Twenty-First Century Fox 2006 Annual Report Download - page 88

Download and view the complete annual report

Please find page 88 of the 2006 Twenty-First Century Fox annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 134

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134

News Corporation
Notes totheConsolidated Financial Statements (CONTINUED)
In determining if the decline in Gemstar-TV Guide’s market value was other than temporary, the Company considered
anumber of factors: (1) the financial condition, operating performance and near term prospects of the investee; (2) the
reason for the decline in fair value, be it general market conditions, industry specific or investee specific; (3) analysts’ rat-
ings and estimates of 12 month share price targets for the investee; (4) the length of the time and the extent to which the
investee’s market value has been less than the carrying value of the Company’s investment; (5) the Company’s intent and
ability to hold the investment for aperiod of time sufficient toallow for arecovery in fair value and (6) the recent volatility
of Gemstar-TV Guide’s share price.Upon review, the Company has determined that at this time the impairment in the
value of its investment in Gemstar-TV Guide is temporary.
Due to the volatility of Gemstar-TV Guide’s common stock, the Company will continue to monitor this investment for
possible future impairment.
Summarized financial information
Summarized financial information for significant equity affiliates, determined in accordance with Regulation S-X of the
Securities Exchange Act of 1934, as amended, accounted for under the equity method is as follows:
2006 2005 2004
For the years ended June 30, (in millions)
Revenues $21,109 $19,734 $17,527
Operating income (loss) 3,068 (221) 525
Income (loss) from continuing operations 1,889 (67) 172
Net income (loss) 1,889 (119)(737)
2006 2005
As of June 30, (in millions)
Current assets$7,835 $8,012
Non-current assets13,613 12,550
Current liabilities 5,268 4,447
Non-current liabilities 8,770 7,016
Equity affiliates of the Company have balance sheet dates consistent with theCompany with the following exceptions:
Investment Year End
Gemstar-TV Guide International, Inc. December 31
National Geographic Channel (US) December 31
National Geographic International December 31
The DIRECTV Group, Inc. December 31
NOTE 7. PROPERTY, PLANT AND EQUIPMENT
Useful
Lives
As of June 30,
2006 2005
(in millions)
Land $288$273
Buildings and leaseholds 3to50 years 2,451 2,264
Machinery and equipment 2to 30 years 5,361 4,900
8,100 7,437
Less accumulated depreciation andamortization (4,029) (3,459)
4,071 3,978
Construction in progress 684 368
Total property, plant and equipment, net $4,755 $4,346
Depreciation andamortization related to property, plant and equipment was $676 million, $608 million and$539 million
for the years ended June 30, 2006, 2005, and 2004, respectively. This includes depreciation of set-top boxes at the Direct
Broadcast Satellite Television segmentof$100 million, $100 million and$93million for the years ended June 30, 2006,
2005 and 2004, respectively.
88 NEWS CORPORATION