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Investments (Tables)
 6 Months Ended
Dec. 31, 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
December 31,		      For the six months ended
December 31,		  
     2013      2012      2013      2012  
     (in millions)  

Foxtel(a)

    $ 17       $ 8       $ 30       $ 13   

Pay television and cable network programming equity affiliates(b)

      —           20         —           42   

Other equity affiliates

      —           —           —           (1 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Equity earnings of affiliates

    $ 17       $ 28       $ 30       $ 54   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(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 $15 million and $31 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 and six months ended December 31, 2013, respectively, and $6 million in both the corresponding periods of fiscal 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
December 31, 2013		      As of
December 31, 2013		      As of
June 30, 2013		  
            (in millions)  

Equity method investments:

         

Foxtel(a)

      50%       $ 1,819       $ 1,875   

Other equity method investments

      various         34         35   

Loan receivable from Foxtel(b)

      N/A         400         412   

Other investments

      various         178         177   
     

 

 

     

 

 

  

Total Investments

       $ 2,431       $ 2,499   
     

 

 

     

 

 

  

 

(a) 

For the six months ended December 31, 2013 and 2012, the Company received dividends from Foxtel of $46 million and $57 million, respectively.
(b) 

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 ($400 million and $412 million as of December 31, 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 FOX SPORTS Australia for the periods October 1, 2012 through date of acquisition and July 1, 2012 through the date of acquisition was as follows (in millions):

 

     For the period October 1
through November 19, 2012		      For the period July 1
through November 19, 2012		  
     (in millions)  

Revenues

    $ 60       $ 192   

Operating income(a)

      24         63   

Net income

      21         46   

 

(a) 

Includes Depreciation and amortization of $1 million for the period October 2012 through the date of acquisition and $4 million for the period July 2012 through the date of acquisition. Operating income before depreciation and amortization was $25 million for the period October 2012 through the date of acquisition and $67 million for the period July 2012 through the date of acquisition.
Foxtel [Member]
  
Schedule of Earnings of Equity Affiliates

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

 

     For the six months ended December 31,  
     2013      2012  
     (in millions)  

Revenues

    $ 1,457       $ 1,605   

Operating income(a)

      260         214   

Net income

      122         60   

 

(a) 

Includes Depreciation and amortization of $171 million and $229 million for the six months ended December 31, 2013 and 2012, respectively. Operating income before depreciation and amortization was $431 million and $443 million for the six months ended December 31, 2013 and 2012, respectively.