Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Mar. 31, 2019 | May 03, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | NEWS CORP | |
Entity Central Index Key | 0001564708 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | NWS | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 385,531,724 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 199,630,240 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues: | ||||
Total Revenues | $ 2,457 | $ 2,093 | $ 7,608 | $ 6,331 |
Operating expenses | (1,400) | (1,151) | (4,224) | (3,439) |
Selling, general and administrative | (810) | (761) | (2,409) | (2,135) |
Depreciation and amortization | (168) | (100) | (494) | (297) |
Impairment and restructuring charges | (34) | (246) | (71) | (273) |
Equity losses of affiliates | (4) | (974) | (13) | (1,002) |
Interest (expense) income, net | (14) | 2 | (45) | 9 |
Other, net | 3 | 30 | 30 | 9 |
Income (loss) before income tax expense | 30 | (1,107) | 382 | (797) |
Income tax expense | (7) | (3) | (112) | (292) |
Net income (loss) | 23 | (1,110) | 270 | (1,089) |
Less: Net income attributable to noncontrolling interests | (13) | (18) | (64) | (54) |
Net income (loss) attributable to News Corporation stockholders | $ 10 | $ (1,128) | $ 206 | $ (1,143) |
Basic and diluted earnings (loss) per share: | ||||
Net income (loss) available to News Corporation stockholders per share | $ 0.02 | $ (1.94) | $ 0.35 | $ (1.96) |
Circulation and Subscription [Member] | ||||
Revenues: | ||||
Total Revenues | $ 1,025 | $ 659 | $ 3,088 | $ 1,947 |
Advertising [Member] | ||||
Revenues: | ||||
Total Revenues | 670 | 702 | 2,052 | 2,101 |
Consumer [Member] | ||||
Revenues: | ||||
Total Revenues | 403 | 381 | 1,281 | 1,220 |
Real Estate [Member] | ||||
Revenues: | ||||
Total Revenues | 218 | 208 | 693 | 633 |
Other [Member] | ||||
Revenues: | ||||
Total Revenues | $ 141 | $ 143 | $ 494 | $ 430 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income (loss) | $ 23 | $ (1,110) | $ 270 | $ (1,089) | |
Other comprehensive income (loss): | |||||
Foreign currency translation adjustments | 75 | 10 | (182) | 144 | |
Net change in the fair value of cash flow hedges | [1] | (5) | 0 | 2 | 0 |
Unrealized holding gains on securities, net | [2] | 0 | 0 | 0 | 5 |
Benefit plan adjustments, net | [3] | (3) | (9) | 10 | (14) |
Share of other comprehensive income from equity affiliates, net | [4] | 0 | 0 | 0 | 1 |
Other comprehensive income (loss) | 67 | 1 | (170) | 136 | |
Comprehensive income (loss) | 90 | (1,109) | 100 | (953) | |
Less: Net income attributable to noncontrolling interests | (13) | (18) | (64) | (54) | |
Less: Other comprehensive (income) loss attributable to noncontrolling interests | (10) | 2 | 46 | (1) | |
Comprehensive income (loss) attributable to News Corporation stockholders | $ 67 | $ (1,125) | $ 82 | $ (1,008) | |
[1] | Net of income tax expense of nil and $1 million for the three and nine months ended March 31, 2019, respectively. | ||||
[2] | Net of income tax expense of $1 million and $3 million for the three and nine months ended March 31, 2018, respectively. | ||||
[3] | Net of income tax benefit of $1 million and $2 million for the three months ended March 31, 2019 and 2018, respectively, and income tax expense (benefit) of $2 million and ($4) million for the nine months ended March 31, 2019 and 2018, respectively. | ||||
[4] | Net of income tax expense of nil for the three and nine months ended March 31, 2019 and 2018, respectively. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net change in the fair value of cash flow hedges, income tax expense | $ 0 | $ 1 | ||
Unrealized holding gains on securities, income tax expense | $ 1 | $ 3 | ||
Benefit plan adjustments, income tax expense (benefit) | (1) | (2) | 2 | (4) |
Share of other comprehensive income from equity affiliates, income tax expense | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Jun. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,648 | $ 2,034 |
Receivables, net | 1,631 | 1,612 |
Inventory, net | 404 | 376 |
Other current assets | 564 | 372 |
Total current assets | 4,247 | 4,394 |
Non-current assets: | ||
Investments | 347 | 393 |
Property, plant and equipment, net | 2,557 | 2,560 |
Intangible assets, net | 2,514 | 2,671 |
Goodwill | 5,223 | 5,218 |
Deferred income tax assets | 257 | 279 |
Other non-current assets | 913 | 831 |
Total assets | 16,058 | 16,346 |
Current liabilities: | ||
Accounts payable | 432 | 605 |
Accrued expenses | 1,364 | 1,340 |
Deferred revenue | 460 | 516 |
Current borrowings | 678 | 462 |
Other current liabilities | 745 | 372 |
Total current liabilities | 3,679 | 3,295 |
Non-current liabilities: | ||
Borrowings | 868 | 1,490 |
Retirement benefit obligations | 237 | 245 |
Deferred income tax liabilities | 321 | 389 |
Other non-current liabilities | 495 | 430 |
Commitments and contingencies | ||
Equity | ||
Additional paid-in capital | 12,229 | 12,322 |
Accumulated deficit | (1,927) | (2,163) |
Accumulated other comprehensive loss | (1,019) | (874) |
Total News Corporation stockholders' equity | 9,289 | 9,291 |
Noncontrolling interests | 1,169 | 1,186 |
Total equity | 10,458 | 10,477 |
Total liabilities and equity | 16,058 | 16,346 |
Redeemable Preferred Stock [Member] | ||
Equity | ||
Redeemable preferred stock | 0 | 20 |
Class A Common Stock [Member] | ||
Equity | ||
Common stock | 4 | 4 |
Class B Common Stock [Member] | ||
Equity | ||
Common stock | $ 2 | $ 2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Jun. 30, 2018 |
Class A Common Stock [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued, net of treasury stock | 385,444,822 | 383,385,353 |
Common stock outstanding, net of treasury stock | 385,444,822 | 383,385,353 |
Common stock, treasury shares | 27,368,413 | 27,368,413 |
Class B Common Stock [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued, net of treasury stock | 199,630,240 | 199,630,240 |
Common stock outstanding, net of treasury stock | 199,630,240 | 199,630,240 |
Common stock, treasury shares | 78,430,424 | 78,430,424 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities: | ||
Net income (loss) | $ 270 | $ (1,089) |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||
Depreciation and amortization | 494 | 297 |
Equity losses of affiliates | 13 | 1,002 |
Cash distributions received from affiliates | 30 | 2 |
Impairment charges | 9 | 225 |
Other, net | (30) | (9) |
Deferred income taxes and taxes payable | 22 | 182 |
Change in operating assets and liabilities, net of acquisitions: | ||
Receivables and other assets | 37 | (86) |
Inventories, net | (74) | (14) |
Accounts payable and other liabilities | (110) | (45) |
Net cash provided by operating activities | 661 | 465 |
Investing activities: | ||
Capital expenditures | (417) | (200) |
Acquisitions, net of cash acquired | (187) | (62) |
Investments in equity affiliates and other | (36) | (42) |
Proceeds from property, plant and equipment and other asset dispositions | 99 | 137 |
Other, net | 18 | 23 |
Net cash used in investing activities | (523) | (144) |
Financing activities: | ||
Borrowings | 450 | 0 |
Repayment of borrowings | (801) | (93) |
Dividends paid | (102) | (99) |
Other, net | (48) | (42) |
Net cash used in financing activities | (501) | (234) |
Net change in cash and cash equivalents | (363) | 87 |
Cash and cash equivalents, beginning of period | 2,034 | 2,016 |
Exchange movement on opening cash balance | (23) | 9 |
Cash and cash equivalents, end of period | $ 1,648 | $ 2,112 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION News Corporation (together with its subsidiaries, “News Corporation,” “News Corp,” the “Company,” “we,” or “us”) is a global diversified media and information services company comprised of businesses across a range of media, including: news and information services, subscription video services in Australia, book publishing and digital real estate services. In April 2018, News Corp and Telstra Corporation Limited (“Telstra”) combined their respective 50% interests in Foxtel and News Corp’s 100% interest in FOX SPORTS Australia into a new company, which the Company refers to as “new Foxtel” (the “Transaction”). Following the completion of the Transaction, News Corp owns a 65% interest in the combined business, with Telstra owning the remaining 35%. Consequently, the Company began consolidating Foxtel in the fourth quarter of fiscal 2018. See Note 3—Acquisitions, Disposals and Other Transactions; Note 5—Investments; Note 6—Borrowings; and Note 9—Financial Instruments and Fair Value Measurements. Basis of Presentation The accompanying unaudited consolidated financial statements of the Company, which are referred to herein as the “Consolidated Financial Statements,” have been prepared in accordance with generally accepted accounting principles in the United States of America (“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 Consolidated Financial Statements. Operating results for the interim period presented are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2019. 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 could differ from those estimates. Intercompany transactions and balances have been eliminated. Equity investments in which the Company exercises significant influence but does not exercise control and is not the primary beneficiary are accounted for using the equity method. In accordance with ASU 2016-01, investments in which the Company is not able to exercise significant influence over the investee are measured at fair value, if the fair value is readily determinable. If an investment’s fair value is not readily determinable, the Company will measure the investment at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. The consolidated statements of operations are referred to herein as the “Statements of Operations.” The consolidated balance sheets are referred to herein as the “Balance Sheets.” The consolidated statements of cash flows are referred to herein as the “Statements of Cash Flows.” The accompanying 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, 2018 as filed with the Securities and Exchange Commission (the “SEC”) on August 15, 2018 (the “2018 Form 10-K”). Certain reclassifications have been made to the prior period consolidated financial statements to conform to the current year presentation. Specifically, in the first quarter of fiscal 2019, the Company reclassified Conference Sponsorship revenues at its Dow Jones reporting unit and Merchandising revenues at News America Marketing from Other revenues to Advertising revenues as the Company believes that the reclassification more accurately reflects the nature of those revenue streams. These revenue reclassifications totaled $15 million and $42 million for the three and nine months ended March 31, 2018, respectively, and $57 million for the fiscal year ended June 30, 2018. The Company’s fiscal year ends on the Sunday closest to June 30. Fiscal 2019 and fiscal 2018 include 52 weeks. All references to the three and nine months ended March 31, 2019 and 2018 relate to the three and nine months ended March 31, 2019 and April 1, 2018, respectively. For convenience purposes, the Company continues to date its Consolidated Financial Statements as of March 31. Recently Issued Accounting Pronouncements Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which amended the FASB Accounting Standards Codification by creating Topic 606, “Revenue from Contracts with Customers” (“ASC 606”). ASU 2014-09 removes inconsistencies and differences in revenue recognition requirements between GAAP and International Financial Reporting Standards and requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company adopted ASU 2014-09 on a modified retrospective basis as of July 1, 2018. As a result, the Company recorded a $ 20 In January 2016, the FASB issued ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The amendments in ASU 2016-01 address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 is effective for the Company for annual and interim reporting periods beginning July 1, 2018. The Company adopted the guidance on a cumulative-effect basis for its investments with readily determinable fair values effective July 1, 2018. In accordance with ASU 2016-01, the cumulative net unrealized gains (losses) for these investments contained within Accumulated other comprehensive loss were reclassified through Accumulated deficit as of July 1, 2018, and the Company recorded a $ 22 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”). The amendments in ASU 2017-07 require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic benefit cost (income) as defined in paragraphs 715-30-35-4 and 715-60-35-9 are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. ASU 2017-07 allows for a practical expedient that permits a company to use the amounts disclosed in its pension and other postretirement benefit plans note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. ASU 2017-07 is effective for the Company for annual and interim reporting periods beginning July 1, 2018. The Company adopted ASU 2017-07 utilizing the practical expedient. The other components of net periodic benefit cost (income) are included in Other, net in the Statements of Operations. The adoption did not have a material impact on the Company’s Consolidated Financial Statements. In June 2018, the FASB issued ASU 2018-07, “Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting” (“ASU 2018-07”). The amendments in ASU 2018-07 expanded the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. As permitted by ASU 2018-07, the Company early-adopted this standard and the adoption did not have a material impact on the Company’s Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)” (“ASU 2018-15”). The amendments in ASU 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). As permitted by ASU 2018-15, the Company early-adopted this standard on a prospective basis. The adoption did not have a material impact on the Company’s Consolidated Financial Statements. Issued In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). The amendments in ASU 2016-02 require lessees to recognize all leases on the balance sheet by recording a right-of-use asset and a lease liability, and lessor accounting has been updated to align with the new requirements for lessees. The new standard also provides changes to the existing sale-leaseback guidance. ASU 2016-02 is effective for the Company for annual and interim reporting periods beginning July 1, 2019. The FASB has also issued additional standards which provide additional clarification and implementation guidance on the previously issued ASU 2016-02 and have the same effective date as the original standard. The Company plans to apply this guidance on a modified retrospective basis at the beginning of the period of adoption through a cumulative-effect adjustment to retained earnings, with no restatement of prior periods. The Company has selected its lease management system and is in the process of completing its inventory of its lease contracts and implementing processes and controls to enable the preparation of the required financial information for this standard. The Company is currently evaluating the impact ASU 2016-02 will have on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). The amendments in ASU 2016-13 require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. ASU 2016-13 is effective for the Company for annual and interim reporting periods beginning July 1, 2020. The Company is currently evaluating the impact ASU 2016-13 will have on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”). The amendments in ASU 2017-12 more closely align the results of cash flow and fair value hedge accounting with risk management activities through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements. The amendments address specific limitations in current GAAP by expanding hedge accounting for both nonfinancial and financial risk components and by refining the measurement of hedge results to better reflect an entity’s hedging strategies. ASU 2017-12 is effective for the Company for annual and interim reporting periods beginning July 1, 2019. The Company is currently evaluating the impact ASU 2017-12 will have on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”). The amendments in ASU 2018-02 provide a reclassification from Accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act (as defined below) . See Note 12— Income Taxes. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statement users. ASU 2018-02 is effective for the Company for annual and interim reporting periods beginning July 1, 2019. The Company is currently evaluating the impact ASU 2018-02 will have on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 removes, modifies and adds certain disclosure requirements in Topic 820, “Fair Value Measurement.” ASU 2018-13 eliminates certain disclosures related to transfers and the valuation process, modifies disclosures for investments that are valued based on net asset value, clarifies the measurement uncertainty disclosure, and requires additional disclosures for Level 3 fair value measurements. ASU 2018-13 is effective for the Company for annual and interim reporting periods beginning July 1, 2020. The Company is currently evaluating the impact ASU 2018-13 will have on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans” (“ASU 2018-14”). The amendments in ASU 2018-14 modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. ASU 2018-14 eliminates the disclosures for amounts in Accumulated other comprehensive loss expected to be recognized as a component of net periodic benefit cost (income) and the effect of a percentage change in health care cost trend rate. ASU 2018-14 is effective for the Company for annual and interim reporting periods beginning July 1, 2021. The Company will comply with the new disclosure requirements in ASU 2018-14 beginning with its Annual Report on Form 10-K for the fiscal year ending June 30, 2019. |
Revenues
Revenues | 9 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | NOTE 2. REVENUES On July 1, 2018, the Company adopted ASC 606 on a modified retrospective basis for all contracts which were not completed as of the adoption date. Results for reporting periods beginning after July 1, 2018 are presented under ASC 606 while prior periods have not been restated. Under ASC 606, revenue is recognized when or as the Company satisfies its respective performance obligations under each contract. The Company recorded a $20 million decrease to Accumulated deficit as of July 1, 2018 to reflect the cumulative impact of its adoption of ASC 606. When implementing ASC 606, the Company applied the practical expedient to reflect the aggregate effect of all contract modifications occurring before the beginning of the earliest period presented when identifying satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations. The adoption of ASC 606 primarily resulted in the following changes related to the Company’s revenue recognition policies: • Reclassification of certain payments to customers For certain revenue streams within the Subscription Video Services, Book Publishing and News and Information Services segments, the Company previously recorded certain marketing and sales incentive payments to customers within Operating expenses and Selling, general and administrative expenses. In accordance with ASC 606, such payments are now recorded as a reduction of revenue. For the three and nine months ended March 31, 2019, revenues were $22 million and $84 million lower, respectively, as a result of this reclassification, with no impact on the Company’s net income. • Deferred installation revenues in the Subscription Video Services segment Under ASC 606, each customer subscription sold is accounted for as a distinct performance obligation. Installation services are not accounted for as a distinct performance obligation and are instead included within the overall services being provided. Therefore, installation revenues are deferred and recognized over the respective customer contract term. Historically, installation revenues were deferred and recognized over the estimated customer life. For the three and nine months ended March 31, 2019, revenues were $5 million and $18 million higher, respectively, as a result of the adoption of ASC 606. • Acceleration of revenue associated with REA Group’s financial services business The Company has historically delayed the recognition of trailing commission revenue associated with REA Group’s financial services business until such amounts became fixed or determinable. Under ASC 606, trailing commission revenue is recognized when the related mortgage loan is established. As a result, the Company established a commission receivable of $121 million and a broker commission payable of $94 million as of July 1, 2018. The current portion of the commission receivable and broker commission payable are classified in Receivables, net and Other current liabilities, respectively, with the non-current portion of each classified within Other non-current assets and liabilities, respectively, in the Balance Sheets. The change in accounting for trailing commission revenue did not have a material impact on the Statement of Operations. The Company’s revenues and expenses for the three and nine months ended March 31, 2019 and the opening balance sheet as of July 1, 2018 under both ASC 606 and the prior standard, ASC 605 are as follows: For the three months ended March 31, 2019 ASC 605 Effects of Adoption ASC 606 (in millions) Revenue: Circulation and subscription $ 1,019 $ 6 $ 1,025 Advertising 673 (3 ) 670 Consumer 420 (17 ) 403 Real estate 218 — 218 Other 144 (3 ) 141 Total Revenues $ 2,474 $ (17 ) $ 2,457 Operating expenses and Selling, general and administrative $ (2,228 ) $ 18 $ (2,210 ) Net income $ 22 $ 1 $ 23 For the nine months ended March 31, 2019 ASC 605 Effects of Adoption ASC 606 (in millions) Revenue: Circulation and subscription $ 3,076 $ 12 $ 3,088 Advertising 2,055 (3 ) 2,052 Consumer 1,328 (47 ) 1,281 Real estate 693 — 693 Other 510 (16 ) 494 Total Revenues $ 7,662 $ (54 ) $ 7,608 Operating expenses and Selling, general and administrative $ (6,706 ) $ 73 $ (6,633 ) Net income $ 256 $ 14 $ 270 As of July 1, 2018 ASC 605 Effects of Adoption ASC 606 (in millions) Assets: Receivables, net $ 1,612 $ 200 $ 1,812 Other current assets 372 (4 ) 368 Deferred income tax assets 279 2 281 Other non-current assets 831 92 923 Liabilities and Equity: Deferred revenue $ 516 $ (6 ) $ 510 Other current liabilities 372 194 566 Deferred income tax liabilities 389 11 400 Other non-current liabilities 430 71 501 Accumulated deficit (2,163 ) 20 (2,143 ) Disaggregated revenue The following table presents revenue by type and segment for the three and nine months ended March 31, 2019: For the three months ended March 31, 2019 News and Information Services Subscription Video Services Book Publishing Digital Real Estate Services Other Total Revenues (in millions) Revenues: Circulation and subscription $ 538 $ 474 $ — $ 12 $ 1 $ 1,025 Advertising 593 50 — 27 — 670 Consumer — — 403 — — 403 Real estate — — — 218 — 218 Other 93 15 18 15 — 141 Total Revenues $ 1,224 $ 539 $ 421 $ 272 $ 1 $ 2,457 For the nine months ended March 31, 2019 News and Information Services Subscription Video Services Book Publishing Digital Real Estate Services Other Total Revenues (in millions) Revenues: Circulation and subscription $ 1,593 $ 1,455 $ — $ 39 $ 1 $ 3,088 Advertising 1,801 162 — 89 — 2,052 Consumer — — 1,281 — — 1,281 Real estate — — — 693 — 693 Other 335 49 54 55 1 494 Total Revenues $ 3,729 $ 1,666 $ 1,335 $ 876 $ 2 $ 7,608 Disclosures regarding the nature, timing and uncertainty of the Company’s revenue streams across its segments are as follows: Circulation and subscription revenues Circulation and subscription revenues include single-copy newspaper, newspaper subscription, information services subscription and pay television broadcast subscription revenues. Circulation revenues are based on the number of copies of the printed newspaper (through home-delivery subscriptions and single-copy sales) and/or digital subscriptions sold, and the associated rates charged to the customers. Single-copy revenue is recognized at a point in time on the date the newspapers are sold to distribution outlets, net of provisions for related returns. Revenues from home delivery and digital subscriptions are recognized over the subscription term as the newspapers and/or digital subscriptions are delivered. Information services subscription revenues are recognized over time as the subscriptions are delivered. Payments from subscribers are generally due at the beginning of the month and are recorded as deferred revenue. Such amounts are recognized as revenue as the associated subscription is delivered. Revenue generated from subscriptions to receive pay television broadcast services, broadband and home phone services for residential and commercial subscribers is recognized over time on a monthly basis as the services are provided. Payment is generally received monthly in advance of providing services, and is deferred upon receipt. Such amounts are recognized as revenue as the related services are provided. Advertising revenues Revenue from print advertising is recognized at the point in time the print advertisement is circulated. Broadcast advertising revenue is recognized over the time that the broadcast advertisement is aired. For impressions-based digital advertising, revenues are recognized as impressions are delivered over the term of the arrangement, while revenue from non-impressions-based digital advertising is recognized over the period that the advertisements are displayed. Such amounts are recognized net of agency commissions and provisions for estimated sales incentives, including rebates, rate adjustments or discounts. Advertising revenues earned from integrated marketing services are recognized at the point in time when free-standing inserts are published. Revenues earned from in-store marketing services are partially recognized upon installation, with the remaining revenue recognized over the in-store campaign. Billings to clients and payments received in advance of performance of services or delivery of products are recorded as deferred revenue until the services are performed or the product is delivered. Payment for advertising services is typically due shortly after the Company has satisfied its performance obligation to print, broadcast or place the advertising specified in the contract. For advertising campaigns that extend beyond one month, the Company generally invoices the advertiser in arrears based on the number of advertisements that were printed, broadcast or placed, or impressions delivered during the month. Consumer revenues Revenue from the sale of physical books and electronic books (“e-books”) is recognized at the point in time of physical receipt by the customer or electronic delivery. Such amounts are recorded net of provisions for returns and payments to customers when a distinct good or service is not received. If the Company prohibits its customer from selling a physical book until a future date, it recognizes revenue when that restriction lapses. Revenue is recognized net of any amounts billed to customers for taxes remitted to government authorities. Payments for the sale of physical books and e-books are generally collected within one to three months of sale or delivery and are based on the number of physical books or e-books sold. Real Estate revenues Real estate revenues are derived from the sale of online real estate listing products and advanced client management and reporting products, as well as services to agents, brokers and developers. Revenue is typically recognized over the contractual period during which the services are provided. Payments are generally due monthly over the subscription term. Other revenues Other revenues are recognized when the related services are performed or the product has been delivered. Areas of judgment Contracts with multiple performance obligations The Company has certain revenue contracts which contain multiple performance obligations such as print and digital advertising bundles and bundled video service subscriptions. Revenues derived from sales contracts that contain multiple products and services are allocated based on the relative standalone selling price of each performance obligation to be delivered. Standalone selling price is typically determined based on prices charged to customers for the same or similar goods or services on a standalone basis. If observable standalone prices are not available, the Company estimates standalone selling price by maximizing the use of observable inputs to most accurately reflect the price of each individual performance obligation. Revenue is recognized as each performance obligation included in the contract is satisfied. Identification of a customer and gross versus net revenue recognition In the normal course of business, the Company acts as or uses an intermediary or agent in executing transactions with third parties. When the intermediary or agent is determined to be the Company’s customer, the Company records revenue based on the amount it expects to receive from the agent or intermediary. In other circumstances, the determination of whether revenue should be reported on a gross or net basis is based on an assessment of whether the Company is acting as the principal or an agent in the transaction. If the Company is acting as a principal in a transaction, the Company reports revenue on a gross basis. If the Company is acting as an agent in a transaction, the Company reports revenue on a net basis. The determination of whether the Company is acting as a principal or an agent in a transaction involves judgment and is based on an evaluation of the terms of the arrangement. The Company serves as the principal in transactions in which it controls the goods or services prior to being transferred to the ultimate customer. Sales returns Certain of the Company’s products, such as books and newspapers, are sold with the right of return. The Company records the estimated impact of such returns as a reduction of revenue. To estimate product sales that will be returned and the related products that are expected to be placed back into inventory, the Company analyzes historical returns, current economic trends, changes in customer demand and acceptance of the Company’s products. Based on this information, the Company reserves a percentage of each dollar of product sales that provide the customer with the right of return. As a result of the adoption of ASC 606, the Company reclassified its sales returns reserve from Receivables, net to Other current liabilities. Contract liabilities and assets The Company’s deferred revenue balance primarily relates to amounts received from customers for subscriptions paid in advance of the services being provided. The following table presents changes in the deferred revenue balance for the three and nine months ended March 31 , 2019 : For the three months ended March 31, 2019 For the nine months ended March 31, 2019 (in millions) (in millions) Balance, beginning of period $ 430 $ 510 Deferral of revenue 934 2,271 Recognition of deferred revenue (a) (883 ) (2,300 ) Other (21 ) (21 ) Balance, end of period $ 460 $ 460 (a) For the three and nine months ended March 31, 2019, the Company recognized approximately $241 million and $461 million, respectively, of revenue which was included in the opening deferred revenue balance for each of the respective periods. Contract assets were immaterial for disclosure as of March 31, 2019. Practical expedients and other revenue disclosures The Company typically expenses sales commissions incurred to obtain a customer contract as those amounts are incurred as the amortization period is twelve months or less. These costs are recorded within Selling, general and administrative in the Statements of Operations. The Company also applies the practical expedient for significant financing components when the transfer of the good or service is paid within twelve months or less, or the receipt of consideration is received within twelve months or less of the transfer of the good or service. During the three and nine months ended March 31, 2019, the Company recognized approximately $75 million and $227 million, respectively, in revenues related to performance obligations that were satisfied or partially satisfied in a prior reporting period. The remaining transaction price related to unsatisfied performance obligations as of March 31, 2019 was approximately $297 million, of which approximately $39 million is expected to be recognized over the remainder of fiscal 2019, approximately $133 million is expected to be recognized in fiscal 2020, $98 million is expected to be recognized in fiscal 2021, with the remainder to be recognized thereafter. These amounts do not include (i) contracts with an expected duration of one year or less, (ii) contracts for which variable consideration is determined based on the customer’s subsequent sale or usage and (iii) variable consideration allocated to performance obligations accounted for under the series guidance that meets the allocation objective under ASC 606. |
Acquisitions, Disposals and Oth
Acquisitions, Disposals and Other Transactions | 9 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions, Disposals and Other Transactions | NOTE 3. ACQUISITIONS, DISPOSALS AND OTHER TRANSACTIONS Opcity In October 2018, the Company acquired Opcity Inc. (“Opcity”), a market-leading real estate technology platform that matches qualified home buyers and sellers with real estate professionals in real time. The total transaction value was approximately $210 million, consisting of approximately $182 million in cash, net of $7 million of cash acquired, and approximately $28 million in deferred payments and restricted stock unit awards for Opcity’s founders and qualifying employees, which is being recognized as compensation expense over the three years following the closing. Included in the cash amount was approximately $20 million that is being held back for approximately 18 months after closing. The acquisition broadens realtor.com ® Under the acquisition method of accounting, the total consideration was first allocated to net tangible assets and identifiable intangible assets based upon their fair values as of the date of completion of the acquisition. As a result of the acquisition, the Company recorded approximately $73 million of assets, of which $49 million primarily related to the Opcity technology and data platform with a weighted average useful life of 12 years and $24 million primarily related to intangible assets resulting from previously acquired leads and customer relationships with a weighted average useful life of 9 years. In accordance with ASC 350, “Intangibles – Goodwill and Other” (“ASC 350”) the excess of the total consideration over the fair values of the net tangible and intangible assets of approximately $124 million was recorded as goodwill on the transaction. New Foxtel In April 2018, News Corp and Telstra combined their respective 50% interests in Foxtel and News Corp’s 100% interest in FOX SPORTS Australia into a new company. Following the completion of the Transaction, News Corp owns a 65% interest in the combined business, with Telstra owning the remaining 35%. Consequently, the Company began consolidating Foxtel in the fourth quarter of fiscal 2018. The combination allows Foxtel and FOX SPORTS Australia to leverage their media platforms and content to improve services for consumers and advertisers. The results of new Foxtel are reported within the Subscription Video Services segment (formerly the Cable Network Programming segment), and new Foxtel is considered a separate reporting unit for purposes of the Company’s annual goodwill impairment review. The Transaction was accounted for in accordance with ASC 805 “Business Combinations” (“ASC 805”) which requires the Company to re-measure its previously held equity interest in Foxtel at its Transaction completion date fair value. The carrying amount of the Company’s previously held equity interest in Foxtel was equal to its fair value as of the Transaction completion date, as the Company wrote its investment in Foxtel down to fair value during the third quarter of fiscal 2018. In accordance with ASC 805, as the Company did not relinquish control of its investment in FOX SPORTS Australia, the reduction in the Company’s ownership interest to 65% was accounted for as a common control transaction on a carryover basis. See Note 5—Investments. The total aggregate purchase price associated with the Transaction at the completion date is set forth below (in millions): Consideration transferred (a) $ 331 Fair value of News Corp previously held equity interest in Foxtel 631 Fair value of noncontrolling interest (b) 578 Fair value of net assets $ 1,540 a) Primarily represents the fair value of 35% of FOX SPORTS Australia exchanged as consideration in the Transaction and has been included in noncontrolling interest. b) Primarily represents the fair value of 35% of Foxtel, which includes the impact of certain market participant synergies. Under the acquisition method of accounting, the aggregate purchase price, based on a valuation of 100% of Foxtel, was allocated to net tangible and intangible assets based upon their fair value as of the date of completion of the Transaction. The excess of the aggregate purchase price over the fair value of the net tangible and intangible assets acquired was recorded as goodwill. The allocation is as follows (in millions): Assets acquired: Cash $ 78 Current assets 492 Property, plant and equipment 967 Intangible assets 861 Goodwill 1,559 Other non-current assets 268 Total assets acquired $ 4,225 Liabilities assumed: Current liabilities $ 611 Long-term borrowings 1,751 Other non-current liabilities 323 Total liabilities assumed 2,685 Net assets acquired $ 1,540 As a result of the Transaction, the Company recorded net tangible assets of approximately $871 million, excluding long-term borrowings, primarily consisting of property, plant and equipment, which mainly relate to digital set top units and installations and technical equipment, as well as accounts receivable, inventory, accounts payable and accruals at their estimated fair values at the completion date of the Transaction. The Company recorded outstanding borrowings of approximately $1.8 billion as a result of the Transaction. See Note 6—Borrowings. In addition, the Company recorded approximately $0.9 billion of intangible assets of which $468 million has been allocated to subscriber relationships with a weighted-average useful life of 10 years, $270 million has been allocated to the tradenames which have an indefinite life and approximately $123 million has been allocated to advertiser relationships with a weighted-average useful life of 15 years. In accordance with ASC 350, the excess of the purchase price over the fair values of the net tangible and intangible assets of approximately $1.6 billion was recorded as goodwill on the transaction. As a result of the Transaction, the Company recognized a $337 million loss in Other, net in the fourth quarter of fiscal 2018, primarily related to the Company’s settlement of its pre-existing contractual arrangement between Foxtel and FOX SPORTS Australia which resulted in a $317 million write-off of its channel distribution agreement intangible asset at the time of the Transaction. |
Impairment and Restructuring Ch
Impairment and Restructuring Charges | 9 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Impairment and Restructuring Charges | NOTE 4. IMPAIRMENT AND RESTRUCTURING CHARGES Fiscal 2019 During the three and nine months ended March 31, 2019, the Company recorded restructuring charges of $25 million and $62 million, respectively, of which $23 million and $55 million, respectively, related to the News and Information Services segment. The restructuring charges recorded in fiscal 2019 were for employee termination benefits. Fiscal 2018 During the three and nine months ended March 31, 2018, the Company recorded restructuring charges of $21 million and $48 million, respectively, of which $13 million and $38 million, respectively, related to the News and Information Services segment. The restructuring charges recorded in fiscal 2018 were primarily for employee termination benefits. During the three and nine months ended March 31, 2018, the Company recognized non-cash impairment charges of $225 million primarily related to the impairment of goodwill and intangible assets at the News America Marketing reporting unit and impairment of goodwill at the FOX SPORTS Australia reporting unit. The Company recognized a $165 million non-cash impairment of goodwill and indefinite-lived intangible assets at its News America Marketing reporting unit. Due to the impact of adverse trends on the future expected performance of the business, the Company revised its future outlook which resulted in a reduction in expected future cash flows. Based on the revised projections, the Company determined that the fair value of the reporting unit was less than its carrying value. The assumptions utilized in the income approach valuation method were discount rates (ranging from 12.5%-14%), long-term growth rates (ranging from (1.9%)-0.9%) and a royalty rate of 2.5%. The Company recognized a $41 million non-cash impairment of goodwill at its FOX SPORTS Australia reporting unit. As a result of lower-than-expected revenues at Foxtel, the Company revised its future outlook for FOX SPORTS Australia whose revenues are heavily predicated on Foxtel subscribers. Based on the revised projections, the Company determined that the fair value of the reporting unit was less than its carrying value. The assumptions utilized in the income approach valuation method were a discount rate of 9.5% and a long-term growth rate of 2.0%. See Note 5—Investments. Changes in restructuring program liabilities were as follows: For the three months ended March 31, 2019 2018 One time employee termination benefits Facility related costs Other costs Total One time employee termination benefits Facility related costs Other costs Total (in millions) Balance, beginning of period $ 20 $ 2 $ 11 $ 33 $ 22 $ 4 $ 10 $ 36 Additions 25 — — 25 21 — — 21 Payments (17 ) — (1 ) (18 ) (22 ) — — (22 ) Other — — — — 3 — — 3 Balance, end of period $ 28 $ 2 $ 10 $ 40 $ 24 $ 4 $ 10 $ 38 For the nine months ended March 31, 2019 2018 One time employee termination benefits Facility related costs Other costs Total One time employee termination benefits Facility related costs Other costs Total (in millions) Balance, beginning of period $ 29 $ 2 $ 11 $ 42 $ 33 $ 6 $ 10 $ 49 Additions 62 — — 62 47 — 1 48 Payments (61 ) — (2 ) (63 ) (60 ) (1 ) (1 ) (62 ) Other (2 ) — 1 (1 ) 4 (1 ) — 3 Balance, end of period $ 28 $ 2 $ 10 $ 40 $ 24 $ 4 $ 10 $ 38 As of March 31, 2019, restructuring liabilities of approximately $30 million were included in the Balance Sheets in Other current liabilities and $10 million were included in Other non-current liabilities. |
Investments
Investments | 9 Months Ended |
Mar. 31, 2019 | |
Investments Schedule [Abstract] | |
Investments | NOTE 5. INVESTMENTS The Company’s investments were comprised of the following: Ownership Percentage as of March 31, 2019 As of March 31, 2019 As of June 30, 2018 (in millions) Equity method investments (a) various $ 160 $ 173 Equity securities (b) various 187 220 Total Investments $ 347 $ 393 (a) Equity method investments are primarily comprised of new Foxtel’s investment in Nickelodeon Australia Joint Venture and Elara Technologies Pte. Ltd., which operates PropTiger.com, Makaan.com. and Housing.com. (b) Equity securities are primarily comprised of certain investments in China and the Company’s investment in HT&E Limited, which operates a portfolio of Australian radio and outdoor media assets. The Company has equity securities with quoted prices in active markets as well as equity securities without readily determinable fair market values. Equity securities without readily determinable fair market values are valued at cost, less any impairment, plus or minus changes in fair value resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. The components comprising total gains and losses on equity securities are set forth below: For the three months ended March 31, For the nine months ended March 31, 2019 2018 2019 2018 (in millions) (in millions) Total gains (losses) recognized on equity securities $ 6 $ 30 $ (23 ) $ 13 Less: Net gains recognized on equity securities sold or impaired — 29 — 5 Unrealized gains (losses) recognized on equity securities held at end of period $ 6 $ 1 $ (23 ) $ 8 Equity Losses of Affiliates The Company’s share of the losses of its equity affiliates was as follows: For the three months ended March 31, For the nine months ended March 31, 2019 2018 2019 2018 (in millions) (in millions) Foxtel (a) $ — $ (970 ) $ — $ (974 ) Other equity affiliates, net (b) (4 ) (4 ) (13 ) (28 ) Total Equity losses of affiliates $ (4 ) $ (974 ) $ (13 ) $ (1,002 ) (a) Following completion of the Transaction in April 2018, News Corp ceased accounting for Foxtel as an equity method investment and began consolidating its results in the fourth quarter of fiscal 2018. See Note 3— Acquisitions, Disposals and Other Transactions. During the three and nine months ended March 31, 2018, the Company recognized a $957 million non-cash write-down of the carrying value of its investment in Foxtel. In the third quarter of fiscal 2018, the Company assessed the long-term prospects for Foxtel, on both a stand-alone and combined basis. As a result of lower-than-expected revenues from certain products and broadcast subscribers at Foxtel, the Company revised its outlook for Foxtel, which resulted in a reduction in expected future cash flows. Based on the revised projections, the Company concluded that the fair value of its investment in Foxtel declined below its carrying value. The assumptions utilized in the income approach valuation method were a discount rate of 10.25% and a long-term growth rate of 2.0%. The write-down was reflected in Equity losses of affiliates in the Statements of Operations for the three and nine months ended March 31, 2018. In accordance with ASC 350, the Company amortized $17 million and $49 (b) Other equity affiliates, net for the three and nine months ended March 31, 2019 include losses primarily from the Company’s interest in Elara. During the nine months ended March 31, 2018, the Company recognized $13 million in non-cash write-downs of certain equity method investments’ carrying values. The write-downs were reflected in Equity losses of affiliates in the Statements of Operations for the nine months ended March 31, 2018. Summarized financial information for Foxtel, presented in accordance with U.S. GAAP, was as follows: For the nine months ended March 31, 2018 (in millions) Revenues $ 1,818 Operating income (a) 155 Net income 64 (a) Includes Depreciation and amortization of $187 million for the nine months ended March 31, 2018. Operating income before depreciation and amortization was $342 million for the nine months ended March 31, 2018. |
Borrowings
Borrowings | 9 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | NOTE 6. BORROWINGS The Company’s total borrowings consist of the following: Interest rate at March 31, 2019 Due date at March 31, 2019 As of March 31, 2019 As of June 30, 2018 (in millions) Foxtel Group Credit facility 2013 (a)(b) 3.55 % Apr 7, 2019 $ — $ 222 Credit facility 2014 — tranche 1 (a) 3.55 % May 30, 2019 142 148 Credit facility 2014 — tranche 2 (a) 3.65 % Jan 31, 2020 142 148 Credit facility 2015 (a) 3.70 % Jul 31, 2020 284 296 Credit facility 2016 (a)(c) 4.25 % Sept 11, 2021 53 108 Working capital facility 2017 (a)(c) 3.85 % Jul 3, 2020 57 59 US private placement 2009 — tranche 3 6.20 % Sept 24, 2019 74 75 US private placement 2012 — USD portion — tranche 1 (d) 3.68 % Jul 25, 2019 150 150 US private placement 2012 — USD portion — tranche 2 (d) 4.27 % Jul 25, 2022 198 196 US private placement 2012 — USD portion — tranche 3 (d) 4.42 % Jul 25, 2024 148 146 US private placement 2012 — AUD portion 7.04 % Jul 25, 2022 78 83 REA Group Credit facility 2016 — tranche 2 (e)(f) — Dec 31, 2018 — 89 Credit facility 2016 — tranche 3 (e)(f) 3.01 % Dec 31, 2019 170 178 Credit facility 2018 (e) 2.71 % Apr 27, 2021 50 54 Total borrowings 1,546 1,952 Less: current portion (g) (678 ) (462 ) Long-term borrowings $ 868 $ 1,490 (a) Borrowings under these facilities bear interest at a floating rate of Australian BBSY plus an applicable margin of between 1.10% and 2.70% per annum payable quarterly. (b) During the three and nine months ended March 31, 2019, the Foxtel Group repaid its A $ 300 300 (c) As of March 31, 2019, the Foxtel Group has undrawn commitments of $241 million under these facilities for which it pays a commitment fee in the range of 40% to 45% of the applicable margin. (d) The carrying value of the borrowings include any fair value adjustments related to the Company’s fair value hedges. See Note 9 —Financial Instruments and Fair Value Measurements. (e) Borrowings under these facilities bear interest at a floating rate of the Australian BBSY plus a margin of between 0.85% and 1.45% depending on REA Group’s net leverage ratio. As of March 31, 2019, REA Group was paying a margin of between 0.85% and 1.05%. (f) During the nine months ended March 31, 2019, REA Group repaid A$120 million (approximately $87 million) of the A$480 million revolving loan facility. Remaining borrowings under the facility of A$240 million (approximately $170 million) will mature in fiscal 2020. (g) The Company classifies the current portion of long term debt as non-current 470-50 |
Redeemable Preferred Stock
Redeemable Preferred Stock | 9 Months Ended |
Mar. 31, 2019 | |
Text Block [Abstract] | |
Redeemable Preferred Stock | NOTE 7. REDEEMABLE PREFERRED STOCK In connection with the Company’s separation of its businesses (the “Separation”) from Twenty-First Century Fox, Inc. (“21st Century Fox”) on June 28, 2013 (the “Distribution Date”), 21st Century Fox sold 4,000 shares of cumulative redeemable preferred stock with a par value of $5,000 per share of a newly formed U.S. subsidiary of the Company. The preferred stock paid dividends at a rate of 9.5% per annum, payable quarterly, in arrears. The preferred stock was callable by the Company at any time after the fifth year and puttable at the option of the holder after 10 years. In July 2018, the Company exercised its call option and redeemed 100% of the outstanding redeemable preferred stock. |
Equity
Equity | 9 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Equity | NOTE 8. EQUITY The following tables summarize changes in equity for the three and nine months ended March 31, 2019 and 2018: For the three months ended March 31, 2019 Accumulated Class A Class B Additional Other Total News Common Stock Common Stock Paid-in Accumulated Comprehensive Corporation Noncontrolling Total Shares Amount Shares Amount Capital Deficit Loss Equity Interests Equity (in millions) Balance, December 31, 2018 385 $ 4 200 $ 2 $ 12,271 $ (1,937 ) $ (1,076 ) $ 9,264 $ 1,170 $ 10,434 Net income — — — — — 10 — 10 13 23 Other comprehensive income — — — — — — 57 57 10 67 Dividends — — — — (58 ) — — (58 ) (20 ) (78 ) Other — — — — 16 — — 16 (4 ) 12 Balance, March 31, 2019 385 $ 4 200 $ 2 $ 12,229 $ (1,927 ) $ (1,019 ) $ 9,289 $ 1,169 $ 10,458 For the three months ended March 31, 2018 Accumulated Class A Class B Additional Other Total News Common Stock Common Stock Paid-in Accumulated Comprehensive Corporation Noncontrolling Total Shares Amount Shares Amount Capital Deficit Loss Equity Interests Equity (in millions) Balance, December 31, 2017 383 $ 4 200 $ 2 $ 12,350 $ (664 ) $ (832 ) $ 10,860 $ 298 $ 11,158 Net (loss) income — — — — — (1,128 ) — (1,128 ) 18 (1,110 ) Other comprehensive income (loss) — — — — — — 3 3 (2 ) 1 Dividends — — — — (59 ) — — (59 ) (19 ) (78 ) Other — — — — 19 — — 19 1 20 Balance, March 31, 2018 383 $ 4 200 $ 2 $ 12,310 $ (1,792 ) $ (829 ) $ 9,695 $ 296 $ 9,991 For the nine months ended March 31, 2019 Class A Class B Additional Accumulated Other Total News Common Stock Common Stock Paid-in Accumulated Comprehensive Corporation Noncontrolling Total Shares Amount Shares Amount Capital Deficit Loss Equity Interests Equity (in millions) Balance, June 30, 2018 383 $ 4 200 $ 2 $ 12,322 $ (2,163 ) $ (874 ) $ 9,291 $ 1,186 $ 10,477 Cumulative impact from adoption of new accounting standards — — — — — 32 (22 ) 10 10 20 Net income — — — — — 206 — 206 64 270 Other comprehensive loss — — — — — — (124 ) (124 ) (46 ) (170 ) Dividends — — — — (117 ) — — (117 ) (43 ) (160 ) Other 2 — — — 24 (2 ) 1 23 (2 ) 21 Balance, March 31, 2019 385 $ 4 200 $ 2 $ 12,229 $ (1,927 ) $ (1,019 ) $ 9,289 $ 1,169 $ 10,458 For the nine months ended March 31, 2018 Accumulated Class A Class B Additional Other Total News Common Stock Common Stock Paid-in Accumulated Comprehensive Corporation Noncontrolling Total Shares Amount Shares Amount Capital Deficit Loss Equity Interests Equity (in millions) Balance, June 30, 2017 382 $ 4 200 $ 2 $ 12,395 $ (648 ) $ (964 ) $ 10,789 $ 284 $ 11,073 Net (loss) income — — — — — (1,143 ) — (1,143 ) 54 (1,089 ) Other comprehensive income — — — — — — 135 135 1 136 Dividends — — — — (118 ) — — (118 ) (40 ) (158 ) Other 1 — — — 33 (1 ) — 32 (3 ) 29 Balance, March 31, 2018 383 $ 4 200 $ 2 $ 12,310 $ (1,792 ) $ (829 ) $ 9,695 $ 296 $ 9,991 Stock Repurchases In May 2013, the Company’s Board of Directors (the “Board of Directors”) authorized the Company to repurchase up to an aggregate of $500 million of its Class A Common Stock. No stock repurchases were made during the nine months ended March 31, 2019. Through May 3, 2019, the Company cumulatively repurchased approximately 5.2 million shares of Class A Common Stock for an aggregate cost of approximately $ 71 Dividends In February 2019, the Board of Directors declared a semi-annual cash dividend of $0.10 per share for Class A Common Stock and Class B Common Stock. This dividend was paid on April 17, 2019 to stockholders of record at the close of business on March 13, 2019. The timing, declaration, amount and payment of future dividends to stockholders, if any, is within the discretion of the Board of Directors. The Board of Directors’ decisions regarding the payment of future dividends will depend on many factors, including the Company’s financial condition, earnings, capital requirements and debt facility covenants, other contractual restrictions, as well as legal requirements, regulatory constraints, industry practice, market volatility and other factors that the Board of Directors deems relevant. The following table sets forth the cash dividend declared per share for the three and nine months ended March 31, 2019 and 2018: For the three months ended March 31, For the nine months ended March 31, 2019 2018 2019 2018 Cash dividend declared per share $ 0.10 $ 0.10 $ 0.20 $ 0.20 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 9 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | NOTE 9. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS In accordance with ASC 820, “Fair Value Measurements” (“ASC 820”) fair value measurements are required to be disclosed using a three-tiered fair value hierarchy which distinguishes market participant assumptions into the following categories: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices included in Level 1. The Company could value assets and liabilities included in this level using dealer and broker quotations, certain pricing models, bid prices, quoted prices for similar assets and liabilities in active markets, or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. For the Company, this primarily includes the use of forecasted financial information and other valuation related assumptions such as discount rates and long term growth rates in the income approach as well as the market approach which utilizes certain market and transaction multiples. Under ASC 820, certain assets and liabilities are required to be remeasured to fair value at the end of each reporting period. The following table summarizes those assets and liabilities measured at fair value on a recurring basis: As of March 31, 2019 As of June 30, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in millions) Assets: Foreign currency derivatives - cash flow hedges $ — $ 3 $ — $ 3 $ — $ 3 $ — $ 3 Cross currency interest rate derivatives - fair value hedges — 27 — 27 — 29 — 29 Cross currency interest rate derivatives - economic hedges — 12 — 12 — 10 — 10 Cross currency interest rate derivatives - cash flow hedges — 107 — 107 — 76 — 76 Equity securities (a) 72 — 115 187 93 — — 93 Total assets $ 72 $ 149 $ 115 $ 336 $ 93 $ 118 $ — $ 211 Liabilities: Interest rate derivatives - cash flow hedges $ — $ 19 $ — $ 19 $ — $ 20 $ — $ 20 Mandatorily redeemable noncontrolling interests — — 12 12 — — 12 12 Cross currency interest rate derivatives - cash flow hedges — 15 — 15 — 12 — 12 Total liabilities $ — $ 34 $ 12 $ 46 $ — $ 32 $ 12 $ 44 (a) See Note 5 —Investments. There have been no transfers between levels of the fair value hierarchy during the periods presented. Equity securities The fair values of equity securities with quoted prices in active markets are determined based on the closing price at the end of each reporting period. These securities are classified as Level 1 in the fair value hierarchy outlined above. The fair values of equity securities without readily determinable fair market values are determined based on cost, less any impairment, plus or minus changes in fair value resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. These securities are classified as Level 3 in the fair value hierarchy outlined above. A rollforward of the Company’s equity securities classified as Level 3 is as follows: For the nine months ended March 31, 2019 (in millions) Balance - beginning of period (a) $ 127 Purchases 7 Sales (10 ) Foreign exchange and other (9 ) Balance - end of period $ 115 (a) Includes impact from the adoption of ASU 2016-01. See Note 1—Description of Business and Basis of Presentation. Mandatorily redeemable noncontrolling interests The Company has liabilities recorded in its Balance Sheets for its mandatorily redeemable noncontrolling interests. These liabilities represent management’s best estimate of the amounts expected to be paid in accordance with the contractual terms of the underlying acquisition agreements. The fair values of these liabilities are based on the contractual payout formulas included in the acquisition agreements taking into account the expected performance of the business. Any remeasurements or accretion related to the Company’s mandatorily redeemable noncontrolling interests are recorded through Interest (expense) income, net in the Statements of Operations. As the fair value does not rely on observable market inputs, the Company classifies these liabilities as Level 3 in the fair value hierarchy. A rollforward of the Company’s mandatorily redeemable noncontrolling interest liabilities classified as Level 3 is as follows: For the nine months ended March 31, 2019 2018 (in millions) Balance - beginning of period $ 12 $ 79 Additions — 12 Accretion 1 2 Foreign exchange movements (1 ) (1 ) Balance - end of period $ 12 $ 92 Derivative Instruments The Company is directly and indirectly affected by risks associated with changes in certain market conditions. When deemed appropriate, the Company uses derivative instruments to mitigate the potential impact of these market risks. The primary market risks managed by the Company through the use of derivative instruments include: • foreign currency exchange rate risk: arising primarily through Foxtel Group borrowings denominated in U.S. dollars and payments for license fees; and • interest rate risk: arising from fixed and floating rate Foxtel Group borrowings. The Company formally designates qualifying derivatives as hedge relationships (“hedges”) and applies hedge accounting when considered appropriate. For economic hedges where no hedge relationship has been designated, changes in fair value are included as a component of net income in each reporting period within Other, net in the Statements of Operations. The Company does not use derivative financial instruments for trading or speculative purposes. Hedges are classified as current or non-current in the Balance Sheets based on their maturity dates. Refer to the table below for further details: Fair value as of Balance Sheet Location March 31, 2019 June 30, 2018 (in millions) Foreign currency derivatives - cash flow hedges Other current assets $ 3 $ 3 Cross currency interest rate derivatives - fair value hedges Other current assets 8 — Cross currency interest rate derivatives - economic hedges Other current assets 12 — Cross currency interest rate derivatives - cash flow hedges Other current assets 32 — Cross currency interest rate derivatives - fair value hedges Other non-current assets 19 29 Cross currency interest rate derivatives - cash flow hedges Other non-current assets 75 76 Cross currency interest rate derivatives - economic hedges Other non-current assets — 10 Interest rate derivatives - cash flow hedges Other current liabilities (3 ) — Interest rate derivatives - cash flow hedges Other non-current liabilities (16 ) (20 ) Cross currency interest rate derivatives - cash flow hedges Other non-current liabilities (15 ) (12 ) Cash flow hedges The Company utilizes a combination of foreign currency derivatives, interest rate derivatives and cross currency interest rate derivatives to mitigate currency exchange and interest rate risk in relation to payments for license fees and future interest payments. The total notional value of foreign currency contract derivatives designated for hedging was $34 million as of March 31, 2019. The maximum hedged term over which the Company is hedging exposure to foreign currency fluctuations is to June 2019. As of March 31, 2019, the Company estimates that approximately $3 million of net derivative gains related to its foreign currency contract derivative cash flow hedges included in Accumulated other comprehensive loss will be reclassified into the Statement of Operations within the next 12 months. The total notional value of interest rate swap derivatives designated as cash flow hedges was approximately A$700 million as of March 31, 2019. The maximum hedged term over which the Company is hedging exposure to variability in interest payments is to September 2022. As of March 31, 2019, the Company estimates that approximately $ 4 The total notional value of the cross currency interest rate swaps that were designated as cash flow hedges was approximately A$400 million as of March 31, 2019. The maximum hedged term over which the Company is hedging exposure to variability in interest payments is to July 2024. As of March 31, 2019, the Company estimates that approximately $1 million of net derivative gains related to its cross currency interest rate swap derivative cash flow hedges included in Accumulated other comprehensive loss will be reclassified into the Statement of Operations within the next 12 months. The following tables present the impact that changes in the fair values of derivatives designated as cash flow hedges had on Accumulated other comprehensive loss and the Statement of Operations during the three and nine months ended March 31, 2019. The Company did not have any such hedges in the three and nine months ended March 31, 2018. (Gain) loss recognized in Accumulated Other Comprehensive Loss for the three months ended Gain (loss) reclassified from Accumulated Other Comprehensive Loss for the three months ended Income statement March 31, March 31, location 2019 2018 2019 2018 (in millions) Derivative instruments designated as cash flow hedges: Foreign currency derivatives - cash flow hedges $ 2 $ — $ — $ — Operating expenses Cross currency interest rate derivatives - cash flow hedges 9 — (7 ) — Interest (expense) income, net Interest rate derivatives - cash flow hedges 4 — (2 ) — Interest (expense) income, net Total $ 15 $ — $ (9 ) $ — (Gain) loss recognized in Accumulated Other Comprehensive Loss for the nine months ended Gain (loss) reclassified from Accumulated Other Comprehensive Loss for the nine months ended Income statement March 31, March 31, location 2019 2018 2019 2018 (in millions) Derivative instruments designated as cash flow hedges: Foreign currency derivatives - cash flow hedges $ (2 ) $ — $ 2 $ — Operating expenses Cross currency interest rate derivatives - cash flow hedges (7 ) — 5 — Interest (expense) income, net Interest rate derivatives - cash flow hedges 6 — (6 ) — Interest (expense) income, net Total $ (3 ) $ — $ 1 $ — During the three and nine months ended March 31, 2019 the amount recognized in the Statement of Operations for the ineffective portion of derivative instruments designated as cash flow hedges was approximately and $3 million, respectively, and the Company did not exclude any component of the changes in fair value of the derivative instruments from the assessment of hedge effectiveness. Fair value hedges The Company’s primary interest rate risk arises from its borrowings acquired as a part of the Transaction. Borrowings issued at fixed rates and in U.S. dollars expose new Foxtel to fair value interest rate risk and currency exchange rate risk. The Company manages fair value interest rate risk and currency exchange rate risk through the use of cross currency interest rate swaps under which the Company exchanges fixed interest payments equivalent to the interest payments on the U.S. dollar denominated debt for floating rate Australian dollar denominated interest payments. The changes in fair value of derivatives designated as fair value hedges and the offsetting changes in fair value of the hedged items are recognized in Other, net. As of March 31, 2019, such adjustments increased the carrying value of borrowings by approximately $3 million. The total notional value of the fair value hedges was approximately A$100 million as of March 31, 2019. The maximum hedged term over which the Company is hedging exposure to variability in interest payments is to July 2024. During the three and nine months ended March 31, 2019, the amount recognized in the Statement of Operations on derivative instruments designated as fair value hedges related to the ineffective portion was nil and the Company did not exclude any component of the changes in fair value of the derivative instruments from the assessment of hedge effectiveness. Economic (non-designated) hedges In addition to derivative instruments that are designated and qualify for hedge accounting, the Company also uses certain derivatives not designated as accounting hedges to mitigate currency exchange and interest rate risk. These are referred to as economic hedges. The changes in fair value of economic hedges are immediately recognized in the Statement of Operations. The total notional value of these cross currency interest rate derivatives was $75 million as of March 31, 2019, which relate to the U.S. private placement 2009 debt. Nonrecurring Fair Value Measurements In addition to assets and liabilities that are remeasured at fair value on a recurring basis, the Company has certain assets, primarily goodwill, intangible assets, equity method investments and property, plant and equipment, that are not required to be remeasured to fair value at the end of each reporting period. On an ongoing basis, the Company monitors whether events occur or circumstances change that would more likely than not reduce the fair values of these assets below their carrying amounts. If the Company determines that these assets are impaired, the Company would write down these assets to fair value. These nonrecurring fair value measurements are considered to be Level 3 in the fair value hierarchy. In the third quarter of fiscal 2018, the Company recognized a $957 million non-cash write-down of the carrying value of its equity method investment in Foxtel from $1,588 million to $631 million. In the second quarter of fiscal 2018, the Company recognized non-cash write-downs of certain equity method investments of approximately $13 million. The carrying value of these equity method investments decreased from $136 million to $123 million. See Note 5 – Investments. In the third quarter of fiscal 2018, the Company recognized non-cash impairment charges of $120 million and $45 million related to goodwill and intangible assets, respectively, at the News America Marketing reporting unit. The carrying value of goodwill at News America Marketing decreased from $301 million to $181 million and the carrying value of intangible assets decreased from $391 million to $346 million. See Note 4 – Impairment and Restructuring Charges. In the third quarter of fiscal 2018, the Company recognized a $41 million non-cash impairment charge related to goodwill at the FOX SPORTS Australia reporting unit. The carrying value of goodwill at FOX SPORTS Australia decreased from $490 million to $449 million. See Note 4 – Impairment and Restructuring Charges. Other Fair Value Measurements As of March 31, 2019, the carrying value of the Company’s outstanding borrowings approximates the fair value and is classified as Level 3 in the fair value hierarchy. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | NOTE 10. EARNINGS (LOSS) PER SHARE The following tables set forth the computation of basic and diluted earnings (loss) per share under ASC 260, “Earnings per Share”: For the three months ended March 31, For the nine months ended March 31, 2019 2018 2019 2018 (in millions, except per share amounts) Net income (loss) $ 23 $ (1,110 ) $ 270 $ (1,089 ) Less: Net income attributable to noncontrolling interests (13 ) (18 ) (64 ) (54 ) Less: Redeemable preferred stock dividends (a) — — — (1 ) Net income (loss) available to News Corporation stockholders $ 10 $ (1,128 ) $ 206 $ (1,144 ) Weighted-average number of shares of common stock outstanding - basic 585.0 582.8 584.6 582.6 Dilutive effect of equity awards (b) 3.8 — 2.6 — Weighted-average number of shares of common stock outstanding - diluted 588.8 582.8 587.2 582.6 Net income (loss) available to News Corporation stockholders per share - basic and diluted $ 0.02 $ (1.94 ) $ 0.35 $ (1.96 ) (a) In connection with the Separation, 21st Century Fox sold 4,000 shares of cumulative redeemable preferred stock with a par value of $5,000 per share of a newly formed U.S. subsidiary of the Company. The preferred stock paid dividends at a rate of 9.5% per annum, payable quarterly, in arrears. The preferred stock was callable by the Company at any time after the fifth year and puttable at the option of the holder after 10 years. In July 2018, the Company exercised its call option and redeemed 100% of the outstanding redeemable preferred stock. (b) The dilutive impact of the Company’s and stock options has been excluded from the calculation of diluted loss per share for the three and nine months ended March 31, 2018 because their inclusion would have an antidilutive effect on the net loss per share. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 11. 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 Company’s commitments as of March 31, 2019 have not changed significantly from the disclosures included in the 2018 Form 10-K. Contingencies The Company routinely is involved in various legal proceedings, claims and governmental inspections or investigations, including those discussed below. The outcome of these matters and claims is subject to significant uncertainty, and the Company often cannot predict what the eventual outcome of pending matters will be or the timing of the ultimate resolution of these matters. Fees, expenses, fines, penalties, judgments or settlement costs which might be incurred by the Company in connection with the various proceedings could adversely affect its results of operations and financial condition. The Company establishes an accrued liability for legal claims when it 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. Legal fees associated with litigation and similar proceedings are expensed as incurred. Except as otherwise provided below, for the contingencies disclosed for which there is at least a reasonable possibility that a loss may be incurred, the Company was unable to estimate the amount of loss or range of loss. The Company recognizes gain contingencies when the gain becomes realized or realizable. Valassis Communications, Inc. On November 8, 2013, Valassis Communications, Inc. (“Valassis”) filed a complaint in the U.S. District Court for the Eastern District of Michigan (the “District Court”) against News America Incorporated, News America Marketing FSI L.L.C., News America Marketing In-Store Services L.L.C. and News Corporation (together, the “NAM Group”) alleging violations of federal and state antitrust laws and common law business torts. The complaint sought treble damages, injunctive relief and attorneys’ fees and costs. On December 19, 2013, the NAM Group filed a motion to dismiss the complaint, and on March 30, 2016, the District Court ordered that Valassis’s bundling and tying claims be dismissed and that all remaining claims in the NAM Group’s motion to dismiss be referred to a panel of antitrust experts (the “Antitrust Expert Panel”) appointed in connection with a prior action brought by Valassis against certain members of the NAM Group. The Antitrust Expert Panel was convened and, on February 8, 2017, recommended that the NAM Group’s counterclaims in the action be dismissed with leave to replead three of the four counterclaims. The NAM Group filed an amended counterclaim on February 27, 2017. Valassis subsequently filed motions with the District Court seeking either to re-open the case in the District Court or to transfer the case to the U.S. District Court for the Southern District of New York (the “N.Y. District Court”). On September 25, 2017, the District Court granted Valassis’s motions and transferred the case to the N.Y. District Court. On April 13, 2018, the NAM Group filed a motion for summary judgment dismissing the case with the N.Y. District Court, and on February 21, 2019, the N.Y. District Court granted the NAM Group’s motion in part and denied it in part. The N.Y. District Court found that the NAM Group’s bidding practices were lawful but denied the NAM Group’s motion with respect to claims arising out of certain other alleged contracting practices. Valassis also ceased to pursue its claims relating to free-standing insert products, and those claims were dismissed. While it is not possible at this time to predict with any degree of certainty the ultimate outcome of this action, the NAM Group believes it has been compliant with applicable laws and intends to defend itself vigorously. U.K. Newspaper Matters Civil claims have been brought against the Company with respect to, among other things, voicemail interception and inappropriate payments to public officials at the Company’s former publication, The News of the World , and at The Sun , and related matters (the “U.K. Newspaper Matters”). The Company has admitted liability in many civil cases and has settled a number of cases. The Company also settled a number of claims through a private compensation scheme which was closed to new claims after April 8, 2013. In connection with the Separation, the Company and 21st Century Fox agreed in the Separation and Distribution Agreement that 21st Century Fox would indemnify the Company for payments made after the Distribution Date arising out of civil claims and investigations relating to the U.K. Newspaper Matters as well as legal and professional fees and expenses paid in connection with the previously concluded criminal matters, other than fees, expenses and costs relating to employees (i) who are not directors, officers or certain designated employees or (ii) with respect to civil matters, who are not co-defendants with the Company or 21st Century Fox. 21st Century Fox’s indemnification obligations with respect to these matters are settled on an after-tax basis. In March 2019, as part of the separation of Fox Corporation (“FOX”) from 21st Century Fox, the Company, News Corp Holdings UK & Ireland, 21st Century Fox and FOX entered into a Partial Assignment and Assumption Agreement, pursuant to which, among other things, 21st Century Fox assigned, conveyed and transferred to FOX all of its indemnification obligations with respect to the U.K. Newspaper Matters. The net expense (benefit) related to the U.K. Newspaper Matters in Selling, general and administrative was $ 2 8 46 The Company is not able to predict the ultimate outcome or cost of the civil claims. It is possible that these proceedings and any adverse resolution thereof could damage its reputation, impair its ability to conduct its business and adversely affect its results of operations and financial condition. Other The Company’s tax returns are subject to on-going review and examination by various tax authorities. Tax authorities may not agree with the treatment of items reported in the Company’s tax returns, and therefore the outcome of tax reviews and examinations can be unpredictable. The Company believes it has appropriately accrued for the expected outcome of uncertain tax matters and believes such liabilities represent a reasonable provision for taxes ultimately expected to be paid; however, these liabilities may need to be adjusted as new information becomes known and as tax examinations continue to progress, or as settlements or litigations occur. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12. INCOME TAXES At the end of each interim period, the Company estimates the annual effective tax rate and applies that rate to its ordinary quarterly earnings. The tax expense or benefit related to significant, unusual or extraordinary items that will be separately reported or reported net of their related tax effect are individually computed and recognized in the interim period in which those items occur. In addition, the effects of changes in enacted tax laws or rates or tax status are recognized in the interim period in which the change occurs. For the three months ended March 31, 2019, the Company recorded income tax expense of $7 million on pre-tax income of $30 million resulting in an effective tax rate that was higher than the U.S. statutory tax rate. The higher tax rate was primarily due to valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses and the impact from foreign operations which are subject to higher tax rates. For the nine months ended March 31, 2019, the Company recorded income tax expense of $112 million on pre-tax income of $382 million resulting in an effective tax rate that was higher than the U.S. statutory tax rate. The higher tax rate was primarily due to valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses and the impact from foreign operations which are subject to higher tax rates. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act includes significant changes to the U.S. corporate income tax system including, among other things, lowering the U.S. statutory federal tax rate to 21%. The reduction of the U.S. corporate tax rate caused the Company to adjust its U.S. deferred tax assets and liabilities to the lower federal rate of 21% at the fiscal year ended June 30, 2018. The Tax Act also added many new provisions, including a one-time repatriation tax on deemed repatriation of historical earnings of foreign subsidiaries (“transition tax”), changes to bonus depreciation, limits on deductions for executive compensation and interest expense, a tax on global intangible low-taxed income (“GILTI”), the base erosion anti-abuse tax (“BEAT”) and a deduction for foreign-derived intangible income. The Company has elected to account for the tax on GILTI and BEAT as a period cost and thus has not adjusted any net deferred tax assets of its foreign subsidiaries for the new tax. However, the Company has considered the potential impact of GILTI and BEAT on its U.S. federal net operating loss (“NOL”) carryforward and determined that the projected tax benefit to be received from its NOL carryforward may be reduced due to these provisions. The changes included in the Tax Act are broad and complex. The SEC issued Staff Accounting Bulletin No. 118 (SAB 118), as amended by ASU 2018-05, which provides guidance for companies related to the Tax Act. ASU 2018-05 allows for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. The Company’s accounting for the tax effects of the Tax Act were completed in the second quarter of fiscal 2019. Although the Company believes the effects of the Tax Act have been appropriately recorded, it will continue to monitor, among other things, changes in interpretations of the Tax Act, any legislative action arising because of the Tax Act and any changes in accounting standards for income taxes or related interpretations in response to the Tax Act. The Company intends to monitor and assess the impact of any future changes in legislative interpretations or standards and adjust its provision as new information becomes available. In accordance with SAB 118, the Company has made reasonable estimates related to (1) the remeasurement of its U.S. deferred tax balances for the reduction in the statutory tax rate, (2) the liability for the transition tax and (3) the partial valuation allowance recorded against its federal NOL carryforward due to the impact of the GILTI and BEAT provisions. As a result, the Company recognized a net provisional income tax expense of $237 million associated with these items in the fiscal year ended June 30, 2018. In the second quarter of fiscal 2019, the Company determined that there were no material changes to the provisional amounts recorded as of June 30, 2018. Management assesses available evidence to determine whether sufficient future taxable income will be generated to permit the use of existing deferred tax assets. Based on management’s assessment of available evidence, it has been determined that it is more likely than not that certain deferred tax assets in U.S. Federal, State and foreign jurisdictions may not be realized and therefore, a valuation allowance has been established against those tax assets. For the three months ended March 31, 2018, the Company recorded income tax expense of $3 million on a pre-tax loss of $1,107 million, resulting in an effective tax rate that was lower than the U.S. statutory tax rate. The lower tax rate was primarily due to a lower net tax benefit on the non-cash write-down of assets and investments in Australia and the U.S., and valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses. For the nine months ended March 31, 2018, the Company recorded income tax expense of $292 million on a pre-tax loss of $797 million, resulting in an effective tax rate that was lower than the U.S. statutory tax rate. The lower tax rate was primarily due to a lower net tax benefit on the non-cash write-down of assets and investments in Australia and the U.S., valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses and the tax charge resulting from the enactment of the Tax Act which caused an increase in income tax expense of $174 million. The Company’s tax returns are subject to on-going review and examination by various tax authorities. Tax authorities may not agree with the treatment of items reported in our tax returns, and therefore the outcome of tax reviews and examinations can be unpredictable. The Company is currently undergoing tax examinations by the Internal Revenue Service (“IRS”), various U.S. state and foreign jurisdictions. During the fiscal year ended June 30, 2018, the IRS commenced an audit of the Company for the fiscal year ended June 30, 2014. The Company believes it has appropriately accrued for the expected outcome of uncertain tax matters and believes such liabilities represent a reasonable provision for taxes ultimately expected to be paid. However, the Company may need to accrue additional income tax expense and its liability may need to be adjusted as new information becomes known and as these tax examinations continue to progress, or as settlements or litigations occur. The Company paid gross income taxes of $107 million and $116 million during the nine months ended March 31, 2019 and 2018, respectively, and received tax refunds of $17 million and $ 6 |
Segment Information
Segment Information | 9 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 13. SEGMENT INFORMATION The Company manages and reports its businesses in the following five segments: • News and Information Services —The News and Information Services segment includes the Company’s global print, digital and broadcast radio media platforms. These product offerings include the global print and digital versions of The Wall Street Journal and Barron’s Group, which includes Barron’s and MarketWatch, the Company’s suite of professional information products, including Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires and DJX, and its live journalism events. The Company also owns, among other publications, The Australian , The Daily Telegraph , Herald Sun , The Courier Mail and The Advertiser in Australia, The Times , The Sunday Times , The Sun and The Sun on Sunday in the U.K. and the New York Post in the U.S. This segment also includes News America Marketing, a leading provider of home-delivered shopper media, in-store marketing products and services and digital marketing solutions, including Checkout 51’s mobile application, as well as Unruly, a global video advertising marketplace, Wireless Group, operator of talkSPORT, the leading sports radio network in the U.K., and Storyful, a social media content agency. • Subscription Video Services —The Company’s Subscription Video Services segment provides video sports, entertainment and news services to pay-TV subscribers and other commercial licensees, primarily via cable, satellite and Internet Protocol, or IP, distribution, and consists of (i) its 65% interest in new Foxtel and (ii) Australian News Channel Pty Ltd (“ANC”). The remaining 35% interest in new Foxtel is held by Telstra, an Australian Securities Exchange (“ASX”)-listed telecommunications company. New Foxtel is the largest pay-TV provider in Australia, with over 200 channels covering sports, general entertainment, movies, documentaries, music, children’s programming and news and broadcast rights to live sporting events in Australia including: National Rugby League, Australian Football League, Cricket Australia, the domestic football league, the Australian Rugby Union and various motorsports programming. New Foxtel also operates Kayo Sports, a sports-only streaming service. ANC operates the SKY NEWS network, Australia’s 24-hour multi-channel, multi-platform news service. ANC channels are distributed throughout Australia and New Zealand and available on Foxtel and Sky Network Television NZ. ANC also owns and operates the international Australia Channel IPTV service and offers content across a variety of digital media platforms, including mobile, podcasts and social media websites. • Book Publishing —The Book Publishing segment consists of HarperCollins, the second largest consumer book publisher in the world, with operations in 17 countries and particular strengths in general fiction, nonfiction, children’s and religious publishing. HarperCollins owns more than 120 branded publishing imprints, including Harper, William Morrow, HarperCollins Children’s Books, Avon, Harlequin and Christian publishers Zondervan and Thomas Nelson, and publishes works by well-known authors such as Harper Lee, Chip and Joanna Gaines, Rick Warren, Sarah Young and Agatha Christie and popular titles such as The Hobbit , Goodnight Moon , To Kill a Mockingbird , Jesus Calling and Hillbilly Elegy . • Digital Real Estate Services —The Digital Real Estate Services segment consists of the Company’s 61.6% interest in REA Group and 80% interest in Move. The remaining 20% interest in Move is held by REA Group. REA Group is a market-leading digital media business specializing in property and is listed on the ASX (ASX: REA). REA Group advertises property and property-related services on its websites and mobile applications across Australia and Asia, including Australia’s leading residential and commercial property websites, realestate.com.au and realcommercial.com.au, and property portals in Asia. In addition, REA Group provides property-related data to the financial sector and financial services through an end-to-end digital property search and financing experience and a mortgage broking offering. Move is a leading provider of online real estate services in the U.S. and primarily operates realtor.com ® SM SM ® ® TM • Other —The Other segment consists primarily of general corporate overhead expenses, the corporate Strategy Group and costs related to the U.K. Newspaper Matters. The Company’s Strategy Group identifies new products and services across its businesses to increase revenues and profitability and targets and assesses potential acquisitions, investments and dispositions. Segment EBITDA is defined as revenues less operating expenses and selling, general and administrative expenses. Segment EBITDA does not include: depreciation and amortization, impairment and restructuring charges, equity losses of affiliates, interest (expense) income, net, other, net and income tax (expense) benefit. Segment EBITDA may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what items should be included in the calculation of Segment EBITDA. Segment EBITDA is the primary measure used by the Company’s chief operating decision maker to evaluate the performance of and allocate resources within the Company’s businesses. Segment EBITDA provides management, investors and equity analysts with a measure to analyze the operating performance of each of the Company’s business segments and its enterprise value against historical data and competitors’ data, although historical results may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences). Segment information is summarized as follows: For the three months ended For the nine months ended March 31, March 31, 2019 2018 2019 2018 (in millions) Revenues: News and Information Services $ 1,224 $ 1,286 $ 3,729 $ 3,825 Subscription Video Services 539 129 1,666 394 Book Publishing 421 398 1,335 1,268 Digital Real Estate Services 272 279 876 842 Other 1 1 2 2 Total revenues $ 2,457 $ 2,093 $ 7,608 $ 6,331 Segment EBITDA: News and Information Services $ 73 $ 87 $ 309 $ 302 Subscription Video Services 98 16 295 76 Book Publishing 53 41 209 167 Digital Real Estate Services 74 88 300 302 Other (51 ) (51 ) (138 ) (90 ) Depreciation and amortization (168 ) (100 ) (494 ) (297 ) Impairment and restructuring charges (34 ) (246 ) (71 ) (273 ) Equity losses of affiliates (4 ) (974 ) (13 ) (1,002 ) Interest (expense) income, net (14 ) 2 (45 ) 9 Other, net 3 30 30 9 Income (loss) before income tax expense 30 (1,107 ) 382 (797 ) Income tax expense (7 ) (3 ) (112 ) (292 ) Net income (loss) $ 23 $ (1,110 ) $ 270 $ (1,089 ) As of March 31, 2019 As of June 30, 2018 (in millions) Total assets: News and Information Services $ 5,840 $ 6,039 Subscription Video Services 4,495 4,738 Book Publishing 2,073 1,898 Digital Real Estate Services 2,209 2,171 Other (a) 1,094 1,107 Investments 347 393 Total assets $ 16,058 $ 16,346 (a) The Other segment primarily includes Cash and cash equivalents. As of March 31, 2019 As of June 30, 2018 (in millions) Goodwill and intangible assets, net: News and Information Services $ 2,695 $ 2,730 Subscription Video Services 2,662 2,853 Book Publishing 778 804 Digital Real Estate Services 1,602 1,502 Total Goodwill and intangible assets, net $ 7,737 $ 7,889 |
Additional Financial Informatio
Additional Financial Information | 9 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Financial Information | NOTE 14. ADDITIONAL FINANCIAL INFORMATION Receivables, net Receivables are presented net of an allowance for doubtful accounts, which is an estimate of amounts that may not be collectible. The allowance for doubtful accounts is estimated based on historical experience, receivable aging, current economic trends and specific identification of certain receivables that are at risk of not being collected. Receivables, net consist of: As of March 31, 2019 As of June 30, 2018 (in millions) Receivables $ 1,681 $ 1,829 Allowance for sales returns (a) — (171 ) Allowance for doubtful accounts (50 ) (46 ) Receivables, net $ 1,631 $ 1,612 (a) As a result of the adoption of the new revenue recognition standard during the first quarter of fiscal 2019, the Company reclassified the allowance for sales returns from Receivables, net to Other current liabilities. See Note 2—Revenues. Other Non-Current Assets The following table sets forth the components of Other non-current assets: As of March 31, 2019 As of June 30, 2018 (in millions) Royalty advances to authors $ 340 $ 312 Retirement benefit assets 155 135 Inventory (a) 123 143 Other 295 241 Total Other non-current assets $ 913 $ 831 (a) Primarily consists of the non-current portion of programming rights. Other Current Liabilities The following table sets forth the components of Other current liabilities: As of As of March 31, 2019 June 30, 2018 (in millions) Royalties and commissions payable $ 241 $ 187 Allowance for sales returns 198 — Current tax payable 15 17 Other 291 168 Total Other current liabilities $ 745 $ 372 Other, net The following table sets forth the components of Other, net: For the three months ended For the nine months ended March 31, March 31, 2019 2018 2019 2018 (in millions) Dividends received from equity security investments $ 1 $ — $ 24 $ — Remeasurement of equity securities (a) 6 — (23 ) — Write-down of available-for-sale securities (b) — (3 ) — (33 ) Gain on sale of Australian property 2 — 14 — Gain on sale of SEEKAsia (c) — 32 — 32 Other, net (d) (6 ) 1 15 10 Total Other, net $ 3 $ 30 $ 30 $ 9 (a) As a result of the adoption of ASU 2016-01 during the first quarter of fiscal 2019, the Company has included the impact from the remeasurement of equity securities in Other, net in the Statement of Operations for the three and nine months ended March 31, 2019. During the three and nine months ended March 31, 2018, the impact from the remeasurement of equity securities was included in Accumulated other comprehensive loss in the Balance Sheets. (b) For the three and nine months ended March 31, 2018, the write-downs of available-for-sale securities were reclassified out of Accumulated other comprehensive loss and included in Other, net in the Statements of Operations. (c) During the three months ended March 31, 2018, the Company sold its investment in SEEKAsia for $122 million in cash and recognized a $32 million gain in Other, net in the Statements of Operations. (d) As a result of the adoption of ASU 2017-07 during the first quarter of fiscal 2019, the Company has included the other non-service cost components of net periodic benefit cost (income) in Other, net in the Statements of Operations for the three and nine months ended March 31, 2019 and 2018. Supplemental Cash Flow Information The following table sets forth the Company’s cash paid for taxes and interest: For the nine months ended March 31, 2019 2018 (in millions) Cash paid for interest $ 67 $ 8 Cash paid for taxes 107 116 |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 9 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of the Company, which are referred to herein as the “Consolidated Financial Statements,” have been prepared in accordance with generally accepted accounting principles in the United States of America (“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 Consolidated Financial Statements. Operating results for the interim period presented are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2019. 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 could differ from those estimates. Intercompany transactions and balances have been eliminated. Equity investments in which the Company exercises significant influence but does not exercise control and is not the primary beneficiary are accounted for using the equity method. In accordance with ASU 2016-01, investments in which the Company is not able to exercise significant influence over the investee are measured at fair value, if the fair value is readily determinable. If an investment’s fair value is not readily determinable, the Company will measure the investment at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. The consolidated statements of operations are referred to herein as the “Statements of Operations.” The consolidated balance sheets are referred to herein as the “Balance Sheets.” The consolidated statements of cash flows are referred to herein as the “Statements of Cash Flows.” The accompanying 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, 2018 as filed with the Securities and Exchange Commission (the “SEC”) on August 15, 2018 (the “2018 Form 10-K”). Certain reclassifications have been made to the prior period consolidated financial statements to conform to the current year presentation. Specifically, in the first quarter of fiscal 2019, the Company reclassified Conference Sponsorship revenues at its Dow Jones reporting unit and Merchandising revenues at News America Marketing from Other revenues to Advertising revenues as the Company believes that the reclassification more accurately reflects the nature of those revenue streams. These revenue reclassifications totaled $15 million and $42 million for the three and nine months ended March 31, 2018, respectively, and $57 million for the fiscal year ended June 30, 2018. The Company’s fiscal year ends on the Sunday closest to June 30. Fiscal 2019 and fiscal 2018 include 52 weeks. All references to the three and nine months ended March 31, 2019 and 2018 relate to the three and nine months ended March 31, 2019 and April 1, 2018, respectively. For convenience purposes, the Company continues to date its Consolidated Financial Statements as of March 31. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which amended the FASB Accounting Standards Codification by creating Topic 606, “Revenue from Contracts with Customers” (“ASC 606”). ASU 2014-09 removes inconsistencies and differences in revenue recognition requirements between GAAP and International Financial Reporting Standards and requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company adopted ASU 2014-09 on a modified retrospective basis as of July 1, 2018. As a result, the Company recorded a $ 20 In January 2016, the FASB issued ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The amendments in ASU 2016-01 address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 is effective for the Company for annual and interim reporting periods beginning July 1, 2018. The Company adopted the guidance on a cumulative-effect basis for its investments with readily determinable fair values effective July 1, 2018. In accordance with ASU 2016-01, the cumulative net unrealized gains (losses) for these investments contained within Accumulated other comprehensive loss were reclassified through Accumulated deficit as of July 1, 2018, and the Company recorded a $ 22 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”). The amendments in ASU 2017-07 require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic benefit cost (income) as defined in paragraphs 715-30-35-4 and 715-60-35-9 are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. ASU 2017-07 allows for a practical expedient that permits a company to use the amounts disclosed in its pension and other postretirement benefit plans note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. ASU 2017-07 is effective for the Company for annual and interim reporting periods beginning July 1, 2018. The Company adopted ASU 2017-07 utilizing the practical expedient. The other components of net periodic benefit cost (income) are included in Other, net in the Statements of Operations. The adoption did not have a material impact on the Company’s Consolidated Financial Statements. In June 2018, the FASB issued ASU 2018-07, “Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting” (“ASU 2018-07”). The amendments in ASU 2018-07 expanded the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. As permitted by ASU 2018-07, the Company early-adopted this standard and the adoption did not have a material impact on the Company’s Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)” (“ASU 2018-15”). The amendments in ASU 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). As permitted by ASU 2018-15, the Company early-adopted this standard on a prospective basis. The adoption did not have a material impact on the Company’s Consolidated Financial Statements. Issued In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). The amendments in ASU 2016-02 require lessees to recognize all leases on the balance sheet by recording a right-of-use asset and a lease liability, and lessor accounting has been updated to align with the new requirements for lessees. The new standard also provides changes to the existing sale-leaseback guidance. ASU 2016-02 is effective for the Company for annual and interim reporting periods beginning July 1, 2019. The FASB has also issued additional standards which provide additional clarification and implementation guidance on the previously issued ASU 2016-02 and have the same effective date as the original standard. The Company plans to apply this guidance on a modified retrospective basis at the beginning of the period of adoption through a cumulative-effect adjustment to retained earnings, with no restatement of prior periods. The Company has selected its lease management system and is in the process of completing its inventory of its lease contracts and implementing processes and controls to enable the preparation of the required financial information for this standard. The Company is currently evaluating the impact ASU 2016-02 will have on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). The amendments in ASU 2016-13 require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. ASU 2016-13 is effective for the Company for annual and interim reporting periods beginning July 1, 2020. The Company is currently evaluating the impact ASU 2016-13 will have on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”). The amendments in ASU 2017-12 more closely align the results of cash flow and fair value hedge accounting with risk management activities through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements. The amendments address specific limitations in current GAAP by expanding hedge accounting for both nonfinancial and financial risk components and by refining the measurement of hedge results to better reflect an entity’s hedging strategies. ASU 2017-12 is effective for the Company for annual and interim reporting periods beginning July 1, 2019. The Company is currently evaluating the impact ASU 2017-12 will have on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”). The amendments in ASU 2018-02 provide a reclassification from Accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act (as defined below) . See Note 12— Income Taxes. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statement users. ASU 2018-02 is effective for the Company for annual and interim reporting periods beginning July 1, 2019. The Company is currently evaluating the impact ASU 2018-02 will have on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 removes, modifies and adds certain disclosure requirements in Topic 820, “Fair Value Measurement.” ASU 2018-13 eliminates certain disclosures related to transfers and the valuation process, modifies disclosures for investments that are valued based on net asset value, clarifies the measurement uncertainty disclosure, and requires additional disclosures for Level 3 fair value measurements. ASU 2018-13 is effective for the Company for annual and interim reporting periods beginning July 1, 2020. The Company is currently evaluating the impact ASU 2018-13 will have on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans” (“ASU 2018-14”). The amendments in ASU 2018-14 modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. ASU 2018-14 eliminates the disclosures for amounts in Accumulated other comprehensive loss expected to be recognized as a component of net periodic benefit cost (income) and the effect of a percentage change in health care cost trend rate. ASU 2018-14 is effective for the Company for annual and interim reporting periods beginning July 1, 2021. The Company will comply with the new disclosure requirements in ASU 2018-14 beginning with its Annual Report on Form 10-K for the fiscal year ending June 30, 2019. |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Cumulative Effect and Impact of Adoption of ASC 606 on Consolidated Statement of Operations and Consolidated Balance Sheets | The Company’s revenues and expenses for the three and nine months ended March 31, 2019 and the opening balance sheet as of July 1, 2018 under both ASC 606 and the prior standard, ASC 605 are as follows: For the three months ended March 31, 2019 ASC 605 Effects of Adoption ASC 606 (in millions) Revenue: Circulation and subscription $ 1,019 $ 6 $ 1,025 Advertising 673 (3 ) 670 Consumer 420 (17 ) 403 Real estate 218 — 218 Other 144 (3 ) 141 Total Revenues $ 2,474 $ (17 ) $ 2,457 Operating expenses and Selling, general and administrative $ (2,228 ) $ 18 $ (2,210 ) Net income $ 22 $ 1 $ 23 For the nine months ended March 31, 2019 ASC 605 Effects of Adoption ASC 606 (in millions) Revenue: Circulation and subscription $ 3,076 $ 12 $ 3,088 Advertising 2,055 (3 ) 2,052 Consumer 1,328 (47 ) 1,281 Real estate 693 — 693 Other 510 (16 ) 494 Total Revenues $ 7,662 $ (54 ) $ 7,608 Operating expenses and Selling, general and administrative $ (6,706 ) $ 73 $ (6,633 ) Net income $ 256 $ 14 $ 270 As of July 1, 2018 ASC 605 Effects of Adoption ASC 606 (in millions) Assets: Receivables, net $ 1,612 $ 200 $ 1,812 Other current assets 372 (4 ) 368 Deferred income tax assets 279 2 281 Other non-current assets 831 92 923 Liabilities and Equity: Deferred revenue $ 516 $ (6 ) $ 510 Other current liabilities 372 194 566 Deferred income tax liabilities 389 11 400 Other non-current liabilities 430 71 501 Accumulated deficit (2,163 ) 20 (2,143 ) |
Summary of Disaggregated Revenue by Type and Segment | Disaggregated revenue The following table presents revenue by type and segment for the three and nine months ended March 31, 2019: For the three months ended March 31, 2019 News and Information Services Subscription Video Services Book Publishing Digital Real Estate Services Other Total Revenues (in millions) Revenues: Circulation and subscription $ 538 $ 474 $ — $ 12 $ 1 $ 1,025 Advertising 593 50 — 27 — 670 Consumer — — 403 — — 403 Real estate — — — 218 — 218 Other 93 15 18 15 — 141 Total Revenues $ 1,224 $ 539 $ 421 $ 272 $ 1 $ 2,457 For the nine months ended March 31, 2019 News and Information Services Subscription Video Services Book Publishing Digital Real Estate Services Other Total Revenues (in millions) Revenues: Circulation and subscription $ 1,593 $ 1,455 $ — $ 39 $ 1 $ 3,088 Advertising 1,801 162 — 89 — 2,052 Consumer — — 1,281 — — 1,281 Real estate — — — 693 — 693 Other 335 49 54 55 1 494 Total Revenues $ 3,729 $ 1,666 $ 1,335 $ 876 $ 2 $ 7,608 |
Summary of Deferred Revenue from Contracts with Customers | The following table presents changes in the deferred revenue balance for the three and nine months ended March 31 , 2019 : For the three months ended March 31, 2019 For the nine months ended March 31, 2019 (in millions) (in millions) Balance, beginning of period $ 430 $ 510 Deferral of revenue 934 2,271 Recognition of deferred revenue (a) (883 ) (2,300 ) Other (21 ) (21 ) Balance, end of period $ 460 $ 460 (a) For the three and nine months ended March 31, 2019, the Company recognized approximately $241 million and $461 million, respectively, of revenue which was included in the opening deferred revenue balance for each of the respective periods. |
Acquisitions, Disposals and O_2
Acquisitions, Disposals and Other Transactions (Tables) - New Foxtel [Member] | 9 Months Ended |
Mar. 31, 2019 | |
Schedule of Total Aggregate Purchase Price Transaction Value/ Fair Value of Acquisition | The total aggregate purchase price associated with the Transaction at the completion date is set forth below (in millions): Consideration transferred (a) $ 331 Fair value of News Corp previously held equity interest in Foxtel 631 Fair value of noncontrolling interest (b) 578 Fair value of net assets $ 1,540 a) Primarily represents the fair value of 35% of FOX SPORTS Australia exchanged as consideration in the Transaction and has been included in noncontrolling interest. b) Primarily represents the fair value of 35% of Foxtel, which includes the impact of certain market participant synergies. |
Schedule of Fair Value of Assets Acquired and Liabilities Assumed | Under the acquisition method of accounting, the aggregate purchase price, based on a valuation of 100% of Foxtel, was allocated to net tangible and intangible assets based upon their fair value as of the date of completion of the Transaction. The excess of the aggregate purchase price over the fair value of the net tangible and intangible assets acquired was recorded as goodwill. The allocation is as follows (in millions): Assets acquired: Cash $ 78 Current assets 492 Property, plant and equipment 967 Intangible assets 861 Goodwill 1,559 Other non-current assets 268 Total assets acquired $ 4,225 Liabilities assumed: Current liabilities $ 611 Long-term borrowings 1,751 Other non-current liabilities 323 Total liabilities assumed 2,685 Net assets acquired $ 1,540 |
Impairment and Restructuring _2
Impairment and Restructuring Charges (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Changes in Restructuring Program Liabilities | Changes in restructuring program liabilities were as follows: For the three months ended March 31, 2019 2018 One time employee termination benefits Facility related costs Other costs Total One time employee termination benefits Facility related costs Other costs Total (in millions) Balance, beginning of period $ 20 $ 2 $ 11 $ 33 $ 22 $ 4 $ 10 $ 36 Additions 25 — — 25 21 — — 21 Payments (17 ) — (1 ) (18 ) (22 ) — — (22 ) Other — — — — 3 — — 3 Balance, end of period $ 28 $ 2 $ 10 $ 40 $ 24 $ 4 $ 10 $ 38 For the nine months ended March 31, 2019 2018 One time employee termination benefits Facility related costs Other costs Total One time employee termination benefits Facility related costs Other costs Total (in millions) Balance, beginning of period $ 29 $ 2 $ 11 $ 42 $ 33 $ 6 $ 10 $ 49 Additions 62 — — 62 47 — 1 48 Payments (61 ) — (2 ) (63 ) (60 ) (1 ) (1 ) (62 ) Other (2 ) — 1 (1 ) 4 (1 ) — 3 Balance, end of period $ 28 $ 2 $ 10 $ 40 $ 24 $ 4 $ 10 $ 38 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Investments Schedule [Abstract] | |
Schedule of Investments | The Company’s investments were comprised of the following: Ownership Percentage as of March 31, 2019 As of March 31, 2019 As of June 30, 2018 (in millions) Equity method investments (a) various $ 160 $ 173 Equity securities (b) various 187 220 Total Investments $ 347 $ 393 (a) Equity method investments are primarily comprised of new Foxtel’s investment in Nickelodeon Australia Joint Venture and Elara Technologies Pte. Ltd., which operates PropTiger.com, Makaan.com. and Housing.com. (b) Equity securities are primarily comprised of certain investments in China and the Company’s investment in HT&E Limited, which operates a portfolio of Australian radio and outdoor media assets. |
Schedule of Total Gains and Losses on Equity Securities | The Company has equity securities with quoted prices in active markets as well as equity securities without readily determinable fair market values. Equity securities without readily determinable fair market values are valued at cost, less any impairment, plus or minus changes in fair value resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. The components comprising total gains and losses on equity securities are set forth below: For the three months ended March 31, For the nine months ended March 31, 2019 2018 2019 2018 (in millions) (in millions) Total gains (losses) recognized on equity securities $ 6 $ 30 $ (23 ) $ 13 Less: Net gains recognized on equity securities sold or impaired — 29 — 5 Unrealized gains (losses) recognized on equity securities held at end of period $ 6 $ 1 $ (23 ) $ 8 |
Schedule of Losses of Equity Affiliates | The Company’s share of the losses of its equity affiliates was as follows: For the three months ended March 31, For the nine months ended March 31, 2019 2018 2019 2018 (in millions) (in millions) Foxtel (a) $ — $ (970 ) $ — $ (974 ) Other equity affiliates, net (b) (4 ) (4 ) (13 ) (28 ) Total Equity losses of affiliates $ (4 ) $ (974 ) $ (13 ) $ (1,002 ) (a) Following completion of the Transaction in April 2018, News Corp ceased accounting for Foxtel as an equity method investment and began consolidating its results in the fourth quarter of fiscal 2018. See Note 3— Acquisitions, Disposals and Other Transactions. During the three and nine months ended March 31, 2018, the Company recognized a $957 million non-cash write-down of the carrying value of its investment in Foxtel. In the third quarter of fiscal 2018, the Company assessed the long-term prospects for Foxtel, on both a stand-alone and combined basis. As a result of lower-than-expected revenues from certain products and broadcast subscribers at Foxtel, the Company revised its outlook for Foxtel, which resulted in a reduction in expected future cash flows. Based on the revised projections, the Company concluded that the fair value of its investment in Foxtel declined below its carrying value. The assumptions utilized in the income approach valuation method were a discount rate of 10.25% and a long-term growth rate of 2.0%. The write-down was reflected in Equity losses of affiliates in the Statements of Operations for the three and nine months ended March 31, 2018. In accordance with ASC 350, the Company amortized $17 million and $49 (b) Other equity affiliates, net for the three and nine months ended March 31, 2019 include losses primarily from the Company’s interest in Elara. During the nine months ended March 31, 2018, the Company recognized $13 million in non-cash write-downs of certain equity method investments’ carrying values. The write-downs were reflected in Equity losses of affiliates in the Statements of Operations for the nine months ended March 31, 2018. |
Schedule of Summarized Financial Information | Summarized financial information for Foxtel, presented in accordance with U.S. GAAP, was as follows: For the nine months ended March 31, 2018 (in millions) Revenues $ 1,818 Operating income (a) 155 Net income 64 (a) Includes Depreciation and amortization of $187 million for the nine months ended March 31, 2018. Operating income before depreciation and amortization was $342 million for the nine months ended March 31, 2018. |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | The Company’s total borrowings consist of the following: Interest rate at March 31, 2019 Due date at March 31, 2019 As of March 31, 2019 As of June 30, 2018 (in millions) Foxtel Group Credit facility 2013 (a)(b) 3.55 % Apr 7, 2019 $ — $ 222 Credit facility 2014 — tranche 1 (a) 3.55 % May 30, 2019 142 148 Credit facility 2014 — tranche 2 (a) 3.65 % Jan 31, 2020 142 148 Credit facility 2015 (a) 3.70 % Jul 31, 2020 284 296 Credit facility 2016 (a)(c) 4.25 % Sept 11, 2021 53 108 Working capital facility 2017 (a)(c) 3.85 % Jul 3, 2020 57 59 US private placement 2009 — tranche 3 6.20 % Sept 24, 2019 74 75 US private placement 2012 — USD portion — tranche 1 (d) 3.68 % Jul 25, 2019 150 150 US private placement 2012 — USD portion — tranche 2 (d) 4.27 % Jul 25, 2022 198 196 US private placement 2012 — USD portion — tranche 3 (d) 4.42 % Jul 25, 2024 148 146 US private placement 2012 — AUD portion 7.04 % Jul 25, 2022 78 83 REA Group Credit facility 2016 — tranche 2 (e)(f) — Dec 31, 2018 — 89 Credit facility 2016 — tranche 3 (e)(f) 3.01 % Dec 31, 2019 170 178 Credit facility 2018 (e) 2.71 % Apr 27, 2021 50 54 Total borrowings 1,546 1,952 Less: current portion (g) (678 ) (462 ) Long-term borrowings $ 868 $ 1,490 (a) Borrowings under these facilities bear interest at a floating rate of Australian BBSY plus an applicable margin of between 1.10% and 2.70% per annum payable quarterly. (b) During the three and nine months ended March 31, 2019, the Foxtel Group repaid its A $ 300 300 (c) As of March 31, 2019, the Foxtel Group has undrawn commitments of $241 million under these facilities for which it pays a commitment fee in the range of 40% to 45% of the applicable margin. (d) The carrying value of the borrowings include any fair value adjustments related to the Company’s fair value hedges. See Note 9 —Financial Instruments and Fair Value Measurements. (e) Borrowings under these facilities bear interest at a floating rate of the Australian BBSY plus a margin of between 0.85% and 1.45% depending on REA Group’s net leverage ratio. As of March 31, 2019, REA Group was paying a margin of between 0.85% and 1.05%. (f) During the nine months ended March 31, 2019, REA Group repaid A$120 million (approximately $87 million) of the A$480 million revolving loan facility. Remaining borrowings under the facility of A$240 million (approximately $170 million) will mature in fiscal 2020. (g) The Company classifies the current portion of long term debt as non-current 470-50 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Summary of Changes in Equity | The following tables summarize changes in equity for the three and nine months ended March 31, 2019 and 2018: For the three months ended March 31, 2019 Accumulated Class A Class B Additional Other Total News Common Stock Common Stock Paid-in Accumulated Comprehensive Corporation Noncontrolling Total Shares Amount Shares Amount Capital Deficit Loss Equity Interests Equity (in millions) Balance, December 31, 2018 385 $ 4 200 $ 2 $ 12,271 $ (1,937 ) $ (1,076 ) $ 9,264 $ 1,170 $ 10,434 Net income — — — — — 10 — 10 13 23 Other comprehensive income — — — — — — 57 57 10 67 Dividends — — — — (58 ) — — (58 ) (20 ) (78 ) Other — — — — 16 — — 16 (4 ) 12 Balance, March 31, 2019 385 $ 4 200 $ 2 $ 12,229 $ (1,927 ) $ (1,019 ) $ 9,289 $ 1,169 $ 10,458 For the three months ended March 31, 2018 Accumulated Class A Class B Additional Other Total News Common Stock Common Stock Paid-in Accumulated Comprehensive Corporation Noncontrolling Total Shares Amount Shares Amount Capital Deficit Loss Equity Interests Equity (in millions) Balance, December 31, 2017 383 $ 4 200 $ 2 $ 12,350 $ (664 ) $ (832 ) $ 10,860 $ 298 $ 11,158 Net (loss) income — — — — — (1,128 ) — (1,128 ) 18 (1,110 ) Other comprehensive income (loss) — — — — — — 3 3 (2 ) 1 Dividends — — — — (59 ) — — (59 ) (19 ) (78 ) Other — — — — 19 — — 19 1 20 Balance, March 31, 2018 383 $ 4 200 $ 2 $ 12,310 $ (1,792 ) $ (829 ) $ 9,695 $ 296 $ 9,991 For the nine months ended March 31, 2019 Class A Class B Additional Accumulated Other Total News Common Stock Common Stock Paid-in Accumulated Comprehensive Corporation Noncontrolling Total Shares Amount Shares Amount Capital Deficit Loss Equity Interests Equity (in millions) Balance, June 30, 2018 383 $ 4 200 $ 2 $ 12,322 $ (2,163 ) $ (874 ) $ 9,291 $ 1,186 $ 10,477 Cumulative impact from adoption of new accounting standards — — — — — 32 (22 ) 10 10 20 Net income — — — — — 206 — 206 64 270 Other comprehensive loss — — — — — — (124 ) (124 ) (46 ) (170 ) Dividends — — — — (117 ) — — (117 ) (43 ) (160 ) Other 2 — — — 24 (2 ) 1 23 (2 ) 21 Balance, March 31, 2019 385 $ 4 200 $ 2 $ 12,229 $ (1,927 ) $ (1,019 ) $ 9,289 $ 1,169 $ 10,458 For the nine months ended March 31, 2018 Accumulated Class A Class B Additional Other Total News Common Stock Common Stock Paid-in Accumulated Comprehensive Corporation Noncontrolling Total Shares Amount Shares Amount Capital Deficit Loss Equity Interests Equity (in millions) Balance, June 30, 2017 382 $ 4 200 $ 2 $ 12,395 $ (648 ) $ (964 ) $ 10,789 $ 284 $ 11,073 Net (loss) income — — — — — (1,143 ) — (1,143 ) 54 (1,089 ) Other comprehensive income — — — — — — 135 135 1 136 Dividends — — — — (118 ) — — (118 ) (40 ) (158 ) Other 1 — — — 33 (1 ) — 32 (3 ) 29 Balance, March 31, 2018 383 $ 4 200 $ 2 $ 12,310 $ (1,792 ) $ (829 ) $ 9,695 $ 296 $ 9,991 |
Summary of dividends declared per share | The following table sets forth the cash dividend declared per share for the three and nine months ended March 31, 2019 and 2018: For the three months ended March 31, For the nine months ended March 31, 2019 2018 2019 2018 Cash dividend declared per share $ 0.10 $ 0.10 $ 0.20 $ 0.20 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured At Fair Value on Recurring Basis | The following table summarizes those assets and liabilities measured at fair value on a recurring basis: As of March 31, 2019 As of June 30, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in millions) Assets: Foreign currency derivatives - cash flow hedges $ — $ 3 $ — $ 3 $ — $ 3 $ — $ 3 Cross currency interest rate derivatives - fair value hedges — 27 — 27 — 29 — 29 Cross currency interest rate derivatives - economic hedges — 12 — 12 — 10 — 10 Cross currency interest rate derivatives - cash flow hedges — 107 — 107 — 76 — 76 Equity securities (a) 72 — 115 187 93 — — 93 Total assets $ 72 $ 149 $ 115 $ 336 $ 93 $ 118 $ — $ 211 Liabilities: Interest rate derivatives - cash flow hedges $ — $ 19 $ — $ 19 $ — $ 20 $ — $ 20 Mandatorily redeemable noncontrolling interests — — 12 12 — — 12 12 Cross currency interest rate derivatives - cash flow hedges — 15 — 15 — 12 — 12 Total liabilities $ — $ 34 $ 12 $ 46 $ — $ 32 $ 12 $ 44 (a) See Note 5 —Investments. |
Summary of Equity Securities Classified as Level 3 | A rollforward of the Company’s equity securities classified as Level 3 is as follows: For the nine months ended March 31, 2019 (in millions) Balance - beginning of period (a) $ 127 Purchases 7 Sales (10 ) Foreign exchange and other (9 ) Balance - end of period $ 115 (a) Includes impact from the adoption of ASU 2016-01. See Note 1—Description of Business and Basis of Presentation. |
Summary of Mandatorily Redeemable Noncontrolling Interest Liabilities Classified Level 3 | A rollforward of the Company’s mandatorily redeemable noncontrolling interest liabilities classified as Level 3 is as follows: For the nine months ended March 31, 2019 2018 (in millions) Balance - beginning of period $ 12 $ 79 Additions — 12 Accretion 1 2 Foreign exchange movements (1 ) (1 ) Balance - end of period $ 12 $ 92 |
Summary of Hedges Classified as Current or Non-Current in Balance Sheets Based on Maturity Dates | Hedges are classified as current or non-current in the Balance Sheets based on their maturity dates. Refer to the table below for further details: Fair value as of Balance Sheet Location March 31, 2019 June 30, 2018 (in millions) Foreign currency derivatives - cash flow hedges Other current assets $ 3 $ 3 Cross currency interest rate derivatives - fair value hedges Other current assets 8 — Cross currency interest rate derivatives - economic hedges Other current assets 12 — Cross currency interest rate derivatives - cash flow hedges Other current assets 32 — Cross currency interest rate derivatives - fair value hedges Other non-current assets 19 29 Cross currency interest rate derivatives - cash flow hedges Other non-current assets 75 76 Cross currency interest rate derivatives - economic hedges Other non-current assets — 10 Interest rate derivatives - cash flow hedges Other current liabilities (3 ) — Interest rate derivatives - cash flow hedges Other non-current liabilities (16 ) (20 ) Cross currency interest rate derivatives - cash flow hedges Other non-current liabilities (15 ) (12 ) |
Financial Instruments and Fair Value Measurements - Summary of Derivative Instruments Designated as Cash Flow Hedges | The following tables present the impact that changes in the fair values of derivatives designated as cash flow hedges had on Accumulated other comprehensive loss and the Statement of Operations during the three and nine months ended March 31, 2019. The Company did not have any such hedges in the three and nine months ended March 31, 2018. (Gain) loss recognized in Accumulated Other Comprehensive Loss for the three months ended Gain (loss) reclassified from Accumulated Other Comprehensive Loss for the three months ended Income statement March 31, March 31, location 2019 2018 2019 2018 (in millions) Derivative instruments designated as cash flow hedges: Foreign currency derivatives - cash flow hedges $ 2 $ — $ — $ — Operating expenses Cross currency interest rate derivatives - cash flow hedges 9 — (7 ) — Interest (expense) income, net Interest rate derivatives - cash flow hedges 4 — (2 ) — Interest (expense) income, net Total $ 15 $ — $ (9 ) $ — (Gain) loss recognized in Accumulated Other Comprehensive Loss for the nine months ended Gain (loss) reclassified from Accumulated Other Comprehensive Loss for the nine months ended Income statement March 31, March 31, location 2019 2018 2019 2018 (in millions) Derivative instruments designated as cash flow hedges: Foreign currency derivatives - cash flow hedges $ (2 ) $ — $ 2 $ — Operating expenses Cross currency interest rate derivatives - cash flow hedges (7 ) — 5 — Interest (expense) income, net Interest rate derivatives - cash flow hedges 6 — (6 ) — Interest (expense) income, net Total $ (3 ) $ — $ 1 $ — |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings (Loss) per Share | The following tables set forth the computation of basic and diluted earnings (loss) per share under ASC 260, “Earnings per Share”: For the three months ended March 31, For the nine months ended March 31, 2019 2018 2019 2018 (in millions, except per share amounts) Net income (loss) $ 23 $ (1,110 ) $ 270 $ (1,089 ) Less: Net income attributable to noncontrolling interests (13 ) (18 ) (64 ) (54 ) Less: Redeemable preferred stock dividends (a) — — — (1 ) Net income (loss) available to News Corporation stockholders $ 10 $ (1,128 ) $ 206 $ (1,144 ) Weighted-average number of shares of common stock outstanding - basic 585.0 582.8 584.6 582.6 Dilutive effect of equity awards (b) 3.8 — 2.6 — Weighted-average number of shares of common stock outstanding - diluted 588.8 582.8 587.2 582.6 Net income (loss) available to News Corporation stockholders per share - basic and diluted $ 0.02 $ (1.94 ) $ 0.35 $ (1.96 ) (a) In connection with the Separation, 21st Century Fox sold 4,000 shares of cumulative redeemable preferred stock with a par value of $5,000 per share of a newly formed U.S. subsidiary of the Company. The preferred stock paid dividends at a rate of 9.5% per annum, payable quarterly, in arrears. The preferred stock was callable by the Company at any time after the fifth year and puttable at the option of the holder after 10 years. In July 2018, the Company exercised its call option and redeemed 100% of the outstanding redeemable preferred stock. (b) The dilutive impact of the Company’s and stock options has been excluded from the calculation of diluted loss per share for the three and nine months ended March 31, 2018 because their inclusion would have an antidilutive effect on the net loss per share. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue and Segment EBITDA from Segments to Consolidated | Segment EBITDA is the primary measure used by the Company’s chief operating decision maker to evaluate the performance of and allocate resources within the Company’s businesses. Segment EBITDA provides management, investors and equity analysts with a measure to analyze the operating performance of each of the Company’s business segments and its enterprise value against historical data and competitors’ data, although historical results may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences). Segment information is summarized as follows: For the three months ended For the nine months ended March 31, March 31, 2019 2018 2019 2018 (in millions) Revenues: News and Information Services $ 1,224 $ 1,286 $ 3,729 $ 3,825 Subscription Video Services 539 129 1,666 394 Book Publishing 421 398 1,335 1,268 Digital Real Estate Services 272 279 876 842 Other 1 1 2 2 Total revenues $ 2,457 $ 2,093 $ 7,608 $ 6,331 Segment EBITDA: News and Information Services $ 73 $ 87 $ 309 $ 302 Subscription Video Services 98 16 295 76 Book Publishing 53 41 209 167 Digital Real Estate Services 74 88 300 302 Other (51 ) (51 ) (138 ) (90 ) Depreciation and amortization (168 ) (100 ) (494 ) (297 ) Impairment and restructuring charges (34 ) (246 ) (71 ) (273 ) Equity losses of affiliates (4 ) (974 ) (13 ) (1,002 ) Interest (expense) income, net (14 ) 2 (45 ) 9 Other, net 3 30 30 9 Income (loss) before income tax expense 30 (1,107 ) 382 (797 ) Income tax expense (7 ) (3 ) (112 ) (292 ) Net income (loss) $ 23 $ (1,110 ) $ 270 $ (1,089 ) |
Reconciliation of Assets from Segments to Consolidated | As of March 31, 2019 As of June 30, 2018 (in millions) Total assets: News and Information Services $ 5,840 $ 6,039 Subscription Video Services 4,495 4,738 Book Publishing 2,073 1,898 Digital Real Estate Services 2,209 2,171 Other (a) 1,094 1,107 Investments 347 393 Total assets $ 16,058 $ 16,346 (a) The Other segment primarily includes Cash and cash equivalents. |
Reconciliation of Goodwill and Intangible Assets from Segments to Consolidated | As of March 31, 2019 As of June 30, 2018 (in millions) Goodwill and intangible assets, net: News and Information Services $ 2,695 $ 2,730 Subscription Video Services 2,662 2,853 Book Publishing 778 804 Digital Real Estate Services 1,602 1,502 Total Goodwill and intangible assets, net $ 7,737 $ 7,889 |
Additional Financial Informat_2
Additional Financial Information (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Receivables, Net | Receivables, net consist of: As of March 31, 2019 As of June 30, 2018 (in millions) Receivables $ 1,681 $ 1,829 Allowance for sales returns (a) — (171 ) Allowance for doubtful accounts (50 ) (46 ) Receivables, net $ 1,631 $ 1,612 (a) As a result of the adoption of the new revenue recognition standard during the first quarter of fiscal 2019, the Company reclassified the allowance for sales returns from Receivables, net to Other current liabilities. See Note 2—Revenues. |
Components of Other Non-Current Assets | The following table sets forth the components of Other non-current assets: As of March 31, 2019 As of June 30, 2018 (in millions) Royalty advances to authors $ 340 $ 312 Retirement benefit assets 155 135 Inventory (a) 123 143 Other 295 241 Total Other non-current assets $ 913 $ 831 (a) Primarily consists of the non-current portion of programming rights. |
Components of Other Current Liabilities | The following table sets forth the components of Other current liabilities: As of As of March 31, 2019 June 30, 2018 (in millions) Royalties and commissions payable $ 241 $ 187 Allowance for sales returns 198 — Current tax payable 15 17 Other 291 168 Total Other current liabilities $ 745 $ 372 |
Components of Other, Net | The following table sets forth the components of Other, net: For the three months ended For the nine months ended March 31, March 31, 2019 2018 2019 2018 (in millions) Dividends received from equity security investments $ 1 $ — $ 24 $ — Remeasurement of equity securities (a) 6 — (23 ) — Write-down of available-for-sale securities (b) — (3 ) — (33 ) Gain on sale of Australian property 2 — 14 — Gain on sale of SEEKAsia (c) — 32 — 32 Other, net (d) (6 ) 1 15 10 Total Other, net $ 3 $ 30 $ 30 $ 9 (a) As a result of the adoption of ASU 2016-01 during the first quarter of fiscal 2019, the Company has included the impact from the remeasurement of equity securities in Other, net in the Statement of Operations for the three and nine months ended March 31, 2019. During the three and nine months ended March 31, 2018, the impact from the remeasurement of equity securities was included in Accumulated other comprehensive loss in the Balance Sheets. (b) For the three and nine months ended March 31, 2018, the write-downs of available-for-sale securities were reclassified out of Accumulated other comprehensive loss and included in Other, net in the Statements of Operations. (c) During the three months ended March 31, 2018, the Company sold its investment in SEEKAsia for $122 million in cash and recognized a $32 million gain in Other, net in the Statements of Operations. (d) As a result of the adoption of ASU 2017-07 during the first quarter of fiscal 2019, the Company has included the other non-service cost components of net periodic benefit cost (income) in Other, net in the Statements of Operations for the three and nine months ended March 31, 2019 and 2018. |
Summary of Supplemental Cash Flow Information | The following table sets forth the Company’s cash paid for taxes and interest: For the nine months ended March 31, 2019 2018 (in millions) Cash paid for interest $ 67 $ 8 Cash paid for taxes 107 116 |
Description of Business and B_3
Description of Business and Basis of presentation (Detail) - USD ($) $ in Millions | Jul. 02, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 |
Type of Revenue [Extensible List] | us-gaap:AdvertisingMember | ||||||
Fiscal period duration | 364 days | ||||||
Scenario, Forecast [Member] | |||||||
Fiscal period duration | 364 days | ||||||
Advertising [Member] | |||||||
Revenue reclassifications | $ 15 | $ 42 | $ 57 | ||||
Other [Member] | |||||||
Revenue reclassifications | $ (15) | $ (42) | $ (57) | ||||
New Foxtel [Member] | |||||||
Ownership interest | 65.00% | ||||||
Accounting Standards Update 2014-09 [Member] | |||||||
Adjustment to retained earnings | $ 20 | ||||||
Accounting Standards Update 2016-01 [Member] | |||||||
Adjustment to retained earnings | $ 22 | ||||||
FOX SPORTS Australia [Member] | |||||||
Company ownership percentage | 100.00% | ||||||
Telstra [Member] | New Foxtel [Member] | |||||||
Ownership interest held by minority interest | 35.00% | ||||||
Foxtel [Member] | |||||||
Equity method investment, ownership percentage | 50.00% |
Revenues - Additional Informati
Revenues - Additional Information (Detail) - USD ($) | Jul. 02, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Revenue | $ 2,457,000,000 | $ 2,093,000,000 | $ 7,608,000,000 | $ 6,331,000,000 | |
Revenue from performance obligation | 75,000,000 | 227,000,000 | |||
Revenue from remaining performance obligation | 297,000,000 | 297,000,000 | |||
Impact on net income | 23,000,000 | (1,110,000,000) | 270,000,000 | (1,089,000,000) | |
Accounting Standards Update 2014-09 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Adjustment to retained earnings | $ 20,000,000 | ||||
ASC 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Revenue | (17,000,000) | (54,000,000) | |||
Impact on net income | 1,000,000 | 14,000,000 | |||
Subscription Video Services [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Revenue | 539,000,000 | $ 129,000,000 | 1,666,000,000 | $ 394,000,000 | |
Reclassification of Marketing and Sales Incentive Payments [Member] | Subscription Video Services, Book Publishing and News and Information Services [Member] | ASC 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Revenue | (22,000,000) | (84,000,000) | |||
Impact on net income | 0 | 0 | |||
Installation Operations [Member] | Subscription Video Services [Member] | ASC 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Revenue | $ 5,000,000 | $ 18,000,000 | |||
Financial Services [Member] | REA Group Inc [Member] | Accounting Standards Update 2014-09 [Member] | Commission Receivable [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Commission receivable | 121,000,000 | ||||
Financial Services [Member] | REA Group Inc [Member] | Accounting Standards Update 2014-09 [Member] | Commission Payable [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Commission payable | $ 94,000,000 |
Revenues - Practical expedients
Revenues - Practical expedients and other revenue disclosures (Detail) $ in Millions | Mar. 31, 2019USD ($) |
Revenue from remaining performance obligation | $ 297 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Revenue from remaining performance obligation | $ 39 |
Expected period of performance obligation to be recognized | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue from remaining performance obligation | $ 133 |
Expected period of performance obligation to be recognized | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue from remaining performance obligation | $ 98 |
Expected period of performance obligation to be recognized | 1 year |
Revenues - Summary of Cumulativ
Revenues - Summary of Cumulative Effect and Impact of Adoption ASC 606 and ASC 605 (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jul. 01, 2018 | Jun. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total Revenues | $ 2,457 | $ 2,093 | $ 7,608 | $ 6,331 | ||
Operating expenses and Selling, general and administrative | (2,210) | (6,633) | ||||
Net income | 23 | (1,110) | 270 | (1,089) | ||
Receivables, net | 1,631 | 1,631 | $ 1,812 | $ 1,612 | ||
Other current assets | 564 | 564 | 368 | 372 | ||
Deferred income tax assets | 257 | 257 | 281 | 279 | ||
Other non-current assets | 913 | 913 | 923 | 831 | ||
Deferred revenue | 460 | 460 | 510 | 516 | ||
Other current liabilities | 745 | 745 | 566 | 372 | ||
Deferred income tax liabilities | 321 | 321 | 400 | 389 | ||
Other non-current liabilities | 495 | 495 | 501 | 430 | ||
Accumulated deficit | (1,927) | (1,927) | (2,143) | $ (2,163) | ||
Circulation and Subscription [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total Revenues | 1,025 | 659 | 3,088 | 1,947 | ||
Advertising [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total Revenues | 670 | 702 | 2,052 | 2,101 | ||
Consumer [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total Revenues | 403 | 381 | 1,281 | 1,220 | ||
Real Estate [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total Revenues | 218 | 208 | 693 | 633 | ||
Other [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total Revenues | 141 | $ 143 | 494 | $ 430 | ||
ASC 605 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total Revenues | 2,474 | 7,662 | ||||
Operating expenses and Selling, general and administrative | (2,228) | (6,706) | ||||
Net income | 22 | 256 | ||||
Receivables, net | 1,612 | |||||
Other current assets | 372 | |||||
Deferred income tax assets | 279 | |||||
Other non-current assets | 831 | |||||
Deferred revenue | 516 | |||||
Other current liabilities | 372 | |||||
Deferred income tax liabilities | 389 | |||||
Other non-current liabilities | 430 | |||||
Accumulated deficit | (2,163) | |||||
ASC 605 [Member] | Accounting Standards Update 2014-09 [Member] | Circulation and Subscription [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total Revenues | 1,019 | 3,076 | ||||
ASC 605 [Member] | Accounting Standards Update 2014-09 [Member] | Advertising [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total Revenues | 673 | 2,055 | ||||
ASC 605 [Member] | Accounting Standards Update 2014-09 [Member] | Consumer [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total Revenues | 420 | 1,328 | ||||
ASC 605 [Member] | Accounting Standards Update 2014-09 [Member] | Real Estate [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total Revenues | 218 | 693 | ||||
ASC 605 [Member] | Accounting Standards Update 2014-09 [Member] | Other [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total Revenues | 144 | 510 | ||||
ASC 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total Revenues | (17) | (54) | ||||
Operating expenses and Selling, general and administrative | 18 | 73 | ||||
Net income | 1 | 14 | ||||
Receivables, net | 200 | |||||
Other current assets | (4) | |||||
Deferred income tax assets | 2 | |||||
Other non-current assets | 92 | |||||
Deferred revenue | (6) | |||||
Other current liabilities | 194 | |||||
Deferred income tax liabilities | 11 | |||||
Other non-current liabilities | 71 | |||||
Accumulated deficit | $ 20 | |||||
ASC 606 [Member] | Accounting Standards Update 2014-09 [Member] | Circulation and Subscription [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total Revenues | 6 | 12 | ||||
ASC 606 [Member] | Accounting Standards Update 2014-09 [Member] | Advertising [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total Revenues | (3) | (3) | ||||
ASC 606 [Member] | Accounting Standards Update 2014-09 [Member] | Consumer [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total Revenues | (17) | (47) | ||||
ASC 606 [Member] | Accounting Standards Update 2014-09 [Member] | Real Estate [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total Revenues | 0 | 0 | ||||
ASC 606 [Member] | Accounting Standards Update 2014-09 [Member] | Other [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total Revenues | $ (3) | $ (16) |
Revenues - Summary of Disaggreg
Revenues - Summary of Disaggregated Revenue by Type and by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 2,457 | $ 2,093 | $ 7,608 | $ 6,331 |
Circulation and Subscription [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,025 | 659 | 3,088 | 1,947 |
Advertising [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 670 | 702 | 2,052 | 2,101 |
Consumer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 403 | 381 | 1,281 | 1,220 |
Real Estate [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 218 | 208 | 693 | 633 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 141 | 143 | 494 | 430 |
News and Information Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,224 | 1,286 | 3,729 | 3,825 |
News and Information Services [Member] | Circulation and Subscription [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 538 | 1,593 | ||
News and Information Services [Member] | Advertising [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 593 | 1,801 | ||
News and Information Services [Member] | Consumer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
News and Information Services [Member] | Real Estate [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
News and Information Services [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 93 | 335 | ||
Subscription Video Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 539 | 129 | 1,666 | 394 |
Subscription Video Services [Member] | Circulation and Subscription [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 474 | 1,455 | ||
Subscription Video Services [Member] | Advertising [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 50 | 162 | ||
Subscription Video Services [Member] | Consumer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Subscription Video Services [Member] | Real Estate [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Subscription Video Services [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 15 | 49 | ||
Book Publishing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 421 | 398 | 1,335 | 1,268 |
Book Publishing [Member] | Circulation and Subscription [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Book Publishing [Member] | Advertising [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Book Publishing [Member] | Consumer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 403 | 1,281 | ||
Book Publishing [Member] | Real Estate [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Book Publishing [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 18 | 54 | ||
Digital Real Estate Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 272 | $ 279 | 876 | $ 842 |
Digital Real Estate Services [Member] | Circulation and Subscription [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 12 | 39 | ||
Digital Real Estate Services [Member] | Advertising [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 27 | 89 | ||
Digital Real Estate Services [Member] | Consumer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Digital Real Estate Services [Member] | Real Estate [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 218 | 693 | ||
Digital Real Estate Services [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 15 | 55 | ||
Other Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1 | 2 | ||
Other Services [Member] | Circulation and Subscription [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1 | 1 | ||
Other Services [Member] | Advertising [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Other Services [Member] | Consumer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Other Services [Member] | Real Estate [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Other Services [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 0 | $ 1 |
Revenues - Summary of Deferred
Revenues - Summary of Deferred Revenue from Contract with Customers (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2019 | Mar. 31, 2019 | |
Deferred Revenue [Abstract] | ||
Balance, beginning of period | $ 430 | $ 510 |
Deferral of revenue | 934 | 2,271 |
Recognition of deferred revenue | (883) | (2,300) |
Other | (21) | (21) |
Balance, end of period | $ 460 | $ 460 |
Revenues - Summary of Deferre_2
Revenues - Summary of Deferred Revenue from Contract with Customers (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2019 | Mar. 31, 2019 | |
Deferred Revenue Arrangement [Line Items] | ||
Recognition of deferred revenue | $ 883 | $ 2,300 |
Deferred Revenue [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Recognition of deferred revenue | $ 241 | $ 461 |
Acquisitions, Disposals and O_3
Acquisitions, Disposals and Other Transactions - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Oct. 31, 2018 | Apr. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2019 | |
Schedule Of Business Acquisitions And Divestitures [Line Items] | ||||
Goodwill | $ 5,218 | $ 5,223 | ||
New Foxtel [Member] | ||||
Schedule Of Business Acquisitions And Divestitures [Line Items] | ||||
Cash acquired | $ 78 | |||
Goodwill | $ 1,559 | |||
Ownership interest | 65.00% | |||
Percentage of the entity that the excess purchase price valuation is based on | 100.00% | |||
Business acquisition purchase price allocation, tangible assets | $ 871 | |||
Business acquisition purchase price allocation, Outstanding borrowings | 1,751 | |||
Business acquisition purchase price allocation, amortizable and indefinite-lived intangible assets | 861 | |||
Business Assets Acquired | 4,225 | |||
Business acquisition, purchased technology amount | $ 967 | |||
Opcity [Member] | ||||
Schedule Of Business Acquisitions And Divestitures [Line Items] | ||||
Total transaction value | $ 210 | |||
Payment to acquire business | 182 | |||
Cash acquired | 7 | |||
Cash held back after closing | 20 | |||
Deferred compensation related to business acquisition | $ 28 | |||
Acquisition cost recognized as compensation expense, period for recognition | 3 years | |||
Goodwill | $ 124 | |||
Business Assets Acquired | $ 73 | |||
Opcity [Member] | Purchased technology | ||||
Schedule Of Business Acquisitions And Divestitures [Line Items] | ||||
Purchased technology, weighted average useful life | 12 years | |||
Business acquisition, purchased technology amount | $ 49 | |||
Opcity [Member] | Leads and Customer Relationships [Member] | ||||
Schedule Of Business Acquisitions And Divestitures [Line Items] | ||||
Business acquisition purchase price allocation, amortizable intangible assets | $ 24 | |||
Finite lived intangible assets, weighted average useful life | 9 years | |||
Foxtel [Member] | ||||
Schedule Of Business Acquisitions And Divestitures [Line Items] | ||||
Equity method investment, ownership percentage | 50.00% | |||
FOX SPORTS Australia [Member] | ||||
Schedule Of Business Acquisitions And Divestitures [Line Items] | ||||
Company ownership percentage | 100.00% | |||
Write-off of channel distribution agreement intangible asset | 317 | |||
FOX SPORTS Australia [Member] | Nonoperating Income (Expense) [Member] | ||||
Schedule Of Business Acquisitions And Divestitures [Line Items] | ||||
Loss on transactions | $ (337) | |||
FOX SPORTS Australia [Member] | New Foxtel [Member] | ||||
Schedule Of Business Acquisitions And Divestitures [Line Items] | ||||
Company ownership percentage | 65.00% | |||
Subscriber Relationships [Member] | New Foxtel [Member] | ||||
Schedule Of Business Acquisitions And Divestitures [Line Items] | ||||
Business acquisition purchase price allocation, amortizable intangible assets | $ 468 | |||
Finite lived intangible assets, weighted average useful life | 10 years | |||
Trade Names [Member] | New Foxtel [Member] | ||||
Schedule Of Business Acquisitions And Divestitures [Line Items] | ||||
Business acquisition purchase price allocation, indefinite-lived intangible assets | $ 270 | |||
Customer Relationships [Member] | New Foxtel [Member] | ||||
Schedule Of Business Acquisitions And Divestitures [Line Items] | ||||
Finite lived intangible assets, weighted average useful life | 15 years | |||
Business acquisition purchase price allocation, amortizable and indefinite-lived intangible assets | $ 123 | |||
Telstra [Member] | New Foxtel [Member] | ||||
Schedule Of Business Acquisitions And Divestitures [Line Items] | ||||
Ownership interest held by minority interest | 35.00% |
Acquisitions, Disposals and O_4
Acquisitions, Disposals and Other Transactions - Schedule of Total Aggregate Purchase Price Transaction Value/ Fair Value of Acquisition (Detail) - New Foxtel [Member] $ in Millions | 1 Months Ended |
Apr. 30, 2018USD ($) | |
Business Acquisition [Line Items] | |
Consideration transferred | $ 331 |
Fair value of News Corp previously held equity interest in Foxtel | 631 |
Fair value of noncontrolling interest | 578 |
Fair value of net assets | $ 1,540 |
Acquisitions, Disposals and O_5
Acquisitions, Disposals and Other Transactions - Schedule of Total Aggregate Purchase Price Transaction Value/ Fair Value of Acquisition (Parenthetical) (Detail) | 1 Months Ended |
Apr. 30, 2018 | |
FOX SPORTS Australia [Member] | |
Business Acquisition [Line Items] | |
Percentage of fair value | 35.00% |
Foxtel [Member] | |
Business Acquisition [Line Items] | |
Percentage of fair value | 35.00% |
Acquisitions, Disposals and O_6
Acquisitions, Disposals and Other Transactions - Schedule of Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Jun. 30, 2018 | Apr. 30, 2018 |
Assets acquired: | |||
Goodwill | $ 5,223 | $ 5,218 | |
New Foxtel [Member] | |||
Assets acquired: | |||
Cash | $ 78 | ||
Current assets | 492 | ||
Property, plant and equipment | 967 | ||
Intangible assets | 861 | ||
Goodwill | 1,559 | ||
Other non-current assets | 268 | ||
Total assets acquired | 4,225 | ||
Liabilities assumed: | |||
Current liabilities | 611 | ||
Long-term borrowings | 1,751 | ||
Other non-current liabilities | 323 | ||
Total liabilities assumed | 2,685 | ||
Net assets acquired | $ 1,540 |
Impairment and Restructuring _3
Impairment and Restructuring Charges - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 25 | $ 21 | $ 62 | $ 48 |
Non-cash impairment charge | 225 | 225 | ||
News and Information Services [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 23 | 13 | 55 | 38 |
News America Marketing [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Non-cash impairment charge | $ 165 | $ 165 | ||
News America Marketing [Member] | Measurement Input, Discount Rate [Member] | Valuation, Income Approach [Member] | Maximum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rate used to measure goodwill and intangible assets | 14.00% | 14.00% | ||
News America Marketing [Member] | Measurement Input, Discount Rate [Member] | Valuation, Income Approach [Member] | Minimum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rate used to measure goodwill and intangible assets | 12.50% | 12.50% | ||
News America Marketing [Member] | Measurement Input, Long-term Revenue Growth Rate [Member] | Valuation, Income Approach [Member] | Maximum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rate used to measure goodwill and intangible assets | 0.90% | 0.90% | ||
News America Marketing [Member] | Measurement Input, Long-term Revenue Growth Rate [Member] | Valuation, Income Approach [Member] | Minimum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rate used to measure goodwill and intangible assets | (1.90%) | (1.90%) | ||
News America Marketing [Member] | Measurement Input Royalty Rate [Member] | Valuation, Income Approach [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rate used to measure goodwill and intangible assets | 2.50% | 2.50% | ||
Fox Sports Australia [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Non-cash impairment charge | $ 41 | $ 41 | ||
Fox Sports Australia [Member] | Measurement Input, Discount Rate [Member] | Valuation, Income Approach [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rate used to measure goodwill and intangible assets | 9.50% | 9.50% | ||
Fox Sports Australia [Member] | Measurement Input Royalty Rate [Member] | Valuation, Income Approach [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rate used to measure goodwill and intangible assets | 2.00% | 2.00% | ||
Other Current Liabilities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring liabilities, current | 30 | 30 | ||
Other Non-Current Liabilities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring liabilities, non-current | $ 10 | $ 10 |
Impairment and Restructuring _4
Impairment and Restructuring Charges - Schedule of Changes in Restructuring Program Liabilities (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Liabilities, Beginning Balance | $ 33 | $ 36 | $ 42 | $ 49 |
Additions | 25 | 21 | 62 | 48 |
Payments | (18) | (22) | (63) | (62) |
Other | 0 | 3 | (1) | 3 |
Restructuring Liabilities, Ending Balance | 40 | 38 | 40 | 38 |
One Time Employee Termination Benefits [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Liabilities, Beginning Balance | 20 | 22 | 29 | 33 |
Additions | 25 | 21 | 62 | 47 |
Payments | (17) | (22) | (61) | (60) |
Other | 0 | 3 | (2) | 4 |
Restructuring Liabilities, Ending Balance | 28 | 24 | 28 | 24 |
Facility Related Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Liabilities, Beginning Balance | 2 | 4 | 2 | 6 |
Additions | 0 | 0 | 0 | 0 |
Payments | 0 | 0 | 0 | (1) |
Other | 0 | 0 | 0 | (1) |
Restructuring Liabilities, Ending Balance | 2 | 4 | 2 | 4 |
Other Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Liabilities, Beginning Balance | 11 | 10 | 11 | 10 |
Additions | 0 | 0 | 0 | 1 |
Payments | (1) | 0 | (2) | (1) |
Other | 0 | 0 | 1 | 0 |
Restructuring Liabilities, Ending Balance | $ 10 | $ 10 | $ 10 | $ 10 |
Investments - Schedule of Inves
Investments - Schedule of Investments (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Investments Schedule [Abstract] | ||||
Equity method investments | $ 160 | $ 173 | $ 123 | $ 136 |
Equity securities | 187 | 220 | ||
Total Investments | $ 347 | $ 393 |
Investments - Schedule of Total
Investments - Schedule of Total Gains and Losses on Equity Securities (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Investments Schedule [Abstract] | ||||
Total gains (losses) recognized on equity securities | $ 6 | $ 30 | $ (23) | $ 13 |
Less: Net gains recognized on equity securities sold or impaired | 0 | 29 | 0 | 5 |
Unrealized gains (losses) recognized on equity securities held at end of period | $ 6 | $ 1 | $ (23) | $ 8 |
Investments - Schedule of Losse
Investments - Schedule of Losses of Equity Affiliates (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity losses of affiliates | $ (4) | $ (974) | $ (13) | $ (1,002) |
Foxtel [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity losses of affiliates | 0 | (970) | 0 | (974) |
Other Equity Affiliates, Net [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity losses of affiliates | $ (4) | $ (4) | $ (13) | $ (28) |
Investments - Schedule of Los_2
Investments - Schedule of Losses of Equity Affiliates (Parenthetical) (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2018USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Impairments of investment | $ 13 | ||
Valuation, Income Approach [Member] | Measurement Input, Discount Rate [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment measurement input | 0.1025 | 0.1025 | |
Valuation, Income Approach [Member] | Measurement Input, Long-term Revenue Growth Rate [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment measurement input | 0.020 | 0.020 | |
Foxtel [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Impairments of investment | $ 957 | $ 957 | |
Other Equity Affiliates, Net [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Impairments of investment | 13 | ||
Equity Losses of Affiliates [Member] | Foxtel [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Amortization of excess basis allocated to finite-lived intangible assets | $ 17 | $ 49 |
Investments - Schedule of Summa
Investments - Schedule of Summarized Financial Information (Detail) - Foxtel [Member] $ in Millions | 9 Months Ended |
Mar. 31, 2018USD ($) | |
Schedule of Equity Method Investments [Line Items] | |
Revenues | $ 1,818 |
Operating income | 155 |
Net income | $ 64 |
Investments - Schedule of Sum_2
Investments - Schedule of Summarized Financial Information (Parenthetical) (Detail) - Foxtel [Member] $ in Millions | 9 Months Ended |
Mar. 31, 2018USD ($) | |
Schedule of Equity Method Investments [Line Items] | |
Depreciation and amortization | $ 187 |
Operating income before depreciation and amortization | $ 342 |
Borrowings - Schedule of Borrow
Borrowings - Schedule of Borrowings (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2019 | Jun. 30, 2018 | |
Debt and Financial Instruments [Line Items] | ||
Total borrowings | $ 1,546 | $ 1,952 |
Less: current portion | (678) | (462) |
Long-term borrowings | 868 | 1,490 |
Credit Facility 2013 [Member] | New Foxtel [Member] | ||
Debt and Financial Instruments [Line Items] | ||
Total borrowings | $ 0 | 222 |
Interest rate | 3.55% | |
Due date | Apr. 7, 2019 | |
Credit Facility 2014 Tranche 1 [Member] | New Foxtel [Member] | ||
Debt and Financial Instruments [Line Items] | ||
Total borrowings | $ 142 | 148 |
Interest rate | 3.55% | |
Due date | May 30, 2019 | |
Working Capital Facility 2017 [Member] | New Foxtel [Member] | ||
Debt and Financial Instruments [Line Items] | ||
Total borrowings | $ 57 | 59 |
Interest rate | 3.85% | |
Due date | Jul. 3, 2020 | |
Credit Facility 2014 Tranche 2 [Member] | New Foxtel [Member] | ||
Debt and Financial Instruments [Line Items] | ||
Total borrowings | $ 142 | 148 |
Interest rate | 3.65% | |
Due date | Jan. 31, 2020 | |
Credit Facility 2015 [Member] | New Foxtel [Member] | ||
Debt and Financial Instruments [Line Items] | ||
Total borrowings | $ 284 | 296 |
Interest rate | 3.70% | |
Due date | Jul. 31, 2020 | |
Credit Facility 2016 [Member] | New Foxtel [Member] | ||
Debt and Financial Instruments [Line Items] | ||
Total borrowings | $ 53 | 108 |
Interest rate | 4.25% | |
Due date | Sep. 11, 2021 | |
US Private Placement 2009 Tranche 3 [Member] | New Foxtel [Member] | ||
Debt and Financial Instruments [Line Items] | ||
Total borrowings | $ 74 | 75 |
Interest rate | 6.20% | |
Due date | Sep. 24, 2019 | |
US Private Placement 2012 USD Portion Tranche 1 [Member] | New Foxtel [Member] | ||
Debt and Financial Instruments [Line Items] | ||
Total borrowings | $ 150 | 150 |
Interest rate | 3.68% | |
Due date | Jul. 25, 2019 | |
US Private Placement 2012 USD Portion Tranche 2 [Member] | New Foxtel [Member] | ||
Debt and Financial Instruments [Line Items] | ||
Total borrowings | $ 198 | 196 |
Interest rate | 4.27% | |
Due date | Jul. 25, 2022 | |
US Private Placement 2012 USD Portion Tranche 3 [Member] | New Foxtel [Member] | ||
Debt and Financial Instruments [Line Items] | ||
Total borrowings | $ 148 | 146 |
Interest rate | 4.42% | |
Due date | Jul. 25, 2024 | |
US Private Placement 2012 AUD Portion [Member] | New Foxtel [Member] | ||
Debt and Financial Instruments [Line Items] | ||
Total borrowings | $ 78 | 83 |
Interest rate | 7.04% | |
Due date | Jul. 25, 2022 | |
Credit Facility Fiscal 2016 Tranche 2 [Member] | REA Group Inc [Member] | ||
Debt and Financial Instruments [Line Items] | ||
Total borrowings | $ 0 | 89 |
Due date | Dec. 31, 2018 | |
Credit Facility Fiscal 2016 Tranche 3 [Member] | REA Group Inc [Member] | ||
Debt and Financial Instruments [Line Items] | ||
Total borrowings | $ 170 | 178 |
Interest rate | 3.01% | |
Due date | Dec. 31, 2019 | |
Credit Facility Fiscal 2018 [Member] | REA Group Inc [Member] | ||
Debt and Financial Instruments [Line Items] | ||
Total borrowings | $ 50 | $ 54 |
Interest rate | 2.71% | |
Due date | Apr. 27, 2021 |
Borrowings - Schedule of Borr_2
Borrowings - Schedule of Borrowings (Parenthetical) (Detail) $ in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2019AUD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2019AUD ($) | Mar. 31, 2019AUD ($) | |
Minimum [Member] | Australian BBSY [Member] | |||||
Debt and Financial Instruments [Line Items] | |||||
Interest rate margin | 1.10% | 1.10% | |||
Maximum [Member] | Australian BBSY [Member] | |||||
Debt and Financial Instruments [Line Items] | |||||
Interest rate margin | 2.70% | 2.70% | |||
REA Group [Member] | |||||
Debt and Financial Instruments [Line Items] | |||||
Maximum borrowing capacity under the revolving loan facility | $ 480 | ||||
REA Group [Member] | Minimum [Member] | |||||
Debt and Financial Instruments [Line Items] | |||||
Interest rate margin | 0.85% | 0.85% | |||
REA Group [Member] | Minimum [Member] | Australian BBSY [Member] | |||||
Debt and Financial Instruments [Line Items] | |||||
Interest rate margin | 0.85% | 0.85% | |||
REA Group [Member] | Maximum [Member] | |||||
Debt and Financial Instruments [Line Items] | |||||
Interest rate margin | 1.05% | 1.05% | |||
REA Group [Member] | Maximum [Member] | Australian BBSY [Member] | |||||
Debt and Financial Instruments [Line Items] | |||||
Interest rate margin | 1.45% | 1.45% | |||
New Foxtel [Member] | |||||
Debt and Financial Instruments [Line Items] | |||||
Undrawn commitments | $ 241 | $ 241 | |||
New Foxtel [Member] | Minimum [Member] | |||||
Debt and Financial Instruments [Line Items] | |||||
Percentage of applicable margin payable as commitment fee | 40.00% | 40.00% | |||
New Foxtel [Member] | Maximum [Member] | |||||
Debt and Financial Instruments [Line Items] | |||||
Percentage of applicable margin payable as commitment fee | 45.00% | 45.00% | |||
Credit Facility Fiscal 2016 Tranche 2 [Member] | REA Group [Member] | |||||
Debt and Financial Instruments [Line Items] | |||||
Amounts drawn under credit facility | 170 | $ 170 | $ 240 | ||
Repayments of lines of credit | 87 | $ 120 | |||
Credit Facility 2013 [Member] | New Foxtel [Member] | |||||
Debt and Financial Instruments [Line Items] | |||||
Repayments of lines of credit | $ 216 | $ 300 | $ 216 | 300 | |
Proceeds from shareholder loans | $ 300 | $ 300 |
Redeemable Preferred Stock - Ad
Redeemable Preferred Stock - Additional Information (Detail) - Redeemable Preferred Stock [Member] - $ / shares | Jun. 28, 2013 | Jul. 31, 2018 |
Class of Stock [Line Items] | ||
Preferred stock sold | 4,000 | |
Preferred stock, par value | $ 5,000 | |
Preferred stock dividend rate | 9.50% | |
Company exercised its call option and redeemed | 100.00% | |
Call Option [Member] | ||
Class of Stock [Line Items] | ||
Preferred stock redemption period | 5 years | |
Put Option [Member] | ||
Class of Stock [Line Items] | ||
Preferred stock redemption period | 10 years |
Equity - Summary of Changes in
Equity - Summary of Changes in Equity (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Changes In Equity [Line Items] | ||||
Balance, beginning of period | $ 10,434 | $ 11,158 | $ 10,477 | $ 11,073 |
Cumulative impact from adoption of new accounting standards | 20 | |||
Net income (loss) | 23 | (1,110) | 270 | (1,089) |
Other comprehensive income (loss) | 67 | 1 | (170) | 136 |
Dividends | (78) | (78) | (160) | (158) |
Other | 12 | 20 | 21 | 29 |
Balance, end of period | $ 10,458 | 9,991 | $ 10,458 | 9,991 |
Class A Common Stock [Member] | ||||
Changes In Equity [Line Items] | ||||
Balance, beginning of period, Shares | 383,385,353 | |||
Balance, end of period, Shares | 385,444,822 | 385,444,822 | ||
Class B Common Stock [Member] | ||||
Changes In Equity [Line Items] | ||||
Balance, beginning of period, Shares | 199,630,240 | |||
Balance, end of period, Shares | 199,630,240 | 199,630,240 | ||
Common Stock [Member] | Class A Common Stock [Member] | ||||
Changes In Equity [Line Items] | ||||
Balance, beginning of period | $ 4 | $ 4 | $ 4 | $ 4 |
Balance, beginning of period, Shares | 385,000,000 | 383,000,000 | 383,000,000 | 382,000,000 |
Cumulative impact from adoption of new accounting standards | $ 0 | |||
Net income (loss) | $ 0 | $ 0 | 0 | $ 0 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Dividends | 0 | 0 | 0 | 0 |
Other | 0 | 0 | $ 0 | $ 0 |
Other, Shares | 2,000,000 | 1,000,000 | ||
Balance, end of period | $ 4 | $ 4 | $ 4 | $ 4 |
Balance, end of period, Shares | 385,000,000 | 383,000,000 | 385,000,000 | 383,000,000 |
Common Stock [Member] | Class B Common Stock [Member] | ||||
Changes In Equity [Line Items] | ||||
Balance, beginning of period | $ 2 | $ 2 | $ 2 | $ 2 |
Balance, beginning of period, Shares | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 |
Cumulative impact from adoption of new accounting standards | $ 0 | |||
Net income (loss) | $ 0 | $ 0 | 0 | $ 0 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Dividends | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Balance, end of period | $ 2 | $ 2 | $ 2 | $ 2 |
Balance, end of period, Shares | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 |
Additional Paid-in Capital [Member] | ||||
Changes In Equity [Line Items] | ||||
Balance, beginning of period | $ 12,271 | $ 12,350 | $ 12,322 | $ 12,395 |
Cumulative impact from adoption of new accounting standards | 0 | |||
Net income (loss) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Dividends | (58) | (59) | (117) | (118) |
Other | 16 | 19 | 24 | 33 |
Balance, end of period | 12,229 | 12,310 | 12,229 | 12,310 |
Accumulated Deficit [Member] | ||||
Changes In Equity [Line Items] | ||||
Balance, beginning of period | (1,937) | (664) | (2,163) | (648) |
Cumulative impact from adoption of new accounting standards | 32 | |||
Net income (loss) | 10 | (1,128) | 206 | (1,143) |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Dividends | 0 | 0 | 0 | 0 |
Other | 0 | 0 | (2) | (1) |
Balance, end of period | (1,927) | (1,792) | (1,927) | (1,792) |
Accumulated Other Comprehensive Loss [Member] | ||||
Changes In Equity [Line Items] | ||||
Balance, beginning of period | (1,076) | (832) | (874) | (964) |
Cumulative impact from adoption of new accounting standards | (22) | |||
Net income (loss) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 57 | 3 | (124) | 135 |
Dividends | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 1 | 0 |
Balance, end of period | (1,019) | (829) | (1,019) | (829) |
Total News Corporation Equity | ||||
Changes In Equity [Line Items] | ||||
Balance, beginning of period | 9,264 | 10,860 | 9,291 | 10,789 |
Cumulative impact from adoption of new accounting standards | 10 | |||
Net income (loss) | 10 | (1,128) | 206 | (1,143) |
Other comprehensive income (loss) | 57 | 3 | (124) | 135 |
Dividends | (58) | (59) | (117) | (118) |
Other | 16 | 19 | 23 | 32 |
Balance, end of period | 9,289 | 9,695 | 9,289 | 9,695 |
Noncontrolling Interest [Member] | ||||
Changes In Equity [Line Items] | ||||
Balance, beginning of period | 1,170 | 298 | 1,186 | 284 |
Cumulative impact from adoption of new accounting standards | 10 | |||
Net income (loss) | 13 | 18 | 64 | 54 |
Other comprehensive income (loss) | 10 | (2) | (46) | 1 |
Dividends | (20) | (19) | (43) | (40) |
Other | (4) | 1 | (2) | (3) |
Balance, end of period | $ 1,169 | $ 296 | $ 1,169 | $ 296 |
Equity - Summary of Dividends D
Equity - Summary of Dividends Declared Per Share (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Cash dividend declared per share | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.20 |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | May 03, 2019 | Feb. 28, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | May 31, 2013 |
Class of Stock [Line Items] | |||||||
Cash dividends declared per share of common stock | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.20 | |||
Cash dividends per common share, date of dividend payable | Apr. 17, 2019 | ||||||
Cash dividends per common share, date of record for dividend | Mar. 13, 2019 | ||||||
Class A Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Aggregate amount of shares authorized to be repurchased | $ 500,000,000 | ||||||
Number of shares repurchased | 0 | ||||||
Cash dividends declared per share of common stock | $ 0.10 | ||||||
Class A Common Stock [Member] | Subsequent Event [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of shares repurchased | 5,200,000 | ||||||
Remaining authorized amount under stock repurchase program | $ 429,000,000 | ||||||
Aggregate cost of shares repurchased | $ 71,000,000 | ||||||
Class B Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Cash dividends declared per share of common stock | $ 0.10 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Summary of Assets and Liabilities Measured At Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Mar. 31, 2019 | Jun. 30, 2018 |
Assets: | ||
Equity securities | $ 187 | $ 93 |
Total assets | 336 | 211 |
Liabilities: | ||
Mandatorily redeemable noncontrolling interests | 12 | 12 |
Total liabilities | 46 | 44 |
Foreign Currency Derivatives [Member] | Cash Flow Hedging [Member] | ||
Assets: | ||
Derivative assets | 3 | 3 |
Cross Currency Interest Rate Derivatives [Member] | Fair Value Hedging [Member] | ||
Assets: | ||
Derivative assets | 27 | 29 |
Cross Currency Interest Rate Derivatives [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | ||
Assets: | ||
Derivative assets | 12 | 10 |
Cross Currency Interest Rate Derivatives [Member] | Cash Flow Hedging [Member] | ||
Assets: | ||
Derivative assets | 107 | 76 |
Liabilities: | ||
Derivative liabilities | 15 | 12 |
Interest Rate Contract [Member] | Cash Flow Hedging [Member] | ||
Liabilities: | ||
Derivative liabilities | 19 | 20 |
Level 1 [Member] | ||
Assets: | ||
Equity securities | 72 | 93 |
Total assets | 72 | 93 |
Liabilities: | ||
Mandatorily redeemable noncontrolling interests | 0 | 0 |
Total liabilities | 0 | 0 |
Level 1 [Member] | Foreign Currency Derivatives [Member] | Cash Flow Hedging [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Level 1 [Member] | Cross Currency Interest Rate Derivatives [Member] | Fair Value Hedging [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Level 1 [Member] | Cross Currency Interest Rate Derivatives [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Level 1 [Member] | Cross Currency Interest Rate Derivatives [Member] | Cash Flow Hedging [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 1 [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member] | ||
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 2 [Member] | ||
Assets: | ||
Equity securities | 0 | 0 |
Total assets | 149 | 118 |
Liabilities: | ||
Mandatorily redeemable noncontrolling interests | 0 | 0 |
Total liabilities | 34 | 32 |
Level 2 [Member] | Foreign Currency Derivatives [Member] | Cash Flow Hedging [Member] | ||
Assets: | ||
Derivative assets | 3 | 3 |
Level 2 [Member] | Cross Currency Interest Rate Derivatives [Member] | Fair Value Hedging [Member] | ||
Assets: | ||
Derivative assets | 27 | 29 |
Level 2 [Member] | Cross Currency Interest Rate Derivatives [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | ||
Assets: | ||
Derivative assets | 12 | 10 |
Level 2 [Member] | Cross Currency Interest Rate Derivatives [Member] | Cash Flow Hedging [Member] | ||
Assets: | ||
Derivative assets | 107 | 76 |
Liabilities: | ||
Derivative liabilities | 15 | 12 |
Level 2 [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member] | ||
Liabilities: | ||
Derivative liabilities | 19 | 20 |
Level 3 [Member] | ||
Assets: | ||
Equity securities | 115 | 0 |
Total assets | 115 | 0 |
Liabilities: | ||
Mandatorily redeemable noncontrolling interests | 12 | 12 |
Total liabilities | 12 | 12 |
Level 3 [Member] | Foreign Currency Derivatives [Member] | Cash Flow Hedging [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Level 3 [Member] | Cross Currency Interest Rate Derivatives [Member] | Fair Value Hedging [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Level 3 [Member] | Cross Currency Interest Rate Derivatives [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Level 3 [Member] | Cross Currency Interest Rate Derivatives [Member] | Cash Flow Hedging [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 3 [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member] | ||
Liabilities: | ||
Derivative liabilities | $ 0 | $ 0 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements - Summary of Equity Securities Classified as Level 3 (Detail) - Equity Securities [Member] $ in Millions | 9 Months Ended |
Mar. 31, 2019USD ($) | |
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Balance—beginning of period | $ 127 |
Purchases | 7 |
Sales | (10) |
Foreign exchange and other | (9) |
Balance—end of period | $ 115 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements - Summary of Mandatorily Redeemable Noncontrolling Interest Liabilities Classified Level 3 (Detail) - Financial Instruments Subject To Mandatory Redemption Settlement Terms Share Value [Member] - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance—beginning of period | $ 12 | $ 79 |
Additions | 0 | 12 |
Accretion | 1 | 2 |
Foreign exchange movements | (1) | (1) |
Balance—end of period | $ 12 | $ 92 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements - Summary of Hedges Classified as Current or Non-Current in Balance Sheets Based on Maturity Dates (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Jun. 30, 2018 |
Foreign Currency Derivatives [Member] | Cash Flow Hedging [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, reported under other current assets | $ 3 | $ 3 |
Cross Currency Interest Rate Derivatives [Member] | Cash Flow Hedging [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, reported under other current assets | 32 | 0 |
Derivatives, reported under other non-current assets | 75 | 76 |
Derivatives, reported under other non-current liabilities | (15) | (12) |
Cross Currency Interest Rate Derivatives [Member] | Fair Value Hedging [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, reported under other current assets | 8 | 0 |
Derivatives, reported under other non-current assets | 19 | 29 |
Cross Currency Interest Rate Derivatives [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, reported under other current assets | 12 | 0 |
Derivatives, reported under other non-current assets | 0 | 10 |
Interest Rate Contract [Member] | Cash Flow Hedging [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, reported under other current liabilities | (3) | 0 |
Derivatives, reported under other non-current liabilities | $ (16) | $ (20) |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Measurements - Additional Information (Detail) $ in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2019AUD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Estimates of net derivative gains related to cash flow hedges included in Accumulated other comprehensive loss | $ 3 | $ 3 | ||||||
Equity method investment carrying value | 160 | $ 123 | 160 | $ 173 | $ 136 | |||
Non-cash impairments of equity method investment | 13 | |||||||
Goodwill carrying value | 5,223 | 5,223 | $ 5,218 | |||||
News America Marketing [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Non-cash impairment charge of goodwill | $ 120 | |||||||
Non-cash impairment charge for indefinite-lived intangible assets | 45 | |||||||
Goodwill carrying value | 181 | 301 | $ 181 | |||||
Indefinite-lived intangible assets carrying value | 346 | 391 | 346 | |||||
Fox Sports Australia Reporting Unit [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Non-cash impairment charge of goodwill | 41 | |||||||
Goodwill carrying value | 449 | 490 | 449 | |||||
Foxtel [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Equity method investment carrying value | 631 | $ 1,588 | 631 | |||||
Non-cash impairments of equity method investment | $ 957 | $ 957 | ||||||
Cross Currency Interest Rate Contract [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Estimates of net derivative gains related to cash flow hedges included in Accumulated other comprehensive loss | 1 | 1 | ||||||
Interest Rate Swap [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Estimates of net derivative gains related to cash flow hedges included in Accumulated other comprehensive loss | 4 | 4 | ||||||
Cash Flow Hedging [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Amount recognized in earnings for ineffective portion of derivative instruments designated as cash flow hedges | 2 | 3 | ||||||
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Notional value of derivative | 34 | 34 | ||||||
Cash Flow Hedging [Member] | Cross Currency Interest Rate Contract [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Notional value of derivative | $ 400 | |||||||
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Notional value of derivative | 700 | |||||||
Fair Value Hedging [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Notional value of derivative | $ 100 | |||||||
Adjustments increased the carrying value of long-term debt | 3 | 3 | ||||||
Not Designated as Hedging Instrument, Economic Hedge [Member] | Cross Currency Interest Rate Contract [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Notional value of derivative | $ 75 | $ 75 |
Financial Instruments and Fai_8
Financial Instruments and Fair Value Measurements - Summary of Derivative Instruments Designated as Cash Flow Hedges (Detail) - Cash Flow Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
(Gain) loss recognized in Accumulated Other Comprehensive Income | $ 15 | $ 0 | $ (3) | $ 0 |
Gain (loss) reclassified from Accumulated Other Comprehensive Income | (9) | 0 | 1 | 0 |
Foreign Currency Derivatives [Member] | Operating Expense [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
(Gain) loss recognized in Accumulated Other Comprehensive Income | 2 | 0 | (2) | 0 |
Gain (loss) reclassified from Accumulated Other Comprehensive Income | 0 | 0 | 2 | 0 |
Cross Currency Interest Rate Derivatives [Member] | Interest (Expense) Income, Net [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
(Gain) loss recognized in Accumulated Other Comprehensive Income | 9 | 0 | (7) | 0 |
Gain (loss) reclassified from Accumulated Other Comprehensive Income | (7) | 0 | 5 | 0 |
Interest Rate Contract [Member] | Interest (Expense) Income, Net [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
(Gain) loss recognized in Accumulated Other Comprehensive Income | 4 | 0 | 6 | 0 |
Gain (loss) reclassified from Accumulated Other Comprehensive Income | $ (2) | $ 0 | $ (6) | $ 0 |
Earnings (Loss) Per Share - Com
Earnings (Loss) Per Share - Computation of Basic and Diluted Earnings (Loss) per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 23 | $ (1,110) | $ 270 | $ (1,089) |
Less: Net income attributable to noncontrolling interests | (13) | (18) | (64) | (54) |
Less: Redeemable preferred stock dividends | 0 | 0 | 0 | (1) |
Net income (loss) available to News Corporation stockholders | $ 10 | $ (1,128) | $ 206 | $ (1,144) |
Weighted-average number of shares of common stock outstanding—basic | 585 | 582.8 | 584.6 | 582.6 |
Dilutive effect of equity awards | 3.8 | 2.6 | ||
Weighted-average number of shares of common stock outstanding—diluted | 588.8 | 582.8 | 587.2 | 582.6 |
Net income (loss) available to News Corporation stockholders per share - basic and diluted | $ 0.02 | $ (1.94) | $ 0.35 | $ (1.96) |
Earnings (Loss) Per Share - C_2
Earnings (Loss) Per Share - Computation of Basic and Diluted Earnings (Loss) per Share (Parenthetical) (Detail) - Redeemable Preferred Stock [Member] - $ / shares | Jun. 28, 2013 | Jul. 31, 2018 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Preferred stock sold | 4,000 | |
Preferred stock, par value | $ 5,000 | |
Preferred stock dividend rate | 9.50% | |
Company exercised its call option and redeemed | 100.00% | |
Call Option [Member] | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Preferred stock redemption period | 5 years | |
Put Option [Member] | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Preferred stock redemption period | 10 years |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jul. 01, 2018 | Jun. 30, 2018 | |
Loss Contingencies [Line Items] | ||||||
Other current assets | $ 564 | $ 564 | $ 368 | $ 372 | ||
U.K. Newspaper Matters [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Selling, general and administrative expenses (benefit), net | 2 | $ 2 | 8 | $ (38) | ||
Litigation liability accrued | 54 | 54 | ||||
Impact due to reversal of previous accrued liability due to settlement with tax authority | $ 46 | |||||
U.K. Newspaper Matters Indemnification [Member] | FOX [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Other current assets | $ 51 | $ 51 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | |
Income Tax Contingency [Line Items] | |||||
Income tax expense | $ 7 | $ 3 | $ 112 | $ 292 | |
Income (loss) before income tax (expense) benefit | $ 30 | $ (1,107) | 382 | (797) | |
Provisional charges recorded | 174 | ||||
Gross income tax paid | 107 | 116 | |||
Income tax refunds | $ 17 | $ 6 | |||
U.S. Tax Cuts and Jobs Act [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Income tax expense | $ 237 | ||||
US Statutory Federal Tax Rate [Member] | |||||
Income Tax Contingency [Line Items] | |||||
U.S. statutory federal tax rate | 21.00% |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Mar. 31, 2019SegmentItemBrandCountry | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | Segment | 5 |
New Foxtel [Member] | |
Segment Reporting Information [Line Items] | |
Company ownership percentage | 65.00% |
New Foxtel [Member] | Telstra [Member] | |
Segment Reporting Information [Line Items] | |
Ownership interest held by minority interest | 35.00% |
Digital Real Estate Services [Member] | Move Inc [Member] | |
Segment Reporting Information [Line Items] | |
Company ownership percentage | 80.00% |
Digital Real Estate Services [Member] | Move Inc [Member] | REA Group Inc [Member] | |
Segment Reporting Information [Line Items] | |
Ownership interest held by minority interest | 20.00% |
Digital Real Estate Services [Member] | REA Group Inc [Member] | |
Segment Reporting Information [Line Items] | |
Company ownership percentage | 61.60% |
Book Publishing [Member] | |
Segment Reporting Information [Line Items] | |
Number of countries | Country | 17 |
Book Publishing [Member] | Minimum [Member] | |
Segment Reporting Information [Line Items] | |
Number of branded publishing imprints | Brand | 120 |
Subscription Video Services [Member] | New Foxtel [Member] | |
Segment Reporting Information [Line Items] | |
Company ownership percentage | 65.00% |
Subscription Video Services [Member] | New Foxtel [Member] | Telstra [Member] | |
Segment Reporting Information [Line Items] | |
Ownership interest held by minority interest | 35.00% |
Subscription Video Services [Member] | Minimum [Member] | New Foxtel [Member] | |
Segment Reporting Information [Line Items] | |
Number of channels | Item | 200 |
Segment Information - Reconcili
Segment Information - Reconciliation of Revenue and Segment EBITDA from Segments to Consolidated (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,457 | $ 2,093 | $ 7,608 | $ 6,331 |
Depreciation and amortization | (168) | (100) | (494) | (297) |
Impairment and restructuring charges | (34) | (246) | (71) | (273) |
Equity losses of affiliates | (4) | (974) | (13) | (1,002) |
Interest (expense) income, net | (14) | 2 | (45) | 9 |
Other, net | 3 | 30 | 30 | 9 |
Income (loss) before income tax expense | 30 | (1,107) | 382 | (797) |
Income tax expense | (7) | (3) | (112) | (292) |
Net income (loss) | 23 | (1,110) | 270 | (1,089) |
News and Information Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,224 | 1,286 | 3,729 | 3,825 |
Total Segment EBITDA | 73 | 87 | 309 | 302 |
Subscription Video Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 539 | 129 | 1,666 | 394 |
Total Segment EBITDA | 98 | 16 | 295 | 76 |
Book Publishing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 421 | 398 | 1,335 | 1,268 |
Total Segment EBITDA | 53 | 41 | 209 | 167 |
Digital Real Estate Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 272 | 279 | 876 | 842 |
Total Segment EBITDA | 74 | 88 | 300 | 302 |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1 | 1 | 2 | 2 |
Total Segment EBITDA | $ (51) | $ (51) | $ (138) | $ (90) |
Segment Information - Reconci_2
Segment Information - Reconciliation of Assets from Segments to Consolidated (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Jun. 30, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Investments | $ 347 | $ 393 |
Total assets | 16,058 | 16,346 |
News and Information Services [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 5,840 | 6,039 |
Subscription Video Services [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 4,495 | 4,738 |
Book Publishing [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,073 | 1,898 |
Digital Real Estate Services [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,209 | 2,171 |
Other [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 1,094 | $ 1,107 |
Segment Information - Reconci_3
Segment Information - Reconciliation of Goodwill and Intangible Assets from Segments to Consolidated (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Jun. 30, 2018 |
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | $ 7,737 | $ 7,889 |
News and Information Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | 2,695 | 2,730 |
Subscription Video Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | 2,662 | 2,853 |
Book Publishing [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | 778 | 804 |
Digital Real Estate Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | $ 1,602 | $ 1,502 |
Additional Financial Informat_3
Additional Financial Information - Components of Receivables, Net (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Jul. 01, 2018 | Jun. 30, 2018 |
Receivables [Abstract] | |||
Receivables | $ 1,681 | $ 1,829 | |
Allowance for sales returns | 0 | (171) | |
Allowance for doubtful accounts | (50) | (46) | |
Receivables, net | $ 1,631 | $ 1,812 | $ 1,612 |
Additional Financial Informat_4
Additional Financial Information - Components of Other Non-Current Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Jul. 01, 2018 | Jun. 30, 2018 |
Assets, Noncurrent [Abstract] | |||
Royalty advances to authors | $ 340 | $ 312 | |
Retirement benefit assets | 155 | 135 | |
Inventory | 123 | 143 | |
Other | 295 | 241 | |
Total Other non-current assets | $ 913 | $ 923 | $ 831 |
Additional Financial Informat_5
Additional Financial Information - Components of Other Current Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Jul. 01, 2018 | Jun. 30, 2018 |
Other Current Liabilities [Line Items] | |||
Total Other current liabilities | $ 745 | $ 566 | $ 372 |
Other Current Liabilities [Member] | |||
Other Current Liabilities [Line Items] | |||
Royalties and commissions payable | 241 | 187 | |
Allowance for sales returns | 198 | 0 | |
Current tax payable | 15 | 17 | |
Other | 291 | 168 | |
Total Other current liabilities | $ 745 | $ 372 |
Additional Financial Informat_6
Additional Financial Information - Components of Other, Net (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Other Income and Expenses [Line Items] | ||||
Remeasurement of equity securities | $ 6 | $ 30 | $ (23) | $ 13 |
Gain on sale of SEEKAsia | 32 | |||
Total Other, net | 3 | 30 | 30 | 9 |
Nonoperating Income (Expense) [Member] | ||||
Other Income and Expenses [Line Items] | ||||
Dividends received from equity security investments | 1 | 0 | 24 | 0 |
Remeasurement of equity securities | 6 | 0 | (23) | 0 |
Write-down of available-for-sale securities | 0 | (3) | 0 | (33) |
Gain on sale of Australian property | 2 | 0 | 14 | 0 |
Gain on sale of SEEKAsia | 0 | 32 | 0 | 32 |
Other, net | (6) | 1 | 15 | 10 |
Total Other, net | $ 3 | $ 30 | $ 30 | $ 9 |
Additional Financial Informat_7
Additional Financial Information - Components of Other, Net (Parenthetical) (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Other Income and Expenses [Abstract] | |
Investments sold out for cash | $ 122 |
Gain on sale of investment | $ 32 |
Additional Financial Informat_8
Additional Financial Information - Summary of Supplemental Cash Flow Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | ||
Cash paid for interest | $ 67 | $ 8 |
Cash paid for taxes | $ 107 | $ 116 |