Twenty-First Century Fox 2006 Annual Report Download - page 56

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Results of Operations (CONTINUED)
Net cash provided by financing activities for the fiscal years ended June 30, 2006 and 2005 is as follows (in millions):
YearsEnded June 30, 2006 2005
Cash flows used in financing activities:
Borrowings $1,159 $1,841
Repayment of borrowings (865) (2,110)
Issuances of shares 232 88
Repurchase of shares (2,027) (535)
Dividends paid (431) (240)
Cash on deposit —275
Net cash used in financing activities $(1,932) $ (681)
Net cash used in financing activities during fiscal 2006 increased from net cash used in financing activities in fiscal
2005 primarily due to the stock repurchase program. The increase was partially offset by an increase in borrowings net of
repayments during fiscal 2006, as compared to fiscal 2005.
The total dividends declared related to fiscal 2006 results were $0.12 per share of Class ACommon Stock and $0.10 per
share of Class BCommon Stock. In August 2006, the Company declared the final dividend on fiscal 2006 results of $0.06
per shareforClass ACommon Stock and $0.05 per shareforClass BCommon Stock. This together with theinterim divi-
dend of $0.06 per shareof Class ACommon Stock and a dividend of $0.05 per shareof Class BCommon Stock constitute
the total dividend relating to fiscal 2005.
Based on the numberof shares outstanding as of June 30, 2006 the total aggregate cash dividends expected to be paid
to shareholders in fiscal 2007 is approximately $353 million.
Sources and Uses of Cash—Fiscal 2005 vs. Fiscal 2004
Net cash provided by operating activities for the fiscal years ended June 30, 2005 and 2004 is as follows (in millions):
YearsEnded June 30, 2005 2004
Net cash provided by operating activities $3,371 $2,395
The increase in net cash provided by operating activities reflects higher operating results and resulting cash collections
primarily from increased sale of home entertainment product and lower cash spent on the production of feature films at
the FilmedEntertainment segment during the fiscal year ended June 30, 2005. These increases were offset by higher sports
rights and film participation payments and higher interest due to an increase in total borrowings. The higher sports rights
payments reflects contractually scheduled increases on the Company’s national and international sports contracts, as well
as the renewal of several sports teams’ local rights agreements.
Net cash used in investing activities for the fiscal years ended June 30, 2005 and 2004 is as follows (in millions):
YearsEnded June 30, 2005 2004
Cash flows (used in) provided by investing activities:
Purchases of property, plant and equipment $(901) $(361)
Acquisitions, net of cash acquired (69) (202)
Investments in associated entities, net (106) (3,237)
Proceeds from sale of investments and non-current assets 800 869
Other (27) (91)
Net cash used in investing activities $(303) $(3,022)
Cash used in investing activities during fiscal 2005 was lower than fiscal 2004 due to the Company’s purchase of a34%
investment in DIRECTV for approximately $6.8 billion of which $3.1 billion represented the cash consideration in fiscal
2004. Property, plant and equipment acquired primarily represents cash used for the purchase of equipment that is rented
to customers at the Direct Broadcast Satellite Television segmentandcash used by the Newspaper segment in connection
with theinvestment in new printing presses as discussed below. Proceeds from the sale of non-current assets primarily
represent cash received in advance on the sale of Sky Brasil to DIRECTV and the sale of other non-strategic investments
during fiscal 2005 and cash received on the sale of SKY PerfectTV! during fiscal 2004.
56 NEWS CORPORATION