Twenty-First Century Fox 2008 Annual Report Download - page 53

NEWSCORP
Management’s Discussion and Analysis of Financial Condition
and Results of Operations
This document contains statements that constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), and Section 27A of the Securities Act of 1933, as amended. The words “expect,” “estimate,” “anticipate,”
“predict,” “believe” and similar expressions and variations thereof are intended to identify forward-looking statements. These statements appear in
a number of places in this document and include statements regarding the intent, belief or current expectations of the Company, its directors or its
officers with respect to, among other things, trends affecting the Company’s financial condition or results of operations. The readers of this
document are cautioned that any forward-looking statements are not guarantees of future performance and involve risks and uncertainties. More
information regarding these risks, uncertainties and other factors is set forth under the heading “Risk Factors” in Item 1A of the Annual Report on
Form 10-K. The Company does not ordinarily make projections of its future operating results and undertakes no obligation (and expressly disclaims
any obligation) to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise,
except as required by law. Readers should carefully review this document and the other documents filed by the Company with the Securities and
Exchange Commission (the “SEC”). This section should be read together with the audited consolidated financial statements of the Company and
related notes set forth elsewhere in this Annual Report.
Introduction
Management’s discussion and analysis of financial condition and results of operations is intended to help provide an understanding of News
Corporation and its subsidiaries’ (together “News Corporation” or the “Company”) financial condition, changes in financial condition and results of
operations. This discussion is organized as follows:
‰Overview of the Company’s Business—This section provides a general description of the Company’s businesses, as well as developments
that occurred either during fiscal 2008 or early fiscal 2009 that the Company believes are important in understanding its results of
operations and financial condition or to disclose known trends.
‰Results of Operations—This section provides an analysis of the Company's results of operations for the three fiscal years ended June 30,
2008. This analysis is presented on both a consolidated and a segment basis. In addition, a brief description is provided of significant
transactions and events that impact the comparability of the results being analyzed.
‰Liquidity and Capital Resources—This section provides an analysis of the Company's cash flows for the three fiscal years ended June 30,
2008, as well as a discussion of the Company's outstanding debt and commitments, both firm and contingent, that existed as of June 30,
2008. Included in the discussion of outstanding debt is a discussion of the amount of financial capacity available to fund the Company's
future commitments and obligations, as well as a discussion of other financing arrangements.
‰Critical Accounting Policies—This section discusses accounting policies considered important to the Company's financial condition and
results of operations, and which require significant judgment and estimates on the part of management in application. In addition, Note 2
to the accompanying Consolidated Financial Statements of News Corporation summarizes the Company's significant accounting policies,
including the critical accounting policy discussion found in this section.
Overview of the Company’s Business
The Company is a diversified global media company, which manages and reports its businesses in eight segments:
‰Filmed Entertainment, which principally consists of the production and acquisition of live-action and animated motion pictures for
distribution and licensing in all formats in all entertainment media worldwide, and the production of original television programming
worldwide.
‰Television, which, as of June 30, 2008, principally consisted of the operation of 35 full power broadcast television stations, including nine
duopolies, in the United States (of these stations, 25 are affiliated with the FOX network and ten are affiliated with the MyNetworkTV
network), the broadcasting of network programming in the United States and the development, production and broadcasting of television
programming in Asia.
‰Cable Network Programming, which principally consists of the production and licensing of programming distributed through cable
television systems and direct broadcast satellite operators primarily in the United States.
‰Direct Broadcast Satellite Television (“DBS”),which principally consists of the distribution of premium programming services via satellite
and broadband directly to subscribers in Italy.
‰Magazines and Inserts, which principally consists of the publication of free-standing inserts, which are promotional booklets containing
consumer offers distributed through insertion in local Sunday newspapers in the United States, and the provision of in-store marketing
products and services, primarily to consumer packaged goods manufacturers in the United States and Canada.
‰Newspapers and Information Services, which principally consists of the publication of four national newspapers in the United Kingdom, the
publication of approximately 147 newspapers in Australia, the publication of a metropolitan newspaper and a national newspaper (with
international editions) in the United States and the provision of information services.
‰Book Publishing, which principally consists of the publication of English language books throughout the world.
‰Other, which includes NDS Group plc (“NDS”), a company engaged in the business of supplying open end-to-end digital technology and
services to digital pay-television platform operators and content providers; Fox Interactive Media (“FIM”), which operates the Company’s
Internet activities; and News Outdoor Group (“News Outdoor”), an advertising business which offers display advertising primarily in outdoor
locations throughout Russia and Eastern Europe.
52 NEWSCORP 2008 Annual Report