Twenty-First Century Fox 2014 Annual Report Download - page 55

49
Other, net –
For the years ended June 30,
2013  2012
(in millions)
Gain on Sky Deutschland transaction(a) ............................................................................ $ 2,069 $ -
Gain on sale of investment in NDS(b) ................................................................................ 1,446 -
Gain on Fox Sports Asia transaction(a) .............................................................................. 174 -
Gain on sale of investment in Phoenix(b) .......................................................................... 81 -
Loss on sale of Baltimore station(a) ................................................................................... (92 ) -
Gain on FSLA transaction(a) ............................................................................................. -  158
Restructuring(c) .................................................................................................................. (13 ) (41)
Change in fair value of securities(a) ................................................................................... 86 (61)
Investment impairment(b) .................................................................................................. (20 ) (34)
BSkyB termination fee(b)(d)................................................................................................ - (63)
Gain on sale of investment in Hathway Cable(b) ............................................................... - 23
Other ................................................................................................................................. 16 43
Other, net .......................................................................................................................... $ 3,747 $ 25
(a) See Note 3 – Acquisitions, Disposals and Other Transactions to the accompanying Consolidated Financial
Statements of Twenty-First Century Fox.
(b) See Note 7 – Investments to the accompanying Consolidated Financial Statements of Twenty-First Century
Fox.
(c) See Note 5 – Restructuring Programs to the accompanying Consolidated Financial Statements of Twenty-First
Century Fox.
(d) See Note 23 – Additional Financial Information to the accompanying Consolidated Financial Statements of
Twenty-First Century Fox.
Income tax expense – The Company’s tax provision and related effective tax rate of 19% for fiscal 2013 was
lower than the statutory rate of 35% primarily due to a 7% rate reduction as a result of adjustments to valuation
allowances for the utilization of foreign tax credit carryforwards in connection with the NDS transaction and the
consolidation of Sky Deutschland, which, in accordance with ASC 740, reduced income tax expense due to the
removal of a historical valuation allowance. In addition, there was a 4% rate reduction resulting from the sale of
interests in subsidiaries and the non-taxable gain on the consolidation of Fox Sports Asia, as well as a 2% rate
reduction from the Company’s foreign operations due to tax credits and deductions arising from a corporate
restructuring. The effect of foreign operations was lower than in fiscal 2012 primarily as a result of the substantial
increase in Income from continuing operations.
The Company’s tax provision and related effective tax rate of 25% for fiscal 2012 was lower than the U.S.
statutory rate of 35% primarily due to a 6% rate reduction from the Company’s foreign operations due to tax credits
and deductions arising from a corporate restructuring as well as a 4% rate reduction resulting from the sale of
interests in subsidiaries and the non-taxable gain on the consolidation of FSLA.
Income (loss) from discontinued operations, net of tax – For fiscal 2013, the Company recorded Income
from discontinued operations of $277 million as compared to a loss of $1,997 million in fiscal 2012. This
improvement was due to lower restructuring and impairment charges and a non-taxable gain from News Corp’s
revaluation of its previously held equity interest in Foxtel, as a result of the acquisition of Consolidated Media
Holdings Ltd. These improvements were partially offset by transaction costs related to the Separation.
Net income – Net income increased for fiscal 2013, as compared to fiscal 2012, primarily due to the gain on
the Sky Deutschland transaction as well as the gains on the sale of the Company’s investment in NDS and improved
results from continuing and discontinued operations.
Net income attributable to noncontrolling interests – Net income attributable to noncontrolling interests
increased for fiscal 2013, as compared to fiscal 2012, primarily due to higher results at the Company’s majority-