Twenty-First Century Fox 2014 Annual Report Download - page 113

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TWENTY-FIRST CENTURY FOX, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
107
company trading values. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting
unit is not impaired and the second step of the impairment review is not necessary. If the carrying amount of a
reporting unit exceeds its fair value, the second step of the goodwill impairment review is required to be performed
to estimate the implied fair value of the reporting unit’s goodwill. The implied fair value of goodwill is determined
in the same manner as the amount of goodwill recognized in a business combination. That is, the estimated fair
value of the reporting unit is allocated to all of the assets and liabilities of that unit (including any unrecognized
intangible assets) as if the reporting unit had been acquired in a business combination and the estimated fair value of
the reporting unit was the purchase price paid. The implied fair value of the reporting unit’s goodwill is compared
with the carrying amount of that goodwill. If the carrying amount of the reporting unit’s goodwill exceeds the
implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess.
FCC licenses
The Company performs impairment reviews consisting of a comparison of the estimated fair value of the
Company’s FCC licenses with their carrying amount on a station-by-station basis using a discounted cash flow
valuation method, assuming a hypothetical start-up scenario for a broadcast station in each of the markets the
Company operates in. The significant assumptions used are the discount rate and terminal growth rates and
operating margins, as well as industry data on future advertising revenues in the markets where the Company owns
television stations. These assumptions are based on actual historical performance in each market and estimates of
future performance in each market.
Fiscal 2014
During fiscal 2014, the Company determined that the goodwill and indefinite-lived intangible assets included
in the Consolidated Balance Sheet as of June 30, 2014 were not impaired.
Fiscal 2013 and 2012
The Company recorded goodwill impairment charges of $35 million and $201 million in fiscal 2013 and 2012,
respectively, related to a business in its Digital Media Group, which was sold in fiscal 2013.
NOTE 11. BORROWINGS
Weighted
average
interest rate Due date as of
Outstanding
as of June 30,
Description as of June 30, 2014 June 30, 2014 2014 2013
(in millions)
Bank loans ....................................................... $ 1,434 $ 293
Public debt
- Predecessor indentures ............................. 7.02% 2014 - 2096 11,529 11,665
- Senior notes issued under August 2009
indenture ................................................. 5.11% 2020 - 2043 5,500 4,500
Total public debt .............................................. 17,029 16,165
Other borrowings ............................................. June 2018 595 -
Total borrowings .............................................. 19,058 16,458
Less: current portion ........................................ (799 ) (137)
Long-term borrowings ..................................... $ 18,259 $ 16,321