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Investments - Schedule of Investments (Detail)
AUD in Millions, $ in Millions
Dec. 31, 2016
USD ($)
Dec. 31, 2016
AUD
Jun. 30, 2016
USD ($)
Jun. 30, 2016
AUD
Schedule of Investments [Line Items]        
Available-for-sale securities [1] $ 126   $ 189  
Cost method investments [2] 214   205  
Total Investments 1,932   2,270  
Foxtel [Member]        
Schedule of Investments [Line Items]        
Equity method investment carrying value [3] 1,162   1,437  
Loan receivable from Foxtel $ 325 [4] AUD 451 338 [4] AUD 451
Equity method investment, ownership percentage [3] 50.00% 50.00%    
Other Equity Method Investments [Member]        
Schedule of Investments [Line Items]        
Equity method investment carrying value $ 105   $ 101  
[1] Available-for-sale securities primarily include the Company's investments in APN and The Rubicon Project, Inc. During fiscal 2016, the Company participated in an entitlement offer to maintain its 14.99% interest in APN for $20 million. During the three months ended December 31, 2016, the Company participated in an entitlement offer for $21 million and its interest was diluted from 14.99% to 13.23%. APN operates a portfolio of Australian radio and outdoor media assets.
[2] Cost method investments primarily include the Company's investment in SEEKAsia Limited and certain investments in China.
[3] (a) During the three months ended December 31, 2016, the Company recognized a $227 million non-cash write-down of the carrying value of its investment in Foxtel to fair value. As a result of Foxtel's performance in the first half of fiscal 2017 and the competitive operating environment in the Australian pay-TV market, the Company revised its future outlook for the business, which resulted in a reduction in expected future cash flows. Based on the revised projections, the Company determined that the fair value of its investment in Foxtel declined below its $1.4 billion carrying value, which includes the gain recognized in connection with the acquisition of Consolidated Media Holdings Ltd. ("CMH"). Significant unobservable inputs utilized in the income approach valuation method were a discount rate of 9.0% and a long-term growth rate of 2.5%. Significant unobservable inputs utilized in the market approach valuation methods were EBITDA multiples from guideline public companies operating in similar industries and a control premium of 10%. In November 2012, the Company acquired CMH, a media investment company that operates in Australia. CMH owned a 25% interest in Foxtel through its 50% interest in FOX SPORTS Australia. The CMH acquisition was accounted for in accordance with ASC 805 "Business Combinations" which requires an acquirer to remeasure its previously held equity interest in an acquiree at its acquisition date fair value and recognize the resulting gain or loss in earnings. The carrying amount of the Company's previously held equity interest in FOX SPORTS Australia, through which the Company held its indirect 25% interest in Foxtel, was revalued to fair value as of the acquisition date, resulting in a step-up and non-cash gain of approximately $1.3 billion for the fiscal year ended June 30, 2013, of which $0.9 billion related to Foxtel. Following the write-down, the carrying value of the Foxtel investment was approximately $1.2 billion at December 31, 2016. Any significant shortfall of the expected future cash flows of Foxtel could result in additional write-downs for which non-cash charges would be required.
[4] In May 2012, Foxtel purchased Austar United Communications Ltd. The transaction was funded by Foxtel bank debt and pro rata capital contributions made by Foxtel shareholders 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 ($325 million and $338 million as of December 31, 2016 and June 30, 2016, respectively). The subordinated shareholder notes can be repaid beginning in July 2022 provided that Foxtel's senior debt has been repaid. The subordinated shareholder notes have a maturity date of July 15, 2027, with interest payable on June 30 each year and at maturity. On June 22, 2016, Foxtel and Foxtel's shareholders agreed to modify the terms of the loan receivable to reduce the interest rate from 12% to 10.5%, to more closely align with current market rates. Upon maturity, the principal advanced will be repayable.