WALT DISNEY CO/ | 2013 | FY | 3


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


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