscal year ended June 30, 2012 as
compared to fiscal 2011, primarily due to the $2.5 billion in senior notes issued in February 2011, partially offset
by the fiscal 2011 partial repayment of the $500 million senior debentures due February 2013.
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