Twenty-First Century Fox 2014 Annual Report Download - page 103

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TWENTY-FIRST CENTURY FOX, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
97
included in Non-current Other liabilities. Amounts included in Non-current Other liabilities primarily relate to
facility termination obligations, which are expected to be paid through fiscal 2021.
NOTE 6. INVENTORIES
The Company’s inventories were comprised of the following:
As of June 30,
2014 2013
(in millions)
Programming rights ............................................................................................................... $ 5,812 $ 4,996
DVDs, Blu-rays, and other merchandise ............................................................................... 81 69
Filmed entertainment costs:
Films:
Released ............................................................................................................. 1,025 806
Completed, not released ..................................................................................... 317 10
In production ...................................................................................................... 819 958
In development or preproduction ....................................................................... 151 193
2,312 1,967
Television productions:
Released ............................................................................................................. 862 696
In production ...................................................................................................... 463 425
In development or preproduction ....................................................................... 4 2
1,329 1,123
Total filmed entertainment costs, less accumulated amortization(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 , 6 4 1 3 , 0 9 0
Total inventories, net ............................................................................................................. 9,534 8,155
Less: current portion of inventories, net(b) ............................................................................. (3,092 ) (2,784)
Total non-current inventories ................................................................................................. $ 6,442 $ 5,371
(a) Does not include $335 million and $366 million of net intangible film library costs as of June 30, 2014 and
2013, respectively, which were included in intangible assets subject to amortization in the Consolidated
Balance Sheets.
(b) Current portion of inventories as of June 30, 2014 and 2013 was comprised of programming rights ($3,011
million and $2,715 million, respectively), DVDs, Blu-rays, and other merchandise.
As of June 30, 2014, the Company estimated that approximately 60% of unamortized filmed entertainment
costs from the completed films are expected to be amortized during fiscal 2015 and approximately 93% of released
filmed entertainment costs will be amortized within the next three fiscal years. During fiscal 2015, the Company
expects to pay $1,109 million in accrued participation liabilities, which are included in Participations, residuals and
royalties payable in the Consolidated Balance Sheets. As of June 30, 2014, acquired film and television libraries had
remaining unamortized film costs of $28 million, which are generally amortized using the individual film forecast
method over a remaining period of approximately 3-7 years.