Twenty-First Century Fox 2014 Annual Report Download - page 45

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
This document contains statements that constitute “forward-looking statements” within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Section 27A of the
Securities Act of 1933, as amended. The words “expect,” “estimate,” “anticipate,” “predict,” “believe” and
similar expressions and variations thereof are intended to identify forward-looking statements. These statements
appear in a number of places in this document and include statements regarding the intent, belief or current
expectations of Twenty-First Century Fox, Inc., its directors or its officers with respect to, among other things,
trends affecting Twenty-First Century Fox, Inc.’s financial condition or results of operations. The readers of this
document are cautioned that any forward-looking statements are not guarantees of future performance and involve
risks and uncertainties. More information regarding these risks, uncertainties and other factors is set forth under
the heading “Risk Factors” in Item 1A of this Annual Report on Form 10-K (the “Annual Report”). Twenty-First
Century Fox, Inc. does not ordinarily make projections of its future operating results and undertakes no obligation
(and expressly disclaims any obligation) to publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as required by law. Readers should carefully review
this document and the other documents filed by Twenty-First Century Fox, Inc. with the Securities and Exchange
Commission (the “SEC”). This section should be read together with the audited Consolidated Financial Statements
of Twenty-First Century Fox, Inc. and related notes set forth elsewhere in this Annual Report.
INTRODUCTION
On June 28, 2013, Twenty-First Century Fox, Inc. and its subsidiaries (formerly known as News Corporation)
(together, “Twenty-First Century Fox” or the “Company”) completed the separation of its business into two
independent publicly traded companies (the “Separation”) by distributing to its stockholders all of the outstanding
shares of the new News Corporation (“News Corp”). The Company retained its interests in a global portfolio of
media and entertainment assets spanning six continents. News Corp holds the Company’s former businesses
including newspapers, information services and integrated marketing services, digital real estate services, book
publishing, digital education and sports programming and pay-TV distribution in Australia. The Company
completed the Separation by distributing to its stockholders one share of News Corp Class A common stock for
every four shares of the Company’s Class A common stock held on June 21, 2013, and one share of News Corp
Class B common stock for every four shares of the Company’s Class B common stock held on June 21, 2013. The
Company’s stockholders received cash in lieu of fractional shares. Following the Separation, the Company does not
beneficially own any shares of News Corp Class A common stock or News Corp Class B common stock.
Effective June 28, 2013, the Separation qualified for discontinued operations treatment in accordance with the
requirements of Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”)
205-20, “Discontinued Operations” (“ASC 205-20”), and accordingly the Company deconsolidated News Corp’s
balance sheet as of June 30, 2013, and presented its results for the fiscal year ended June 30, (“fiscal”) 2013 and
fiscal 2012 as discontinued operations on the Consolidated Statements of Operations and Cash Flows. The Company
has reflected the Separation as a distribution on the Consolidated Statement of Equity as of June 30, 2013. The
footnotes to the financial statements have also been revised accordingly for fiscal 2013 and 2012. Management’s
discussion and analysis of financial condition and results of operations describes the Company giving effect to the
Separation, except where stated otherwise.
Management’s discussion and analysis of financial condition and results of operations is intended to help
provide an understanding of the Company’s financial condition, changes in financial condition and results of
operations. This discussion is organized as follows:
xOverview of the Company’s Business - This section provides a general description of the Company’s
businesses, as well as developments that occurred either during fiscal 2014 or early fiscal year ending
June 30, 2015 that the Company believes are important in understanding its results of operations and
financial condition or to disclose known trends.