Twenty-First Century Fox 2014 Annual Report Download - page 124

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TWENTY-FIRST CENTURY FOX, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
118
Other related entities
In the ordinary course of business, the Company enters into transactions with related parties, such as equity
affiliates, to purchase and/or sell advertising, the sale of programming, administrative services and supplying digital
technology and services for digital pay television platforms. The following table sets forth the net revenue from
related parties included in the Consolidated Statements of Operations:
For the years ended June 30,
2014 2013 2012
(in millions)
Related party revenue, net of expense ..................................................... $ 546 $ 398 $ 317
The following table sets forth the amount of accounts receivable due from and payable to related parties
outstanding on the Consolidated Balance Sheets:
As of June 30,
2014 2013
(in millions)
Accounts receivable from related parties ......................................................................... $ 223 $ 254
Accounts payable to related parties(a) .............................................................................. 165 456
(a) Balances as of June 30, 2014 and 2013 include amounts expected to be covered by the Indemnity (See Note
16 – Commitments and Contingencies). Also included in fiscal 2013 was the final cash distribution to News
Corp.
Rotana
The Company has an approximate 19% interest in Rotana Holding FZ-LLC (“Rotana”), a diversified media
company in the Middle East and North Africa. A significant stockholder of the Company, who owns more than 5%
of the Company’s Class B Common Stock, owns a controlling interest in Rotana. The Company also has an option
to sell its interest in Rotana in fiscal year 2015 at the higher of the price per share based on a bona-fide sale offer or
the original subscription price plus interest.
In January 2014, the Company terminated its licensing arrangement with Rotana Media Services (“RMS”), a
subsidiary of Rotana, whereby RMS had licensed two English-language, free-to-air general entertainment channels
from the Company for distribution in the Middle East. In connection with the termination, the Company agreed to
settle all outstanding receivables at a discount and RMS agreed to provide the Company with continued satellite
transponder capacity services for two years. In addition, the Company has provided a shareholder loan to the Rotana
venture. None of the amounts between the Company and RMS in connection with the termination of the licensing
agreement is material to the Company either individually or in the aggregate.