Twenty-First Century Fox 2008 Annual Report Download - page 115

NEWSCORP
Notes to the Consolidated Financial Statements (continued)
The Company also has certain contractual arrangements in relation to certain investees that would require the Company to make payments or
provide funding if certain circumstances occur (“contingent guarantees”). The Company does not expect that these contingent guarantees will
result in any material amounts being paid by the Company in the foreseeable future. The timing of the amounts presented in the table below
reflect when the maximum contingent guarantees will expire and does not indicate that the Company expects to incur an obligation to make
payments during that time frame.
As of June 30, 2008
Amount of Guarantees Expiration Per Period
Total Amounts
Committed 1 year 2-3 years 4-5 years After 5 years
Contingent guarantees: (in millions)
Programming rights (e) $502 $ 31 $162 $80 $229
Other 62 42 12 8 —
$564 $73 $174 $88 $229
(a) The Company leases transponders, office facilities, warehouse facilities, equipment and microwave transmitters used to carry broadcast
signals. These leases, which are classified as operating leases, expire at certain dates through fiscal 2090. In addition, the Company leases
various printing plants, which leases expire at various dates through fiscal 2095.
(b) News America Marketing Group (“NAMG”), a leading provider of in-store marketing products and services primarily to consumer packaged
goods manufacturers, enters into agreements with retailers to rent space for the display of point of service advertising.
(c) The Company’s contract with Major League Baseball (“MLB”) gives the Company rights to broadcast certain regular season and post season
games, as well as exclusive rights to broadcast MLB’s World Series and All-Star Game through the 2013 MLB season.
Under the Company’s contract with the National Football League (“NFL”), remaining future minimum payments for program rights to
broadcast certain football games are payable over the remaining term of the contract through fiscal 2012.
The Company’s contracts with the National Association of Stock Car Auto Racing (“NASCAR”) give the Company rights to broadcast certain
races and ancillary content through calendar year 2014.
Under the Company’s contract with the Bowl Championship Series (“BCS”), remaining future minimum payments for program rights to
broadcast the BCS are payable over the remaining term of the contract through fiscal 2010.
Under the Company’s contract with the Big Ten Conference, remaining future minimum payments for program rights to broadcast certain Big
Ten Conference sporting events are payable over the remaining term of the contract through fiscal 2032.
In addition, the Company has certain other local sports broadcasting rights.
(d) Includes obligations relating to third party printing contracts, television rating services, a distribution agreement and paper purchase
obligations.
(e) A joint-venture in which the Company owns a 50% equity interest, entered into an agreement for global programming rights. Under the terms
of the agreement, the Company and the other joint-venture partner have jointly guaranteed the programming rights obligation.
In accordance with SFAS No. 87, “Employers’ Accounting for Pensions,” and SFAS No. 106, “Employers’ Accounting for Postretirement
Benefits Other Than Pensions,” the total accrued benefit liability for pension and other postretirement benefit plans recognized as of June 30,
2008 was approximately $670 million (see Note 16—Pensions and Other Postretirement Benefits). This amount is effected by, among other items,
statutory funding levels, changes in plan demographics and assumptions, and investment return on plan assets. Because of the current overall
funded status of our material plans, the accrued liability does not represent expected near-term liquidity needs and accordingly the Company did
not include this amount in the contractual obligations table.
Contingencies
NDS
Echostar Litigation
On June 6, 2003, Echostar Communications Corporation, Echostar Satellite Corporation, Echostar Technologies Corporation and Nagrastar L.L.C.
(collectively, “Echostar”) filed an action against NDS in the United States District Court for the Central District of California. That complaint
purported to allege claims for violation of the Digital Millennium Copyright Act (“DMCA”), the Communications Act of 1934 (“Communications
Act”), the Electronic Communications Privacy Act, the Computer Fraud and Abuse Act, California’s Unfair Competition Law (“UCL”) and the federal
Racketeer Influenced and Corrupt Organizations (“RICO”) statute. The complaint also purported to allege claims for civil conspiracy,
misappropriation of trade secrets and interference with prospective business advantage. The complaint sought injunctive relief, unspecified
compensatory and exemplary damages and restitution. Extensive motion practice ensued regarding this complaint, regarding subsequent
complaints filed by Echostar, and regarding counterclaims asserted by NDS.
114 NEWSCORP 2008 Annual Report