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Commitments and Contingencies (Tables)
 12 Months Ended
Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Commitments by Fiscal Year Maturity

The following table summarizes the Company’s material firm commitments as of June 30, 2016:

 

     As of June 30, 2016  
     Payments Due by Period  
     Total      1 year      2-3
years		      4-5
years		      After 5
years		  
     (in millions)  

Purchase obligations(a)

    $ 787       $ 339       $ 183       $ 99       $ 166   

Sports programming rights(b)

      1,184         158         379         388         259   

Operating leases(c)

               

Land and buildings

      1,436         129         274         207         826   

Plant and machinery

      4         2         2         —           —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total commitments and contractual obligations

    $ 3,411       $ 628       $ 838       $ 694       $ 1,251   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(a)

The Company has commitments under purchase obligations related to printing contracts, capital projects, marketing agreements and other legally binding commitments.
(b)

The Company has sports programming rights commitments with the National Rugby League, Australian Rugby Union and International Cricket as well as certain other broadcast rights which are payable through fiscal 2023. In November 2015, the Company entered into a sports programming rights agreement with the National Rugby League to license certain media rights for a five year period from 2018 to 2022 for approximately $775 million (A$1.1 billion). In August 2015, the Company entered into a sports programming rights agreement with the Australian Football League to license certain media rights for a six year period from 2017 to 2022 for approximately $850 million (A$1.2 billion). The sports programming rights for the Australian Football League were novated to Foxtel in the fourth quarter of fiscal 2016 and are not included in the table above.
(c)

The Company leases office facilities, warehouse facilities, printing plants and equipment. These leases, which are classified as operating leases, are expected to be paid at certain dates through fiscal 2062. This amount includes approximately $250 million for office facilities that have been subleased from 21st Century Fox.
Net Impact of U.K. Newspaper Matters on Selling, General and Administrative Expenses

Refer to the table below for the net impact of the U.K. Newspaper Matters on Selling, general and administrative expenses recorded in the Statements of Operations:

 

     For the fiscal years ended June 30,  
           2016                 2015                 2014        
     (in millions)  

Gross legal and professional fees related to the U.K. Newspaper Matters

    $ 42      $ 101      $ 169   

Indemnification from 21st Century Fox

      (23 )      (51 )      (97 ) 
  

 

 

    

 

 

    

 

 

  

Net impact on Selling, general and administrative expenses

    $ 19      $ 50      $ 72