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TWENTY-FIRST CENTURY FOX, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
106
finalization of the allocation of excess purchase price for Sky Deutschland. (See Note 3 – Acquisitions, Disposals
and Other Transactions)
Amortization related to amortizable intangible assets was $401 million, $183 million and $126 million for the
fiscal years ended June 30, 2014, 2013 and 2012, respectively.
Based on the current amount of amortizable intangible assets, the estimated amortization expense for each of
the succeeding five fiscal years is as follows:
For the year ending June 30,
2015 2016 2017 2018 2019
(in millions)
Estimated amortization expense(a) ............ $ 401 $ 381 $ 355 $ 345 $ 343
(a) These amounts may vary as acquisitions and disposals occur in the future and as purchase price allocations are
finalized.
The changes in the carrying value of goodwill, by segment, are as follows:
Cable
Network
Programming
Television
Filmed
Entertainment
Direct
Broadcast
Satellite
Television
Other,
CorCorate
and
Eliminations Total Goodwill
(in millions)
Balance, June 30, 2013 .. $ 7,753 $ 1,882 $ 1,537 $ 6,052 $ 31 $ 17,255
Acquisitions ................... 1,620 - - - - 1,620
Foreign exchange
movements ................. 19 - 57 281 - 357
Adjustments ................... 159 - - (1,339) - (1,180)
Balance, June 30, 2014 .. $ 9,551 $ 1,882 $ 1,594 $ 4,994 $ 31 $ 18,052
The carrying amount of goodwill at June 30, 2014 and 2013 was net of accumulated impairments of $371
million.
The increase in the carrying value of the Cable Network Programming segment goodwill during fiscal 2014
was attributable to the preliminary allocation of the excess purchase price related to the acquisition of the majority
interest in the YES Network in February 2014 and the finalization of the allocation of excess purchase price related
to Fox Sports Asia. The decrease in the carrying value of Direct Broadcast Satellite Television segment goodwill
during fiscal 2014 was primarily due to the finalization of the allocation of excess purchase price, for Sky
Deutschland, from goodwill to acquired identifiable intangible assets of approximately $1.7 billion partially offset
by deferred tax liabilities of approximately $0.4 billion. (See Note 3 – Acquisitions, Disposals and Other
Transactions)
Annual Impairment Review
Goodwill
The Company’s goodwill impairment reviews are determined using a two-step process. The first step of the
process is to compare the fair value of a reporting unit with its carrying amount, including goodwill. In performing
the first step, the Company determines the fair value of a reporting unit by primarily using a discounted cash flow
analysis and market-based valuation approach methodologies. Determining fair value requires the exercise of
significant judgments, including judgments about appropriate discount rates, long-term growth rates, relevant
comparable company earnings multiples and the amount and timing of expected future cash flows. The cash flows
employed in the analyses are based on the Company’s estimated outlook and various growth rates have been
assumed for years beyond the long-term business plan period. Discount rate assumptions are based on an assessment
of the risk inherent in the future cash flows of the respective reporting units. In assessing the reasonableness of its
determined fair values, the Company evaluates its results against other value indicators, such as comparable public