Twenty-First Century Fox 2007 Annual Report Download - page 129
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NEWS CORPORATION
Notes to the Consolidated Financial Statements (continued)
Notes to Supplemental Guarantor Information
(1) Investments in the Company’s subsidiaries, for purposes of the supplemental consolidating presentation, are accounted for by
their parent companies under the equity method of accounting whereby earnings of subsidiaries are reflected in the parent compa-
ny’s investment account and earnings.
(2) The guarantees of NAI’s senior public indebtedness constitute senior indebtedness of the Company, and rank pari passu with all
present and future senior indebtedness of the Company. Because the factual basis underlying the obligations created pursuant to
the various facilities and other obligations constituting senior indebtedness of the Company differ, it is not possible to predict how a
court in bankruptcy would accord priorities among the obligations of the Company.
128