Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2017 | May 05, 2017 | |
Document And Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | TWENTY-FIRST CENTURY FOX, INC. | |
Entity Central Index Key | 1,308,161 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Class A Common Stock | ||
Document And Entity Information [Line Items] | ||
Trading Symbol | FOXA | |
Entity Common Stock, Shares Outstanding | 1,052,334,514 | |
Class B Common Stock | ||
Document And Entity Information [Line Items] | ||
Trading Symbol | FOX | |
Entity Common Stock, Shares Outstanding | 798,520,953 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | ||
Income Statement [Abstract] | |||||
Revenues | $ 7,564 | $ 7,228 | $ 21,752 | $ 20,680 | |
Operating expenses | (4,763) | (4,472) | (13,472) | (12,902) | |
Selling, general and administrative | (878) | (893) | (2,603) | (2,685) | |
Depreciation and amortization | (140) | (133) | (410) | (391) | |
Impairment and restructuring charges | (37) | (15) | (213) | (46) | |
Equity (losses) earnings of affiliates | (51) | (9) | (57) | 38 | |
Interest expense, net | (310) | (295) | (909) | (888) | |
Interest income | 9 | 12 | 27 | 28 | |
Other, net | (142) | (32) | (241) | (226) | |
Income from continuing operations before income tax expense | 1,252 | 1,391 | 3,874 | 3,608 | |
Income tax expense | (370) | (463) | (1,161) | (1,190) | |
Income from continuing operations | 882 | 928 | 2,713 | 2,418 | |
Loss from discontinued operations, net of tax | (12) | (3) | (19) | (8) | |
Net income | 870 | 925 | 2,694 | 2,410 | |
Less: Net income attributable to noncontrolling interests | [1] | (71) | (84) | (218) | (222) |
Net income attributable to Twenty-First Century Fox, Inc. stockholders | 799 | 841 | 2,476 | 2,188 | |
EARNINGS PER SHARE DATA | |||||
Income from continuing operations attributable to Twenty-First Century Fox, Inc. stockholders - basic and diluted | $ 811 | $ 844 | $ 2,495 | $ 2,196 | |
Weighted average shares | |||||
Basic | 1,851 | 1,916 | 1,855 | 1,961 | |
Diluted | 1,853 | 1,916 | 1,857 | 1,962 | |
Income from continuing operations attributable to Twenty-First Century Fox, Inc. stockholders per share: | |||||
Basic | $ 0.44 | $ 0.44 | $ 1.35 | $ 1.12 | |
Diluted | 0.44 | 0.44 | 1.34 | 1.12 | |
Net income attributable to Twenty-First Century Fox, Inc. stockholders per share - basic and diluted | $ 0.43 | $ 0.44 | $ 1.33 | $ 1.12 | |
[1] | Net income attributable to noncontrolling interests includes $43 million and $36 million for the three months ended March 31, 2017 and 2016, respectively, and $113 million and $96 million for the nine months ended March 31, 2017 and 2016, respectively, relating to redeemable noncontrolling interests. |
UNAUDITED CONSOLIDATED STATEME3
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net income | $ 870 | $ 925 | $ 2,694 | $ 2,410 | |
Other comprehensive income (loss), net of tax | |||||
Foreign currency translation adjustments | 111 | 42 | (40) | (123) | |
Cash flow hedges | 6 | (20) | 19 | (4) | |
Unrealized holding losses on securities | 0 | 0 | 0 | (4) | |
Benefit plan adjustments | 74 | 5 | 117 | 15 | |
Equity method investments | 0 | 47 | (163) | (179) | |
Other comprehensive income (loss), net of tax | 191 | 74 | (67) | (295) | |
Comprehensive income | 1,061 | 999 | 2,627 | 2,115 | |
Less: Net income attributable to noncontrolling interests | [1] | (71) | (84) | (218) | (222) |
Less: Other comprehensive (income) loss attributable to noncontrolling interests | (4) | 0 | 16 | 0 | |
Comprehensive income attributable to Twenty-First Century Fox, Inc. stockholders | $ 986 | $ 915 | $ 2,425 | $ 1,893 | |
[1] | Net income attributable to noncontrolling interests includes $43 million and $36 million for the three months ended March 31, 2017 and 2016, respectively, and $113 million and $96 million for the nine months ended March 31, 2017 and 2016, respectively, relating to redeemable noncontrolling interests. |
UNAUDITED CONSOLIDATED STATEME4
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income attributable to redeemable noncontrolling interests | $ 43 | $ 36 | $ 113 | $ 96 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2017 | Jun. 30, 2016 | |
Current assets | |||
Cash and cash equivalents | $ 5,572 | $ 4,424 | |
Receivables, net | 7,219 | 6,258 | |
Inventories, net | [1] | 3,418 | 3,291 |
Other | 529 | 976 | |
Total current assets | 16,738 | 14,949 | |
Non-current assets | |||
Receivables, net | 538 | 389 | |
Investments | 3,679 | 3,863 | |
Inventories, net | 7,725 | 7,041 | |
Property, plant and equipment, net | 1,691 | 1,692 | |
Intangible assets, net | 6,579 | 6,777 | |
Goodwill | 12,733 | 12,733 | |
Other non-current assets | 1,001 | 749 | |
Total assets | 50,684 | 48,193 | |
Current liabilities | |||
Borrowings | 107 | 427 | |
Accounts payable, accrued expenses and other current liabilities | 3,832 | 3,181 | |
Participations, residuals and royalties payable | 1,663 | 1,672 | |
Program rights payable | 1,233 | 1,283 | |
Deferred revenue | 621 | 505 | |
Total current liabilities | 7,456 | 7,068 | |
Non-current liabilities | |||
Borrowings | 19,789 | 19,126 | |
Other liabilities | 3,826 | 3,678 | |
Deferred income taxes | 2,742 | 2,888 | |
Redeemable noncontrolling interests | 619 | 552 | |
Commitments and contingencies | |||
Equity | |||
Additional paid-in capital | 12,274 | 12,211 | |
Retained earnings | 4,919 | 3,575 | |
Accumulated other comprehensive loss | (2,195) | (2,144) | |
Total Twenty-First Century Fox, Inc. stockholders' equity | 15,017 | 13,661 | |
Noncontrolling interests | 1,235 | 1,220 | |
Total equity | 16,252 | 14,881 | |
Total liabilities and equity | 50,684 | 48,193 | |
Class A Common Stock | |||
Equity | |||
Common stock | [2] | 11 | 11 |
Class B Common Stock | |||
Equity | |||
Common stock | [3] | $ 8 | $ 8 |
[1] | Current portion of inventories, net as of March 31, 2017 and June 30, 2016 was comprised of programming rights ($3,337 million and $3,212 million, respectively), DVDs, Blu-rays and other merchandise. | ||
[2] | Class A common stock, $0.01 par value per share, 6,000,000,000 shares authorized, 1,052,334,514 shares and 1,071,302,532 shares issued and outstanding, net of 123,687,371 treasury shares at par as of March 31, 2017 and June 30, 2016, respectively. | ||
[3] | Class B common stock, $0.01 par value per share, 3,000,000,000 shares authorized, 798,520,953 shares issued and outstanding, net of 356,993,807 treasury shares at par as of March 31, 2017 and June 30, 2016. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2017 | Jun. 30, 2016 |
Class A Common Stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 6,000,000,000 | 6,000,000,000 |
Common stock, shares issued and outstanding net of treasury stock | 1,052,334,514 | 1,071,302,532 |
Common stock, treasury shares | 123,687,371 | 123,687,371 |
Class B Common Stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 3,000,000,000 | 3,000,000,000 |
Common stock, shares issued and outstanding net of treasury stock | 798,520,953 | 798,520,953 |
Common stock, treasury shares | 356,993,807 | 356,993,807 |
UNAUDITED CONSOLIDATED STATEME7
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
OPERATING ACTIVITIES | |||
Net income | $ 2,694 | $ 2,410 | |
Less: Loss from discontinued operations, net of tax | (19) | (8) | |
Income from continuing operations | 2,713 | 2,418 | |
Adjustments to reconcile income from continuing operations to cash provided by operating activities | |||
Depreciation and amortization | 410 | 391 | |
Amortization of cable distribution investments | 46 | 53 | |
Impairment and restructuring charges | 213 | 46 | |
Equity-based compensation | 97 | 152 | |
Equity losses (earnings) of affiliates | 57 | (38) | |
Cash distributions received from affiliates | 182 | 225 | |
Other, net | 241 | 226 | |
Deferred income taxes and other taxes | (70) | 373 | |
Change in operating assets and liabilities, net of acquisitions and dispositions | |||
Receivables | (1,146) | (870) | |
Inventories net of program rights payable | (932) | (814) | |
Accounts payable and accrued expenses | 257 | 136 | |
Other changes, net | 350 | 134 | |
Net cash provided by operating activities from continuing operations | 2,418 | 2,012 | |
INVESTING ACTIVITIES | |||
Property, plant and equipment | (202) | (156) | |
Acquisitions, net of cash acquired | (908) | ||
Investments in equity affiliates | (18) | (87) | |
Other investments | (148) | (229) | |
Net cash used in investing activities from continuing operations | (368) | (1,380) | |
FINANCING ACTIVITIES | |||
Borrowings | 879 | 1,195 | |
Repayment of borrowings | (546) | (502) | |
Repurchase of shares | (619) | (3,958) | |
Dividends paid and distributions | (522) | (465) | |
Purchase of subsidiary shares from noncontrolling interests | (287) | ||
Other financing activities, net | (63) | 11 | |
Net cash used in financing activities from continuing operations | (871) | (4,006) | |
Net decrease in cash and cash equivalents from discontinued operations | (21) | (15) | |
Net increase (decrease) in cash and cash equivalents | 1,158 | (3,389) | |
Cash and cash equivalents, beginning of year | 4,424 | 8,428 | |
Exchange movement on cash balances | (10) | (46) | |
Cash and cash equivalents, end of period | $ 5,572 | 4,993 | |
CLT20 | |||
Adjustments to reconcile income from continuing operations to cash provided by operating activities | |||
CLT20 contract termination costs | [1] | $ (420) | |
[1] | See Note 5 – Restructuring Programs under the heading “Fiscal 2015” in the 2016 Form 10-K as defined in Note 1 – Basis of Presentation. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Mar. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | NOTE 1. BASIS OF PRESENTATION Twenty-First Century Fox, Inc., a Delaware corporation, and its subsidiaries (together, “Twenty-First Century Fox” or the “Company”) is a diversified global media and entertainment company, which currently manages and reports its businesses in the following four segments: Cable Network Programming, Television, Filmed Entertainment and Other, Corporate and Eliminations. The accompanying Unaudited Consolidated Financial Statements of Twenty-First Century Fox have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments consisting only of normal recurring adjustments necessary for a fair presentation have been reflected in these Unaudited Consolidated Financial Statements. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2017. These interim Unaudited Consolidated Financial Statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2016 as filed with the Securities and Exchange Commission (the “SEC”) on August 11, 2016 (the “2016 Form 10-K”). The Unaudited Consolidated Financial Statements include the accounts of Twenty-First Century Fox. All significant intercompany accounts and transactions have been eliminated in consolidation, including the intercompany portion of transactions with equity method investees Investments in and advances to entities or joint ventures in which the Company has significant influence, but less than a controlling voting interest, are accounted for using the equity method. Investments in which the Company has no significant influence are designated as available-for-sale investments if readily determinable market values are available. If an investment’s fair value is not readily determinable, the Company accounts for its investment at cost. The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts that are reported in the consolidated financial statements and accompanying disclosures. Actual results may differ from those estimates. Certain fiscal 2016 amounts have been reclassified to conform to the fiscal 2017 presentation. Unless indicated otherwise, the information in the notes to the Unaudited Consolidated Financial Statements relates to the Company’s continuing operations. Recently Adopted and Recently Issued Accounting Guidance Adopted In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, “Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). To simplify the presentation of debt issuance costs, ASU 2015-03 requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. On July 1, 2016, the Company adopted ASU 2015-03 on a retrospective basis (See Note 6 – Borrowings). Issued In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for the Company for annual and interim reporting periods beginning July 1, 2018. The Company is currently evaluating the impact ASU 2016-15 will have on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory” (“ASU 2016-16”). ASU 2016-16 requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory. ASU 2016-16 is effective for the Company for annual and interim reporting periods beginning July 1, 2018. The Company is currently evaluating the impact ASU 2016-16 will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business” (“ASU 2017-01”). The objective of ASU 2017-01 is to clarify the definition of a business in order to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. ASU 2017-01 is effective for the Company for annual and interim reporting periods beginning July 1, 2018. The Company is currently evaluating the impact ASU 2017-01 will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles–Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). The objective of ASU 2017-04 is to simplify how an entity is required to test goodwill for impairment. Under current GAAP, entities are required to test goodwill for impairment using a two-step approach. Under the amendments in ASU 2017-04, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. ASU 2017-04 is effective for the Company for annual and interim reporting periods beginning July 1, 2020. The Company is currently evaluating the impact ASU 2017-04 will have on its consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, “Compensation–Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”). ASU 2017-07 requires an employer to report the service cost component of net benefit cost in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. In addition, ASU 2017-07 allows only the service cost component to be eligible for capitalization when applicable. ASU 2017-07 is effective for the Company for annual and interim reporting periods beginning July 1, 2018. Early adoption is permitted from July 1, 2017. The Company is currently evaluating the impact ASU 2017-07 will have on its consolidated financial statements. 1 |
Acquisitions, Disposals and Oth
Acquisitions, Disposals and Other Transactions | 9 Months Ended |
Mar. 31, 2017 | |
Acquisitions Disposals And Other Transactions [Abstract] | |
Acquisitions, Disposals and Other Transactions | NOTE 2. ACQUISITIONS, DISPOSALS AND OTHER TRANSACTIONS The Company’s acquisitions support the Company’s strategic priority of increasing its brand presence and reach in key domestic and international markets and acquiring greater control of investments that complement its portfolio of businesses. Fiscal 2017 Acquisitions Sky In December 2016, the Company announced it reached agreement with Sky plc (“Sky”), in which the Company currently has an approximate 39% interest, on the terms of a recommended pre-conditional cash offer by the Company for the fully diluted share capital of Sky, which the Company does not already own, at a price of £10.75 per Sky share (approximately $15 billion in the aggregate) (the “Proposed Sky Acquisition”). The independent committee of Sky’s Board of Directors announced that it intends to unanimously recommend that unaffiliated Sky shareholders vote in favor of the Proposed Sky Acquisition. The Proposed Sky Acquisition is subject to customary closing conditions, including regulatory approvals and the approval of Sky’s shareholders, and is expected to close on or before December 31, 2017. The required regulatory approvals include clearance of the Proposed Sky Acquisition under the European Union (“EU”) Merger Regulation by the European Commission, which notified the Company of such clearance in April 2017. Also in December 2016, the Company entered into a co-operation agreement with Sky (the “Co-Operation Agreement”) pursuant to which the Company and Sky agreed to take certain steps to facilitate completion of the Proposed Sky Acquisition. The Co-Operation Agreement provides for a £200 million (approximately $250 million) break fee payable in cash by the Company in the event that regulatory approvals are not obtained prior to August 15, 2018, or in certain other circumstances described in the Co-Operation Agreement. To provide financing in connection with the Proposed Sky Acquisition, the Company and 21st Century Fox America, Inc. (“21CFA”), a wholly-owned subsidiary of the Company, entered into a bridge credit agreement with the lenders party thereto (the “Bridge Credit Agreement”). The Bridge Credit Agreement provides for borrowings of up to £12.2 billion (approximately $15 billion). Fees under the Bridge Credit Agreement will be based on the Company’s long-term senior unsecured non-credit enhanced debt ratings. Given the current debt ratings, 21CFA will pay a commitment fee on undrawn funds of 0.1% and the initial interest rate on advances will be LIBOR plus 1.125% with subsequent increases every 90 days up to LIBOR plus 1.875%. 21CFA has also agreed to pay a duration fee on each of the 90th, 180th and 270th day after the funding of the loans in an amount equal to 0.50%, 0.75%, and 1.00%, respectively, of the aggregate principal amount of the advances and undrawn commitments outstanding at the time. The terms of the Bridge Credit Agreement also include the requirement that 21CFA maintain a certain leverage ratio and limitations with respect to secured indebtedness. While the Company has entered into the Bridge Credit Agreement, the Company intends to finance the Proposed Sky Acquisition by using a significant portion of the available cash on its balance sheet and obtaining permanent financing in the capital markets. In February 2017, the Company purchased a foreign currency exchange option to limit its foreign currency exchange rate risk in connection with the Proposed Sky Acquisition (See Note 5 – Fair Value under the heading “ Foreign Currency Contracts” Note 11 – Additional Financial Information under the heading “Other, net” The Company believes the Proposed Sky Acquisition will result in enhanced capabilities of the combined company, which will be underpinned by a more geographically diverse and stable revenue base, and will create an improved balance between subscription, affiliate fee, advertising and content revenues. Other In February 2017, the Company announced that it anticipates receiving approximately $350 million in proceeds resulting from the Federal Communications Commission’s (“FCC”) recently completed reverse auction for broadcast spectrum. The anticipated proceeds reflect the FCC’s acceptance of one or more bids placed by the Company during the auction to relinquish spectrum used by certain of its television stations. The Company anticipates it will receive the proceeds before December 31, 2017. Fiscal 2016 Acquisitions National Geographic Partners In fiscal 2016, the Company, through 21CFA, and the National Geographic Society (“NGS”), formed the entity that became National Geographic Partners, LLC (“National Geographic Partners”), to which, in November 2015, the Company contributed $625 million in cash and the Company and NGS contributed their existing interests in NGC Network US, LLC, NGC Network International, LLC and NGC Network Latin America, LLC (collectively, “NGC Networks”). Prior to the transaction, the Company held a controlling interest in NGC Networks, a consolidated subsidiary. NGS also contributed its publishing, travel and certain other businesses (collectively, the “NGS Media Business”) to National Geographic Partners. As part of the transaction, National Geographic Partners also acquired the long-term license for the use of certain trademarks owned by NGS related to the NGC Networks and the NGS Media Business. The Company currently holds a 73% controlling interest in National Geographic Partners. The consideration transferred to NGS has been allocated as follows: approximately $510 million to indefinite-lived intangible assets related to the trademark license agreement, $105 million to intangible assets consisting primarily of subscriber relationships with useful lives of eight years, $60 million to goodwill on the transaction and other net assets of the NGS Media Business and $55 million to the additional interest in National Geographic Partners. MAA Television Network In December 2015, the Company acquired the entirety of the broadcast business of MAA Television Network Limited (“MAA TV”), an entity in India that broadcasts and operates Telugu language entertainment channels, for approximately $346 million in cash including payments toward non-compete agreements. The consideration transferred of approximately $285 million has been allocated, based on a valuation of MAA TV, as follows: approximately $90 million to intangible assets consisting of multi-channel video programming distributor (“MVPD”) affiliate agreements and relationships with useful lives of 11 years, advertiser relationships with useful lives of eight years and the MAA TV trade name with a useful life of 10 years; and the balance representing the goodwill on the transaction. For the fiscal 2016 transactions, the majority of the goodwill is tax deductible and reflects the synergies and increased market penetration expected from combining the operations of the NGS Media Business and MAA TV with the Company. |
Inventories, Net
Inventories, Net | 9 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | NOTE 3. INVENTORIES, NET The Company’s inventories were comprised of the following: As of March 31, 2017 As of June 30, 2016 (in millions) Programming rights and other (a) $ 6,763 $ 6,359 Filmed entertainment costs Films Released or completed 1,320 1,569 In production 1,213 825 In development or preproduction 265 196 - 2,798 2,590 Television productions Released 1,109 1,067 In production, development or preproduction 473 316 1,582 1,383 Total filmed entertainment costs, less accumulated amortization (b) 4,380 3,973 Total inventories, net 11,143 10,332 Less: current portion of inventories, net (c) (3,418 ) (3,291 ) Total non-current inventories, net $ 7,725 $ 7,041 (a) Other includes DVDs, Blu-rays and other merchandise. (b) Does not include $249 million and $273 million of net intangible film library costs as of March 31, 2017 and June 30, 2016, respectively, which were included in intangible assets subject to amortization in the Consolidated Balance Sheets. (c) Current portion of inventories, net as of March 31, 2017 and June 30, 2016 was comprised of programming rights ($3,337 million and $3,212 million, respectively), DVDs, Blu-rays and other merchandise. |
Investments
Investments | 9 Months Ended |
Mar. 31, 2017 | |
Investments [Abstract] | |
Investments | NOTE 4. INVESTMENTS The Company’s investments were comprised of the following: Ownership percentage as of March 31, 2017 As of March 31, 2017 As of June 30, 2016 (in millions) Sky (a)(b) European direct broadcast satellite operator 39% $ 2,919 $ 2,972 Endemol Shine Group (b) Global multi-platform content provider 50% 264 445 Other investments various 496 446 Total investments $ 3,679 $ 3,863 (a) The Company’s investment in Sky had a market value of $8.2 billion as of March 31, 2017 determined using its quoted market price on the London Stock Exchange (a Level 1 measurement as defined in Note 5 – Fair Value). (b) Equity method investment. Hulu The Company owns an equity interest in Hulu LLC (“Hulu”). In August 2016, Hulu issued a 10% equity interest to a new investor thereby diluting the Company’s ownership to 30%. For a period of up to 36 months, under certain limited circumstances, including those arising from regulatory review, the new investor may put its shares to Hulu or Hulu may call the shares from the new investor. If Hulu is required to fund the repurchase of shares from the new investor, the Company has agreed to make an additional capital contribution of up to approximately $300 million to Hulu. |
Fair Value
Fair Value | 9 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 5. FAIR VALUE In accordance with ASC 820, “Fair Value Measurement,” fair value measurements are required to be disclosed using a three-tiered fair value hierarchy which distinguishes market participant assumptions into the following categories: (i) inputs that are quoted prices in active markets (“Level 1”); (ii) inputs other than quoted prices included within Level 1 that are observable, including quoted prices for similar assets or liabilities (“Level 2”); and (iii) inputs that require the entity to use its own assumptions about market participant assumptions (“Level 3”). The tables below present information about financial assets and liabilities carried at fair value on a recurring basis. As of March 31, 2017 and June 30, 2016, there were no assets or liabilities in the Level 1 category. Fair value measurements As of March 31, 2017 Total Level 2 Level 3 (in millions) Assets Derivatives (a) $ 47 $ 47 $ - Other (b) 30 - 30 Liabilities Derivatives (a) (22 ) (22 ) - Redeemable noncontrolling interests (619 ) - (619 ) Total $ (564 ) $ 25 $ (589 ) As of June 30, 2016 Total Level 2 Level 3 (in millions) Assets Derivatives (a) $ 6 $ 6 $ - Liabilities Derivatives (a) (50 ) (50 ) - Other (b) (36 ) - (36 ) Redeemable noncontrolling interests (552 ) - (552 ) Total $ (632 ) $ (44 ) $ (588 ) (a) Represents derivatives associated with the Company’s foreign currency forward and option contracts and interest rate swap contracts. (b) Primarily relates to past acquisitions, including contingent consideration arrangements. Redeemable Noncontrolling Interests The Company accounts for redeemable noncontrolling interests in accordance with ASC 480-10-S99-3A, “Distinguishing Liabilities from Equity” (“ASC 480-10-S99-3A”), because their exercise is outside the control of the Company. The redeemable noncontrolling interests recorded at fair value are put arrangements held by the noncontrolling interests in certain of the Company’s majority-owned sports networks. The Company utilizes the market, income or cost approaches or a combination of these valuation techniques for its Level 3 fair value measures, using observable inputs such as market data obtained from independent sources. To the extent observable inputs are not available, the Company utilizes unobservable inputs based upon the assumptions market participants would use in valuing the asset (liability). As of March 31, 2017, one minority shareholder’s put right will become exercisable in July 2017 and two minority shareholders’ put rights will become exercisable in March 2018. The remaining redeemable noncontrolling interests are currently not exercisable. Financial Instruments The carrying value of the Company’s financial instruments, such as cash and cash equivalents, receivables, payables and cost method investments, approximates fair value. As of March 31, 2017 As of June 30, 2016 (in millions) Borrowings Fair value $ 23,141 $ 23,986 Carrying value $ 19,896 $ 19,553 Fair value is generally determined by reference to market values resulting from trading on a national securities exchange or in an over-the-counter market (a Level 1 measurement). Foreign Currency Contracts The Company uses foreign currency forward contracts primarily to hedge certain exposures to foreign currency exchange rate risks associated with revenues and the cost of producing or acquiring films and television programming. The Company also entered into a foreign currency option contract to limit its foreign currency exchange rate risk in connection with the Proposed Sky Acquisition. For accounting purposes, the option contract does not qualify for hedge accounting and therefore has been treated as an economic hedge (See Note 2 – Acquisitions, Disposals and Other Transactions under the heading “Sky”). As of March 31, 2017 As of June 30, 2016 (in millions) Cash Flow Hedges Notional amount $ 179 $ 409 Fair value $ (18 ) $ (25 ) For foreign currency forward contracts designated as cash flow hedges, the Company expects to reclassify the cumulative changes in fair values, included in Accumulated other comprehensive loss, within the next two years. As of March 31, 2017 As of June 30, 2016 (in millions) Economic Hedges Notional amount (a) $ 12,370 $ 44 Fair value (a) $ 42 $ - (a) Includes the foreign currency option contract to limit the foreign currency exchange rate risk in connection with the Proposed Sky Acquisition. The foreign currency option contract has a notional amount of $12.3 billion and consists of the foreign currency option and a premium payable of approximately $175 million due on the option expiration date. As of March 31, 2017, the foreign currency option had a fair value of $42 million. Interest Rate Swap Contracts The Company uses interest rate swap contracts to hedge certain exposures to interest rate risks associated with certain borrowings. As of March 31, 2017 As of June 30, 2016 (in millions) Cash Flow Hedges Notional amount $ 676 $ 701 Fair value $ 1 $ (19 ) For interest rate swap contracts designated as cash flow hedges, the Company expects to reclassify the cumulative changes in fair values, included in Accumulated other comprehensive loss, within the next three years. Concentrations of Credit Risk Cash and cash equivalents are maintained with several financial institutions. The Company has deposits held with banks that exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions of reputable credit and, therefore, bear minimal credit risk. The Company’s receivables did not represent significant concentrations of credit risk as of March 31, 2017 or June 30, 2016 due to the wide variety of customers, markets and geographic areas to which the Company’s products and services are sold. The Company monitors its positions with, and the credit quality of, the financial institutions which are counterparties to its financial instruments. The Company is exposed to credit loss in the event of nonperformance by the counterparties to the agreements. As of March 31, 2017, the Company did not anticipate nonperformance by any of the counterparties. |
Borrowings
Borrowings | 9 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Borrowings | NOTE 6. BORROWINGS As of March 31, 2017 As of June 30, 2016 (in millions) Bank loans $ 1,337 $ 1,446 Public debt Predecessor indentures 10,179 10,579 Senior notes issued under August 2009 indenture 8,550 7,700 Total public debt 18,729 18,279 Total principal amount 20,066 19,725 Less: unamortized discount and debt issuance costs (a) (170 ) (172 ) Total borrowings 19,896 19,553 Less: current borrowings (107 ) (427 ) Non-current borrowings $ 19,789 $ 19,126 (a) The adoption of ASU 2015-03 resulted in a $172 million decrease in Other non-current assets and Non-current Borrowings in the Consolidated Balance Sheet as of June 30, 2016. Senior Notes Issued In November 2016, 21CFA issued $450 million of 3.375% Senior Notes due 2026 and $400 million of 4.750% Senior Notes due 2046. The net proceeds of $842 million are being used for general corporate purposes. Senior Notes Retired In October 2016, the Company retired $400 million of 8.00% Senior Notes. Current Borrowings As of March 31, 2017, principal payments on the Yankees Entertainment and Sports Network term loan facility of $107 million that are due in the next 12 months are recorded in Borrowings within Current liabilities. Revolving Credit Agreement In May 2015, 21CFA entered into a credit agreement (the “Credit Agreement”) among 21CFA as Borrower, the Company as Parent Guarantor, the lenders party thereto, the issuing banks party thereto, JPMorgan Chase Bank, N.A. (“JPMorgan Chase”) and Citibank, N.A. (“Citibank”) as Co-Administrative Agents, JPMorgan Chase as Designated Agent and Bank of America, N.A. (“Bank of America”) as Syndication Agent. The Credit Agreement, which was amended on December 22, 2016, provides a $1.4 billion unsecured revolving credit facility with a sub-limit of $250 million (or its equivalent in Euros) available for the issuance of letters of credit and a maturity date of May 2020. Under the Credit Agreement, the Company may request an increase in the amount of the credit facility up to a maximum amount of $2.0 billion and the Company may request that the maturity date be extended for up to two additional one-year periods. Borrowings are issuable in U.S. dollars only, while letters of credit are issuable in U.S. dollars or Euros. The material terms of the agreement include the requirement that the Company maintain specific leverage ratios and limitations on secured indebtedness. Fees under the Credit Agreement will be based on the Company’s long-term senior unsecured non-credit enhanced debt ratings. Given the current debt ratings, 21CFA pays a facility fee of 0.125% and an initial drawn cost of LIBOR plus 1.125%. Bridge Credit Agreement See Note 2 – Acquisitions, Disposals and Other Transactions under the heading “Sky”. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Mar. 31, 2017 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | NOTE 7. STOCKHOLDERS’ EQUITY The following tables summarize changes in stockholders’ equity: For the three months ended March 31, 2017 For the nine months ended March 31, 2017 Twenty-First Century Fox stockholders Noncontrolling interests Total equity Twenty-First Century Fox stockholders Noncontrolling interests Total equity (in millions) Balance, beginning of period $ 14,340 $ 1,215 $ 15,555 $ 13,661 $ 1,220 $ 14,881 Net income 799 28 (a) 827 2,476 105 (a) 2,581 Other comprehensive income (loss) 187 4 191 (51 ) (16 ) (67 ) Issuance (cancellation) of shares, net 1 - 1 (527 ) - (527 ) Dividends declared (333 ) - (333 ) (668 ) - (668 ) Other 23 (12 ) (b) 11 126 (74 ) (b) 52 Balance, end of period $ 15,017 $ 1,235 $ 16,252 $ 15,017 $ 1,235 $ 16,252 For the three months ended March 31, 2016 For the nine months ended March 31, 2016 Twenty-First Century Fox stockholders Noncontrolling interests Total equity Twenty-First Century Fox stockholders Noncontrolling interests Total equity (in millions) Balance, beginning of period $ 14,504 $ 991 $ 15,495 $ 17,220 $ 966 $ 18,186 Net income 841 48 (a) 889 2,188 126 (a) 2,314 Other comprehensive income (loss) 74 - 74 (295 ) - (295 ) Cancellation of shares, net (740 ) - (740 ) (3,897 ) - (3,897 ) Dividends declared (287 ) - (287 ) (586 ) - (586 ) Other 79 40 (b) 119 (159 ) (13 ) (b) (172 ) - Balance, end of period $ 14,471 $ 1,079 $ 15,550 $ 14,471 $ 1,079 $ 15,550 (a) Net income attributable to noncontrolling interests excludes $43 million and $36 million for the three months ended March 31, 2017 and 2016, respectively, and $113 million and $96 million for the nine months ended March 31, 2017 and 2016, respectively, relating to redeemable noncontrolling interests which are reflected in temporary equity. (b) Other activity attributable to noncontrolling interests excludes $(2) million and $(142) million for the three months ended March 31, 2017 and 2016, respectively, and $(46) million and $(206) million for the nine months ended March 31, 2017 and 2016, respectively, relating to redeemable noncontrolling interests. Comprehensive Income Comprehensive income is reported in the Unaudited Consolidated Statements of Comprehensive Income and consists of Net income and Other comprehensive income (loss), including foreign currency translation adjustments, losses and gains on cash flow hedges, unrealized holding gains and losses on securities, benefit plan adjustments and the Company’s share of other comprehensive income of equity method investees, which affect stockholders’ equity, and under GAAP, are excluded from Net income. The following tables summarize the activity within Other comprehensive income (loss): For the three months ended March 31, 2017 For the nine months ended March 31, 2017 Before tax Tax (provision) benefit Net of tax Before tax Tax (provision) benefit Net of tax (in millions) Foreign currency translation adjustments Unrealized gains (losses) $ 111 $ - $ 111 $ (40 ) $ - $ (40 ) Other comprehensive income (loss) $ 111 $ - $ 111 $ (40 ) $ - $ (40 ) Cash flow hedges Unrealized gains $ 1 $ - $ 1 $ 14 $ (5 ) $ 9 Amount reclassified on hedging activity (a) 9 (4 ) 5 16 (6 ) 10 Other comprehensive income $ 10 $ (4 ) $ 6 $ 30 $ (11 ) $ 19 Benefit plan adjustments Unrealized gains (b) $ 104 $ (38 ) $ 66 $ 104 $ (38 ) $ 66 Reclassification adjustments realized in net income (c) 13 (5 ) 8 81 (30 ) 51 Other comprehensive income $ 117 $ (43 ) $ 74 $ 185 $ (68 ) $ 117 Equity method investments Unrealized gains (losses) and reclassifications $ 5 $ (5 ) $ - $ (218 ) $ 55 $ (163 ) Other comprehensive income (loss) $ 5 $ (5 ) $ - $ (218 ) $ 55 $ (163 ) For the three months ended March 31, 2016 For the nine months ended March 31, 2016 Before tax Tax (provision) benefit Net of tax Before tax Tax (provision) benefit Net of tax (in millions) Foreign currency translation adjustments Unrealized gains (losses) $ 42 $ - $ 42 $ (125 ) $ 2 $ (123 ) Other comprehensive income (loss) $ 42 $ - $ 42 $ (125 ) $ 2 $ (123 ) Cash flow hedges Unrealized losses $ (40 ) $ 15 $ (25 ) $ (19 ) $ 7 $ (12 ) Amount reclassified on hedging activity (a) 11 (6 ) 5 14 (6 ) 8 Other comprehensive loss $ (29 ) $ 9 $ (20 ) $ (5 ) $ 1 $ (4 ) Losses on securities Amount reclassified on sale of securities (d) $ - $ - $ - $ (7 ) $ 3 $ (4 ) Other comprehensive loss $ - $ - $ - $ (7 ) $ 3 $ (4 ) Benefit plan adjustments Unrealized losses $ - $ - $ - $ (2 ) $ - $ (2 ) Reclassification adjustments realized in net income (c) 9 (4 ) 5 26 (9 ) 17 Other comprehensive income $ 9 $ (4 ) $ 5 $ 24 $ (9 ) $ 15 Equity method investments Unrealized gains (losses) and reclassifications $ 56 $ (9 ) $ 47 $ (154 ) $ (25 ) $ (179 ) Other comprehensive income (loss) $ 56 $ (9 ) $ 47 $ (154 ) $ (25 ) $ (179 ) (a) Reclassifications of amounts related to hedging activity are included in Revenues, Operating expenses, Selling, general and administrative expenses, Interest expense, net or Other, net, as appropriate, in the Unaudited Consolidated Statements of Operations for the three and nine months ended March 31, 2017 and 2016 (See Note 5 – Fair Value for additional information regarding hedging activity). (b) For the three and nine months ended March 31, 2017, the Company recorded a net unrealized actuarial gain from the remeasurement of its pension plan. (c) Reclassifications of amounts related to benefit plan adjustments are included in Selling, general and administrative expenses or Other, net, as appropriate, in the Unaudited Consolidated Statements of Operations for the three and nine months ended March 31, 2017 and 2016. (d) Reclassifications of amounts related to gains and losses on securities are included in Other, net in the Earnings Per Share Data The following table sets forth the Company’s computation of Income from continuing operations attributable to Twenty-First Century Fox stockholders: For the three months ended March 31, For the nine months ended March 31, 2017 2016 2017 2016 (in millions) Income from continuing operations $ 882 $ 928 $ 2,713 $ 2,418 Less: Net income attributable to noncontrolling interests (71 ) (84 ) (218 ) (222 ) Income from continuing operations attributable to Twenty-First Century Fox stockholders $ 811 $ 844 $ 2,495 $ 2,196 Stock Repurchase Program The Company’s Board of Directors (the “Board”) has authorized a stock repurchase program, under which the Company is authorized to acquire Class A Common Stock. In August 2016, the Board authorized the repurchase of an additional $3 billion of Class A Common Stock, excluding commissions. The Company does not have a timeframe over which this buyback authorization is expected to be completed. The program may be modified, extended, suspended or discontinued at any time. As of March 31, 2017, the Company’s remaining buyback authorization was approximately $3.1 billion representing approximately $110 million under the fiscal 2016 authorization and $3 billion under the fiscal 2017 authorization. Dividends The following table summarizes the dividends declared per share on both the Company’s Class A Common Stock and the Class B Common Stock: For the three months ended March 31, For the nine months ended March 31, 2017 2016 2017 2016 Cash dividend per share $ 0.18 $ 0.15 $ 0.36 $ 0.30 The Company declared a dividend of $0.18 per share on both the Class A Common Stock and Class B Common Stock in the three months ended March 31, 2017, which was paid in April 2017 to the stockholders on record as of March 15, 2017. |
Equity-Based Compensation
Equity-Based Compensation | 9 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity-Based Compensation | NOTE 8. EQUITY-BASED COMPENSATION The following table summarizes the Company’s equity-based compensation activity: For the three months ended March 31, For the nine months ended March 31, 2017 2016 2017 2016 (in millions) Equity-based compensation $ 35 $ 34 $ 97 $ 158 Intrinsic value of all settled equity-based awards $ 1 $ 2 $ 70 $ 192 = Tax benefit on vested equity-based awards $ - $ - $ 25 $ 69 As of March 31, 2017, the Company’s total estimated compensation cost related to equity-based awards, not yet recognized, was approximately $150 million, and is expected to be recognized over a weighted average period between one and two years. Compensation expense on all equity-based awards is generally recognized on a straight-line basis over the vesting period of the entire award. Performance Stock Units The Company’s stock based awards are granted in Class A Common Stock. During the nine months ended March 31, 2017, approximately 7.4 million performance stock units (“PSUs”) were granted and approximately 2.6 million PSUs vested. During the nine months ended March 31, 2016, approximately 6.2 million PSUs were granted and approximately 5.9 million PSUs vested. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 9. COMMITMENTS AND CONTINGENCIES Commitments 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 total firm commitments and future debt payments as of March 31, 2017 and June 30, 2016 were approximately $80 billion and $84 billion, respectively. The decrease from June 30, 2016 was primarily due to payments related to sports programming rights. In addition, the Company has made an offer to purchase the fully diluted share capital of Sky which the Company does not already own (See Note 2 – Acquisitions, Disposals and Other Transactions under the heading “Sky”). Contingent Guarantees The Company’s contingent guarantees as of March 31, 2017 have not changed significantly from disclosures included in the 2016 Form 10-K. Included in the Company’s contingent guarantees as of March 31, 2017 and June 30, 2016 is $115 million of Hulu’s $338 million five-year term loan which is due in October 2017. In addition, the Company is party to a capital funding agreement related to Hulu (See Note 4 – Investments under the heading “Hulu”). Contingencies Shareholder Litigation Southern District of New York On July 19, 2011, a purported class action lawsuit captioned Wilder v. News Corp., et al., was filed on behalf of all purchasers of the Company’s common stock between March 3, 2011 and July 11, 2011, in the United States District Court for the Southern District of New York. The plaintiff brought claims under Section 10(b) and Section 20(a) of the Securities Exchange Act, alleging that false and misleading statements were issued regarding the alleged acts of voicemail interception at The News of the World Fox News Channel The Company and certain of its current and former employees have been subject to allegations of sexual harassment and discrimination relating to alleged misconduct at the Company’s Fox News Channel business. The Company has settled some of these claims and is contesting other claims in litigation. To date, none of the amounts paid in settlements or reserved for pending or future claims, is individually or in the aggregate, material to the Company. The Company has also received regulatory and investigative inquiries relating to these matters and stockholder demands to inspect the books and records of the Company which could lead to future litigation. Due to the early stage of these matters, the amount of liability, if any, that may result from these or related matters cannot be estimated at this time. However, the Company does not currently anticipate that the ultimate resolution of any such pending matters will have a material adverse effect on its consolidated financial condition, future results of operations or liquidity. Since the allegations of misconduct in July 2016, the CEO of Fox News Channel has resigned and there have been significant changes in the management of the business unit. In addition, the network’s primetime lineup has significantly changed which could have a negative impact on our ratings. Other Equity purchase arrangements that are exercisable by the counter-party to the agreement, and that are outside the sole control of the Company, are accounted for in accordance with ASC 480-10-S99-3A and are classified as Redeemable noncontrolling interests in the Consolidated Balance Sheets. Other than the arrangements classified as Redeemable noncontrolling interests, the Company is also a party to several other purchase and sale arrangements which become exercisable at various points in time. However, these arrangements are currently either not exercisable in the next twelve months or are not material. The Company establishes an accrued liability for legal claims when the Company determines that a loss is both probable and the amount of the loss can be reasonably estimated. Once established, accruals are adjusted from time to time, as appropriate, in light of additional information. The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be higher or lower than the amounts accrued for such matters. Any fees, expenses, fines, penalties, judgments or settlements which might be incurred by the Company in connection with the various proceedings could affect the Company’s results of operations and financial condition. The Company’s operations are subject to tax in various domestic and international jurisdictions and as a matter of course, the Company is regularly audited by federal, state and foreign tax authorities. The Company believes it has appropriately accrued for the expected outcome of all pending tax matters and does not currently anticipate that the ultimate resolution of pending tax matters will have a material adverse effect on its consolidated financial condition, future results of operations or liquidity. |
Segment Information
Segment Information | 9 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 10. SEGMENT INFORMATION The Company is a diversified global media and entertainment company, which manages and reports its businesses in the following four segments: • Cable Network Programming , which principally consists of the production and licensing of programming distributed primarily through cable television systems, direct broadcast satellite operators, telecommunication companies and online video distributors in the U.S. and internationally. • Television , which principally consists of the broadcasting of network programming in the U.S. and the operation of 28 full power broadcast television stations, including 11 duopolies, in the U.S. (of these stations, 17 are affiliated with the FOX Broadcasting Company (“FOX”), nine are affiliated with Master Distribution Service, Inc. (“MyNetworkTV”), one is affiliated with both The CW Television Network and MyNetworkTV and one is an independent station). • Filmed Entertainment , which principally consists of the production and acquisition of live-action and animated motion pictures for distribution and licensing in all formats in all entertainment media worldwide, and the production and licensing of television programming worldwide. • Other, Corporate and Eliminations, which principally consists of corporate overhead and eliminations and other businesses. The Company’s operating segments have been determined in accordance with the Company’s internal management structure, which is organized based on operating activities. The Company evaluates performance based upon several factors, of which the primary financial measure is Segment OIBDA. Due to the integrated nature of these operating segments, estimates and judgments are made in allocating certain assets, revenues and expenses. Segment OIBDA is defined as Revenues less Operating expenses and Selling, general and administrative expenses. Segment OIBDA does not include: Amortization of cable distribution investments, Depreciation and amortization, Impairment and restructuring charges, Equity (losses) earnings of affiliates, Interest expense, net, Interest income, Other, net, Income tax expense, Loss from discontinued operations, net of tax and Net income attributable to noncontrolling interests. Management believes that Segment OIBDA is an appropriate measure for evaluating the operating performance of the Company’s business segments because it is the primary measure used by the Company’s chief operating decision maker to evaluate the performance of and allocate resources to the Company’s businesses. Management believes that information about Total Segment OIBDA assists all users of the Company’s Unaudited Consolidated Financial Statements by allowing them to evaluate changes in the operating results of the Company’s portfolio of businesses separate from non-operational factors that affect net income, thus providing insight into both operations and the other factors that affect reported results. Total Segment OIBDA provides management, investors and equity analysts a measure to analyze the operating performance of the Company’s business and its enterprise value against historical data and competitors’ data, although historical results, including Segment OIBDA and Total Segment OIBDA, may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences). Total Segment OIBDA may be considered a non-GAAP measure and should be considered in addition to, not as a substitute for, net income, cash flow and other measures of financial performance reported in accordance with GAAP. In addition, this measure does not reflect cash available to fund requirements and excludes items, such as depreciation and amortization and impairment charges, which are significant components in assessing the Company’s financial performance. The following table reconciles Income from continuing operations before income tax expense to Total Segment OIBDA for the three and nine months ended March 31, 2017 and 2016: For the three months ended March 31, For the nine months ended March 31, 2017 2016 2017 2016 (in millions) Income from continuing operations before income tax expense $ 1,252 $ 1,391 $ 3,874 $ 3,608 Add Amortization of cable distribution investments 15 18 46 53 Depreciation and amortization 140 133 410 391 Impairment and restructuring charges 37 15 213 46 Equity losses (earnings) of affiliates 51 9 57 (38 ) Interest expense, net 310 295 909 888 Interest income (9 ) (12 ) (27 ) (28 ) Other, net 142 32 241 226 Total Segment OIBDA $ 1,938 $ 1,881 $ 5,723 $ 5,146 The following tables set forth the Company’s Revenues and Segment OIBDA for the three and nine months ended March 31, 2017 and 2016: For the three months ended March 31, For the nine months ended March 31, 2017 2016 2017 2016 (in millions) Revenues Cable Network Programming $ 4,024 $ 3,941 $ 11,801 $ 11,108 Television 1,690 1,299 4,646 4,064 Filmed Entertainment 2,256 2,321 6,432 6,467 Other, Corporate and Eliminations (406 ) (333 ) (1,127 ) (959 ) Total revenues $ 7,564 $ 7,228 $ 21,752 $ 20,680 Segment OIBDA Cable Network Programming $ 1,446 $ 1,375 $ 4,160 $ 3,931 Television 190 125 757 600 Filmed Entertainment 373 470 1,073 921 Other, Corporate and Eliminations (71 ) (89 ) (267 ) (306 ) Total Segment OIBDA $ 1,938 $ 1,881 $ 5,723 $ 5,146 Intersegment revenues, generated by the Filmed Entertainment segment, of $407 million and $315 million for the three months ended March 31, 2017 and 2016, respectively, and of $1,085 million and $878 million for the nine months ended March 31, 2017 and 2016, respectively, have been eliminated within the Other, Corporate and Eliminations segment. For the three months ended March 31, For the nine months ended March 31, 2017 2016 2017 2016 (in millions) Depreciation and amortization Cable Network Programming $ 87 $ 79 $ 252 $ 229 Television 28 29 85 88 Filmed Entertainment 19 20 59 60 Other, Corporate and Eliminations 6 5 14 14 Total depreciation and amortization $ 140 $ 133 $ 410 $ 391 Depreciation and amortization includes the amortization of definite lived intangible assets of $62 million and $64 million he three months ended March 31, 2017 and 2016, respectively, and $192 million and $182 million for the nine months ended March 31, 2017 and 2016, respectively. As of March 31, 2017 As of June 30, 2016 (in millions) Assets Cable Network Programming $ 25,090 $ 24,974 Television 7,247 6,959 Filmed Entertainment 10,695 9,579 Other, Corporate and Eliminations 3,973 2,818 Investments 3,679 3,863 Total assets $ 50,684 $ 48,193 Revenues by Component For the three months ended March 31, For the nine months ended March 31, 2017 2016 2017 2016 (in millions) Revenues Affiliate fees $ 3,160 $ 2,939 $ 8,989 $ 8,321 Advertising 2,203 1,907 6,338 5,950 Content 2,078 2,288 5,979 6,046 Other 123 94 446 363 Total revenues $ 7,564 $ 7,228 $ 21,752 $ 20,680 |
Additional Financial Informatio
Additional Financial Information | 9 Months Ended |
Mar. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Additional Financial Information | NOTE 11. ADDITIONAL FINANCIAL INFORMATION Impairment and restructuring charges Impairment and restructuring charges of $37 million and $213 million for the three and nine months ended March 31, 2017, respectively, are primarily comprised of costs in connection with management and employee transitions and restructuring at several of the Company’s business units and impairment charges related to certain of the Company’s programming rights. Other, net The following table sets forth the components of Other, net included in the Unaudited Consolidated Statements of Operations: For the three months ended March 31, For the nine months ended March 31, 2017 2016 2017 2016 (in millions) Acquisition related and other transaction costs (a) $ (137 ) $ - $ (170 ) $ (66 ) Investment impairment losses (b) - - - (99 ) Other (c) (5 ) (32 ) (71 ) (61 ) Total other, net $ (142 ) $ (32 ) $ (241 ) $ (226 ) (a) The acquisition related and other transaction costs for the three and nine months ended March 31, 2017 primarily represent the change in fair value of a foreign currency option contract to limit the foreign currency exchange rate risk in connection with the Proposed Sky Acquisition (See Note 2 – Acquisitions, Disposals and Other Transactions under the heading “Sky” for further discussion). The acquisition related costs for the nine months ended March 31, 2016 are primarily due to the revision of a contingency estimate related to a past acquisition. (b) See Note 7 – Investments in the 2016 Form 10-K under the heading “Other” for further discussion. (c) Other for the three and nine months ended March 31, 2017 included approximately $10 million and $45 million, respectively, of costs related to settlements of pending and potential litigations following the July 2016 resignation of the Chairman and CEO of Fox News Channel after a public complaint was filed containing allegations of sexual harassment. Receivables, net Receivables are presented net of an allowance for returns and doubtful accounts, which is an estimate of amounts that may not be collectible. Allowances for returns and doubtful accounts as of March 31, 2017 and June 30, 2016 were $552 million and $576 million, respectively. Supplemental Cash Flows Information For the nine months ended March 31, 2017 2016 (in millions) Supplemental cash flows information Cash paid for income taxes $ (747 ) $ (586 ) Cash paid for interest $ (890 ) $ (873 ) Supplemental information on acquisitions and additional investments Fair value of assets acquired $ - $ 1,199 Cash acquired - 8 Liabilities assumed - (110 ) Cash paid - (916 ) Fair value of equity instruments issued to third parties (a) - 181 Issuance of subsidiary common units - (181 ) Fair value of equity instruments consideration $ - $ - (a) Includes Redeemable noncontrolling interests. |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 9 Months Ended |
Mar. 31, 2017 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Supplemental Guarantor Information | TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS NOTE 12. SUPPLEMENTAL GUARANTOR INFORMATION The Parent Guarantor presently guarantees the senior public indebtedness of 21CFA and the guarantee is full and unconditional. The supplemental condensed consolidating financial information of the Parent Guarantor should be read in conjunction with these Unaudited Consolidated Financial Statements (See Note 6 – Borrowings). In accordance with rules and regulations of the SEC, the Company uses the equity method to account for the results of all of the non-guarantor subsidiaries, representing substantially all of the Company’s consolidated results of operations, excluding certain intercompany eliminations. The following condensed consolidating financial statements present the results of operations, financial position and cash flows of 21CFA, the Company and the subsidiaries of the Company and the eliminations and reclassifications necessary to arrive at the information for the Company on a consolidated basis. TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Statement of Operations For the three months ended March 31, 2017 (in millions) 21st Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries Revenues $ 1 $ - $ 7,563 $ - $ 7,564 Expenses (90 ) - (5,728 ) - (5,818 ) Equity losses of affiliates - - (51 ) - (51 ) Interest expense, net (423 ) (195 ) (19 ) 327 (310 ) Interest income 1 3 332 (327 ) 9 Earnings from subsidiary entities 1,883 1,002 - (2,885 ) - Other, net (140 ) 1 (3 ) - (142 ) Income from continuing operations before income tax expense 1,232 811 2,094 (2,885 ) 1,252 Income tax expense (365 ) - (620 ) 615 (370 ) Income from continuing operations 867 811 1,474 (2,270 ) 882 Loss from discontinued operations, net of tax - (12 ) - - (12 ) Net income 867 799 1,474 (2,270 ) 870 Less: Net income attributable to noncontrolling interests - - (71 ) - (71 ) Net income attributable to Twenty-First Century Fox stockholders $ 867 $ 799 $ 1,403 $ (2,270 ) $ 799 Comprehensive income attributable to Twenty-First Century Fox stockholders $ 1,005 $ 986 $ 1,578 $ (2,583 ) $ 986 See notes to supplemental guarantor information TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Statement of Operations For the three months ended March 31, 2016 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries Revenues $ 1 $ - $ 7,227 $ - $ 7,228 Expenses (88 ) - (5,425 ) - (5,513 ) Equity losses of affiliates (1 ) - (8 ) - (9 ) Interest expense, net (408 ) (179 ) (17 ) 309 (295 ) Interest income 5 1 315 (309 ) 12 Earnings from subsidiary entities 1,570 1,022 - (2,592 ) - Other, net (6 ) - (26 ) - (32 ) Income from continuing operations before income tax expense 1,073 844 2,066 (2,592 ) 1,391 Income tax expense (358 ) - (689 ) 584 (463 ) Income from continuing operations 715 844 1,377 (2,008 ) 928 Loss from discontinued operations, net of tax - (3 ) - - (3 ) Net income 715 841 1,377 (2,008 ) 925 Less: Net income attributable to noncontrolling interests - - (84 ) - (84 ) Net income attributable to Twenty-First Century Fox stockholders $ 715 $ 841 $ 1,293 $ (2,008 ) $ 841 Comprehensive income attributable to Twenty-First Century Fox stockholders $ 703 $ 915 $ 1,415 $ (2,118 ) $ 915 See notes to supplemental guarantor information TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Statement of Operations For the nine months ended March 31, 2017 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries Revenues $ 1 $ - $ 21,751 $ - $ 21,752 Expenses (328 ) - (16,370 ) - (16,698 ) Equity losses of affiliates (1 ) - (56 ) - (57 ) Interest expense, net (1,246 ) (572 ) (58 ) 967 (909 ) Interest income 3 4 987 (967 ) 27 Earnings from subsidiary entities 5,358 3,062 - (8,420 ) - Other, net (226 ) 1 (16 ) - (241 ) Income from continuing operations before income tax expense 3,561 2,495 6,238 (8,420 ) 3,874 Income tax expense (1,067 ) - (1,870 ) 1,776 (1,161 ) Income from continuing operations 2,494 2,495 4,368 (6,644 ) 2,713 Loss from discontinued operations, net of tax - (19 ) - - (19 ) Net income 2,494 2,476 4,368 (6,644 ) 2,694 Less: Net income attributable to noncontrolling interests - - (218 ) - (218 ) Net income attributable to Twenty-First Century Fox stockholders $ 2,494 $ 2,476 $ 4,150 $ (6,644 ) $ 2,476 Comprehensive income attributable to Twenty-First Century Fox stockholders $ 2,249 $ 2,425 $ 4,011 $ (6,260 ) $ 2,425 See notes to supplemental guarantor information TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Statement of Operations For the nine months ended March 31, 2016 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries Revenues $ 1 $ - $ 20,679 $ - $ 20,680 Expenses (283 ) - (15,741 ) - (16,024 ) Equity (losses) earnings of affiliates (2 ) - 40 - 38 Interest expense, net (1,212 ) (532 ) (56 ) 912 (888 ) Interest income 6 3 931 (912 ) 28 Earnings from subsidiary entities 4,803 2,725 - (7,528 ) - Other, net (114 ) - (112 ) - (226 ) - Income from continuing operations before income tax expense 3,199 2,196 5,741 (7,528 ) 3,608 Income tax expense (1,055 ) - (1,894 ) 1,759 (1,190 ) - Income from continuing operations 2,144 2,196 3,847 (5,769 ) 2,418 Loss from discontinued operations, net of tax - (8 ) - - (8 ) - Net income 2,144 2,188 3,847 (5,769 ) 2,410 Less: Net income attributable to noncontrolling interests - - (222 ) - (222 ) - Net income attributable to Twenty-First Century Fox stockholders $ 2,144 $ 2,188 $ 3,625 $ (5,769 ) $ 2,188 $ - Comprehensive income attributable to Twenty-First Century Fox stockholders $ 1,657 $ 1,893 $ 3,301 $ (4,958 ) $ 1,893 See notes to supplemental guarantor information TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Balance Sheet As of March 31, 2017 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries ASSETS Current assets Cash and cash equivalents $ 49 $ 4,166 $ 1,357 $ - $ 5,572 Receivables, net 13 - 7,207 (1 ) 7,219 Inventories, net - - 3,418 - 3,418 Other 67 - 462 - 529 Total current assets 129 4,166 12,444 (1 ) 16,738 Non-current assets Receivables, net 15 - 523 - 538 Inventories, net - - 7,725 - 7,725 Property, plant and equipment, net 230 - 1,461 - 1,691 Intangible assets, net - - 6,579 - 6,579 Goodwill - - 12,733 - 12,733 Other non-current assets 252 - 749 - 1,001 Investments Investments in associated companies and other investments 174 37 3,468 - 3,679 Intragroup investments 104,343 58,994 - (163,337 ) - Total investments 104,517 59,031 3,468 (163,337 ) 3,679 Total assets $ 105,143 $ 63,197 $ 45,682 $ (163,338 ) $ 50,684 LIABILITIES AND EQUITY Current liabilities Borrowings $ - $ - $ 107 $ - $ 107 Other current liabilities 620 386 6,344 (1 ) 7,349 Total current liabilities 620 386 6,451 (1 ) 7,456 Non-current liabilities Borrowings 18,563 - 1,226 - 19,789 Other non-current liabilities 535 - 6,033 - 6,568 Intercompany 38,926 47,794 (86,720 ) - - Redeemable noncontrolling interests - - 619 - 619 Total equity 46,499 15,017 118,073 (163,337 ) 16,252 Total liabilities and equity $ 105,143 $ 63,197 $ 45,682 $ (163,338 ) $ 50,684 See notes to supplemental guarantor information TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Balance Sheet As of June 30, 2016 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries ASSETS Current assets Cash and cash equivalents $ 661 $ 2,019 $ 1,744 $ - $ 4,424 Receivables, net 20 - 6,239 (1 ) 6,258 Inventories, net - - 3,291 - 3,291 Other 13 - 963 - 976 Total current assets 694 2,019 12,237 (1 ) 14,949 Non-current assets Receivables, net 15 - 374 - 389 Inventories, net - - 7,041 - 7,041 Property, plant and equipment, net 213 - 1,479 - 1,692 Intangible assets, net - - 6,777 - 6,777 Goodwill - - 12,733 - 12,733 Other non-current assets 235 - 514 - 749 Investments Investments in associated companies and other investments 137 37 3,689 - 3,863 Intragroup investments 98,965 55,895 - (154,860 ) - Total investments 99,102 55,932 3,689 (154,860 ) 3,863 Total assets $ 100,259 $ 57,951 $ 44,844 $ (154,861 ) $ 48,193 LIABILITIES AND EQUITY Current liabilities Borrowings $ 400 $ - $ 27 $ - $ 427 Other current liabilities 489 144 6,009 (1 ) 6,641 Total current liabilities 889 144 6,036 (1 ) 7,068 Non-current liabilities Borrowings 17,712 - 1,414 - 19,126 Other non-current liabilities 605 - 5,961 - 6,566 Intercompany 37,838 44,146 (81,984 ) - - Redeemable noncontrolling interests - - 552 - 552 Total equity 43,215 13,661 112,865 (154,860 ) 14,881 Total liabilities and equity $ 100,259 $ 57,951 $ 44,844 $ (154,861 ) $ 48,193 See notes to supplemental guarantor information TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Statement of Cash Flows For the nine months ended March 31, 2017 (in millions) 21st Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries OPERATING ACTIVITIES Net cash (used in) provided by operating activities from continuing operations $ (884 ) $ 3,121 $ 181 $ - $ 2,418 INVESTING ACTIVITIES Property, plant and equipment (10 ) - (192 ) - (202 ) Investments (95 ) - (71 ) - (166 ) Net cash used in investing activities from continuing operations (105 ) - (263 ) - (368 ) FINANCING ACTIVITIES Borrowings 842 - 37 - 879 Repayment of borrowings (400 ) - (146 ) - (546 ) Repurchase of shares - (619 ) - - (619 ) Dividends paid and distributions - (335 ) (187 ) - (522 ) Other financing activities, net (44 ) (20 ) 1 - (63 ) Net cash provided by (used in) financing activities from continuing operations 398 (974 ) (295 ) - (871 ) Discontinued operations Net decrease in cash and cash equivalents from discontinued operations (21 ) - - - (21 ) Net (decrease) increase in cash and cash equivalents (612 ) 2,147 (377 ) - 1,158 Cash and cash equivalents, beginning of year 661 2,019 1,744 - 4,424 Exchange movement on cash balances - - (10 ) - (10 ) Cash and cash equivalents, end of period $ 49 $ 4,166 $ 1,357 $ - $ 5,572 See notes to supplemental guarantor information TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Statement of Cash Flows For the nine months ended March 31, 2016 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries OPERATING ACTIVITIES Net cash (used in) provided by operating activities from continuing operations $ (585 ) $ 1,569 $ 1,028 $ - $ 2,012 INVESTING ACTIVITIES Property, plant and equipment (5 ) - (151 ) - (156 ) Investments (185 ) (586 ) (453 ) - (1,224 ) Net cash used in investing activities from continuing operations (190 ) (586 ) (604 ) - (1,380 ) FINANCING ACTIVITIES Borrowings 987 - 208 - 1,195 Repayment of borrowings (200 ) - (302 ) - (502 ) Repurchase of shares - (3,958 ) - - (3,958 ) Dividends paid and distributions - (299 ) (166 ) - (465 ) Purchase of subsidiary shares from noncontrolling interests - (56 ) (231 ) - (287 ) Other financing activities, net - 11 - - 11 Net cash provided by (used in) financing activities from continuing operations 787 (4,302 ) (491 ) - (4,006 ) Discontinued operations Net decrease in cash and cash equivalents from discontinued operations (15 ) - - - (15 ) Net decrease in cash and cash equivalents (3 ) (3,319 ) (67 ) - (3,389 ) Cash and cash equivalents, beginning of year 767 5,913 1,748 - 8,428 Exchange movement on cash balances - - (46 ) - (46 ) Cash and cash equivalents, end of period $ 764 $ 2,594 $ 1,635 $ - $ 4,993 See notes to supplemental guarantor information TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Notes to Supplemental Guarantor Information (1) Investments in the Company’s subsidiaries, for purposes of the supplemental consolidating presentation, are accounted for by their parent companies under the equity method of accounting whereby earnings of subsidiaries are reflected in the respective parent company’s investment account and earnings. (2) The guarantees of 21CFA’s senior public indebtedness constitute senior indebtedness of the Company, and rank pari passu with all present and future senior indebtedness of the Company. Because the factual basis underlying the obligations created pursuant to the various facilities and other obligations constituting senior indebtedness of the Company differ, it is not possible to predict how a court in bankruptcy would accord priorities among the obligations of the Company. 1 |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The Unaudited Consolidated Financial Statements include the accounts of Twenty-First Century Fox. All significant intercompany accounts and transactions have been eliminated in consolidation, including the intercompany portion of transactions with equity method investees |
Investments | Investments in and advances to entities or joint ventures in which the Company has significant influence, but less than a controlling voting interest, are accounted for using the equity method. Investments in which the Company has no significant influence are designated as available-for-sale investments if readily determinable market values are available. If an investment’s fair value is not readily determinable, the Company accounts for its investment at cost. |
Use of Estimates | The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts that are reported in the consolidated financial statements and accompanying disclosures. Actual results may differ from those estimates. |
Reclassifications and Adjustments | Certain fiscal 2016 amounts have been reclassified to conform to the fiscal 2017 presentation. Unless indicated otherwise, the information in the notes to the Unaudited Consolidated Financial Statements relates to the Company’s continuing operations. |
Recently Adopted and Recently Issued Accounting Guidance | Recently Adopted and Recently Issued Accounting Guidance Adopted In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, “Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). To simplify the presentation of debt issuance costs, ASU 2015-03 requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. On July 1, 2016, the Company adopted ASU 2015-03 on a retrospective basis (See Note 6 – Borrowings). Issued In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for the Company for annual and interim reporting periods beginning July 1, 2018. The Company is currently evaluating the impact ASU 2016-15 will have on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory” (“ASU 2016-16”). ASU 2016-16 requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory. ASU 2016-16 is effective for the Company for annual and interim reporting periods beginning July 1, 2018. The Company is currently evaluating the impact ASU 2016-16 will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business” (“ASU 2017-01”). The objective of ASU 2017-01 is to clarify the definition of a business in order to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. ASU 2017-01 is effective for the Company for annual and interim reporting periods beginning July 1, 2018. The Company is currently evaluating the impact ASU 2017-01 will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles–Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). The objective of ASU 2017-04 is to simplify how an entity is required to test goodwill for impairment. Under current GAAP, entities are required to test goodwill for impairment using a two-step approach. Under the amendments in ASU 2017-04, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. ASU 2017-04 is effective for the Company for annual and interim reporting periods beginning July 1, 2020. The Company is currently evaluating the impact ASU 2017-04 will have on its consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, “Compensation–Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”). ASU 2017-07 requires an employer to report the service cost component of net benefit cost in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. In addition, ASU 2017-07 allows only the service cost component to be eligible for capitalization when applicable. ASU 2017-07 is effective for the Company for annual and interim reporting periods beginning July 1, 2018. Early adoption is permitted from July 1, 2017. The Company is currently evaluating the impact ASU 2017-07 will have on its consolidated financial statements. 1 |
Concentrations of Credit Risk | Concentrations of Credit Risk Cash and cash equivalents are maintained with several financial institutions. The Company has deposits held with banks that exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions of reputable credit and, therefore, bear minimal credit risk. The Company’s receivables did not represent significant concentrations of credit risk as of March 31, 2017 or June 30, 2016 due to the wide variety of customers, markets and geographic areas to which the Company’s products and services are sold. The Company monitors its positions with, and the credit quality of, the financial institutions which are counterparties to its financial instruments. The Company is exposed to credit loss in the event of nonperformance by the counterparties to the agreements. As of March 31, 2017, the Company did not anticipate nonperformance by any of the counterparties. |
Receivables, Net | Receivables are presented net of an allowance for returns and doubtful accounts, which is an estimate of amounts that may not be collectible. |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | The Company’s inventories were comprised of the following: As of March 31, 2017 As of June 30, 2016 (in millions) Programming rights and other (a) $ 6,763 $ 6,359 Filmed entertainment costs Films Released or completed 1,320 1,569 In production 1,213 825 In development or preproduction 265 196 - 2,798 2,590 Television productions Released 1,109 1,067 In production, development or preproduction 473 316 1,582 1,383 Total filmed entertainment costs, less accumulated amortization (b) 4,380 3,973 Total inventories, net 11,143 10,332 Less: current portion of inventories, net (c) (3,418 ) (3,291 ) Total non-current inventories, net $ 7,725 $ 7,041 (a) Other includes DVDs, Blu-rays and other merchandise. (b) Does not include $249 million and $273 million of net intangible film library costs as of March 31, 2017 and June 30, 2016, respectively, which were included in intangible assets subject to amortization in the Consolidated Balance Sheets. (c) Current portion of inventories, net as of March 31, 2017 and June 30, 2016 was comprised of programming rights ($3,337 million and $3,212 million, respectively), DVDs, Blu-rays and other merchandise. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Investments [Abstract] | |
Schedule of Investments | The Company’s investments were comprised of the following: Ownership percentage as of March 31, 2017 As of March 31, 2017 As of June 30, 2016 (in millions) Sky (a)(b) European direct broadcast satellite operator 39% $ 2,919 $ 2,972 Endemol Shine Group (b) Global multi-platform content provider 50% 264 445 Other investments various 496 446 Total investments $ 3,679 $ 3,863 (a) The Company’s investment in Sky had a market value of $8.2 billion as of March 31, 2017 determined using its quoted market price on the London Stock Exchange (a Level 1 measurement as defined in Note 5 – Fair Value). (b) Equity method investment. |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Fair Value of Financial Assets (Liabilities) and the Level Used to Measure Them | The tables below present information about financial assets and liabilities carried at fair value on a recurring basis. As of March 31, 2017 and June 30, 2016, there were no assets or liabilities in the Level 1 category. Fair value measurements As of March 31, 2017 Total Level 2 Level 3 (in millions) Assets Derivatives (a) $ 47 $ 47 $ - Other (b) 30 - 30 Liabilities Derivatives (a) (22 ) (22 ) - Redeemable noncontrolling interests (619 ) - (619 ) Total $ (564 ) $ 25 $ (589 ) As of June 30, 2016 Total Level 2 Level 3 (in millions) Assets Derivatives (a) $ 6 $ 6 $ - Liabilities Derivatives (a) (50 ) (50 ) - Other (b) (36 ) - (36 ) Redeemable noncontrolling interests (552 ) - (552 ) Total $ (632 ) $ (44 ) $ (588 ) (a) Represents derivatives associated with the Company’s foreign currency forward and option contracts and interest rate swap contracts. (b) Primarily relates to past acquisitions, including contingent consideration arrangements. |
Schedule of Fair Value and Carrying Value of Borrowings | The carrying value of the Company’s financial instruments, such as cash and cash equivalents, receivables, payables and cost method investments, approximates fair value. As of March 31, 2017 As of June 30, 2016 (in millions) Borrowings Fair value $ 23,141 $ 23,986 Carrying value $ 19,896 $ 19,553 |
Foreign Currency Contracts | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Schedule of Financial Instruments Used to Hedge Certain Exposures | The Company uses foreign currency forward contracts primarily to hedge certain exposures to foreign currency exchange rate risks associated with revenues and the cost of producing or acquiring films and television programming. The Company also entered into a foreign currency option contract to limit its foreign currency exchange rate risk in connection with the Proposed Sky Acquisition. For accounting purposes, the option contract does not qualify for hedge accounting and therefore has been treated as an economic hedge (See Note 2 – Acquisitions, Disposals and Other Transactions under the heading “Sky”). As of March 31, 2017 As of June 30, 2016 (in millions) Cash Flow Hedges Notional amount $ 179 $ 409 Fair value $ (18 ) $ (25 ) For foreign currency forward contracts designated as cash flow hedges, the Company expects to reclassify the cumulative changes in fair values, included in Accumulated other comprehensive loss, within the next two years. As of March 31, 2017 As of June 30, 2016 (in millions) Economic Hedges Notional amount (a) $ 12,370 $ 44 Fair value (a) $ 42 $ - (a) Includes the foreign currency option contract to limit the foreign currency exchange rate risk in connection with the Proposed Sky Acquisition. The foreign currency option contract has a notional amount of $12.3 billion and consists of the foreign currency option and a premium payable of approximately $175 million due on the option expiration date. As of March 31, 2017, the foreign currency option had a fair value of $42 million. |
Interest Rate Swap Contracts | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Schedule of Financial Instruments Used to Hedge Certain Exposures | The Company uses interest rate swap contracts to hedge certain exposures to interest rate risks associated with certain borrowings. As of March 31, 2017 As of June 30, 2016 (in millions) Cash Flow Hedges Notional amount $ 676 $ 701 Fair value $ 1 $ (19 ) |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | As of March 31, 2017 As of June 30, 2016 (in millions) Bank loans $ 1,337 $ 1,446 Public debt Predecessor indentures 10,179 10,579 Senior notes issued under August 2009 indenture 8,550 7,700 Total public debt 18,729 18,279 Total principal amount 20,066 19,725 Less: unamortized discount and debt issuance costs (a) (170 ) (172 ) Total borrowings 19,896 19,553 Less: current borrowings (107 ) (427 ) Non-current borrowings $ 19,789 $ 19,126 (a) The adoption of ASU 2015-03 resulted in a $172 million decrease in Other non-current assets and Non-current Borrowings in the Consolidated Balance Sheet as of June 30, 2016. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Stockholders Equity Note [Abstract] | |
Schedule of Changes in Stockholders' Equity | The following tables summarize changes in stockholders’ equity: For the three months ended March 31, 2017 For the nine months ended March 31, 2017 Twenty-First Century Fox stockholders Noncontrolling interests Total equity Twenty-First Century Fox stockholders Noncontrolling interests Total equity (in millions) Balance, beginning of period $ 14,340 $ 1,215 $ 15,555 $ 13,661 $ 1,220 $ 14,881 Net income 799 28 (a) 827 2,476 105 (a) 2,581 Other comprehensive income (loss) 187 4 191 (51 ) (16 ) (67 ) Issuance (cancellation) of shares, net 1 - 1 (527 ) - (527 ) Dividends declared (333 ) - (333 ) (668 ) - (668 ) Other 23 (12 ) (b) 11 126 (74 ) (b) 52 Balance, end of period $ 15,017 $ 1,235 $ 16,252 $ 15,017 $ 1,235 $ 16,252 For the three months ended March 31, 2016 For the nine months ended March 31, 2016 Twenty-First Century Fox stockholders Noncontrolling interests Total equity Twenty-First Century Fox stockholders Noncontrolling interests Total equity (in millions) Balance, beginning of period $ 14,504 $ 991 $ 15,495 $ 17,220 $ 966 $ 18,186 Net income 841 48 (a) 889 2,188 126 (a) 2,314 Other comprehensive income (loss) 74 - 74 (295 ) - (295 ) Cancellation of shares, net (740 ) - (740 ) (3,897 ) - (3,897 ) Dividends declared (287 ) - (287 ) (586 ) - (586 ) Other 79 40 (b) 119 (159 ) (13 ) (b) (172 ) - Balance, end of period $ 14,471 $ 1,079 $ 15,550 $ 14,471 $ 1,079 $ 15,550 (a) Net income attributable to noncontrolling interests excludes $43 million and $36 million for the three months ended March 31, 2017 and 2016, respectively, and $113 million and $96 million for the nine months ended March 31, 2017 and 2016, respectively, relating to redeemable noncontrolling interests which are reflected in temporary equity. (b) Other activity attributable to noncontrolling interests excludes $(2) million and $(142) million for the three months ended March 31, 2017 and 2016, respectively, and $(46) million and $(206) million for the nine months ended March 31, 2017 and 2016, respectively, relating to redeemable noncontrolling interests. |
Schedule of Activity within Other Comprehensive Income (Loss) | The following tables summarize the activity within Other comprehensive income (loss): For the three months ended March 31, 2017 For the nine months ended March 31, 2017 Before tax Tax (provision) benefit Net of tax Before tax Tax (provision) benefit Net of tax (in millions) Foreign currency translation adjustments Unrealized gains (losses) $ 111 $ - $ 111 $ (40 ) $ - $ (40 ) Other comprehensive income (loss) $ 111 $ - $ 111 $ (40 ) $ - $ (40 ) Cash flow hedges Unrealized gains $ 1 $ - $ 1 $ 14 $ (5 ) $ 9 Amount reclassified on hedging activity (a) 9 (4 ) 5 16 (6 ) 10 Other comprehensive income $ 10 $ (4 ) $ 6 $ 30 $ (11 ) $ 19 Benefit plan adjustments Unrealized gains (b) $ 104 $ (38 ) $ 66 $ 104 $ (38 ) $ 66 Reclassification adjustments realized in net income (c) 13 (5 ) 8 81 (30 ) 51 Other comprehensive income $ 117 $ (43 ) $ 74 $ 185 $ (68 ) $ 117 Equity method investments Unrealized gains (losses) and reclassifications $ 5 $ (5 ) $ - $ (218 ) $ 55 $ (163 ) Other comprehensive income (loss) $ 5 $ (5 ) $ - $ (218 ) $ 55 $ (163 ) For the three months ended March 31, 2016 For the nine months ended March 31, 2016 Before tax Tax (provision) benefit Net of tax Before tax Tax (provision) benefit Net of tax (in millions) Foreign currency translation adjustments Unrealized gains (losses) $ 42 $ - $ 42 $ (125 ) $ 2 $ (123 ) Other comprehensive income (loss) $ 42 $ - $ 42 $ (125 ) $ 2 $ (123 ) Cash flow hedges Unrealized losses $ (40 ) $ 15 $ (25 ) $ (19 ) $ 7 $ (12 ) Amount reclassified on hedging activity (a) 11 (6 ) 5 14 (6 ) 8 Other comprehensive loss $ (29 ) $ 9 $ (20 ) $ (5 ) $ 1 $ (4 ) Losses on securities Amount reclassified on sale of securities (d) $ - $ - $ - $ (7 ) $ 3 $ (4 ) Other comprehensive loss $ - $ - $ - $ (7 ) $ 3 $ (4 ) Benefit plan adjustments Unrealized losses $ - $ - $ - $ (2 ) $ - $ (2 ) Reclassification adjustments realized in net income (c) 9 (4 ) 5 26 (9 ) 17 Other comprehensive income $ 9 $ (4 ) $ 5 $ 24 $ (9 ) $ 15 Equity method investments Unrealized gains (losses) and reclassifications $ 56 $ (9 ) $ 47 $ (154 ) $ (25 ) $ (179 ) Other comprehensive income (loss) $ 56 $ (9 ) $ 47 $ (154 ) $ (25 ) $ (179 ) (a) Reclassifications of amounts related to hedging activity are included in Revenues, Operating expenses, Selling, general and administrative expenses, Interest expense, net or Other, net, as appropriate, in the Unaudited Consolidated Statements of Operations for the three and nine months ended March 31, 2017 and 2016 (See Note 5 – Fair Value for additional information regarding hedging activity). (b) For the three and nine months ended March 31, 2017, the Company recorded a net unrealized actuarial gain from the remeasurement of its pension plan. (c) Reclassifications of amounts related to benefit plan adjustments are included in Selling, general and administrative expenses or Other, net, as appropriate, in the Unaudited Consolidated Statements of Operations for the three and nine months ended March 31, 2017 and 2016. (d) Reclassifications of amounts related to gains and losses on securities are included in Other, net in the |
Computation of Numerator for Earnings Per Share | The following table sets forth the Company’s computation of Income from continuing operations attributable to Twenty-First Century Fox stockholders: For the three months ended March 31, For the nine months ended March 31, 2017 2016 2017 2016 (in millions) Income from continuing operations $ 882 $ 928 $ 2,713 $ 2,418 Less: Net income attributable to noncontrolling interests (71 ) (84 ) (218 ) (222 ) Income from continuing operations attributable to Twenty-First Century Fox stockholders $ 811 $ 844 $ 2,495 $ 2,196 |
Schedule of Dividends Declared | The following table summarizes the dividends declared per share on both the Company’s Class A Common Stock and the Class B Common Stock: For the three months ended March 31, For the nine months ended March 31, 2017 2016 2017 2016 Cash dividend per share $ 0.18 $ 0.15 $ 0.36 $ 0.30 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Equity-Based Compensation | The following table summarizes the Company’s equity-based compensation activity: For the three months ended March 31, For the nine months ended March 31, 2017 2016 2017 2016 (in millions) Equity-based compensation $ 35 $ 34 $ 97 $ 158 Intrinsic value of all settled equity-based awards $ 1 $ 2 $ 70 $ 192 = Tax benefit on vested equity-based awards $ - $ - $ 25 $ 69 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation from Income from Continuing Operations Before Income Tax Expense to Total Segment OIBDA | The following table reconciles Income from continuing operations before income tax expense to Total Segment OIBDA for the three and nine months ended March 31, 2017 and 2016: For the three months ended March 31, For the nine months ended March 31, 2017 2016 2017 2016 (in millions) Income from continuing operations before income tax expense $ 1,252 $ 1,391 $ 3,874 $ 3,608 Add Amortization of cable distribution investments 15 18 46 53 Depreciation and amortization 140 133 410 391 Impairment and restructuring charges 37 15 213 46 Equity losses (earnings) of affiliates 51 9 57 (38 ) Interest expense, net 310 295 909 888 Interest income (9 ) (12 ) (27 ) (28 ) Other, net 142 32 241 226 Total Segment OIBDA $ 1,938 $ 1,881 $ 5,723 $ 5,146 |
Reconciliation of Revenues and Segment OIBDA from Segments to Consolidated | The following tables set forth the Company’s Revenues and Segment OIBDA for the three and nine months ended March 31, 2017 and 2016: For the three months ended March 31, For the nine months ended March 31, 2017 2016 2017 2016 (in millions) Revenues Cable Network Programming $ 4,024 $ 3,941 $ 11,801 $ 11,108 Television 1,690 1,299 4,646 4,064 Filmed Entertainment 2,256 2,321 6,432 6,467 Other, Corporate and Eliminations (406 ) (333 ) (1,127 ) (959 ) Total revenues $ 7,564 $ 7,228 $ 21,752 $ 20,680 Segment OIBDA Cable Network Programming $ 1,446 $ 1,375 $ 4,160 $ 3,931 Television 190 125 757 600 Filmed Entertainment 373 470 1,073 921 Other, Corporate and Eliminations (71 ) (89 ) (267 ) (306 ) Total Segment OIBDA $ 1,938 $ 1,881 $ 5,723 $ 5,146 |
Reconciliation of Depreciation and Amortization from Segments to Consolidated | For the three months ended March 31, For the nine months ended March 31, 2017 2016 2017 2016 (in millions) Depreciation and amortization Cable Network Programming $ 87 $ 79 $ 252 $ 229 Television 28 29 85 88 Filmed Entertainment 19 20 59 60 Other, Corporate and Eliminations 6 5 14 14 Total depreciation and amortization $ 140 $ 133 $ 410 $ 391 |
Reconciliation of Assets from Segments to Consolidated | As of March 31, 2017 As of June 30, 2016 (in millions) Assets Cable Network Programming $ 25,090 $ 24,974 Television 7,247 6,959 Filmed Entertainment 10,695 9,579 Other, Corporate and Eliminations 3,973 2,818 Investments 3,679 3,863 Total assets $ 50,684 $ 48,193 |
Reconciliation of Revenue from Components to Consolidated | Revenues by Component For the three months ended March 31, For the nine months ended March 31, 2017 2016 2017 2016 (in millions) Revenues Affiliate fees $ 3,160 $ 2,939 $ 8,989 $ 8,321 Advertising 2,203 1,907 6,338 5,950 Content 2,078 2,288 5,979 6,046 Other 123 94 446 363 Total revenues $ 7,564 $ 7,228 $ 21,752 $ 20,680 |
Additional Financial Informat28
Additional Financial Information (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Components of Other, net | The following table sets forth the components of Other, net included in the Unaudited Consolidated Statements of Operations: For the three months ended March 31, For the nine months ended March 31, 2017 2016 2017 2016 (in millions) Acquisition related and other transaction costs (a) $ (137 ) $ - $ (170 ) $ (66 ) Investment impairment losses (b) - - - (99 ) Other (c) (5 ) (32 ) (71 ) (61 ) Total other, net $ (142 ) $ (32 ) $ (241 ) $ (226 ) (a) The acquisition related and other transaction costs for the three and nine months ended March 31, 2017 primarily represent the change in fair value of a foreign currency option contract to limit the foreign currency exchange rate risk in connection with the Proposed Sky Acquisition (See Note 2 – Acquisitions, Disposals and Other Transactions under the heading “Sky” for further discussion). The acquisition related costs for the nine months ended March 31, 2016 are primarily due to the revision of a contingency estimate related to a past acquisition. (b) See Note 7 – Investments in the 2016 Form 10-K under the heading “Other” for further discussion. (c) Other for the three and nine months ended March 31, 2017 included approximately $10 million and $45 million, respectively, of costs related to settlements of pending and potential litigations following the July 2016 resignation of the Chairman and CEO of Fox News Channel after a public complaint was filed containing allegations of sexual harassment. |
Supplemental Cash Flows Information | For the nine months ended March 31, 2017 2016 (in millions) Supplemental cash flows information Cash paid for income taxes $ (747 ) $ (586 ) Cash paid for interest $ (890 ) $ (873 ) Supplemental information on acquisitions and additional investments Fair value of assets acquired $ - $ 1,199 Cash acquired - 8 Liabilities assumed - (110 ) Cash paid - (916 ) Fair value of equity instruments issued to third parties (a) - 181 Issuance of subsidiary common units - (181 ) Fair value of equity instruments consideration $ - $ - (a) Includes Redeemable noncontrolling interests. |
Supplemental Guarantor Inform29
Supplemental Guarantor Information (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Supplemental Condensed Consolidating Statements of Operations | TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Statement of Operations For the three months ended March 31, 2017 (in millions) 21st Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries Revenues $ 1 $ - $ 7,563 $ - $ 7,564 Expenses (90 ) - (5,728 ) - (5,818 ) Equity losses of affiliates - - (51 ) - (51 ) Interest expense, net (423 ) (195 ) (19 ) 327 (310 ) Interest income 1 3 332 (327 ) 9 Earnings from subsidiary entities 1,883 1,002 - (2,885 ) - Other, net (140 ) 1 (3 ) - (142 ) Income from continuing operations before income tax expense 1,232 811 2,094 (2,885 ) 1,252 Income tax expense (365 ) - (620 ) 615 (370 ) Income from continuing operations 867 811 1,474 (2,270 ) 882 Loss from discontinued operations, net of tax - (12 ) - - (12 ) Net income 867 799 1,474 (2,270 ) 870 Less: Net income attributable to noncontrolling interests - - (71 ) - (71 ) Net income attributable to Twenty-First Century Fox stockholders $ 867 $ 799 $ 1,403 $ (2,270 ) $ 799 Comprehensive income attributable to Twenty-First Century Fox stockholders $ 1,005 $ 986 $ 1,578 $ (2,583 ) $ 986 TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Statement of Operations For the three months ended March 31, 2016 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries Revenues $ 1 $ - $ 7,227 $ - $ 7,228 Expenses (88 ) - (5,425 ) - (5,513 ) Equity losses of affiliates (1 ) - (8 ) - (9 ) Interest expense, net (408 ) (179 ) (17 ) 309 (295 ) Interest income 5 1 315 (309 ) 12 Earnings from subsidiary entities 1,570 1,022 - (2,592 ) - Other, net (6 ) - (26 ) - (32 ) Income from continuing operations before income tax expense 1,073 844 2,066 (2,592 ) 1,391 Income tax expense (358 ) - (689 ) 584 (463 ) Income from continuing operations 715 844 1,377 (2,008 ) 928 Loss from discontinued operations, net of tax - (3 ) - - (3 ) Net income 715 841 1,377 (2,008 ) 925 Less: Net income attributable to noncontrolling interests - - (84 ) - (84 ) Net income attributable to Twenty-First Century Fox stockholders $ 715 $ 841 $ 1,293 $ (2,008 ) $ 841 Comprehensive income attributable to Twenty-First Century Fox stockholders $ 703 $ 915 $ 1,415 $ (2,118 ) $ 915 TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Statement of Operations For the nine months ended March 31, 2017 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries Revenues $ 1 $ - $ 21,751 $ - $ 21,752 Expenses (328 ) - (16,370 ) - (16,698 ) Equity losses of affiliates (1 ) - (56 ) - (57 ) Interest expense, net (1,246 ) (572 ) (58 ) 967 (909 ) Interest income 3 4 987 (967 ) 27 Earnings from subsidiary entities 5,358 3,062 - (8,420 ) - Other, net (226 ) 1 (16 ) - (241 ) Income from continuing operations before income tax expense 3,561 2,495 6,238 (8,420 ) 3,874 Income tax expense (1,067 ) - (1,870 ) 1,776 (1,161 ) Income from continuing operations 2,494 2,495 4,368 (6,644 ) 2,713 Loss from discontinued operations, net of tax - (19 ) - - (19 ) Net income 2,494 2,476 4,368 (6,644 ) 2,694 Less: Net income attributable to noncontrolling interests - - (218 ) - (218 ) Net income attributable to Twenty-First Century Fox stockholders $ 2,494 $ 2,476 $ 4,150 $ (6,644 ) $ 2,476 Comprehensive income attributable to Twenty-First Century Fox stockholders $ 2,249 $ 2,425 $ 4,011 $ (6,260 ) $ 2,425 TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Statement of Operations For the nine months ended March 31, 2016 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries Revenues $ 1 $ - $ 20,679 $ - $ 20,680 Expenses (283 ) - (15,741 ) - (16,024 ) Equity (losses) earnings of affiliates (2 ) - 40 - 38 Interest expense, net (1,212 ) (532 ) (56 ) 912 (888 ) Interest income 6 3 931 (912 ) 28 Earnings from subsidiary entities 4,803 2,725 - (7,528 ) - Other, net (114 ) - (112 ) - (226 ) - Income from continuing operations before income tax expense 3,199 2,196 5,741 (7,528 ) 3,608 Income tax expense (1,055 ) - (1,894 ) 1,759 (1,190 ) - Income from continuing operations 2,144 2,196 3,847 (5,769 ) 2,418 Loss from discontinued operations, net of tax - (8 ) - - (8 ) - Net income 2,144 2,188 3,847 (5,769 ) 2,410 Less: Net income attributable to noncontrolling interests - - (222 ) - (222 ) - Net income attributable to Twenty-First Century Fox stockholders $ 2,144 $ 2,188 $ 3,625 $ (5,769 ) $ 2,188 $ - Comprehensive income attributable to Twenty-First Century Fox stockholders $ 1,657 $ 1,893 $ 3,301 $ (4,958 ) $ 1,893 |
Supplemental Condensed Consolidating Balance Sheets | TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Balance Sheet As of March 31, 2017 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries ASSETS Current assets Cash and cash equivalents $ 49 $ 4,166 $ 1,357 $ - $ 5,572 Receivables, net 13 - 7,207 (1 ) 7,219 Inventories, net - - 3,418 - 3,418 Other 67 - 462 - 529 Total current assets 129 4,166 12,444 (1 ) 16,738 Non-current assets Receivables, net 15 - 523 - 538 Inventories, net - - 7,725 - 7,725 Property, plant and equipment, net 230 - 1,461 - 1,691 Intangible assets, net - - 6,579 - 6,579 Goodwill - - 12,733 - 12,733 Other non-current assets 252 - 749 - 1,001 Investments Investments in associated companies and other investments 174 37 3,468 - 3,679 Intragroup investments 104,343 58,994 - (163,337 ) - Total investments 104,517 59,031 3,468 (163,337 ) 3,679 Total assets $ 105,143 $ 63,197 $ 45,682 $ (163,338 ) $ 50,684 LIABILITIES AND EQUITY Current liabilities Borrowings $ - $ - $ 107 $ - $ 107 Other current liabilities 620 386 6,344 (1 ) 7,349 Total current liabilities 620 386 6,451 (1 ) 7,456 Non-current liabilities Borrowings 18,563 - 1,226 - 19,789 Other non-current liabilities 535 - 6,033 - 6,568 Intercompany 38,926 47,794 (86,720 ) - - Redeemable noncontrolling interests - - 619 - 619 Total equity 46,499 15,017 118,073 (163,337 ) 16,252 Total liabilities and equity $ 105,143 $ 63,197 $ 45,682 $ (163,338 ) $ 50,684 TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Balance Sheet As of June 30, 2016 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries ASSETS Current assets Cash and cash equivalents $ 661 $ 2,019 $ 1,744 $ - $ 4,424 Receivables, net 20 - 6,239 (1 ) 6,258 Inventories, net - - 3,291 - 3,291 Other 13 - 963 - 976 Total current assets 694 2,019 12,237 (1 ) 14,949 Non-current assets Receivables, net 15 - 374 - 389 Inventories, net - - 7,041 - 7,041 Property, plant and equipment, net 213 - 1,479 - 1,692 Intangible assets, net - - 6,777 - 6,777 Goodwill - - 12,733 - 12,733 Other non-current assets 235 - 514 - 749 Investments Investments in associated companies and other investments 137 37 3,689 - 3,863 Intragroup investments 98,965 55,895 - (154,860 ) - Total investments 99,102 55,932 3,689 (154,860 ) 3,863 Total assets $ 100,259 $ 57,951 $ 44,844 $ (154,861 ) $ 48,193 LIABILITIES AND EQUITY Current liabilities Borrowings $ 400 $ - $ 27 $ - $ 427 Other current liabilities 489 144 6,009 (1 ) 6,641 Total current liabilities 889 144 6,036 (1 ) 7,068 Non-current liabilities Borrowings 17,712 - 1,414 - 19,126 Other non-current liabilities 605 - 5,961 - 6,566 Intercompany 37,838 44,146 (81,984 ) - - Redeemable noncontrolling interests - - 552 - 552 Total equity 43,215 13,661 112,865 (154,860 ) 14,881 Total liabilities and equity $ 100,259 $ 57,951 $ 44,844 $ (154,861 ) $ 48,193 |
Supplemental Condensed Consolidating Statements of Cash Flows | TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Statement of Cash Flows For the nine months ended March 31, 2017 (in millions) 21st Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries OPERATING ACTIVITIES Net cash (used in) provided by operating activities from continuing operations $ (884 ) $ 3,121 $ 181 $ - $ 2,418 INVESTING ACTIVITIES Property, plant and equipment (10 ) - (192 ) - (202 ) Investments (95 ) - (71 ) - (166 ) Net cash used in investing activities from continuing operations (105 ) - (263 ) - (368 ) FINANCING ACTIVITIES Borrowings 842 - 37 - 879 Repayment of borrowings (400 ) - (146 ) - (546 ) Repurchase of shares - (619 ) - - (619 ) Dividends paid and distributions - (335 ) (187 ) - (522 ) Other financing activities, net (44 ) (20 ) 1 - (63 ) Net cash provided by (used in) financing activities from continuing operations 398 (974 ) (295 ) - (871 ) Discontinued operations Net decrease in cash and cash equivalents from discontinued operations (21 ) - - - (21 ) Net (decrease) increase in cash and cash equivalents (612 ) 2,147 (377 ) - 1,158 Cash and cash equivalents, beginning of year 661 2,019 1,744 - 4,424 Exchange movement on cash balances - - (10 ) - (10 ) Cash and cash equivalents, end of period $ 49 $ 4,166 $ 1,357 $ - $ 5,572 TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Statement of Cash Flows For the nine months ended March 31, 2016 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries OPERATING ACTIVITIES Net cash (used in) provided by operating activities from continuing operations $ (585 ) $ 1,569 $ 1,028 $ - $ 2,012 INVESTING ACTIVITIES Property, plant and equipment (5 ) - (151 ) - (156 ) Investments (185 ) (586 ) (453 ) - (1,224 ) Net cash used in investing activities from continuing operations (190 ) (586 ) (604 ) - (1,380 ) FINANCING ACTIVITIES Borrowings 987 - 208 - 1,195 Repayment of borrowings (200 ) - (302 ) - (502 ) Repurchase of shares - (3,958 ) - - (3,958 ) Dividends paid and distributions - (299 ) (166 ) - (465 ) Purchase of subsidiary shares from noncontrolling interests - (56 ) (231 ) - (287 ) Other financing activities, net - 11 - - 11 Net cash provided by (used in) financing activities from continuing operations 787 (4,302 ) (491 ) - (4,006 ) Discontinued operations Net decrease in cash and cash equivalents from discontinued operations (15 ) - - - (15 ) Net decrease in cash and cash equivalents (3 ) (3,319 ) (67 ) - (3,389 ) Cash and cash equivalents, beginning of year 767 5,913 1,748 - 8,428 Exchange movement on cash balances - - (46 ) - (46 ) Cash and cash equivalents, end of period $ 764 $ 2,594 $ 1,635 $ - $ 4,993 |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) | 9 Months Ended |
Mar. 31, 2017Segment | |
Basis of Presentation [Abstract] | |
Number of Reportable Segments | 4 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) £ / shares in Units, $ in Millions | 1 Months Ended | 9 Months Ended | 11 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2016USD ($) | Dec. 31, 2016GBP (£) | Dec. 31, 2015USD ($) | Nov. 30, 2015USD ($) | Mar. 31, 2017 | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017£ / shares | Dec. 31, 2016GBP (£) | |
Business Acquisition [Line Items] | ||||||||||
Business acquisition, cost of acquired entity, cash paid | $ 916 | |||||||||
Purchase of subsidiary shares from noncontrolling interests | $ 287 | |||||||||
21st Century Fox America, Inc. | Bridge Credit Agreement | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 15,000 | £ 12,200,000,000 | ||||||||
Line of credit facility, commitment fee percentage on undrawn funds | 0.10% | 0.10% | ||||||||
Line of credit facility, duration fee payable on the 90th day after funding of the loans as a percentage of the aggregate principal amount of the advances and undrawn commitments outstanding at that time | 0.50% | 0.50% | ||||||||
Line of credit facility, duration fee payable on the 180th day after funding of the loans as a percentage of the aggregate principal amount of the advances and undrawn commitments outstanding at that time | 0.75% | 0.75% | ||||||||
Line of credit facility, duration fee payable on the 270th day after funding of the loans as a percentage of the aggregate principal amount of the advances and undrawn commitments outstanding at that time | 1.00% | 1.00% | ||||||||
21st Century Fox America, Inc. | Bridge Credit Agreement | London Interbank Offered Rate (LIBOR) | Minimum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Line of credit facility, applicable Margin on advances | 1.125% | 1.125% | ||||||||
21st Century Fox America, Inc. | Bridge Credit Agreement | London Interbank Offered Rate (LIBOR) | Maximum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Line of credit facility, applicable Margin on advances | 1.875% | 1.875% | ||||||||
National Geographic Partners | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash contributed to a consolidated subsidiary | $ 625 | |||||||||
Subsidiary Ownership Percentage | 73.00% | |||||||||
Purchase of subsidiary shares from noncontrolling interests | $ 55 | |||||||||
Scenario, Forecast | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Proceeds resulting from the Federal Communications Commission's recently completed reverse auction for broadcast spectrum | $ 350 | |||||||||
Sky | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership percentage | 39.00% | 39.00% | ||||||||
Date of acquisition agreement | Dec. 31, 2016 | |||||||||
Sky | Co-Operation Agreement | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Break fee payable in cash in certain circumstances | $ 250 | £ 200,000,000 | ||||||||
Sky | Scenario, Forecast | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Share price | £ / shares | £ 10.75 | |||||||||
Business acquisition, cost of acquired entity, cash paid | $ 15,000 | |||||||||
Business acquisition, expected to close on or before date | Dec. 31, 2017 | |||||||||
NGS Media Business | National Geographic Partners | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Effective Date of Acquisition | Nov. 30, 2015 | |||||||||
Business acquisition purchase price allocation amortizable intangible assets | 105 | |||||||||
Goodwill and other net assets | $ 60 | |||||||||
NGS Media Business | National Geographic Partners | Subscriber Relationships | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Useful life of amortizable intangible assets | 8 years | |||||||||
NGS Media Business | National Geographic Partners | Trademark License | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition purchase price allocation indefinite lived intangible assets | $ 510 | |||||||||
MAA Television Network | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition, cost of acquired entity, cash paid | $ 346 | |||||||||
Effective Date of Acquisition | Dec. 31, 2015 | |||||||||
Allocation of consideration transferred | 285 | |||||||||
Business acquisition purchase price allocation intangible assets other than goodwill | $ 90 | |||||||||
MAA Television Network | Multi-Channel Video Programming Distributor Affiliate Agreements and Relationships | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Useful life of amortizable intangible assets | 11 years | |||||||||
MAA Television Network | Advertiser Relationships | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Useful life of amortizable intangible assets | 8 years | |||||||||
MAA Television Network | Trade Names | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Useful life of amortizable intangible assets | 10 years |
Inventories, Net (Schedule of I
Inventories, Net (Schedule of Inventories, Net) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |||
Programming rights and other | [1] | $ 6,763 | $ 6,359 |
Films | |||
Released or completed | 1,320 | 1,569 | |
In production | 1,213 | 825 | |
In development or preproduction | 265 | 196 | |
Films, Total | 2,798 | 2,590 | |
Television productions | |||
Released | 1,109 | 1,067 | |
In production, development or preproduction | 473 | 316 | |
Television productions, Total | 1,582 | 1,383 | |
Total filmed entertainment costs, less accumulated amortization | [2] | 4,380 | 3,973 |
Total inventories, net | 11,143 | 10,332 | |
Less: current portion of inventories, net | [3] | (3,418) | (3,291) |
Total non-current inventories, net | $ 7,725 | $ 7,041 | |
[1] | Other includes DVDs, Blu-rays and other merchandise. | ||
[2] | Does not include $249 million and $273 million of net intangible film library costs as of March 31, 2017 and June 30, 2016, respectively, which were included in intangible assets subject to amortization in the Consolidated Balance Sheets. | ||
[3] | Current portion of inventories, net as of March 31, 2017 and June 30, 2016 was comprised of programming rights ($3,337 million and $3,212 million, respectively), DVDs, Blu-rays and other merchandise. |
Inventories, Net (Schedule of33
Inventories, Net (Schedule of Inventories, Net) (Parenthetical) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Jun. 30, 2016 | |
Inventory [Line Items] | |||
Current portion of inventories, net | [1] | $ 3,418 | $ 3,291 |
Acquired Film Libraries | |||
Inventory [Line Items] | |||
Intangible assets subject to amortization, net | 249 | 273 | |
Programming Rights | |||
Inventory [Line Items] | |||
Current portion of inventories, net | $ 3,337 | $ 3,212 | |
[1] | Current portion of inventories, net as of March 31, 2017 and June 30, 2016 was comprised of programming rights ($3,337 million and $3,212 million, respectively), DVDs, Blu-rays and other merchandise. |
Investments (Schedule of Invest
Investments (Schedule of Investments) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Jun. 30, 2016 | |
Investment Holdings [Line Items] | |||
Other investments | $ 496 | $ 446 | |
Total investments | $ 3,679 | 3,863 | |
Sky | |||
Investment Holdings [Line Items] | |||
Ownership percentage | [1],[2] | 39.00% | |
Equity method investments | [1],[2] | $ 2,919 | 2,972 |
Endemol Shine Group | |||
Investment Holdings [Line Items] | |||
Ownership percentage | [1] | 50.00% | |
Equity method investments | [1] | $ 264 | $ 445 |
[1] | Equity method investment. | ||
[2] | The Company’s investment in Sky had a market value of $8.2 billion as of March 31, 2017 determined using its quoted market price on the London Stock Exchange (a Level 1 measurement as defined in Note 5 – Fair Value). The Company received dividends of approximately $170 million and $210 million from Sky for the nine months ended March 31, 2017 and 2016, respectively. As part of the agreement for the Proposed Sky Acquisition, Sky will not pay any dividends in calendar year 2017 (See Note 2 – Acquisitions, Disposals and Other Transactions under the heading “Sky” for further discussion of this investment). |
Investments (Schedule of Inve35
Investments (Schedule of Investments) (Parenthetical) (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2017 | |
Investment Holdings [Line Items] | |||
Cash distributions received from affiliates | $ 182,000,000 | $ 225,000,000 | |
Sky | |||
Investment Holdings [Line Items] | |||
Cash distributions received from affiliates | 170,000,000 | $ 210,000,000 | |
Sky | Scenario, Forecast | |||
Investment Holdings [Line Items] | |||
Cash distributions received from affiliates | $ 0 | ||
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Sky | |||
Investment Holdings [Line Items] | |||
Market value of equity method investments | $ 8,200,000,000 |
Investments (Narratives) (Detai
Investments (Narratives) (Details) - Hulu | 1 Months Ended |
Aug. 31, 2016USD ($) | |
Investment Holdings [Line Items] | |
Equity Method Investment, percentage of equity interest issued | 10.00% |
Equity method investment, ownership percentage | 30.00% |
Equity method investment, put/call period | 36 months |
Maximum | |
Investment Holdings [Line Items] | |
Additional capital contribution required in the event the equity investee is required to fund the repurchase of shares | $ 300,000,000 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) | 9 Months Ended | |
Mar. 31, 2017 | Jun. 30, 2016 | |
Derivatives Fair Value [Line Items] | ||
Minority shareholder's put right exercisable period | As of March 31, 2017, one minority shareholder’s put right will become exercisable in July 2017 and two minority shareholders’ put rights will become exercisable in March 2018. The remaining redeemable noncontrolling interests are currently not exercisable. | |
Foreign Currency Cash Flow Hedges [Abstract] | ||
Number of years to reclassify the cumulative change in fair value of cash flow hedges, foreign currency forward and option contracts | 2 years | |
Interest Rate Cash Flow Hedges [Abstract] | ||
Number of years to reclassify the cumulative change in fair value of cash flow hedges, interest rate swap | 3 years | |
Fair value measurements recurring | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets and liability | $ (564,000,000) | $ (632,000,000) |
Fair value measurements recurring | Level 1 | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets and liability | $ 0 | $ 0 |
Fair Value (Schedule of Financi
Fair Value (Schedule of Financial Assets and Liabilities Carried at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Jun. 30, 2016 | |
Liabilities | |||
Redeemable noncontrolling interests | $ (619) | $ (552) | |
Fair value measurements recurring | |||
Assets | |||
Derivatives | [1] | 47 | 6 |
Other | [2] | 30 | |
Liabilities | |||
Derivatives | [1] | (22) | (50) |
Other | [2] | (36) | |
Redeemable noncontrolling interests | (619) | (552) | |
Total | (564) | (632) | |
Fair value measurements recurring | (Level 2) | |||
Assets | |||
Derivatives | [1] | 47 | 6 |
Liabilities | |||
Derivatives | [1] | (22) | (50) |
Total | 25 | (44) | |
Fair value measurements recurring | (Level 3) | |||
Assets | |||
Other | [2] | 30 | |
Liabilities | |||
Other | [2] | (36) | |
Redeemable noncontrolling interests | (619) | (552) | |
Total | $ (589) | $ (588) | |
[1] | Represents derivatives associated with the Company’s foreign currency forward and option contracts and interest rate swap contracts. | ||
[2] | Primarily relates to past acquisitions, including contingent consideration arrangements. |
Fair Value (Borrowings) (Detail
Fair Value (Borrowings) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Jun. 30, 2016 |
Fair Value Disclosures [Abstract] | ||
Fair value | $ 23,141 | $ 23,986 |
Carrying value | $ 19,896 | $ 19,553 |
Fair Value (Schedule of Finan40
Fair Value (Schedule of Financial Instruments Used to Hedge Certain Exposures to Foreign Currency Exchange Rate Risks) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Jun. 30, 2016 | |
Foreign Currency Forward Contracts | Cash Flow Hedges | Designated as Hedging Instrument | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | $ 179 | $ 409 | |
Fair value | (18) | (25) | |
Foreign Currency Contracts | Economic hedges | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | [1] | 12,370 | 44 |
Fair value | [1] | $ 42 | $ 0 |
[1] | Includes the foreign currency option contract to limit the foreign currency exchange rate risk in connection with the Proposed Sky Acquisition. The foreign currency option contract has a notional amount of $12.3 billion and consists of the foreign currency option and a premium payable of approximately $175 million due on the option expiration date. As of March 31, 2017, the foreign currency option had a fair value of $42 million. |
Fair Value (Schedule of Finan41
Fair Value (Schedule of Financial Instruments Used to Hedge Certain Exposures to Foreign Currency Exchange Rate Risks) (Parenthetical) (Details) - Foreign Currency Option Contract - Economic hedges - Sky $ in Millions | Mar. 31, 2017USD ($) |
Derivatives Fair Value [Line Items] | |
Notional amount | $ 12,300 |
Foreign currency option premium payable | 175 |
Fair value | $ 42 |
Fair Value (Schedule of Finan42
Fair Value (Schedule of Financial Instruments Used to Hedge Certain Exposures to Interest Rate Risks) (Details) - Interest Rate Swap Contracts - Cash Flow Hedges - Designated as Hedging Instrument - USD ($) $ in Millions | Mar. 31, 2017 | Jun. 30, 2016 |
Derivatives Fair Value [Line Items] | ||
Notional amount | $ 676 | $ 701 |
Fair value | $ 1 | $ (19) |
Borrowings (Schedule of Borrowi
Borrowings (Schedule of Borrowings) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Jun. 30, 2016 | |
Debt Instrument [Line Items] | |||
Total principal amount | $ 20,066 | $ 19,725 | |
Less: unamortized discount and debt issuance cost | [1] | (170) | (172) |
Total borrowings | 19,896 | 19,553 | |
Less: current borrowings | (107) | (427) | |
Non-current borrowings | 19,789 | 19,126 | |
Bank loans | |||
Debt Instrument [Line Items] | |||
Total principal amount | 1,337 | 1,446 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Total principal amount | 18,729 | 18,279 | |
Senior Notes | Public debt - Predecessor indentures | |||
Debt Instrument [Line Items] | |||
Total principal amount | 10,179 | 10,579 | |
Senior Notes | Public debt - Senior notes issued under August 2009 indenture | |||
Debt Instrument [Line Items] | |||
Total principal amount | $ 8,550 | $ 7,700 | |
[1] | The adoption of ASU 2015-03 resulted in a $172 million decrease in Other non-current assets and Non-current Borrowings in the Consolidated Balance Sheet as of June 30, 2016. |
Borrowings (Schedule of Borro44
Borrowings (Schedule of Borrowings) (Parenthetical) (Details) $ in Millions | Jun. 30, 2016USD ($) |
ASU 2015-03 | |
Debt Instrument [Line Items] | |
Decrease in other non-current assets and non-current borrowings in the consolidated balance sheet as a result of the adoption of an accounting standard update | $ 172 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) | 1 Months Ended | 9 Months Ended | ||
Nov. 30, 2016USD ($) | Oct. 31, 2016USD ($) | Mar. 31, 2017USD ($) | Dec. 22, 2016USD ($)OneYearPeriods | |
21st Century Fox America, Inc. | Revolving Credit Facility | Credit Facility $1.4 Billion Due May 2020 | ||||
Debt Instrument [Line Items] | ||||
Credit facility, agreement date | May 31, 2015 | |||
Limit on revolving credit facility | $ 1,400,000,000 | |||
Sub-limit for maximum amount of letters of credit issuable under revolving credit facility | 250,000,000 | |||
Secured credit facility, maturity date | May 31, 2020 | |||
Maximum borrowing capacity under the credit facility | $ 2,000,000,000 | |||
Maturity extension number of one year periods | OneYearPeriods | 2 | |||
Line of credit facility, commitment fee percentage | 0.125% | |||
Premium over LIBOR for initial drawn cost on borrowings on unsecured revolving credit facility (percentage) | 1.125% | |||
Senior Notes | 3.375% Due 2026 | 21st Century Fox America, Inc. | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 450,000,000 | |||
Stated interest rate of debt instrument | 3.375% | |||
Senior notes, maturity year | 2,026 | |||
Senior Notes | 4.750% Due 2046 | 21st Century Fox America, Inc. | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 400,000,000 | |||
Stated interest rate of debt instrument | 4.75% | |||
Senior notes, maturity year | 2,046 | |||
Senior Notes | 3.375% Due 2026 and 4.750% Due 2046 | 21st Century Fox America, Inc. | ||||
Debt Instrument [Line Items] | ||||
Net proceeds from issuance of senior notes | $ 842,000,000 | |||
Senior Notes | 8.00% Due 2016 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate of debt instrument | 8.00% | |||
Senior notes retired | $ 400,000,000 | |||
Term Loans | Yankees Entertainment and Sports Network | ||||
Debt Instrument [Line Items] | ||||
Principal payment | $ 107,000,000 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Changes in Stockholders' Equity) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | ||
Increase (Decrease) in Stockholders' Equity | |||||
Balance, beginning of period | $ 15,555 | $ 15,495 | $ 14,881 | $ 18,186 | |
Net income | 827 | 889 | 2,581 | 2,314 | |
Other comprehensive income (loss) | 191 | 74 | (67) | (295) | |
Issuance (cancellation) of shares, net | 1 | (740) | (527) | (3,897) | |
Dividends declared | (333) | (287) | (668) | (586) | |
Other | 11 | 119 | 52 | (172) | |
Balance, end of period | 16,252 | 15,550 | 16,252 | 15,550 | |
Twenty-First Century Fox stockholders | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balance, beginning of period | 14,340 | 14,504 | 13,661 | 17,220 | |
Net income | 799 | 841 | 2,476 | 2,188 | |
Other comprehensive income (loss) | 187 | 74 | (51) | (295) | |
Issuance (cancellation) of shares, net | 1 | (740) | (527) | (3,897) | |
Dividends declared | (333) | (287) | (668) | (586) | |
Other | 23 | 79 | 126 | (159) | |
Balance, end of period | 15,017 | 14,471 | 15,017 | 14,471 | |
Noncontrolling Interests | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balance, beginning of period | 1,215 | 991 | 1,220 | 966 | |
Net income | [1] | 28 | 48 | 105 | 126 |
Other comprehensive income (loss) | 4 | (16) | |||
Other | [2] | (12) | 40 | (74) | (13) |
Balance, end of period | $ 1,235 | $ 1,079 | $ 1,235 | $ 1,079 | |
[1] | Net income attributable to noncontrolling interests excludes $43 million and $36 million for the three months ended March 31, 2017 and 2016, respectively, and $113 million and $96 million for the nine months ended March 31, 2017 and 2016, respectively, relating to redeemable noncontrolling interests which are reflected in temporary equity. | ||||
[2] | Other activity attributable to noncontrolling interests excludes $(2) million and $(142) million for the three months ended March 31, 2017 and 2016, respectively, and $(46) million and $(206) million for the nine months ended March 31, 2017 and 2016, respectively, relating to redeemable noncontrolling interests. |
Stockholders' Equity (Schedul47
Stockholders' Equity (Schedule of Changes in Stockholders' Equity) (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Temporary Equity Disclosure | ||||
Net income attributable to redeemable noncontrolling interests | $ 43 | $ 36 | $ 113 | $ 96 |
Other activity attributable to redeemable noncontrolling interests | $ (2) | $ (142) | $ (46) | $ (206) |
Stockholders' Equity (Other Com
Stockholders' Equity (Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | ||||
Foreign currency translation adjustments | |||||||
Unrealized gains (losses) on foreign currency translation, before reclassification adjustment, before tax | $ 111 | $ 42 | $ (40) | $ (125) | |||
Other comprehensive income (loss) on foreign currency translation adjustments, before tax | 111 | 42 | (40) | (125) | |||
Unrealized gains (losses) on foreign currency translation, before reclassification adjustment, tax | 0 | 0 | 2 | ||||
Other comprehensive income (loss) on foreign currency translation adjustments, tax | 0 | 0 | 0 | 2 | |||
Unrealized gains (losses) on foreign currency translation, before reclassification adjustment, net of tax | 111 | 42 | (40) | (123) | |||
Other comprehensive income (loss) on foreign currency translation adjustments, net of tax | 111 | 42 | (40) | (123) | |||
Cash flow hedges | |||||||
Unrealized gains (losses) on cash flow hedges, before reclassification adjustment, before tax | 1 | (40) | 14 | (19) | |||
Amount reclassified on hedging activity, before tax | [1] | 9 | 11 | 16 | 14 | ||
Other comprehensive income (loss) on cash flow hedges, before tax | 10 | (29) | 30 | (5) | |||
Unrealized gains (losses) on cash flow hedges, before reclassification adjustment, tax | 15 | (5) | 7 | ||||
Amount reclassified on hedging activity, tax | [1] | (4) | (6) | (6) | (6) | ||
Other comprehensive income (loss) on cash flow hedges, tax | (4) | 9 | (11) | 1 | |||
Unrealized gains (losses) on cash flow hedges, net of tax | 1 | (25) | 9 | (12) | |||
Amount reclassified on hedging activity, net of tax | [1] | 5 | 5 | 10 | 8 | ||
Other comprehensive income on cash flow hedges, net of tax | 6 | (20) | 19 | (4) | |||
Losses on securities | |||||||
Amount reclassified on sale of securities, before tax | [2] | (7) | |||||
Other comprehensive loss on securities, before tax | 0 | (7) | |||||
Amount reclassified on sale of securities, tax | [2] | 3 | |||||
Other comprehensive loss on securities, tax | 0 | 3 | |||||
Amount reclassified on sale of securities, net of tax | [2] | 0 | (4) | ||||
Other comprehensive loss on securities, net of tax | 0 | 0 | 0 | (4) | |||
Benefit plan adjustments | |||||||
Benefit plan adjustments unrealized gains (losses), before reclassification adjustment, before tax | 104 | [3] | 104 | [3] | (2) | ||
Benefit plan reclassification adjustments realized in net income, before tax | [4] | 13 | 9 | 81 | 26 | ||
Other comprehensive income on benefit plan adjustments, before tax | 117 | 9 | 185 | 24 | |||
Benefit plan adjustments unrealized gains (losses), before benefit plan adjustments, tax | [3] | (38) | (38) | ||||
Benefit plan reclassification adjustments realized in net income, tax | [4] | (5) | (4) | (30) | (9) | ||
Benefit plan adjustments, after reclassification adjustment, tax | (43) | (4) | (68) | (9) | |||
Benefit plan adjustments unrealized gains (losses), before reclassification adjustment, net of tax | 66 | [3] | 0 | 66 | [3] | (2) | |
Benefit plan reclassification adjustments realized in net income, net of tax | [4] | 8 | 5 | 51 | 17 | ||
Benefit plan adjustments, after reclassification adjustment, net of tax | 74 | 5 | 117 | 15 | |||
Equity method investments | |||||||
Unrealized gains (losses) and reclassifications on equity method investments, before tax | 5 | 56 | (218) | (154) | |||
Other comprehensive income (loss) on equity method investments, before tax | 5 | 56 | (218) | (154) | |||
Unrealized gains (losses) and reclassifications on equity method investments, tax | (5) | (9) | 55 | (25) | |||
Other comprehensive income (loss) on equity method investments, tax | (5) | (9) | 55 | (25) | |||
Unrealized gains (losses) and reclassifications on equity method investments, net of tax | 0 | 47 | (163) | (179) | |||
Other comprehensive income (loss) on equity method investments, net of tax | $ 0 | $ 47 | $ (163) | $ (179) | |||
[1] | Reclassifications of amounts related to hedging activity are included in Revenues, Operating expenses, Selling, general and administrative expenses, Interest expense, net or Other, net, as appropriate, in the Unaudited Consolidated Statements of Operations for the three and nine months ended March 31, 2017 and 2016 (See Note 5 – Fair Value for additional information regarding hedging activity). | ||||||
[2] | Reclassifications of amounts related to gains and losses on securities are included in Other, net in the Unaudited Consolidated Statements of Operations for the nine months ended March 31, 2016. | ||||||
[3] | For the three and nine months ended March 31, 2017, the Company recorded a net unrealized actuarial gain from the remeasurement of its pension plan. | ||||||
[4] | Reclassifications of amounts related to benefit plan adjustments are included in Selling, general and administrative expenses or Other, net, as appropriate, in the Unaudited Consolidated Statements of Operations for the three and nine months ended March 31, 2017 and 2016. |
Stockholders' Equity (Earnings
Stockholders' Equity (Earnings Per Share Data) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | ||
Earnings Per Share Data | |||||
Income from continuing operations | $ 882 | $ 928 | $ 2,713 | $ 2,418 | |
Less: Net income attributable to noncontrolling interests | [1] | (71) | (84) | (218) | (222) |
Income from continuing operations attributable to Twenty-First Century Fox stockholders | $ 811 | $ 844 | $ 2,495 | $ 2,196 | |
[1] | Net income attributable to noncontrolling interests includes $43 million and $36 million for the three months ended March 31, 2017 and 2016, respectively, and $113 million and $96 million for the nine months ended March 31, 2017 and 2016, respectively, relating to redeemable noncontrolling interests. |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Aug. 31, 2016 | |
Class A Common Stock | |||||
Stock Repurchase Program [Abstract] | |||||
Stock repurchase program, authorized repurchase amount | $ 3,000,000,000 | ||||
Stock repurchase program, remaining authorized amount | $ 3,110,000,000 | $ 3,110,000,000 | |||
Dividends [Abstract] | |||||
Cash dividend declared per share | $ 0.18 | $ 0.15 | $ 0.36 | $ 0.30 | |
Cash dividend payable date | Apr. 30, 2017 | ||||
Cash dividend record date | Mar. 15, 2017 | ||||
Class A Common Stock | Fiscal 2016 Authorization | |||||
Stock Repurchase Program [Abstract] | |||||
Stock repurchase program, remaining authorized amount | $ 110,000,000 | $ 110,000,000 | |||
Class A Common Stock | Fiscal 2017 Authorization | |||||
Stock Repurchase Program [Abstract] | |||||
Stock repurchase program, remaining authorized amount | $ 3,000,000,000 | $ 3,000,000,000 | |||
Class B Common Stock | |||||
Dividends [Abstract] | |||||
Cash dividend declared per share | $ 0.18 | $ 0.15 | $ 0.36 | $ 0.30 | |
Cash dividend payable date | Apr. 30, 2017 | ||||
Cash dividend record date | Mar. 15, 2017 |
Stockholders' Equity (Schedul51
Stockholders' Equity (Schedule of Dividends Declared) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Class A Common Stock | ||||
Class Of Stock [Line Items] | ||||
Cash dividend per share | $ 0.18 | $ 0.15 | $ 0.36 | $ 0.30 |
Class B Common Stock | ||||
Class Of Stock [Line Items] | ||||
Cash dividend per share | $ 0.18 | $ 0.15 | $ 0.36 | $ 0.30 |
Equity-Based Compensation (Summ
Equity-Based Compensation (Summary of Equity-Based Compensation) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Equity-based compensation | $ 35 | $ 34 | $ 97 | $ 158 |
Intrinsic value of all settled equity-based awards | $ 1 | $ 2 | 70 | 192 |
Tax benefit on vested equity-based awards | $ 25 | $ 69 |
Equity-Based Compensation (Narr
Equity-Based Compensation (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total compensation costs related to non-vested equity-based awards, not yet recognized | $ 150 | |
Performance Stock Units | Class A Common Stock | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted | 7.4 | 6.2 |
Vested | 2.6 | 5.9 |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average future period unrecognized compensation cost related to equity based awards is expected to be recognized | 1 year | |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average future period unrecognized compensation cost related to equity based awards is expected to be recognized | 2 years |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2017 | Jun. 30, 2016 | |
Loss Contingencies [Line Items] | ||
Total firm commitments and future debt payments | $ 80,000 | $ 84,000 |
Hulu | ||
Loss Contingencies [Line Items] | ||
Contingent guarantees | 115 | 115 |
Equity Method Investments Term Loan | $ 338 | $ 338 |
Debt, term | 5 years | |
Debt, maturity date | Oct. 31, 2017 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2017USD ($)SegmentFullpowertvstationDuopoly | Mar. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of Reportable Segments | Segment | 4 | |||
Revenues | $ | $ 7,564 | $ 7,228 | $ 21,752 | $ 20,680 |
Amortization of Intangible Assets | $ | 62 | 64 | 192 | 182 |
Filmed Entertainment Segment | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ | $ (407) | $ (315) | $ (1,085) | $ (878) |
US | Television Segment | ||||
Segment Reporting Information [Line Items] | ||||
Full power broadcast television stations | 28 | |||
Duopolies | Duopoly | 11 | |||
US | Television Segment | Fox | ||||
Segment Reporting Information [Line Items] | ||||
Full power broadcast television stations | 17 | |||
US | Television Segment | MyNetworkTV | ||||
Segment Reporting Information [Line Items] | ||||
Full power broadcast television stations | 9 | |||
US | Television Segment | CW Television Network and MyNetworkTV | ||||
Segment Reporting Information [Line Items] | ||||
Full power broadcast television stations | 1 | |||
US | Television Segment | Independent Station | ||||
Segment Reporting Information [Line Items] | ||||
Full power broadcast television stations | 1 |
Segment Information (Reconcilia
Segment Information (Reconciliation from Income from Continuing Operations Before Income Tax Expense to Total Segment OIBDA) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information Profit Loss [Abstract] | ||||
Income from continuing operations before income tax expense | $ 1,252 | $ 1,391 | $ 3,874 | $ 3,608 |
Amortization of cable distribution investments | 15 | 18 | 46 | 53 |
Depreciation and amortization | 140 | 133 | 410 | 391 |
Impairment and restructuring charges | 37 | 15 | 213 | 46 |
Equity losses (earnings) of affiliates | 51 | 9 | 57 | (38) |
Interest expense, net | 310 | 295 | 909 | 888 |
Interest income | (9) | (12) | (27) | (28) |
Other, net | 142 | 32 | 241 | 226 |
Total Segment OIBDA | $ 1,938 | $ 1,881 | $ 5,723 | $ 5,146 |
Segment Information (Reconcil57
Segment Information (Reconciliation of Revenues and Segment OIBDA from Segments to Consolidated) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 7,564 | $ 7,228 | $ 21,752 | $ 20,680 |
Total Segment OIBDA | 1,938 | 1,881 | 5,723 | 5,146 |
Operating Segments | Cable Network Programming Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4,024 | 3,941 | 11,801 | 11,108 |
Total Segment OIBDA | 1,446 | 1,375 | 4,160 | 3,931 |
Operating Segments | Television Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,690 | 1,299 | 4,646 | 4,064 |
Total Segment OIBDA | 190 | 125 | 757 | 600 |
Operating Segments | Filmed Entertainment Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,256 | 2,321 | 6,432 | 6,467 |
Total Segment OIBDA | 373 | 470 | 1,073 | 921 |
Other, Corporate and Eliminations Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (406) | (333) | (1,127) | (959) |
Total Segment OIBDA | $ (71) | $ (89) | $ (267) | $ (306) |
Segment Information (Reconcil58
Segment Information (Reconciliation of Depreciation and Amortization from Segments to Consolidated) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 140 | $ 133 | $ 410 | $ 391 |
Operating Segments | Cable Network Programming Segment | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 87 | 79 | 252 | 229 |
Operating Segments | Television Segment | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 28 | 29 | 85 | 88 |
Operating Segments | Filmed Entertainment Segment | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 19 | 20 | 59 | 60 |
Other, Corporate and Eliminations Segment | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 6 | $ 5 | $ 14 | $ 14 |
Segment Information (Reconcil59
Segment Information (Reconciliation of Assets from Segments to Consolidated) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Jun. 30, 2016 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 50,684 | $ 48,193 |
Investments | 3,679 | 3,863 |
Operating Segments | Cable Network Programming Segment | ||
Segment Reporting Information [Line Items] | ||
Total assets | 25,090 | 24,974 |
Operating Segments | Television Segment | ||
Segment Reporting Information [Line Items] | ||
Total assets | 7,247 | 6,959 |
Operating Segments | Filmed Entertainment Segment | ||
Segment Reporting Information [Line Items] | ||
Total assets | 10,695 | 9,579 |
Other, Corporate and Eliminations Segment | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 3,973 | $ 2,818 |
Segment Information (Reconcil60
Segment Information (Reconciliation of Revenues by Components to Consolidated) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues | ||||
Affiliate fees | $ 3,160 | $ 2,939 | $ 8,989 | $ 8,321 |
Advertising | 2,203 | 1,907 | 6,338 | 5,950 |
Content | 2,078 | 2,288 | 5,979 | 6,046 |
Other | 123 | 94 | 446 | 363 |
Total revenues | $ 7,564 | $ 7,228 | $ 21,752 | $ 20,680 |
Additional Financial Informat61
Additional Financial Information (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||||
Impairment and restructuring charges | $ 37 | $ 15 | $ 213 | $ 46 | |
Allowances for returns and doubtful accounts | $ 552 | $ 552 | $ 576 |
Additional Financial Informat62
Additional Financial Information (Other, Net) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | ||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||||
Acquisition related and other transaction costs | [1] | $ (137) | $ (170) | $ (66) | |
Investment impairment losses | [2] | (99) | |||
Other | [3] | (5) | $ (32) | (71) | (61) |
Total other, net | $ (142) | $ (32) | $ (241) | $ (226) | |
[1] | The acquisition related and other transaction costs for the three and nine months ended March 31, 2017 primarily represent the change in fair value of a foreign currency option contract to limit the foreign currency exchange rate risk in connection with the Proposed Sky Acquisition (See Note 2 – Acquisitions, Disposals and Other Transactions under the heading “Sky” for further discussion). The acquisition related costs for the nine months ended March 31, 2016 are primarily due to the revision of a contingency estimate related to a past acquisition. | ||||
[2] | See Note 7 – Investments in the 2016 Form 10-K under the heading “Other” for further discussion. | ||||
[3] | Other for the three and nine months ended March 31, 2017 included approximately $10 million and $45 million, respectively, of costs related to settlements of pending and potential litigations following the July 2016 resignation of the Chairman and CEO of Fox News Channel after a public complaint was filed containing allegations of sexual harassment. |
Additional Financial Informat63
Additional Financial Information (Other, Net) (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2017 | Mar. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Costs related to settlements of pending and potential litigations following the July 2016 resignation of the Chairman and CEO of Fox News Channel after a public complaint was filed containing allegations of sexual harassment | $ 10 | $ 45 |
Additional Financial Informat64
Additional Financial Information (Supplemental Cash Flows Information) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Supplemental cash flows information | |||
Cash paid for income taxes | $ (747) | $ (586) | |
Cash paid for interest | (890) | (873) | |
Supplemental information on acquisitions and additional investments | |||
Fair value of assets acquired | 1,199 | ||
Cash acquired | 8 | ||
Liabilities assumed | (110) | ||
Cash paid | (916) | ||
Fair value of equity instruments issued to third parties | [1] | 0 | 181 |
Issuance of subsidiary common units | 0 | (181) | |
Fair value of equity instruments consideration | $ 0 | $ 0 | |
[1] | Includes Redeemable noncontrolling interests. |
Supplemental Guarantor Inform65
Supplemental Guarantor Information (Supplemental Condensed Consolidating Statements of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | ||
Condensed Income Statements Captions [Line Items] | |||||
Revenues | $ 7,564 | $ 7,228 | $ 21,752 | $ 20,680 | |
Expenses | (5,818) | (5,513) | (16,698) | (16,024) | |
Equity (losses) earnings of affiliates | (51) | (9) | (57) | 38 | |
Interest expense, net | (310) | (295) | (909) | (888) | |
Interest income | 9 | 12 | 27 | 28 | |
Other, net | (142) | (32) | (241) | (226) | |
Income from continuing operations before income tax expense | 1,252 | 1,391 | 3,874 | 3,608 | |
Income tax expense | (370) | (463) | (1,161) | (1,190) | |
Income from continuing operations | 882 | 928 | 2,713 | 2,418 | |
Loss from discontinued operations, net of tax | (12) | (3) | (19) | (8) | |
Net income | 870 | 925 | 2,694 | 2,410 | |
Less: Net income attributable to noncontrolling interests | [1] | (71) | (84) | (218) | (222) |
Net income attributable to Twenty-First Century Fox, Inc. stockholders | 799 | 841 | 2,476 | 2,188 | |
Comprehensive income attributable to Twenty-First Century Fox stockholders | 986 | 915 | 2,425 | 1,893 | |
Legal Entities | 21st Century Fox America, Inc. | |||||
Condensed Income Statements Captions [Line Items] | |||||
Revenues | 1 | 1 | 1 | 1 | |
Expenses | (90) | (88) | (328) | (283) | |
Equity (losses) earnings of affiliates | (1) | (1) | (2) | ||
Interest expense, net | (423) | (408) | (1,246) | (1,212) | |
Interest income | 1 | 5 | 3 | 6 | |
Earnings from subsidiary entities | 1,883 | 1,570 | 5,358 | 4,803 | |
Other, net | (140) | (6) | (226) | (114) | |
Income from continuing operations before income tax expense | 1,232 | 1,073 | 3,561 | 3,199 | |
Income tax expense | (365) | (358) | (1,067) | (1,055) | |
Income from continuing operations | 867 | 715 | 2,494 | 2,144 | |
Net income | 867 | 715 | 2,494 | 2,144 | |
Net income attributable to Twenty-First Century Fox, Inc. stockholders | 867 | 715 | 2,494 | 2,144 | |
Comprehensive income attributable to Twenty-First Century Fox stockholders | 1,005 | 703 | 2,249 | 1,657 | |
Legal Entities | Twenty-First Century Fox | |||||
Condensed Income Statements Captions [Line Items] | |||||
Interest expense, net | (195) | (179) | (572) | (532) | |
Interest income | 3 | 1 | 4 | 3 | |
Earnings from subsidiary entities | 1,002 | 1,022 | 3,062 | 2,725 | |
Other, net | 1 | 1 | |||
Income from continuing operations before income tax expense | 811 | 844 | 2,495 | 2,196 | |
Income from continuing operations | 811 | 844 | 2,495 | 2,196 | |
Loss from discontinued operations, net of tax | (12) | (3) | (19) | (8) | |
Net income | 799 | 841 | 2,476 | 2,188 | |
Net income attributable to Twenty-First Century Fox, Inc. stockholders | 799 | 841 | 2,476 | 2,188 | |
Comprehensive income attributable to Twenty-First Century Fox stockholders | 986 | 915 | 2,425 | 1,893 | |
Legal Entities | Non-Guarantor | |||||
Condensed Income Statements Captions [Line Items] | |||||
Revenues | 7,563 | 7,227 | 21,751 | 20,679 | |
Expenses | (5,728) | (5,425) | (16,370) | (15,741) | |
Equity (losses) earnings of affiliates | (51) | (8) | (56) | 40 | |
Interest expense, net | (19) | (17) | (58) | (56) | |
Interest income | 332 | 315 | 987 | 931 | |
Other, net | (3) | (26) | (16) | (112) | |
Income from continuing operations before income tax expense | 2,094 | 2,066 | 6,238 | 5,741 | |
Income tax expense | (620) | (689) | (1,870) | (1,894) | |
Income from continuing operations | 1,474 | 1,377 | 4,368 | 3,847 | |
Net income | 1,474 | 1,377 | 4,368 | 3,847 | |
Less: Net income attributable to noncontrolling interests | (71) | (84) | (218) | (222) | |
Net income attributable to Twenty-First Century Fox, Inc. stockholders | 1,403 | 1,293 | 4,150 | 3,625 | |
Comprehensive income attributable to Twenty-First Century Fox stockholders | 1,578 | 1,415 | 4,011 | 3,301 | |
Reclassifications and Eliminations | |||||
Condensed Income Statements Captions [Line Items] | |||||
Interest expense, net | 327 | 309 | 967 | 912 | |
Interest income | (327) | (309) | (967) | (912) | |
Earnings from subsidiary entities | (2,885) | (2,592) | (8,420) | (7,528) | |
Income from continuing operations before income tax expense | (2,885) | (2,592) | (8,420) | (7,528) | |
Income tax expense | 615 | 584 | 1,776 | 1,759 | |
Income from continuing operations | (2,270) | (2,008) | (6,644) | (5,769) | |
Net income | (2,270) | (2,008) | (6,644) | (5,769) | |
Net income attributable to Twenty-First Century Fox, Inc. stockholders | (2,270) | (2,008) | (6,644) | (5,769) | |
Comprehensive income attributable to Twenty-First Century Fox stockholders | $ (2,583) | $ (2,118) | $ (6,260) | $ (4,958) | |
[1] | Net income attributable to noncontrolling interests includes $43 million and $36 million for the three months ended March 31, 2017 and 2016, respectively, and $113 million and $96 million for the nine months ended March 31, 2017 and 2016, respectively, relating to redeemable noncontrolling interests. |
Supplemental Guarantor Inform66
Supplemental Guarantor Information (Supplemental Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | |
Current assets | |||||||
Cash and cash equivalents | $ 5,572 | $ 4,424 | $ 4,993 | $ 8,428 | |||
Receivables, net | 7,219 | 6,258 | |||||
Inventories, net | [1] | 3,418 | 3,291 | ||||
Other | 529 | 976 | |||||
Total current assets | 16,738 | 14,949 | |||||
Non-current assets | |||||||
Receivables, net | 538 | 389 | |||||
Inventories, net | 7,725 | 7,041 | |||||
Property, plant and equipment, net | 1,691 | 1,692 | |||||
Intangible assets, net | 6,579 | 6,777 | |||||
Goodwill | 12,733 | 12,733 | |||||
Other non-current assets | 1,001 | 749 | |||||
Investments | |||||||
Investments in associated companies and other investments | 3,679 | 3,863 | |||||
Total investments | 3,679 | 3,863 | |||||
Total assets | 50,684 | 48,193 | |||||
Current liabilities | |||||||
Borrowings | 107 | 427 | |||||
Other current liabilities | 7,349 | 6,641 | |||||
Total current liabilities | 7,456 | 7,068 | |||||
Non-current liabilities | |||||||
Borrowings | 19,789 | 19,126 | |||||
Other non-current liabilities | 6,568 | 6,566 | |||||
Redeemable noncontrolling interests | 619 | 552 | |||||
Total equity | 16,252 | $ 15,555 | 14,881 | 15,550 | $ 15,495 | 18,186 | |
Total liabilities and equity | 50,684 | 48,193 | |||||
Legal Entities | 21st Century Fox America, Inc. | |||||||
Current assets | |||||||
Cash and cash equivalents | 49 | 661 | 764 | 767 | |||
Receivables, net | 13 | 20 | |||||
Other | 67 | 13 | |||||
Total current assets | 129 | 694 | |||||
Non-current assets | |||||||
Receivables, net | 15 | 15 | |||||
Property, plant and equipment, net | 230 | 213 | |||||
Other non-current assets | 252 | 235 | |||||
Investments | |||||||
Investments in associated companies and other investments | 174 | 137 | |||||
Intragroup investments | 104,343 | 98,965 | |||||
Total investments | 104,517 | 99,102 | |||||
Total assets | 105,143 | 100,259 | |||||
Current liabilities | |||||||
Borrowings | 400 | ||||||
Other current liabilities | 620 | 489 | |||||
Total current liabilities | 620 | 889 | |||||
Non-current liabilities | |||||||
Borrowings | 18,563 | 17,712 | |||||
Other non-current liabilities | 535 | 605 | |||||
Intercompany | 38,926 | 37,838 | |||||
Total equity | 46,499 | 43,215 | |||||
Total liabilities and equity | 105,143 | 100,259 | |||||
Legal Entities | Twenty-First Century Fox | |||||||
Current assets | |||||||
Cash and cash equivalents | 4,166 | 2,019 | 2,594 | 5,913 | |||
Total current assets | 4,166 | 2,019 | |||||
Investments | |||||||
Investments in associated companies and other investments | 37 | 37 | |||||
Intragroup investments | 58,994 | 55,895 | |||||
Total investments | 59,031 | 55,932 | |||||
Total assets | 63,197 | 57,951 | |||||
Current liabilities | |||||||
Other current liabilities | 386 | 144 | |||||
Total current liabilities | 386 | 144 | |||||
Non-current liabilities | |||||||
Intercompany | 47,794 | 44,146 | |||||
Total equity | 15,017 | 13,661 | |||||
Total liabilities and equity | 63,197 | 57,951 | |||||
Legal Entities | Non-Guarantor | |||||||
Current assets | |||||||
Cash and cash equivalents | 1,357 | 1,744 | 1,635 | 1,748 | |||
Receivables, net | 7,207 | 6,239 | |||||
Inventories, net | 3,418 | 3,291 | |||||
Other | 462 | 963 | |||||
Total current assets | 12,444 | 12,237 | |||||
Non-current assets | |||||||
Receivables, net | 523 | 374 | |||||
Inventories, net | 7,725 | 7,041 | |||||
Property, plant and equipment, net | 1,461 | 1,479 | |||||
Intangible assets, net | 6,579 | 6,777 | |||||
Goodwill | 12,733 | 12,733 | |||||
Other non-current assets | 749 | 514 | |||||
Investments | |||||||
Investments in associated companies and other investments | 3,468 | 3,689 | |||||
Total investments | 3,468 | 3,689 | |||||
Total assets | 45,682 | 44,844 | |||||
Current liabilities | |||||||
Borrowings | 107 | 27 | |||||
Other current liabilities | 6,344 | 6,009 | |||||
Total current liabilities | 6,451 | 6,036 | |||||
Non-current liabilities | |||||||
Borrowings | 1,226 | 1,414 | |||||
Other non-current liabilities | 6,033 | 5,961 | |||||
Intercompany | (86,720) | (81,984) | |||||
Redeemable noncontrolling interests | 619 | 552 | |||||
Total equity | 118,073 | 112,865 | |||||
Total liabilities and equity | 45,682 | 44,844 | |||||
Reclassifications and Eliminations | |||||||
Current assets | |||||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | |||
Receivables, net | (1) | (1) | |||||
Total current assets | (1) | (1) | |||||
Investments | |||||||
Intragroup investments | (163,337) | (154,860) | |||||
Total investments | (163,337) | (154,860) | |||||
Total assets | (163,338) | (154,861) | |||||
Current liabilities | |||||||
Other current liabilities | (1) | (1) | |||||
Total current liabilities | (1) | (1) | |||||
Non-current liabilities | |||||||
Total equity | (163,337) | (154,860) | |||||
Total liabilities and equity | $ (163,338) | $ (154,861) | |||||
[1] | Current portion of inventories, net as of March 31, 2017 and June 30, 2016 was comprised of programming rights ($3,337 million and $3,212 million, respectively), DVDs, Blu-rays and other merchandise. |
Supplemental Guarantor Inform67
Supplemental Guarantor Information (Supplemental Condensed Consolidating Statements of Cash Flows) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
OPERATING ACTIVITIES | ||
Net cash provided by operating activities from continuing operations | $ 2,418 | $ 2,012 |
INVESTING ACTIVITIES | ||
Property, plant and equipment | (202) | (156) |
Investments | (166) | (1,224) |
Net cash used in investing activities from continuing operations | (368) | (1,380) |
FINANCING ACTIVITIES | ||
Borrowings | 879 | 1,195 |
Repayment of borrowings | (546) | (502) |
Repurchase of shares | (619) | (3,958) |
Dividends paid and distributions | (522) | (465) |
Purchase of subsidiary shares from noncontrolling interests | (287) | |
Other financing activities, net | (63) | 11 |
Net cash used in financing activities from continuing operations | (871) | (4,006) |
Discontinued operations | ||
Net decrease in cash and cash equivalents from discontinued operations | (21) | (15) |
Net increase (decrease) in cash and cash equivalents | 1,158 | (3,389) |
Cash and cash equivalents, beginning of year | 4,424 | 8,428 |
Exchange movement on cash balances | (10) | (46) |
Cash and cash equivalents, end of period | 5,572 | 4,993 |
Legal Entities | 21st Century Fox America, Inc. | ||
OPERATING ACTIVITIES | ||
Net cash provided by operating activities from continuing operations | (884) | (585) |
INVESTING ACTIVITIES | ||
Property, plant and equipment | (10) | (5) |
Investments | (95) | (185) |
Net cash used in investing activities from continuing operations | (105) | (190) |
FINANCING ACTIVITIES | ||
Borrowings | 842 | 987 |
Repayment of borrowings | (400) | (200) |
Other financing activities, net | (44) | |
Net cash used in financing activities from continuing operations | 398 | 787 |
Discontinued operations | ||
Net decrease in cash and cash equivalents from discontinued operations | (21) | (15) |
Net increase (decrease) in cash and cash equivalents | (612) | (3) |
Cash and cash equivalents, beginning of year | 661 | 767 |
Cash and cash equivalents, end of period | 49 | 764 |
Legal Entities | Twenty-First Century Fox | ||
OPERATING ACTIVITIES | ||
Net cash provided by operating activities from continuing operations | 3,121 | 1,569 |
INVESTING ACTIVITIES | ||
Investments | (586) | |
Net cash used in investing activities from continuing operations | 0 | (586) |
FINANCING ACTIVITIES | ||
Repurchase of shares | (619) | (3,958) |
Dividends paid and distributions | (335) | (299) |
Purchase of subsidiary shares from noncontrolling interests | (56) | |
Other financing activities, net | (20) | 11 |
Net cash used in financing activities from continuing operations | (974) | (4,302) |
Discontinued operations | ||
Net increase (decrease) in cash and cash equivalents | 2,147 | (3,319) |
Cash and cash equivalents, beginning of year | 2,019 | 5,913 |
Cash and cash equivalents, end of period | 4,166 | 2,594 |
Legal Entities | Non-Guarantor | ||
OPERATING ACTIVITIES | ||
Net cash provided by operating activities from continuing operations | 181 | 1,028 |
INVESTING ACTIVITIES | ||
Property, plant and equipment | (192) | (151) |
Investments | (71) | (453) |
Net cash used in investing activities from continuing operations | (263) | (604) |
FINANCING ACTIVITIES | ||
Borrowings | 37 | 208 |
Repayment of borrowings | (146) | (302) |
Dividends paid and distributions | (187) | (166) |
Purchase of subsidiary shares from noncontrolling interests | (231) | |
Other financing activities, net | 1 | |
Net cash used in financing activities from continuing operations | (295) | (491) |
Discontinued operations | ||
Net increase (decrease) in cash and cash equivalents | (377) | (67) |
Cash and cash equivalents, beginning of year | 1,744 | 1,748 |
Exchange movement on cash balances | (10) | (46) |
Cash and cash equivalents, end of period | 1,357 | 1,635 |
Reclassifications and Eliminations | ||
OPERATING ACTIVITIES | ||
Net cash provided by operating activities from continuing operations | 0 | 0 |
INVESTING ACTIVITIES | ||
Net cash used in investing activities from continuing operations | 0 | 0 |
FINANCING ACTIVITIES | ||
Net cash used in financing activities from continuing operations | 0 | 0 |
Discontinued operations | ||
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of year | 0 | 0 |
Cash and cash equivalents, end of period | $ 0 | $ 0 |