Twenty-First Century Fox 2005 Annual Report Download - page 117

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NEWS CORPORATION
Notes to the Consolidated Financial Statements (continued)
> Note 22 Valuation and Qualifying Accounts
Balance at
beginning
of year Additions
Acquisitions
and
disposals Utilization
Foreign
exchange
Balance at
end of
year
(in millions)
Fiscal 2005
Allowances for returns and doubtful accounts $(1,017) $(1,309) $ (6) $1,148 $ 6 $(1,178)
Deferred tax valuation allowance (1,541) (7) — 224 — (1,324)
Fiscal 2004
Allowances for returns and doubtful accounts (924) (874) 19 790 (28) (1,017)
Deferred tax valuation allowance (463) (230) (866) 18 — (1,541)
Fiscal 2003
Allowances for returns and doubtful accounts (469) (740) (312) 604 (7) (924)
Deferred tax valuation allowance (467) ——4 — (463)
(1) Represents the expiration of NOLs (See Note 18 Income Taxes)
> Note 23 Additional Financial Information
Supplemental Cash Flow Information
2005 2004 2003
For the years ended June 30, (in millions)
Supplemental cash flows information:
Cash paid for income taxes $ 455 $ 467 $ 250
Cash paid for interest 671 614 652
Shares issued in lieu of cash dividend payments 35 63 48
Supplemental information on businesses acquired:
Fair value of assets acquired 6,253 7,013 2,340
Cash acquired 162 11 484
Less: Liabilities assumed 1,371 10 1,915
Assets exchanged 1,191 ——
Minority interest acquired (3,483) ——
Cash paid 232 3,286 909
Fair value of stock consideration issued to third parties 7,104 3,728 —
Treasury stock acquired 13,548 ——
Fair value of stock consideration $20,652 $3,728 $ —
> Note 24 Subsequent Events
In July 2005, the Company sold its entire cost investment in China Netcom Group Corporation (“China Netcom”). The Company’s 77 million
shares of China Netcom were sold for total consideration of approximately $110 million. The Company expects to recognize a gain of
approximately $50 million on this sale in the first quarter of fiscal year 2006.
In July 2005, the Company announced that it signed a definitive agreement to acquire Intermix Media, Inc. (“Intermix”) for approximately
$580 million in cash, or the equivalent of $12 per common share. In a separate transaction, the Company agreed to loan approximately $70
million to Intermix, which may be used by Intermix to exercise its option to acquire the 47% of MySpace.com that it does not already own. Both
MySpace.com and Intermix’s websites will become part of News Corporation’s newly formed Fox Interactive Media unit. This transaction is
expected to close in the second quarter of fiscal 2006 and is subject to certain customary conditions including the approval of the Intermix
common and preferred stockholders.
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