Twenty-First Century Fox 2014 Annual Report Download - page 68

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62
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 of office facilities that have been sub-
leased to News Corp.
Sport programming rights
Under the Company’s contract with the NFL, remaining future minimum payments for program rights to
broadcast certain football games are payable over the remaining term of the contract through 2022.
The Company’s contract with the 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 2021
MLB season.
The Company’s contracts with the National Association of Stock Car Auto Racing (“NASCAR”) give the
Company rights to broadcast certain races and ancillary content through calendar year 2024.
Under the Company’s contracts with certain collegiate conferences, remaining future minimum payments for
program rights to broadcast certain sporting events are payable over the remaining terms of the contracts.
Under the Company’s contract with Italy’s National League Football, remaining future minimum payments
for programming rights to broadcast National League Football matches are payable over the remaining term of the
contract through 2018.
Under the Company’s contract with the Board of Control for Cricket in India (“BCCI”), remaining future
minimum payments for program rights to broadcast international and domestic cricket matches and series are
payable over the remaining term of the contract through 2018. In connection with the agreement with BCCI, the
Company was required to obtain a bank guarantee covering its programming rights obligation.
In addition, the Company has certain other local sports broadcasting rights including the right to broadcast the
New York Yankees pre-season and regular season games through the 2042 MLB season.