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TWENTY-FIRST CENTURY FOX, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. DESCRIPTION OF BUSINESS
Twenty-First Century Fox, Inc. and its subsidiaries (formerly known as News Corporation) (together,
“Twenty-First Century Fox” or the “Company”) is a Delaware corporation. On June 28, 2013, the Company
completed the separation of its business into two independent publicly traded companies (the “Separation”) by
distributing to its stockholders all of the outstanding shares of the new News Corporation (“News Corp”) (See
Note 4 – Discontinued Operations). The Company retained its interests in a global portfolio of media and
entertainment assets spanning six continents. News Corp holds the Company’s former businesses including
newspapers, information services and integrated marketing services, digital real estate services, book publishing,
digital education and sports programming and pay-TV distribution in Australia. The Company completed the
Separation by distributing to its stockholders one share of News Corp Class A common stock for every four
shares of the Company’s Class A common stock held on June 21, 2013, and one share of News Corp Class B
common stock for every four shares of the Company’s Class B common stock held on June 21, 2013. The
Company’s stockholders received cash in lieu of fractional shares. Following the Separation the Company does
not beneficially own any shares of News Corp Class A common stock or News Corp Class B common stock.
While the Separation was completed on June 28, 2013, these financial statements describe the Company giving
effect to the Separation, except where stated otherwise. The Company has also realigned its reporting segments
following the Separation and has reflected these changes for all periods presented. (See Note 19 – Segment
Information)
Twenty-First Century Fox is a diversified global media and entertainment company, which manages and
reports its businesses in five segments: Cable Network Programming, which principally consists of the
production and licensing of programming distributed through cable television systems and direct broadcast
satellite (“DBS”) 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”) programming distribution service); 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 of original television
programming worldwide; Direct Broadcast Satellite Television, which consists of the distribution of
programming services via satellite and broadband directly to subscribers in Italy, Germany and Austria; and
Other, Corporate and Eliminations, which principally consists of corporate overhead and eliminations and other
businesses.
Effective June 28, 2013, the Separation qualified for discontinued operations treatment in accordance with
Accounting Standards Codification (“ASC”) 205-20, “Discontinued Operations” (“ASC 205-20”), and
accordingly the Company has deconsolidated News Corp’s balance sheet as of June 30, 2013, and presented its
results for the three years in the period ended June 30, 2013 as discontinued operations on the statements of
operations and cash flows. The Company has reflected the Separation as a distribution on the statement of equity
as of June 30, 2013. The footnotes to the financial statements have also been revised accordingly.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of consolidation
The consolidated financial statements include the accounts of all majority-owned and controlled
subsidiaries. In addition, the Company evaluates its relationships with other entities to identify whether they are
variable interest entities as defined by Financial Accounting Standards Board (“FASB”) ASC 810-10,
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