NOTE 4. INVESTMENTS

The Company’s investments were comprised of the following:


	Ownership Percentage as of September 30, 2017		As of September 30, 2017		As of June 30, 2017
			(in millions)
Equity method investments:
Foxtel^(a)		50%	$	1,610	$	1,208
Other equity method investments^(b)		various		140		133
Loan receivable from Foxtel^(a)		N/A		—		370
Available-for-sale securities^(c)		various		81		97
Cost method investments^(d)		various		213		219

Total Investments			$	2,044	$	2,027

^(a)

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$481 million ($370 million) as of June 30, 2017. During the three months ended September 30, 2017, Foxtel’s shareholders made pro-rata capital contributions to Foxtel by way of promissory notes. The Company’s share of the capital contributions was A$494 million ($388 million) as at September 28, 2017, and the Company’s investment in Foxtel increased by this amount. Foxtel utilized the shareholders’ capital contributions to repay its subordinated shareholder notes and interest accrued in the three months ended September 30, 2017. As a result, such notes were considered to be repaid as of September 30, 2017.

^(b)	Other equity method investments primarily include Elara Technologies Pte. Ltd., which operates PropTiger.com, Makaan.com and Housing.com.

^(c)	Available-for-sale securities primarily include the Company’s investment in HT&E Limited (formerly APN News and Media Limited), which operates a portfolio of Australian radio and outdoor media assets.

^(d)	Cost method investments primarily include the Company’s investment in SEEKAsia Limited and certain investments in China.

The Company measures the fair market values of available-for-sale securities as Level 1 financial instruments under Accounting Standards Codification (“ASC”) 820, “Fair Value Measurement,” as such investments have quoted prices in active markets. The cost basis, unrealized gains, unrealized losses and fair market value of available-for-sale securities are set forth below:


	As of September 30, 2017			As of June 30, 2017
	(in millions)
Cost basis of available-for-sale securities	$	100		$	99
Accumulated gross unrealized gain		—			—
Accumulated gross unrealized loss^(a)		(19	)		(2	)

Fair value of available-for-sale securities	$	81		$	97

Net deferred tax asset	$	5		$	1

^(a)	The fair values of the Company’s available-for-sale securities in an unrealized loss position have been less than their cost basis for a period of less than twelve months.

Equity Losses of Affiliates

The Company’s equity losses of affiliates were as follows:


	For the three months ended September 30,
	2017			2016
	(in millions)
Foxtel^(a)	$	(5	)	$	(11	)
Other equity affiliates, net		(5	)		(4	)

Total Equity losses of affiliates	$	(10	)	$	(15	)

^(a)

In accordance with ASC 350, “Intangibles—Goodwill and Other”, the Company amortized $17 million and $19 million, respectively, 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, 2017 and 2016. Such amortization is reflected in Equity losses of affiliates in the Statements of Operations.

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


	For the three months ended September 30,
	2017		2016
	(in millions)
Revenues	$	633	$	618
Operating income^(a)		63		91
Net income		24		16

^(a)	Includes Depreciation and amortization of $59 million and $52 million for the three months ended September 30, 2017 and 2016, respectively. Operating income before depreciation and amortization was $122 million and $143 million for the three months ended September 30, 2017 and 2016, respectively.