Dispositions and Other Income/(Expense)
ESPN STAR Sports
On November 7, 2012, the Company sold its 50% equity interest in ESPN STAR Sports (ESS) to the joint venture partner of ESS for $335 million resulting in a gain of $219 million ($125 million after tax and allocation to noncontrolling interest). The gain is reported in Other income/(expense), net in the fiscal 2013 Consolidated Statement of Income.
Miramax
On December 3, 2010, the Company sold Miramax Film NY, LLC (Miramax) for $663 million. Net proceeds, which reflect closing adjustments, the settlement of related claims and obligations and Miramax’s cash balance at closing were $532 million, resulting in a pre-tax gain of $64 million, which is reported in “Other income /(expense), net” in the fiscal 2011 Consolidated Statement of Income. The book value of Miramax included $217 million of allocated goodwill that is not deductible for tax purposes. Accordingly, tax expense recorded in connection with the transaction was approximately $103 million resulting in a loss of $39 million after tax.
Other Dispositions
During fiscal years 2013, 2012 and 2011, the Company sold its interest in various businesses for total proceeds of $61 million, $15 million and $5 million, respectively and recognized pre-tax gains of $33 million, $0 million and $11 million, respectively. These gains are reported in Other income/(expense), net in the Consolidated Statements of Income.
Other income/(expense)
Other income/(expense) is as follows:
|
| | | | | | | | | | | |
| 2013 | | 2012 | | 2011 |
Celador litigation charge | $ | (321 | ) | | $ | — |
| | $ | — |
|
Gain on sale of equity interest in ESS | 219 |
| | — |
| | — |
|
Gains on sale of Miramax and other businesses | 33 |
| | — |
| | 75 |
|
Gain related to the acquisition of UTV | — |
| | 184 |
| | — |
|
Lehman recovery | — |
| | 79 |
| | — |
|
DLP debt charge | — |
| | (24 | ) | | — |
|
Other income/(expense), net | $ | (69 | ) | | $ | 239 |
| | $ | 75 |
|
