Twenty-First Century Fox 2011 Annual Report Download - page 55

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Notes to the Consolidated Financial Statements (continued)
NOTE 5. Inventories
As of June 30, 2011, the Company’s inventories were comprised of the following:
2011 2010
As of June 30, (in millions)
Programming rights $ 3,512 $ 3,058
Books, DVDs, paper and other merchandise 373 367
Filmed entertainment costs:
Films:
Released (including acquired film libraries) 755 614
Completed, not released 31 155
In production 784 508
In development or preproduction 98 98
1,668 1,375
Television productions:
Released (including acquired libraries) 617 561
In production 356 283
In development or preproduction 42
977 846
Total filmed entertainment costs, less accumulated amortization(a) 2,645 2,221
Total inventories, net 6,530 5,646
Less: current portion of inventory, net(b) (2,332) (2,392)
Total noncurrent inventories, net $ 4,198 $ 3,254
(a) Does not include $428 million and $460 million of net intangible film library costs as of June 30, 2011 and 2010, respectively, which are included in intangible assets subject to amortization
in the consolidated balance sheets. (See Note 9 – Goodwill and Other Intangible Assets for further details)
(b) Current inventory as of June 30, 2011 and 2010 is comprised of programming rights ($1,995 million and $2,057 million, respectively), books, DVDs, Blu Rays, paper, and other
merchandise.
As of June 30, 2011, the Company estimated that approximately 71% of unamortized filmed entertainment costs from the completed films are
expected to be amortized during fiscal 2012 and approximately 98% of released filmed entertainment costs will be amortized within the next three
fiscal years. During fiscal 2012, the Company expects to pay $1,003 million in accrued participation liabilities, which are included in
participations, residuals and royalties payable on the consolidated balance sheets. At June 30, 2011, acquired film and television libraries had
remaining unamortized film costs of $68 million, which are generally amortized using the individual film forecast method over a remaining period
of approximately ten years.
NOTE 6. Investments
As of June 30, 2011, the Company’s investments were comprised of the following:
Ownership
Percentage 2011 2010
As of June 30, (in millions)
Equity method investments:
British Sky Broadcasting Group plc(1) U.K. DBS operator 39% $1,532 $1,159
Sky Network Television Ltd.(1) New Zealand media company 44% 424 343
NDS Digital technology company 49% 423 286
Sky Deutschland AG(1) German pay-TV operator 49.9%(2) 304 326
Other equity method investments various 1,107 893
Fair value of available-for-sale investments various 652 225
Other investments various 425 283
$4,867 $3,515
(1) The market value of the Company’s investment in BSkyB, Sky Network Television Ltd., and Sky Deutschland AG (“Sky Deutschland”) was $9,361 million, $794 million and $1,912 million
at June 30, 2011, respectively.
(2) In fiscal 2011, the Company increased its ownership in Sky Deutschland from approximately 45% to 49.9% at June 30, 2011 (See Fiscal Year 2011 Transactions below for further
discussion)
2011 Annual Report 53