Twenty-First Century Fox 2003 Annual Report Download - page 61

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59The News Corporation Limited
Discussion and Analysis of the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE, 2003
Statement of Financial Position
Total assets as at 30 June, 2003 declined $3.7 billion from the prior year to $67.7 billion. The major changes occurred in the
following:
•Cash increased $0.4 billion as outlined in the commentary on the Statement of Cash Flows below;
•Cash on deposit reflects cash collateral for acquired SKY Italia long term debt;
•Current receivables and property, plant and equipment reduced primarily due to the weakness of the US dollar, offset by the
consolidation of SKY Italia assets;
•Non-current receivables increased $0.4 billion largely due to the consolidation of SKY Italia;
•Investments in associated entities reduced by $1.3 billion, reflecting the write down of Gemstar and the consolidation of Stream
as a consequence of the SKY Italia transaction;
•Other investments reduced $0.5 billion primarily due to the weakness of the US dollar and the write down of certain
investments;
•Publishing rights, titles and television licences decreased $2.6 billion due to currency fluctuations, offset by the intangible
recognised following the consolidation of SKY Italia.
Total liabilities as at 30 June, 2003 declined $2.9 billion from the prior year to $29.0 billion. The major changes occurred in the
following:
•Interest bearing liabilities reduced $3.0 billion mainly due to net debt repayments of $1.4 billion and favourable currency
fluctuations, offset by the liabilities assumed on consolidation of SKY Italia;
•The reduction in total payables of $0.3 billion was offset by an increase in Exchangeable securities of $0.4 billion and reflects
$3.2 billion net proceeds from issuance of new securities and the newly consolidated SKY Italia liabilities, offset by $1.3 billion
in settlement of existing obligations and favourable currency fluctuations.
Statement of Cash Flows
Overall cash increased by $0.4 billion due to the following:
•Cash provided by operating activities was $2.5 billion primarily due to operating profit before depreciation of $2.6 billion;
•Cash used in investing activities was $1.8 billion. Net investment spending was $1.6 billion, reflecting businesses acquired of
$0.6 billion (primarily the Chicago television station WPWR and SKY Italia) as well as continued investments into various cable
and pay television channels and platforms worldwide. This was offset by $0.3 billion of proceeds from disposal of non current
assets. Capital expenditures amounted to $0.5 billion;
•Cash provided by financing activities was $0.5 billion. This reflects proceeds of $3.2 billion from issuance of Exchangeable
securities (“BUCS”) and long term debt and shares issued of $1.9 billion, primarily being proceeds from the secondary issue
made by the Fox Entertainment Group in December 2002. Offsetting this, funds were applied to repay $3.7 billion in long term
debt and Exchangeable securities and to provide $0.7 billion as cash collateral for SKY Italia long term debt. Dividends paid
amounted to $0.3 billion;
•The weakening of the US dollar reduced reported cash by $0.7 billion.