Twenty-First Century Fox 2007 Annual Report Download - page 86

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NEWS CORPORATION
Notes to the Consolidated Financial Statements (continued)
The Sky Multi-Country Partners transaction closed during fiscal 2005 and the Company recognized a pre-tax loss of approx-
imately $55 million on this transaction.
In February 2006, the Company completed its sale of its investment in Innova, a Mexican DTH platform, to DIRECTV for
$285 million. As a result of this transaction, the Company recognized a pre-tax gain of approximately $206 million, in the third
quarter of fiscal 2006. The Company deferred a portion of its total gain on sale due to its indirect retained interest through the
Company’s ownership of DIRECTV. Upon the closing of the Innova transaction, the Company was released from both its Innova
transponder lease guarantee and its guarantee under Innova’s credit agreement.
In August 2006, the Company completed the sale of its investment in Sky Brasil, a Brazilian DTH platform, to DIRECTV for
approximately $300 million in cash which was received in fiscal 2005. The Company recognized a pre-tax gain of approximately
$261 million, which is included in Other, net in the consolidated statement of operations for the fiscal year ended June 30,
2007. The Company deferred a portion of its total gain on sale due to its indirect retained interest through the Company’s
ownership of DIRECTV. As a result of the transaction, the Company was released from its Sky Brasil transponder lease guarantee
and was released from its Sky Brasil credit agreement guarantee in January 2007.
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:
2007 2006 2005
For the years ended June 30, (in millions)
Revenues $24,682 $21,109 $19,734
Operating income (loss) 4,100 3,068 (221)
Income (loss) from continuing operations 2,457 1,889 (67)
Net income (loss) 2,473 1,889 (119)
2007 2006
As of June 30, (in millions)
Current assets $ 6,430 $ 7,835
Non-current assets 17,885 13,613
Current liabilities 6,181 5,268
Non-current liabilities 10,064 8,770
Equity affiliates of the Company have balance sheet dates consistent with the Company with the following exceptions:
Investment Year End
Gemstar-TV Guide International, Inc. December 31
NGC UK December 31
The DIRECTV Group, Inc. December 31
NEWS CORPORATION 2007 Annual Report 85