Twenty-First Century Fox 2014 Annual Report Download - page 109

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TWENTY-FIRST CENTURY FOX, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
103
The changes in contingent consideration classified as Level 3 measurements were as follows:
For the years ended June 30,
2014 2013
(in millions)
Beginning of period ........................................................................................................ $ (84 ) $ -
Additions ........................................................................................................................ - (83)
Payments ......................................................................................................................... 1 -
Measurement adjustments ............................................................................................... (51 ) (1)
End of period .................................................................................................................. $ (134 ) $ (84)

The changes in redeemable noncontrolling interests classified as Level 3 measurements were as follows:
For the years ended June 30,
2014 2013
(in millions)
Beginning of period ........................................................................................................ $ (519 ) $ (641)
N
et income attributable to redeemable noncontrolling interests ..................................... (95 ) (93)
Distributions and other(a) ................................................................................................. 73 215
End of period .................................................................................................................. $ (541 ) $ (519)
(a) The redeemable noncontrolling interest in Asianet Communications was redeemed in fiscal 2013 and as a
result, $186 million was reclassified out of Redeemable noncontrolling interests.
Financial Instruments
The carrying value of the Company’s financial instruments, including cash and cash equivalents, receivables,
payables and cost method investments, approximates fair value.
The aggregate fair value of the Company’s borrowings at June 30, 2014 was $22,692 million compared with a
carrying value of $19,058 million and, at June 30, 2013, was $18,756 million compared with a carrying value of
$16,458 million. Fair value is generally determined by reference to market values resulting from trading on a
national securities exchange or in an over-the-counter market (a Level 1 measurement).
Foreign Currency Forward Contracts
The Company uses financial instruments primarily to hedge certain exposures to foreign currency exchange
risks associated with the cost of producing or acquiring films and television programming. The Company’s foreign
currency forward contracts are valued using an income approach based on the present value of the forward rate less
the contract rate multiplied by the notional amount. The notional amounts of foreign currency forward contracts
designated as cash flow hedges with foreign currency risk outstanding at June 30, 2014 and 2013 were $393 million
and $578 million, respectively. As of June 30, 2014 and 2013, the fair values of the foreign currency forward
contracts designated as cash flow hedges of $(3) million and $3 million, respectively, were recorded along with the
underlying hedged balances. The notional amounts of foreign currency forward contracts, not designated as cash
flow hedges, but used as economic hedges with foreign currency risk outstanding at June 30, 2014 and June 30,
2013 were $305 million and $128 million, respectively. As of June 30, 2014 and 2013, the fair values of the foreign
currency forward contracts used as economic hedges were not material and were recorded along with the underlying
hedged balances. For the fiscal years ended June 30, 2014 and 2013, the changes in the fair values of foreign
currency forward contracts that are not designated as cash flow hedges were not material. These changes were
recorded in earnings each period and are presented net within Other in the table below. As of June 30, 2014 and
2013, the fair values of all foreign currency forward contracts outstanding were $(4) and $3 million, respectively.