Twenty-First Century Fox 2002 Annual Report Download - page 55

Statement of Financial Position
Total assets as at 30 June, 2002 declined $13.5 billion from the prior year to $71.4 billion. The major changes occurred in the following:
• Current receivables, non-current inventories and property, plant and equipment fell primarily due to the strengthening of the
Australian dollar;
• Current inventory declined due to the write down of US national sporting contracts for Major League Baseball, NASCAR
and the National Football League, as well as foreign currency movements;
• Investments in associated entities declined by $13.1 billion largely due to write downs of Gemstar and Stream, the
Company’s sale of Fox Family Worldwide and a reduction in our investment in BSkyB resulting from the write down of their
investment in KirchPayTV;
• Other investments reduced by $1.4 billion mainly due to the disposal of the remaining interest in EchoStar and a write-off of
the investment in KirchMedia; and
• Publishing rights, titles and television licences increased $4.3 billion, despite adverse currency fluctuations of $2.8 billion, due
to the acquisition of Chris-Craft Industries, Inc. and subsidiaries (“Chris-Craft”), Speedvision Network, LLC and Fox Sports
International.
Total liabilities as at 30 June, 2002 declined $5.4 billion from the prior year to $32.0 billion. The major changes occurred in the following:
• Interest bearing liabilities fell $3.4 billion due to favourable currency movements of $1.9 billion and the repayment of
$1.6 billion of debt during the year. The increase in current liabilities is due to a transfer of long term debt to current
liabilities resulting from the further reduction in debt of $1.7 billion planned for 15 August, 2002;
• Total payables declined by $1.1 billion primarily due to the strengthening of the Australian dollar;
• Provisions increased by $0.8 billion mainly due to the provision made for future losses on the US national sporting contracts;
and
• Exchangeable Preferred Securities declined $2.0 billion following the settlement of all outstanding obligations to MCI
Communications Corporation.
Statement of Cash Flows
Overall cash increased by $0.7 billion due to the following:
• Cash provided by operating activities was $3.1 billion due to operating income of $3.5 billion and limited investments in
working capital;
• Cash provided by investing activity was $0.4 billion. Investment spending was $3.4 billion, reflecting in part the acquisition of
the Chris-Craft television stations and the Speedvision cable channel, as well as continued investment into various cable and
pay television channels and platforms across Asia, Europe, Latin America and the United States of America. Proceeds from
sale of non-current assets primarily represent the sale of our investments in Fox Family Worldwide and EchoStar. Capital
expenditures amounted to $0.5 billion;
• Cash used in financing activities was $2.3 billion, primarily arising from the repayment of $1.6 billion of long term debt and
the cash portion of the settlement of all outstanding obligations to MCI Communications Corporation; and
• The strengthening of the Australian dollar reduced reported cash by $0.4 billion.
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Discussion and Analysis of the Financial Statements (Continued)
FOR THE YEAR ENDED 30 JUNE, 2002
THE NEWS CORPORATION LIMITED
Annual Report 2002