Disney incurs $1.5-b impairment charge on Star India deal in FY24
In a regulatory filing, the company said this impairment includes non-cash cumulative foreign currency translation losses of around $800 million. It also said it will recognise a non-cash tax charge of approximately $300 million in connection with the close of the transaction between Star and Reliance Industries' (RIL) Viacom18.
«Star India's assets and liabilities are classified as held for sale in the consolidated balance sheet as of September 28, 2024, and we recorded $1.5 billion of non-cash impairment charges in 'restructuring and impairment charges' in fiscal 2024 to reflect Star India at its fair value less costs to sell,» Walt Disney said.
«The measurement of these impairment charges included non-cash cumulative foreign currency translation losses of approximately $0.8 billion. In addition, in the first quarter of fiscal 2025, we anticipate we will recognise a non-cash tax charge of approximately $0.3 billion in connection with the close of the transaction,» it added. The merger deal between RIL and Disney to combine the assets of Star India and Viacom18 closed on November 14. The merged entity JioStar, valued at $8.5 billion, will be controlled by RIL with 56% interest, while Disney will retain 37%, and Bodhi Tree Systems, an investment firm, will hold a 7% stake.
The company has been consolidating Star India's income statement and cash flow activities until the transaction closed. Post-completion of the merger deal, the company will recognise its 37% stake in the joint venture at fair value on its
