Twenty-First Century Fox 2006 Annual Report Download - page 119

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News Corporation
Notes totheConsolidated Financial Statements (CONTINUED)
NOTE 22. VALUATION ANDQUALIFYING ACCOUNTS
Balance at
beginning
of year Additions
Acquisitions
and
disposals Utilization
Foreign
exchange
Balance at
end of
year
(in millions)
Fiscal 2006
Allowances for returns and doubtful accounts $(1,178) $(1,598) $(1)$1,738 $(29) $(1,068)
Deferred tax valuation allowance (1,324) (629) — 76 — (1,877)
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)
NOTE 23. ADDITIONAL FINANCIAL INFORMATION
Supplemental Cash Flow Information
2006 2005 2004
For the years ended June 30, (in millions)
Supplemental cash flows information:
Cash paid for income taxes $ 558 $455 $467
Cash paid for interest 715 671 614
Shares issued in lieu of cash dividend payments — 35 63
Sale of other investments 22 10 1
Purchase of other investments (50) (37) (92)
Supplemental information on businesses acquired:
Fair value of assets acquired 2,215 6,253 7,013
Cash acquired 26 16211
Less: Liabilities assumed 232 1,371 10
Assets exchanged —1,191 —
Minority interest acquired (39) (3,483) —
Cash paid 2,015 232 3,286
Fair value of stock consideration issued to third parties 33 7,104 3,728
Treasury stock acquired —13,548 —
Fair value of stock consideration $33$20,652 $3,728
NOTE 24. SUBSEQUENT EVENTS
In July 2006, the Company entered into a new seven-year deal with MLB to broadcast various regular season games, one
League Championship Series each year and the World Series starting with the 2007 MLB season through the 2013 MLB
season.
In July 2006, the Company and an independent third party agreed to acquire TGRT, anational, general interest broad-
cast television station in Turkey, for approximately $100 million from Ilhas Yahin Holding and other individual share-
holders. The closing of this transaction is subject tocustomary closing conditions, including Turkish regulatory.
In August 2006, the Company will sell aportion of its equity investment in Phoenix Satellite Television Holdings Lim-
ited (“Phoenix”), representing a 19.9% stake to China Mobile (Hong Kong) Group Limited for approximately $164 million
and expects to record again on the sale.TheCompany will retain a17.6% stake in Phoenix after this transaction, which
will be accountedforunder the cost method of accounting.
In August 2006, the Company announced that its FIM division entered into amulti-year search technology and serv-
ices agreement with Google, Inc. (“Google”), pursuant towhich Google will be the exclusive search and keyword targeted
advertising sales provider for a majority of FIM’s web properties. Under the terms of the agreement, Google will be obli-
ANNUAL REPORT 119