Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2018 | May 04, 2018 | |
Document And Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | TWENTY-FIRST CENTURY FOX, INC. | |
Entity Central Index Key | 1,308,161 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Class A Common Stock | ||
Document And Entity Information [Line Items] | ||
Trading Symbol | FOXA | |
Entity Common Stock, Shares Outstanding | 1,054,032,541 | |
Class B Common Stock | ||
Document And Entity Information [Line Items] | ||
Trading Symbol | FOX | |
Entity Common Stock, Shares Outstanding | 798,520,953 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Income Statement [Abstract] | |||||
Revenues | $ 7,420 | $ 7,564 | $ 22,459 | $ 21,752 | |
Operating expenses | (4,581) | (4,824) | (14,722) | (13,651) | |
Selling, general and administrative | (959) | (817) | (2,671) | (2,424) | |
Depreciation and amortization | (145) | (140) | (429) | (410) | |
Impairment and restructuring charges | (34) | (37) | (58) | (213) | |
Equity losses of affiliates | (86) | (51) | (59) | (57) | |
Interest expense, net | (311) | (310) | (936) | (909) | |
Interest income | 10 | 9 | 29 | 27 | |
Other, net | 17 | (142) | (284) | (241) | |
Income from continuing operations before income tax (expense) benefit | 1,331 | 1,252 | 3,329 | 3,874 | |
Income tax (expense) benefit | (370) | (370) | 457 | (1,161) | |
Income from continuing operations | 961 | 882 | 3,786 | 2,713 | |
Loss from discontinued operations, net of tax | (18) | (12) | (7) | (19) | |
Net income | 943 | 870 | 3,779 | 2,694 | |
Less: Net income attributable to noncontrolling interests | [1] | (85) | (71) | (235) | (218) |
Net income attributable to Twenty-First Century Fox, Inc. stockholders | 858 | 799 | 3,544 | 2,476 | |
EARNINGS PER SHARE DATA | |||||
Income from continuing operations attributable to Twenty-First Century Fox, Inc. stockholders - basic and diluted | $ 876 | $ 811 | $ 3,551 | $ 2,495 | |
Weighted average shares | |||||
Basic | 1,853 | 1,851 | 1,852 | 1,855 | |
Diluted | 1,858 | 1,853 | 1,855 | 1,857 | |
Income from continuing operations attributable to Twenty-First Century Fox, Inc. stockholders per share: | |||||
Basic | $ 0.47 | $ 0.44 | $ 1.92 | $ 1.35 | |
Diluted | 0.47 | 0.44 | 1.91 | 1.34 | |
Net income attributable to Twenty-First Century Fox, Inc. stockholders per share - basic and diluted | $ 0.46 | $ 0.43 | $ 1.91 | $ 1.33 | |
[1] | Net income attributable to noncontrolling interests includes $51 million and $43 million for the three months ended March 31, 2018 and 2017, respectively, and $128 million and $113 million for the nine months ended March 31, 2018 and 2017, respectively, relating to redeemable noncontrolling interests. |
UNAUDITED CONSOLIDATED STATEME3
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net income | $ 943 | $ 870 | $ 3,779 | $ 2,694 | |
Other comprehensive (loss) income, net of tax | |||||
Foreign currency translation adjustments | 21 | 111 | 100 | (40) | |
Cash flow hedges | 3 | 6 | 2 | 19 | |
Unrealized holding (losses) gains on securities | (94) | 0 | 85 | 0 | |
Benefit plan adjustments | 4 | 74 | 71 | 117 | |
Equity method investments | 25 | 0 | 83 | (163) | |
Other comprehensive (loss) income, net of tax | (41) | 191 | 341 | (67) | |
Comprehensive income | 902 | 1,061 | 4,120 | 2,627 | |
Less: Net income attributable to noncontrolling interests | [1] | (85) | (71) | (235) | (218) |
Less: Other comprehensive (income) loss attributable to noncontrolling interests | (9) | (4) | (22) | 16 | |
Comprehensive income attributable to Twenty-First Century Fox, Inc. stockholders | $ 808 | $ 986 | $ 3,863 | $ 2,425 | |
[1] | Net income attributable to noncontrolling interests includes $51 million and $43 million for the three months ended March 31, 2018 and 2017, respectively, and $128 million and $113 million for the nine months ended March 31, 2018 and 2017, respectively, relating to redeemable noncontrolling interests. |
UNAUDITED CONSOLIDATED STATEME4
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income attributable to redeemable noncontrolling interests | $ 51 | $ 43 | $ 128 | $ 113 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2018 | Jun. 30, 2017 | |
Current assets | |||
Cash and cash equivalents | $ 7,372 | $ 6,163 | |
Receivables, net | 6,905 | 6,477 | |
Inventories, net | [1] | 3,645 | 3,101 |
Other | 739 | 545 | |
Total current assets | 18,661 | 16,286 | |
Non-current assets | |||
Receivables, net | 736 | 543 | |
Investments | 4,256 | 3,902 | |
Inventories, net | 8,002 | 7,452 | |
Property, plant and equipment, net | 1,861 | 1,781 | |
Intangible assets, net | 6,174 | 6,574 | |
Goodwill | 12,794 | 12,792 | |
Other non-current assets | 1,494 | 1,394 | |
Total assets | 53,978 | 50,724 | |
Current liabilities | |||
Borrowings | 1,538 | 457 | |
Accounts payable, accrued expenses and other current liabilities | 3,979 | 3,451 | |
Participations, residuals and royalties payable | 1,682 | 1,657 | |
Program rights payable | 1,183 | 1,093 | |
Deferred revenue | 717 | 580 | |
Total current liabilities | 9,099 | 7,238 | |
Non-current liabilities | |||
Borrowings | 18,459 | 19,456 | |
Other liabilities | 3,798 | 3,616 | |
Deferred income taxes | 1,638 | 2,782 | |
Redeemable noncontrolling interests | 761 | 694 | |
Commitments and contingencies | |||
Equity | |||
Additional paid-in capital | 12,530 | 12,406 | |
Retained earnings | 8,121 | 5,315 | |
Accumulated other comprehensive loss | (1,699) | (2,018) | |
Total Twenty-First Century Fox, Inc. stockholders' equity | 18,971 | 15,722 | |
Noncontrolling interests | 1,252 | 1,216 | |
Total equity | 20,223 | 16,938 | |
Total liabilities and equity | 53,978 | 50,724 | |
Class A Common Stock | |||
Equity | |||
Common stock | [2] | 11 | 11 |
Class B Common Stock | |||
Equity | |||
Common stock | [3] | $ 8 | $ 8 |
[1] | Current portion of inventories, net as of March 31, 2018 and June 30, 2017 was comprised of programming rights ($3,591 million and $3,037 million, respectively), DVDs, Blu-rays and other merchandise. | ||
[2] | Class A common stock, $0.01 par value per share, 6,000,000,000 shares authorized, 1,054,015,230 shares and 1,052,536,963 shares issued and outstanding, net of 123,687,371 treasury shares at par as of March 31, 2018 and June 30, 2017, respectively. | ||
[3] | Class B common stock, $0.01 par value per share, 3,000,000,000 shares authorized, 798,520,953 shares issued and outstanding, net of 356,993,807 treasury shares at par as of March 31, 2018 and June 30, 2017. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2018 | Jun. 30, 2017 |
Class A Common Stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 6,000,000,000 | 6,000,000,000 |
Common stock, shares issued and outstanding net of treasury stock | 1,054,015,230 | 1,052,536,963 |
Common stock, treasury shares | 123,687,371 | 123,687,371 |
Class B Common Stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 3,000,000,000 | 3,000,000,000 |
Common stock, shares issued and outstanding net of treasury stock | 798,520,953 | 798,520,953 |
Common stock, treasury shares | 356,993,807 | 356,993,807 |
UNAUDITED CONSOLIDATED STATEME7
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
OPERATING ACTIVITIES | ||
Net income | $ 3,779 | $ 2,694 |
Less: Loss from discontinued operations, net of tax | (7) | (19) |
Income from continuing operations | 3,786 | 2,713 |
Adjustments to reconcile income from continuing operations to cash provided by operating activities | ||
Depreciation and amortization | 429 | 410 |
Amortization of cable distribution investments | 57 | 46 |
Impairment and restructuring charges | 58 | 213 |
Equity-based compensation | 166 | 97 |
Equity losses of affiliates | 59 | 57 |
Cash distributions received from affiliates | 110 | 182 |
Other, net | 284 | 241 |
Deferred income taxes and other taxes | (1,276) | (70) |
Change in operating assets and liabilities, net of acquisitions and dispositions | ||
Receivables | (599) | (1,146) |
Inventories net of program rights payable | (1,003) | (966) |
Accounts payable and accrued expenses | 360 | 286 |
Other changes, net | (229) | 364 |
Net cash provided by operating activities from continuing operations | 2,202 | 2,427 |
INVESTING ACTIVITIES | ||
Property, plant and equipment | (343) | (202) |
Investments in equity affiliates | (325) | (18) |
Proceeds from dispositions, net | 365 | 0 |
Other investments | (117) | (148) |
Net cash used in investing activities from continuing operations | (420) | (368) |
FINANCING ACTIVITIES | ||
Borrowings | 1,550 | 879 |
Repayment of borrowings | (1,479) | (546) |
Repurchase of shares | 0 | (619) |
Dividends paid and distributions | (579) | (522) |
Other financing activities, net | (69) | (72) |
Net cash used in financing activities from continuing operations | (577) | (880) |
Net decrease in cash and cash equivalents from discontinued operations | (42) | (21) |
Net increase in cash and cash equivalents | 1,163 | 1,158 |
Cash and cash equivalents, beginning of year | 6,163 | 4,424 |
Exchange movement on cash balances | 46 | (10) |
Cash and cash equivalents, end of period | $ 7,372 | $ 5,572 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1. BASIS OF PRESENTATION Twenty-First Century Fox, Inc., a Delaware corporation, and its subsidiaries (together, “Twenty-First Century Fox” or the “Company”) is a diversified global media and entertainment company, which currently manages and reports its businesses in the following four segments: Cable Network Programming, Television, Filmed Entertainment and Other, Corporate and Eliminations. The accompanying Unaudited Consolidated Financial Statements of Twenty-First Century Fox have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments consisting only of normal recurring adjustments necessary for a fair presentation have been reflected in these Unaudited Consolidated Financial Statements. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2018. These interim Unaudited Consolidated Financial Statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2017 as filed with the Securities and Exchange Commission (the “SEC”) on August 14, 2017 (the “2017 Form 10-K”). The Unaudited Consolidated Financial Statements include the accounts of Twenty-First Century Fox. All significant intercompany accounts and transactions have been eliminated in consolidation, including the intercompany portion of transactions with equity method investees Investments in and advances to entities or joint ventures in which the Company has significant influence, but less than a controlling voting interest, are accounted for using the equity method. Investments in which the Company has no significant influence are designated as available-for-sale investments if readily determinable market values are available. If an investment’s fair value is not readily determinable, the Company accounts for its investment at cost. The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts that are reported in the consolidated financial statements and accompanying disclosures. Actual results may differ from those estimates. Certain fiscal 2017 amounts have been reclassified to conform to the fiscal 2018 presentation. Unless indicated otherwise, the information in the notes to the Unaudited Consolidated Financial Statements relates to the Company’s continuing operations. The Company has reclassified certain fiscal 2017 amounts for development and certain other costs from Selling, general and administrative to Operating expenses within the Consolidated Statement of Operations to conform to the fiscal 2018 presentation. These reclassifications did not affect previously reported Revenue, Income from continuing operations before income tax (expense) benefit or Net income in the Consolidated Statement of Operations. Recently Adopted and Recently Issued Accounting Guidance and U.S. Tax Reform Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). The amendments in ASU 2016-09 simplify various aspects related to how share-based payments are accounted for and presented in the financial statements, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. On July 1, 2017, the Company adopted ASU 2016-09. In accordance with ASU 2016-09, the Company will prospectively recognize all excess tax benefits and tax deficiencies in Income tax (expense) benefit in the Statements of Operations. In the statement of cash flows, all excess tax benefits are presented retrospectively in Net cash provided by operating activities from continuing operations. In addition, the Company retrospectively adopted the guidance that requires cash paid by the Company when directly withholding shares for tax withholding purposes to be classified as a financing activity in the statement of cash flows. The adoption of ASU 2016-09 resulted in an increase in Net cash provided by operating activities from continuing operations and a corresponding increase in Net cash used in financing activities from continuing operations in the Statement of Cash Flows for fiscal 2017. The other aspects of ASU 2016-09 did not have a material effect on the Company’s consolidated financial statements. On July 1, 2017, the Company early adopted ASU 2017-07, “Compensation–Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”). ASU 2017-07 requires an employer to report the service cost component of net benefit cost in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. ASU 2017-07 did not have a material effect on the Company’s consolidated financial statements. Issued In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, ASU 2014-09 requires additional disclosure around the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 will be effective for the Company for annual and interim reporting periods beginning July 1, 2018. The Company expects to apply ASU 2014-09 on a modified retrospective basis with the cumulative effect, if any, of initially applying the new guidance recognized at the date of initial application as an adjustment to opening retained earnings. The Company has substantially completed its review of contracts for each of the Company’s significant revenue streams and does not expect a material impact on its consolidated financial statements as a result of its adoption of ASU 2014-09. The Company expects that the new standard will impact the timing of revenue recognition for renewals or extensions of existing licensing agreements for intellectual property, which upon adoption will be recognized as revenue once the customer can begin to use and benefit from the license rather than when the agreement is extended or renewed, under historical GAAP. The new standard will require the Company’s Filmed Entertainment segment to recognize revenues from certain television license deals earlier as opposed to recognizing those license fees over the term of the licenses. Conversely, revenues from certain of the Filmed Entertainment segment’s trademark licensing deals will be recognized over the license terms as opposed to recognition at inception as under historical GAAP. In addition, the Company is implementing appropriate changes to the Company’s processes, systems and controls to support the recognition and disclosure requirements under the new standard. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”). The objective of ASU 2017-12 is to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. In addition, ASU 2017-12 simplifies the assessment of hedge effectiveness. ASU 2017-12 is effective for the Company for annual and interim reporting periods beginning July 1, 2019. Early adoption is permitted in an interim period. The Company is currently evaluating the impact ASU 2017-12 will have on its consolidated financial statements. U.S. Tax Reform On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act significantly revises the future ongoing U.S. corporate income tax by, among other things, lowering U.S. corporate income tax rates and implementing a territorial tax system. Since the Company has a June 30 fiscal year-end, the lower corporate income tax rate will be phased in, resulting in a U.S. statutory federal rate of approximately 28% for the Company’s fiscal year ending June 30, 2018, and 21% for subsequent fiscal years. As part of the transition to the new territorial tax system, the Tax Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign entities. As of March 31, 2018, the Company has not completed its analysis of the accounting for all the tax effects of the Tax Act. For the nine months ended March 31, 2018, the Company recorded a provisional income tax benefit of $1.3 billion to adjust its net deferred tax liability position in accordance with the Tax Act. The net deferred tax liability represents future tax obligations. Among the Company’s more significant net deferred tax liabilities are basis differences and amortization, and sports rights contracts. The final amount of the adjustment to the net deferred tax liability could be revised based on changes in interpretations of the Tax Act and any updates or changes to estimates based on additional information the Company obtains or analyzes. For the three months ended March 31, 2018, there were no changes to the provisional amount previously recorded. The Company has not recorded a liability for the transition tax to a territorial tax system. The Company is continuing to gather and analyze information to determine the deemed unremitted earnings subject to the transition tax, some of which was not previously needed or not yet accumulated, and the related U.S. tax impacts. The Company currently anticipates recording a provisional amount for the transition tax by the end of the current fiscal year. In February 2018, the FASB issued ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”). The objective of ASU 2018-02 is to eliminate the stranded tax effects resulting from the Tax Act and to improve the usefulness of information reported to financial statement users. ASU 2018-02 is effective for the Company for annual and interim reporting periods beginning July 1, 2019. Early adoption is permitted, including adoption in any interim period. The Company is currently evaluating the impact ASU 2018-02 will have on its consolidated financial statements. In March 2018, the FASB issued ASU 2018-05, “Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118” (“ASU 2018-05”). The objective of ASU 2018-05 is to codify previously-issued SEC guidance allowing for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. There may be adjustments to the provisional amounts recorded during this measurement period and such adjustments could possibly be material. |
Acquisitions, Disposals and Oth
Acquisitions, Disposals and Other Transactions | 9 Months Ended |
Mar. 31, 2018 | |
Acquisitions Disposals And Other Transactions [Abstract] | |
Acquisitions, Disposals and Other Transactions | NOTE 2. ACQUISITIONS, DISPOSALS AND OTHER TRANSACTIONS Fiscal 2018 Disney Transaction/Distribution of New Fox In December 2017, the Company entered into an Agreement and Plan of Merger (as amended, the “Merger Agreement”) with The Walt Disney Company (“Disney”). Prior to the consummation of the Initial Merger (as hereinafter defined), the Company will transfer a portfolio of the Company’s news, sports and broadcast businesses, including the Fox News Channel, Fox Business Network, FOX Broadcasting Company, Fox Sports, Fox Television Stations Group, FS1, FS2, Fox Deportes and Big Ten Network and certain other assets and liabilities into a newly formed subsidiary (“New Fox”) (the “New Fox Separation”) and distribute all of the issued and outstanding common stock of New Fox to the holders of the outstanding shares of the Company's Class A Common Stock and Class B Common Stock (other than holders that are subsidiaries of the Company (shares held by such holders, the "Hook Stock")) on a pro rata basis (the "New Fox Distribution"). Prior to the New Fox Distribution, New Fox will pay the Company a dividend in the amount of $8.5 billion. New Fox will incur indebtedness sufficient to fund the dividend, which indebtedness will be reduced after the initial merger by the amount of the Cash Payment (as hereinafter defined). As the New Fox Separation and New Fox Distribution will be taxable to the Company at the corporate level, the dividend is intended to fund the taxes resulting from the New Fox Separation and New Fox Distribution and certain other transactions contemplated by the Merger Agreement (the "Transaction Tax"). The Company will retain all assets and liabilities not transferred to New Fox, including the Twentieth Century Fox Film and Television studios and certain cable and international television businesses, including FX Networks, National Geographic Partners, Fox Sports Regional Networks, Fox Networks Group International and Star India, as well as the Company’s interests in Hulu LLC (“Hulu”), Sky plc (“Sky”), Tata Sky Limited and Endemol Shine Group. Following the New Fox Distribution, TWC Merger Enterprises 2 Corp., a wholly owned subsidiary of Disney (“Merger Sub”) will merge with and into the Company (the “Initial Merger”), with the Company surviving (the “Surviving Corporation”). Immediately after the effective time of the Initial Merger, the Surviving Corporation will merge with and into TWC Merger Enterprises 1, LLC, a wholly owned subsidiary of Disney (“Merger LLC”), with Merger LLC to be the surviving entity (the “Subsequent Merger,” and together with the Initial Merger, the “Mergers”). As a result of the Mergers, the Company will become a wholly owned subsidiary of Disney. Upon consummation of the Disney Transaction, each issued and outstanding share of the Company's Class A Common Stock and Class B Common Stock (other than the Hook Stock) will be exchanged automatically for 0.2745 shares of common stock, par value $0.01 per share, of Disney ("Disney Common Stock"). The exchange ratio may be subject to an adjustment based on the final estimate of certain tax liabilities arising from the New Fox Separation and the New Fox Distribution and other transactions contemplated by the Merger Agreement. The initial exchange ratio in the Merger Agreement of 0.2745 shares of Disney Common Stock for each share of the Company's Class A Common Stock and Class B Common Stock (other than the Hook Stock) was set based on an estimate of $8.5 billion for the Transaction Tax, and will be adjusted immediately prior to consummation of the Disney Transaction if the final estimate of the Transaction Tax at closing is more than $8.5 billion or less than $6.5 billion. Such adjustment could increase or decrease the exchange ratio, depending on whether the final estimate is higher or lower, respectively, than $6.5 billion or $8.5 billion. Additionally, if the final estimate of the tax liabilities is lower than $8.5 billion, Disney will make a cash payment to New Fox reflecting the difference between such amount and $8.5 billion, up to a maximum cash payment of $2 billion (the "Cash Payment"). The foregoing proposed transactions are collectively referred to in this report as the “Disney Transaction”. To provide New Fox with financing in connection with the New Fox Distribution, 21st Century Fox America, Inc. (“21CFA”), a wholly-owned subsidiary of the Company, entered into a commitment letter on behalf of New Fox with the financial institutions party thereto (the “Bridge Commitment Letter”) which provides for borrowings of up to $9 billion. Given the Company’s current debt ratings, 21CFA pays a commitment fee of 0.1%. While the Company has entered into the Bridge Commitment Letter, New Fox intends to finance the dividend by obtaining permanent financing in the capital markets on a standalone basis. Under the terms of the Merger Agreement, Disney will pay the Company $2.5 billion if the merger is not consummated under certain circumstances relating to the failure to obtain approvals, or there is a final, non-appealable order preventing the transaction, in each case, relating to antitrust laws, communications laws or foreign regulatory laws. If the Merger Agreement is terminated under certain other circumstances relating to changes in board recommendations and/or alternative transactions, the Company or Disney may be required to pay the other party approximately $1.5 billion. In connection with the Disney Transaction, the Company has made certain representations, warranties and covenants, including, among other things, customary pre-closing covenants by the Company to conduct its business in the ordinary course consistent with past practice and refraining from taking certain actions without Disney consent. The consummation of the Disney Transaction is subject to various conditions, including among others, (i) customary conditions relating to the adoption of the Merger Agreement by the requisite vote of the Company’s stockholders and the approval of the stock issuance by the requisite vote of Disney stockholders, (ii) the consummation of the New Fox Separation, (iii) the receipt of a tax ruling from the Australian Taxation Office and certain tax opinions with respect to the treatment of the transaction under U.S. and Australian tax laws, and (iv) the receipt of certain regulatory approvals and governmental consents. The Mergers and New Fox Separation are expected to be completed in approximately 12 to 18 months from December 13, 2017. In February 2018, the Compensation Committee of the Board of Directors of the Company (the “Compensation Committee”) established a cash bonus retention plan for certain employees of approximately $110 million of which 50% is payable at the time of the Initial Merger and 50% on the 10-month anniversary of the Initial Merger, subject to each participant's continued employment through the applicable payment date. The cash bonus retention payment plans are subject to accelerated payment upon the occurrence of certain termination events. In addition, the Compensation Committee modified certain equity awards and granted additional equity awards to certain executives (See Note 8 – Equity-based Compensation). The modification and grant of equity awards and the cash bonus retention plan resulted in additional compensation expenses of approximately $85 million for the three and nine months ended March 31, 2018, of which approximately $60 million was included in Selling, general and administrative expenses and the remaining amount was included in Other, net in the Unaudited Consolidated Statements of Operations. Television Stations Acquisition In May 2018, the Company entered into a definitive agreement (the “Purchase Agreement”) with Sinclair Broadcast Group, Inc. (“Sinclair”) and Tribune Media Company (“Tribune”) to acquire seven television stations from Tribune for approximately $910 million subject to certain purchase price adjustments. As part of the transaction, the Company entered into new network affiliation agreements with Sinclair and will grant to Sinclair options to acquire two of the Company’s stations. Completion of the stations acquisition, which is anticipated to close in the first half of fiscal 2019, is subject to the satisfaction of customary closing conditions, including regulatory approvals and the substantially simultaneous closing of Sinclair’s proposed acquisition of Tribune. Fiscal 2017 Sky Acquisition In December 2016, the Company announced it reached agreement with Sky, in which the Company currently has an approximate 39% interest, on the terms of a recommended pre-conditional cash offer by the Company for the fully diluted share capital of Sky which the Company does not already own (the “Sky Acquisition”), at a price of £10.75 per Sky share (approximately $16 billion in the aggregate). The Sky Acquisition remains subject to certain customary closing conditions, including approval by the UK Secretary of State for Digital, Culture, Media and Sport and the requisite approval of Sky shareholders unaffiliated with the Company. The Sky Acquisition has received unconditional clearance by all competent competition authorities including the European Commission, and has been cleared on public interest and plurality grounds in all of the markets in which Sky operates outside of the UK, including Austria, Germany, Italy and the Republic of Ireland. The Company anticipates regulatory approval of the transaction by early summer 2018. To provide financing in connection with the Sky Acquisition, the Company and 21CFA entered into a bridge credit agreement with the lenders party thereto (the “Bridge Credit Agreement”). The Bridge Credit Agreement provides for borrowings of up to £12.2 billion (approximately $17 billion). Fees under the Bridge Credit Agreement are based on the Company’s long-term senior unsecured non-credit enhanced debt ratings. Given the Company’s current debt ratings, 21CFA pays a commitment fee on undrawn funds of 0.1% and the initial interest rate on advances will be London Interbank Offered Rate (“LIBOR”) plus 1.125% with subsequent increases every 90 days up to LIBOR plus 1.875%. 21CFA has also agreed to pay a duration fee on each of the 90th, 180th and 270th day after the funding of the loans in an amount equal to 0.50%, 0.75%, and 1.00%, respectively, of the aggregate principal amount of the advances and undrawn commitments outstanding at the time. The terms of the Bridge Credit Agreement also include the requirement that 21CFA maintain a certain leverage ratio and limitations with respect to secured indebtedness. While the Company has entered into the Bridge Credit Agreement, the Company intends to finance the Sky Acquisition by using a significant portion of the available cash on its balance sheet and obtaining permanent financing in the capital markets. The Company purchased a foreign currency exchange option in February 2017, which was subsequently modified in September 2017 and February 2018, to limit its foreign currency exchange rate risk in connection with the Sky Acquisition (See Note 5 – Fair Value under the heading “Foreign Currency Contracts” and Note 11 – Additional Financial Information under the heading “Other, net” for additional information). The Company believes the Sky Acquisition will result in enhanced capabilities of the combined company, underpinned by a more geographically diverse and stable revenue base, and an improved balance between subscription, affiliate fee, advertising and content revenues. On April 25, 2018, Comcast Corporation (“Comcast”) announced a pre-conditional cash offer for the fully diluted share capital of Sky (the “Comcast Offer”) which will be subject to regulatory pre-conditions as well as additional closing conditions. Following the announcement of the Comcast Offer, on April 25, 2018, the independent committee of the Sky Board of Directors (the “Independent Committee”) withdrew its previously announced recommendation that unaffiliated Sky shareholders vote in favor of the Sky Acquisition and the Company received from Sky a written notice of termination of the co-operation agreement entered into in December 2016 between the Company and Sky (the “Co-Operation Agreement”) pursuant to which the Company and Sky had agreed to certain matters in relation to the Sky Acquisition, including a break fee. As a result of the termination of the Co-Operation Agreement, the break fee will not be payable by the Company in any circumstance. Certain provisions relating to the Company’s conduct of the Sky Acquisition survive the termination of the Co-Operation Agreement. Notwithstanding the termination of the Co-Operation Agreement, Sky has stated that the Independent Committee intends to co-operate fully with the Company and Comcast to secure the relevant approvals to satisfy the pre-conditions for both offers. The Company remains committed to the Sky Acquisition and is currently considering its options. Other In February 2017, the Company announced that it anticipated receiving approximately $350 million in proceeds resulting from the Federal Communications Commission’s (the “FCC”) reverse auction for broadcast spectrum. Consequently, the Company will relinquish spectrum used by its television stations affiliated with both The CW Television Network and Master Distribution Service, Inc. (“MyNetworkTV”) in Chicago, IL and MyNetworkTV in the Washington, DC and Charlotte, NC designated market areas, in which the Company operates duopolies. These stations will continue broadcasting using the spectrum of the existing FOX Broadcasting Company (“FOX”) owned and operated station in that market. The proceeds were received in July 2017 and the Company recorded a deferred gain on this transaction which will be recognized upon relinquishing the spectrum to the FCC, which is anticipated to occur during the fourth quarter of fiscal 2018. |
Inventories, Net
Inventories, Net | 9 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | NOTE 3. INVENTORIES, NET The Company’s inventories were comprised of the following: As of March 31, 2018 As of June 30, 2017 (in millions) Programming rights Sports programming rights $ 3,845 $ 3,201 Entertainment programming rights 3,355 3,232 Filmed entertainment costs Films Released, less accumulated amortization 1,314 1,112 Completed, not released 27 398 In production 1,522 1,094 In development or preproduction 203 295 - 3,066 2,899 Television productions Released, less accumulated amortization 853 838 In production, development or preproduction 528 383 1,381 1,221 Total filmed entertainment costs, less accumulated amortization (a) 4,447 4,120 Total inventories, net 11,647 10,553 Less: current portion of inventories, net (b) (3,645 ) (3,101 ) Total non-current inventories, net $ 8,002 $ 7,452 (a) Does not include $218 million and $241 million of net intangible film library costs as of March 31, 2018 and June 30, 2017, respectively, which were included in intangible assets subject to amortization in the Consolidated Balance Sheets. (b) Current portion of inventories, net as of March 31, 2018 and June 30, 2017 was comprised of programming rights ($3,591 million and $3,037 million, respectively), DVDs, Blu-rays and other merchandise. |
Investments
Investments | 9 Months Ended |
Mar. 31, 2018 | |
Investments [Abstract] | |
Investments | NOTE 4. INVESTMENTS The Company’s investments were comprised of the following: Ownership percentage as of March 31, 2018 As of March 31, 2018 As of June 30, 2017 (in millions) Sky (a)(b) European direct broadcast satellite operator 39% $ 3,485 $ 3,175 Endemol Shine Group (b) Global multi-platform content provider 50% 222 262 Other investments (c) various 549 465 Total investments $ 4,256 $ 3,902 (a) The Company’s investment in Sky had a market value of $12.2 billion as of March 31, 2018 determined using its quoted market price on the London Stock Exchange (a Level 1 measurement as defined in Note 5 – Fair Value). The Company received dividends of approximately $95 million and $170 million from Sky for the nine months ended March 31, 2018 and 2017, respectively. (b) Equity method investments. (c) Includes an investment of $187 million in available-for-sale securities as of March 31, 2018 (See Note 5 – Fair Value). Hulu The Company owns an equity interest in Hulu. In August 2016, Hulu issued a 10% equity interest to a new investor thereby diluting the Company’s ownership to 30%. For a period of up to 36 months, under certain limited circumstances arising from regulatory review, the new investor may put its shares to Hulu or Hulu may call the shares from the new investor. If Hulu is required to fund the repurchase of shares from the new investor, the Company has agreed to make an additional capital contribution of up to approximately $300 million to Hulu. For the nine months ended March 31, 2018, the Company invested approximately $315 million in Hulu to maintain its ownership percentage and has committed to an additional investment of approximately $340 million in calendar year 2018. |
Fair Value
Fair Value | 9 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 5. FAIR VALUE In accordance with ASC 820, “Fair Value Measurement,” fair value measurements are required to be disclosed using a three-tiered fair value hierarchy which distinguishes market participant assumptions into the following categories: (i) inputs that are quoted prices in active markets (“Level 1”); (ii) inputs other than quoted prices included within Level 1 that are observable, including quoted prices for similar assets or liabilities (“Level 2”); and (iii) inputs that require the entity to use its own assumptions about market participant assumptions (“Level 3”). The following tables present information about financial assets and liabilities carried at fair value on a recurring basis: Fair value measurements As of March 31, 2018 Total Level 1 Level 2 Level 3 (in millions) Assets Investments (a) $ 187 $ 187 $ - $ - Derivatives (b) 153 - 153 - Other (c) 114 - - 114 Redeemable noncontrolling interests (761 ) - - (761 ) Total $ (307 ) $ 187 $ 153 $ (647 ) As of June 30, 2017 Total Level 1 Level 2 Level 3 (in millions) Assets Derivatives (b) $ 48 $ - $ 48 $ - Other (c) 43 - - 43 Liabilities Derivatives (b) (9 ) - (9 ) - Redeemable noncontrolling interests (694 ) - - (694 ) Total $ (612 ) $ - $ 39 $ (651 ) (a) Represents an investment in available-for-sale securities. (b) Represents derivatives associated with the Company’s foreign currency forward and option contracts and interest rate swap contracts. (c) Primarily relates to past acquisitions, including contingent consideration arrangements. Redeemable Noncontrolling Interests The Company accounts for redeemable noncontrolling interests in accordance with ASC 480-10-S99-3A, “Distinguishing Liabilities from Equity” (“ASC 480-10-S99-3A”), because their exercise is outside the control of the Company. The redeemable noncontrolling interests recorded at fair value are put arrangements held by the noncontrolling interests in certain of the Company’s majority-owned sports networks. The Company utilizes the market, income or cost approaches or a combination of these valuation techniques for its Level 3 fair value measures, using observable inputs such as market data obtained from independent sources. To the extent observable inputs are not available, the Company utilizes unobservable inputs based upon the assumptions market participants would use in valuing the asset (liability). One minority shareholder’s put right is currently exercisable. One minority shareholder’s put right will become exercisable in July 2018 and two minority shareholders’ put rights will become exercisable in March 2019. The remaining redeemable noncontrolling interests are currently not exercisable. Financial Instruments The carrying value of the Company’s financial instruments, such as cash and cash equivalents, receivables, payables and cost method investments, approximates fair value. As of March 31, 2018 As of June 30, 2017 (in millions) Borrowings Fair value $ 23,861 $ 23,853 Carrying value $ 19,997 $ 19,913 Fair value is generally determined by reference to market values resulting from trading on a national securities exchange or in an over-the-counter market (a Level 1 measurement). Foreign Currency Contracts The Company uses foreign currency forward contracts primarily to hedge certain exposures to foreign currency exchange rate risks associated with revenues and the cost of producing or acquiring films and television programming. The Company also entered into a foreign currency option contract to limit its foreign currency exchange rate risk in connection with the Sky Acquisition. For accounting purposes, the option contract does not qualify for hedge accounting and therefore has been treated as an economic hedge (See Note 2 – Acquisitions, Disposals and Other Transactions under the heading “Sky Acquisition”). As of March 31, 2018 As of June 30, 2017 (in millions) Cash Flow Hedges Notional amount $ 107 $ 209 Fair value $ 2 $ - For foreign currency forward contracts designated as cash flow hedges, the Company expects to reclassify the cumulative changes in fair values, included in Accumulated other comprehensive loss, within the next As of March 31, 2018 As of June 30, 2017 (in millions) Economic Hedges Notional amount (a) $ 12,794 $ 12,371 Fair value (a) $ 143 $ 38 (a) Includes the foreign currency option contract to limit the foreign currency exchange rate risk in connection with the Sky Acquisition. The foreign currency option contract has a notional amount of $12.8 billion and consists of the foreign currency option and a premium payable of approximately $400 million due on the option expiration date. As of March 31, 2018, the foreign currency option had a fair value of $143 million. Interest Rate Swap Contracts The Company uses interest rate swap contracts to hedge certain exposures to interest rate risks associated with certain borrowings. As of March 31, 2018 As of June 30, 2017 (in millions) Cash Flow Hedges Notional amount $ 621 $ 663 Fair value $ 8 $ 1 For interest rate swap contracts designated as cash flow hedges, the Company expects to reclassify the cumulative changes in fair values, included in Accumulated other comprehensive loss, within the next two years. Concentrations of Credit Risk Cash and cash equivalents are maintained with several financial institutions. The Company has deposits held with banks that exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions of reputable credit and, therefore, bear minimal credit risk. The Company’s receivables did not represent significant concentrations of credit risk as of March 31, 2018 or June 30, 2017 due to the wide variety of customers, markets and geographic areas to which the Company’s products and services are sold. The Company monitors its positions with, and the credit quality of, the financial institutions which are counterparties to its financial instruments. The Company is exposed to credit loss in the event of nonperformance by the counterparties to the agreements. As of March 31, 2018, the Company did not anticipate nonperformance by any of the counterparties. |
Borrowings
Borrowings | 9 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings | NOTE 6. BORROWINGS Borrowings include bank loans and public debt. Bank Loans In December 2017, the Yankees Entertainment and Sports Network (the “YES Network”) amended its credit agreement to decrease the total size of its credit facility from approximately $1.8 billion to $1.6 billion. The credit facility is comprised of a $1.1 billion term loan facility and a $500 million secured revolving credit facility. The amendment also extended the maturity date of the credit agreement to December 2023. As of March 31, 2018, the outstanding balances on the term loan facility and revolving credit facility were approximately $1.1 billion and $130 million, respectively. The YES Network pays a commitment fee (currently 0.275%) on undrawn funds that is determined by the total leverage ratio. In March 2018, STAR India (“STAR”) entered into a term loan agreement (the “STAR Term Loan”) among STAR as borrower, the Company as parent guarantor, JPMorgan Chase Bank, N.A. as original lender and IDBI Trusteeship Services Limited as agent. The term loan agreement is comprised of an Indian rupee (“INR”) 5 billion (approximately $77 million) unsecured term loan facility with a maturity date of March 2021. The term loan facility bears interest at the Financial Benchmarks India Pvt. Ltd. Treasury Bills rate for three month terms plus a margin. The term loan facility is callable and may be redeemed, in whole or in part, every three months. Borrowings under the term loan facility are available for acquiring programming rights. In addition to the STAR Term Loan, STAR has entered into various unsecured credit facilities (the “STAR Credit Facilities”) that are available for working capital and for acquiring programming rights. These credit facilities are uncommitted and are reviewed periodically for renewal. The credit facilities have a total capacity for borrowings of INR 13.7 billion (approximately $210 million). As of March 31, 2018, the outstanding balance on the credit facilities was $130 million. Borrowings under the credit facilities are due on demand by the lenders providing up to 60 days’ notice. Borrowings with on demand repayment terms are presented as Current borrowings in the Consolidated Balance Sheets. Current Borrowings Included in Borrowings within Current liabilities as of March 31, 2018 was $350 million of 7.25% Senior Notes that are due in May 2018, $250 million of 8.25% Senior Notes that are due in August 2018, $700 million of 6.90% Senior Notes that are due in March 2019, principal payments on the YES Network term loan facility of $31 million that are due in the next 12 months, $77 million related to the STAR Term Loan and $130 million related to the STAR Credit Facilities. Bridge Credit Agreement See Note 2 – Acquisitions, Disposals and Other Transactions under the heading “Sky Acquisition”. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Mar. 31, 2018 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | NOTE 7. STOCKHOLDERS’ EQUITY The following tables summarize changes in stockholders’ equity: For the three months ended March 31, 2018 For the nine months ended March 31, 2018 Twenty-First Century Fox stockholders Noncontrolling interests Total equity Twenty-First Century Fox stockholders Noncontrolling interests Total equity (in millions) Balance, beginning of period $ 18,389 $ 1,242 $ 19,631 $ 15,722 $ 1,216 $ 16,938 Net income 858 34 (a) 892 3,544 107 (a) 3,651 Other comprehensive (loss) income (50 ) 9 (41 ) 319 22 341 Issuance of shares 1 - 1 42 - 42 Dividends declared (334 ) - (334 ) (667 ) - (667 ) Other 107 (33 ) (b) 74 11 (93 ) (b) (82 ) Balance, end of period $ 18,971 $ 1,252 $ 20,223 $ 18,971 $ 1,252 $ 20,223 For the three months ended March 31, 2017 For the nine months ended March 31, 2017 Twenty-First Century Fox stockholders Noncontrolling interests Total equity Twenty-First Century Fox stockholders Noncontrolling interests Total equity (in millions) Balance, beginning of period $ 14,340 $ 1,215 $ 15,555 $ 13,661 $ 1,220 $ 14,881 Net income 799 28 (a) 827 2,476 105 (a) 2,581 Other comprehensive income (loss) 187 4 191 (51 ) (16 ) (67 ) Issuance (cancellation) of shares, net 1 - 1 (527 ) - (527 ) Dividends declared (333 ) - (333 ) (668 ) - (668 ) Other 23 (12 ) (b) 11 126 (74 ) (b) 52 - Balance, end of period $ 15,017 $ 1,235 $ 16,252 $ 15,017 $ 1,235 $ 16,252 (a) Net income attributable to noncontrolling interests excludes $51 million and $43 million for the three months ended March 31, 2018 and 2017, respectively, and $128 million and $113 million for the nine months ended March 31, 2018 and 2017, respectively, relating to redeemable noncontrolling interests which are reflected in temporary equity. (b) Other activity attributable to noncontrolling interests excludes $(2) million for the three months ended March 31, 2018 and 2017, and $(61) million and $(46) million for the nine months ended March 31, 2018 and 2017, respectively, relating to redeemable noncontrolling interests. Comprehensive Income Comprehensive income is reported in the Unaudited Consolidated Statements of Comprehensive Income and consists of Net income and Other comprehensive income (loss), including foreign currency translation adjustments, gains (losses) on cash flow hedges, unrealized holding gains and losses on securities, benefit plan adjustments and the Company’s share of other comprehensive income (loss) of equity method investees, which affect stockholders’ equity, and under GAAP, are excluded from Net income. The following tables summarize the activity within Other comprehensive income (loss): For the three months ended March 31, 2018 For the nine months ended March 31, 2018 Before tax Tax (provision) benefit Net of tax Before tax Tax (provision) benefit Net of tax (in millions) Foreign currency translation adjustments Unrealized gains $ 21 $ - $ 21 $ 100 $ - $ 100 Other comprehensive income $ 21 $ - $ 21 $ 100 $ - $ 100 Cash flow hedges Unrealized gains $ 7 $ (2 ) $ 5 $ 16 $ (5 ) $ 11 Reclassifications realized in net income (a) (2 ) - (2 ) (13 ) 4 (9 ) Other comprehensive income $ 5 $ (2 ) $ 3 $ 3 $ (1 ) $ 2 (Losses) gains on securities Unrealized (losses) gains $ (122 ) $ 28 $ (94 ) $ 161 $ (76 ) $ 85 Other comprehensive (loss) income $ (122 ) $ 28 $ (94 ) $ 161 $ (76 ) $ 85 Benefit plan adjustments Unrealized losses (b) $ (9 ) $ 2 $ (7 ) $ (9 ) $ 2 $ (7 ) Reclassification adjustments realized in net income (c) 14 (3 ) 11 120 (42 ) 78 Other comprehensive income $ 5 $ (1 ) $ 4 $ 111 $ (40 ) $ 71 Equity method investments Unrealized gains and reclassifications $ 45 $ (20 ) $ 25 $ 129 $ (46 ) $ 83 Other comprehensive income $ 45 $ (20 ) $ 25 $ 129 $ (46 ) $ 83 For the three months ended March 31, 2017 For the nine months ended March 31, 2017 Before tax Tax (provision) benefit Net of tax Before tax Tax (provision) benefit Net of tax (in millions) Foreign currency translation adjustments Unrealized gains (losses) $ 111 $ - $ 111 $ (40 ) $ - $ (40 ) Other comprehensive income (loss) $ 111 $ - $ 111 $ (40 ) $ - $ (40 ) Cash flow hedges Unrealized gains $ 1 $ - $ 1 $ 14 $ (5 ) $ 9 Reclassifications realized in net income (a) 9 (4 ) 5 16 (6 ) 10 Other comprehensive income $ 10 $ (4 ) $ 6 $ 30 $ (11 ) $ 19 Benefit plan adjustments Unrealized gains (b) $ 104 $ (38 ) $ 66 $ 104 $ (38 ) $ 66 Reclassification adjustments realized in net income (c) 13 (5 ) 8 81 (30 ) 51 Other comprehensive income $ 117 $ (43 ) $ 74 $ 185 $ (68 ) $ 117 Equity method investments Unrealized gains (losses) and reclassifications $ 5 $ (5 ) $ - $ (218 ) $ 55 $ (163 ) Other comprehensive income (loss) $ 5 $ (5 ) $ - $ (218 ) $ 55 $ (163 ) (a) Reclassifications of amounts related to hedging activity are included in Revenues, Operating expenses, Selling, general and administrative expenses, Interest expense, net or Other, net, as appropriate, in the Unaudited Consolidated Statements of Operations (See Note 5 – Fair Value for additional information regarding hedging activity). (b) For the three and nine months ended March 31, 2018 and 2017, the Company recorded a net unrealized actuarial (loss) gain from the remeasurement of its pension plan. (c) Reclassifications of amounts related to benefit plan adjustments are included in Other, net in the Unaudited Consolidated Statements of Operations. Earnings Per Share Data The following table sets forth the Company’s computation of Income from continuing operations attributable to Twenty-First Century Fox stockholders: For the three months ended March 31, For the nine months ended March 31, 2018 2017 2018 2017 (in millions) Income from continuing operations $ 961 $ 882 $ 3,786 $ 2,713 Less: Net income attributable to noncontrolling interests (85 ) (71 ) (235 ) (218 ) Income from continuing operations attributable to Twenty-First Century Fox stockholders $ 876 $ 811 $ 3,551 $ 2,495 Stock Repurchase Program The Board authorized a stock repurchase program, under which the Company is authorized to acquire Class A Common Stock. As of March 31, 2018, the Company’s remaining buyback authorization was approximately $3.1 billion representing approximately $3 billion under the fiscal 2017 authorization and approximately $110 million under the fiscal 2016 authorization. Pursuant to the Merger Agreement (See Note 2 – Acquisitions, Disposals and Other Transactions under the heading “Disney Transaction/Distribution of New Fox”), the Company is required to obtain Disney’s consent prior to repurchasing any additional shares. The Company did not repurchase any of its Class A Common Stock or Class B Common Stock during the nine months ended March 31, 2018. Dividends The following table summarizes the dividends declared per share on both the Company’s Class A Common Stock and the Class B Common Stock: For the three months ended March 31, For the nine months ended March 31, 2018 2017 2018 2017 Cash dividend per share $ 0.18 $ 0.18 $ 0.36 $ 0.36 The Company declared a dividend of $0.18 per share on both the Class A Common Stock and Class B Common Stock in the three months ended March 31, 2018, which was paid in April 2018 to the stockholders on record as of March 14, 2018. |
Equity-Based Compensation
Equity-Based Compensation | 9 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity-Based Compensation | NOTE 8. EQUITY-BASED COMPENSATION The following table summarizes the Company’s equity-based compensation activity: For the three months ended March 31, For the nine months ended March 31, 2018 2017 2018 2017 (in millions) Equity-based compensation $ 118 $ 35 $ 184 $ 97 Intrinsic value of all settled equity-based awards $ - $ 1 $ 74 $ 70 = Tax benefit on vested equity-based awards $ - $ - $ 24 $ 25 As of March 31, 2018, the Company’s total estimated compensation cost related to equity-based awards, not yet recognized, was approximately $370 million, and is expected to be recognized over a weighted average period between one and two years. Compensation expense on all equity-based awards is generally recognized on a straight-line basis over the vesting period of the entire award. Performance Stock Units The Company’s stock based awards are granted in Class A Common Stock. During the nine months ended March 31, 2018, approximately 6.8 million performance stock units (“PSUs”) were granted and approximately 2.6 million PSUs vested. During the nine months ended March 31, 2017, approximately 7.4 million PSUs were granted and approximately 2.6 million PSUs vested. In February 2018, the Compensation Committee determined that, upon vesting, the outstanding PSU awards for the fiscal 2016-2018 performance period granted to all participants in the PSU award program, including the Company’s named executive officers, will be paid out based on the target number of PSUs awarded in accordance with the original vesting schedule. As of March 31, 2018, there were approximately 5.0 million PSUs outstanding for the 2016-2018 performance period. Retention Awards In February 2018, the Compensation Committee made a special grant of approximately 5.8 million restricted stock units (“Retention RSUs”) to certain of the Company’s senior executives, including named executive officers. The Retention RSU grants will vest 50% at the time of the Initial Merger and 50% on the 15-month anniversary of the Initial Merger, subject to each executive’s continued employment through the applicable vesting date. The Retention RSU grants will be subject to accelerated vesting upon the occurrence of certain termination events. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 9. COMMITMENTS AND CONTINGENCIES Commitments The Company has commitments under certain firm contractual arrangements (“firm commitments”) to make future payments. These firm commitments secure the future rights to various assets and services to be used in the normal course of operations. The total firm commitments and future debt payments as of March 31, 2018 and June 30, 2017 were approximately $84 billion and $82 billion, respectively. The increase from June 30, 2017 was primarily due to the expanded agreement with the National Football League to include broadcast rights for the next five seasons of Thursday Night Football beginning with the 2018 season In April 2018, the Company expanded its agreement for the global media rights for the Board of Control for Cricket in India’s (“BCCI”) domestic and international cricket matches through 2023. Contingent Guarantees The Company’s contingent guarantees as of March 31, 2018 and June 30, 2017 were approximately $1 billion and $500 million, respectively. The increase from June 30, 2017 was primarily due to a bank guarantee covering the Company’s new IPL programming rights obligations. The commitments and contingent guarantees above do not include obligations and commitments related to the Disney Transaction and the Sky Acquisition (See Note 2 – Acquisitions, Disposals and Other Transactions under the headings “Disney Transaction/Distribution of New Fox” and “Sky Acquisition”). Hulu The Company has guaranteed $113 million of Hulu’s $338 million five-year term loan due in August 2022 which is included in the contingent guarantees above. The fair value of this guarantee was calculated using Level 3 inputs and was included in the Consolidated Balance Sheets in Other liabilities. In addition to the contingent guarantees mentioned above, the Company is party to capital funding agreements related to Hulu (See Note 4 – Investments under the heading “Hulu”). Contingencies Fox News Channel The Company and certain of its current and former employees have been subject to allegations of sexual harassment and discrimination and racial discrimination relating to alleged misconduct at the Company’s Fox News Channel business. The Company has settled some of these claims and is contesting other claims in litigation. The Company has also received regulatory and investigative inquiries relating to these matters. To date, none of the amounts paid in settlements or reserved for pending or future claims, is individually or in the aggregate, material to the Company. The amount of liability, if any, that may result from these or related matters cannot be estimated at this time. However, the Company does not currently anticipate that the ultimate resolution of any such pending matters will have a material adverse effect on its consolidated financial condition, future results of operations or liquidity. Shareholder Litigation On November 20, 2017, a stockholder of the Company filed a derivative action in the Court of Chancery of the State of Delaware captioned City of Monroe Employees’ Retirement System v. Rupert Murdoch, et al. On November 20, 2017, the parties reached an agreement to settle the lawsuit and filed a Stipulation and Agreement of Settlement, Compromise, and Release with the Court (the “Settlement Agreement”). Pursuant to the terms of the Settlement Agreement, the parties agreed that the director defendants and the Ailes Estate would cause their insurers to make a payment in the amount of $90 million to the Company, less approximately $22 million of attorneys’ fees and expenses awarded by the Court to the plaintiff’s counsel. Such amount was paid pursuant to an agreement reached between the defendants and their directors’ and officers’ liability insurers for the payment of insurance proceeds, subject to a claims release. In addition to the payment to the Company, the Settlement Agreement provides that the Company shall put in place governance and compliance enhancements, including the creation of the Fox News Workplace Professionalism and Inclusion Council, as set forth in the Non-Monetary Relief Agreement agreed to by the parties in connection with the Settlement Agreement. These governance and compliance enhancements, which the Company has implemented, shall remain in effect for five years. No stockholder objected to either the settlement or the proposed fee award at the settlement hearing on February 9, 2018. The Court approved the settlement and entered a final order and judgment on February 9, 2018. Accordingly, the Company received a cash payment and recorded the net settlement of $68 million in Other, net in the Unaudited Consolidated Statements of Operations for three and nine months ended March 31, 2018. U.K. Newspaper Matters Indemnity In connection with the Separation (as defined in Note 4 – Discontinued Operations in the 2017 Form 10-K under the heading “Separation of News Corp”), the Company and News Corporation (“News Corp”) agreed in the Separation and Distribution Agreement that the Company will indemnify News Corp, on an after-tax basis, for payments made after the Separation arising out of civil claims and investigations relating to phone hacking, illegal data access and inappropriate payments to public officials that occurred at subsidiaries of News Corp, as well as legal and professional fees and expenses paid in connection with the related criminal matters, other than fees, expenses and costs relating to employees who are not (i) directors, officers or certain designated employees or (ii) with respect to civil matters, co-defendants with News Corp (the “Indemnity”). The liability related to the Indemnity, recorded in the Consolidated Balance Sheets, was approximately $60 million and $80 million as of March 31, 2018 and June 30, 2017, respectively. Other Equity purchase arrangements that are exercisable by the counterparty to the agreement, and that are outside the sole control of the Company, are accounted for in accordance with ASC 480-10-S99-3A and are classified as Redeemable noncontrolling interests in the Consolidated Balance Sheets. Other than the arrangements classified as Redeemable noncontrolling interests, the Company is also a party to several other purchase and sale arrangements which become exercisable at various points in time. However, these arrangements are currently either not exercisable in the next twelve months or are not material. The Company establishes an accrued liability for legal claims when the Company determines that a loss is both probable and the amount of the loss can be reasonably estimated. Once established, accruals are adjusted from time to time, as appropriate, in light of additional information. The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be higher or lower than the amounts accrued for such matters. Any fees, expenses, fines, penalties, judgments or settlements which might be incurred by the Company in connection with the various proceedings could affect the Company’s results of operations and financial condition. For the contingencies disclosed above for which there is at least a reasonable possibility that a loss may be incurred, other than the accrual provided, the Company was unable to estimate the amount of loss or range of loss. The Company’s operations are subject to tax in various domestic and international jurisdictions and as a matter of course, the Company is regularly audited by federal, state and foreign tax authorities. The Company believes it has appropriately accrued for the expected outcome of all pending tax matters and does not currently anticipate that the ultimate resolution of pending tax matters will have a material adverse effect on its consolidated financial condition, future results of operations or liquidity. |
Segment Information
Segment Information | 9 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 10. SEGMENT INFORMATION The Company is a diversified global media and entertainment company, which manages and reports its businesses in the following four segments: • Cable Network Programming , which principally consists of the production and licensing of programming distributed primarily through cable television systems, direct broadcast satellite operators, telecommunication companies and online video distributors in the U.S. and internationally. • Television , which principally consists of the broadcasting of network programming in the U.S. and the operation of 28 full power broadcast television stations, including 11 duopolies, in the U.S. (of these stations, 17 are affiliated with FOX, nine are affiliated with MyNetworkTV, one is affiliated with both The CW Television Network and MyNetworkTV and one is an independent station). • Filmed Entertainment , which principally consists of the production and acquisition of live-action and animated motion pictures for distribution and licensing in all formats in all entertainment media worldwide, and the production and licensing of television programming worldwide. • Other, Corporate and Eliminations , which principally consists of corporate overhead and eliminations. The Company’s operating segments have been determined in accordance with the Company’s internal management structure, which is organized based on operating activities. The Company evaluates performance based upon several factors, of which the primary financial measure is Segment OIBDA. Due to the integrated nature of these operating segments, estimates and judgments are made in allocating certain assets, revenues and expenses. Segment OIBDA is defined as Revenues less Operating expenses and Selling, general and administrative expenses. Segment OIBDA does not include: Amortization of cable distribution investments, Depreciation and amortization, Impairment and restructuring charges, Equity losses of affiliates, Interest expense, net, Interest income, Other, net, Income tax (expense) benefit, Loss from discontinued operations, net of tax and Net income attributable to noncontrolling interests. Management believes that Segment OIBDA is an appropriate measure for evaluating the operating performance of the Company’s business segments because it is the primary measure used by the Company’s chief operating decision maker to evaluate the performance of and allocate resources to the Company’s businesses. Management believes that information about Total Segment OIBDA assists all users of the Company’s Unaudited Consolidated Financial Statements by allowing them to evaluate changes in the operating results of the Company’s portfolio of businesses separate from non-operational factors that affect net income, thus providing insight into both operations and the other factors that affect reported results. Total Segment OIBDA provides management, investors and equity analysts a measure to analyze the operating performance of the Company’s business and its enterprise value against historical data and competitors’ data, although historical results, including Segment OIBDA and Total Segment OIBDA, may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences). Total Segment OIBDA may be considered a non-GAAP measure and should be considered in addition to, not as a substitute for, net income, cash flow and other measures of financial performance reported in accordance with GAAP. In addition, this measure does not reflect cash available to fund requirements and excludes items, such as depreciation and amortization and impairment charges, which are significant components in assessing the Company’s financial performance. The following table reconciles Income from continuing operations before income tax (expense) benefit to Total Segment OIBDA for the three and nine months ended March 31, 2018 and 2017: For the three months ended March 31, For the nine months ended March 31, 2018 2017 2018 2017 (in millions) Income from continuing operations before income tax (expense) benefit $ 1,331 $ 1,252 $ 3,329 $ 3,874 Add Amortization of cable distribution investments 14 15 57 46 Depreciation and amortization 145 140 429 410 Impairment and restructuring charges 34 37 58 213 Equity losses of affiliates 86 51 59 57 Interest expense, net 311 310 936 909 Interest income (10 ) (9 ) (29 ) (27 ) Other, net (17 ) 142 284 241 Total Segment OIBDA $ 1,894 $ 1,938 $ 5,123 $ 5,723 The following tables set forth the Company’s Revenues and Segment OIBDA for the three and nine months ended March 31, 2018 and 2017: For the three months ended March 31, For the nine months ended March 31, 2018 2017 2018 2017 (in millions) Revenues Cable Network Programming $ 4,419 $ 4,024 $ 13,020 $ 11,801 Television 1,149 1,690 4,020 4,646 Filmed Entertainment 2,243 2,256 6,452 6,432 Other, Corporate and Eliminations (391 ) (406 ) (1,033 ) (1,127 ) Total revenues $ 7,420 $ 7,564 $ 22,459 $ 21,752 Segment OIBDA Cable Network Programming $ 1,684 $ 1,446 $ 4,560 $ 4,160 Television 78 190 256 757 Filmed Entertainment 286 373 673 1,073 Other, Corporate and Eliminations (154 ) (71 ) (366 ) (267 ) Total Segment OIBDA $ 1,894 $ 1,938 $ 5,123 $ 5,723 Intersegment revenues, generated by the Filmed Entertainment segment, of $372 million and $407 million for the three months ended March 31, 2018 and 2017, respectively, and of $985 million and $1,085 million for the nine months ended March 31, 2018 and 2017, respectively, have been eliminated within the Other, Corporate and Eliminations segment. For the three months ended March 31, For the nine months ended March 31, 2018 2017 2018 2017 (in millions) Depreciation and amortization Cable Network Programming $ 89 $ 87 $ 260 $ 252 Television 27 28 81 85 Filmed Entertainment 21 19 67 59 Other, Corporate and Eliminations 8 6 21 14 Total depreciation and amortization $ 145 $ 140 $ 429 $ 410 Depreciation and amortization includes the amortization of definite lived intangible assets of $63 million and $62 million he three months ended March 31, 2018 and 2017, respectively, and $193 million and $192 million he nine months ended March 31, 2018 and 2017, respectively. As of March 31, 2018 As of June 30, 2017 (in millions) Assets Cable Network Programming $ 26,070 $ 24,913 Television 6,765 6,775 Filmed Entertainment 11,263 10,312 Other, Corporate and Eliminations 5,624 4,822 Investments 4,256 3,902 Total assets $ 53,978 $ 50,724 Revenues by Component For the three months ended March 31, For the nine months ended March 31, 2018 2017 2018 2017 (in millions) Revenues Affiliate fee $ 3,507 $ 3,160 $ 9,995 $ 8,989 Advertising 1,642 2,203 5,761 6,338 Content 2,148 2,078 6,307 5,979 Other 123 123 396 446 Total revenues $ 7,420 $ 7,564 $ 22,459 $ 21,752 |
Additional Financial Informatio
Additional Financial Information | 9 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Additional Financial Information | NOTE 11. ADDITIONAL FINANCIAL INFORMATION Impairment and restructuring charges Impairment and restructuring charges were $34 million and $37 million for the three months ended March 31, 2018 and 2017, respectively, and $58 million and $213 million for the nine months ended March 31, 2018 and 2017, respectively. The impairment and restructuring charges for the three and nine months ended March 31, 2017 were primarily comprised of costs in connection with management and employee transitions and restructuring at several of the Company’s business units. Other, net The following table sets forth the components of Other, net included in the Unaudited Consolidated Statements of Operations: For the three months ended March 31, For the nine months ended March 31, 2018 2017 2018 2017 (in millions) Sky Acquisition related and other transaction costs (a) $ 13 $ (137 ) $ (126 ) $ (170 ) Disney Transaction costs (b) (33 ) - (65 ) - Settlement loss on pension liabilities (c) (4 ) - (90 ) (40 ) Shareholder litigation settlement (d) 68 - 68 - Other (e) (27 ) (5 ) (71 ) (31 ) Total other, net $ 17 $ (142 ) $ (284 ) $ (241 ) (a) The Sky Acquisition related and other transaction costs primarily represent the change in fair value of a foreign currency option contract to limit the foreign currency exchange rate risk in connection with the Sky Acquisition (See Note 2 – Acquisitions, Disposals and Other Transactions under the heading “Sky Acquisition” for further discussion). (b) See Note 2 – Acquisitions, Disposals and Other Transactions under the heading “Disney Transaction/Distribution of New Fox” for further discussion. (c) During the three and nine months ended March 31, 2018, the Company settled a portion of its pension obligations by irrevocably transferring pension liabilities to an insurance company through the purchase of a group annuity contract and through lump sum distributions. These payments, funded with pension plan assets, resulted in pre-tax settlement losses related to the recognition of accumulated deferred actuarial losses. During the nine months ended March 31, 2017, the Company settled a portion of its pension obligations through lump sum distributions, which resulted in a pre-tax settlement loss related to the recognition of accumulated deferred actuarial losses. (d) See Note 9 – Commitments and Contingencies under the heading “Shareholder Litigation” for further discussion. (e) Other for Receivables, net Receivables are presented net of an allowance for returns and doubtful accounts, which is an estimate of amounts that may not be collectible. Allowances for returns and doubtful accounts as of March 31, 2018 and June 30, 2017 were $446 million and $537 million, respectively. Income Taxes During the fourth quarter of fiscal 2018, the Company expects to recognize a tax benefit of approximately $130 million related to the completion of the U.S. federal tax audits for fiscal years 2009 through 2013. Supplemental Cash Flows Information For the nine months ended March 31, 2018 2017 (in millions) Supplemental cash flows information Cash paid for income taxes $ (759 ) $ (747 ) Cash paid for interest $ (901 ) $ (890 ) |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 9 Months Ended |
Mar. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Supplemental Guarantor Information | NOTE 12. SUPPLEMENTAL GUARANTOR INFORMATION The Parent Guarantor presently guarantees the senior public indebtedness of 21CFA and the guarantee is full and unconditional. The supplemental condensed consolidating financial information of the Parent Guarantor should be read in conjunction with these Unaudited Consolidated Financial Statements. In accordance with rules and regulations of the SEC, the Company uses the equity method to account for the results of all of the non-guarantor subsidiaries, representing substantially all of the Company’s consolidated results of operations, excluding certain intercompany eliminations. The following condensed consolidating financial statements present the results of operations, financial position and cash flows of 21CFA, the Company and the subsidiaries of the Company and the eliminations and reclassifications necessary to arrive at the information for the Company on a consolidated basis. TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Statement of Operations For the three months ended March 31, 2018 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries Revenues $ 1 $ - $ 7,419 $ - $ 7,420 Expenses (111 ) - (5,608 ) - (5,719 ) Equity losses of affiliates (2 ) - (84 ) - (86 ) Interest expense, net (446 ) (202 ) (21 ) 358 (311 ) Interest income 1 4 363 (358 ) 10 Earnings from subsidiary entities 1,633 1,074 - (2,707 ) - Other, net 38 - (21 ) - 17 Income from continuing operations before income tax expense 1,114 876 2,048 (2,707 ) 1,331 Income tax expense (822 ) - (731 ) 1,183 (370 ) Income from continuing operations 292 876 1,317 (1,524 ) 961 Loss from discontinued operations, net of tax - (18 ) - - (18 ) Net income 292 858 1,317 (1,524 ) 943 Less: Net income attributable to noncontrolling interests - - (85 ) - (85 ) Net income attributable to Twenty-First Century Fox stockholders $ 292 $ 858 $ 1,232 $ (1,524 ) $ 858 Comprehensive income attributable to Twenty-First Century Fox stockholders $ 260 $ 808 $ 1,259 $ (1,519 ) $ 808 See notes to supplemental guarantor information TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Statement of Operations For the three months ended March 31, 2017 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries Revenues $ 1 $ - $ 7,563 $ - $ 7,564 Expenses (90 ) - (5,728 ) - (5,818 ) Equity losses of affiliates - - (51 ) - (51 ) Interest expense, net (423 ) (195 ) (19 ) 327 (310 ) Interest income 1 3 332 (327 ) 9 Earnings from subsidiary entities 1,883 1,002 - (2,885 ) - Other, net (140 ) 1 (3 ) - (142 ) Income from continuing operations before income tax expense 1,232 811 2,094 (2,885 ) 1,252 Income tax expense (365 ) - (620 ) 615 (370 ) Income from continuing operations 867 811 1,474 (2,270 ) 882 Loss from discontinued operations, net of tax - (12 ) - - (12 ) Net income 867 799 1,474 (2,270 ) 870 Less: Net income attributable to noncontrolling interests - - (71 ) - (71 ) Net income attributable to Twenty-First Century Fox stockholders $ 867 $ 799 $ 1,403 $ (2,270 ) $ 799 Comprehensive income attributable to Twenty-First Century Fox stockholders $ 1,005 $ 986 $ 1,578 $ (2,583 ) $ 986 See notes to supplemental guarantor information TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Statement of Operations For the nine months ended March 31, 2018 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries Revenues $ 1 $ - $ 22,458 $ - $ 22,459 Expenses (287 ) - (17,593 ) - (17,880 ) Equity losses of affiliates (2 ) - (57 ) - (59 ) Interest expense, net (1,312 ) (612 ) (63 ) 1,051 (936 ) Interest income 1 14 1,065 (1,051 ) 29 Earnings from subsidiary entities 6,417 4,149 - (10,566 ) - Other, net (181 ) - (103 ) - (284 ) Income from continuing operations before income tax benefit 4,637 3,551 5,707 (10,566 ) 3,329 Income tax benefit 637 - 784 (964 ) 457 Income from continuing operations 5,274 3,551 6,491 (11,530 ) 3,786 Loss from discontinued operations, net of tax - (7 ) - - (7 ) Net income 5,274 3,544 6,491 (11,530 ) 3,779 Less: Net income attributable to noncontrolling interests - - (235 ) - (235 ) Net income attributable to Twenty-First Century Fox stockholders $ 5,274 $ 3,544 $ 6,256 $ (11,530 ) $ 3,544 Comprehensive income attributable to Twenty-First Century Fox stockholders $ 5,260 $ 3,863 $ 6,420 $ (11,680 ) $ 3,863 See notes to supplemental guarantor information TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Statement of Operations For the nine months ended March 31, 2017 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries Revenues $ 1 $ - $ 21,751 $ - $ 21,752 Expenses (328 ) - (16,370 ) - (16,698 ) Equity losses of affiliates (1 ) - (56 ) - (57 ) Interest expense, net (1,246 ) (572 ) (58 ) 967 (909 ) Interest income 3 4 987 (967 ) 27 Earnings from subsidiary entities 5,358 3,062 - (8,420 ) - Other, net (226 ) 1 (16 ) - (241 ) Income from continuing operations before income tax expense 3,561 2,495 6,238 (8,420 ) 3,874 Income tax expense (1,067 ) - (1,870 ) 1,776 (1,161 ) Income from continuing operations 2,494 2,495 4,368 (6,644 ) 2,713 Loss from discontinued operations, net of tax - (19 ) - - (19 ) Net income 2,494 2,476 4,368 (6,644 ) 2,694 Less: Net income attributable to noncontrolling interests - - (218 ) - (218 ) Net income attributable to Twenty-First Century Fox stockholders $ 2,494 $ 2,476 $ 4,150 $ (6,644 ) $ 2,476 Comprehensive income attributable to Twenty-First Century Fox stockholders $ 2,249 $ 2,425 $ 4,011 $ (6,260 ) $ 2,425 See notes to supplemental guarantor information TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Balance Sheet As of March 31, 2018 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries ASSETS Current assets Cash and cash equivalents $ 1,832 $ 3,636 $ 1,904 $ - $ 7,372 Receivables, net 17 - 6,889 (1 ) 6,905 Inventories, net - - 3,645 - 3,645 Other 65 - 674 - 739 Total current assets 1,914 3,636 13,112 (1 ) 18,661 Non-current assets Receivables, net 13 - 723 - 736 Inventories, net - - 8,002 - 8,002 Property, plant and equipment, net 350 - 1,511 - 1,861 Intangible assets, net - - 6,174 - 6,174 Goodwill - - 12,794 - 12,794 Other non-current assets 279 - 1,215 - 1,494 Investments Investments in associated companies and other investments 179 188 3,889 - 4,256 Intragroup investments 111,942 64,297 - (176,239 ) - Total investments 112,121 64,485 3,889 (176,239 ) 4,256 Total assets $ 114,677 $ 68,121 $ 47,420 $ (176,240 ) $ 53,978 LIABILITIES AND EQUITY Current liabilities Borrowings $ 1,300 $ - $ 238 $ - $ 1,538 Other current liabilities 728 380 6,454 (1 ) 7,561 Total current liabilities 2,028 380 6,692 (1 ) 9,099 Non-current liabilities Borrowings 17,276 - 1,183 - 18,459 Other non-current liabilities 500 73 4,863 - 5,436 Intercompany 43,612 48,697 (92,309 ) - - Redeemable noncontrolling interests - - 761 - 761 Total equity 51,261 18,971 126,230 (176,239 ) 20,223 Total liabilities and equity $ 114,677 $ 68,121 $ 47,420 $ (176,240 ) $ 53,978 See notes to supplemental guarantor information TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Balance Sheet As of June 30, 2017 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries ASSETS Current assets Cash and cash equivalents $ 40 $ 4,882 $ 1,241 $ - $ 6,163 Receivables, net 6 - 6,472 (1 ) 6,477 Inventories, net - - 3,101 - 3,101 Other 49 - 496 - 545 Total current assets 95 4,882 11,310 (1 ) 16,286 Non-current assets Receivables, net 13 - 530 - 543 Inventories, net - - 7,452 - 7,452 Property, plant and equipment, net 297 - 1,484 - 1,781 Intangible assets, net - - 6,574 - 6,574 Goodwill - - 12,792 - 12,792 Other non-current assets 261 - 1,133 - 1,394 Investments Investments in associated companies and other investments 179 37 3,686 - 3,902 Intragroup investments 105,516 59,926 - (165,442 ) - Total investments 105,695 59,963 3,686 (165,442 ) 3,902 Total assets $ 106,361 $ 64,845 $ 44,961 $ (165,443 ) $ 50,724 LIABILITIES AND EQUITY Current liabilities Borrowings $ 350 $ - $ 107 $ - $ 457 Other current liabilities 643 72 6,067 (1 ) 6,781 Total current liabilities 993 72 6,174 (1 ) 7,238 Non-current liabilities Borrowings 18,217 - 1,239 - 19,456 Other non-current liabilities 522 - 5,876 - 6,398 Intercompany 39,629 49,051 (88,680 ) - - Redeemable noncontrolling interests - - 694 - 694 Total equity 47,000 15,722 119,658 (165,442 ) 16,938 Total liabilities and equity $ 106,361 $ 64,845 $ 44,961 $ (165,443 ) $ 50,724 See notes to supplemental guarantor information TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Statement of Cash Flows For the nine months ended March 31, 2018 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries OPERATING ACTIVITIES Net cash provided by (used in) operating activities from continuing operations $ 2,031 $ (913 ) $ 1,084 $ - $ 2,202 INVESTING ACTIVITIES Property, plant and equipment (73 ) - (270 ) - (343 ) Investments (77 ) - - - (77 ) Net cash used in investing activities from continuing operations (150 ) - (270 ) - (420 ) FINANCING ACTIVITIES Borrowings - - 1,550 - 1,550 Repayment of borrowings - - (1,479 ) - (1,479 ) Dividends paid and distributions - (333 ) (246 ) - (579 ) Other financing activities, net (47 ) - (22 ) - (69 ) Net cash used in financing activities from continuing operations (47 ) (333 ) (197 ) - (577 ) Discontinued operations Net decrease in cash and cash equivalents from discontinued operations (42 ) - - - (42 ) Net increase (decrease) in cash and cash equivalents 1,792 (1,246 ) 617 - 1,163 Cash and cash equivalents, beginning of year 40 4,882 1,241 - 6,163 Exchange movement on cash balances - - 46 - 46 Cash and cash equivalents, end of period $ 1,832 $ 3,636 $ 1,904 $ - $ 7,372 See notes to supplemental guarantor information TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Statement of Cash Flows For the nine months ended March 31, 2017 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries OPERATING ACTIVITIES Net cash (used in) provided by operating activities from continuing operations $ (875 ) $ 3,101 $ 201 $ - $ 2,427 INVESTING ACTIVITIES Property, plant and equipment (10 ) - (192 ) - (202 ) Investments (95 ) - (71 ) - (166 ) Net cash used in investing activities from continuing operations (105 ) - (263 ) - (368 ) FINANCING ACTIVITIES Borrowings 842 - 37 - 879 Repayment of borrowings (400 ) - (146 ) - (546 ) Repurchase of shares - (619 ) - - (619 ) Dividends paid and distributions - (335 ) (187 ) - (522 ) Other financing activities, net (53 ) - (19 ) - (72 ) Net cash provided by (used in) financing activities from continuing operations 389 (954 ) (315 ) - (880 ) Discontinued operations Net decrease in cash and cash equivalents from discontinued operations (21 ) - - - (21 ) Net (decrease) increase in cash and cash equivalents (612 ) 2,147 (377 ) - 1,158 Cash and cash equivalents, beginning of year 661 2,019 1,744 - 4,424 Exchange movement on cash balances - - (10 ) - (10 ) Cash and cash equivalents, end of period $ 49 $ 4,166 $ 1,357 $ - $ 5,572 See notes to supplemental guarantor information TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Notes to Supplemental Guarantor Information (1) Investments in the Company’s subsidiaries, for purposes of the supplemental consolidating presentation, are accounted for by their parent companies under the equity method of accounting whereby earnings of subsidiaries are reflected in the respective parent company’s investment account and earnings. (2) The guarantees of 21CFA’s senior public indebtedness constitute senior indebtedness of the Company, and rank pari passu with all present and future senior indebtedness of the Company. Because the factual basis underlying the obligations created pursuant to the various facilities and other obligations constituting senior indebtedness of the Company differ, it is not possible to predict how a court in bankruptcy would accord priorities among the obligations of the Company. 1 |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The Unaudited Consolidated Financial Statements include the accounts of Twenty-First Century Fox. All significant intercompany accounts and transactions have been eliminated in consolidation, including the intercompany portion of transactions with equity method investees |
Investments | Investments in and advances to entities or joint ventures in which the Company has significant influence, but less than a controlling voting interest, are accounted for using the equity method. Investments in which the Company has no significant influence are designated as available-for-sale investments if readily determinable market values are available. If an investment’s fair value is not readily determinable, the Company accounts for its investment at cost. |
Use of Estimates | The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts that are reported in the consolidated financial statements and accompanying disclosures. Actual results may differ from those estimates. |
Reclassifications and Adjustments | Certain fiscal 2017 amounts have been reclassified to conform to the fiscal 2018 presentation. Unless indicated otherwise, the information in the notes to the Unaudited Consolidated Financial Statements relates to the Company’s continuing operations. The Company has reclassified certain fiscal 2017 amounts for development and certain other costs from Selling, general and administrative to Operating expenses within the Consolidated Statement of Operations to conform to the fiscal 2018 presentation. These reclassifications did not affect previously reported Revenue, Income from continuing operations before income tax (expense) benefit or Net income in the Consolidated Statement of Operations. |
Recently Adopted and Recently Issued Accounting Guidance and U.S. Tax Reform | Recently Adopted and Recently Issued Accounting Guidance and U.S. Tax Reform Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). The amendments in ASU 2016-09 simplify various aspects related to how share-based payments are accounted for and presented in the financial statements, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. On July 1, 2017, the Company adopted ASU 2016-09. In accordance with ASU 2016-09, the Company will prospectively recognize all excess tax benefits and tax deficiencies in Income tax (expense) benefit in the Statements of Operations. In the statement of cash flows, all excess tax benefits are presented retrospectively in Net cash provided by operating activities from continuing operations. In addition, the Company retrospectively adopted the guidance that requires cash paid by the Company when directly withholding shares for tax withholding purposes to be classified as a financing activity in the statement of cash flows. The adoption of ASU 2016-09 resulted in an increase in Net cash provided by operating activities from continuing operations and a corresponding increase in Net cash used in financing activities from continuing operations in the Statement of Cash Flows for fiscal 2017. The other aspects of ASU 2016-09 did not have a material effect on the Company’s consolidated financial statements. On July 1, 2017, the Company early adopted ASU 2017-07, “Compensation–Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”). ASU 2017-07 requires an employer to report the service cost component of net benefit cost in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. ASU 2017-07 did not have a material effect on the Company’s consolidated financial statements. Issued In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, ASU 2014-09 requires additional disclosure around the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 will be effective for the Company for annual and interim reporting periods beginning July 1, 2018. The Company expects to apply ASU 2014-09 on a modified retrospective basis with the cumulative effect, if any, of initially applying the new guidance recognized at the date of initial application as an adjustment to opening retained earnings. The Company has substantially completed its review of contracts for each of the Company’s significant revenue streams and does not expect a material impact on its consolidated financial statements as a result of its adoption of ASU 2014-09. The Company expects that the new standard will impact the timing of revenue recognition for renewals or extensions of existing licensing agreements for intellectual property, which upon adoption will be recognized as revenue once the customer can begin to use and benefit from the license rather than when the agreement is extended or renewed, under historical GAAP. The new standard will require the Company’s Filmed Entertainment segment to recognize revenues from certain television license deals earlier as opposed to recognizing those license fees over the term of the licenses. Conversely, revenues from certain of the Filmed Entertainment segment’s trademark licensing deals will be recognized over the license terms as opposed to recognition at inception as under historical GAAP. In addition, the Company is implementing appropriate changes to the Company’s processes, systems and controls to support the recognition and disclosure requirements under the new standard. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”). The objective of ASU 2017-12 is to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. In addition, ASU 2017-12 simplifies the assessment of hedge effectiveness. ASU 2017-12 is effective for the Company for annual and interim reporting periods beginning July 1, 2019. Early adoption is permitted in an interim period. The Company is currently evaluating the impact ASU 2017-12 will have on its consolidated financial statements. U.S. Tax Reform On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act significantly revises the future ongoing U.S. corporate income tax by, among other things, lowering U.S. corporate income tax rates and implementing a territorial tax system. Since the Company has a June 30 fiscal year-end, the lower corporate income tax rate will be phased in, resulting in a U.S. statutory federal rate of approximately 28% for the Company’s fiscal year ending June 30, 2018, and 21% for subsequent fiscal years. As part of the transition to the new territorial tax system, the Tax Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign entities. As of March 31, 2018, the Company has not completed its analysis of the accounting for all the tax effects of the Tax Act. For the nine months ended March 31, 2018, the Company recorded a provisional income tax benefit of $1.3 billion to adjust its net deferred tax liability position in accordance with the Tax Act. The net deferred tax liability represents future tax obligations. Among the Company’s more significant net deferred tax liabilities are basis differences and amortization, and sports rights contracts. The final amount of the adjustment to the net deferred tax liability could be revised based on changes in interpretations of the Tax Act and any updates or changes to estimates based on additional information the Company obtains or analyzes. For the three months ended March 31, 2018, there were no changes to the provisional amount previously recorded. The Company has not recorded a liability for the transition tax to a territorial tax system. The Company is continuing to gather and analyze information to determine the deemed unremitted earnings subject to the transition tax, some of which was not previously needed or not yet accumulated, and the related U.S. tax impacts. The Company currently anticipates recording a provisional amount for the transition tax by the end of the current fiscal year. In February 2018, the FASB issued ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”). The objective of ASU 2018-02 is to eliminate the stranded tax effects resulting from the Tax Act and to improve the usefulness of information reported to financial statement users. ASU 2018-02 is effective for the Company for annual and interim reporting periods beginning July 1, 2019. Early adoption is permitted, including adoption in any interim period. The Company is currently evaluating the impact ASU 2018-02 will have on its consolidated financial statements. In March 2018, the FASB issued ASU 2018-05, “Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118” (“ASU 2018-05”). The objective of ASU 2018-05 is to codify previously-issued SEC guidance allowing for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. There may be adjustments to the provisional amounts recorded during this measurement period and such adjustments could possibly be material. |
Concentrations of Credit Risk | Concentrations of Credit Risk Cash and cash equivalents are maintained with several financial institutions. The Company has deposits held with banks that exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions of reputable credit and, therefore, bear minimal credit risk. The Company’s receivables did not represent significant concentrations of credit risk as of March 31, 2018 or June 30, 2017 due to the wide variety of customers, markets and geographic areas to which the Company’s products and services are sold. The Company monitors its positions with, and the credit quality of, the financial institutions which are counterparties to its financial instruments. The Company is exposed to credit loss in the event of nonperformance by the counterparties to the agreements. As of March 31, 2018, the Company did not anticipate nonperformance by any of the counterparties. |
Receivables, Net | Receivables are presented net of an allowance for returns and doubtful accounts, which is an estimate of amounts that may not be collectible. |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | The Company’s inventories were comprised of the following: As of March 31, 2018 As of June 30, 2017 (in millions) Programming rights Sports programming rights $ 3,845 $ 3,201 Entertainment programming rights 3,355 3,232 Filmed entertainment costs Films Released, less accumulated amortization 1,314 1,112 Completed, not released 27 398 In production 1,522 1,094 In development or preproduction 203 295 - 3,066 2,899 Television productions Released, less accumulated amortization 853 838 In production, development or preproduction 528 383 1,381 1,221 Total filmed entertainment costs, less accumulated amortization (a) 4,447 4,120 Total inventories, net 11,647 10,553 Less: current portion of inventories, net (b) (3,645 ) (3,101 ) Total non-current inventories, net $ 8,002 $ 7,452 (a) Does not include $218 million and $241 million of net intangible film library costs as of March 31, 2018 and June 30, 2017, respectively, which were included in intangible assets subject to amortization in the Consolidated Balance Sheets. (b) Current portion of inventories, net as of March 31, 2018 and June 30, 2017 was comprised of programming rights ($3,591 million and $3,037 million, respectively), DVDs, Blu-rays and other merchandise. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Investments [Abstract] | |
Schedule of Investments | The Company’s investments were comprised of the following: Ownership percentage as of March 31, 2018 As of March 31, 2018 As of June 30, 2017 (in millions) Sky (a)(b) European direct broadcast satellite operator 39% $ 3,485 $ 3,175 Endemol Shine Group (b) Global multi-platform content provider 50% 222 262 Other investments (c) various 549 465 Total investments $ 4,256 $ 3,902 (a) The Company’s investment in Sky had a market value of $12.2 billion as of March 31, 2018 determined using its quoted market price on the London Stock Exchange (a Level 1 measurement as defined in Note 5 – Fair Value). The Company received dividends of approximately $95 million and $170 million from Sky for the nine months ended March 31, 2018 and 2017, respectively. (b) Equity method investments. (c) Includes an investment of $187 million in available-for-sale securities as of March 31, 2018 (See Note 5 – Fair Value). |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Fair Value of Financial Assets (Liabilities) and the Level Used to Measure Them | The following tables present information about financial assets and liabilities carried at fair value on a recurring basis: Fair value measurements As of March 31, 2018 Total Level 1 Level 2 Level 3 (in millions) Assets Investments (a) $ 187 $ 187 $ - $ - Derivatives (b) 153 - 153 - Other (c) 114 - - 114 Redeemable noncontrolling interests (761 ) - - (761 ) Total $ (307 ) $ 187 $ 153 $ (647 ) As of June 30, 2017 Total Level 1 Level 2 Level 3 (in millions) Assets Derivatives (b) $ 48 $ - $ 48 $ - Other (c) 43 - - 43 Liabilities Derivatives (b) (9 ) - (9 ) - Redeemable noncontrolling interests (694 ) - - (694 ) Total $ (612 ) $ - $ 39 $ (651 ) (a) Represents an investment in available-for-sale securities. (b) Represents derivatives associated with the Company’s foreign currency forward and option contracts and interest rate swap contracts. (c) Primarily relates to past acquisitions, including contingent consideration arrangements. |
Schedule of Fair Value and Carrying Value of Borrowings | As of March 31, 2018 As of June 30, 2017 (in millions) Borrowings Fair value $ 23,861 $ 23,853 Carrying value $ 19,997 $ 19,913 |
Foreign Currency Contracts | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Schedule of Financial Instruments Used to Hedge Certain Exposures | The Company uses foreign currency forward contracts primarily to hedge certain exposures to foreign currency exchange rate risks associated with revenues and the cost of producing or acquiring films and television programming. The Company also entered into a foreign currency option contract to limit its foreign currency exchange rate risk in connection with the Sky Acquisition. For accounting purposes, the option contract does not qualify for hedge accounting and therefore has been treated as an economic hedge (See Note 2 – Acquisitions, Disposals and Other Transactions under the heading “Sky Acquisition”). As of March 31, 2018 As of June 30, 2017 (in millions) Cash Flow Hedges Notional amount $ 107 $ 209 Fair value $ 2 $ - For foreign currency forward contracts designated as cash flow hedges, the Company expects to reclassify the cumulative changes in fair values, included in Accumulated other comprehensive loss, within the next As of March 31, 2018 As of June 30, 2017 (in millions) Economic Hedges Notional amount (a) $ 12,794 $ 12,371 Fair value (a) $ 143 $ 38 (a) Includes the foreign currency option contract to limit the foreign currency exchange rate risk in connection with the Sky Acquisition. The foreign currency option contract has a notional amount of $12.8 billion and consists of the foreign currency option and a premium payable of approximately $400 million due on the option expiration date. As of March 31, 2018, the foreign currency option had a fair value of $143 million. |
Interest Rate Swap Contracts | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Schedule of Financial Instruments Used to Hedge Certain Exposures | The Company uses interest rate swap contracts to hedge certain exposures to interest rate risks associated with certain borrowings. As of March 31, 2018 As of June 30, 2017 (in millions) Cash Flow Hedges Notional amount $ 621 $ 663 Fair value $ 8 $ 1 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Stockholders Equity Note [Abstract] | |
Schedule of Changes in Stockholders' Equity | The following tables summarize changes in stockholders’ equity: For the three months ended March 31, 2018 For the nine months ended March 31, 2018 Twenty-First Century Fox stockholders Noncontrolling interests Total equity Twenty-First Century Fox stockholders Noncontrolling interests Total equity (in millions) Balance, beginning of period $ 18,389 $ 1,242 $ 19,631 $ 15,722 $ 1,216 $ 16,938 Net income 858 34 (a) 892 3,544 107 (a) 3,651 Other comprehensive (loss) income (50 ) 9 (41 ) 319 22 341 Issuance of shares 1 - 1 42 - 42 Dividends declared (334 ) - (334 ) (667 ) - (667 ) Other 107 (33 ) (b) 74 11 (93 ) (b) (82 ) Balance, end of period $ 18,971 $ 1,252 $ 20,223 $ 18,971 $ 1,252 $ 20,223 For the three months ended March 31, 2017 For the nine months ended March 31, 2017 Twenty-First Century Fox stockholders Noncontrolling interests Total equity Twenty-First Century Fox stockholders Noncontrolling interests Total equity (in millions) Balance, beginning of period $ 14,340 $ 1,215 $ 15,555 $ 13,661 $ 1,220 $ 14,881 Net income 799 28 (a) 827 2,476 105 (a) 2,581 Other comprehensive income (loss) 187 4 191 (51 ) (16 ) (67 ) Issuance (cancellation) of shares, net 1 - 1 (527 ) - (527 ) Dividends declared (333 ) - (333 ) (668 ) - (668 ) Other 23 (12 ) (b) 11 126 (74 ) (b) 52 - Balance, end of period $ 15,017 $ 1,235 $ 16,252 $ 15,017 $ 1,235 $ 16,252 (a) Net income attributable to noncontrolling interests excludes $51 million and $43 million for the three months ended March 31, 2018 and 2017, respectively, and $128 million and $113 million for the nine months ended March 31, 2018 and 2017, respectively, relating to redeemable noncontrolling interests which are reflected in temporary equity. (b) Other activity attributable to noncontrolling interests excludes $(2) million for the three months ended March 31, 2018 and 2017, and $(61) million and $(46) million for the nine months ended March 31, 2018 and 2017, respectively, relating to redeemable noncontrolling interests. |
Schedule of Activity within Other Comprehensive Income (Loss) | The following tables summarize the activity within Other comprehensive income (loss): For the three months ended March 31, 2018 For the nine months ended March 31, 2018 Before tax Tax (provision) benefit Net of tax Before tax Tax (provision) benefit Net of tax (in millions) Foreign currency translation adjustments Unrealized gains $ 21 $ - $ 21 $ 100 $ - $ 100 Other comprehensive income $ 21 $ - $ 21 $ 100 $ - $ 100 Cash flow hedges Unrealized gains $ 7 $ (2 ) $ 5 $ 16 $ (5 ) $ 11 Reclassifications realized in net income (a) (2 ) - (2 ) (13 ) 4 (9 ) Other comprehensive income $ 5 $ (2 ) $ 3 $ 3 $ (1 ) $ 2 (Losses) gains on securities Unrealized (losses) gains $ (122 ) $ 28 $ (94 ) $ 161 $ (76 ) $ 85 Other comprehensive (loss) income $ (122 ) $ 28 $ (94 ) $ 161 $ (76 ) $ 85 Benefit plan adjustments Unrealized losses (b) $ (9 ) $ 2 $ (7 ) $ (9 ) $ 2 $ (7 ) Reclassification adjustments realized in net income (c) 14 (3 ) 11 120 (42 ) 78 Other comprehensive income $ 5 $ (1 ) $ 4 $ 111 $ (40 ) $ 71 Equity method investments Unrealized gains and reclassifications $ 45 $ (20 ) $ 25 $ 129 $ (46 ) $ 83 Other comprehensive income $ 45 $ (20 ) $ 25 $ 129 $ (46 ) $ 83 For the three months ended March 31, 2017 For the nine months ended March 31, 2017 Before tax Tax (provision) benefit Net of tax Before tax Tax (provision) benefit Net of tax (in millions) Foreign currency translation adjustments Unrealized gains (losses) $ 111 $ - $ 111 $ (40 ) $ - $ (40 ) Other comprehensive income (loss) $ 111 $ - $ 111 $ (40 ) $ - $ (40 ) Cash flow hedges Unrealized gains $ 1 $ - $ 1 $ 14 $ (5 ) $ 9 Reclassifications realized in net income (a) 9 (4 ) 5 16 (6 ) 10 Other comprehensive income $ 10 $ (4 ) $ 6 $ 30 $ (11 ) $ 19 Benefit plan adjustments Unrealized gains (b) $ 104 $ (38 ) $ 66 $ 104 $ (38 ) $ 66 Reclassification adjustments realized in net income (c) 13 (5 ) 8 81 (30 ) 51 Other comprehensive income $ 117 $ (43 ) $ 74 $ 185 $ (68 ) $ 117 Equity method investments Unrealized gains (losses) and reclassifications $ 5 $ (5 ) $ - $ (218 ) $ 55 $ (163 ) Other comprehensive income (loss) $ 5 $ (5 ) $ - $ (218 ) $ 55 $ (163 ) (a) Reclassifications of amounts related to hedging activity are included in Revenues, Operating expenses, Selling, general and administrative expenses, Interest expense, net or Other, net, as appropriate, in the Unaudited Consolidated Statements of Operations (See Note 5 – Fair Value for additional information regarding hedging activity). (b) For the three and nine months ended March 31, 2018 and 2017, the Company recorded a net unrealized actuarial (loss) gain from the remeasurement of its pension plan. (c) Reclassifications of amounts related to benefit plan adjustments are included in Other, net in the Unaudited Consolidated Statements of Operations. |
Computation of Numerator for Earnings Per Share | The following table sets forth the Company’s computation of Income from continuing operations attributable to Twenty-First Century Fox stockholders: For the three months ended March 31, For the nine months ended March 31, 2018 2017 2018 2017 (in millions) Income from continuing operations $ 961 $ 882 $ 3,786 $ 2,713 Less: Net income attributable to noncontrolling interests (85 ) (71 ) (235 ) (218 ) Income from continuing operations attributable to Twenty-First Century Fox stockholders $ 876 $ 811 $ 3,551 $ 2,495 |
Schedule of Dividends Declared | The following table summarizes the dividends declared per share on both the Company’s Class A Common Stock and the Class B Common Stock: For the three months ended March 31, For the nine months ended March 31, 2018 2017 2018 2017 Cash dividend per share $ 0.18 $ 0.18 $ 0.36 $ 0.36 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Equity-Based Compensation | The following table summarizes the Company’s equity-based compensation activity: For the three months ended March 31, For the nine months ended March 31, 2018 2017 2018 2017 (in millions) Equity-based compensation $ 118 $ 35 $ 184 $ 97 Intrinsic value of all settled equity-based awards $ - $ 1 $ 74 $ 70 = Tax benefit on vested equity-based awards $ - $ - $ 24 $ 25 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Reconciliation from Income from Continuing Operations Before Income Tax (Expense) Benefit to Total Segment OIBDA | The following table reconciles Income from continuing operations before income tax (expense) benefit to Total Segment OIBDA for the three and nine months ended March 31, 2018 and 2017: For the three months ended March 31, For the nine months ended March 31, 2018 2017 2018 2017 (in millions) Income from continuing operations before income tax (expense) benefit $ 1,331 $ 1,252 $ 3,329 $ 3,874 Add Amortization of cable distribution investments 14 15 57 46 Depreciation and amortization 145 140 429 410 Impairment and restructuring charges 34 37 58 213 Equity losses of affiliates 86 51 59 57 Interest expense, net 311 310 936 909 Interest income (10 ) (9 ) (29 ) (27 ) Other, net (17 ) 142 284 241 Total Segment OIBDA $ 1,894 $ 1,938 $ 5,123 $ 5,723 |
Reconciliation of Revenues and Segment OIBDA from Segments to Consolidated | The following tables set forth the Company’s Revenues and Segment OIBDA for the three and nine months ended March 31, 2018 and 2017: For the three months ended March 31, For the nine months ended March 31, 2018 2017 2018 2017 (in millions) Revenues Cable Network Programming $ 4,419 $ 4,024 $ 13,020 $ 11,801 Television 1,149 1,690 4,020 4,646 Filmed Entertainment 2,243 2,256 6,452 6,432 Other, Corporate and Eliminations (391 ) (406 ) (1,033 ) (1,127 ) Total revenues $ 7,420 $ 7,564 $ 22,459 $ 21,752 Segment OIBDA Cable Network Programming $ 1,684 $ 1,446 $ 4,560 $ 4,160 Television 78 190 256 757 Filmed Entertainment 286 373 673 1,073 Other, Corporate and Eliminations (154 ) (71 ) (366 ) (267 ) Total Segment OIBDA $ 1,894 $ 1,938 $ 5,123 $ 5,723 |
Reconciliation of Depreciation and Amortization from Segments to Consolidated | For the three months ended March 31, For the nine months ended March 31, 2018 2017 2018 2017 (in millions) Depreciation and amortization Cable Network Programming $ 89 $ 87 $ 260 $ 252 Television 27 28 81 85 Filmed Entertainment 21 19 67 59 Other, Corporate and Eliminations 8 6 21 14 Total depreciation and amortization $ 145 $ 140 $ 429 $ 410 |
Reconciliation of Assets from Segments to Consolidated | As of March 31, 2018 As of June 30, 2017 (in millions) Assets Cable Network Programming $ 26,070 $ 24,913 Television 6,765 6,775 Filmed Entertainment 11,263 10,312 Other, Corporate and Eliminations 5,624 4,822 Investments 4,256 3,902 Total assets $ 53,978 $ 50,724 |
Reconciliation of Revenue from Components to Consolidated | Revenues by Component For the three months ended March 31, For the nine months ended March 31, 2018 2017 2018 2017 (in millions) Revenues Affiliate fee $ 3,507 $ 3,160 $ 9,995 $ 8,989 Advertising 1,642 2,203 5,761 6,338 Content 2,148 2,078 6,307 5,979 Other 123 123 396 446 Total revenues $ 7,420 $ 7,564 $ 22,459 $ 21,752 |
Additional Financial Informat27
Additional Financial Information (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Components of Other, net | The following table sets forth the components of Other, net included in the Unaudited Consolidated Statements of Operations: For the three months ended March 31, For the nine months ended March 31, 2018 2017 2018 2017 (in millions) Sky Acquisition related and other transaction costs (a) $ 13 $ (137 ) $ (126 ) $ (170 ) Disney Transaction costs (b) (33 ) - (65 ) - Settlement loss on pension liabilities (c) (4 ) - (90 ) (40 ) Shareholder litigation settlement (d) 68 - 68 - Other (e) (27 ) (5 ) (71 ) (31 ) Total other, net $ 17 $ (142 ) $ (284 ) $ (241 ) (a) The Sky Acquisition related and other transaction costs primarily represent the change in fair value of a foreign currency option contract to limit the foreign currency exchange rate risk in connection with the Sky Acquisition (See Note 2 – Acquisitions, Disposals and Other Transactions under the heading “Sky Acquisition” for further discussion). (b) See Note 2 – Acquisitions, Disposals and Other Transactions under the heading “Disney Transaction/Distribution of New Fox” for further discussion. (c) During the three and nine months ended March 31, 2018, the Company settled a portion of its pension obligations by irrevocably transferring pension liabilities to an insurance company through the purchase of a group annuity contract and through lump sum distributions. These payments, funded with pension plan assets, resulted in pre-tax settlement losses related to the recognition of accumulated deferred actuarial losses. During the nine months ended March 31, 2017, the Company settled a portion of its pension obligations through lump sum distributions, which resulted in a pre-tax settlement loss related to the recognition of accumulated deferred actuarial losses. (d) See Note 9 – Commitments and Contingencies under the heading “Shareholder Litigation” for further discussion. (e) Other for |
Supplemental Cash Flows Information | For the nine months ended March 31, 2018 2017 (in millions) Supplemental cash flows information Cash paid for income taxes $ (759 ) $ (747 ) Cash paid for interest $ (901 ) $ (890 ) |
Supplemental Guarantor Inform28
Supplemental Guarantor Information (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Supplemental Condensed Consolidating Statements of Operations | TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Statement of Operations For the three months ended March 31, 2018 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries Revenues $ 1 $ - $ 7,419 $ - $ 7,420 Expenses (111 ) - (5,608 ) - (5,719 ) Equity losses of affiliates (2 ) - (84 ) - (86 ) Interest expense, net (446 ) (202 ) (21 ) 358 (311 ) Interest income 1 4 363 (358 ) 10 Earnings from subsidiary entities 1,633 1,074 - (2,707 ) - Other, net 38 - (21 ) - 17 Income from continuing operations before income tax expense 1,114 876 2,048 (2,707 ) 1,331 Income tax expense (822 ) - (731 ) 1,183 (370 ) Income from continuing operations 292 876 1,317 (1,524 ) 961 Loss from discontinued operations, net of tax - (18 ) - - (18 ) Net income 292 858 1,317 (1,524 ) 943 Less: Net income attributable to noncontrolling interests - - (85 ) - (85 ) Net income attributable to Twenty-First Century Fox stockholders $ 292 $ 858 $ 1,232 $ (1,524 ) $ 858 Comprehensive income attributable to Twenty-First Century Fox stockholders $ 260 $ 808 $ 1,259 $ (1,519 ) $ 808 TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Statement of Operations For the three months ended March 31, 2017 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries Revenues $ 1 $ - $ 7,563 $ - $ 7,564 Expenses (90 ) - (5,728 ) - (5,818 ) Equity losses of affiliates - - (51 ) - (51 ) Interest expense, net (423 ) (195 ) (19 ) 327 (310 ) Interest income 1 3 332 (327 ) 9 Earnings from subsidiary entities 1,883 1,002 - (2,885 ) - Other, net (140 ) 1 (3 ) - (142 ) Income from continuing operations before income tax expense 1,232 811 2,094 (2,885 ) 1,252 Income tax expense (365 ) - (620 ) 615 (370 ) Income from continuing operations 867 811 1,474 (2,270 ) 882 Loss from discontinued operations, net of tax - (12 ) - - (12 ) Net income 867 799 1,474 (2,270 ) 870 Less: Net income attributable to noncontrolling interests - - (71 ) - (71 ) Net income attributable to Twenty-First Century Fox stockholders $ 867 $ 799 $ 1,403 $ (2,270 ) $ 799 Comprehensive income attributable to Twenty-First Century Fox stockholders $ 1,005 $ 986 $ 1,578 $ (2,583 ) $ 986 TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Statement of Operations For the nine months ended March 31, 2018 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries Revenues $ 1 $ - $ 22,458 $ - $ 22,459 Expenses (287 ) - (17,593 ) - (17,880 ) Equity losses of affiliates (2 ) - (57 ) - (59 ) Interest expense, net (1,312 ) (612 ) (63 ) 1,051 (936 ) Interest income 1 14 1,065 (1,051 ) 29 Earnings from subsidiary entities 6,417 4,149 - (10,566 ) - Other, net (181 ) - (103 ) - (284 ) Income from continuing operations before income tax benefit 4,637 3,551 5,707 (10,566 ) 3,329 Income tax benefit 637 - 784 (964 ) 457 Income from continuing operations 5,274 3,551 6,491 (11,530 ) 3,786 Loss from discontinued operations, net of tax - (7 ) - - (7 ) Net income 5,274 3,544 6,491 (11,530 ) 3,779 Less: Net income attributable to noncontrolling interests - - (235 ) - (235 ) Net income attributable to Twenty-First Century Fox stockholders $ 5,274 $ 3,544 $ 6,256 $ (11,530 ) $ 3,544 Comprehensive income attributable to Twenty-First Century Fox stockholders $ 5,260 $ 3,863 $ 6,420 $ (11,680 ) $ 3,863 TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Statement of Operations For the nine months ended March 31, 2017 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries Revenues $ 1 $ - $ 21,751 $ - $ 21,752 Expenses (328 ) - (16,370 ) - (16,698 ) Equity losses of affiliates (1 ) - (56 ) - (57 ) Interest expense, net (1,246 ) (572 ) (58 ) 967 (909 ) Interest income 3 4 987 (967 ) 27 Earnings from subsidiary entities 5,358 3,062 - (8,420 ) - Other, net (226 ) 1 (16 ) - (241 ) Income from continuing operations before income tax expense 3,561 2,495 6,238 (8,420 ) 3,874 Income tax expense (1,067 ) - (1,870 ) 1,776 (1,161 ) Income from continuing operations 2,494 2,495 4,368 (6,644 ) 2,713 Loss from discontinued operations, net of tax - (19 ) - - (19 ) Net income 2,494 2,476 4,368 (6,644 ) 2,694 Less: Net income attributable to noncontrolling interests - - (218 ) - (218 ) Net income attributable to Twenty-First Century Fox stockholders $ 2,494 $ 2,476 $ 4,150 $ (6,644 ) $ 2,476 Comprehensive income attributable to Twenty-First Century Fox stockholders $ 2,249 $ 2,425 $ 4,011 $ (6,260 ) $ 2,425 |
Supplemental Condensed Consolidating Balance Sheets | TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Balance Sheet As of March 31, 2018 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries ASSETS Current assets Cash and cash equivalents $ 1,832 $ 3,636 $ 1,904 $ - $ 7,372 Receivables, net 17 - 6,889 (1 ) 6,905 Inventories, net - - 3,645 - 3,645 Other 65 - 674 - 739 Total current assets 1,914 3,636 13,112 (1 ) 18,661 Non-current assets Receivables, net 13 - 723 - 736 Inventories, net - - 8,002 - 8,002 Property, plant and equipment, net 350 - 1,511 - 1,861 Intangible assets, net - - 6,174 - 6,174 Goodwill - - 12,794 - 12,794 Other non-current assets 279 - 1,215 - 1,494 Investments Investments in associated companies and other investments 179 188 3,889 - 4,256 Intragroup investments 111,942 64,297 - (176,239 ) - Total investments 112,121 64,485 3,889 (176,239 ) 4,256 Total assets $ 114,677 $ 68,121 $ 47,420 $ (176,240 ) $ 53,978 LIABILITIES AND EQUITY Current liabilities Borrowings $ 1,300 $ - $ 238 $ - $ 1,538 Other current liabilities 728 380 6,454 (1 ) 7,561 Total current liabilities 2,028 380 6,692 (1 ) 9,099 Non-current liabilities Borrowings 17,276 - 1,183 - 18,459 Other non-current liabilities 500 73 4,863 - 5,436 Intercompany 43,612 48,697 (92,309 ) - - Redeemable noncontrolling interests - - 761 - 761 Total equity 51,261 18,971 126,230 (176,239 ) 20,223 Total liabilities and equity $ 114,677 $ 68,121 $ 47,420 $ (176,240 ) $ 53,978 TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Balance Sheet As of June 30, 2017 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries ASSETS Current assets Cash and cash equivalents $ 40 $ 4,882 $ 1,241 $ - $ 6,163 Receivables, net 6 - 6,472 (1 ) 6,477 Inventories, net - - 3,101 - 3,101 Other 49 - 496 - 545 Total current assets 95 4,882 11,310 (1 ) 16,286 Non-current assets Receivables, net 13 - 530 - 543 Inventories, net - - 7,452 - 7,452 Property, plant and equipment, net 297 - 1,484 - 1,781 Intangible assets, net - - 6,574 - 6,574 Goodwill - - 12,792 - 12,792 Other non-current assets 261 - 1,133 - 1,394 Investments Investments in associated companies and other investments 179 37 3,686 - 3,902 Intragroup investments 105,516 59,926 - (165,442 ) - Total investments 105,695 59,963 3,686 (165,442 ) 3,902 Total assets $ 106,361 $ 64,845 $ 44,961 $ (165,443 ) $ 50,724 LIABILITIES AND EQUITY Current liabilities Borrowings $ 350 $ - $ 107 $ - $ 457 Other current liabilities 643 72 6,067 (1 ) 6,781 Total current liabilities 993 72 6,174 (1 ) 7,238 Non-current liabilities Borrowings 18,217 - 1,239 - 19,456 Other non-current liabilities 522 - 5,876 - 6,398 Intercompany 39,629 49,051 (88,680 ) - - Redeemable noncontrolling interests - - 694 - 694 Total equity 47,000 15,722 119,658 (165,442 ) 16,938 Total liabilities and equity $ 106,361 $ 64,845 $ 44,961 $ (165,443 ) $ 50,724 |
Supplemental Condensed Consolidating Statements of Cash Flows | TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Statement of Cash Flows For the nine months ended March 31, 2018 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries OPERATING ACTIVITIES Net cash provided by (used in) operating activities from continuing operations $ 2,031 $ (913 ) $ 1,084 $ - $ 2,202 INVESTING ACTIVITIES Property, plant and equipment (73 ) - (270 ) - (343 ) Investments (77 ) - - - (77 ) Net cash used in investing activities from continuing operations (150 ) - (270 ) - (420 ) FINANCING ACTIVITIES Borrowings - - 1,550 - 1,550 Repayment of borrowings - - (1,479 ) - (1,479 ) Dividends paid and distributions - (333 ) (246 ) - (579 ) Other financing activities, net (47 ) - (22 ) - (69 ) Net cash used in financing activities from continuing operations (47 ) (333 ) (197 ) - (577 ) Discontinued operations Net decrease in cash and cash equivalents from discontinued operations (42 ) - - - (42 ) Net increase (decrease) in cash and cash equivalents 1,792 (1,246 ) 617 - 1,163 Cash and cash equivalents, beginning of year 40 4,882 1,241 - 6,163 Exchange movement on cash balances - - 46 - 46 Cash and cash equivalents, end of period $ 1,832 $ 3,636 $ 1,904 $ - $ 7,372 TWENTY-FIRST CENTURY FOX, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Supplemental Condensed Consolidating Statement of Cash Flows For the nine months ended March 31, 2017 (in millions) 21st Century Fox America, Inc. Twenty-First Century Fox Non-Guarantor Reclassifications and Eliminations Twenty-First Century Fox and Subsidiaries OPERATING ACTIVITIES Net cash (used in) provided by operating activities from continuing operations $ (875 ) $ 3,101 $ 201 $ - $ 2,427 INVESTING ACTIVITIES Property, plant and equipment (10 ) - (192 ) - (202 ) Investments (95 ) - (71 ) - (166 ) Net cash used in investing activities from continuing operations (105 ) - (263 ) - (368 ) FINANCING ACTIVITIES Borrowings 842 - 37 - 879 Repayment of borrowings (400 ) - (146 ) - (546 ) Repurchase of shares - (619 ) - - (619 ) Dividends paid and distributions - (335 ) (187 ) - (522 ) Other financing activities, net (53 ) - (19 ) - (72 ) Net cash provided by (used in) financing activities from continuing operations 389 (954 ) (315 ) - (880 ) Discontinued operations Net decrease in cash and cash equivalents from discontinued operations (21 ) - - - (21 ) Net (decrease) increase in cash and cash equivalents (612 ) 2,147 (377 ) - 1,158 Cash and cash equivalents, beginning of year 661 2,019 1,744 - 4,424 Exchange movement on cash balances - - (10 ) - (10 ) Cash and cash equivalents, end of period $ 49 $ 4,166 $ 1,357 $ - $ 5,572 |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) $ in Billions | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($)Segment | Jun. 30, 2019 | Jun. 30, 2018 | |
Basis of Presentation [Abstract] | |||
Number of Reportable Segments | Segment | 4 | ||
U.S. Tax Reform | |||
Basis of Presentation [Abstract] | |||
Provisional income tax benefit to adjust net deferred tax liabilities | $ | $ 1.3 | ||
Maximum measurement period to finalize recording of related tax impacts | 1 year | ||
Scenario, Forecast | U.S. Tax Reform | |||
Basis of Presentation [Abstract] | |||
U.S. statutory federal rate | 21.00% | 28.00% |
Disney Transaction_Distribution
Disney Transaction/Distribution of New Fox (Narrative) (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | |
Feb. 28, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2019USD ($)shares$ / shares | Mar. 31, 2018USD ($) | |
Retention Plan | |||||
Merger Distribution [Line Items] | |||||
Cash bonus for certain employees | $ 110 | ||||
Percentage of cash bonus payable at the time of Initial Merger | 50.00% | ||||
Percentage of cash bonus payable on the tenth month anniversary of initial merger | 50.00% | ||||
Compensation expenses | $ 85 | $ 85 | |||
Retention Plan | Selling, General and Administrative | |||||
Merger Distribution [Line Items] | |||||
Compensation expenses | $ 60 | $ 60 | |||
Merger Agreement | |||||
Merger Distribution [Line Items] | |||||
Merger Agreement, amount payable by acquirer under certain circumstances | $ 2,500 | ||||
Merger Agreement, amount may be required to be paid by either party under certain circumstances | 1,500 | ||||
Bridge Commitment Letter | 21st Century Fox America, Inc. | |||||
Merger Distribution [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 9,000 | ||||
Line of credit facility, commitment fee percentage on undrawn funds | 0.10% | ||||
Maximum | |||||
Merger Distribution [Line Items] | |||||
Merger and separation expected completion period from date of announcement | 18 months | ||||
Minimum | |||||
Merger Distribution [Line Items] | |||||
Merger and separation expected completion period from date of announcement | 12 months | ||||
Scenario, Forecast | |||||
Merger Distribution [Line Items] | |||||
Merger Agreement, exchange ratio | shares | 0.2745 | ||||
Common stock, par value | $ / shares | $ 0.01 | ||||
Merger Agreement, estimated transaction tax amount that the initial exchange ratio was based on | $ 8,500 | ||||
Scenario, Forecast | Maximum | |||||
Merger Distribution [Line Items] | |||||
Merger Agreement, final estimated transaction tax amount that would not increase or decrease the exchange ratio | 8,500 | ||||
Scenario, Forecast | Minimum | |||||
Merger Distribution [Line Items] | |||||
Merger Agreement, final estimated transaction tax amount that would not increase or decrease the exchange ratio | 6,500 | ||||
New Fox | Scenario, Forecast | |||||
Merger Distribution [Line Items] | |||||
Merger Agreement, dividend amount | 8,500 | ||||
New Fox | Scenario, Forecast | Maximum | |||||
Merger Distribution [Line Items] | |||||
Merger Agreement, amount of cash payment from the acquirer reflecting the difference between the final estimate of the tax liabilities and the estimate of the tax liabilities the exchange ratio was based on if the final estimate of the tax liabilities is lower than the initial estimate | $ 2,000 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) £ / shares in Units, $ in Millions | 1 Months Ended | 2 Months Ended | 6 Months Ended | 9 Months Ended | |
Dec. 31, 2016USD ($) | Jul. 31, 2018USD ($) | Dec. 31, 2018USD ($)TelevisionStation | Mar. 31, 2018 | Dec. 31, 2016GBP (£)£ / shares | |
21st Century Fox America, Inc. | Bridge Credit Agreement | |||||
Business Acquisition [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 17,000 | £ 12,200,000,000 | |||
Line of credit facility, commitment fee percentage on undrawn funds | 0.10% | ||||
Line of credit facility, duration fee payable on the 90th day after funding of the loans as a percentage of the aggregate principal amount of the advances and undrawn commitments outstanding at that time | 0.50% | 0.50% | |||
Line of credit facility, duration fee payable on the 180th day after funding of the loans as a percentage of the aggregate principal amount of the advances and undrawn commitments outstanding at that time | 0.75% | 0.75% | |||
Line of credit facility, duration fee payable on the 270th day after funding of the loans as a percentage of the aggregate principal amount of the advances and undrawn commitments outstanding at that time | 1.00% | 1.00% | |||
London Interbank Offered Rate (LIBOR) | 21st Century Fox America, Inc. | Minimum | Bridge Credit Agreement | |||||
Business Acquisition [Line Items] | |||||
Line of credit facility, applicable Margin on advances | 1.125% | ||||
London Interbank Offered Rate (LIBOR) | 21st Century Fox America, Inc. | Maximum | Bridge Credit Agreement | |||||
Business Acquisition [Line Items] | |||||
Line of credit facility, applicable Margin on advances | 1.875% | ||||
Television Stations Acquisition | Scenario, Forecast | |||||
Business Acquisition [Line Items] | |||||
Number of television stations to be acquired | TelevisionStation | 7 | ||||
Business acquisition, cash to acquire businesses | $ | $ 910 | ||||
Number of options to be granted to the seller to acquire television stations from the Company | TelevisionStation | 2 | ||||
Sky | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage | 39.00% | 39.00% | |||
Date of acquisition agreement | Dec. 31, 2016 | ||||
Cash offer, share price | £ / shares | £ 10.75 | ||||
Sky | Scenario, Forecast | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, cash to acquire businesses | $ | $ 16,000 |
Disposals (Narrative) (Details)
Disposals (Narrative) (Details) $ in Millions | 1 Months Ended |
Jul. 31, 2017USD ($) | |
Disposals | |
Proceeds received from the FCC's reverse auction for broadcast spectrum | $ 350 |
Inventories, Net (Schedule of I
Inventories, Net (Schedule of Inventories, Net) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Jun. 30, 2017 | |
Programming rights | |||
Sports programming rights | $ 3,845 | $ 3,201 | |
Entertainment programming rights | 3,355 | 3,232 | |
Films | |||
Released, less accumulated amortization | 1,314 | 1,112 | |
Completed, not released | 27 | 398 | |
In production | 1,522 | 1,094 | |
In development or preproduction | 203 | 295 | |
Films, Total | 3,066 | 2,899 | |
Television productions | |||
Released, less accumulated amortization | 853 | 838 | |
In production, development or preproduction | 528 | 383 | |
Television productions, Total | 1,381 | 1,221 | |
Total filmed entertainment costs, less accumulated amortization | [1] | 4,447 | 4,120 |
Total inventories, net | 11,647 | 10,553 | |
Less: current portion of inventories, net | [2] | (3,645) | (3,101) |
Total non-current inventories, net | $ 8,002 | $ 7,452 | |
[1] | Does not include $218 million and $241 million of net intangible film library costs as of March 31, 2018 and June 30, 2017, respectively, which were included in intangible assets subject to amortization in the Consolidated Balance Sheets. | ||
[2] | Current portion of inventories, net as of March 31, 2018 and June 30, 2017 was comprised of programming rights ($3,591 million and $3,037 million, respectively), DVDs, Blu-rays and other merchandise. |
Inventories, Net (Schedule of34
Inventories, Net (Schedule of Inventories, Net) (Parenthetical) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Jun. 30, 2017 | |
Inventory [Line Items] | |||
Current portion of inventories, net | [1] | $ 3,645 | $ 3,101 |
Acquired Film Libraries | |||
Inventory [Line Items] | |||
Intangible assets subject to amortization, net | 218 | 241 | |
Programming Rights | |||
Inventory [Line Items] | |||
Current portion of inventories, net | $ 3,591 | $ 3,037 | |
[1] | Current portion of inventories, net as of March 31, 2018 and June 30, 2017 was comprised of programming rights ($3,591 million and $3,037 million, respectively), DVDs, Blu-rays and other merchandise. |
Investments (Schedule of Invest
Investments (Schedule of Investments) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Jun. 30, 2017 | |
Investment Holdings [Line Items] | |||
Other investments | [1] | $ 549 | $ 465 |
Total investments | $ 4,256 | 3,902 | |
Sky | |||
Investment Holdings [Line Items] | |||
Ownership percentage | [2],[3] | 39.00% | |
Equity method investments | [2],[3] | $ 3,485 | 3,175 |
Endemol Shine Group | |||
Investment Holdings [Line Items] | |||
Ownership percentage | [2] | 50.00% | |
Equity method investments | [2] | $ 222 | $ 262 |
[1] | Includes an investment of $187 million in available-for-sale securities as of March 31, 2018 (See Note 5 – Fair Value). | ||
[2] | Equity method investments. | ||
[3] | The Company’s investment in Sky had a market value of $12.2 billion as of March 31, 2018 determined using its quoted market price on the London Stock Exchange (a Level 1 measurement as defined in Note 5 – Fair Value). The Company received dividends of approximately $95 million and $170 million from Sky for the nine months ended March 31, 2018 and 2017, respectively. |
Investments (Schedule of Inve36
Investments (Schedule of Investments) (Parenthetical) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Investment Holdings [Line Items] | |||
Cash distributions received from affiliates | $ 110 | $ 182 | |
Fair value measurements recurring | |||
Investment Holdings [Line Items] | |||
Investment in available-for-sale securities | [1] | 187 | |
Sky | |||
Investment Holdings [Line Items] | |||
Cash distributions received from affiliates | 95 | $ 170 | |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Fair value measurements recurring | |||
Investment Holdings [Line Items] | |||
Investment in available-for-sale securities | [1] | 187 | |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Sky | |||
Investment Holdings [Line Items] | |||
Market value of equity method investments | $ 12,200 | ||
[1] | Represents an investment in available-for-sale securities. |
Investments (Narratives) (Detai
Investments (Narratives) (Details) - Hulu - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |
Aug. 31, 2016 | Dec. 31, 2018 | Mar. 31, 2018 | |
Investment Holdings [Line Items] | |||
Equity Method Investment, percentage of equity interest issued | 10.00% | ||
Equity method investment, ownership percentage | 30.00% | ||
Equity method investment, put/call period | 36 months | ||
Investments in equity affiliates | $ 315 | ||
Scenario, Forecast | |||
Investment Holdings [Line Items] | |||
Investments in equity affiliates | $ 340 | ||
Maximum | |||
Investment Holdings [Line Items] | |||
Additional capital contribution required in the event the equity investee is required to fund the repurchase of shares | $ 300 |
Fair Value (Schedule of Financi
Fair Value (Schedule of Financial Assets and Liabilities Carried at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Jun. 30, 2017 | |
Liabilities | |||
Redeemable noncontrolling interests | $ (761) | $ (694) | |
Fair value measurements recurring | |||
Assets | |||
Investments | [1] | 187 | |
Derivatives | [2] | 153 | 48 |
Other | [3] | 114 | 43 |
Liabilities | |||
Derivatives | [2] | (9) | |
Redeemable noncontrolling interests | (761) | (694) | |
Total | (307) | (612) | |
Fair value measurements recurring | Quoted Prices in Active Markets for Identical Instruments (Level 1) | |||
Assets | |||
Investments | [1] | 187 | |
Derivatives | [2] | 0 | 0 |
Other | [3] | 0 | 0 |
Liabilities | |||
Derivatives | [2] | 0 | |
Redeemable noncontrolling interests | 0 | 0 | |
Total | 187 | 0 | |
Fair value measurements recurring | (Level 2) | |||
Assets | |||
Investments | [1] | 0 | |
Derivatives | [2] | 153 | 48 |
Other | [3] | 0 | 0 |
Liabilities | |||
Derivatives | [2] | (9) | |
Redeemable noncontrolling interests | 0 | 0 | |
Total | 153 | 39 | |
Fair value measurements recurring | (Level 3) | |||
Assets | |||
Investments | [1] | 0 | |
Derivatives | [2] | 0 | 0 |
Other | [3] | 114 | 43 |
Liabilities | |||
Derivatives | [2] | 0 | |
Redeemable noncontrolling interests | (761) | (694) | |
Total | $ (647) | $ (651) | |
[1] | Represents an investment in available-for-sale securities. | ||
[2] | Represents derivatives associated with the Company’s foreign currency forward and option contracts and interest rate swap contracts. | ||
[3] | Primarily relates to past acquisitions, including contingent consideration arrangements. |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) | 9 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Minority shareholder's put right exercisable period | One minority shareholder’s put right will become exercisable in July 2018 and two minority shareholders’ put rights will become exercisable in March 2019. The remaining redeemable noncontrolling interests are currently not exercisable. |
Foreign Currency Cash Flow Hedges [Abstract] | |
Number of years to reclassify the cumulative change in fair value of cash flow hedges, foreign currency forward contracts | 1 year |
Interest Rate Cash Flow Hedges [Abstract] | |
Number of years to reclassify the cumulative change in fair value of cash flow hedges, interest rate swap contracts | 2 years |
Fair Value (Borrowings) (Detail
Fair Value (Borrowings) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Jun. 30, 2017 |
Fair Value Disclosures [Abstract] | ||
Fair value | $ 23,861 | $ 23,853 |
Carrying value | $ 19,997 | $ 19,913 |
Fair Value (Schedule of Finan41
Fair Value (Schedule of Financial Instruments Used to Hedge Certain Exposures to Foreign Currency Exchange Rate Risks) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Jun. 30, 2017 | |
Foreign Currency Forward Contracts | Cash Flow Hedges | Designated as Hedging Instrument | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | $ 107 | $ 209 | |
Fair value | 2 | 0 | |
Foreign Currency Contracts | Economic Hedges | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | [1] | 12,794 | 12,371 |
Fair value | [1] | $ 143 | $ 38 |
[1] | Includes the foreign currency option contract to limit the foreign currency exchange rate risk in connection with the Sky Acquisition. The foreign currency option contract has a notional amount of $12.8 billion and consists of the foreign currency option and a premium payable of approximately $400 million due on the option expiration date. As of March 31, 2018, the foreign currency option had a fair value of $143 million. |
Fair Value (Schedule of Finan42
Fair Value (Schedule of Financial Instruments Used to Hedge Certain Exposures to Foreign Currency Exchange Rate Risks) (Parenthetical) (Details) - Foreign Currency Option Contract - Economic Hedges - Sky $ in Millions | Mar. 31, 2018USD ($) |
Derivatives Fair Value [Line Items] | |
Notional amount | $ 12,800 |
Foreign currency option premium payable | 400 |
Fair value | $ 143 |
Fair Value (Schedule of Finan43
Fair Value (Schedule of Financial Instruments Used to Hedge Certain Exposures to Interest Rate Risks) (Details) - Interest Rate Swap Contracts - Cash Flow Hedges - Designated as Hedging Instrument - USD ($) $ in Millions | Mar. 31, 2018 | Jun. 30, 2017 |
Derivatives Fair Value [Line Items] | ||
Notional amount | $ 621 | $ 663 |
Fair value | $ 8 | $ 1 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) ₨ in Billions | Mar. 31, 2018USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2018INR (₨) | Dec. 31, 2017USD ($) | Nov. 30, 2017USD ($) |
Senior Notes | 7.25% Due 2018 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, maturity date | May 31, 2018 | ||||
Senior notes, current | $ 350,000,000 | $ 350,000,000 | |||
Stated interest rate of debt instrument | 7.25% | 7.25% | 7.25% | ||
Senior Notes | 8.25% Due 2018 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, maturity date | Aug. 31, 2018 | ||||
Senior notes, current | $ 250,000,000 | $ 250,000,000 | |||
Stated interest rate of debt instrument | 8.25% | 8.25% | 8.25% | ||
Senior Notes | 6.90% Due 2019 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, maturity date | Mar. 31, 2019 | ||||
Senior notes, current | $ 700,000,000 | $ 700,000,000 | |||
Stated interest rate of debt instrument | 6.90% | 6.90% | 6.90% | ||
Yankees Entertainment and Sports Network | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Term loans, current | $ 31,000,000 | $ 31,000,000 | |||
Yankees Entertainment and Sports Network | $1.8 Billion Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 1,800,000,000 | ||||
Yankees Entertainment and Sports Network | $1.6 Billion Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 1,600,000,000 | ||||
Secured credit facility, maturity date | Dec. 31, 2023 | ||||
Yankees Entertainment and Sports Network | $1.6 Billion Credit Agreement | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 500,000,000 | ||||
Outstanding under line of credit agreement | 130,000,000 | $ 130,000,000 | |||
Line of credit facility, commitment fee percentage on undrawn funds | 0.275% | ||||
Yankees Entertainment and Sports Network | $1.6 Billion Credit Agreement | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 1,100,000,000 | ||||
Total borrowings | 1,100,000,000 | $ 1,100,000,000 | |||
STAR India | STAR Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 210,000,000 | 210,000,000 | ₨ 13.7 | ||
Outstanding under line of credit agreement | 130,000,000 | 130,000,000 | |||
Credit facilities, current | $ 130,000,000 | 130,000,000 | |||
STAR India | STAR Credit Facilities | Maximum | |||||
Debt Instrument [Line Items] | |||||
Number of days notice for due on demand | 60 days | ||||
STAR India | Unsecured Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Unsecured term loan facility | $ 77,000,000 | $ 77,000,000 | ₨ 5 | ||
Debt instrument, maturity date | Mar. 31, 2021 | ||||
Term loans, current | $ 77,000,000 | $ 77,000,000 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Changes in Stockholders' Equity) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Increase (Decrease) in Stockholders' Equity | |||||
Balance, beginning of period | $ 19,631 | $ 15,555 | $ 16,938 | $ 14,881 | |
Net income | 892 | 827 | 3,651 | 2,581 | |
Other comprehensive (loss) income | (41) | 191 | 341 | (67) | |
Issuance (cancellation) of shares, net | 1 | 1 | 42 | (527) | |
Dividends declared | (334) | (333) | (667) | (668) | |
Other | 74 | 11 | (82) | 52 | |
Balance, end of period | 20,223 | 16,252 | 20,223 | 16,252 | |
Twenty-First Century Fox stockholders | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balance, beginning of period | 18,389 | 14,340 | 15,722 | 13,661 | |
Net income | 858 | 799 | 3,544 | 2,476 | |
Other comprehensive (loss) income | (50) | 187 | 319 | (51) | |
Issuance (cancellation) of shares, net | 1 | 1 | 42 | (527) | |
Dividends declared | (334) | (333) | (667) | (668) | |
Other | 107 | 23 | 11 | 126 | |
Balance, end of period | 18,971 | 15,017 | 18,971 | 15,017 | |
Noncontrolling Interests | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balance, beginning of period | 1,242 | 1,215 | 1,216 | 1,220 | |
Net income | [1] | 34 | 28 | 107 | 105 |
Other comprehensive (loss) income | 9 | 4 | 22 | (16) | |
Issuance (cancellation) of shares, net | 0 | 0 | 0 | 0 | |
Dividends declared | 0 | 0 | 0 | 0 | |
Other | [2] | (33) | (12) | (93) | (74) |
Balance, end of period | $ 1,252 | $ 1,235 | $ 1,252 | $ 1,235 | |
[1] | Net income attributable to noncontrolling interests excludes $51 million and $43 million for the three months ended March 31, 2018 and 2017, respectively, and $128 million and $113 million for the nine months ended March 31, 2018 and 2017, respectively, relating to redeemable noncontrolling interests which are reflected in temporary equity. | ||||
[2] | Other activity attributable to noncontrolling interests excludes $(2) million for the three months ended March 31, 2018 and 2017, and $(61) million and $(46) million for the nine months ended March 31, 2018 and 2017, respectively, relating to redeemable noncontrolling interests. |
Stockholders' Equity (Schedul46
Stockholders' Equity (Schedule of Changes in Stockholders' Equity) (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Temporary Equity Disclosure | ||||
Net income attributable to redeemable noncontrolling interests | $ 51 | $ 43 | $ 128 | $ 113 |
Other activity attributable to redeemable noncontrolling interests | $ (2) | $ (2) | $ (61) | $ (46) |
Stockholders' Equity (Other Com
Stockholders' Equity (Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income, net of tax | $ (41) | $ 191 | $ 341 | $ (67) | |
Foreign currency translation adjustments | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Unrealized gains (losses), before tax | 21 | 111 | 100 | (40) | |
Other comprehensive income (loss), before tax | 21 | 111 | 100 | (40) | |
Unrealized gains (losses), tax | 0 | 0 | 0 | 0 | |
Other comprehensive income (loss), tax | 0 | 0 | 0 | 0 | |
Unrealized gains (losses), net of tax | 21 | 111 | 100 | (40) | |
Other comprehensive (loss) income, net of tax | 21 | 111 | 100 | (40) | |
Cash flow hedges | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Unrealized gains (losses), before tax | 7 | 1 | 16 | 14 | |
Reclassification adjustments realized in net income, before tax | [1] | (2) | 9 | (13) | 16 |
Other comprehensive income (loss), before tax | 5 | 10 | 3 | 30 | |
Unrealized gains (losses), tax | (2) | 0 | (5) | (5) | |
Reclassification adjustments realized in net income, tax | [1] | 0 | (4) | 4 | (6) |
Other comprehensive income (loss), tax | (2) | (4) | (1) | (11) | |
Unrealized gains (losses), net of tax | 5 | 1 | 11 | 9 | |
Reclassification adjustments realized in net income, net of tax | [1] | (2) | 5 | (9) | 10 |
Other comprehensive (loss) income, net of tax | 3 | 6 | 2 | 19 | |
Losses (gains) on securities | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Unrealized gains (losses), before tax | (122) | 161 | |||
Other comprehensive income (loss), before tax | (122) | 161 | |||
Unrealized gains (losses), tax | 28 | (76) | |||
Other comprehensive income (loss), tax | 28 | (76) | |||
Unrealized gains (losses), net of tax | (94) | 85 | |||
Other comprehensive (loss) income, net of tax | (94) | 85 | |||
Benefit plan adjustments | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Unrealized gains (losses), before tax | [2] | (9) | 104 | (9) | 104 |
Reclassification adjustments realized in net income, before tax | [3] | 14 | 13 | 120 | 81 |
Other comprehensive income (loss), before tax | 5 | 117 | 111 | 185 | |
Unrealized gains (losses), tax | [2] | 2 | (38) | 2 | (38) |
Reclassification adjustments realized in net income, tax | [3] | (3) | (5) | (42) | (30) |
Other comprehensive income (loss), tax | (1) | (43) | (40) | (68) | |
Unrealized gains (losses), net of tax | [2] | (7) | 66 | (7) | 66 |
Reclassification adjustments realized in net income, net of tax | [3] | 11 | 8 | 78 | 51 |
Other comprehensive (loss) income, net of tax | 4 | 74 | 71 | 117 | |
Equity method investments | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Unrealized gains (losses) and reclassifications, before tax | 45 | 5 | 129 | (218) | |
Other comprehensive income (loss), before tax | 45 | 5 | 129 | (218) | |
Unrealized gains (losses) and reclassifications, tax | (20) | (5) | (46) | 55 | |
Other comprehensive income (loss), tax | (20) | (5) | (46) | 55 | |
Unrealized gains (losses) and reclassifications, net of tax | 25 | 0 | 83 | (163) | |
Other comprehensive (loss) income, net of tax | $ 25 | $ 0 | $ 83 | $ (163) | |
[1] | Reclassifications of amounts related to hedging activity are included in Revenues, Operating expenses, Selling, general and administrative expenses, Interest expense, net or Other, net, as appropriate, in the Unaudited Consolidated Statements of Operations (See Note 5 – Fair Value for additional information regarding hedging activity). | ||||
[2] | For the three and nine months ended March 31, 2018 and 2017, the Company recorded a net unrealized actuarial (loss) gain from the remeasurement of its pension plan. | ||||
[3] | Reclassifications of amounts related to benefit plan adjustments are included in Other, net in the Unaudited Consolidated Statements of Operations. |
Stockholders' Equity (Earnings
Stockholders' Equity (Earnings Per Share Data) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Earnings Per Share Data | |||||
Income from continuing operations | $ 961 | $ 882 | $ 3,786 | $ 2,713 | |
Less: Net income attributable to noncontrolling interests | [1] | (85) | (71) | (235) | (218) |
Income from continuing operations attributable to Twenty-First Century Fox stockholders | $ 876 | $ 811 | $ 3,551 | $ 2,495 | |
[1] | Net income attributable to noncontrolling interests includes $51 million and $43 million for the three months ended March 31, 2018 and 2017, respectively, and $128 million and $113 million for the nine months ended March 31, 2018 and 2017, respectively, relating to redeemable noncontrolling interests. |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Class A Common Stock | ||||
Stock Repurchase Program [Abstract] | ||||
Stock repurchase program, remaining authorized amount | $ 3,100,000,000 | $ 3,100,000,000 | ||
Total number of shares repurchased | 0 | |||
Dividends [Abstract] | ||||
Cash dividend declared per share | $ 0.18 | $ 0.18 | $ 0.36 | $ 0.36 |
Cash dividend payable date | 2018-04 | 2018-04 | ||
Cash dividend record date | Mar. 14, 2018 | |||
Class A Common Stock | Fiscal 2017 Authorization | ||||
Stock Repurchase Program [Abstract] | ||||
Stock repurchase program, remaining authorized amount | $ 3,000,000,000 | $ 3,000,000,000 | ||
Class A Common Stock | Fiscal 2016 Authorization | ||||
Stock Repurchase Program [Abstract] | ||||
Stock repurchase program, remaining authorized amount | $ 110,000,000 | $ 110,000,000 | ||
Class B Common Stock | ||||
Stock Repurchase Program [Abstract] | ||||
Total number of shares repurchased | 0 | |||
Dividends [Abstract] | ||||
Cash dividend declared per share | $ 0.18 | $ 0.18 | $ 0.36 | $ 0.36 |
Cash dividend payable date | 2018-04 | 2018-04 | ||
Cash dividend record date | Mar. 14, 2018 |
Stockholders' Equity (Schedul50
Stockholders' Equity (Schedule of Dividends Declared) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Class A Common Stock | ||||
Class Of Stock [Line Items] | ||||
Cash dividend per share | $ 0.18 | $ 0.18 | $ 0.36 | $ 0.36 |
Class B Common Stock | ||||
Class Of Stock [Line Items] | ||||
Cash dividend per share | $ 0.18 | $ 0.18 | $ 0.36 | $ 0.36 |
Equity-Based Compensation (Summ
Equity-Based Compensation (Summary of Equity-Based Compensation) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Equity-based compensation | $ 118 | $ 35 | $ 184 | $ 97 |
Intrinsic value of all settled equity-based awards | 0 | 1 | 74 | 70 |
Tax benefit on vested equity-based awards | $ 0 | $ 0 | $ 24 | $ 25 |
Equity-Based Compensation (Narr
Equity-Based Compensation (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 9 Months Ended | |
Feb. 28, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total compensation costs related to non-vested equity-based awards, not yet recognized | $ 370 | ||
Performance Stock Units | 2016-2018 Performance Period | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares outstanding | 5 | ||
Performance Stock Units | Class A Common Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted | 6.8 | 7.4 | |
Vested | 2.6 | 2.6 | |
Retention RSUs | Merger Agreement | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted | 5.8 | ||
Retention grants vesting period | 15 months | ||
Retention RSUs | Merger Agreement | Share-based Compensation Award Tranche One | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Retention grants vesting percentage | 50.00% | ||
Retention RSUs | Merger Agreement | Share-based Compensation Award Tranche Two | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Retention grants vesting percentage | 50.00% | ||
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average future period unrecognized compensation cost related to equity based awards is expected to be recognized | 1 year | ||
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average future period unrecognized compensation cost related to equity based awards is expected to be recognized | 2 years |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Millions | Nov. 20, 2017USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2018USD ($)Season | Mar. 31, 2017USD ($) | Jun. 30, 2017USD ($) | |
Loss Contingencies [Line Items] | |||||||
Total firm commitments and future debt payments | $ 84,000 | $ 84,000 | $ 82,000 | ||||
Number of national football league seasons | Season | 5 | ||||||
Cricket broadcasting rights, expanded term | 5 years | ||||||
Contingent guarantees | 1,000 | $ 1,000 | 500 | ||||
Gain (Loss) Related To Litigation Settlement [Abstract] | |||||||
Settlement amount, net of attorneys' fees and expenses | [1] | 68 | $ 0 | 68 | $ 0 | ||
News Corp | Separation And Distribution Agreement | |||||||
Loss Contingencies [Line Items] | |||||||
Liability related to indemnity | 60 | 60 | $ 80 | ||||
Shareholder Litigation | |||||||
Gain (Loss) Related To Litigation Settlement [Abstract] | |||||||
Settlement amount to be received from insurer | $ 90 | ||||||
Governance and compliance enhancements, including the creation of the Fox News Workplace Professionalism and Inclusion Council, effective period | 5 years | ||||||
Attorneys' fees and expenses | $ 22 | ||||||
Settlement amount, net of attorneys' fees and expenses | 68 | 68 | |||||
Hulu | |||||||
Loss Contingencies [Line Items] | |||||||
Contingent guarantees | 113 | 113 | |||||
Equity method investments term loan | $ 338 | $ 338 | |||||
Debt, term | 5 years | ||||||
Debt, maturity date | Aug. 31, 2022 | ||||||
[1] | See Note 9 – Commitments and Contingencies under the heading “Shareholder Litigation” for further discussion. |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2018USD ($)SegmentFullpowertvstationDuopoly | Mar. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of Reportable Segments | Segment | 4 | |||
Revenues | $ | $ 7,420 | $ 7,564 | $ 22,459 | $ 21,752 |
Amortization of Intangible Assets | $ | 63 | 62 | 193 | 192 |
Filmed Entertainment Segment | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ | $ (372) | $ (407) | $ (985) | $ (1,085) |
US | Television Segment | ||||
Segment Reporting Information [Line Items] | ||||
Full power broadcast television stations | 28 | |||
Duopolies | Duopoly | 11 | |||
US | Television Segment | Fox | ||||
Segment Reporting Information [Line Items] | ||||
Full power broadcast television stations | 17 | |||
US | Television Segment | MyNetworkTV | ||||
Segment Reporting Information [Line Items] | ||||
Full power broadcast television stations | 9 | |||
US | Television Segment | CW Television Network and MyNetworkTV | ||||
Segment Reporting Information [Line Items] | ||||
Full power broadcast television stations | 1 | |||
US | Television Segment | Independent Station | ||||
Segment Reporting Information [Line Items] | ||||
Full power broadcast television stations | 1 |
Segment Information (Reconcilia
Segment Information (Reconciliation from Income from Continuing Operations Before Income Tax (Expense) Benefit to Total Segment OIBDA) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information Profit Loss [Abstract] | ||||
Income from continuing operations before income tax (expense) benefit | $ 1,331 | $ 1,252 | $ 3,329 | $ 3,874 |
Amortization of cable distribution investments | 14 | 15 | 57 | 46 |
Depreciation and amortization | 145 | 140 | 429 | 410 |
Impairment and restructuring charges | 34 | 37 | 58 | 213 |
Equity losses of affiliates | 86 | 51 | 59 | 57 |
Interest expense, net | 311 | 310 | 936 | 909 |
Interest income | (10) | (9) | (29) | (27) |
Other, net | (17) | 142 | 284 | 241 |
Total Segment OIBDA | $ 1,894 | $ 1,938 | $ 5,123 | $ 5,723 |
Segment Information (Reconcil56
Segment Information (Reconciliation of Revenues and Segment OIBDA from Segments to Consolidated) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 7,420 | $ 7,564 | $ 22,459 | $ 21,752 |
Total Segment OIBDA | 1,894 | 1,938 | 5,123 | 5,723 |
Operating Segments | Cable Network Programming Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4,419 | 4,024 | 13,020 | 11,801 |
Total Segment OIBDA | 1,684 | 1,446 | 4,560 | 4,160 |
Operating Segments | Television Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,149 | 1,690 | 4,020 | 4,646 |
Total Segment OIBDA | 78 | 190 | 256 | 757 |
Operating Segments | Filmed Entertainment Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,243 | 2,256 | 6,452 | 6,432 |
Total Segment OIBDA | 286 | 373 | 673 | 1,073 |
Other, Corporate and Eliminations Segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (391) | (406) | (1,033) | (1,127) |
Total Segment OIBDA | $ (154) | $ (71) | $ (366) | $ (267) |
Segment Information (Reconcil57
Segment Information (Reconciliation of Depreciation and Amortization from Segments to Consolidated) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 145 | $ 140 | $ 429 | $ 410 |
Operating Segments | Cable Network Programming Segment | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 89 | 87 | 260 | 252 |
Operating Segments | Television Segment | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 27 | 28 | 81 | 85 |
Operating Segments | Filmed Entertainment Segment | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 21 | 19 | 67 | 59 |
Other, Corporate and Eliminations Segment | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 8 | $ 6 | $ 21 | $ 14 |
Segment Information (Reconcil58
Segment Information (Reconciliation of Assets from Segments to Consolidated) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Jun. 30, 2017 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 53,978 | $ 50,724 |
Investments | 4,256 | 3,902 |
Operating Segments | Cable Network Programming Segment | ||
Segment Reporting Information [Line Items] | ||
Total assets | 26,070 | 24,913 |
Operating Segments | Television Segment | ||
Segment Reporting Information [Line Items] | ||
Total assets | 6,765 | 6,775 |
Operating Segments | Filmed Entertainment Segment | ||
Segment Reporting Information [Line Items] | ||
Total assets | 11,263 | 10,312 |
Other, Corporate and Eliminations Segment | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 5,624 | $ 4,822 |
Segment Information (Reconcil59
Segment Information (Reconciliation of Revenues by Components to Consolidated) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues | ||||
Affiliate fee | $ 3,507 | $ 3,160 | $ 9,995 | $ 8,989 |
Advertising | 1,642 | 2,203 | 5,761 | 6,338 |
Content | 2,148 | 2,078 | 6,307 | 5,979 |
Other | 123 | 123 | 396 | 446 |
Total revenues | $ 7,420 | $ 7,564 | $ 22,459 | $ 21,752 |
Additional Financial Informat60
Additional Financial Information (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Jun. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Impairment and restructuring charges | $ 34 | $ 37 | $ 58 | $ 213 | ||
Allowances for returns and doubtful accounts | 446 | 446 | $ 537 | |||
Income tax (expense) benefit | $ (370) | $ (370) | $ 457 | $ (1,161) | ||
Scenario, Forecast | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Income tax (expense) benefit | $ 130 |
Additional Financial Informat61
Additional Financial Information (Other, Net) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||||
Sky Acquisition related and other transaction costs | [1] | $ 13 | $ (137) | $ (126) | $ (170) |
Disney Transaction costs | [2] | (33) | 0 | (65) | 0 |
Settlement loss on pension liabilities | [3] | (4) | 0 | (90) | (40) |
Shareholder litigation settlement | [4] | 68 | 0 | 68 | 0 |
Other | [5] | (27) | (5) | (71) | (31) |
Total other, net | $ 17 | $ (142) | $ (284) | $ (241) | |
[1] | The Sky Acquisition related and other transaction costs primarily represent the change in fair value of a foreign currency option contract to limit the foreign currency exchange rate risk in connection with the Sky Acquisition (See Note 2 – Acquisitions, Disposals and Other Transactions under the heading “Sky Acquisition” for further discussion). | ||||
[2] | See Note 2 – Acquisitions, Disposals and Other Transactions under the heading “Disney Transaction/Distribution of New Fox” for further discussion. | ||||
[3] | During the three and nine months ended March 31, 2018, the Company settled a portion of its pension obligations by irrevocably transferring pension liabilities to an insurance company through the purchase of a group annuity contract and through lump sum distributions. These payments, funded with pension plan assets, resulted in pre-tax settlement losses related to the recognition of accumulated deferred actuarial losses. During the nine months ended March 31, 2017, the Company settled a portion of its pension obligations through lump sum distributions, which resulted in a pre-tax settlement loss related to the recognition of accumulated deferred actuarial losses. | ||||
[4] | See Note 9 – Commitments and Contingencies under the heading “Shareholder Litigation” for further discussion. | ||||
[5] | Other for the three and nine months ended March 31, 2017 included approximately $10 million and $45 million, respectively, of costs related to settlements of claims arising out of allegations of sexual harassment at the Company’s Fox News Channel business. |
Additional Financial Informat62
Additional Financial Information (Other, Net) (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2017 | Mar. 31, 2017 | |
Fox News Channel | ||
Other Non Operating Income Expense [Line Items] | ||
Costs related to settlements of claims arising out of allegations of sexual harrassment | $ 10 | $ 45 |
Additional Financial Informat63
Additional Financial Information (Supplemental Cash Flows Information) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Supplemental cash flows information | ||
Cash paid for income taxes | $ (759) | $ (747) |
Cash paid for interest | $ (901) | $ (890) |
Supplemental Guarantor Inform64
Supplemental Guarantor Information (Supplemental Condensed Consolidating Statements of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Condensed Income Statements Captions [Line Items] | |||||
Revenues | $ 7,420 | $ 7,564 | $ 22,459 | $ 21,752 | |
Expenses | (5,719) | (5,818) | (17,880) | (16,698) | |
Equity losses of affiliates | (86) | (51) | (59) | (57) | |
Interest expense, net | (311) | (310) | (936) | (909) | |
Interest income | 10 | 9 | 29 | 27 | |
Earnings from subsidiary entities | 0 | 0 | 0 | 0 | |
Other, net | 17 | (142) | (284) | (241) | |
Income from continuing operations before income tax (expense) benefit | 1,331 | 1,252 | 3,329 | 3,874 | |
Income tax (expense) benefit | (370) | (370) | 457 | (1,161) | |
Income from continuing operations | 961 | 882 | 3,786 | 2,713 | |
Loss from discontinued operations, net of tax | (18) | (12) | (7) | (19) | |
Net income | 943 | 870 | 3,779 | 2,694 | |
Less: Net income attributable to noncontrolling interests | [1] | (85) | (71) | (235) | (218) |
Net income attributable to Twenty-First Century Fox, Inc. stockholders | 858 | 799 | 3,544 | 2,476 | |
Comprehensive income attributable to Twenty-First Century Fox stockholders | 808 | 986 | 3,863 | 2,425 | |
Legal Entities | 21st Century Fox America, Inc. | |||||
Condensed Income Statements Captions [Line Items] | |||||
Revenues | 1 | 1 | 1 | 1 | |
Expenses | (111) | (90) | (287) | (328) | |
Equity losses of affiliates | (2) | 0 | (2) | (1) | |
Interest expense, net | (446) | (423) | (1,312) | (1,246) | |
Interest income | 1 | 1 | 1 | 3 | |
Earnings from subsidiary entities | 1,633 | 1,883 | 6,417 | 5,358 | |
Other, net | 38 | (140) | (181) | (226) | |
Income from continuing operations before income tax (expense) benefit | 1,114 | 1,232 | 4,637 | 3,561 | |
Income tax (expense) benefit | (822) | (365) | 637 | (1,067) | |
Income from continuing operations | 292 | 867 | 5,274 | 2,494 | |
Loss from discontinued operations, net of tax | 0 | 0 | 0 | 0 | |
Net income | 292 | 867 | 5,274 | 2,494 | |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net income attributable to Twenty-First Century Fox, Inc. stockholders | 292 | 867 | 5,274 | 2,494 | |
Comprehensive income attributable to Twenty-First Century Fox stockholders | 260 | 1,005 | 5,260 | 2,249 | |
Legal Entities | Twenty-First Century Fox | |||||
Condensed Income Statements Captions [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Expenses | 0 | 0 | 0 | 0 | |
Equity losses of affiliates | 0 | 0 | 0 | 0 | |
Interest expense, net | (202) | (195) | (612) | (572) | |
Interest income | 4 | 3 | 14 | 4 | |
Earnings from subsidiary entities | 1,074 | 1,002 | 4,149 | 3,062 | |
Other, net | 0 | 1 | 0 | 1 | |
Income from continuing operations before income tax (expense) benefit | 876 | 811 | 3,551 | 2,495 | |
Income tax (expense) benefit | 0 | 0 | 0 | 0 | |
Income from continuing operations | 876 | 811 | 3,551 | 2,495 | |
Loss from discontinued operations, net of tax | (18) | (12) | (7) | (19) | |
Net income | 858 | 799 | 3,544 | 2,476 | |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net income attributable to Twenty-First Century Fox, Inc. stockholders | 858 | 799 | 3,544 | 2,476 | |
Comprehensive income attributable to Twenty-First Century Fox stockholders | 808 | 986 | 3,863 | 2,425 | |
Legal Entities | Non-Guarantor | |||||
Condensed Income Statements Captions [Line Items] | |||||
Revenues | 7,419 | 7,563 | 22,458 | 21,751 | |
Expenses | (5,608) | (5,728) | (17,593) | (16,370) | |
Equity losses of affiliates | (84) | (51) | (57) | (56) | |
Interest expense, net | (21) | (19) | (63) | (58) | |
Interest income | 363 | 332 | 1,065 | 987 | |
Earnings from subsidiary entities | 0 | 0 | 0 | 0 | |
Other, net | (21) | (3) | (103) | (16) | |
Income from continuing operations before income tax (expense) benefit | 2,048 | 2,094 | 5,707 | 6,238 | |
Income tax (expense) benefit | (731) | (620) | 784 | (1,870) | |
Income from continuing operations | 1,317 | 1,474 | 6,491 | 4,368 | |
Loss from discontinued operations, net of tax | 0 | 0 | 0 | 0 | |
Net income | 1,317 | 1,474 | 6,491 | 4,368 | |
Less: Net income attributable to noncontrolling interests | (85) | (71) | (235) | (218) | |
Net income attributable to Twenty-First Century Fox, Inc. stockholders | 1,232 | 1,403 | 6,256 | 4,150 | |
Comprehensive income attributable to Twenty-First Century Fox stockholders | 1,259 | 1,578 | 6,420 | 4,011 | |
Reclassifications and Eliminations | |||||
Condensed Income Statements Captions [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Expenses | 0 | 0 | 0 | 0 | |
Equity losses of affiliates | 0 | 0 | 0 | 0 | |
Interest expense, net | 358 | 327 | 1,051 | 967 | |
Interest income | (358) | (327) | (1,051) | (967) | |
Earnings from subsidiary entities | (2,707) | (2,885) | (10,566) | (8,420) | |
Other, net | 0 | 0 | 0 | 0 | |
Income from continuing operations before income tax (expense) benefit | (2,707) | (2,885) | (10,566) | (8,420) | |
Income tax (expense) benefit | 1,183 | 615 | (964) | 1,776 | |
Income from continuing operations | (1,524) | (2,270) | (11,530) | (6,644) | |
Loss from discontinued operations, net of tax | 0 | 0 | 0 | 0 | |
Net income | (1,524) | (2,270) | (11,530) | (6,644) | |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net income attributable to Twenty-First Century Fox, Inc. stockholders | (1,524) | (2,270) | (11,530) | (6,644) | |
Comprehensive income attributable to Twenty-First Century Fox stockholders | $ (1,519) | $ (2,583) | $ (11,680) | $ (6,260) | |
[1] | Net income attributable to noncontrolling interests includes $51 million and $43 million for the three months ended March 31, 2018 and 2017, respectively, and $128 million and $113 million for the nine months ended March 31, 2018 and 2017, respectively, relating to redeemable noncontrolling interests. |
Supplemental Guarantor Inform65
Supplemental Guarantor Information (Supplemental Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | |
Current assets | |||||||
Cash and cash equivalents | $ 7,372 | $ 6,163 | $ 5,572 | $ 4,424 | |||
Receivables, net | 6,905 | 6,477 | |||||
Inventories, net | [1] | 3,645 | 3,101 | ||||
Other | 739 | 545 | |||||
Total current assets | 18,661 | 16,286 | |||||
Non-current assets | |||||||
Receivables, net | 736 | 543 | |||||
Inventories, net | 8,002 | 7,452 | |||||
Property, plant and equipment, net | 1,861 | 1,781 | |||||
Intangible assets, net | 6,174 | 6,574 | |||||
Goodwill | 12,794 | 12,792 | |||||
Other non-current assets | 1,494 | 1,394 | |||||
Investments | |||||||
Investments in associated companies and other investments | 4,256 | 3,902 | |||||
Intragroup investments | 0 | 0 | |||||
Total investments | 4,256 | 3,902 | |||||
Total assets | 53,978 | 50,724 | |||||
Current liabilities | |||||||
Borrowings | 1,538 | 457 | |||||
Other current liabilities | 7,561 | 6,781 | |||||
Total current liabilities | 9,099 | 7,238 | |||||
Non-current liabilities | |||||||
Borrowings | 18,459 | 19,456 | |||||
Other non-current liabilities | 5,436 | 6,398 | |||||
Intercompany | 0 | 0 | |||||
Redeemable noncontrolling interests | 761 | 694 | |||||
Total equity | 20,223 | $ 19,631 | 16,938 | 16,252 | $ 15,555 | 14,881 | |
Total liabilities and equity | 53,978 | 50,724 | |||||
Legal Entities | 21st Century Fox America, Inc. | |||||||
Current assets | |||||||
Cash and cash equivalents | 1,832 | 40 | 49 | 661 | |||
Receivables, net | 17 | 6 | |||||
Inventories, net | 0 | 0 | |||||
Other | 65 | 49 | |||||
Total current assets | 1,914 | 95 | |||||
Non-current assets | |||||||
Receivables, net | 13 | 13 | |||||
Inventories, net | 0 | 0 | |||||
Property, plant and equipment, net | 350 | 297 | |||||
Intangible assets, net | 0 | 0 | |||||
Goodwill | 0 | 0 | |||||
Other non-current assets | 279 | 261 | |||||
Investments | |||||||
Investments in associated companies and other investments | 179 | 179 | |||||
Intragroup investments | 111,942 | 105,516 | |||||
Total investments | 112,121 | 105,695 | |||||
Total assets | 114,677 | 106,361 | |||||
Current liabilities | |||||||
Borrowings | 1,300 | 350 | |||||
Other current liabilities | 728 | 643 | |||||
Total current liabilities | 2,028 | 993 | |||||
Non-current liabilities | |||||||
Borrowings | 17,276 | 18,217 | |||||
Other non-current liabilities | 500 | 522 | |||||
Intercompany | 43,612 | 39,629 | |||||
Redeemable noncontrolling interests | 0 | 0 | |||||
Total equity | 51,261 | 47,000 | |||||
Total liabilities and equity | 114,677 | 106,361 | |||||
Legal Entities | Twenty-First Century Fox | |||||||
Current assets | |||||||
Cash and cash equivalents | 3,636 | 4,882 | 4,166 | 2,019 | |||
Receivables, net | 0 | 0 | |||||
Inventories, net | 0 | 0 | |||||
Other | 0 | 0 | |||||
Total current assets | 3,636 | 4,882 | |||||
Non-current assets | |||||||
Receivables, net | 0 | 0 | |||||
Inventories, net | 0 | 0 | |||||
Property, plant and equipment, net | 0 | 0 | |||||
Intangible assets, net | 0 | 0 | |||||
Goodwill | 0 | 0 | |||||
Other non-current assets | 0 | 0 | |||||
Investments | |||||||
Investments in associated companies and other investments | 188 | 37 | |||||
Intragroup investments | 64,297 | 59,926 | |||||
Total investments | 64,485 | 59,963 | |||||
Total assets | 68,121 | 64,845 | |||||
Current liabilities | |||||||
Borrowings | 0 | 0 | |||||
Other current liabilities | 380 | 72 | |||||
Total current liabilities | 380 | 72 | |||||
Non-current liabilities | |||||||
Borrowings | 0 | 0 | |||||
Other non-current liabilities | 73 | 0 | |||||
Intercompany | 48,697 | 49,051 | |||||
Redeemable noncontrolling interests | 0 | 0 | |||||
Total equity | 18,971 | 15,722 | |||||
Total liabilities and equity | 68,121 | 64,845 | |||||
Legal Entities | Non-Guarantor | |||||||
Current assets | |||||||
Cash and cash equivalents | 1,904 | 1,241 | 1,357 | 1,744 | |||
Receivables, net | 6,889 | 6,472 | |||||
Inventories, net | 3,645 | 3,101 | |||||
Other | 674 | 496 | |||||
Total current assets | 13,112 | 11,310 | |||||
Non-current assets | |||||||
Receivables, net | 723 | 530 | |||||
Inventories, net | 8,002 | 7,452 | |||||
Property, plant and equipment, net | 1,511 | 1,484 | |||||
Intangible assets, net | 6,174 | 6,574 | |||||
Goodwill | 12,794 | 12,792 | |||||
Other non-current assets | 1,215 | 1,133 | |||||
Investments | |||||||
Investments in associated companies and other investments | 3,889 | 3,686 | |||||
Intragroup investments | 0 | 0 | |||||
Total investments | 3,889 | 3,686 | |||||
Total assets | 47,420 | 44,961 | |||||
Current liabilities | |||||||
Borrowings | 238 | 107 | |||||
Other current liabilities | 6,454 | 6,067 | |||||
Total current liabilities | 6,692 | 6,174 | |||||
Non-current liabilities | |||||||
Borrowings | 1,183 | 1,239 | |||||
Other non-current liabilities | 4,863 | 5,876 | |||||
Intercompany | (92,309) | (88,680) | |||||
Redeemable noncontrolling interests | 761 | 694 | |||||
Total equity | 126,230 | 119,658 | |||||
Total liabilities and equity | 47,420 | 44,961 | |||||
Reclassifications and Eliminations | |||||||
Current assets | |||||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | |||
Receivables, net | (1) | (1) | |||||
Inventories, net | 0 | 0 | |||||
Other | 0 | 0 | |||||
Total current assets | (1) | (1) | |||||
Non-current assets | |||||||
Receivables, net | 0 | 0 | |||||
Inventories, net | 0 | 0 | |||||
Property, plant and equipment, net | 0 | 0 | |||||
Intangible assets, net | 0 | 0 | |||||
Goodwill | 0 | 0 | |||||
Other non-current assets | 0 | 0 | |||||
Investments | |||||||
Investments in associated companies and other investments | 0 | 0 | |||||
Intragroup investments | (176,239) | (165,442) | |||||
Total investments | (176,239) | (165,442) | |||||
Total assets | (176,240) | (165,443) | |||||
Current liabilities | |||||||
Borrowings | 0 | 0 | |||||
Other current liabilities | (1) | (1) | |||||
Total current liabilities | (1) | (1) | |||||
Non-current liabilities | |||||||
Borrowings | 0 | 0 | |||||
Other non-current liabilities | 0 | 0 | |||||
Intercompany | 0 | 0 | |||||
Redeemable noncontrolling interests | 0 | 0 | |||||
Total equity | (176,239) | (165,442) | |||||
Total liabilities and equity | $ (176,240) | $ (165,443) | |||||
[1] | Current portion of inventories, net as of March 31, 2018 and June 30, 2017 was comprised of programming rights ($3,591 million and $3,037 million, respectively), DVDs, Blu-rays and other merchandise. |
Supplemental Guarantor Inform66
Supplemental Guarantor Information (Supplemental Condensed Consolidating Statements of Cash Flows) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
OPERATING ACTIVITIES | ||
Net cash provided by operating activities from continuing operations | $ 2,202 | $ 2,427 |
INVESTING ACTIVITIES | ||
Property, plant and equipment | (343) | (202) |
Investments | (77) | (166) |
Net cash used in investing activities from continuing operations | (420) | (368) |
FINANCING ACTIVITIES | ||
Borrowings | 1,550 | 879 |
Repayment of borrowings | (1,479) | (546) |
Repurchase of shares | 0 | (619) |
Dividends paid and distributions | (579) | (522) |
Other financing activities, net | (69) | (72) |
Net cash used in financing activities from continuing operations | (577) | (880) |
Discontinued operations | ||
Net decrease in cash and cash equivalents from discontinued operations | (42) | (21) |
Net increase in cash and cash equivalents | 1,163 | 1,158 |
Cash and cash equivalents, beginning of year | 6,163 | 4,424 |
Exchange movement on cash balances | 46 | (10) |
Cash and cash equivalents, end of period | 7,372 | 5,572 |
Legal Entities | 21st Century Fox America, Inc. | ||
OPERATING ACTIVITIES | ||
Net cash provided by operating activities from continuing operations | 2,031 | (875) |
INVESTING ACTIVITIES | ||
Property, plant and equipment | (73) | (10) |
Investments | (77) | (95) |
Net cash used in investing activities from continuing operations | (150) | (105) |
FINANCING ACTIVITIES | ||
Borrowings | 0 | 842 |
Repayment of borrowings | 0 | (400) |
Repurchase of shares | 0 | |
Dividends paid and distributions | 0 | 0 |
Other financing activities, net | (47) | (53) |
Net cash used in financing activities from continuing operations | (47) | 389 |
Discontinued operations | ||
Net decrease in cash and cash equivalents from discontinued operations | (42) | (21) |
Net increase in cash and cash equivalents | 1,792 | (612) |
Cash and cash equivalents, beginning of year | 40 | 661 |
Exchange movement on cash balances | 0 | 0 |
Cash and cash equivalents, end of period | 1,832 | 49 |
Legal Entities | Twenty-First Century Fox | ||
OPERATING ACTIVITIES | ||
Net cash provided by operating activities from continuing operations | (913) | 3,101 |
INVESTING ACTIVITIES | ||
Property, plant and equipment | 0 | 0 |
Investments | 0 | 0 |
Net cash used in investing activities from continuing operations | 0 | 0 |
FINANCING ACTIVITIES | ||
Borrowings | 0 | 0 |
Repayment of borrowings | 0 | 0 |
Repurchase of shares | (619) | |
Dividends paid and distributions | (333) | (335) |
Other financing activities, net | 0 | 0 |
Net cash used in financing activities from continuing operations | (333) | (954) |
Discontinued operations | ||
Net decrease in cash and cash equivalents from discontinued operations | 0 | 0 |
Net increase in cash and cash equivalents | (1,246) | 2,147 |
Cash and cash equivalents, beginning of year | 4,882 | 2,019 |
Exchange movement on cash balances | 0 | 0 |
Cash and cash equivalents, end of period | 3,636 | 4,166 |
Legal Entities | Non-Guarantor | ||
OPERATING ACTIVITIES | ||
Net cash provided by operating activities from continuing operations | 1,084 | 201 |
INVESTING ACTIVITIES | ||
Property, plant and equipment | (270) | (192) |
Investments | 0 | (71) |
Net cash used in investing activities from continuing operations | (270) | (263) |
FINANCING ACTIVITIES | ||
Borrowings | 1,550 | 37 |
Repayment of borrowings | (1,479) | (146) |
Repurchase of shares | 0 | |
Dividends paid and distributions | (246) | (187) |
Other financing activities, net | (22) | (19) |
Net cash used in financing activities from continuing operations | (197) | (315) |
Discontinued operations | ||
Net decrease in cash and cash equivalents from discontinued operations | 0 | 0 |
Net increase in cash and cash equivalents | 617 | (377) |
Cash and cash equivalents, beginning of year | 1,241 | 1,744 |
Exchange movement on cash balances | 46 | (10) |
Cash and cash equivalents, end of period | 1,904 | 1,357 |
Reclassifications and Eliminations | ||
OPERATING ACTIVITIES | ||
Net cash provided by operating activities from continuing operations | 0 | 0 |
INVESTING ACTIVITIES | ||
Property, plant and equipment | 0 | 0 |
Investments | 0 | 0 |
Net cash used in investing activities from continuing operations | 0 | 0 |
FINANCING ACTIVITIES | ||
Borrowings | 0 | 0 |
Repayment of borrowings | 0 | 0 |
Repurchase of shares | 0 | |
Dividends paid and distributions | 0 | 0 |
Other financing activities, net | 0 | 0 |
Net cash used in financing activities from continuing operations | 0 | 0 |
Discontinued operations | ||
Net decrease in cash and cash equivalents from discontinued operations | 0 | 0 |
Net increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of year | 0 | 0 |
Exchange movement on cash balances | 0 | 0 |
Cash and cash equivalents, end of period | $ 0 | $ 0 |