Twenty-First Century Fox 2008 Annual Report Download - page 86

NEWSCORP
Notes to the Consolidated Financial Statements
Note 1 DESCRIPTION OF BUSINESS
News Corporation and its subsidiaries (together, “News Corporation” or the “Company”) is a Delaware corporation. News Corporation 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 (“DBS”) operators primarily in
the United States; Direct Broadcast Satellite Television, 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; and 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.
Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of consolidation
The consolidated financial statements include the accounts of all majority-owned and controlled subsidiaries. In addition, the Company evaluates
its relationships with other entities to identify whether they are variable interest entities as defined by Financial Accounting Standards Board
(“FASB”) Interpretation No. (“FIN”) 46R, “Consolidation of Variable Interest Entities, an Interpretation of ARB No. 51” (“FIN 46R”), and to assess
whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is
consolidated in accordance with FIN 46R. All significant intercompany accounts and transactions have been eliminated in consolidation, including
the intercompany portion of transactions with equity method investees.
Certain fiscal 2007 and fiscal 2006 amounts have been reclassified to conform to the fiscal 2008 presentation.
The Company maintains a 52-53 week fiscal year ending on the Sunday nearest to June 30. Fiscal 2008 ended on June 29, 2008 and was
comprised of 52 weeks. Fiscal 2007 ended on July 1, 2007 and was comprised of 52 weeks and fiscal 2006 ended on July 2, 2006 and was comprised
of 52 weeks. For convenience purposes, the Company continues to date its financial statements as of June 30.
Use of estimates
The preparation of the Company’s Consolidated Financial Statements in conformity with generally accepted accounting principles in the United
States (“GAAP”) requires management to make estimates and assumptions that affect the amounts that are reported in the consolidated
financial statements and accompanying disclosures. Actual results could differ from those estimates.
Cash and cash equivalents
Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less.
Concentration of credit risk
Cash and cash equivalents are maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance
provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions of reputable
credit and therefore bear minimal credit risk.
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