Twenty-First Century Fox 2008 Annual Report Download - page 71

NEWSCORP
Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
is available for the general corporate purposes of NAI, the Company and its subsidiaries. The maturity date is in May 2012, however, NAI may
request that the Lenders’ commitments be renewed for up to two additional one year periods. At June 30, 2008, no amounts were outstanding
under the New Credit Agreement.
Commitments and Guarantees
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.
As of June 30, 2008 Total 1 year 2-3 years 4-5 years After 5 years
Payments Due by Period (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
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
Total
Amounts
Committed
Amount of Guarantees Expiration Per Period
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 occupy space for the display of point of sale advertising.
(c) The Company’s contract with 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 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 NASCAR give the Company rights to broadcast certain races and ancillary content through calendar year 2014.
Under the Company’s contract with the BCS, remaining future minimum payments for program rights to broadcast the BCS are payable over
the remaining term of the contract through fiscal 2010.
70 NEWSCORP 2008 Annual Report