Twenty-First Century Fox 2013 Annual Report Download - page 74

The Company’s contracts with NASCAR give the Company rights to broadcast certain races and ancillary
content through calendar year 2022.
Under the Company’s contracts with certain collegiate conferences, remaining future minimum payments
for program rights to broadcast certain sporting events are payable over the remaining terms of the
contracts.
Under the Company’s contract with Italy’s National League Football, remaining future minimum payments
for programming rights to broadcast National League Football matches are payable over the remaining term
of the contract through August 2015.
Under the Company’s contract with the Board of Control for Cricket in India (“BCCI”), remaining future
minimum payments for program rights to broadcast international and domestic cricket matches and series
are payable over the remaining term of the contract through fiscal 2018.
In addition, the Company has certain other local sports broadcasting rights.
(c) Primarily includes obligations relating to distribution agreements, marketing agreements and television
rating services.
(d) In connection with the agreement with BCCI, the Company was required to obtain a bank guarantee
covering its programming rights obligation.
(e) In October 2012, Hulu redeemed Providence Equity Partners’ equity interest for $200 million. In connection
with the transaction, Hulu incurred a charge primarily related to employee equity-based compensation.
Accordingly, the Company recorded approximately $60 million to reflect its share of the charge in the
second quarter of fiscal 2013. The Company has guaranteed $115 million of Hulu’s $338 million five-year
term loan which was used by Hulu, in part, to finance the transaction. The fair value of this guarantee was
calculated using level 3 inputs and was included in the consolidated balance sheet in other liabilities. In July
2013, the Company invested an additional $125 million in Hulu and has committed to invest an additional
$125 million in Hulu to maintain its ownership percentage of approximately 33%. The Company will
continue to account for its interest in Hulu as an equity method investment.
The table excludes the Company’s pension, other postretirement benefits (“OPEB”) obligations and the
gross unrecognized tax benefits for uncertain tax positions as the Company is unable to reasonably predict the
ultimate amount and timing. The Company made contributions of $95 million and $255 million to its pension
plans in fiscal 2013 and fiscal 2012, respectively. The majority of these contributions were voluntarily made to
improve the funding status of the plans. Future plan contributions are dependent upon actual plan asset returns
and interest rates and statutory requirements. Assuming that actual plan asset returns are consistent with the
Company’s expected plan returns in fiscal 2013 and beyond, and that interest rates remain constant, the Company
would not be required to make any material contributions to its U.S. pension plans for the immediate future.
Required pension plan contributions for the next fiscal year are not expected to be material but the Company may
make voluntary contributions in future periods. Payments due to participants under the Company’s pension plans
are primarily paid out of underlying trusts. Payments due under the Company’s OPEB plans are not required to
be funded in advance, but are paid as medical costs are incurred by covered retiree populations, and are
principally dependent upon the future cost of retiree medical benefits under the Company’s pension plans. The
Company expects its net OPEB payments to not be material in 2014. (See Note 17 to the Consolidated Financial
Statements of Twenty-First Century Fox for further discussion of the Company’s pension and OPEB plans.)
Contingencies
Other than as disclosed in the notes to the accompanying consolidated financial statements, the Company is
party to several other purchase and sale arrangements which become exercisable over the next ten years by the
Company or the counter-party to the agreement. None of these arrangements that become or are exercisable in the
next twelve months are material. Purchase arrangements that are exercisable by the counter-party to the agreement,
and that are outside the sole control of the Company, are accounted for in accordance with ASC 480-10-S99-3A,
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