Twenty-First Century Fox 2007 Annual Report Download - page 116

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NEWS CORPORATION
Notes to the Consolidated Financial Statements (continued)
2007 2006
As of June 30, (in millions)
Long-Lived Assets:
United States and Canada $35,289 $35,097
Europe 4,949 3,582
Australasia and Other 6,200 4,847
Total long-lived assets $46,438 $43,526
There is no material reliance on any single customer. Revenues are attributed to countries based on location of customers.
Australasia comprises Australia, Asia, Fiji, Papua New Guinea and New Zealand.
Note 20 Earnings Per Share
Earnings per share (“EPS”) is computed individually for the Class A Common Stock and Class B Common Stock. Net income is appor-
tioned to both Class A stockholders and Class B stockholders on the ratio of 1.2 to 1, respectively, in accordance with the rights of
the stockholders as described in the Company’s Restated Certificate of Incorporation. In order to give effect to this apportionment
when determining EPS, the weighted average Class A Common Stock is increased by 20% (the “Adjusted Class”) and is then com-
pared to the sum of the weighted average Class B Common Stock and the weighted average Adjusted Class. The resulting percent-
age is then applied to the Net income to determine the apportionment for the Class A stockholders with the balance attributable to
the Class B stockholders.
EPS has been presented in the two-class presentation, as the Class B Common Stock participate in dividends with the Class A
Common Stock.
The following tables set forth the computation of basic and diluted earnings per share under SFAS No. 128, “Earnings per
Share”:
2007 2006 2005
For the years ended June 30, (in millions)
Income from continuing operations $3,426 $ 2,812 $2,128
Perpetual preference dividends(a) — — (10)
Income from continuing operations available to shareholders—basic 3,426 2,812 2,118
Interest on convertible debt(b) ——20
Other (5) (1) —
Income from continuing operations available to shareholders—diluted $3,421 $ 2,811 $2,138
Gain on disposition of discontinued operations $ — $ 515 $ —
Cumulative effect of accounting change, net of tax $ — $(1,013) $ —
Net income $3,426 $ 2,314 $2,128
Perpetual preference dividends(a) — — (10)
Net income available to shareholders—basic 3,426 2,314 2,118
Interest on convertible debt(b) ——20
Other (5) (1) —
Net income available to shareholders—diluted $3,421 $ 2,313 $2,138
(a) In November 2004, the Company redeemed the adjustable rate cumulative perpetual preference shares and the guaranteed
8.625% perpetual preference shares for $345 million at par.
(b) In February 2006, the Company redeemed 92% of the LYONs for cash at the specified redemption amount of $594.25 per
LYON. (see Note 9—Borrowings)
NEWS CORPORATION 2007 Annual Report 115