Twenty-First Century Fox 2008 Annual Report Download - page 114

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NEWSCORP
Notes to the Consolidated Financial Statements (continued)
Dr. Roderick R. Paige was a Director of the Company until February 2008. Upon his resignation from the Board, the Company and Dr. Paige
entered into a consultancy arrangement pursuant to which Dr. Paige advises the Company on certain educational matters. The fees paid by the
Company to Dr. Paige pursuant to this arrangement are $240,000 per annum and Dr. Paige received $90,668 in the fiscal year ended June 30, 2008.
Other than fees related to his Directorship, no amounts were paid to Dr. Paige in fiscal 2006 or fiscal 2007.
Other related entities
In the ordinary course of business, the Company enters into transactions with related parties, such as equity affiliates, to purchase and/or sell
advertising, the sale of programming, administrative services and supplying digital technology and services for digital pay television platforms. The
following table sets forth the net revenue from related parties included in the consolidated statements of operations:
2008 2007 2006
For the years ended June 30, (in millions)
Related party revenue, net of expense $1,298 $1,173 $1,143
The following table sets forth the amount of accounts receivable due from and payable to related parties outstanding on the consolidated
balance sheets:
2008 2007
As of June 30, (in millions)
Accounts receivable from related parties $284 $459
Accounts payable to related parties 279 181
Liberty Transaction
In February 2008, the Company closed transactions contemplated by the Share Exchange Agreement with Liberty. Pursuant to the terms of the
Share Exchange Agreement, Liberty exchanged its entire interest in the Company’s common stock for 100% of a wholly-owned subsidiary, whose
holdings consisted of the Company’s approximate 41% interest in DIRECTV, the Three RSNs and $625 million in cash. As a result of the closing of
the transaction contemplated by the Share Exchange Agreement, Liberty ceased to be a related party in February 2008. (See Note 3—Acquisitions,
Disposals and Other Transactions for further discussion of the Share Exchange Agreement.)
Note 15 COMMITMENTS AND CONTINGENCIES
The Company has commitments under certain firm contractual arrangements (“firm commitments”) to make future payments. These firm
commitments secure the future rights to various assets and services to be used in the normal course of operations. The following table
summarizes the Company’s material firm commitments as of June 30, 2008.
Payments Due by Period
Total 1 year 2-3 years 4-5 years After 5 years
As of June 30, 2008 (in millions)
Contracts for capital expenditure
Land and buildings $ 13 $ 13 $ — $ — $ —
Plant and machinery 229 222 5 2 —
Operating leases (a)
Land and buildings 3,550 352 650 544 2,004
Plant and machinery 982 200 245 192 345
Other commitments
Borrowings 11,819 281 261 528 10,749
Exchangeable securities 1,692 — — 1,561 131
News America Marketing (b) 368 101 144 94 29
Sports programming rights (c) 16,866 3,072 4,555 3,327 5,912
Entertainment programming rights 3,799 1,843 1,476 272 208
Other commitments and contractual obligations (d) 2,665 659 823 585 598
Total commitments, borrowings and contractual obligations $41,983 $6,743 $8,159 $7,105 $19,976
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