Viacom Inc. | 2013 | FY | 3


NOTE 18. DISCONTINUED OPERATIONS

 

Discontinued operations for all periods presented principally relates to Harmonix, which was sold in December 2010. Other discontinued operations activity in all years reflects adjustments related to businesses previously sold.

 

Discontinued operations activity for the year ended September 30, 2012 principally reflects the $383 million charge related to the earn-out dispute with the former shareholders of Harmonix. Activity for the year ended September 30, 2013 principally reflects interest on the dispute. The pre-tax loss from discontinued operations for the year ended September 30, 2011 is a $12 million loss from operations for the period through the date of the sale of Harmonix and a $14 million loss on disposal.

 

For tax purposes, the disposal of Harmonix and related earn-out payment generated tax benefits of approximately $250 million, of which approximately $103 million has been utilized as of September 30, 2013. The remaining benefit will be available to offset qualifying future cash taxes.

Discontinued Operations      
(in millions)Harmonix All Other Total
Year ended September 30, 2013        
         
Pre-tax earnings (losses) from discontinued operations$ (19) $ - $ (19)
Income tax benefit  7   -   7
         
Net earnings (losses) from discontinued operations$ (12) $ - $ (12)
         
Year ended September 30, 2012        
         
Pre-tax earnings (losses) from discontinued operations$ (398) $ 8 $ (390)
Income tax benefit (provision)  21   5   26
         
Net earnings (losses) from discontinued operations$ (377) $ 13 $ (364)
         
Year ended September 30, 2011        
Revenues from discontinued operations$ 49 $ - $ 49
         
Pre-tax earnings (losses) from discontinued operations$ (31) $ 8 $ (23)
Income tax benefit (provision)  15   (2)   13
         
Net earnings (losses) from discontinued operations$ (16) $ 6 $ (10)
         

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