Twenty-First Century Fox 2008 Annual Report Download - page 99

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NEWSCORP
Notes to the Consolidated Financial Statements (continued)
Note 5 INVENTORIES
As of June 30, 2008, the Company’s inventories were comprised of the following:
2008 2007
As of June 30, (in millions)
Programming rights $ 2,645 $ 2,390
Books, DVDs, paper and other merchandise 510 497
Filmed entertainment costs:
Films:
Released (including acquired film libraries) 475 557
Completed, not released 102 —
In production 806 450
In development or preproduction 54 82
1,437 1,089
Television productions:
Released (including acquired libraries) 469 487
Completed, not released — 13
In production 256 185
In development or preproduction 2 4
727 689
Total filmed entertainment costs, less accumulated amortization (a) 2,164 1,778
Total inventories, net 5,319 4,665
Less: current portion of inventory, net (b) (2,255) (2,039)
Total noncurrent inventories, net $ 3,064 $ 2,626
(a) Does not include $522 million and $553 million of net intangible film library costs as of June 30, 2008 and 2007, respectively, which are included
in intangible assets subject to amortization in the consolidated balance sheets (see Note 8—Goodwill and Other Intangible Assets for further
details).
(b) Current inventory as of June 30, 2008 and 2007 is comprised of programming rights ($1,781 million and $1,578 million, respectively), books,
DVDs, paper, and other merchandise.
As of June 30, 2008, the Company estimated that approximately 66% of unamortized filmed entertainment costs from the completed films
are expected to be amortized during fiscal 2009 and approximately 94% of released filmed entertainment costs will be amortized within the next
three fiscal years. During fiscal 2009, the Company expects to pay $847 million in accrued participation liabilities, which are included in
participations, residuals and royalties payable on the consolidated balance sheet. At June 30, 2008, acquired film and television libraries have
remaining unamortized film costs of $254 million, which are generally, amortized using the individual film forecast method generally over a
remaining period of approximately one to 13 years.
98 NEWSCORP 2008 Annual Report