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TWENTY-FIRST CENTURY FOX, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
92
for the fiscal years ended June 30, 2013 and 2012, respectively. Subsequent to becoming a consolidated subsidiary,
the derivative instrument was effectively settled as a pre-existing relationship under the provisions of ASC 805-10-
25-21 “Business Combinations—Determining What Is Part of the Business Combination Transaction” with the
carrying amount of the asset for the derivative component written off as a settlement loss which was included in
Other, net in the Consolidated Statement of Operations for the fiscal year ended June 30, 2013.
Other
In May 2012, the Company renewed its existing FOX affiliation agreement with a major FOX affiliate group
(“Network Affiliate”). As part of the transaction, the Company received cash consideration of $50 million and the
Network Affiliate had an option to buy the Company’s Baltimore station. Network Affiliate exercised its option to
purchase the Baltimore television station and the Company recognized a loss on the transaction of $92 million which
was included in Other, net in the Consolidated Statement of Operations for the fiscal year ended June 30, 2013. The
Company is amortizing the $50 million received from the Network Affiliate over the term of the affiliation
agreement.
In fiscal 2013, the Company increased its interest in Asianet Communications Limited (“Asianet
Communications”), an entity in India that broadcasts and operates the Malayalam language channels Asianet and
Asianet Plus and the Kannada language channel Suvarna television, to 87% from the 75% it owned at June 30, 2012
for approximately $160 million in cash. In the fourth quarter of fiscal 2014, the Company acquired the 13% interest
it did not already own in Asianet Communications for approximately $50 million in cash. As a result of this
transaction, the Company now owns 100% of Asianet Communications. These transactions were accounted for as
the purchase of subsidiary shares from noncontrolling interests.
Fiscal 2012
Acquisitions
In December 2011, the Company acquired the 67% equity interest it did not already own in Fox Pan American
Sports LLC, doing business as Fox Sports Latin America (“FSLA”), for approximately $400 million. FSLA, an
international sports programming and production entity, which owns and operates Fox Sports Latin America
network, a Spanish and Portuguese-language sports network distributed to subscribers in certain Caribbean and
Central and South American nations, and partially through its ownership in FSLA, a 53% interest in Fox Deportes, a
Spanish-language sports programming service distributed in the U.S. As a result of this transaction, the Company
now owns 100% of FSLA and Fox Deportes. Accordingly, the Company changed its accounting for FSLA from an
equity method investment to a consolidated subsidiary beginning in December 2011. The acquisition of FSLA
supports the Company’s strategic priority of increasing its brand presence and reach in key international markets.
The carrying amount of the Company’s previously held equity interest in FSLA was revalued to fair value at
the acquisition date, resulting in a non-taxable gain of $158 million which was included in Other, net in the
Consolidated Statement of Operations for the fiscal year ended June 30, 2012. The aggregate excess purchase price
has been allocated as follows: approximately $280 million to finite-lived intangible assets with useful lives ranging
from 5 to 15 years and approximately $320 million representing the goodwill on the transaction. The goodwill
reflects the synergies and increased market penetration expected from combining the operations of FSLA and the
Company.
Dispositions
In July 2011, the Company sold its majority interest in its outdoor advertising businesses in Russia and
Romania (“News Outdoor Russia”) for cash consideration of approximately $360 million. In connection with the
sale, the Company repaid $32 million of News Outdoor Russia debt. The Company recorded a gain related to the
sale of this business, which was included in Other, net in the Consolidated Statement of Operations for the fiscal
year ended June 30, 2012. The gain on the sale and the net income, assets, liabilities and cash flow attributable to the
News Outdoor Russia operations were not material to the Company in any of the periods presented and, accordingly,
have not been presented separately.