Twenty-First Century Fox 2006 Annual Report Download - page 105

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News Corporation
Notes totheConsolidated Financial Statements (CONTINUED)
Other
The Company experiences routine litigation in the normal course of its business. The Company believes that none of its
pending litigation will have amaterial adverse effect on its consolidated financial condition, future results of operations or
liquidity.
The Company’s operations are subject totaxinvarious domestic and international jurisdictions and as amatter of
course, the Company is regularly audited by federal, state and foreign tax authorities. The Company believes it has
appropriately accrued for the expected outcome of all pending tax matters and does not currently anticipate that the ulti-
mate resolution of pending tax matters will have amaterial adverse effect on its consolidated financial condition, future
results of operations or liquidity.
NOTE 16. PENSIONS AND OTHER POSTRETIREMENT BENEFITS
The Company participates in more than 70 pension and savings plans of various types in a variety of jurisdictions covering,
in aggregate, substantially all employees. The Company has alegally enforceable obligation to contribute to some plans
and is not required to contribute to others. Non-U.S. plans include both contributory and non-contributory defined benefit
plans and accumulation planscovering all eligible employees. The plans in the UnitedStates include both defined benefit
pension plans and non-contributory and contributory accumulation plans covering all eligible employees not covered by
union administered plans. The Company makes contributions in accordance with applicable laws or contract terms in each
jurisdiction in which the Company operates. The Company’s benefit obligation is calculated using several assumptions
which the Company reviews on aregular basis. In connection with a statutory change in fiscal 2005, the Company settled
$200 million of foreign defined benefit obligations which resulted in recognition of a$5 million loss.
From timeto time, plan assets are in excess/deficit of the plan’s obligations but plan assets have been sufficienttofund
all benefits in each of the years 2006, 2005 and 2004.
The Company uses aJune 30 measurement dateforallpension and postretirement benefit plans. The following table
sets forth thechange in the benefit obligation for the Company’s benefit plans:
Pension benefits
Postretirement
benefits
As of June 30,
2006 2005 2006 2005
(in millions)
Projected benefit obligation, beginning of the year $2,074 $1,901 $143 $134
Service cost 82 83 44
Interest cost 106 107 77
Benefits paid (85) (85) (6) (6)
Actuarial (gain) loss(a) (168) 242 (11) 4
Settlements —(200) — —
Foreign exchange rate changes 29 41—
Amendments, transfers and other 23 22 ——
Projected benefit obligation, end of year $2,061 $2,074 $138 $143
(a) Actuarial gains and losses primarily related to changes in the discount rateutilized in measuring plan obligations at
June 30, 2006 and June 30, 2005
ANNUAL REPORT 105