Investments (Tables)

3 Months Ended

Sep. 30, 2013

Schedule of Earnings of Equity Affiliates

The Company’s share of the earnings of its equity affiliates was as follows:

	For the three months ended September 30,
	2013		2012
	(in millions)
Foxtel(a)	$	13	$	5
Pay television and cable network programming equity affiliates(b)		—		22
Other equity affiliates		—		(1	)
Total Equity earnings of affiliates	$	13	$	26

^(a)  The Company owned 25% of Foxtel through November 2012. In November 2012, the Company increased its ownership in Foxtel to 50% as a result of the CMH acquisition. In accordance with ASC 350, the Company amortized $16 million related to excess cost over the Company’s proportionate share of its investment’s underlying net assets allocated to finite-lived intangible assets during the three months ended September 30, 2013. Such amortization is reflected in Equity earnings of affiliates in the Statements of Operations.

^(b)  Includes equity earnings of FOX SPORTS Australia and SKY Network Television Ltd. The Company acquired the remaining interest in FOX SPORTS Australia in November 2012 as a result of the CMH acquisition and sold its investment in SKY Network Television Ltd. in March 2013. The results of FOX SPORTS Australia have been included within the Cable Network Programming segment in the Company’s consolidated results of operations since November 2012.

Schedule of Investments

The Company’s investments were comprised of the following:

	Ownership Percentage as of September 30, 2013		As of September 30, 2013		As of June 30, 2013
			(in millions)
Equity method investments:
Foxtel		50%	$	1,938	$	1,875
Other equity method investments		various		35		35
Loan receivable from Foxtel(a)		N/A		420		412
Other investments		various		178		177
Total Investments			$	2,571	$	2,499

^(a)  In May 2012, Foxtel purchased Austar United Communications Ltd. The transaction was funded by Foxtel bank debt and Foxtel’s shareholders made pro-rata capital contributions in the form of subordinated shareholder notes based on their respective ownership interests. The Company’s share of the subordinated shareholder notes was approximately A$451 million ($420 million and $412 million as of September 30, 2013 and June 30, 2013, respectively). The subordinated shareholder note can be repaid beginning in July 2022 provided that Foxtel’s senior debt has been repaid. The subordinated shareholder note has a maturity date of July 15, 2027, with interest of 12% payable on June 30 each year and at maturity. Upon maturity, the principal advanced will be repayable.

FOX SPORTS Australia [Member]

Schedule of Earnings of Equity Affiliates

Summarized financial information for the three months ended September 30, 2012 for FOX SPORTS Australia was as follows:

	For the three months ended September 30, 2012
	(in millions)
Revenues	$	132
Operating income(a)		39
Net income		25

^(a)  Includes Depreciation and amortization of $3 million. Operating income before depreciation and amortization was $42 million.

Foxtel [Member]

Schedule of Earnings of Equity Affiliates

Summarized financial information, presented in accordance with U.S. GAAP, for Foxtel was as follows:

	For the three months ended September 30,
	2013		2012
	(in millions)
Revenues	$	718	$	805
Operating income(a)		135		100
Net income		58		20

^(a)  Includes Depreciation and amortization of $86 million and $116 million for the three months ended September 30, 2013 and 2012, respectively. Operating income before depreciation and amortization was $221 million and $216 million for the three months ended September 30, 2013 and 2012, respectively.