Cover Page
Cover Page - $ / shares | 3 Months Ended | ||
Sep. 30, 2020 | Oct. 30, 2020 | Jun. 30, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-Q | ||
Document Quarterly Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-35769 | ||
Entity Registrant Name | NEWS CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-2950970 | ||
Entity Address, Address Line One | 1211 Avenue of the Americas | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10036 | ||
City Area Code | 212 | ||
Local Phone Number | 416-3400 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001564708 | ||
Document Period End Date | Sep. 30, 2020 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | Q1 | ||
Current Fiscal Year End Date | --06-30 | ||
Class A Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Class A Common Stock, par value $0.01 per share | ||
Trading Symbol | NWSA | ||
Security Exchange Name | NASDAQ | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | |
Entity Common Stock, Shares Outstanding | 390,955,182 | ||
Class B Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Class B Common Stock, par value $0.01 per share | ||
Trading Symbol | NWS | ||
Security Exchange Name | NASDAQ | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | |
Entity Common Stock, Shares Outstanding | 199,630,240 | ||
Preferred Stock Class A [Member] | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Class A Preferred Stock Purchase Rights | ||
No Trading Symbol Flag | true | ||
Security Exchange Name | NASDAQ | ||
Preferred Stock Class B [Member] | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Class B Preferred Stock Purchase Rights | ||
No Trading Symbol Flag | true | ||
Security Exchange Name | NASDAQ |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues: | ||
Total Revenues | $ 2,117 | $ 2,340 |
Operating expenses | (1,164) | (1,338) |
Selling, general and administrative | (685) | (781) |
Depreciation and amortization | (164) | (162) |
Impairment and restructuring charges | (40) | (297) |
Equity losses of affiliates | (1) | (2) |
Interest (expense) income, net | (8) | 4 |
Other, net | 17 | 4 |
Income (loss) before income tax (expense) benefit | 72 | (232) |
Income tax (expense) benefit | (25) | 21 |
Net income (loss) | 47 | (211) |
Less: Net income attributable to noncontrolling interests | (13) | (16) |
Net income (loss) attributable to News Corporation stockholders | $ 34 | $ (227) |
Net income (loss) attributable to News Corporation stockholders per share: | ||
Basic and diluted (in dollars per share) | $ 0.06 | $ (0.39) |
Circulation and subscription | ||
Revenues: | ||
Total Revenues | $ 1,002 | $ 995 |
Advertising | ||
Revenues: | ||
Total Revenues | 332 | 608 |
Consumer | ||
Revenues: | ||
Total Revenues | 441 | 387 |
Real estate | ||
Revenues: | ||
Total Revenues | 235 | 218 |
Other | ||
Revenues: | ||
Total Revenues | $ 107 | $ 132 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 47 | $ (211) | |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 107 | (185) | |
Net change in the fair value of cash flow hedges | [1] | (2) | (14) |
Benefit plan adjustments, net | [2] | 8 | 11 |
Other comprehensive income (loss) | 113 | (188) | |
Comprehensive income (loss) | 160 | (399) | |
Less: Net income attributable to noncontrolling interests | (13) | (16) | |
Less: Other comprehensive (income) loss attributable to noncontrolling interests | (17) | 45 | |
Comprehensive income (loss) attributable to News Corporation stockholders | $ 130 | $ (370) | |
[1] | Net of income tax benefit of nil and $3 million for the three months ended September 30, 2020 and 2019, respectively. | ||
[2] | Net of income tax expense of $3 million for both the three months ended September 30, 2020 and 2019. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net change in the fair value of cash flow hedges, income tax expense | $ 0 | $ 3 |
Benefit plan adjustments, income tax expense (benefit) | $ 3 | $ 3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 | |
Current assets: | |||
Cash and cash equivalents | $ 1,539 | $ 1,517 | |
Receivables, net | 1,240 | 1,203 | |
Inventory, net | 203 | 348 | |
Other current assets | 453 | 393 | |
Total current assets | 3,435 | 3,461 | |
Non-current assets: | |||
Investments | 314 | 297 | |
Property, plant and equipment, net | 2,225 | 2,256 | |
Operating lease right-of-use assets | 1,048 | 1,061 | |
Intangible assets, net | 1,869 | 1,864 | |
Goodwill | 3,997 | 3,951 | |
Deferred income tax assets | 337 | 332 | |
Other non-current assets | 1,175 | 1,039 | |
Total assets | 14,400 | 14,261 | |
Current liabilities: | |||
Accounts payable | 322 | 351 | |
Accrued expenses | 1,060 | 1,019 | |
Deferred revenue | 409 | 398 | |
Current borrowings | [1] | 78 | 76 |
Other current liabilities | 869 | 838 | |
Total current liabilities | 2,738 | 2,682 | |
Non-current liabilities: | |||
Borrowings | 1,206 | 1,183 | |
Retirement benefit obligations | 260 | 277 | |
Deferred income tax liabilities | 263 | 258 | |
Operating lease liabilities | 1,135 | 1,146 | |
Other non-current liabilities | 344 | 326 | |
Commitments and contingencies | |||
Additional paid-in capital | 12,075 | 12,148 | |
Accumulated deficit | (3,207) | (3,241) | |
Accumulated other comprehensive loss | (1,235) | (1,331) | |
Total News Corporation stockholders’ equity | 7,639 | 7,582 | |
Noncontrolling interests | 815 | 807 | |
Total equity | 8,454 | 8,389 | |
Total liabilities and equity | 14,400 | 14,261 | |
Class A Common Stock | |||
Non-current liabilities: | |||
Common stock | [2] | 4 | 4 |
Class B Common Stock | |||
Non-current liabilities: | |||
Common stock | [3] | $ 2 | $ 2 |
[1] | The Company classifies the current portion of long term debt as non-current liabilities on the Balance Sheets when it has the intent and ability to refinance the obligation on a long-term basis, in accordance with ASC 470-50 “Debt.” $28 million relates to the current portion of finance lease liabilities. | ||
[2] | Class A common stock , $0.01 par value per share (“Class A Common Stock”), 1,500,000,000 shares authorized, 390,954,837 and 388,922,752 shares issued and outstanding, net of 27,368,413 treasury shares at par at September 30, 2020 and June 30, 2020, respectively. | ||
[3] | Class B common stock , $0.01 par value per share (“Class B Common Stock”), 750,000,000 shares authorized, 199,630,240 shares issued and outstanding, net of 78,430,424 treasury shares at par at September 30, 2020 and June 30, 2020, respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2020 | Jun. 30, 2020 |
Class A Common Stock | ||
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 | 390,954,837 | 388,922,752 |
Common stock outstanding, net of treasury stock | 390,954,837 | 388,922,752 |
Common stock, treasury shares | 27,368,413 | 27,368,413 |
Class B Common Stock | ||
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 | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating activities: | ||
Net income (loss) | $ 47 | $ (211) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 164 | 162 |
Operating lease expense | 32 | 43 |
Equity losses of affiliates | 1 | 2 |
Cash distributions received from affiliates | 4 | 2 |
Impairment charges | 0 | 273 |
Other, net | (17) | (4) |
Deferred income taxes and taxes payable | 10 | (45) |
Change in operating assets and liabilities, net of acquisitions: | ||
Receivables and other assets | (46) | (1,551) |
Inventories, net | 2 | (72) |
Accounts payable and other liabilities | (42) | 1,428 |
Net cash provided by operating activities | 155 | 27 |
Investing activities: | ||
Capital expenditures | (93) | (117) |
Acquisitions, net of cash acquired | (1) | 0 |
Investments in equity affiliates and other | (7) | (5) |
Proceeds from property, plant and equipment and other asset dispositions | 2 | 3 |
Other, net | 3 | 1 |
Net cash used in investing activities | (96) | (118) |
Financing activities: | ||
Borrowings | 123 | 199 |
Repayment of borrowings | (119) | (290) |
Dividends paid | (20) | (22) |
Other, net | (34) | 18 |
Net cash used in financing activities | (50) | (95) |
Net change in cash and cash equivalents | 9 | (186) |
Cash and cash equivalents, beginning of period | 1,517 | 1,643 |
Exchange movement on opening cash balance | 13 | (16) |
Cash and cash equivalents, end of period | $ 1,539 | $ 1,441 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Sep. 30, 2020 | |
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: digital real estate services, subscription video services in Australia, news and information services and book publishing. During the fourth quarter of fiscal 2020, in connection with the Company's sale of its News America Marketing reporting unit and its annual review of its reportable segments, the Company determined to disaggregate its Dow Jones operating segment as a separate reportable segment in accordance with Accounting Standard Codification (“ASC”) 280, “Segment Reporting.” Previously, the financial information for this operating segment was aggregated with the businesses within the News Media operating segment and, together, formed the News and Information Services reportable segment. Following the sale of its News America Marketing business in the fourth quarter of fiscal 2020 and in conjunction with the Company’s annual budgeting process, the Company determined that aggregation was no longer appropriate as certain of the remaining businesses no longer shared similar economic characteristics. As a result, the Company has revised its historical disclosures for the prior period to reflect the new Dow Jones and News Media reportable segments. 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, 2021. 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. The business and economic uncertainty resulting from the impacts of the ongoing novel coronavirus (“COVID-19”) pandemic has been considered in making those estimates and assumptions. 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. 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, 2020 as filed with the Securities and Exchange Commission (the “SEC”) on August 11, 2020 (the “2020 Form 10-K”). Certain reclassifications have been made to the prior period consolidated financial statements to conform to the current year presentation. Specifically, the Company reclassified certain costs at the Other segment that were previously included within Selling, general and administrative to Operating expenses. For the three months ended September 30, 2019, these reclassifications increased Operating expenses by $1 million. The Company’s fiscal year ends on the Sunday closest to June 30. Fiscal 2021 and fiscal 2020 include 52 weeks. All references to the three months ended September 30, 2020 and 2019 relate to the three months ended September 27, 2020 and September 29, 2019, respectively. For convenience purposes, the Company continues to date its Consolidated Financial Statements as of September 30. Recently Issued Accounting Pronouncements Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. The Company adopted the amendments in ASU 2016-13 on a modified retrospective basis as of July 1, 2020 and the adoption did not have a material effect on the Company's Consolidated Financial Statements. The Company will continue to actively monitor the impact of COVID-19 on expected credit losses. Allowance for doubtful accounts is calculated by pooling receivables with similar credit risks such as the level of delinquency, types of products or services and geographical locations and reflects the Company’s expected credit losses based on historical experience as well as current and expected economic conditions. Refer to Note 12—Additional Financial Information for further discussion. 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. The Company adopted the amendments to disclosure requirements in ASU 2018-13 on a prospective basis as of July 1, 2020. The adoption did not have a material effect on the Company's Consolidated Financial Statements. In March 2019, the FASB issued ASU 2019-02, “Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20) and Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350): Improvements to Accounting for Costs of Films and License Agreements for Program Materials (a consensus of the Emerging Issues Task Force)” (“ASU 2019-02”). The amendments in ASU 2019-02 align the impairment model in Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350) with the fair value model in Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20). The Company adopted the amendments in ASU 2019-02 on a prospective basis as of July 1, 2020. The adoption did not have a material effect on the Company's Consolidated Financial Statements. Refer to Note 12—Additional Financial Information for further discussion. Issued In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). The amendments in ASU 2019-12 remove certain exceptions to the general principles in Topic 740 and simplify other areas of Topic 740 including the accounting for and recognition of intraperiod tax allocation, deferred tax liabilities for outside basis differences for certain foreign subsidiaries, year-to-date losses in interim periods, deferred tax assets for goodwill in business combinations and franchise taxes in income tax expense. ASU 2019-12 is effective for the Company for annual and interim reporting periods beginning July 1, 2021, with early adoption permitted. The Company is currently evaluating the impact ASU 2019-12 will have on its Consolidated Financial Statements. |
Revenues
Revenues | 3 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | NOTE 2. REVENUES The following tables present the Company’s disaggregated revenues by type and segment for the three months ended September 30, 2020 and 2019: For the three months ended September 30, 2020 Digital Real Subscription Dow Jones Book News Media Total (in millions) Revenues: Circulation and subscription $ 8 $ 437 $ 311 $ — $ 246 $ 1,002 Advertising 28 50 70 — 184 332 Consumer — — — 441 — 441 Real estate 235 — — — — 235 Other 19 9 5 17 57 107 Total Revenues $ 290 $ 496 $ 386 $ 458 $ 487 $ 2,117 For the three months ended September 30, 2019 Digital Real Subscription Dow Jones Book News Media Total (in millions) Revenues: Circulation and subscription $ 10 $ 451 $ 289 $ — $ 245 $ 995 Advertising 27 51 84 — 446 608 Consumer — — — 387 — 387 Real estate 218 — — — — 218 Other 17 12 9 18 76 132 Total Revenues $ 272 $ 514 $ 382 $ 405 $ 767 $ 2,340 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 months ended September 30, 2020 and 2019: For the three months ended 2020 2019 (in millions) Balance, beginning of period $ 398 $ 428 Deferral of revenue 707 821 Recognition of deferred revenue (a) (701) (794) Other 5 (7) Balance, end of period $ 409 $ 448 (a) For the three months ended September 30, 2020 and 2019, the Company recognized $257 million and $266 million, respectively, of revenue which was included in the opening deferred revenue balance. Contract assets were immaterial for disclosure as of September 30, 2020 and 2019. 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 12 months or less. These costs are recorded within Selling, general and administrative in the Statements of Operations. The Company also does not capitalize significant financing components when the transfer of the good or service is paid within 12 months or less, or the receipt of consideration is received within 12 months or less of the transfer of the good or service. For the three months ended September 30, 2020, the Company recognized approximately $97 million 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 September 30, 2020 was approximately $458 million, of which approximately $175 million is expected to be recognized over the remainder of fiscal 2021, approximately $119 million is expected to be recognized in fiscal 2022 and approximately $45 million is expected to be recognized in fiscal 2023, 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, “Revenue From Contracts With Customers”. |
Restructuring Programs
Restructuring Programs | 3 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Programs | NOTE 3 . RESTRUCTURING PROGRAMS Restructuring During the three months ended September 30, 2020 and 2019, the Company recorded restructuring charges of $40 million and $24 million, respectively, of which $31 million and $18 million, respectively, related to the News Media segment. The restructuring charges recorded in fiscal 2021 primarily relate to exit costs associated with the anticipated closure of the Company’s Bronx print plant. In September 2020, the Company announced that it plans to close the plant and shift the printing of those publications in New York to a third party facility during the third quarter of fiscal 2021. Restructuring charges in fiscal 2020 were for employee termination benefits. Changes in restructuring program liabilities were as follows: For the three months ended September 30, 2020 2019 One time Other costs Total One time Facility Other costs Total (in millions) Balance, beginning of period $ 64 $ 9 $ 73 $ 28 $ 2 $ 10 $ 40 Additions 19 21 40 24 — — 24 Payments (48) — (48) (29) — — (29) Other (1) — (1) (1) (2) — (3) Balance, end of period $ 34 $ 30 $ 64 $ 22 $ — $ 10 $ 32 As of September 30, 2020, restructuring liabilities of approximately $35 million were included in the Balance Sheet in Other current liabilities and $29 million were included in Other non-current liabilities. |
Investments
Investments | 3 Months Ended |
Sep. 30, 2020 | |
Schedule of Investments [Abstract] | |
Investment | NOTE 4. INVESTMENTS The Company’s investments were comprised of the following: Ownership Percentage as of September 30, 2020 As of As of (in millions) Equity method investments (a) various $ 117 $ 120 Equity securities (b) various 197 177 Total Investments $ 314 $ 297 (a) Equity method investments are primarily comprised of Foxtel’s investment in Nickelodeon Australia Joint Venture and Elara Technologies Pte. Ltd. (“Elara”), which operates PropTiger.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 2020 2019 (in millions) Total gains recognized on equity securities $ 9 $ 1 Less: Net gains recognized on equity securities sold — — Unrealized gains recognized on equity securities held at end of period $ 9 $ 1 Equity Losses of Affiliates The Company’s share of the losses of its equity affiliates was $1 million and $2 million for the three months ended September 30, 2020 and 2019, respectively. |
Borrowings
Borrowings | 3 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings | NOTE 5. BORROWINGS The Company’s total borrowings consist of the following: Interest rate at September 30, 2020 Maturity at September 30, 2020 As of As of (in millions) Foxtel Group Credit facility 2019 (a) (c) 3.15 % Nov 22, 2022 $ 383 $ 371 Term loan facility 2019 (b) 6.25 % Nov 22, 2024 176 171 Working capital facility 2017 (a) (c) 3.15 % Nov 22, 2022 — — Telstra Facility (d) 7.90 % Dec 22, 2027 22 11 US private placement 2012 — USD portion — tranche 2 (e) 4.27 % Jul 25, 2022 197 200 US private placement 2012 — USD portion — tranche 3 (e) 4.42 % Jul 25, 2024 148 150 US private placement 2012 — AUD portion 7.04 % Jul 25, 2022 74 73 REA Group Credit facility 2018 (f) 0.99 % Apr 27, 2021 49 48 Credit facility 2019 (g) 0.99 % Dec 2, 2021 120 117 Credit facility 2020 (h) 2.14 % Dec 2, 2021 — — Finance lease and other liabilities 115 118 Total borrowings (i) 1,284 1,259 Less: current portion (j) (78) (76) Long-term borrowings $ 1,206 $ 1,183 (a) Borrowings under these facilities bear interest at a floating rate of the Australian BBSY plus an applicable margin of between 2.00% and 3.75% per annum depending on the Foxtel Debt Group’s (defined below) net leverage ratio. (b) Borrowings under this facility bear interest at a fixed rate of 6.25% per annum. (c) As of September 30, 2020, the Foxtel Debt Group had undrawn commitments of A$95 million under these facilities for which it pays a commitment fee of 45% of the applicable margin. (d) Borrowings under this facility bear interest at a variable rate of Australian BBSY plus a margin of 7.75%. The Company excludes borrowings under this facility from the Statements of Cash Flows as they are non-cash. (e) The carrying values of the borrowings include any fair value adjustments related to the Company’s fair value hedges. See Note 7—Financial Instruments and Fair Value Measurements. (f) Borrowings under this facility bear interest at a floating rate of the Australian BBSY plus a margin of between 0.85% and 2.75% depending on REA Group’s net leverage ratio. (g) Borrowings under this facility bear interest at a floating rate of the Australian BBSY plus a margin of between 0.85% and 2.00% depending on REA Group’s net leverage ratio. (h) Borrowings under this facility bear interest at a floating rate of the Australian BBSY plus a margin of 2.00% or 2.75% depending on REA Group’s net leverage ratio. (i) The Company’s outstanding borrowings as of September 30, 2020 were incurred by certain subsidiaries of NXE Australia Pty Limited (“Foxtel” and together with such subsidiaries, the “Foxtel Debt Group”) and by REA Group and certain of its subsidiaries. Foxtel and REA Group are consolidated but non wholly-owned subsidiaries of News Corp. These borrowings are only guaranteed by Foxtel and REA Group and certain of their respective subsidiaries, as applicable, and are non-recourse to News Corp. (j) The Company classifies the current portion of long term debt as non-current liabilities on the Balance Sheets when it has the intent and ability to refinance the obligation on a long-term basis, in accordance with ASC 470-50 “Debt.” $28 million relates to the current portion of finance lease liabilities. REA Group has access to an A$20 million overdraft facility (the “2020 Overdraft Facility”). The 2020 Overdraft Facility is an uncommitted facility that will be reviewed annually by the lender and bears interest at a rate based on the lender’s benchmark borrowing rate less a discount of 4.22%. The 2020 Overdraft Facility carries an annual facility fee of 0.15% of the A$20 million overdraft limit. As of September 30, 2020, REA Group had not borrowed any funds under the 2020 Overdraft Facility. In October 2020, REA Group amended certain terms of its credit facilities to, among other things, require REA Group to maintain a net leverage ratio of not more than 3.50 to 1.0 subsequent to December 31, 2020. The Company has access to an unsecured $750 million revolving credit facility (the “2019 News Corp Credit Facility”) under the Company’s 2019 Credit Agreement (the “2019 Credit Agreement”) that can be used for general corporate purposes. The 2019 News Corp Credit Facility has a sublimit of $100 million available for issuances of letters of credit. The Company may request increases in the amount of the facility up to a maximum amount of $1 billion. The lenders’ commitments to make the 2019 News Corp Credit Facility available terminate on December 12, 2024, and the Company may request that the commitments be extended under certain circumstances for up to two additional one-year periods. Interest on borrowings under the 2019 News Corp Credit Facility is based on either (a) a Eurodollar Rate formula or (b) the Base Rate formula, each as set forth in the 2019 Credit Agreement. The applicable margin and the commitment fee are based on the pricing grid in the 2019 Credit Agreement, which varies based on the Company’s adjusted operating income net leverage ratio. As of September 30, 2020, the Company was paying a commitment fee of 0.20% on any undrawn balance and an applicable margin of 0.375% for a Base Rate borrowing and 1.375% for a Eurodollar Rate borrowing. As of September 30, 2020, the Company had not borrowed any funds under the 2019 News Corp Credit Facility. Covenants The Company’s borrowings contain customary representations, covenants and events of default, including those discussed in the Company’s 2020 Form 10-K. If any of the events of default occur and are not cured within applicable grace periods or waived, any unpaid amounts under the Company’s debt agreements may be declared immediately due and payable. The Company was in compliance with all such covenants at September 30, 2020. |
Equity
Equity | 3 Months Ended |
Sep. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Equity | NOTE 6 . EQUITY The following tables summarize changes in equity for the three months ended September 30, 2020 and 2019: For the three months ended September 30, 2020 Class A Common Class B Common Additional Accumulated Accumulated Total Non-controlling Total Shares Amount Shares Amount (in millions) Balance, June 30, 2020 389 $ 4 200 $ 2 $ 12,148 $ (3,241) $ (1,331) $ 7,582 $ 807 $ 8,389 Net income — — — — — 34 — 34 13 47 Other comprehensive income — — — — — — 96 96 17 113 Dividends — — — — (59) — — (59) (20) (79) Other 2 — — — (14) — — (14) (2) (16) Balance, September 30, 2020 391 $ 4 200 $ 2 $ 12,075 $ (3,207) $ (1,235) $ 7,639 $ 815 $ 8,454 For the three months ended September 30, 2019 Class A Class B Additional Accumulated Accumulated Total Non-controlling Total Shares Amount Shares Amount (in millions) Balance, June 30, 2019 386 $ 4 200 $ 2 $ 12,243 $ (1,979) $ (1,126) $ 9,144 $ 1,167 $ 10,311 Cumulative impact from adoption of new standards — — — — — 6 3 9 — 9 Net (loss) income — — — — — (227) — (227) 16 (211) Other comprehensive loss — — — — — — (143) (143) (45) (188) Dividends — — — — (59) — — (59) (22) (81) Other 2 — — — (10) — — (10) (1) (11) Balance, September 30, 2019 388 $ 4 200 $ 2 $ 12,174 $ (2,200) $ (1,266) $ 8,714 $ 1,115 $ 9,829 Stock Repurchases The Company did not purchase any of its Class A Common Stock or Class B Common Stock during the three months ended September 30, 2020 and 2019. Dividends In August 2020, the Company’s Board of Directors (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 October 14, 2020 to stockholders of record as of September 16, 2020. 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. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | NOTE 7. 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 September 30, 2020 As of June 30, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in millions) Assets: Cross-currency interest rate derivatives - fair value hedges $ — $ 21 $ — $ 21 $ — $ 24 $ — $ 24 Cross-currency interest rate derivatives - cash flow hedges — 87 — 87 — 98 — 98 Equity securities (a) 68 — 129 197 54 — 123 177 Total assets $ 68 $ 108 $ 129 $ 305 $ 54 $ 122 $ 123 $ 299 Liabilities: Foreign currency derivatives - cash flow hedges $ — $ 3 $ — $ 3 $ — $ 3 $ — $ 3 Interest rate derivatives - cash flow hedges — 15 — 15 — 16 — 16 Cross-currency interest rate derivatives - cash flow hedges — 18 — 18 — 18 — 18 Total liabilities $ — $ 36 $ — $ 36 $ — $ 37 $ — $ 37 (a) See Note 4—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 three months ended September 30, 2020 2019 (in millions) Balance - beginning of period $ 123 $ 113 Additions 6 — Foreign exchange and other — (1) Balance - end of period $ 129 $ 112 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 Debt Group borrowings denominated in United States (“U.S.”) dollars, payments for customer premise equipment, and certain programming rights; and • interest rate risk: arising from fixed and floating rate Foxtel Debt 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: Balance Sheet Location As of As of (in millions) Cross-currency interest rate derivatives - fair value hedges Other non-current assets $ 21 $ 24 Cross-currency interest rate derivatives - cash flow hedges Other non-current assets 87 98 Foreign currency derivatives - cash flow hedges Other current liabilities (3) (3) Interest rate derivatives - cash flow hedges Other non-current liabilities (15) (16) Cross-currency interest rate derivatives - cash flow hedges Other non-current liabilities (18) (18) 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 future interest and principal payments and payments for customer premise equipment. The total notional value of foreign currency contract derivatives designated for hedging was $29 million as of September 30, 2020. The maximum hedged term over which the Company is hedging exposure to foreign currency fluctuations is to February 2021. As of September 30, 2020, the Company estimates that approximately $2 million of net derivative losses related to its foreign currency contract derivative cash flow hedges included in Accumulated other comprehensive loss will be reclassified into the Statements of Operations within the next 12 months. The total notional value of interest rate swap derivatives designated as cash flow hedges was approximately A$300 million as of September 30, 2020. The maximum hedged term over which the Company is hedging exposure to variability in interest payments is to September 2022. As of September 30, 2020, the Company estimates that approximately $3 million of net derivative gains related to its interest rate swap derivative cash flow hedges included in Accumulated other comprehensive loss will be reclassified into the Statements of Operations within the next 12 months. The total notional value of cross-currency interest rate swaps that were designated as cash flow hedges was approximately $280 million as of September 30, 2020. The maximum hedged term over which the Company is hedging exposure to variability in interest payments is to July 2024. As of September 30, 2020, the Company estimates that approximately $2 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 Statements 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 Statements of Operations during the three months ended September 30, 2020 and 2019: Gain (loss) recognized in Accumulated Other Comprehensive Loss for the three months ended September 30, (Gain) loss reclassified from Accumulated Other Comprehensive Loss for the three months ended September 30, Income statement 2020 2019 2020 2019 (in millions) Derivative instruments designated as cash flow hedges: Foreign currency derivatives - cash flow hedges $ — $ (1) $ — $ (2) Operating expenses Cross-currency interest rate derivatives - cash flow hedges (15) 5 13 (9) Interest (expense) income, net Interest rate derivatives - cash flow hedges — (4) 1 (6) Interest (expense) income, net Total $ (15) $ — $ 14 $ (17) Upon adoption of ASU 2017-12 as of July 1, 2019, the Company reclassified $5 million in gains from Accumulated deficit to Accumulated other comprehensive loss related to amounts previously recorded for the ineffective portion of outstanding derivative instruments designated as cash flow hedges. During the three months ended September 30, 2020 and 2019, the Company excluded the currency basis from the changes in fair value of the derivative instruments from the assessment of hedge effectiveness. Fair value hedges Borrowings issued at fixed rates and in U.S. dollars expose the Company 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. For the three months ended September 30, 2020, such adjustments increased the carrying value of borrowings by nil. The total notional value of the fair value hedges was approximately $70 million as of September 30, 2020. The maximum hedged term over which the Company is hedging exposure to variability in interest payments is to July 2024. During the three months ended September 30, 2020 and 2019, the amount recognized in the Statements of Operations on derivative instruments designated as fair value hedges related to the ineffective portion was nil and the Company excluded the currency basis from the changes in fair value of the derivative instruments from the assessment of hedge effectiveness. The following sets forth the effect of fair value hedging relationships on hedged items in the Balance Sheets as of September 30, 2020 and June 30, 2020: As of As of (in millions) Borrowings: Carrying amount of hedged item $ 70 $ 71 Cumulative hedging adjustments included in the carrying amount 5 6 Other Fair Value Measurements As of September 30, 2020, the carrying value of the Company’s outstanding borrowings approximates the fair value. The U.S. private placement borrowings are classified as Level 2 and the remaining borrowings are classified as Level 3 in the fair value hierarchy. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | NOTE 8 . 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 2020 2019 (in millions, except per share amounts) Net income (loss) $ 47 $ (211) Less: Net income attributable to noncontrolling interests (13) (16) Net income (loss) attributable to News Corporation stockholders $ 34 $ (227) Weighted-average number of shares of common stock outstanding - basic 589.5 586.7 Dilutive effect of equity awards (a) 1.3 — Weighted-average number of shares of common stock outstanding - diluted 590.8 586.7 Net income (loss) attributable to News Corporation stockholders per share - basic and diluted $ 0.06 $ (0.39) (a) The dilutive impact of the Company’s performance stock units, restricted stock units and stock options has been excluded from the calculation of diluted loss per share for the three months ended September 30, 2019 because their inclusion would have an antidilutive effect on the net loss per share. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 9. COMMITMENTS AND CONTINGENCIES Commitments The Company has commitments under certain firm contractual arrangements (“firm commitments”) to make future payments. These firm commitments secure the future rights to various assets and services to be used in the normal course of operations. The Company’s commitments as of September 30, 2020 have not changed significantly from the disclosures included in the 2020 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. News America Marketing In May 2020, the Company sold its News America Marketing business. In the transaction, the Company retained certain liabilities, including those arising from the legal proceedings with Insignia Systems, Inc. (“Insignia”) and Valassis Communications, Inc. (“Valassis”) described below. Insignia Systems, Inc. On July 11, 2019, Insignia filed a complaint in the U.S. District Court for the District of Minnesota against News America Marketing FSI L.L.C. (“NAM FSI”), News America Marketing In-Store Services L.L.C. (“NAM In-Store”) and News Corporation (together, the “NAM Parties”) alleging violations of federal and state antitrust laws and common law business torts. The complaint seeks treble damages, injunctive relief and attorneys’ fees and costs. On August 14, 2019, the NAM Parties answered the complaint and asserted a counterclaim against Insignia for breach of contract, alleging that Insignia violated a prior settlement agreement between NAM In-Store and Insignia. On July 10, 2020, each of the NAM Parties and Insignia filed a motion for summary judgment on the counterclaim. While it is not possible at this time to predict with any degree of certainty the ultimate outcome of this action, the NAM Parties believe they have been compliant with applicable laws and intend to defend themselves vigorously. Valassis Communications, Inc. On November 8, 2013, Valassis filed a complaint in the U.S. District Court for the Eastern District of Michigan (the “District Court”) against the NAM Parties and News America Incorporated (together, the “NAM Group”) alleging violations of federal and state antitrust laws and common law business torts, including unfair competition. The complaint seeks treble damages, injunctive relief and attorneys’ fees and costs. NAM In-Store and NAM FSI asserted a counterclaim against Valassis for unfair competition, alleging that Valassis has engaged in the same practices that it alleges to be unfair. In November 2019, the parties agreed to discontinue the unfair competition claim and counterclaim. On December 19, 2013, the NAM Group filed a motion to dismiss the complaint and on March 30, 2016, the District Court dismissed Valassis’s bundling and tying claims. On September 25, 2017, the District Court granted Valassis’s motion to transfer the case to the U.S. District Court for the Southern District of New York (the “N.Y. District Court”). On April 13, 2018, the NAM Group filed a motion for summary judgment dismissing the case which was granted in part and denied in part by the N.Y. District Court on February 21, 2019. The N.Y. District Court found that the NAM Group’s bidding practices were lawful but denied its motion with respect to claims arising out of certain other alleged contracting practices. In addition, the N.Y. District Court also dismissed Valassis’s claims relating to free-standing insert products. On December 20, 2019, the N.Y. District Court granted the NAM Group’s motion to exclude the testimony of Valassis’s sole damages expert, but subsequently clarified that Valassis could seek the court’s permission to prove damages through other evidence. Valassis filed a motion to supplement and amend its expert and pre-trial damages disclosures, which the N.Y. District Court granted on April 24, 2020. On May 8, 2020, the NAM Group filed a motion to reconsider the N.Y. District Court’s April 24, 2020 decision, which the court denied on October 23, 2020. A trial date has not been set by the court. 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 of the Company from Twenty-First Century Fox, Inc. (“21st Century Fox”) on June 28, 2013, 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 such 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 related to the U.K. Newspaper Matters in Selling, general and administrative was $2 million for both the three months ended September 30, 2020 and 2019. As of September 30, 2020, the Company has provided for its best estimate of the liability for the claims that have been filed and costs incurred, including liabilities associated with employment taxes, and has accrued approximately $54 million. The amount to be indemnified by FOX of approximately $61 million was recorded as a receivable in Other current assets on the Balance Sheet as of September 30, 2020. It is not possible to estimate the liability or corresponding receivable for any additional claims that may be filed given the information that is currently available to the Company. If more claims are filed and additional information becomes available, the Company will update the liability provision and corresponding receivable for such matters. 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 | 3 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10. 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. The changing and volatile macro-economic conditions connected with COVID-19 may cause fluctuations in forecasted earnings before income taxes. As such, the Company’s effective tax rate could be subject to volatility as forecasted earnings before income taxes are impacted by events which are highly uncertain and cannot be predicted. For the three months ended September 30, 2020, the Company recorded income tax expense of $25 million on pre-tax income of $72 million, resulting in an effective tax rate that was higher than the U.S. statutory tax rate. The higher tax rate was primarily driven by the Company’s jurisdictional income (loss) mix which includes the impact of foreign operations which are subject to higher taxes. For the three months ended September 30, 2019, the Company recorded an income tax benefit of $21 million on a pre-tax loss of $232 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 the lower tax benefit recorded on the impairment of News America Marketing’s goodwill and indefinite-lived intangible assets and by valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses. 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 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. 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 is currently undergoing tax examinations in various U.S. state and foreign jurisdictions. During the three months ended September 30, 2020, the Company reached a final settlement with the Internal Revenue Service for the fiscal year ended June 30, 2014 as the statute of limitations expired for that year. There was no change from the results that the Company recorded as of June 30, 2020 for this expiration of statute. 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. |
Segment Information
Segment Information | 3 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 11. SEGMENT INFORMATION The Company manages and reports its businesses in the following six segments: • 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 Australian Securities Exchange (“ASX”) (ASX: REA). REA Group advertises property and property-related services on its websites and mobile apps across Australia and Asia, including Australia’s leading residential, commercial and share property websites, realestate.com.au, realcommercial.com.au and Flatmates.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 digital real estate services in the U.S. and primarily operates realtor.com ® , a premier real estate information and services marketplace. Move offers real estate advertising solutions to agents and brokers, including its Connections SM Plus and Advantage SM Pro products as well as its referral-based services. Move also offers a number of professional software and services products, including Top Producer ® and ListHub ™ . • 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 distribution, and consists of (i) the Company’s 65% interest in Foxtel (with the remaining 35% interest in Foxtel held by Telstra, an ASX-listed telecommunications company) and (ii) Australian News Channel (“ANC”). Foxtel is the largest pay-TV provider in Australia, with nearly 200 channels covering sports, general entertainment, movies, documentaries, music, children’s programming and news. Foxtel offers the leading sports programming content in Australia, with broadcast rights to live sporting events including: National Rugby League, Australian Football League, Cricket Australia, the domestic football league, the Australian Rugby Union and various motorsports programming. Foxtel also operates Foxtel Now, an over-the-top, or OTT, service that provides access across Foxtel’s live and on-demand content, Kayo, its sports OTT service, and Binge, its recently launched on-demand entertainment OTT 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 web, mobile and third party providers. • Dow Jones —The Dow Jones segment consists of Dow Jones, a global provider of news and business information, which distributes its content and data through a variety of media channels including newspapers, newswires, websites, applications, or apps, for mobile devices, tablets and e-book readers, newsletters, magazines, proprietary databases, live journalism, video and podcasts. Dow Jones’s products, which target individual consumer and enterprise customers, include The Wall Street Journal , Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, Barron’s and MarketWatch. • 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, David Walliams, Angie Thomas, Sarah Young and Agatha Christie and popular titles such as The Hobbit, Goodnight Moon, To Kill a Mockingbird, Jesus Calling and The Hate U Give . • News Media —The News Media segment consists primarily of News Corp Australia, News UK and the New York Post and includes, among other publications, The Australian, The Daily Telegraph, Herald Sun, The Courier Mail and The Advertiser in Australia and The Times, The Sunday Times, The Sun and The Sun on Sunday in the U.K. This segment also includes Wireless Group, operator of talkSPORT, the leading sports radio network in the U.K., and Storyful, a social media content agency. The segment included News America Marketing until the completion of the sale of the business on May 5, 2020. • Other —The Other segment consists primarily of general corporate overhead expenses, the corporate Strategy Group, costs related to the U.K. Newspaper Matters and transformation costs associated with the Company’s global shared services program. 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 2020 2019 (in millions) Revenues: Digital Real Estate Services $ 290 $ 272 Subscription Video Services 496 514 Dow Jones 386 382 Book Publishing 458 405 News Media 487 767 Total revenues $ 2,117 $ 2,340 Segment EBITDA: Digital Real Estate Services $ 119 $ 82 Subscription Video Services 78 81 Dow Jones 72 49 Book Publishing 71 49 News Media (22) 7 Other (50) (47) Depreciation and amortization (164) (162) Impairment and restructuring charges (40) (297) Equity losses of affiliates (1) (2) Interest (expense) income, net (8) 4 Other, net 17 4 Income (loss) before income tax (expense) benefit 72 (232) Income tax (expense) benefit (25) 21 Net income (loss) $ 47 $ (211) As of As of (in millions) Total assets: Digital Real Estate Services $ 2,335 $ 2,322 Subscription Video Services 3,513 3,459 Dow Jones 2,435 2,480 Book Publishing 2,233 2,212 News Media 2,075 1,994 Other (a) 1,495 1,497 Investments 314 297 Total assets $ 14,400 $ 14,261 (a) The Other segment primarily includes Cash and cash equivalents. As of As of (in millions) Goodwill and intangible assets, net: Digital Real Estate Services $ 1,567 $ 1,555 Subscription Video Services 1,535 1,513 Dow Jones 1,719 1,722 Book Publishing 760 748 News Media 285 277 Total Goodwill and intangible assets, net $ 5,866 $ 5,815 |
Additional Financial Informatio
Additional Financial Information | 3 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Financial Information | NOTE 12. 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 and future economic trends and specific identification of certain receivables that are at risk of not being collected. Receivables, net consist of: As of As of (in millions) Receivables $ 1,315 $ 1,276 Allowance for doubtful accounts (75) (73) Receivables, net $ 1,240 $ 1,203 Other Non-Current Assets The following table sets forth the components of Other non-current assets: As of As of (in millions) Royalty advances to authors $ 346 $ 348 Retirement benefit assets 108 94 Inventory (a) 282 133 News America Marketing deferred consideration 117 111 Other 322 353 Total Other non-current assets $ 1,175 $ 1,039 (a) The balance as of September 30, 2020 primarily consists of the non-current portion of programming rights. Upon adoption of ASU 2019-02, Other Current Liabilities The following table sets forth the components of Other current liabilities: As of As of (in millions) Royalties and commissions payable $ 198 $ 169 Current operating lease liabilities 124 131 Allowance for sales returns 175 174 Current tax payable 66 50 Other 306 314 Total Other current liabilities $ 869 $ 838 Other, net The following table sets forth the components of Other, net: For the three months ended 2020 2019 (in millions) Remeasurement of equity securities $ 9 $ 1 Dividends received from equity security investments 2 — Other 6 3 Total Other, net $ 17 $ 4 Supplemental Cash Flow Information The following table sets forth the Company’s cash paid for taxes and interest: For the three months ended 2020 2019 (in millions) Cash paid for interest 16 16 Cash paid for taxes 23 27 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 13. SUBSEQUENT EVENTS Elara In October 2020, REA Group entered into a binding agreement to increase its ownership interest in Elara. REA Group currently holds a 13.5% interest and on completion, is expected to have a shareholding of between 47.2% and 61.1% and hold five of nine seats on Elara’s Board of Directors. Upon completion of the transaction, REA Group will consolidate Elara's financial results. The total consideration for the transaction at the REA Group level is expected to be between $50 million to $70 million, with $34.5 million to be paid in cash and the remainder in newly-issued REA Group shares. In connection with the transaction, News Corp will also increase its interest in Elara to 38.9% for a cash payment of $34.5 million. On a consolidated basis, News Corp is expected to hold an 86.1% to 100% combined interest in Elara upon completion. The transaction, which remains subject to confirmatory due diligence and the renegotiation of key management employment contracts, is anticipated to be completed in the second quarter of fiscal 2021. |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 3 Months Ended |
Sep. 30, 2020 | |
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, 2021. 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. The business and economic uncertainty resulting from the impacts of the ongoing novel coronavirus (“COVID-19”) pandemic has been considered in making those estimates and assumptions. 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. 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, 2020 as filed with the Securities and Exchange Commission (the “SEC”) on August 11, 2020 (the “2020 Form 10-K”). Certain reclassifications have been made to the prior period consolidated financial statements to conform to the current year presentation. Specifically, the Company reclassified certain costs at the Other segment that were previously included within Selling, general and administrative to Operating expenses. For the three months ended September 30, 2019, these reclassifications increased Operating expenses by $1 million. The Company’s fiscal year ends on the Sunday closest to June 30. Fiscal 2021 and fiscal 2020 include 52 weeks. All references to the three months ended September 30, 2020 and 2019 relate to the three months ended September 27, 2020 and September 29, 2019, respectively. For convenience purposes, the Company continues to date its Consolidated Financial Statements as of September 30. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. The Company adopted the amendments in ASU 2016-13 on a modified retrospective basis as of July 1, 2020 and the adoption did not have a material effect on the Company's Consolidated Financial Statements. The Company will continue to actively monitor the impact of COVID-19 on expected credit losses. Allowance for doubtful accounts is calculated by pooling receivables with similar credit risks such as the level of delinquency, types of products or services and geographical locations and reflects the Company’s expected credit losses based on historical experience as well as current and expected economic conditions. Refer to Note 12—Additional Financial Information for further discussion. 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. The Company adopted the amendments to disclosure requirements in ASU 2018-13 on a prospective basis as of July 1, 2020. The adoption did not have a material effect on the Company's Consolidated Financial Statements. In March 2019, the FASB issued ASU 2019-02, “Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20) and Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350): Improvements to Accounting for Costs of Films and License Agreements for Program Materials (a consensus of the Emerging Issues Task Force)” (“ASU 2019-02”). The amendments in ASU 2019-02 align the impairment model in Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350) with the fair value model in Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20). The Company adopted the amendments in ASU 2019-02 on a prospective basis as of July 1, 2020. The adoption did not have a material effect on the Company's Consolidated Financial Statements. Refer to Note 12—Additional Financial Information for further discussion. Issued In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). The amendments in ASU 2019-12 remove certain exceptions to the general principles in Topic 740 and simplify other areas of Topic 740 including the accounting for and recognition of intraperiod tax allocation, deferred tax liabilities for outside basis differences for certain foreign subsidiaries, year-to-date losses in interim periods, deferred tax assets for goodwill in business combinations and franchise taxes in income tax expense. ASU 2019-12 is effective for the Company for annual and interim reporting periods beginning July 1, 2021, with early adoption permitted. The Company is currently evaluating the impact ASU 2019-12 will have on its Consolidated Financial Statements. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregated Revenue by Type and Segment | The following tables present the Company’s disaggregated revenues by type and segment for the three months ended September 30, 2020 and 2019: For the three months ended September 30, 2020 Digital Real Subscription Dow Jones Book News Media Total (in millions) Revenues: Circulation and subscription $ 8 $ 437 $ 311 $ — $ 246 $ 1,002 Advertising 28 50 70 — 184 332 Consumer — — — 441 — 441 Real estate 235 — — — — 235 Other 19 9 5 17 57 107 Total Revenues $ 290 $ 496 $ 386 $ 458 $ 487 $ 2,117 For the three months ended September 30, 2019 Digital Real Subscription Dow Jones Book News Media Total (in millions) Revenues: Circulation and subscription $ 10 $ 451 $ 289 $ — $ 245 $ 995 Advertising 27 51 84 — 446 608 Consumer — — — 387 — 387 Real estate 218 — — — — 218 Other 17 12 9 18 76 132 Total Revenues $ 272 $ 514 $ 382 $ 405 $ 767 $ 2,340 |
Summary of Deferred Revenue from Contracts with Customers | The following table presents changes in the deferred revenue balance for the three months ended September 30, 2020 and 2019: For the three months ended 2020 2019 (in millions) Balance, beginning of period $ 398 $ 428 Deferral of revenue 707 821 Recognition of deferred revenue (a) (701) (794) Other 5 (7) Balance, end of period $ 409 $ 448 (a) For the three months ended September 30, 2020 and 2019, the Company recognized $257 million and $266 million, respectively, of revenue which was included in the opening deferred revenue balance. |
Restructuring Programs (Tables)
Restructuring Programs (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020 2019 One time Other costs Total One time Facility Other costs Total (in millions) Balance, beginning of period $ 64 $ 9 $ 73 $ 28 $ 2 $ 10 $ 40 Additions 19 21 40 24 — — 24 Payments (48) — (48) (29) — — (29) Other (1) — (1) (1) (2) — (3) Balance, end of period $ 34 $ 30 $ 64 $ 22 $ — $ 10 $ 32 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Schedule of Investments [Abstract] | |
Schedule of Investments | The Company’s investments were comprised of the following: Ownership Percentage as of September 30, 2020 As of As of (in millions) Equity method investments (a) various $ 117 $ 120 Equity securities (b) various 197 177 Total Investments $ 314 $ 297 (a) Equity method investments are primarily comprised of Foxtel’s investment in Nickelodeon Australia Joint Venture and Elara Technologies Pte. Ltd. (“Elara”), which operates PropTiger.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 components comprising total gains and losses on equity securities are set forth below: For the three months ended 2020 2019 (in millions) Total gains recognized on equity securities $ 9 $ 1 Less: Net gains recognized on equity securities sold — — Unrealized gains recognized on equity securities held at end of period $ 9 $ 1 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | The Company’s total borrowings consist of the following: Interest rate at September 30, 2020 Maturity at September 30, 2020 As of As of (in millions) Foxtel Group Credit facility 2019 (a) (c) 3.15 % Nov 22, 2022 $ 383 $ 371 Term loan facility 2019 (b) 6.25 % Nov 22, 2024 176 171 Working capital facility 2017 (a) (c) 3.15 % Nov 22, 2022 — — Telstra Facility (d) 7.90 % Dec 22, 2027 22 11 US private placement 2012 — USD portion — tranche 2 (e) 4.27 % Jul 25, 2022 197 200 US private placement 2012 — USD portion — tranche 3 (e) 4.42 % Jul 25, 2024 148 150 US private placement 2012 — AUD portion 7.04 % Jul 25, 2022 74 73 REA Group Credit facility 2018 (f) 0.99 % Apr 27, 2021 49 48 Credit facility 2019 (g) 0.99 % Dec 2, 2021 120 117 Credit facility 2020 (h) 2.14 % Dec 2, 2021 — — Finance lease and other liabilities 115 118 Total borrowings (i) 1,284 1,259 Less: current portion (j) (78) (76) Long-term borrowings $ 1,206 $ 1,183 (a) Borrowings under these facilities bear interest at a floating rate of the Australian BBSY plus an applicable margin of between 2.00% and 3.75% per annum depending on the Foxtel Debt Group’s (defined below) net leverage ratio. (b) Borrowings under this facility bear interest at a fixed rate of 6.25% per annum. (c) As of September 30, 2020, the Foxtel Debt Group had undrawn commitments of A$95 million under these facilities for which it pays a commitment fee of 45% of the applicable margin. (d) Borrowings under this facility bear interest at a variable rate of Australian BBSY plus a margin of 7.75%. The Company excludes borrowings under this facility from the Statements of Cash Flows as they are non-cash. (e) The carrying values of the borrowings include any fair value adjustments related to the Company’s fair value hedges. See Note 7—Financial Instruments and Fair Value Measurements. (f) Borrowings under this facility bear interest at a floating rate of the Australian BBSY plus a margin of between 0.85% and 2.75% depending on REA Group’s net leverage ratio. (g) Borrowings under this facility bear interest at a floating rate of the Australian BBSY plus a margin of between 0.85% and 2.00% depending on REA Group’s net leverage ratio. (h) Borrowings under this facility bear interest at a floating rate of the Australian BBSY plus a margin of 2.00% or 2.75% depending on REA Group’s net leverage ratio. (i) The Company’s outstanding borrowings as of September 30, 2020 were incurred by certain subsidiaries of NXE Australia Pty Limited (“Foxtel” and together with such subsidiaries, the “Foxtel Debt Group”) and by REA Group and certain of its subsidiaries. Foxtel and REA Group are consolidated but non wholly-owned subsidiaries of News Corp. These borrowings are only guaranteed by Foxtel and REA Group and certain of their respective subsidiaries, as applicable, and are non-recourse to News Corp. (j) The Company classifies the current portion of long term debt as non-current liabilities on the Balance Sheets when it has the intent and ability to refinance the obligation on a long-term basis, in accordance with ASC 470-50 “Debt.” $28 million relates to the current portion of finance lease liabilities. |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Summary of Changes in Equity | The following tables summarize changes in equity for the three months ended September 30, 2020 and 2019: For the three months ended September 30, 2020 Class A Common Class B Common Additional Accumulated Accumulated Total Non-controlling Total Shares Amount Shares Amount (in millions) Balance, June 30, 2020 389 $ 4 200 $ 2 $ 12,148 $ (3,241) $ (1,331) $ 7,582 $ 807 $ 8,389 Net income — — — — — 34 — 34 13 47 Other comprehensive income — — — — — — 96 96 17 113 Dividends — — — — (59) — — (59) (20) (79) Other 2 — — — (14) — — (14) (2) (16) Balance, September 30, 2020 391 $ 4 200 $ 2 $ 12,075 $ (3,207) $ (1,235) $ 7,639 $ 815 $ 8,454 For the three months ended September 30, 2019 Class A Class B Additional Accumulated Accumulated Total Non-controlling Total Shares Amount Shares Amount (in millions) Balance, June 30, 2019 386 $ 4 200 $ 2 $ 12,243 $ (1,979) $ (1,126) $ 9,144 $ 1,167 $ 10,311 Cumulative impact from adoption of new standards — — — — — 6 3 9 — 9 Net (loss) income — — — — — (227) — (227) 16 (211) Other comprehensive loss — — — — — — (143) (143) (45) (188) Dividends — — — — (59) — — (59) (22) (81) Other 2 — — — (10) — — (10) (1) (11) Balance, September 30, 2019 388 $ 4 200 $ 2 $ 12,174 $ (2,200) $ (1,266) $ 8,714 $ 1,115 $ 9,829 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020 As of June 30, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in millions) Assets: Cross-currency interest rate derivatives - fair value hedges $ — $ 21 $ — $ 21 $ — $ 24 $ — $ 24 Cross-currency interest rate derivatives - cash flow hedges — 87 — 87 — 98 — 98 Equity securities (a) 68 — 129 197 54 — 123 177 Total assets $ 68 $ 108 $ 129 $ 305 $ 54 $ 122 $ 123 $ 299 Liabilities: Foreign currency derivatives - cash flow hedges $ — $ 3 $ — $ 3 $ — $ 3 $ — $ 3 Interest rate derivatives - cash flow hedges — 15 — 15 — 16 — 16 Cross-currency interest rate derivatives - cash flow hedges — 18 — 18 — 18 — 18 Total liabilities $ — $ 36 $ — $ 36 $ — $ 37 $ — $ 37 (a) See Note 4—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 three months ended September 30, 2020 2019 (in millions) Balance - beginning of period $ 123 $ 113 Additions 6 — Foreign exchange and other — (1) Balance - end of period $ 129 $ 112 |
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: Balance Sheet Location As of As of (in millions) Cross-currency interest rate derivatives - fair value hedges Other non-current assets $ 21 $ 24 Cross-currency interest rate derivatives - cash flow hedges Other non-current assets 87 98 Foreign currency derivatives - cash flow hedges Other current liabilities (3) (3) Interest rate derivatives - cash flow hedges Other non-current liabilities (15) (16) Cross-currency interest rate derivatives - cash flow hedges Other non-current liabilities (18) (18) |
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 Statements of Operations during the three months ended September 30, 2020 and 2019: Gain (loss) recognized in Accumulated Other Comprehensive Loss for the three months ended September 30, (Gain) loss reclassified from Accumulated Other Comprehensive Loss for the three months ended September 30, Income statement 2020 2019 2020 2019 (in millions) Derivative instruments designated as cash flow hedges: Foreign currency derivatives - cash flow hedges $ — $ (1) $ — $ (2) Operating expenses Cross-currency interest rate derivatives - cash flow hedges (15) 5 13 (9) Interest (expense) income, net Interest rate derivatives - cash flow hedges — (4) 1 (6) Interest (expense) income, net Total $ (15) $ — $ 14 $ (17) |
Schedule of FairValue Hedging Relationship By Balance Sheet | The following sets forth the effect of fair value hedging relationships on hedged items in the Balance Sheets as of September 30, 2020 and June 30, 2020: As of As of (in millions) Borrowings: Carrying amount of hedged item $ 70 $ 71 Cumulative hedging adjustments included in the carrying amount 5 6 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings 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 2020 2019 (in millions, except per share amounts) Net income (loss) $ 47 $ (211) Less: Net income attributable to noncontrolling interests (13) (16) Net income (loss) attributable to News Corporation stockholders $ 34 $ (227) Weighted-average number of shares of common stock outstanding - basic 589.5 586.7 Dilutive effect of equity awards (a) 1.3 — Weighted-average number of shares of common stock outstanding - diluted 590.8 586.7 Net income (loss) attributable to News Corporation stockholders per share - basic and diluted $ 0.06 $ (0.39) (a) The dilutive impact of the Company’s performance stock units, restricted stock units and stock options has been excluded from the calculation of diluted loss per share for the three months ended September 30, 2019 because their inclusion would have an antidilutive effect on the net loss per share. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue and Segment EBITDA from Segments to Consolidated | Segment information is summarized as follows: For the three months ended 2020 2019 (in millions) Revenues: Digital Real Estate Services $ 290 $ 272 Subscription Video Services 496 514 Dow Jones 386 382 Book Publishing 458 405 News Media 487 767 Total revenues $ 2,117 $ 2,340 Segment EBITDA: Digital Real Estate Services $ 119 $ 82 Subscription Video Services 78 81 Dow Jones 72 49 Book Publishing 71 49 News Media (22) 7 Other (50) (47) Depreciation and amortization (164) (162) Impairment and restructuring charges (40) (297) Equity losses of affiliates (1) (2) Interest (expense) income, net (8) 4 Other, net 17 4 Income (loss) before income tax (expense) benefit 72 (232) Income tax (expense) benefit (25) 21 Net income (loss) $ 47 $ (211) |
Reconciliation of Assets from Segments to Consolidated | As of As of (in millions) Total assets: Digital Real Estate Services $ 2,335 $ 2,322 Subscription Video Services 3,513 3,459 Dow Jones 2,435 2,480 Book Publishing 2,233 2,212 News Media 2,075 1,994 Other (a) 1,495 1,497 Investments 314 297 Total assets $ 14,400 $ 14,261 (a) The Other segment primarily includes Cash and cash equivalents. |
Reconciliation of Goodwill and Intangible Assets from Segments to Consolidated | As of As of (in millions) Goodwill and intangible assets, net: Digital Real Estate Services $ 1,567 $ 1,555 Subscription Video Services 1,535 1,513 Dow Jones 1,719 1,722 Book Publishing 760 748 News Media 285 277 Total Goodwill and intangible assets, net $ 5,866 $ 5,815 |
Additional Financial Informat_2
Additional Financial Information (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Receivables, Net | Receivables, net consist of: As of As of (in millions) Receivables $ 1,315 $ 1,276 Allowance for doubtful accounts (75) (73) Receivables, net $ 1,240 $ 1,203 |
Components of Other Non-Current Assets | The following table sets forth the components of Other non-current assets: As of As of (in millions) Royalty advances to authors $ 346 $ 348 Retirement benefit assets 108 94 Inventory (a) 282 133 News America Marketing deferred consideration 117 111 Other 322 353 Total Other non-current assets $ 1,175 $ 1,039 ASU 2019-02, |
Components of Other Current Liabilities | The following table sets forth the components of Other current liabilities: As of As of (in millions) Royalties and commissions payable $ 198 $ 169 Current operating lease liabilities 124 131 Allowance for sales returns 175 174 Current tax payable 66 50 Other 306 314 Total Other current liabilities $ 869 $ 838 |
Components of Other, Net | The following table sets forth the components of Other, net: For the three months ended 2020 2019 (in millions) Remeasurement of equity securities $ 9 $ 1 Dividends received from equity security investments 2 — Other 6 3 Total Other, net $ 17 $ 4 |
Summary of Supplemental Cash Flow Information | The following table sets forth the Company’s cash paid for taxes and interest: For the three months ended 2020 2019 (in millions) Cash paid for interest 16 16 Cash paid for taxes 23 27 |
Description of Business and B_3
Description of Business and Basis of presentation (Detail) $ in Millions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Effect of reclassification of expenses | $ 1 |
Revenues - Summary of Disaggreg
Revenues - Summary of Disaggregated Revenue by Type and by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 2,117 | $ 2,340 |
Circulation and subscription | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,002 | 995 |
Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 332 | 608 |
Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 441 | 387 |
Real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 235 | 218 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 107 | 132 |
Digital Real Estate Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 290 | 272 |
Digital Real Estate Services | Circulation and subscription | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 8 | 10 |
Digital Real Estate Services | Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 28 | 27 |
Digital Real Estate Services | Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Digital Real Estate Services | Real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 235 | 218 |
Digital Real Estate Services | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 19 | 17 |
Subscription Video Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 496 | 514 |
Subscription Video Services | Circulation and subscription | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 437 | 451 |
Subscription Video Services | Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 50 | 51 |
Subscription Video Services | Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Subscription Video Services | Real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Subscription Video Services | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 9 | 12 |
Dow Jones | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 386 | 382 |
Dow Jones | Circulation and subscription | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 311 | 289 |
Dow Jones | Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 70 | 84 |
Dow Jones | Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Dow Jones | Real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Dow Jones | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 5 | 9 |
Book Publishing | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 458 | 405 |
Book Publishing | Circulation and subscription | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Book Publishing | Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Book Publishing | Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 441 | 387 |
Book Publishing | Real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Book Publishing | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 17 | 18 |
News Media | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 487 | 767 |
News Media | Circulation and subscription | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 246 | 245 |
News Media | Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 184 | 446 |
News Media | Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
News Media | Real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
News Media | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 57 | $ 76 |
Revenues - Summary of Deferred
Revenues - Summary of Deferred Revenue from Contract with Customers (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Contract with Customer, Liability [Roll Forward] | ||
Balance, beginning of period | $ 398 | $ 428 |
Deferral of revenue | 707 | 821 |
Recognition of deferred revenue | (701) | (794) |
Other | 5 | (7) |
Balance, end of period | 409 | 448 |
Deferred Revenue | ||
Contract with Customer, Liability [Roll Forward] | ||
Recognition of deferred revenue | $ (257) | $ (266) |
Revenues - Revenue Remaining Pe
Revenues - Revenue Remaining Performance Obligation (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 97 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 458 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 175 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 119 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 45 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Restructuring Programs - Additi
Restructuring Programs - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Additions | $ 40 | $ 24 |
News Media | ||
Restructuring Cost and Reserve [Line Items] | ||
Additions | 31 | $ 18 |
Other Current Liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liabilities, current | 35 | |
Other Noncurrent Liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liabilities, non-current | $ 29 |
Restructuring Programs - Schedu
Restructuring Programs - Schedule of Changes in Restructuring Program Liabilities (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring Liabilities, Beginning Balance | $ 73 | $ 40 |
Additions | 40 | 24 |
Payments | (48) | (29) |
Other | (1) | (3) |
Restructuring Liabilities, Ending Balance | 64 | 32 |
One time employee termination benefits | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Liabilities, Beginning Balance | 64 | 28 |
Additions | 19 | 24 |
Payments | (48) | (29) |
Other | (1) | (1) |
Restructuring Liabilities, Ending Balance | 34 | 22 |
Facility related costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Liabilities, Beginning Balance | 2 | |
Additions | 0 | |
Payments | 0 | |
Other | (2) | |
Restructuring Liabilities, Ending Balance | 0 | |
Other costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Liabilities, Beginning Balance | 9 | 10 |
Additions | 21 | 0 |
Payments | 0 | 0 |
Other | 0 | 0 |
Restructuring Liabilities, Ending Balance | $ 30 | $ 10 |
Investments - Schedule of Inves
Investments - Schedule of Investments (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 |
Schedule of Investments [Abstract] | ||
Equity method investments | $ 117 | $ 120 |
Equity securities | 197 | 177 |
Total Investments | $ 314 | $ 297 |
Investments - Schedule of Total
Investments - Schedule of Total Gains and Losses on Equity Securities (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of Investments [Abstract] | ||
Total gains recognized on equity securities | $ 9 | $ 1 |
Less: Net gains recognized on equity securities sold | 0 | 0 |
Unrealized gains recognized on equity securities held at end of period | $ 9 | $ 1 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of Investments [Abstract] | ||
Equity losses of affiliates | $ 1 | $ 2 |
Borrowings - Schedule of Borrow
Borrowings - Schedule of Borrowings (Detail) $ in Millions, $ in Millions | 3 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2020AUD ($) | Jun. 30, 2020USD ($) | ||
Debt and Financial Instruments [Line Items] | ||||
Finance lease and other liabilities | $ 115 | $ 118 | ||
Total borrowings | [1] | 1,284 | 1,259 | |
Less: current portion | [2] | (78) | (76) | |
Long-term borrowings | 1,206 | 1,183 | ||
Finance lease liabilities, current | $ 28 | |||
Credit facility 2019 | Australian BBSY | Minimum | Foxtel | ||||
Debt and Financial Instruments [Line Items] | ||||
Interest rate margin | 2.00% | |||
Credit facility 2019 | Australian BBSY | Maximum | Foxtel | ||||
Debt and Financial Instruments [Line Items] | ||||
Interest rate margin | 3.75% | |||
Credit facility 2019 | Foxtel | ||||
Debt and Financial Instruments [Line Items] | ||||
Total borrowings | [3],[4] | $ 383 | 371 | |
Interest rate | [3],[4] | 3.15% | 3.15% | |
Credit facility 2019 | REA Group | ||||
Debt and Financial Instruments [Line Items] | ||||
Total borrowings | [5] | $ 120 | 117 | |
Interest rate | [5] | 0.99% | 0.99% | |
Credit facility 2019 | REA Group | Australian BBSY | Minimum | Unsecured Revolving Credit Facility | ||||
Debt and Financial Instruments [Line Items] | ||||
Interest rate margin | 0.85% | |||
Credit facility 2019 | REA Group | Australian BBSY | Maximum | Unsecured Revolving Credit Facility | ||||
Debt and Financial Instruments [Line Items] | ||||
Interest rate margin | 2.00% | |||
Term loan facility 2019 | Foxtel | ||||
Debt and Financial Instruments [Line Items] | ||||
Total borrowings | [6] | $ 176 | 171 | |
Interest rate | [6] | 6.25% | 6.25% | |
Working Capital Facility 2017 | Foxtel | ||||
Debt and Financial Instruments [Line Items] | ||||
Debt instrument unused borrowing capacity | $ 95 | |||
Debt instrument unused borrowing capacity percentage fee | 45.00% | |||
Working Capital Facility 2017 | Foxtel | ||||
Debt and Financial Instruments [Line Items] | ||||
Total borrowings | [3],[4] | $ 0 | 0 | |
Interest rate | [3],[4] | 3.15% | 3.15% | |
Telstra Facility | Foxtel | ||||
Debt and Financial Instruments [Line Items] | ||||
Total borrowings | [7] | $ 22 | 11 | |
Interest rate | [7] | 7.90% | 7.90% | |
Telstra Facility | Foxtel | Australian BBSY | ||||
Debt and Financial Instruments [Line Items] | ||||
Interest rate margin | 7.75% | |||
US Private Placement 2012 - USD Portion -Tranche 2 | Foxtel | ||||
Debt and Financial Instruments [Line Items] | ||||
Total borrowings | [8] | $ 197 | 200 | |
Interest rate | [8] | 4.27% | 4.27% | |
US Private Placement 2012 - USD Portion -Tranche 3 | Foxtel | ||||
Debt and Financial Instruments [Line Items] | ||||
Total borrowings | [8] | $ 148 | 150 | |
Interest rate | [8] | 4.42% | 4.42% | |
US Private Placement 2012 - AUD Portion | Foxtel | ||||
Debt and Financial Instruments [Line Items] | ||||
Total borrowings | $ 74 | 73 | ||
Interest rate | 7.04% | 7.04% | ||
Credit Facility 2018 | REA Group | ||||
Debt and Financial Instruments [Line Items] | ||||
Total borrowings | [9] | $ 49 | 48 | |
Interest rate | [9] | 0.99% | 0.99% | |
Credit Facility 2018 | REA Group | Australian BBSY | Minimum | ||||
Debt and Financial Instruments [Line Items] | ||||
Interest rate margin | 0.85% | |||
Credit Facility 2018 | REA Group | Australian BBSY | Maximum | ||||
Debt and Financial Instruments [Line Items] | ||||
Interest rate margin | 2.75% | |||
Credit Facility 2020 | REA Group | ||||
Debt and Financial Instruments [Line Items] | ||||
Total borrowings | [10] | $ 0 | $ 0 | |
Interest rate | [10] | 2.14% | 2.14% | |
Credit Facility 2020 | REA Group | Australian BBSY | Minimum | ||||
Debt and Financial Instruments [Line Items] | ||||
Interest rate margin | 2.00% | |||
Credit Facility 2020 | REA Group | Australian BBSY | Maximum | ||||
Debt and Financial Instruments [Line Items] | ||||
Interest rate margin | 2.75% | |||
[1] | The Company’s outstanding borrowings as of September 30, 2020 were incurred by certain subsidiaries of NXE Australia Pty Limited (“Foxtel” and together with such subsidiaries, the “Foxtel Debt Group”) and by REA Group and certain of its subsidiaries. Foxtel and REA Group are consolidated but non wholly-owned subsidiaries of News Corp. These borrowings are only guaranteed by Foxtel and REA Group and certain of their respective subsidiaries, as applicable, and are non-recourse to News Corp. | |||
[2] | The Company classifies the current portion of long term debt as non-current liabilities on the Balance Sheets when it has the intent and ability to refinance the obligation on a long-term basis, in accordance with ASC 470-50 “Debt.” $28 million relates to the current portion of finance lease liabilities. | |||
[3] | As of September 30, 2020, the Foxtel Debt Group had undrawn commitments of A$95 million under these facilities for which it pays a commitment fee of 45% of the applicable margin. | |||
[4] | Borrowings under these facilities bear interest at a floating rate of the Australian BBSY plus an applicable margin of between 2.00% and 3.75% per annum depending on the Foxtel Debt Group’s (defined below) net leverage ratio. | |||
[5] | Borrowings under this facility bear interest at a floating rate of the Australian BBSY plus a margin of between 0.85% and 2.00% depending on REA Group’s net leverage ratio. | |||
[6] | Borrowings under this facility bear interest at a fixed rate of 6.25% per annum. | |||
[7] | Borrowings under this facility bear interest at a variable rate of Australian BBSY plus a margin of 7.75%. The Company excludes borrowings under this facility from the Statements of Cash Flows as they are non-cash. | |||
[8] | The carrying values of the borrowings include any fair value adjustments related to the Company’s fair value hedges. See Note 7—Financial Instruments and Fair Value Measurements. | |||
[9] | Borrowings under this facility bear interest at a floating rate of the Australian BBSY plus a margin of between 0.85% and 2.75% depending on REA Group’s net leverage ratio. | |||
[10] | Borrowings under this facility bear interest at a floating rate of the Australian BBSY plus a margin of 2.00% or 2.75% depending on REA Group’s net leverage ratio. |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) $ in Millions, $ in Millions | Jan. 01, 2021 | Sep. 30, 2020USD ($)extension | Sep. 30, 2020AUD ($)extension | Jun. 30, 2020USD ($) | |
Debt Instrument [Line Items] | |||||
Long-term Debt | [1] | $ 1,284 | $ 1,259 | ||
REA Group | Maximum | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Operating income leverage ratio | 3.50 | ||||
Overdraft Facility 2020 | |||||
Debt Instrument [Line Items] | |||||
Borrowings discount rate | 4.22% | ||||
Overdraft Facility 2020 | REA Group | |||||
Debt Instrument [Line Items] | |||||
Line of credit maximum borrowing capacity | $ 20 | ||||
Annual facility fee | 0.15% | ||||
Long-term Debt | $ 0 | ||||
2019 Credit Agreement | Unsecured Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit maximum borrowing capacity | $ 750 | ||||
Number of extension options | extension | 2 | 2 | |||
Extension term | 1 year | ||||
Credit sublimit under credit facility | $ 100 | ||||
Long-term Debt | 0 | ||||
2019 Credit Agreement | Revised Line Of Credit Facility | Unsecured Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit maximum borrowing capacity | $ 1,000 | ||||
Unused capacity commitment fee percentage | 0.20% | ||||
2019 Credit Agreement | Eurodollar | Revised Line Of Credit Facility | Unsecured Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin | 1.375% | ||||
2019 Credit Agreement | Base Rate | Revised Line Of Credit Facility | Unsecured Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin | 0.375% | ||||
[1] | The Company’s outstanding borrowings as of September 30, 2020 were incurred by certain subsidiaries of NXE Australia Pty Limited (“Foxtel” and together with such subsidiaries, the “Foxtel Debt Group”) and by REA Group and certain of its subsidiaries. Foxtel and REA Group are consolidated but non wholly-owned subsidiaries of News Corp. These borrowings are only guaranteed by Foxtel and REA Group and certain of their respective subsidiaries, as applicable, and are non-recourse to News Corp. |
Equity - Summary of Changes in
Equity - Summary of Changes in Equity (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Class of Stock [Line Items] | ||
Beginning balance | $ 8,389 | $ 10,311 |
Net income (loss) | 47 | (211) |
Other comprehensive income | 113 | (188) |
Dividends | (79) | (81) |
Other | (16) | (11) |
Ending balance | $ 8,454 | 9,829 |
Cumulative Effect, Period of Adoption, Adjustment | ||
Class of Stock [Line Items] | ||
Beginning balance | 9 | |
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Beginning balance, shares | 388,922,752 | |
Ending balance, shares | 390,954,837 | |
Class B Common Stock | ||
Class of Stock [Line Items] | ||
Beginning balance, shares | 199,630,240 | |
Ending balance, shares | 199,630,240 | |
Common Stock | Class A Common Stock | ||
Class of Stock [Line Items] | ||
Beginning balance | $ 4 | $ 4 |
Beginning balance, shares | 389,000,000 | 386,000,000 |
Other, Shares | 2,000,000 | 2,000,000 |
Ending balance | $ 4 | $ 4 |
Ending balance, shares | 391,000,000 | 388,000,000 |
Common Stock | Class B Common Stock | ||
Class of Stock [Line Items] | ||
Beginning balance | $ 2 | $ 2 |
Beginning balance, shares | 200,000,000 | 200,000,000 |
Ending balance | $ 2 | $ 2 |
Ending balance, shares | 200,000,000 | 200,000,000 |
Additional Paid-in Capital | ||
Class of Stock [Line Items] | ||
Beginning balance | $ 12,148 | $ 12,243 |
Dividends | (59) | (59) |
Other | (14) | (10) |
Ending balance | 12,075 | 12,174 |
Accumulated Deficit | ||
Class of Stock [Line Items] | ||
Beginning balance | (3,241) | (1,979) |
Net income (loss) | 34 | (227) |
Ending balance | (3,207) | (2,200) |
Accumulated Deficit | Cumulative Effect, Period of Adoption, Adjustment | ||
Class of Stock [Line Items] | ||
Beginning balance | 6 | |
Accumulated Other Comprehensive Loss | ||
Class of Stock [Line Items] | ||
Beginning balance | (1,331) | (1,126) |
Other comprehensive income | 96 | (143) |
Ending balance | (1,235) | (1,266) |
Accumulated Other Comprehensive Loss | Cumulative Effect, Period of Adoption, Adjustment | ||
Class of Stock [Line Items] | ||
Beginning balance | 3 | |
Total News Corp Equity | ||
Class of Stock [Line Items] | ||
Beginning balance | 7,582 | 9,144 |
Net income (loss) | 34 | (227) |
Other comprehensive income | 96 | (143) |
Dividends | (59) | (59) |
Other | (14) | (10) |
Ending balance | 7,639 | 8,714 |
Total News Corp Equity | Cumulative Effect, Period of Adoption, Adjustment | ||
Class of Stock [Line Items] | ||
Beginning balance | 9 | |
Non-controlling Interests | ||
Class of Stock [Line Items] | ||
Beginning balance | 807 | 1,167 |
Net income (loss) | 13 | 16 |
Other comprehensive income | 17 | (45) |
Dividends | (20) | (22) |
Other | (2) | (1) |
Ending balance | $ 815 | $ 1,115 |
Equity - Additional Information
Equity - Additional Information (Detail) - $ / shares | 1 Months Ended | 3 Months Ended | |
Aug. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Shares repurchased during period (in shares) | 0 | 0 | |
Cash dividends declared per share of common stock (in usd per share) | $ 0.10 | ||
Class B Common Stock | |||
Class of Stock [Line Items] | |||
Shares repurchased during period (in shares) | 0 | 0 | |
Cash dividends declared per share of common stock (in usd per share) | $ 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) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 |
Assets: | ||
Equity securities | $ 197 | $ 177 |
Fair Value, Recurring | ||
Assets: | ||
Equity securities | 197 | 177 |
Total assets | 305 | 299 |
Liabilities: | ||
Total liabilities | 36 | 37 |
Fair Value, Recurring | Foreign currency derivatives | Cash Flow Hedging | ||
Liabilities: | ||
Derivative liabilities | 3 | 3 |
Fair Value, Recurring | Cross currency interest rate derivatives | Fair Value Hedging | ||
Assets: | ||
Derivative assets | 21 | 24 |
Fair Value, Recurring | Cross currency interest rate derivatives | Cash Flow Hedging | ||
Assets: | ||
Derivative assets | 87 | 98 |
Liabilities: | ||
Derivative liabilities | 18 | 18 |
Fair Value, Recurring | Interest rate derivatives | Cash Flow Hedging | ||
Liabilities: | ||
Derivative liabilities | 15 | 16 |
Fair Value, Recurring | Level 1 | ||
Assets: | ||
Equity securities | 68 | 54 |
Total assets | 68 | 54 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Fair Value, Recurring | Level 1 | Foreign currency derivatives | Cash Flow Hedging | ||
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 1 | Cross currency interest rate derivatives | Fair Value Hedging | ||
Assets: | ||
Derivative assets | 0 | 0 |
Fair Value, Recurring | Level 1 | Cross currency interest rate derivatives | Cash Flow Hedging | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 1 | Interest rate derivatives | Cash Flow Hedging | ||
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 2 | ||
Assets: | ||
Equity securities | 0 | 0 |
Total assets | 108 | 122 |
Liabilities: | ||
Total liabilities | 36 | 37 |
Fair Value, Recurring | Level 2 | Foreign currency derivatives | Cash Flow Hedging | ||
Liabilities: | ||
Derivative liabilities | 3 | 3 |
Fair Value, Recurring | Level 2 | Cross currency interest rate derivatives | Fair Value Hedging | ||
Assets: | ||
Derivative assets | 21 | 24 |
Fair Value, Recurring | Level 2 | Cross currency interest rate derivatives | Cash Flow Hedging | ||
Assets: | ||
Derivative assets | 87 | 98 |
Liabilities: | ||
Derivative liabilities | 18 | 18 |
Fair Value, Recurring | Level 2 | Interest rate derivatives | Cash Flow Hedging | ||
Liabilities: | ||
Derivative liabilities | 15 | 16 |
Fair Value, Recurring | Level 3 | ||
Assets: | ||
Equity securities | 129 | 123 |
Total assets | 129 | 123 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Fair Value, Recurring | Level 3 | Foreign currency derivatives | Cash Flow Hedging | ||
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 3 | Cross currency interest rate derivatives | Fair Value Hedging | ||
Assets: | ||
Derivative assets | 0 | 0 |
Fair Value, Recurring | Level 3 | Cross currency interest rate derivatives | Cash Flow Hedging | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 3 | Interest rate derivatives | Cash Flow Hedging | ||
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 - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance - beginning of period | $ 123 | $ 113 |
Additions | 6 | 0 |
Foreign exchange and other | 0 | (1) |
Balance - end of period | $ 129 | $ 112 |
Financial Instruments and Fai_5
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 | Sep. 30, 2020 | Jun. 30, 2020 |
Foreign currency derivatives | Cash Flow Hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, reported under other current liabilities | $ (3) | $ (3) |
Cross currency interest rate derivatives | Cash Flow Hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, reported under other non-current assets | 87 | 98 |
Derivatives, reported under other non-current liabilities | (18) | (18) |
Cross currency interest rate derivatives | Fair Value Hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, reported under other non-current assets | 21 | 24 |
Interest rate derivatives | Cash Flow Hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, reported under other non-current liabilities | $ (15) | $ (16) |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements - Summary of Derivative Instruments Designated as Cash Flow Hedges (Detail) - Cash Flow Hedging - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (loss) recognized in Accumulated Other Comprehensive Loss | $ (15) | |
(Gain) loss reclassified from Accumulated Other Comprehensive Loss | 14 | $ (17) |
Interest (expense) income, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (loss) recognized in Accumulated Other Comprehensive Loss | 0 | |
Foreign currency derivatives | Operating expenses | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (loss) recognized in Accumulated Other Comprehensive Loss | 0 | (1) |
(Gain) loss reclassified from Accumulated Other Comprehensive Loss | 0 | (2) |
Cross currency interest rate derivatives | Interest (expense) income, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (loss) recognized in Accumulated Other Comprehensive Loss | (15) | 5 |
(Gain) loss reclassified from Accumulated Other Comprehensive Loss | 13 | (9) |
Interest rate derivatives | Interest (expense) income, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (loss) recognized in Accumulated Other Comprehensive Loss | 0 | (4) |
(Gain) loss reclassified from Accumulated Other Comprehensive Loss | $ 1 | $ (6) |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Measurements - Schedule of Fair Value Hedging Relationship By Balance Sheet (Detail) - Borrowings - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 |
Carrying amount of hedged item | $ 70 | $ 71 |
Cumulative hedging adjustments included in the carrying amount | $ 5 | $ 6 |
Financial Instruments and Fai_8
Financial Instruments and Fair Value Measurements - Additional Information (Detail) $ in Millions, $ in Millions | Jul. 01, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020AUD ($) | Jun. 30, 2020USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Goodwill carrying value | $ 3,997 | $ 3,951 | |||
Foreign Exchange Contract | |||||
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 | 2 | ||||
Cross currency interest rate derivatives | |||||
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 | 2 | ||||
Interest Rate Swap | |||||
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 | ||||
Cash Flow Hedging | Accounting Standards Update 2017-12 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | $ 5 | ||||
Cash Flow Hedging | Foreign Exchange Contract | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Notional value of derivative | 29 | ||||
Cash Flow Hedging | Cross currency interest rate derivatives | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Notional value of derivative | 280 | ||||
Cash Flow Hedging | Interest Rate Contract | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Notional value of derivative | $ 300 | ||||
Fair Value Hedging | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Notional value of derivative | 70 | ||||
Fair Value Hedging | Accounting Standards Update 2017-12 | |||||
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 | 0 | $ 0 | |||
Adjustments increased the carrying value of long-term debt | $ 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 | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ 47 | $ (211) |
Less: Net income attributable to noncontrolling interests | (13) | (16) |
Net income (loss) attributable to News Corporation stockholders | $ 34 | $ (227) |
Weighted-average number of shares of common stock outstanding - basic (in shares) | 589.5 | 586.7 |
Dilutive effect of equity awards (in shares) | 1.3 | 0 |
Weighted-average number of shares of common stock outstanding - diluted | 590.8 | 586.7 |
Net loss attributable to News Corporation stockholders per share - basic and diluted (in dollars per share) | $ 0.06 | $ (0.39) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | |
Loss Contingencies [Line Items] | |||
Other current assets | $ 453 | $ 393 | |
U.K. Newspaper Matters | |||
Loss Contingencies [Line Items] | |||
Selling, general and administrative expenses, net | 2 | $ 2 | |
Litigation liability accrued | 54 | ||
U.K. Newspaper Matters Indemnification | 21st Century Fox | |||
Loss Contingencies [Line Items] | |||
Other current assets | $ 61 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax (expense) benefit | $ (25) | $ 21 |
Income before income tax benefit (loss) | 72 | (232) |
Gross income tax paid | 23 | 27 |
Income tax refunds | $ 8 | $ 3 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Sep. 30, 2020CountryItemBrandSegment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | Segment | 6 |
Digital Real Estate Services | Move | |
Segment Reporting Information [Line Items] | |
Company ownership percentage | 80.00% |
Digital Real Estate Services | Move | REA Group | |
Segment Reporting Information [Line Items] | |
Ownership interest held by minority interest | 20.00% |
Digital Real Estate Services | REA Group | |
Segment Reporting Information [Line Items] | |
Company ownership percentage | 61.60% |
Book Publishing | Minimum | |
Segment Reporting Information [Line Items] | |
Number of countries | Country | 17 |
Number of branded publishing imprints | Brand | 120 |
Subscription Video Services | Foxtel | |
Segment Reporting Information [Line Items] | |
Company ownership percentage | 65.00% |
Subscription Video Services | Foxtel | Telstra | |
Segment Reporting Information [Line Items] | |
Ownership interest held by minority interest | 35.00% |
Subscription Video Services | Minimum | Foxtel | |
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 | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 2,117 | $ 2,340 |
Depreciation and amortization | (164) | (162) |
Impairment and restructuring charges | (40) | (297) |
Equity losses of affiliates | (1) | (2) |
Interest (expense) income, net | (8) | 4 |
Other, net | 17 | 4 |
Income (loss) before income tax (expense) benefit | 72 | (232) |
Income tax (expense) benefit | (25) | 21 |
Net income (loss) | 47 | (211) |
Digital Real Estate Services | ||
Segment Reporting Information [Line Items] | ||
Revenues | 290 | 272 |
Total Segment EBITDA | 119 | 82 |
Subscription Video Services | ||
Segment Reporting Information [Line Items] | ||
Revenues | 496 | 514 |
Total Segment EBITDA | 78 | 81 |
Dow Jones | ||
Segment Reporting Information [Line Items] | ||
Revenues | 386 | 382 |
Total Segment EBITDA | 72 | 49 |
Book Publishing | ||
Segment Reporting Information [Line Items] | ||
Revenues | 458 | 405 |
Total Segment EBITDA | 71 | 49 |
News Media | ||
Segment Reporting Information [Line Items] | ||
Revenues | 487 | 767 |
Total Segment EBITDA | (22) | 7 |
Other | ||
Segment Reporting Information [Line Items] | ||
Total Segment EBITDA | $ (50) | $ (47) |
Segment Information - Reconci_2
Segment Information - Reconciliation of Assets from Segments to Consolidated (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Investments | $ 314 | $ 297 |
Total assets | 14,400 | 14,261 |
Digital Real Estate Services | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,335 | 2,322 |
Subscription Video Services | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 3,513 | 3,459 |
Dow Jones | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,435 | 2,480 |
Book Publishing | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,233 | 2,212 |
News Media | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,075 | 1,994 |
Other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 1,495 | $ 1,497 |
Segment Information - Reconci_3
Segment Information - Reconciliation of Goodwill and Intangible Assets from Segments to Consolidated (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 |
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | $ 5,866 | $ 5,815 |
Digital Real Estate Services | ||
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | 1,567 | 1,555 |
Subscription Video Services | ||
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | 1,535 | 1,513 |
Dow Jones | ||
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | 1,719 | 1,722 |
Book Publishing | ||
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | 760 | 748 |
News Media | ||
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | $ 285 | $ 277 |
Additional Financial Informat_3
Additional Financial Information - Components of Receivables, Net (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 |
Receivables [Abstract] | ||
Receivables | $ 1,315 | $ 1,276 |
Allowance for doubtful accounts | (75) | (73) |
Receivables, net | $ 1,240 | $ 1,203 |
Additional Financial Informat_4
Additional Financial Information - Components of Other Non-Current Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2020 | Jun. 30, 2020 | |
Other Income and Expenses [Line Items] | ||
Royalty advances to authors | $ 346 | $ 348 |
Retirement benefit assets | 108 | 94 |
Inventory | 282 | 133 |
News America Marketing deferred consideration | 117 | 111 |
Other | 322 | 353 |
Total Other non-current assets | $ 1,175 | 1,039 |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201902Member | |
Inventory, net | $ (203) | $ (348) |
Revision of Prior Period, Accounting Standards Update, Adjustment | Accounting Standards Update 2019-02 | ||
Other Income and Expenses [Line Items] | ||
Total Other non-current assets | 151 | |
Inventory, net | $ 151 |
Additional Financial Informat_5
Additional Financial Information - Components of Other Current Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Other current liabilities | $ 869 | $ 838 |
Other Current Liabilities | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Royalties and commissions payable | 198 | 169 |
Current operating lease liabilities | 124 | 131 |
Allowance for sales returns | 175 | 174 |
Current tax payable | 66 | 50 |
Other | 306 | 314 |
Total Other current liabilities | $ 869 | $ 838 |
Additional Financial Informat_6
Additional Financial Information - Components of Other, Net Included in Statement of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Other Income and Expenses [Line Items] | ||
Remeasurement of equity securities | $ 9 | $ 1 |
Total Other, net | 17 | 4 |
Nonoperating Income (Expense) | ||
Other Income and Expenses [Line Items] | ||
Remeasurement of equity securities | 9 | 1 |
Dividends received from equity security investments | 2 | 0 |
Other | 6 | 3 |
Total Other, net | $ 17 | $ 4 |
Additional Financial Informat_7
Additional Financial Information - Summary of Supplemental Cash Flow Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | ||
Cash paid for interest | $ 16 | $ 16 |
Cash paid for taxes | $ 23 | $ 27 |
Subsequent Events- Additional I
Subsequent Events- Additional Information (Detail) - Elara [Member] $ in Millions | 1 Months Ended | |
Oct. 31, 2020USD ($)board_member | Sep. 30, 2020 | |
REA Group | ||
Subsequent Event [Line Items] | ||
Current ownership interest | 13.50% | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Number of board of directors | board_member | 9 | |
Cash payments to acquire additional interests | $ 34.5 | |
Increase in equity interest | 38.90% | |
Subsequent Event | Minimum | ||
Subsequent Event [Line Items] | ||
Ownership interest after acquisition | 86.10% | |
Subsequent Event | Maximum | ||
Subsequent Event [Line Items] | ||
Ownership interest after acquisition | 100.00% | |
Subsequent Event | REA Group | ||
Subsequent Event [Line Items] | ||
Number of board seats held | board_member | 5 | |
Cash payments to acquire additional interests | $ 34.5 | |
Subsequent Event | REA Group | Minimum | ||
Subsequent Event [Line Items] | ||
Ownership interest after acquisition | 47.20% | |
Consideration transferred | $ 50 | |
Subsequent Event | REA Group | Maximum | ||
Subsequent Event [Line Items] | ||
Ownership interest after acquisition | 61.10% | |
Consideration transferred | $ 70 |