Twenty-First Century Fox 2007 Annual Report Download - page 99

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NEWS CORPORATION
Notes to the Consolidated Financial Statements (continued)
Note 15 Commitments and Contingencies
The Company has commitments under certain firm contractual arrangements (“firm commitments”) to make future payments.
These firm commitments secure the future rights to various assets and services to be used in the normal course of operations. The
following table summarizes the Company’s material firm commitments as of June 30, 2007.
Payments Due by Period
Total 1 year 2-3 years 4-5 years
After 5
years
As of June 30, 2007 (in millions)
Contracts for capital expenditure
Land and buildings $ 75 $ 68 $ 7 $ — $ —
Plant and machinery 373 353 20 — —
Operating leases(a)
Land and buildings 3,078 259 453 386 1,980
Plant and machinery 935 203 256 165 311
Other commitments
Borrowings 10,871 355 430 107 9,979
Exchangeable securities 1,631 — 1,502 — 129
News America Marketing(b) 428 94 166 102 66
Sports programming rights(c) 17,092 2,908 4,855 3,990 5,339
Entertainment programming rights 3,631 1,566 1,395 433 237
Other commitments and contractual obligations(d) 2,263 674 418 314 857
Total commitments, borrowings and contractual obligations $40,377 $6,480 $9,502 $5,497 $18,898
The Company also has certain contractual arrangements in relation to certain investees that would require the Company to make
payments or provide funding if certain circumstances occur (“contingent guarantees”). The Company does not expect that these
contingent guarantees will result in any material amounts being paid by the Company in the foreseeable future. The timing of the
amounts presented in the table below reflect when the maximum contingent guarantees will expire and does not indicate that the
Company expects to incur an obligation to make payments during that time frame.
Amount of Guarantees Expiration Per Period
Total Amounts
Committed 1 year
2-3
years
4-5
years
After 5
years
As of June 30, 2007 (in millions)
Contingent guarantees:
Programming rights(e) $523 $ 21 $ 73 $135 $294
Affiliate borrowings(f) 65 65 — — —
Other 19 19 — — —
$607 $105 $ 73 $135 $294
(a) The Company leases transponders, office facilities, warehouse facilities, equipment and microwave transmitters used to carry
broadcast signals. These leases, which are classified as operating leases, expire at certain dates through fiscal 2090. In addition,
the Company leases various printing plants, which leases expire at various dates through fiscal 2095.
(b) News America Marketing (“NAMG”), a leading provider of in-store marketing products and services primarily to consumer
packaged goods manufacturers, enters into agreements with retailers to rent space for the display of point of service advertising.
(c) The Company’s contract with MLB gives the Company rights to telecast certain regular season and post season games, as well as
exclusive rights to telecast MLB’s World Series and All-Star Game for a seven-year term through the 2013 MLB season.
Under the Company’s contract with the National Football League (“NFL”), remaining future minimum payments for program
rights to broadcast certain football games are payable over the remaining term of the contract through fiscal 2012.
The Company’s contracts with the National Association of Stock Car Auto Racing (“NASCAR”) give the Company rights to
broadcast certain races and ancillary content through calendar year 2014.
Under the Company’s contract with the Bowl Championship Series (“BCS”), remaining future minimum payments for program
rights to broadcast the BCS are payable over the remaining term of the contract through fiscal 2010.
In addition, the Company has certain other local sports broadcasting rights.
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