XML 29 R9.htm IDEA: XBRL DOCUMENT v2.4.0.8
Acquisitions, Disposals and Other Transactions
3 Months Ended
Sep. 30, 2014
Business Combinations [Abstract]  
Acquisitions, Disposals and Other Transactions

NOTE 2. ACQUISITIONS, DISPOSALS AND OTHER TRANSACTIONS

Fiscal 2015

In August 2014, the Company acquired Harlequin Enterprises Limited (“Harlequin”) from Torstar Corporation for $414 million in cash, net of $19 million of cash acquired. Harlequin is a leading publisher of women’s fiction and extends HarperCollins’ global platform, particularly in Europe and Asia Pacific. Harlequin operates as a division of HarperCollins, and its results are included within the Book Publishing segment. The Company recorded net tangible assets of approximately $90 million, primarily accounts receivable, accounts payable, author advances and inventory, at their estimated fair values at the date of acquisition. In accordance with ASC 350, “Intangibles—Goodwill and Other” (“ASC 350”), the excess purchase price of approximately $320 million has been allocated as follows: $90 million primarily to publishing rights which will be amortized over approximately 8 years, $100 million to imprints which have an indefinite life and approximately $180 million representing the goodwill on the transaction which also reflects the effect of a deferred tax liability of approximately $50 million associated with the intangible assets acquired. The values assigned to the acquired assets and liabilities are based on preliminary estimates of fair value available as of the date of this filing and will be adjusted upon completion of final valuations of certain assets and liabilities. Any changes in these fair values could potentially result in an adjustment to the goodwill recorded for this transaction.

Fiscal 2014

In September 2013, the Company sold the Dow Jones Local Media Group (“LMG”), which operated eight daily and 15 weekly newspapers in seven states. The gain recognized on the sale of LMG was not significant as the carrying value of the assets held for sale on the date of sale approximated the proceeds received.