Twenty-First Century Fox 2002 Annual Report Download - page 65

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NOTE 6
Other Items
The loss from ordinary activities before tax includes the following Other Items whose disclosure is
relevant in explaining the financial performance of the Company.
Sale of Echostar shares (a) 468 415
Sale of Fox Family Worldwide (b) 2,323
Sale of Outdoor Life (c) 271
Sale of TM3 (d) 18
Sale of The Golf Channel (e) 476
Healtheon/Web MD transaction restructure, net (f) (426)
Write down of investment in One.Tel (g) (576)
Write down of investment in Stream (h) (590)
Write down of investment in KirchMedia (i) (460)
Write down of investment in Gemstar (j) (11,138)
Write down of sports rights (k) (1,861)
Early extinguishment of debt (l) (191)
Restructuring costs (40) (258)
Disposal and write down of other non-current assets (m) (756) (923)
(11,974) (1,274)
Income tax (expense) benefit attributable to other items (15) 19
Other (loss) after tax (11,989) (1,255)
Other (loss) after tax comprises:
Other revenues before income tax 5,627 3,335
Other expenses before income tax (17,601) (4,609)
Income tax (expense) benefit attributable to other items (15) 19
(11,989) (1,255)
(a) During the year, the Company sold its investment in EchoStar Communications Corporation for total consideration of
$1,312 million (2001 $635 million) and recorded a gain on the sale of $468 million (2001 $415 million).
(b) In October, 2001, a subsidiary of the Company, Fox Broadcasting Company (“FOX”), Haim Saban and the other shareholders
of Fox Family Worldwide, Inc (“FFW”), sold FFW to The Walt Disney Company for total consideration of approximately
$10.3 billion which included the assumption of certain debt. FOX received proceeds of $3,242 million. As a result of this
transaction, the Company recognised a gain on sale of $2,323 million.
(c) On 25 July, 2001, as a result of the exercise of rights by existing shareholders, a subsidary of the Company, Fox Entertainment
Group (“FEG”) acquired 50.23% of Outdoor Life Network, LLC (“Outdoor Life”) for approximately $608 million. This acquisition
resulted in FEG owning 83.18% of Outdoor Life. On 23 August, 2001, a shareholder of Outdoor Life exercised its option to
acquire FEG’s ownership interest in Outdoor Life for $977 million in cash. Upon the closing of the sale, FEG recognised a gain of
$271 million.
(d) In January, 2001, the Company agreed to sell its wholly owned subsidiary TM3 Femsenen Gmbh & Co. KG to KirchMedia for cash
consideration of $265 million and $427 million in KirchMedia’s newly issued stock. The Company recorded a gain on this sale of
$18 million.
64
Notes to and forming part of the Concise Financial Report (Continued)
FOR THE YEAR ENDED 30 JUNE, 2002
THE NEWS CORPORATION LIMITED
Annual Report 2002
Consolidated
2002 2001
A$ million