Twenty-First Century Fox 2014 Annual Report Download - page 125

TWENTY-FIRST CENTURY FOX, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
119
NOTE 16. COMMITMENTS AND CONTINGENCIES
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, 2014:
As of June 30, 2014
Payments due by period
Total 1 year 2-3 years 4-5 years
After 5
years
(in millions)
Contracts for capital expenditure .............................. $ 131 $ 108 $ 23 $ - $ -
Operating leases and service agreements
Land and buildings .............................................. 2,210 311 517 451 931
Transponder service agreements and other ......... 2,513 465 841 611 596
Other commitments
Borrowings .......................................................... 18,988 799 783 3,027 14,379
Sports programming rights .................................. 52,800 6,138 12,051 9,123 25,488
Entertainment programming rights ...................... 4,618  2,069 1,852 590 107
Other commitments and contractual obligations .. 5,733  1,611  2,459  688  975
Total commitments, borrowings and contractual
obligations............................................................... $ 86,993 $11,501 $18,526  $ 14,490  $ 42,476
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, 2014
Amount of guarantees expiration per period
Contingent guarantees: Total 1 year 2-3 years 4-5 years
After 5
years
(in millions)
Sports programming rights ....................................... $ 559 $387 $172  $ -  $ -
Hulu indemnity ......................................................... 115  -  -  115  -
Letters of credit and other ......................................... 50  50  -  -  -
Total contingent guarantees ...................................... $ 724 $437 $172  $ 115  $ -
Operating leases and service agreements
The transponder service agreements represent approximately $1.9 billion of the total amounts committed and
the balance includes leases for office facilities, equipment and microwave transmitters used to carry broadcast
signals. These leases, which are classified as operating leases, expire at certain dates through fiscal 2050. Included in
the total amounts committed of $2.2 billion, are approximately $315 million for office facilities that have been sub-
leased to News Corp.
Sport programming rights
Under the Company’s contract with the National Football League, remaining future minimum payments for
program rights to broadcast certain football games are payable over the remaining term of the contract through 2022.