Twenty-First Century Fox 2014 Annual Report Download - page 111

TWENTY-FIRST CENTURY FOX, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
105
The Company monitors its positions with, and the credit quality of, the financial institutions which are
counterparties to its financial instruments. The Company is exposed to credit loss in the event of nonperformance by
the counterparties to the agreements. At June 30, 2014, the Company did not anticipate nonperformance by any of
the counterparties.
NOTE 9. PROPERTY, PLANT AND EQUIPMENT
As of June 30,
Useful lives 2014 2013
(in millions)
Land .................................................................................................... $ 142 $ 142
Buildings and leaseholds .................................................................... 3 to 40 years 1,373 1,307
Machinery and equipment .................................................................. 3 to 15 years 6,571 5,726
8,086 7,175
Less: accumulated depreciation and amortization .............................. (5,300 ) (4,480)
2,786 2,695
Construction in progress ..................................................................... 145 134
Total property, plant and equipment, net ............................................ $ 2,931 $ 2,829
Depreciation and amortization related to Property, plant and equipment was $741 million, $614 million and
$585 million for the fiscal years ended June 30, 2014, 2013 and 2012, respectively. This includes depreciation of
set-top boxes in the Direct Broadcast Satellite Television segment of $308 million, $240 million and $221 million
for the fiscal years ended June 30, 2014, 2013 and 2012, respectively.
Total operating lease expense was approximately $365 million for the fiscal year ended June 30, 2014 and
$385 million for the fiscal years ended June 30, 2013 and 2012.
NOTE 10. GOODWILL AND OTHER INTANGIBLE ASSETS
The changes in the carrying values of the Company’s intangible assets and related accumulated amortization
were as follows:
Intangible assets not
subject to amortization
Amortizable intangible
assets, net
FCC
licenses Other Total
MVPD
affiliate
agreements
and
relationships(a) 
Other
intangible
assets,
net(b)  Total
Total
intangible
assets,
net
(in millions)
Balance, June 30, 2013 ........... $ 2,398 $ 1,025 $ 3,423 $ 708 $ 933 $ 1,641 $ 5,064
Acquisitions ............................ - 191 191 1,464 82 1,546 1,737
Foreign exchange .................... - 7 7 - 63 63 70
Amortization ........................... - - - (90) (311 ) (401 ) (401)
Adjustments ............................ - 240 240 - 1,362 1,362 1,602
Balance, June 30, 2014 ........... $ 2,398 $ 1,463 $ 3,861 $ 2,082 $ 2,129 $ 4,211 $ 8,072
(a) Net of accumulated amortization of $367 million and $277 million as of June 30, 2014 and 2013, respectively.
The average useful life of the MVPD affiliate agreements and relationships ranges from 10 to 20 years.
(b) Net of accumulated amortization of $791 million and $551 million as of June 30, 2014 and 2013, respectively.
The average useful life of other intangible assets ranges from 5 to 20 years.
The increase in MVPD affiliate agreements and relationships is attributable to the acquisition of the majority
interest in the YES Network in February 2014. The increase in other intangible assets, net is attributable to the