Twenty-First Century Fox 2007 Annual Report Download - page 119

NEWS CORPORATION
Notes to the Consolidated Financial Statements (continued)
Note 22 Valuation and Qualifying Accounts
Balance at
beginning
of year Additions
Acquisitions
and
disposals Utilization
Foreign
exchange
Balance at
end of
year
(in millions)
Fiscal 2007
Allowances for returns and doubtful accounts $(1,068) $(1,691) $ (7) $1,701 $(37) $(1,102)
Deferred tax valuation allowance (1,877) (3) — 318 — (1,562)
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)
Note 23 Additional Financial Information
Supplemental Cash Flow Information
2007 2006 2005
For the years ended June 30, (in millions)
Supplemental cash flow information:
Cash paid for income taxes $ (969) $ (558) $ (455)
Cash paid for interest (744) (715) (671)
Shares issued in lieu of cash dividend payments — — 35
Sale of other investments 64 22 10
Purchase of other investments (392) (50) (37)
Supplemental information on businesses acquired:
Fair value of assets acquired 1,594 2,215 6,253
Cash acquired 96 26 162
Less: Liabilities assumed 408 232 1,371
Assets exchanged — — 1,191
Minority interest acquired 127 (39) (3,483)
Cash paid 1,155 2,015 232
Fair value of stock consideration issued to third parties — 33 7,104
Treasury stock acquired — — 13,548
Fair value of stock consideration $ — $ 33 $20,652
Note 24 Subsequent Events
In July 2007, the Company acquired Photobucket, a web-based provider of photo- and video-sharing services. The initial consid-
eration of approximately $234 million was paid in cash. Further amounts of up to $50 million may be payable, contingent upon the
achievement of certain performance objectives.
On July 31, 2007, the Company entered into a definitive merger agreement (the “Merger Agreement”) with Dow Jones &
Company, Inc. (“Dow Jones”), pursuant to which the Company will acquire Dow Jones in a transaction valued at approximately
$5.6 billion. Members of the Bancroft family and related trusts owning approximately 37% of Dow Jones voting stock have agreed
to vote their shares in favor of the transaction. Under the terms of the Merger Agreement, Dow Jones Stockholders will be entitled
to receive $60 in cash for each share of Dow Jones stock they own, and up to 250 holders of record and not more than 10% of the
shares of Dow Jones may elect to have their shares of Dow Jones converted into a number of units of a newly formed subsidiary of
the Company (each unit of which will be exchangeable for one share of the Company’s Class A Common Stock in accordance with
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