Twenty-First Century Fox 2014 Annual Report Download - page 53

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Income from discontinued operations, net of tax – For fiscal 2014, the Company recorded Income from
discontinued operations of $729 million as compared to income of $277 million in fiscal 2013. The change was
primarily due to the absence of income from discontinued operations as a result of the Separation in fiscal 2013 and
the recognition in fiscal 2014 of a tax refund paid to News Corp and then transferred to the Company in accordance
with the tax sharing and indemnification agreement. A subsidiary of News Corp, prior to the Separation, had filed
for refunds to claim certain losses in a foreign jurisdiction. During fiscal 2014, the foreign jurisdiction notified News
Corp that it had accepted its claims and refunded the taxes plus interest to News Corp.
Net income – Net income decreased for fiscal 2014, as compared to fiscal 2013, primarily due to the absence
of the gain recorded upon the consolidation of Sky Deutschland in fiscal 2013 and the absence of the gain related to
the sale of NDS, partially offset by an increase in Total Segment OIBDA (as defined in “Segment Analysis”).
Net income attributable to noncontrolling interests – Net income attributable to noncontrolling interests
decreased for fiscal 2014, as compared to fiscal 2013, primarily due to the inclusion of the noncontrolling interests’
share of Sky Deutschland’s net losses on its consolidation.
Results of Operations—Fiscal 2013 versus Fiscal 2012
The following table sets forth the Company’s operating results for fiscal 2013, as compared to fiscal 2012.
For the years ended June 30,
2013
2012 Change % Change
(in millions, except %)
Revenues:
Affiliate fees ................................................................ $ 7,678 $ 6,331 $ 1,347 21 %
Subscription ................................................................. 4,074 3,408 666 20 %
Advertising .................................................................. 7,634 7,553 81 1 %
Content ........................................................................ 7,871 7,260 611 8 %
Other ............................................................................ 418 499 (81 ) (16) %
Total revenues ................................................................... 27,675 25,051 2,624 10 %
Operating expenses ........................................................... (17,496) (15,663) (1,833 ) 12 %
Selling, general and administrative ................................... (4,007) (3,719) (288 ) 8 %
Depreciation and amortization .......................................... (797) (711) (86 ) 12 %
Impairment charges .......................................................... (35) (201) 166 (83) %
Equity earnings of affiliates .............................................. 655 636 19 3 %
Interest expense, net .......................................................... (1,063) (1,032) (31 ) 3 %
Interest income .................................................................. 57 77 (20 ) (26)%
Other, net .......................................................................... 3,747 25 3,722 **
Income from continuing operations before income
tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,736 4,463 4,273 96 %
Income tax expense ........................................................... (1,690) (1,094) (596 ) 54 %
Income from continuing operations .............................. 7,046 3,369 3,677 **
Income (loss) from discontinued operations, net of tax .... 277 (1,997) 2,274 **
N
et income ........................................................................ 7,323 1,372 5,951 **
Less: Net income attributable to noncontrolling
interests .................................................................... (226) (193) (33 ) 17 %
Net income attributable to Twenty-First Century
Fox stockholders .......................................................... $ 7,097 $ 1,179 $ 5,918 **
** not meaningful
Overview – The Company’s revenues increased 10% for fiscal 2013, as compared to fiscal 2012, as a result of
higher affiliate fee, subscription and content revenues. The increase in affiliate fee revenues was attributable to