Twenty-First Century Fox 2014 Annual Report Download - page 77

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71
Fixed and variable rate debts are impacted differently by changes in interest rates. A change in the interest rate or
yield of fixed rate debt will only impact the fair market value of such debt, while a change in the interest rate of
variable debt will impact interest expense, as well as the amount of cash required to service such debt. As of June 30,
2014, substantially all of the Company's financial instruments with exposure to interest rate risk were denominated in
U.S. Dollars. Information on financial instruments with exposure to interest rate risk is presented below:
As of June 30,
2014 2013
(in millions)
Fair Value 
Total fair value of financial instruments with exposure to interest rate risk(a):
liability ................................................................................................................. $ (22,698 ) $ (18,756)

Sensitivity Analysis 
Potential change in fair values resulting from a 10% adverse change in quoted
interest rates: loss .................................................................................................. $ (859 ) $ (865)
(a)The change in fair value of the Company’s financial instruments with exposure to interest rate risk is primarily
due to the acquisition of the majority interest in the YES Network.
Stock Prices
The Company has common stock investments in several publicly traded companies that are subject to market
price volatility. These investments principally represent the Company’s equity method affiliates. Information on the
Company’s investments with exposure to stock price risk is presented below:
As of June 30,
2014 2013
(in millions)
Fair Value
Total fair value of common stock investments(a) ..................................................... $ 9,580 $ 7,831
Sensitivity Analysis
Potential change in fair values resulting from a 10% adverse change in quoted
market prices: loss(b) .............................................................................................. $ (958 ) $ (783)
(a)The change in fair value of the Company’s financial instruments with exposure to stock price risk is primarily
due to the appreciation in market prices.
(b)A hypothetical decrease would not result in a material before tax decrease in comprehensive income, as any
changes in fair value of the Company’s equity method affiliates are not recognized unless deemed other-than-
temporary.
Credit Risk
Cash and cash equivalents are maintained with several financial institutions. Deposits held with banks may
exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand
and are maintained with financial institutions of reputable credit and, therefore, bear minimal credit risk.
The Company’s receivables did not represent significant concentrations of credit risk at June 30, 2014 or 2013
due to the wide variety of customers, markets and geographic areas to which the Company’s products and services
are sold.
The Company monitors its positions with, and the credit quality of, the financial institutions which are
counterparties to its financial instruments. The Company is exposed to credit loss in the event of nonperformance by
the counterparties to the agreements. At June 30, 2014, the Company did not anticipate nonperformance by any of the
counterparties.