Twenty-First Century Fox 2006 Annual Report Download - page 100

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News Corporation
Notes totheConsolidated Financial Statements (CONTINUED)
NOTE 15. COMMITMENTS AND CONTINGENCIES
The Company has commitments under certain firm contractual arrangements (“firm commitments”) to make future pay-
ments. These firm commitments secure the future rights to various assets and services to be used in the normal course of
operations. The following table summarizes the Company’s material firm commitments as of June 30, 2006.
As of June 30, 2006
Payments Due by Period
Total 1 year 2-3 years 4-5 years
After 5
years
(in millions)
Contracts for Capital Expenditure
Land and buildings $ 256 $227 $29 $—$—
Plant and machinery 557 360 197 ——
Operating leases(a)
Land and buildings 3,039 232 425 363 2,019
Plant and machinery 997 202 289 163 343
Other commitments
Borrowings 9,855 42 661 188 8,964
Exchangeable securities 1,572 ——1,444 128
News America Marketing(b) 464 96 16710497
Sports programming rights(c) 12,665 2,795 3,924 3,034 2,912
Entertainment programming rights 4,210 1,521 1,536 764389
Other commitments and contractual obligations 1,095 521 489 84 1
Total commitments, borrowings and contractual obligations $34,710 $5,996 $7,717 $6,144 $14,853
The Company also has certain contractual arrangements in relation to certain investees that would require the Com-
pany to make payments or provide funding if certain circumstances occur (“contingent guarantees”). The Company does
not expect that these contingent guarantees will result in any material amounts being paid by the Company in the foresee-
able future.Thetiming of the amounts presented in the table below reflect when the maximum contingent guarantees will
expire and does not indicate that the Company expects to incur an obligation to make payments during that time frame.
As of June 30, 2006
Total
Amounts
Committed
Amount of Guarantees Expiration Per Period
1year
2–3
years
4–5
years After 5years
Contingent Guarantees (in millions)
Transponder lease(d) $321 $26 $53 $53 $189
Star Channel Japan(e) 71 71 —— —
Sky Brasil credit agreement(f) 210 —210 — —
Other 38 28 10 — —
$640 $125 $273 $53 $189
(a) The Company leases transponders, office facilities, warehouse facilities, equipment and microwave transmitters used to
carry broadcast signals. These leases, which are classifiedas operating leases, expire at certain dates through fiscal 2036.
In addition,theCompany leases various printing plants, which leases expire at various dates through fiscal 2095.
(b) News America Marketing (“NAMG”), aleading provider of in-store marketing products and services primarily to
consumer packaged goods manufacturers,enters into agreements with retailers to rent space for the display of point of
service advertising.
(c) The Company’s current contract with MLB grants the Company rights to telecast certain regular season andallpost-
season MLB games. The contract began with the 2001 MLB season and endswith the2006 MLB season. For the
duration of the term of its contract with MLB, the Company has sublicensed telecast rights to certain MLB post-season
games to The Walt Disney Company,andis entitled to be paid asublicense fee over the remaining term. The amounts
reflected on this schedule have not been reduced by the sublicense.
100 NEWS CORPORATION