Twenty-First Century Fox 2008 Annual Report Download - page 105

NEWSCORP
Notes to the Consolidated Financial Statements (continued)
Amortization related to finite-lived intangible assets was $198 million, $110 million and $99 million for the fiscal years ended June 30, 2008,
2007 and 2006, respectively.
Based on the current amount of intangible assets subject to amortization, the estimated amortization expense for each of the succeeding
five fiscal years is as follows: 2009—$201 million, 2010—$209 million, 2011—$179 million, 2012—$157 million and 2013—$148 million. These amounts
may vary as acquisitions and disposals occur in the future and as purchase price allocations are finalized.
Note 9 BORROWINGS
Outstanding
Weighted average
interest rate at
June 30, 2008
As of June 30,
2008 2007
Description Due date (in millions)
Bank Loans (a) $ 220 $ 192
Public Debt
Senior notes issued under January 1993 indenture (b) 8.60% 2013 - 2034 2,234 2,217
Senior notes issued under March 1993 indenture (c)(d) 6.74% 2009 - 2096 9,290 8,390
Liquid Yield Option™ Notes (e) 2021 75 72
Exchangeable securities (f) 1,692 1,631
Total public debt 13,291 12,310
Total borrowings 13,511 12,502
Less current portion 281 355
Long-term borrowings $13,230 $ 12,147
At June 30, 2008, the fair value of interest bearing liabilities in aggregate amounts to $13.6 billion.
(a) In August 2006, the Company entered into a loan agreement with Raiffeisen Zentralbank Österreich AG (“RZB”) and as of June 30, 2008, $194
million was outstanding under this loan agreement. The loan bears interest at LIBOR for a six month period plus a margin of up to 2.85% per
annum dependent upon certain financial metrics. Principal amounts under the RZB loan are to be repaid in equal amounts every six months
starting on the second anniversary of the date of the agreement until the fifth anniversary of the date of the agreement. At June 30, 2008, $55
million of the RZB loan was due within the next twelve months and has been classified as current borrowings. The loans are secured by certain
guarantees, bank accounts and share pledges of the Company’s Russian operating subsidiaries.
As part of the Dow Jones acquisition, the Company assumed total debt of $378 million which consisted of $225 million 3.875% notes due 2008,
$131 million in commercial paper and a $22 million variable interest rate note. In December 2007, the Company retired all of the commercial
paper outstanding and, in February 2008, the Company retired the $225 million 3.875% notes. As of June 30, 2008, only the $22 million variable
interest rate note was outstanding. See Note 3—Acquisitions, Disposals and Other Transactions for further discussion of the Dow Jones
acquisition.
(b) These notes are issued under the Amended and Restated Indenture dated as of January 28, 1993, as supplemented, among News America
Incorporated, a subsidiary of the Company (“NAI”), the Company (the “Parent Guarantor”) named therein and U.S. Bank National Association,
as Trustee. These notes are direct unsecured obligations of NAI and rank pari passu with all other unsecured indebtedness of NAI. Redemption
may occur, at the option of the holders, at 101% of the principal plus an accrued interest amount in certain circumstances where a change of
control is deemed to have occurred. These notes are subject to certain covenants, which, among other things, restrict secured indebtedness to
10% of tangible assets and in certain circumstances limit new senior indebtedness.
(c) These notes are issued under the Amended and Restated Indenture dated as of March 24, 1993, as supplemented, among NAI, the Parent
Guarantor named therein and The Bank of New York, as Trustee. These notes are direct unsecured obligations of NAI and rank pari passu with
all other unsecured indebtedness of NAI. Redemption may occur, at the option of the holders, at 101% of the principal plus an accrued interest
amount in certain circumstances where a change of control is deemed to have occurred. These notes are subject to certain covenants, which,
among other things, restrict secured indebtedness to 10% of tangible assets and in certain circumstances limit new senior indebtedness.
(d) In December 2005, the Company issued $1,150 million of 6.40% Senior Notes due 2035 for general corporate purposes . The Company received
proceeds of approximately $1,133 million on the issuance of this debt, net of expenses.
In March 2007, the Company issued $1,000 million of 6.15% Senior Notes due 2037 for general corporate purposes. The Company received
proceeds of approximately $1,000 million on the issuance of this debt, net of expense.
In November 2007, the Company issued $1,250 million of 6.65% Senior Notes due 2037 for general corporate purposes. The Company received
proceeds of approximately $1,237 million on the issuance of this debt, net of expense.
In January 2008, the Company retired its $350 million 6.625% Senior Notes due 2008.
104 NEWSCORP 2008 Annual Report