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Investments - Schedule of Investments (Detail)
AUD in Millions, $ in Millions
Mar. 31, 2017
USD ($)
Mar. 31, 2017
AUD
Jun. 30, 2016
USD ($)
Jun. 30, 2016
AUD
Schedule of Investments [Line Items]        
Available-for-sale securities [1] $ 100   $ 189  
Cost method investments [2] 215   205  
Total Investments 2,010   2,270  
Foxtel [Member]        
Schedule of Investments [Line Items]        
Equity method investment carrying value [3] 1,205   1,437  
Loan receivable from Foxtel $ 344 [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 [5] $ 146   $ 101  
[1] Available-for-sale securities primarily include the Company's investment in APN. During fiscal 2016, the Company participated in an entitlement offer to maintain its 14.99% interest in APN for $20 million. During the second quarter of fiscal 2017, 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] During the second quarter of fiscal 2017, 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%. 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 ($344 million and $338 million as of March 31, 2017 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.
[5] In January 2017, REA Group acquired an approximately 15% interest in Elara Technologies Pte. Ltd., a leading online real estate services provider in India ("Elara"), for $50 million. Elara operates PropTiger.com, Makaan.com and the recently acquired Housing.com, and the investment further strengthens REA Group's presence in Asia. Following the completion of the investment and certain related transactions, including Elara's acquisition of Housing.com, News Corporation's pre-existing interest in Elara decreased to approximately 23%.