Twenty-First Century Fox 2006 Annual Report Download - page 86

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News Corporation
Notes totheConsolidated Financial Statements (CONTINUED)
NOTE 6. INVESTMENTS
As of June 30, 2006, the Company’s investments were comprised of the following:
Ownership
Percentage
As of June 30,(3)
2006 2005
(in millions)
Equity method investments:
The DIRECTV Group, Inc.(1) DBS operator principally in the U.S. 38%(4) $6,866 $6,688
Gemstar-TV Guide International, Inc.(1) U.S. print and electronic guidance
company 41% 647 608
British Sky Broadcasting Group plc(1) U.K. DBS operator 38%(5) 1,061 787
China Network Systems Taiwan cable TV operator various 239 225
Sky Network Television Ltd. New Zealand media company 44% 239 254
National Geographic Channel (US)(2) U.S. cable channel67%295320
National Geographic International(2) International cablechannel various(6) 99 133
Other equity method investments various 679 627
Cost method investments 476 626
$10,601 $10,268
(1) The market value of the Company’s investment in DIRECTV, Gemstar-TV Guide International, Inc. (“Gemstar-TV
Guide”) and British Sky Broadcasting Group plc (“BSkyB”) was $7,762 million, $615 million and$7,275 million,
respectively, as of June 30, 2006.
(2) The Company does not control this entity as it does not hold amajority on its board of directors, is unable to
dominate operating decision-making and is not a variable interest entity.
(3) The aggregate fair value of those investments whose sharesarepublicly traded was $16,622 million and$15,654
million as of June 30, 2006 and 2005, respectively.
(4) The Company’s ownership in DIRECTV increased from approximately 34% at June 30, 2005 to approximately 38% at
June 30, 2006 due to DIRECTV’s share buyback program.
(5) The Company’s ownership in BSkyB increased from approximately 37% at June 30, 2005 to approximately 38% at
June 30, 2006 due to BSkyB’s share buyback program.
(6) The Company’s ownership percentage in NGC Network International LLC and NGC Network Latin America LLC was
50% and 67%, respectively, as of June 30, 2006 and 2005.
Equity Earnings of Affiliates
The Company’s share of the income (loss) of each of its equity affiliates is as follows:
2006 2005 2004
For the years ended June 30, (in millions)
British Sky Broadcasting Group plc $369 $374$265
The DIRECTV Group, Inc.(a) 246 (186)(57)
Sky Brasil 23 49 (37)
Innova 61 27 (10)
Other DBS equity affiliates 24 5 (33)
Cable channelequity affiliates 68 46 67
Other equity affiliates 97 40 (25)
Total equity earnings (losses) of affiliates(b) $888 $355$170
(a) The Company’s share of DIRECTV’s losses for the fiscal year ended June 30, 2005 includes the Company’s share of
DIRECTV’s increased loss from its sale of PanAmSat resulting from areduction in the salesproceeds and the Company’s
portion of the SPACEWAY program impairment.
(b) The Company’s investment in several of its affiliates exceeded its equity in the underlying net assets at their
acquisition by atotal of $5.7 billion and $4.9 billion as of June 30, 2006 and 2005, respectively.
86 NEWS CORPORATION