Twenty-First Century Fox 2014 Annual Report Download - page 123

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TWENTY-FIRST CENTURY FOX, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
117
The following table summarizes the Company’s equity-based compensation:
For the years ended June 30,
2014 2013 2012
(in millions)
Equity-based compensation from continuing operations ................................... $ 205 $ 241 $ 198
Cash received from exercise of equity-based compensation ............................. $ 35 $ 181 $ 147
Total intrinsic value of stock options exercised(a) .............................................. $ 32 $ 73 $ 34
(a) The total intrinsic value of options exercised related to discontinued operations for fiscal 2014, 2013 and 2012
was $9 million, $23 million and $12 million, respectively.
At June 30, 2014, the Company’s total compensation cost, not yet recognized, related to non-vested RSUs and
PSUs for all plans presented was approximately $120 million and is expected to be recognized over a weighted
average period between one and two years.
The Company recognized a tax benefit of $89 million, $66 million and $35 million for fiscal 2014, 2013 and
2012, respectively, on vested PSUs and RSUs and on the exercise of stock options.
At June 30, 2014 and 2013, the liability for cash-settled awards was approximately $165 million and $185
million, respectively.
NOTE 15. RELATED PARTIES
Director transactions
In connection with the Separation in fiscal 2013, the Company undertook a series of internal reorganization
transactions to facilitate the transfers of entities and the related assets and liabilities. As part of those transactions,
the Company redeemed 7,600 shares of preferred stock of Fox Television Holdings, Inc. (the “Preferred Stock”), an
indirect wholly-owned subsidiary, from Mr. K.R. Murdoch, the Company’s Chairman and CEO. Mr. K.R. Murdoch
initially was issued the Preferred Stock in connection with the Company’s first acquisition of broadcast television
stations in the U.S., at a time when the Company was domiciled in Australia. The Preferred Stock was issued to
Mr. K.R. Murdoch, a U.S. citizen, to enable compliance with federal law and FCC rules regulating foreign
ownership of broadcast licensees. The structure was no longer necessary under federal law or FCC rules. The total
redemption of approximately $875,000 consisted of a $760,000 repurchase at par value, plus accrued and unpaid
dividends of approximately $115,000 (based on a $12 per share annual dividend). The amount paid was pursuant to
the terms of the Preferred Stock and no premium was paid on the shares.
Freud Communications, which is controlled by Matthew Freud, Mr. K.R. Murdoch’s son-in-law, provided
external support to certain press and publicity activities of the Company during fiscal years 2014, 2013 and
2012. The fees paid by the Company to Freud Communications were $142,000, $138,000 and $195,000 in fiscal
years ended June 30, 2014, 2013 and 2012, respectively.
Mr. Stanley Shuman, who resigned as Director Emeritus on June 28, 2013, and Mr. Kenneth Siskind, son of
Mr. Arthur M. Siskind, Director Emeritus and Senior Advisor to the Chairman, are Managing Directors of Allen &
Company LLC, a U.S. based investment bank, which provided investment advisory services to the Company. Total
fees paid to Allen & Company LLC were nil, $3 million and nil in fiscal 2014, 2013 and 2012, respectively.