Twenty-First Century Fox 2014 Annual Report Download - page 102

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TWENTY-FIRST CENTURY FOX, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
96
The impairment charges also include $42 million reflecting the potential sale of assets at values below their carrying
values.
During the fourth quarter of fiscal 2012, News Corp recorded non-cash impairment charges of approximately
$2.6 billion ($2.2 billion, net of tax) related to discontinued operations. The charges consisted of a write-down of
News Corp’s goodwill of approximately $1.3 billion and a write-down of the indefinite-lived intangible assets
(primarily newspaper mastheads and distribution networks) of approximately $1.3 billion.
NOTE 5. RESTRUCTURING PROGRAMS
Fiscal 2014
In fiscal 2014, the Company recorded net restructuring charges from continuing operations of $52 million
reflecting $81 million in contract termination costs related to cost structure efficiency enhancement initiatives
primarily at the Direct Broadcast Satellite Television segment partially offset by an adjustment to facility
termination obligations.
Fiscal 2013
In fiscal 2013, the Company recorded restructuring charges from continuing operations of $13 million
primarily reflecting a charge for accretion on facility termination obligations.
Fiscal 2012
In fiscal 2012, the Company recorded restructuring charges from continuing operations of $41 million
reflecting $29 million in one-time termination benefits and a $12 million charge for accretion on facility termination
obligations.
Changes in the program liabilities were as follows:
One time
termination
benefits
Facility costs
and
license fees
Total
continuing
operations
Discontinued
operations Total
(in millions)
Balance, June 30, 2011 ............................ $ 4 $ 197 $ 201 $ 33 $ 234
Additions ................................................. 29 12 41 156 197
Payments .................................................. (16) (32) (48) (117 ) (165)
Other ........................................................ (4) - (4) (13 ) (17)
Balance, June 30, 2012 ............................ $ 13 $ 177 $ 190 $ 59 $ 249
Additions ................................................. 3 10 13 - 13
Payments .................................................. (12) (29) (41) - (41)
Separation of News Corp ......................... - - - (59 ) (59)
Balance, June 30, 2013 ............................ $ 4 $ 158 $ 162 $ - $ 162
Additions ................................................. 3 89 92 - 92
Payments .................................................. (5) (72) (77) - (77)
Other(a) ..................................................... - (40) (40) - (40)
Balance, June 30, 2014 ............................ $ 2 $ 135 $ 137 $ - $ 137
(a) Primarily related to a change in assumptions related to the facility termination obligations of the Company’s
formerly owned digital media properties.
Restructuring charges are recorded in Other, net in the Consolidated Statements of Operations (See Note 23 –
Additional Financial Information). The Company expects to record an additional $22 million of restructuring
charges, principally related to accretion on facility termination obligations through fiscal 2021. As of June 30, 2014,
restructuring liabilities of $34 million were included in Current liabilities and the balance of the accrual was