Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2017 | Feb. 02, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | NWS | |
Entity Registrant Name | NEWS CORP | |
Entity Central Index Key | 1,564,708 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 383,108,677 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 199,630,240 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | ||||
Advertising | $ 702 | $ 748 | $ 1,372 | $ 1,418 |
Circulation and subscription | 637 | 595 | 1,288 | 1,216 |
Consumer | 453 | 450 | 839 | 824 |
Real estate | 222 | 185 | 425 | 357 |
Other | 166 | 138 | 314 | 266 |
Total Revenues | 2,180 | 2,116 | 4,238 | 4,081 |
Operating expenses | (1,139) | (1,126) | (2,288) | (2,283) |
Selling, general and administrative | (712) | (665) | (1,372) | (1,343) |
Depreciation and amortization | (100) | (120) | (197) | (240) |
Impairment and restructuring charges | (12) | (356) | (27) | (376) |
Equity losses of affiliates | (18) | (238) | (28) | (253) |
Interest, net | 1 | 15 | 7 | 22 |
Other, net | (31) | 123 | (23) | 140 |
Income (loss) before income tax (expense) benefit | 169 | (251) | 310 | (252) |
Income tax (expense) benefit | (235) | 32 | (289) | 33 |
Net (loss) income | (66) | (219) | 21 | (219) |
Less: Net income attributable to noncontrolling interests | (17) | (70) | (36) | (85) |
Net loss attributable to News Corporation stockholders | $ (83) | $ (289) | $ (15) | $ (304) |
Basic and diluted loss per share: | ||||
Net loss available to News Corporation stockholders per share | $ (0.14) | $ (0.50) | $ (0.03) | $ (0.52) |
Cash dividends declared per share of common stock | $ 0 | $ 0 | $ 0.10 | $ 0.10 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net (loss) income | $ (66) | $ (219) | $ 21 | $ (219) | |
Other comprehensive income (loss): | |||||
Foreign currency translation adjustments | 0 | (347) | 134 | (291) | |
Unrealized holding gains (losses) on securities | [1] | 18 | 7 | 5 | (19) |
Benefit plan adjustments | [2] | 1 | 20 | (5) | 31 |
Share of other comprehensive income from equity affiliates | [3] | 0 | 9 | 1 | 11 |
Other comprehensive income (loss) | 19 | (311) | 135 | (268) | |
Comprehensive (loss) income | (47) | (530) | 156 | (487) | |
Less: Net income attributable to noncontrolling interests | (17) | (70) | (36) | (85) | |
Less: Other comprehensive loss (income) attributable to noncontrolling interests | 1 | 9 | (3) | 7 | |
Comprehensive (loss) income attributable to News Corporation stockholders | $ (63) | $ (591) | $ 117 | $ (565) | |
[1] | Net of income tax expense of $8 million and $2 million for the three months ended December 31, 2017 and 2016, respectively, and income tax expense (benefit) of $2 million and ($8) million for the six months ended December 31, 2017 and 2016, respectively. | ||||
[2] | Net of income tax expense of nil and $5 million for the three months ended December 31, 2017 and 2016, respectively, and income tax (benefit) expense of ($2) million and $8 million for the six months ended December 31, 2017 and 2016, respectively. | ||||
[3] | Net of income tax expense of nil and $4 million for the three months ended December 31, 2017 and 2016, respectively, and income tax expense of nil and $5 million for the six months ended December 31, 2017 and 2016, respectively. |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized holding gains (losses) on securities, income tax expense (benefit) | $ 8,000,000 | $ 2,000,000 | $ 2,000,000 | $ (8,000,000) |
Benefit plan adjustments, income tax (benefit) expense | 0 | 5,000,000 | (2,000,000) | 8,000,000 |
Share of other comprehensive (loss) income from equity affiliates, income tax expense | $ 0 | $ 4,000,000 | $ 0 | $ 5,000,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Jun. 30, 2017 | |
Current assets: | |||
Cash and cash equivalents | $ 1,856 | $ 2,016 | |
Receivables, net | 1,379 | 1,276 | |
Other current assets | 483 | 523 | |
Total current assets | 3,718 | 3,815 | |
Non-current assets: | |||
Investments | 2,019 | 2,027 | |
Property, plant and equipment, net | 1,631 | 1,624 | |
Intangible assets, net | 2,281 | 2,281 | |
Goodwill | 3,917 | 3,838 | |
Deferred income tax assets | 349 | 525 | |
Other non-current assets | 444 | 442 | |
Total assets | 14,359 | 14,552 | |
Current liabilities: | |||
Accounts payable | 216 | 222 | |
Accrued expenses | 1,113 | 1,204 | |
Deferred revenue | 390 | 426 | |
Other current liabilities | 551 | 600 | |
Total current liabilities | 2,270 | 2,452 | |
Non-current liabilities: | |||
Borrowings | 187 | 276 | |
Retirement benefit obligations | 305 | 319 | |
Deferred income tax liabilities | 59 | 61 | |
Other non-current liabilities | 360 | 351 | |
Commitments and contingencies | |||
Equity | |||
Additional paid-in capital | 12,350 | 12,395 | |
Accumulated deficit | (664) | (648) | |
Accumulated other comprehensive loss | (832) | (964) | |
Total News Corporation stockholders' equity | 10,860 | 10,789 | |
Noncontrolling interests | 298 | 284 | |
Total equity | 11,158 | 11,073 | |
Total liabilities and equity | 14,359 | 14,552 | |
Redeemable Preferred Stock [Member] | |||
Non-current liabilities: | |||
Redeemable preferred stock | 20 | 20 | |
Class A Common Stock [Member] | |||
Equity | |||
Common stock | [1] | 4 | 4 |
Class B Common Stock [Member] | |||
Equity | |||
Common stock | [2] | $ 2 | $ 2 |
[1] | Class A common stock, $0.01 par value per share ("Class A Common Stock"), 1,500,000,000 shares authorized, 383,087,863 and 382,294,262 shares issued and outstanding, net of 27,368,413 treasury shares at par at December 31, 2017 and June 30, 2017, respectively. | ||
[2] | Class B common stock, $0.01 par value per share ("Class B Common Stock"), 750,000,000 shares authorized, 199,630,240 shares issued and outstanding, net of 78,430,424 treasury shares at par at December 31, 2017 and June 30, 2017, respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Jun. 30, 2017 |
Class A Common Stock [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued, net of treasury stock | 383,087,863 | 382,294,262 |
Common stock outstanding, net of treasury stock | 383,087,863 | 382,294,262 |
Common stock, treasury shares | 27,368,413 | 27,368,413 |
Class B Common Stock [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued, net of treasury stock | 199,630,240 | 199,630,240 |
Common stock outstanding, net of treasury stock | 199,630,240 | 199,630,240 |
Common stock, treasury shares | 78,430,424 | 78,430,424 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities: | ||
Net income (loss) | $ 21 | $ (219) |
Less: Income from discontinued operations, net of tax | 0 | 0 |
Income (loss) from continuing operations | 21 | (219) |
Adjustments to reconcile income (loss) from continuing operations to cash provided by operating activities: | ||
Depreciation and amortization | 197 | 240 |
Equity losses of affiliates | 28 | 253 |
Cash distributions received from affiliates | 1 | 0 |
Impairment charges | 0 | 310 |
Other, net | 23 | (140) |
Deferred income taxes and taxes payable | 200 | (102) |
Change in operating assets and liabilities, net of acquisitions: | ||
Receivables and other assets | (73) | (131) |
Inventories, net | (8) | (9) |
Accounts payable and other liabilities | (185) | 52 |
NAM Group settlement | 0 | (250) |
Net cash provided by operating activities from continuing operations | 204 | 4 |
Net cash used in operating activities from discontinued operations | 0 | (3) |
Net cash provided by operating activities | 204 | 1 |
Investing activities: | ||
Capital expenditures | (128) | (108) |
Changes in restricted cash for Wireless Group acquisition | 0 | 315 |
Acquisitions, net of cash acquired | (53) | (342) |
Investments in equity affiliates and other | (33) | (39) |
Proceeds from property, plant and equipment and other asset dispositions | 15 | 59 |
Other, net | 23 | (3) |
Net cash used in investing activities from continuing operations | (176) | (118) |
Net cash used in investing activities from discontinued operations | 0 | 0 |
Net cash used in investing activities | (176) | (118) |
Financing activities: | ||
Repayment of borrowings | (93) | (23) |
Dividends paid | (80) | (77) |
Other, net | (29) | (21) |
Net cash used in financing activities from continuing operations | (202) | (121) |
Net cash used in financing activities from discontinued operations | 0 | 0 |
Net cash used in financing activities | (202) | (121) |
Net decrease in cash and cash equivalents | (174) | (238) |
Cash and cash equivalents, beginning of period | 2,016 | 1,832 |
Exchange movement on opening cash balance | 14 | (30) |
Cash and cash equivalents, end of period | $ 1,856 | $ 1,564 |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION News Corporation (together with its subsidiaries, “News Corporation,” “News Corp,” the “Company,” “we,” or “us”) is a global diversified media and information services company comprised of businesses across a range of media, including: news and information services, book publishing, digital real estate services, cable network programming in Australia and pay-TV Basis of Presentation The accompanying unaudited consolidated financial statements of the Company, which are referred to herein as the “Consolidated Financial Statements,” have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q S-X. Intercompany transactions and balances have been eliminated. Equity investments in which the Company exercises significant influence but does not exercise control and is not the primary beneficiary are accounted for using the equity method. Investments in which the Company is not able to exercise significant influence over the investee are designated as available-for-sale The consolidated statements of operations are referred to herein as the “Statements of Operations.” The consolidated balance sheets are referred to herein as the “Balance Sheets.” The consolidated statements of cash flows are referred to herein as the “Statements of Cash Flows.” The accompanying Consolidated Financial Statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K 10-K”). Certain reclassifications have been made to the prior period consolidated financial statements to conform to the current year presentation. Specifically, in the third quarter of fiscal 2017, the Company revised the Statements of Cash Flows to present cash flow activities from discontinued operations within each of the operating, investing and financing activities categories. The Company’s fiscal year ends on the Sunday closest to June 30. Fiscal 2018 and fiscal 2017 include 52 weeks. All references to the three months ended December 31, 2017 and 2016 relate to the three months ended December 31, 2017 and January 1, 2017, respectively. For convenience purposes, the Company continues to date its consolidated financial statements as of December 31. Recently Issued Accounting Pronouncements Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, 2016-09”). 2016-09 2016-09 In October 2016, the FASB issued ASU 2016-16, 2016-16”). 2016-16 2016-16 2016-16, Issued In May 2014, FASB issued ASU 2014-09, 2014-09”). 2014-09 2015-14, 2014-09 2014-09 2014-09 The FASB has also issued several standards which provide additional clarification and implementation guidance on the previously issued ASU 2014-09 The Company is currently evaluating the overall impact that ASU 2014-09 In January 2016, the FASB issued ASU 2016-01, 825-10): 2016-01”). 2016-01 2016-01 available-for-sale 2016-01, available-for-sale 2016-01 In February 2016, the FASB issued ASU 2016-02, 2016-02”). 2016-02 2016-02 right-of-use 2016-02 2016-02 In March 2017, the FASB issued ASU 2017-07, 2017-07”). 2017-07 715-30-35-4 715-60-35-9 2017-07 2017-07 |
Acquisitions, Disposals and Oth
Acquisitions, Disposals and Other Transactions | 6 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions, Disposals and Other Transactions | NOTE 2. ACQUISITIONS, DISPOSALS AND OTHER TRANSACTIONS Smartline Home Loans Pty Limited In July 2017, REA Group acquired an 80.3% interest in Smartline Home Loans Pty Limited (“Smartline”) for approximately A$70 million in cash (approximately $55 million). The minority shareholders have the option to sell the remaining 19.7% interest to REA Group beginning three years after closing at a price dependent on the financial performance of Smartline. If the option is not exercised, the minority interest will become mandatorily redeemable four years after closing. As a result, REA Group recognized a liability of $12 million in the three months ended September 30, 2017 for the present value of the amount expected to be paid for the remaining interest based on the formula specified in the acquisition agreement. Smartline is one of Australia’s premier mortgage broking franchise groups, and the acquisition provides REA Group’s financial services business with greater scale and capability. Under the acquisition method of accounting, the total consideration is allocated to net tangible assets and identifiable intangible assets based upon the fair value as of the date of completion of the acquisition. The excess of the total consideration over the fair value of the net tangible assets and identifiable intangible assets acquired was recorded as goodwill. The acquired intangible assets of approximately $19 million primarily relate to customer relationships which have a useful life of 16 years. The Company recorded approximately $47 million of goodwill on the transaction. Smartline is a subsidiary of REA Group, and its results are included within the Digital Real Estate Services segment. |
Impairment and Restructuring Ch
Impairment and Restructuring Charges | 6 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Impairment and Restructuring Charges | NOTE 3. IMPAIRMENT AND RESTRUCTURING CHARGES Fiscal 2018 During the three and six months ended December 31, 2017, the Company recorded restructuring charges of $12 million and $27 million, respectively, of which $11 million and $25 million, respectively, related to the News and Information Services segment. The restructuring charges recorded in fiscal 2018 were primarily for employee termination benefits. Fiscal 2017 During the three and six months ended December 31, 2016, the Company recorded restructuring charges of $47 million and $67 million, respectively, of which $47 million and $66 million, respectively, related to the News and Information Services segment. The restructuring charges recorded in fiscal 2017 were for employee termination benefits. During the three and six months ended December 31, 2016, the Company recognized a non-cash Changes in restructuring program liabilities were as follows: For the three months ended December 31, 2017 2016 One time Facility Other Total One time Facility Other Total (in millions) Balance, beginning of period $ 25 $ 5 $ 10 $ 40 $ 30 $ 5 $ 6 $ 41 Additions 11 — 1 12 47 — — 47 Payments (15 ) (1 ) (1 ) (17 ) (36 ) — — (36 ) Other 1 — — 1 — — — — Balance, end of period $ 22 $ 4 $ 10 $ 36 $ 41 $ 5 $ 6 $ 52 For the six months ended December 31, 2017 2016 One time Facility Other Total One time Facility Other Total (in millions) Balance, beginning of period $ 33 $ 6 $ 10 $ 49 $ 33 $ 5 $ 6 $ 44 Additions 26 — 1 27 67 — — 67 Payments (38 ) (1 ) (1 ) (40 ) (58 ) — — (58 ) Other 1 (1 ) — — (1 ) — — (1 ) Balance, end of period $ 22 $ 4 $ 10 $ 36 $ 41 $ 5 $ 6 $ 52 As of December 31, 2017, restructuring liabilities of approximately $24 million were included in the Balance Sheet in Other current liabilities and $12 million were included in Other non-current |
Investments
Investments | 6 Months Ended |
Dec. 31, 2017 | |
Investments Schedule [Abstract] | |
Investments | NOTE 4. INVESTMENTS The Company’s investments were comprised of the following: Ownership As of As of (in millions) Equity method investments: Foxtel (a) 50% $ 1,605 $ 1,208 Other equity method investments (b) various 123 133 Loan receivable from Foxtel (a) N/A — 370 Available-for-sale (c) various 80 97 Cost method investments (d) various 211 219 Total Investments $ 2,019 $ 2,027 (a) In May 2012, Foxtel purchased Austar United Communications Ltd. The transaction was funded by Foxtel bank debt and pro rata capital contributions made by Foxtel shareholders in the form of subordinated shareholder notes based on their respective ownership interests. The Company’s share of the subordinated shareholder notes was approximately A$481 million ($370 million) as of June 30, 2017. During the three months ended September 30, 2017, Foxtel’s shareholders made pro-rata (b) Other equity method investments are primarily comprised of Elara Technologies Pte. Ltd., which operates PropTiger.com, Makaan.com and Housing.com. (c) Available-for-sale (d) Cost method investments are primarily comprised of the Company’s investment in SEEKAsia Limited and certain investments in China. The Company measures the fair market values of available-for-sale available-for-sale As of As of (in millions) Cost basis of available-for-sale $ 81 $ 99 Accumulated gross unrealized gain 1 — Accumulated gross unrealized loss (2 ) (2 ) Fair value of available-for-sale $ 80 $ 97 Net deferred tax asset $ — $ (1 ) Equity Losses of Affiliates The Company’s equity losses of affiliates were as follows: For the three months ended For the six months ended 2017 2016 2017 2016 (in millions) (in millions) Foxtel (a) $ 1 $ (233 ) $ (4 ) $ (244 ) Other equity affiliates, net (b) (19 ) (5 ) (24 ) (9 ) Total Equity losses of affiliates $ (18 ) $ (238 ) $ (28 ) $ (253 ) (a) In accordance with ASC 350, “Intangibles—Goodwill and Other,” the Company amortized $15 million and $32 million related to excess cost over the Company’s proportionate share of its investment’s underlying net assets allocated to finite-lived intangible assets during the three and six months ended December 31, 2017, respectively, and $18 million and $37 million in the corresponding periods of fiscal 2017. Such amortization is reflected in Equity losses of affiliates in the Statements of Operations. Additionally, during the second quarter of fiscal 2017, the Company recognized a $227 million non-cash pay-TV (b) During the three months ended December 31, 2017, the Company recognized $13 million in non-cash Summarized financial information for Foxtel, presented in accordance with U.S. GAAP, was as follows: For the six months ended 2017 2016 (in millions) Revenues $ 1,231 $ 1,220 Operating income (a) 120 184 Net income 56 40 (a) Includes Depreciation and amortization of $118 million and $103 million for the six months ended December 31, 2017 and 2016, respectively. Operating income before depreciation and amortization was $238 million and $287 million for the six months ended December 31, 2017 and 2016, respectively. |
Borrowings
Borrowings | 6 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Borrowings | NOTE 5. BORROWINGS During the three months ended December 31, 2017, REA Group repaid A$120 million (approximately $93 million) of the A$480 million revolving loan facility it used to fund the iProperty acquisition, corresponding to its facility due December 2017. Remaining borrowings under the facility were A$360 million (approximately $280 million). |
Equity
Equity | 6 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Equity | NOTE 6. EQUITY The following table summarizes changes in equity: For the six months ended December 31, 2017 2016 News Noncontrolling Total News Noncontrolling Total (in millions) Balance, beginning of period $ 10,789 $ 284 $ 11,073 $ 11,564 $ 218 $ 11,782 Net (loss) income (15 ) 36 21 (304 ) 85 (219 ) Other comprehensive income (loss) 132 3 135 (261 ) (7 ) (268 ) Dividends (59 ) (21 ) (80 ) (59 ) (18 ) (77 ) Other 13 (4 ) 9 15 (5 ) 10 Balance, end of period $ 10,860 $ 298 $ 11,158 $ 10,955 $ 273 $ 11,228 Stock Repurchases In May 2013, the Company’s Board of Directors (the “Board of Directors”) authorized the Company to repurchase up to an aggregate of $500 million of its Class A Common Stock. On May 10, 2015, the Company announced it had begun repurchasing shares of Class A Common Stock under the stock repurchase program. No stock repurchases were made during the six months ended December 31, 2017. Through February 2, 2018, the Company cumulatively repurchased approximately 5.2 million shares of Class A Common Stock for an aggregate cost of approximately $71 million. The remaining authorized amount under the stock repurchase program as of February 2, 2018 was approximately $429 million. All decisions regarding any future stock repurchases are at the sole discretion of a duly appointed committee of the Board of Directors and management. The committee’s decisions regarding future stock repurchases will be evaluated from time to time in light of many factors, including the Company’s financial condition, earnings, capital requirements and debt facility covenants, other contractual restrictions, as well as legal requirements, regulatory constraints, industry practice, market volatility and other factors that the committee may deem relevant. The stock repurchase authorization may be modified, extended, suspended or discontinued at any time by the Board of Directors and the Board of Directors cannot provide any assurances that any additional shares will be repurchased. Dividends In August 2017, the Board of Directors declared a semi-annual cash dividend of $0.10 per share for Class A Common Stock and Class B Common Stock. This dividend was paid on October 18, 2017 to stockholders of record at the close of business on September 13, 2017. The timing, declaration, amount and payment of future dividends to stockholders, if any, is within the discretion of the Board of Directors. The Board of Directors’ decisions regarding the payment of future dividends will depend on many factors, including the Company’s financial condition, earnings, capital requirements and debt facility covenants, other contractual restrictions, as well as legal requirements, regulatory constraints, industry practice, market volatility and other factors that the Board of Directors deems relevant. For the six months ended 2017 2016 Cash dividend paid per share $ 0.10 $ 0.10 |
Loss Per Share
Loss Per Share | 6 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Loss Per Share | NOTE 7. LOSS PER SHARE The following tables set forth the computation of basic and diluted loss per share under ASC 260, “Earnings per Share”: For the three months For the six months 2017 2016 2017 2016 (in millions, except per share amounts) Net (loss) income $ (66 ) $ (219 ) $ 21 $ (219 ) Less: Net income attributable to noncontrolling interests (17 ) (70 ) (36 ) (85 ) Less: Redeemable preferred stock dividends (a) (1 ) (1 ) (1 ) (1 ) Net loss available to News Corporation stockholders $ (84 ) $ (290 ) $ (16 ) $ (305 ) Weighted-average number of shares of common stock outstanding - basic 582.7 581.4 582.5 581.1 Dilutive effect of equity awards (b) — — — — Weighted-average number of shares of common stock outstanding - diluted 582.7 581.4 582.5 581.1 Net loss available to News Corporation stockholders per share - basic $ (0.14 ) $ (0.50 ) $ (0.03 ) $ (0.52 ) Net loss available to News Corporation stockholders per share - diluted $ (0.14 ) $ (0.50 ) $ (0.03 ) $ (0.52 ) (a) In connection with the Separation, as defined in Note 8, Twenty-First Century Fox, Inc. (“21st Century Fox”) sold 4,000 shares of cumulative redeemable preferred stock with a par value of $5,000 per share of a newly formed U.S. subsidiary of the Company. The preferred stock pays dividends at a rate of 9.5% per annum, payable quarterly. The preferred stock is callable by the Company at any time after the fifth year and is puttable at the option of the holder after 10 years. (b) The dilutive impact of the Company’s PSUs, RSUs and stock options has been excluded from the calculation of diluted loss per share for the three and six months ended December 31, 2017 and the three and six months ended December 31, 2016 because their inclusion would have an antidilutive effect on the net loss per share. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 8. COMMITMENTS AND CONTINGENCIES Commitments The Company has commitments under certain firm contractual arrangements (“firm commitments”) to make future payments. These firm commitments secure the future rights to various assets and services to be used in the normal course of operations. The Company’s commitments as of December 31, 2017 have not changed significantly from the disclosures included in the 2017 Form 10-K. Contingencies The Company routinely is involved in various legal proceedings, claims and governmental inspections or investigations, including those discussed below. The outcome of these matters and claims is subject to significant uncertainty, and the Company often cannot predict what the eventual outcome of pending matters will be or the timing of the ultimate resolution of these matters. Fees, expenses, fines, penalties, judgments or settlement costs which might be incurred by the Company in connection with the various proceedings could adversely affect its results of operations and financial condition. The Company establishes an accrued liability for legal claims when it determines that a loss is both probable and the amount of the loss can be reasonably estimated. Once established, accruals are adjusted from time to time, as appropriate, in light of additional information. The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be higher or lower than the amounts accrued for such matters. Legal fees associated with litigation and similar proceedings are expensed as incurred. Except as otherwise provided below, for the contingencies disclosed for which there is at least a reasonable possibility that a loss may be incurred, the Company was unable to estimate the amount of loss or range of loss. The Company recognizes gain contingencies when the gain becomes realized or realizable. News America Marketing Valassis Communications, Inc. On November 8, 2013, Valassis Communications, Inc. (“Valassis”) initiated legal proceedings against the Company and/or certain of its subsidiaries alleging violations of various antitrust laws. These proceedings are described in further detail below. • Valassis previously initiated an action against News America Incorporated, News America Marketing FSI L.L.C. and News America Marketing In-Store No. 2:06-cv-10240 Valassis subsequently filed a Notice of Violation of the order issued by the District Court in Valassis I (the “Notice”). The Notice re-asserted • On November 8, 2013, Valassis also filed a new complaint in the District Court against News Corporation and the NAM Parties (together, the “NAM Group”) alleging violations of federal and state antitrust laws and common law business torts (“Valassis II”). The complaint sought treble damages, injunctive relief and attorneys’ fees and costs. On December 19, 2013, the NAM Group filed a motion to dismiss the newly filed complaint, and on March 30, 2016, the District Court ordered that Valassis’s bundling and tying claims be dismissed without prejudice to Valassis’s rights to pursue relief for those claims in Valassis I and that all remaining claims in the NAM Group’s motion to dismiss be referred to the Antitrust Expert Panel. The Antitrust Expert Panel was convened and, on February 8, 2017, recommended that Valassis I be dismissed and the NAM Group’s counterclaims in Valassis II be dismissed with leave to replead three of the four counterclaims. The NAM Group filed an amended counterclaim on February 27, 2017. Valassis did not object to the Antitrust Expert Panel’s recommendation to dismiss Valassis I, but it filed motions with the District Court asserting that the referral of Valassis II to the Antitrust Expert Panel was no longer valid and seeking either to re-open In-Store On February 29, 2016, the parties agreed to settle the litigation in the N.Y. District Court in which The Dial Corporation, Henkel Consumer Goods, Inc., H.J. Heinz Company, H.J. Heinz Company, L.P., Foster Poultry Farms, Smithfield Foods, Inc., HP Hood LLC and BEF Foods, Inc. alleged various claims under federal and state antitrust law against the NAM Group. Pursuant to the terms of the settlement, the NAM Group paid the settlement amount of approximately $250 million during the quarter ended September 30, 2016, and the litigation was subsequently dismissed with prejudice. The NAM Group also settled related claims for approximately $30 million in February 2016. U.K. Newspaper Matters Civil claims have been brought against the Company with respect to, among other things, voicemail interception and inappropriate payments to public officials at the Company’s former publication, The News of the World The Sun In connection with the separation of the Company’s businesses (the “Separation”) from 21st Century Fox on June 28, 2013 (the “Distribution Date”), the Company and 21st Century Fox agreed in the Separation and Distribution Agreement that 21st Century Fox would indemnify the Company for payments made after the Distribution Date arising out of civil claims and investigations relating to the U.K. Newspaper Matters as well as legal and professional fees and expenses paid in connection with the previously concluded criminal matters, other than fees, expenses and costs relating to employees (i) who are not directors, officers or certain designated employees or (ii) with respect to civil matters, who are not co-defendants after-tax The net expense (benefit) related to the U.K. Newspaper Matters in Selling, general and administrative expenses was $3 million and $2 million for the three months ended December 31, 2017 and 2016, respectively, and ($40) million and $4 million for the six months ended December 31, 2017 and 2016, respectively. As of December 31, 2017, the Company has provided for its best estimate of the liability for the claims that have been filed and costs incurred, including liabilities associated with employment taxes, and has accrued approximately $54 million, of which approximately $52 million will be indemnified by 21st Century Fox, and a corresponding receivable was recorded in Other current assets on the Balance Sheet as of December 31, 2017. The net benefit for the six months ended December 31, 2017 and the accrual and receivable recorded as of that date reflect a $46 million impact from the reversal of a portion of the Company’s previously accrued liability and the corresponding receivable from 21st Century Fox as the result of an agreement reached with the relevant tax authority with respect to certain employment taxes. It is not possible to estimate the liability or corresponding receivable for any additional claims that may be filed given the information that is currently available to the Company. If more claims are filed and additional information becomes available, the Company will update the liability provision and corresponding receivable for such matters. The Company is not able to predict the ultimate outcome or cost of the civil claims. It is possible that these proceedings and any adverse resolution thereof could damage its reputation, impair its ability to conduct its business and adversely affect its results of operations and financial condition. Other The Company’s tax returns are subject to on-going |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 9. INCOME TAXES At the end of each interim period, the Company estimates the annual effective tax rate and applies that rate to its ordinary quarterly earnings. The tax expense or benefit related to significant, unusual or extraordinary items that will be separately reported or reported net of their related tax effect are individually computed and recognized in the interim period in which those items occur. In addition, the effects of changes in enacted tax laws or rates or tax status are recognized in the interim period in which the change occurs. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act includes significant changes to the U.S. corporate income tax system including, among other things, lowering the U.S. statutory federal tax rate to 21% and implementing a territorial tax system. As the Company has a June 30 fiscal year-end, the impact of the lower tax rate will be phased in resulting in a U.S. statutory federal tax rate of approximately 28% for the fiscal year ending June 30, 2018 and a 21% U.S. statutory federal tax rate for fiscal years thereafter. The Tax Act also adds many new provisions, some of which do not apply until fiscal 2019, including changes to bonus depreciation, limits on the deductions for executive compensation and interest expense, a tax on global intangible low-taxed income (“GILTI”), the base erosion anti-abuse tax and a deduction for foreign-derived intangible income. The Company is assessing the impact of the provisions of the Tax Act which do not apply until fiscal 2019 and has elected to account for the tax on GILTI as a period cost and thus has not adjusted any net deferred tax assets of its foreign subsidiaries for the new tax. There are certain transitional impacts of the Tax Act. As part of the transition to the new territorial tax system, the Tax Act imposes a tax on the mandatory deemed repatriation of earnings of the Company’s foreign subsidiaries. In addition, the reduction of the U.S. statutory federal tax rate caused the Company to re-measure its U.S. deferred tax assets and liabilities. In accordance with ASC 740, “Income Taxes,” the Company recorded the effects of the tax law change during the quarter ended December 31, 2017, which resulted in a provisional charge of $174 million comprised of an estimated deemed repatriation tax charge of $34 million and an estimated deferred tax charge of $140 million due to the re-measurement of the Company’s net U.S. deferred tax assets. The changes included in the Tax Act are broad and complex. The SEC issued Staff Accounting Bulletin 118 to provide guidance for companies that would allow for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. The Company’s accounting for the tax effects of the Tax Act will be completed during this measurement period. The final transition impacts of the Tax Act may differ from the above estimate, possibly materially, due to, among other things, changes in interpretations of the Tax Act, any legislative action to address questions that arise because of the Tax Act, any changes in accounting standards for income taxes or related interpretations in response to the Tax Act, or any updates or changes to estimates the Company has utilized to calculate the transition impacts, including impacts from changes to current year earnings estimates and foreign exchange rates of foreign subsidiaries. For the three months ended December 31, 2017, the Company recorded a tax charge of $235 million on pre-tax income of $169 million resulting in an effective tax rate that was higher than the U.S. statutory rate. The higher tax rate resulted from the enactment of the Tax Act causing an increase in income tax expense of $174 million as discussed above. For the six months ended December 31, 2017, the Company recorded a tax charge of $289 million on pre-tax income of $310 million resulting in an effective tax rate that was higher than the U.S. statutory rate. The higher tax rate resulted from the enactment of the Tax Act causing an increase in income tax expense of $174 million as discussed above. For the three months ended December 31, 2016, the Company recorded a tax benefit of $32 million on a pre-tax loss of $251 million resulting in an effective tax rate that was lower than the U.S. statutory tax rate. The lower tax rate was primarily due to a net tax benefit of $121 million on the non-cash write-down of assets and investments in Australia and a full valuation allowance recorded on losses incurred in Australia and certain other foreign jurisdictions, offset by lower taxes on the sale of REA Group’s European business. For the six months ended December 31, 2016, the Company recorded a tax benefit of $33 million on a pre-tax loss of $252 million resulting in an effective tax rate that was lower than the U.S. statutory tax rate. The lower tax rate was primarily due to a net tax benefit of $121 million on the non-cash write-down of assets and investments in Australia and a full valuation allowance recorded on losses incurred in Australia and certain other foreign jurisdictions, offset by lower taxes on the sale of REA Group’s European business. Management assesses available evidence to determine whether sufficient future taxable income will be generated to permit the use of existing deferred tax assets. Based on management’s assessment of available evidence, it has been determined that it is more likely than not that deferred tax assets in certain foreign jurisdictions may not be realized and therefore, a valuation allowance has been established against those tax assets. The Company’s tax returns are subject to on-going review and examination by various tax authorities. Tax authorities may not agree with the treatment of items reported in our tax returns, and therefore the outcome of tax reviews and examinations can be unpredictable. The Company is currently undergoing tax examinations in several states and foreign jurisdictions. The Company believes it has appropriately accrued for the expected outcome of uncertain tax matters and believes such liabilities represent a reasonable provision for taxes ultimately expected to be paid, however, the Company may need to accrue additional income tax expense and our liability may need to be adjusted as new information becomes known and as these tax examinations continue to progress, or as settlements or litigations occur. The Company paid gross income taxes of $89 million and $69 million during the six months ended December 31, 2017 and 2016, respectively. |
Segment Information
Segment Information | 6 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 10. SEGMENT INFORMATION The Company manages and reports its businesses in the following five segments: • News and Information Services The Wall Street Journal Barron ’ s The Australian, The Daily Telegraph, Herald Sun The Courier Mail , The Times, The Sunday Times, The Sun The Sun on Sunday New York Post in-store • Book Publishing The Hobbit Goodnight Moon To Kill a Mockingbird, Jesus Calling Hillbilly Elegy • Digital Real Estate Services Move is a leading provider of online real estate services in the U.S. and primarily operates realtor.com ® SM SM ® ® TM • Cable Network Programming ANC, acquired in December 2016, operates the SKY NEWS network, Australia’s 24-hour • Other Segment EBITDA is defined as revenues less operating expenses and selling, general and administrative expenses. Segment EBITDA does not include: depreciation and amortization, impairment and restructuring charges, equity losses of affiliates, interest, net, other, net, income tax (expense) benefit and net income attributable to noncontrolling interests. Segment EBITDA may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what items should be included in the calculation of Segment EBITDA. Segment EBITDA is the primary measure used by the Company’s chief operating decision maker to evaluate the performance of and allocate resources within the Company’s businesses. Segment EBITDA provides management, investors and equity analysts with a measure to analyze the operating performance of each of the Company’s business segments and its enterprise value against historical data and competitors’ data, although historical results may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences). For the three months ended For the six months ended December 31, December 31, 2017 2016 2017 2016 (in millions) Revenues: News and Information Services $ 1,298 $ 1,303 $ 2,539 $ 2,525 Book Publishing 469 466 870 855 Digital Real Estate Services 292 242 563 468 Cable Network Programming 120 104 265 232 Other 1 1 1 1 Total revenues $ 2,180 $ 2,116 $ 4,238 $ 4,081 Segment EBITDA: News and Information Services $ 140 $ 142 $ 213 $ 188 Book Publishing 80 75 130 123 Digital Real Estate Services 119 95 214 162 Cable Network Programming 33 51 60 65 Other (43 ) (38 ) (39 ) (83 ) Depreciation and amortization (100 ) (120 ) (197 ) (240 ) Impairment and restructuring charges (12 ) (356 ) (27 ) (376 ) Equity losses of affiliates (18 ) (238 ) (28 ) (253 ) Interest, net 1 15 7 22 Other, net (31 ) 123 (23 ) 140 Income (loss) before income tax (expense) benefit 169 (251 ) 310 (252 ) Income tax (expense) benefit (235 ) 32 (289 ) 33 Net income (loss) $ (66 ) $ (219 ) $ 21 $ (219 ) As of As of December 31, 2017 June 30, 2017 (in millions) Total assets: News and Information Services $ 6,065 $ 6,142 Book Publishing 1,907 1,845 Digital Real Estate Services 2,166 2,307 Cable Network Programming 1,216 1,194 Other (a) 986 1,037 Investments 2,019 2,027 Total assets $ 14,359 $ 14,552 (a) The Other segment primarily includes Cash and cash equivalents. As of As of December 31, 2017 June 30, 2017 (in millions) Goodwill and intangible assets, net: News and Information Services $ 2,957 $ 2,952 Book Publishing 837 835 Digital Real Estate Services 1,489 1,420 Cable Network Programming 915 912 Other — — Total goodwill and intangible assets, net $ 6,198 $ 6,119 |
Additional Financial Informatio
Additional Financial Information | 6 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Financial Information | NOTE 11. ADDITIONAL FINANCIAL INFORMATION 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. In determining the allowance for returns, management analyzes historical returns, current economic trends and changes in customer demand and acceptance of the Company’s products. Based on this information, management reserves a certain portion of revenues that provide the customer with the right of return. The allowance for doubtful accounts is estimated based on historical experience, receivable aging, current economic trends and specific identification of certain receivables that are at risk of not being collected. Receivables, net consist of: As of As of December 31, 2017 June 30, 2017 (in millions) Receivables $ 1,593 $ 1,484 Allowance for sales returns (174 ) (166 ) Allowances for doubtful accounts (40 ) (42 ) Receivables, net $ 1,379 $ 1,276 The Company’s receivables did not contain significant concentrations of credit risk as of December 31, 2017 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. Other Current Assets The following table sets forth the components of Other current assets: As of As of December 31, 2017 June 30, 2017 (in millions) Inventory (a) $ 216 $ 208 Amounts due from 21st Century Fox 52 82 Prepayments and other current assets 215 233 Total Other current assets $ 483 $ 523 (a) Inventory at December 31, 2017 and June 30, 2017 was primarily comprised of books, newsprint, printing ink and programming rights. Other Non-Current The following table sets forth the components of Other non-current As of As of December 31, 2017 June 30, 2017 (in millions) Royalty advances to authors $ 301 $ 298 Other 143 144 Total Other non-current $ 444 $ 442 Other Current Liabilities The following table sets forth the components of Other current liabilities: As of As of December 31, 2017 June 30, 2017 (in millions) Current tax payable $ 39 $ 39 Royalties and commissions payable 179 152 Current portion of long-term debt 94 103 Other 239 306 Total Other current liabilities $ 551 $ 600 Other, net The following table sets forth the components of Other, net: For the three months ended For the six months ended 2017 2016 2017 2016 (in millions) Gain on sale of REA Group’s European business $ — $ 120 $ — $ 120 Write-down of available-for-sale (a) (30 ) (21 ) (30 ) (21 ) Gain on sale of other businesses — 11 — 11 Gain on sale of equity method investments — 11 — 17 Other, net (1 ) 2 7 13 Total Other, net $ (31 ) $ 123 $ (23 ) $ 140 (a) For the three and six months ended December 31, 2017 and 2016, the write-downs of available-for-sale |
Subsequent Events
Subsequent Events | 6 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 12. SUBSEQUENT EVENTS In February 2018, the Board of Directors declared a semi-annual cash dividend of $0.10 per share for Class A Common Stock and Class B Common Stock. This dividend is payable on April 18, 2018 to stockholders of record as of March 14, 2018. |
Description of Business and B20
Description of Business and Basis of Presentation (Policies) | 6 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of the Company, which are referred to herein as the “Consolidated Financial Statements,” have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q S-X. Intercompany transactions and balances have been eliminated. Equity investments in which the Company exercises significant influence but does not exercise control and is not the primary beneficiary are accounted for using the equity method. Investments in which the Company is not able to exercise significant influence over the investee are designated as available-for-sale The consolidated statements of operations are referred to herein as the “Statements of Operations.” The consolidated balance sheets are referred to herein as the “Balance Sheets.” The consolidated statements of cash flows are referred to herein as the “Statements of Cash Flows.” The accompanying Consolidated Financial Statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K 10-K”). Certain reclassifications have been made to the prior period consolidated financial statements to conform to the current year presentation. Specifically, in the third quarter of fiscal 2017, the Company revised the Statements of Cash Flows to present cash flow activities from discontinued operations within each of the operating, investing and financing activities categories. The Company’s fiscal year ends on the Sunday closest to June 30. Fiscal 2018 and fiscal 2017 include 52 weeks. All references to the three months ended December 31, 2017 and 2016 relate to the three months ended December 31, 2017 and January 1, 2017, respectively. For convenience purposes, the Company continues to date its consolidated financial statements as of December 31. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, 2016-09”). 2016-09 2016-09 In October 2016, the FASB issued ASU 2016-16, 2016-16”). 2016-16 2016-16 2016-16, Issued In May 2014, FASB issued ASU 2014-09, 2014-09”). 2014-09 2015-14, 2014-09 2014-09 2014-09 The FASB has also issued several standards which provide additional clarification and implementation guidance on the previously issued ASU 2014-09 The Company is currently evaluating the overall impact that ASU 2014-09 In January 2016, the FASB issued ASU 2016-01, 825-10): 2016-01”). 2016-01 2016-01 available-for-sale 2016-01, available-for-sale 2016-01 In February 2016, the FASB issued ASU 2016-02, 2016-02”). 2016-02 2016-02 right-of-use 2016-02 2016-02 In March 2017, the FASB issued ASU 2017-07, 2017-07”). 2017-07 715-30-35-4 715-60-35-9 2017-07 2017-07 |
Impairment and Restructuring 21
Impairment and Restructuring Charges (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Changes in Restructuring Program Liabilities | Changes in restructuring program liabilities were as follows: For the three months ended December 31, 2017 2016 One time Facility Other Total One time Facility Other Total (in millions) Balance, beginning of period $ 25 $ 5 $ 10 $ 40 $ 30 $ 5 $ 6 $ 41 Additions 11 — 1 12 47 — — 47 Payments (15 ) (1 ) (1 ) (17 ) (36 ) — — (36 ) Other 1 — — 1 — — — — Balance, end of period $ 22 $ 4 $ 10 $ 36 $ 41 $ 5 $ 6 $ 52 For the six months ended December 31, 2017 2016 One time Facility Other Total One time Facility Other Total (in millions) Balance, beginning of period $ 33 $ 6 $ 10 $ 49 $ 33 $ 5 $ 6 $ 44 Additions 26 — 1 27 67 — — 67 Payments (38 ) (1 ) (1 ) (40 ) (58 ) — — (58 ) Other 1 (1 ) — — (1 ) — — (1 ) Balance, end of period $ 22 $ 4 $ 10 $ 36 $ 41 $ 5 $ 6 $ 52 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Investments Schedule [Abstract] | |
Schedule of Investments | The Company’s investments were comprised of the following: Ownership As of As of (in millions) Equity method investments: Foxtel (a) 50% $ 1,605 $ 1,208 Other equity method investments (b) various 123 133 Loan receivable from Foxtel (a) N/A — 370 Available-for-sale (c) various 80 97 Cost method investments (d) various 211 219 Total Investments $ 2,019 $ 2,027 (a) In May 2012, Foxtel purchased Austar United Communications Ltd. The transaction was funded by Foxtel bank debt and pro rata capital contributions made by Foxtel shareholders in the form of subordinated shareholder notes based on their respective ownership interests. The Company’s share of the subordinated shareholder notes was approximately A$481 million ($370 million) as of June 30, 2017. During the three months ended September 30, 2017, Foxtel’s shareholders made pro-rata (b) Other equity method investments are primarily comprised of Elara Technologies Pte. Ltd., which operates PropTiger.com, Makaan.com and Housing.com. (c) Available-for-sale (d) Cost method investments are primarily comprised of the Company’s investment in SEEKAsia Limited and certain investments in China. |
Schedule of Available-for-Sale Securities | The cost basis, unrealized gains, unrealized losses and fair market value of available-for-sale As of As of (in millions) Cost basis of available-for-sale $ 81 $ 99 Accumulated gross unrealized gain 1 — Accumulated gross unrealized loss (2 ) (2 ) Fair value of available-for-sale $ 80 $ 97 Net deferred tax asset $ — $ (1 ) |
Schedule of Equity Losses of Affiliates | The Company’s equity losses of affiliates were as follows: For the three months ended For the six months ended 2017 2016 2017 2016 (in millions) (in millions) Foxtel (a) $ 1 $ (233 ) $ (4 ) $ (244 ) Other equity affiliates, net (b) (19 ) (5 ) (24 ) (9 ) Total Equity losses of affiliates $ (18 ) $ (238 ) $ (28 ) $ (253 ) (a) In accordance with ASC 350, “Intangibles—Goodwill and Other,” the Company amortized $15 million and $32 million related to excess cost over the Company’s proportionate share of its investment’s underlying net assets allocated to finite-lived intangible assets during the three and six months ended December 31, 2017, respectively, and $18 million and $37 million in the corresponding periods of fiscal 2017. Such amortization is reflected in Equity losses of affiliates in the Statements of Operations. Additionally, during the second quarter of fiscal 2017, the Company recognized a $227 million non-cash pay-TV (b) During the three months ended December 31, 2017, the Company recognized $13 million in non-cash |
Schedule of Summarized Financial Information | Summarized financial information for Foxtel, presented in accordance with U.S. GAAP, was as follows: For the six months ended 2017 2016 (in millions) Revenues $ 1,231 $ 1,220 Operating income (a) 120 184 Net income 56 40 (a) Includes Depreciation and amortization of $118 million and $103 million for the six months ended December 31, 2017 and 2016, respectively. Operating income before depreciation and amortization was $238 million and $287 million for the six months ended December 31, 2017 and 2016, respectively. |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Summary of Changes in Equity | The following table summarizes changes in equity: For the six months ended December 31, 2017 2016 News Noncontrolling Total News Noncontrolling Total (in millions) Balance, beginning of period $ 10,789 $ 284 $ 11,073 $ 11,564 $ 218 $ 11,782 Net (loss) income (15 ) 36 21 (304 ) 85 (219 ) Other comprehensive income (loss) 132 3 135 (261 ) (7 ) (268 ) Dividends (59 ) (21 ) (80 ) (59 ) (18 ) (77 ) Other 13 (4 ) 9 15 (5 ) 10 Balance, end of period $ 10,860 $ 298 $ 11,158 $ 10,955 $ 273 $ 11,228 |
Summary of Dividends Paid Per Share | For the six months ended 2017 2016 Cash dividend paid per share $ 0.10 $ 0.10 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Loss Per Share | The following tables set forth the computation of basic and diluted loss per share under ASC 260, “Earnings per Share”: For the three months For the six months 2017 2016 2017 2016 (in millions, except per share amounts) Net (loss) income $ (66 ) $ (219 ) $ 21 $ (219 ) Less: Net income attributable to noncontrolling interests (17 ) (70 ) (36 ) (85 ) Less: Redeemable preferred stock dividends (a) (1 ) (1 ) (1 ) (1 ) Net loss available to News Corporation stockholders $ (84 ) $ (290 ) $ (16 ) $ (305 ) Weighted-average number of shares of common stock outstanding - basic 582.7 581.4 582.5 581.1 Dilutive effect of equity awards (b) — — — — Weighted-average number of shares of common stock outstanding - diluted 582.7 581.4 582.5 581.1 Net loss available to News Corporation stockholders per share - basic $ (0.14 ) $ (0.50 ) $ (0.03 ) $ (0.52 ) Net loss available to News Corporation stockholders per share - diluted $ (0.14 ) $ (0.50 ) $ (0.03 ) $ (0.52 ) (a) In connection with the Separation, as defined in Note 8, Twenty-First Century Fox, Inc. (“21st Century Fox”) sold 4,000 shares of cumulative redeemable preferred stock with a par value of $5,000 per share of a newly formed U.S. subsidiary of the Company. The preferred stock pays dividends at a rate of 9.5% per annum, payable quarterly. The preferred stock is callable by the Company at any time after the fifth year and is puttable at the option of the holder after 10 years. (b) The dilutive impact of the Company’s PSUs, RSUs and stock options has been excluded from the calculation of diluted loss per share for the three and six months ended December 31, 2017 and the three and six months ended December 31, 2016 because their inclusion would have an antidilutive effect on the net loss per share. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue and Segment EBITDA from Segments to Consolidated | Segment EBITDA is the primary measure used by the Company’s chief operating decision maker to evaluate the performance of and allocate resources within the Company’s businesses. Segment EBITDA provides management, investors and equity analysts with a measure to analyze the operating performance of each of the Company’s business segments and its enterprise value against historical data and competitors’ data, although historical results may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences). For the three months ended For the six months ended December 31, December 31, 2017 2016 2017 2016 (in millions) Revenues: News and Information Services $ 1,298 $ 1,303 $ 2,539 $ 2,525 Book Publishing 469 466 870 855 Digital Real Estate Services 292 242 563 468 Cable Network Programming 120 104 265 232 Other 1 1 1 1 Total revenues $ 2,180 $ 2,116 $ 4,238 $ 4,081 Segment EBITDA: News and Information Services $ 140 $ 142 $ 213 $ 188 Book Publishing 80 75 130 123 Digital Real Estate Services 119 95 214 162 Cable Network Programming 33 51 60 65 Other (43 ) (38 ) (39 ) (83 ) Depreciation and amortization (100 ) (120 ) (197 ) (240 ) Impairment and restructuring charges (12 ) (356 ) (27 ) (376 ) Equity losses of affiliates (18 ) (238 ) (28 ) (253 ) Interest, net 1 15 7 22 Other, net (31 ) 123 (23 ) 140 Income (loss) before income tax (expense) benefit 169 (251 ) 310 (252 ) Income tax (expense) benefit (235 ) 32 (289 ) 33 Net income (loss) $ (66 ) $ (219 ) $ 21 $ (219 ) |
Reconciliation of Assets from Segments to Consolidated | As of As of December 31, 2017 June 30, 2017 (in millions) Total assets: News and Information Services $ 6,065 $ 6,142 Book Publishing 1,907 1,845 Digital Real Estate Services 2,166 2,307 Cable Network Programming 1,216 1,194 Other (a) 986 1,037 Investments 2,019 2,027 Total assets $ 14,359 $ 14,552 (a) The Other segment primarily includes Cash and cash equivalents. |
Reconciliation of Goodwill and Intangible Assets from Segments to Consolidated | As of As of December 31, 2017 June 30, 2017 (in millions) Goodwill and intangible assets, net: News and Information Services $ 2,957 $ 2,952 Book Publishing 837 835 Digital Real Estate Services 1,489 1,420 Cable Network Programming 915 912 Other — — Total goodwill and intangible assets, net $ 6,198 $ 6,119 |
Additional Financial Informat26
Additional Financial Information (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Receivables, Net | Receivables, net consist of: As of As of December 31, 2017 June 30, 2017 (in millions) Receivables $ 1,593 $ 1,484 Allowance for sales returns (174 ) (166 ) Allowances for doubtful accounts (40 ) (42 ) Receivables, net $ 1,379 $ 1,276 |
Components of Other Current Assets | The following table sets forth the components of Other current assets: As of As of December 31, 2017 June 30, 2017 (in millions) Inventory (a) $ 216 $ 208 Amounts due from 21st Century Fox 52 82 Prepayments and other current assets 215 233 Total Other current assets $ 483 $ 523 (a) Inventory at December 31, 2017 and June 30, 2017 was primarily comprised of books, newsprint, printing ink and programming rights. |
Components of Other Non-Current Assets | The following table sets forth the components of Other non-current As of As of December 31, 2017 June 30, 2017 (in millions) Royalty advances to authors $ 301 $ 298 Other 143 144 Total Other non-current $ 444 $ 442 |
Components of Other Current Liabilities | The following table sets forth the components of Other current liabilities: As of As of December 31, 2017 June 30, 2017 (in millions) Current tax payable $ 39 $ 39 Royalties and commissions payable 179 152 Current portion of long-term debt 94 103 Other 239 306 Total Other current liabilities $ 551 $ 600 |
Components of Other, Net | The following table sets forth the components of Other, net: For the three months ended For the six months ended 2017 2016 2017 2016 (in millions) Gain on sale of REA Group’s European business $ — $ 120 $ — $ 120 Write-down of available-for-sale (a) (30 ) (21 ) (30 ) (21 ) Gain on sale of other businesses — 11 — 11 Gain on sale of equity method investments — 11 — 17 Other, net (1 ) 2 7 13 Total Other, net $ (31 ) $ 123 $ (23 ) $ 140 (a) For the three and six months ended December 31, 2017 and 2016, the write-downs of available-for-sale |
Description of Business and B27
Description of Business and Basis of Presentation - Additional Information (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Available-for-sale securities | $ 80 |
Available-for-sale securities, net unrealized losses | $ (1) |
Acquisitions, Disposals and O28
Acquisitions, Disposals and Other Transactions - Additional Information (Detail) AUD in Millions, $ in Millions | Jul. 31, 2017USD ($) | Jul. 31, 2017AUD | Jul. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) |
Schedule Of Business Acquisitions And Divestitures [Line Items] | ||||||
Goodwill | $ 3,917 | $ 3,838 | ||||
Smartline Home Loans Pty Limited [Member] | ||||||
Schedule Of Business Acquisitions And Divestitures [Line Items] | ||||||
Business acquisition, acquired interest percentage | 80.30% | 80.30% | ||||
Business acquisition, cost of acquired entity, cash paid | $ 55 | AUD 70 | ||||
Non-controlling ownership percentage | 19.70% | 19.70% | ||||
Option to sell minority interest, period | 3 years | |||||
Minority interest ownership mandatorily redeemable period after closing | 4 years | |||||
Amount expected to be paid for remaining interest | $ 12 | |||||
Goodwill | $ 47 | $ 47 | ||||
Smartline Home Loans Pty Limited [Member] | Customer Relationships [Member] | ||||||
Schedule Of Business Acquisitions And Divestitures [Line Items] | ||||||
Business acquisition purchase price allocation, intangible assets | $ 19 | $ 19 | ||||
Finite lived intangible assets, weighted average useful life | 16 years |
Impairment and Restructuring 29
Impairment and Restructuring Charges - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 12 | $ 47 | $ 27 | $ 67 | |
Non-cash impairment charge | 0 | 310 | |||
Long lived assets | 1,631 | $ 1,631 | $ 1,624 | ||
Australian Newspapers [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Non-cash impairment charge | 310 | 310 | |||
Long lived assets | 420 | 420 | |||
Long lived assets | 375 | 375 | |||
Long lived assets | 30 | 30 | |||
Discount rates | 11.50% | ||||
Trade Names [Member] | Australian Newspapers [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Non-cash impairment charge | 18 | 18 | |||
Presses and Print Related Equipment [Member] | Australian Newspapers [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Non-cash impairment charge | 149 | 149 | |||
Capitalized Software [Member] | Australian Newspapers [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Non-cash impairment charge | 66 | 66 | |||
Facilities [Member] | Australian Newspapers [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Non-cash impairment charge | 77 | 77 | |||
Other Current Liabilities [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring liabilities, current | 24 | $ 24 | |||
Other Non-Current Liabilities [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring liabilities, non-current | 12 | 12 | |||
News and Information Services [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 11 | $ 47 | $ 25 | $ 66 |
Impairment and Restructuring 30
Impairment and Restructuring Charges - Schedule of Changes in Restructuring Program Liabilities (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Liabilities, Beginning Balance | $ 40 | $ 41 | $ 49 | $ 44 |
Additions | 12 | 47 | 27 | 67 |
Payments | (17) | (36) | (40) | (58) |
Other | 1 | 0 | 0 | (1) |
Restructuring Liabilities, Ending Balance | 36 | 52 | 36 | 52 |
One Time Employee Termination Benefits [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Liabilities, Beginning Balance | 25 | 30 | 33 | 33 |
Additions | 11 | 47 | 26 | 67 |
Payments | (15) | (36) | (38) | (58) |
Other | 1 | 0 | 1 | (1) |
Restructuring Liabilities, Ending Balance | 22 | 41 | 22 | 41 |
Facility Related Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Liabilities, Beginning Balance | 5 | 5 | 6 | 5 |
Additions | 0 | 0 | 0 | 0 |
Payments | (1) | 0 | (1) | 0 |
Other | 0 | 0 | (1) | 0 |
Restructuring Liabilities, Ending Balance | 4 | 5 | 4 | 5 |
Other Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Liabilities, Beginning Balance | 10 | 6 | 10 | 6 |
Additions | 1 | 0 | 1 | 0 |
Payments | (1) | 0 | (1) | 0 |
Other | 0 | 0 | 0 | 0 |
Restructuring Liabilities, Ending Balance | $ 10 | $ 6 | $ 10 | $ 6 |
Investments - Schedule of Inves
Investments - Schedule of Investments (Detail) AUD in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017AUD | Jun. 30, 2017USD ($) | |||
Schedule of Investments [Line Items] | ||||||
Available-for-sale securities | [1] | $ 80 | $ 97 | |||
Cost method investments | [2] | 211 | 219 | |||
Total Investments | 2,019 | 2,027 | ||||
Foxtel [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Equity method investment carrying value | [3] | 1,605 | 1,208 | |||
Loan receivable from Foxtel | $ 0 | [3] | AUD 481 | 370 | [3] | |
Equity method investment, ownership percentage | [3] | 50.00% | 50.00% | |||
Other Equity Method Investments [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Equity method investment carrying value | [4] | $ 123 | $ 133 | |||
[1] | Available-for-sale securities are primarily comprised of the Company's investment in HT&E Limited (formerly APN News and Media Limited), which operates a portfolio of Australian radio and outdoor media assets. | |||||
[2] | Cost method investments are primarily comprised of the Company's investment in SEEKAsia Limited and certain investments in China. | |||||
[3] | In May 2012, Foxtel purchased Austar United Communications Ltd. The transaction was funded by Foxtel bank debt and pro rata capital contributions made by Foxtel shareholders in the form of subordinated shareholder notes based on their respective ownership interests. The Company's share of the subordinated shareholder notes was approximately A$481 million ($370 million) as of June 30, 2017. During the three months ended September 30, 2017, Foxtel's shareholders made pro-rata capital contributions to Foxtel by way of promissory notes. The Company's share of the capital contributions was A$494 million ($388 million) at September 28, 2017, and the Company's investment in Foxtel increased by this amount. Foxtel utilized the shareholders' capital contributions to repay its subordinated shareholder notes and interest accrued in the three months ended September 30, 2017. As a result, such notes were considered to be repaid as of September 30, 2017. | |||||
[4] | Other equity method investments are primarily comprised of Elara Technologies Pte. Ltd., which operates PropTiger.com, Makaan.com and Housing.com. |
Investments - Schedule of Inv32
Investments - Schedule of Investments (Parenthetical) (Detail) - Foxtel [Member] AUD in Millions, $ in Millions | Sep. 28, 2017USD ($) | Sep. 28, 2017AUD | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2017AUD | Jun. 30, 2017USD ($) | [1] |
Schedule of Investments [Line Items] | |||||||
Loan receivable from Foxtel | $ 0 | AUD 481 | $ 370 | ||||
Equity method investment additional capital contribution | $ 388 | AUD 494 | |||||
[1] | In May 2012, Foxtel purchased Austar United Communications Ltd. The transaction was funded by Foxtel bank debt and pro rata capital contributions made by Foxtel shareholders in the form of subordinated shareholder notes based on their respective ownership interests. The Company's share of the subordinated shareholder notes was approximately A$481 million ($370 million) as of June 30, 2017. During the three months ended September 30, 2017, Foxtel's shareholders made pro-rata capital contributions to Foxtel by way of promissory notes. The Company's share of the capital contributions was A$494 million ($388 million) at September 28, 2017, and the Company's investment in Foxtel increased by this amount. Foxtel utilized the shareholders' capital contributions to repay its subordinated shareholder notes and interest accrued in the three months ended September 30, 2017. As a result, such notes were considered to be repaid as of September 30, 2017. |
Investments - Schedule of Avail
Investments - Schedule of Available-for-Sale Securities (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Jun. 30, 2017 | |
Investments Schedule [Abstract] | |||
Cost basis of available-for-sale securities | $ 81 | $ 99 | |
Accumulated gross unrealized gain | 1 | 0 | |
Accumulated gross unrealized loss | (2) | (2) | |
Fair value of available-for-sale securities | [1] | 80 | 97 |
Net deferred tax asset | $ 0 | $ (1) | |
[1] | Available-for-sale securities are primarily comprised of the Company's investment in HT&E Limited (formerly APN News and Media Limited), which operates a portfolio of Australian radio and outdoor media assets. |
Investments - Schedule of Equit
Investments - Schedule of Equity Losses of Affiliates (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Schedule of Equity Method Investments [Line Items] | |||||
Total Equity (losses) earnings of affiliates | $ (18) | $ (238) | $ (28) | $ (253) | |
Foxtel [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total Equity (losses) earnings of affiliates | [1] | 1 | (233) | (4) | (244) |
Other Equity Affiliates, Net [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total Equity (losses) earnings of affiliates | $ (19) | $ (5) | $ (24) | $ (9) | |
[1] | In accordance with ASC 350, "Intangibles-Goodwill and Other," the Company amortized $15 million and $32 million related to excess cost over the Company's proportionate share of its investment's underlying net assets allocated to finite-lived intangible assets during the three and six months ended December 31, 2017, respectively, and $18 million and $37 million in the corresponding periods of fiscal 2017. Such amortization is reflected in Equity losses of affiliates in the Statements of Operations. |
Investments - Schedule of Equ35
Investments - Schedule of Equity Losses of Affiliates (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||||
Non-cash write-downs of equity method investment | $ 13 | |||
Foxtel [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Carrying value of the investment prior to the impariment | $ 1,400 | $ 1,400 | ||
Write down of investment | 227 | |||
Foxtel [Member] | Equity Losses of Affiliates [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Amortization of excess basis allocated to finite-lived intangible assets | $ 15 | $ 18 | $ 32 | $ 37 |
Investments - Schedule of Summa
Investments - Schedule of Summarized Financial Information (Detail) - Foxtel [Member] - USD ($) $ in Millions | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Schedule of Equity Method Investments [Line Items] | |||
Revenues | $ 1,231 | $ 1,220 | |
Operating income | [1] | 120 | 184 |
Net income | $ 56 | $ 40 | |
[1] | Includes Depreciation and amortization of $118 million and $103 million for the six months ended December 31, 2017 and 2016, respectively. Operating income before depreciation and amortization was $238 million and $287 million for the six months ended December 31, 2017 and 2016, respectively. |
Investments - Schedule of Sum37
Investments - Schedule of Summarized Financial Information (Parenthetical) (Detail) - Foxtel [Member] - USD ($) $ in Millions | 6 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||
Depreciation and amortization | $ 118 | $ 103 |
Operating income before depreciation and amortization | $ 238 | $ 287 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - 3 months ended Dec. 31, 2017 - REA Group [Member] AUD in Millions, $ in Millions | USD ($) | AUD | AUD |
Debt Instrument [Line Items] | |||
Remaining borrowings facility | $ 280 | AUD 360 | |
Facility Due December 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Repayment of credit facility | $ 93 | AUD 120 | |
iProperty Group Limited [Member] | |||
Debt Instrument [Line Items] | |||
Maximum amount of credit facility | AUD 480 | ||
Credit Agreement maturity | 2017-12 | 2017-12 |
Equity - Summary of Changes in
Equity - Summary of Changes in Equity (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes In Equity [Line Items] | ||||
Balance, beginning of period | $ 11,073 | $ 11,782 | ||
Net (loss) income | $ (66) | $ (219) | 21 | (219) |
Other comprehensive income (loss) | 19 | (311) | 135 | (268) |
Dividends | (80) | (77) | ||
Other | 9 | 10 | ||
Balance, end of period | 11,158 | 11,228 | 11,158 | 11,228 |
News Corporation Stockholders [Member] | ||||
Changes In Equity [Line Items] | ||||
Balance, beginning of period | 10,789 | 11,564 | ||
Net (loss) income | (15) | (304) | ||
Other comprehensive income (loss) | 132 | (261) | ||
Dividends | (59) | (59) | ||
Other | 13 | 15 | ||
Balance, end of period | 10,860 | 10,955 | 10,860 | 10,955 |
Noncontrolling Interests [Member] | ||||
Changes In Equity [Line Items] | ||||
Balance, beginning of period | 284 | 218 | ||
Net (loss) income | 36 | 85 | ||
Other comprehensive income (loss) | 3 | (7) | ||
Dividends | (21) | (18) | ||
Other | (4) | (5) | ||
Balance, end of period | $ 298 | $ 273 | $ 298 | $ 273 |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Feb. 28, 2018 | Aug. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 02, 2018 | May 31, 2013 | |
Class of Stock [Line Items] | ||||||||
Cash dividends declared per share of common stock | $ 0 | $ 0 | $ 0.10 | $ 0.10 | ||||
Cash dividends per common share, date of dividend payable | Oct. 18, 2017 | |||||||
Cash dividends per common share, date of record for dividend | Sep. 13, 2017 | |||||||
Subsequent Event [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Remaining authorized amount under stock repurchase program | $ 429,000,000 | |||||||
Cash dividends per common share, date of dividend payable | Apr. 18, 2018 | |||||||
Cash dividends per common share, date of record for dividend | Mar. 14, 2018 | |||||||
Class A Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Aggregate amount of shares authorized to be repurchased | $ 500,000,000 | |||||||
Number of shares repurchased | 0 | |||||||
Cash dividends declared per share of common stock | $ 0.10 | |||||||
Class A Common Stock [Member] | Subsequent Event [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Number of shares repurchased | 5,200,000 | |||||||
Value of shares purchased in the period | $ 71,000,000 | |||||||
Cash dividends declared per share of common stock | $ 0.10 | |||||||
Class B Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Cash dividends declared per share of common stock | $ 0.10 | |||||||
Class B Common Stock [Member] | Subsequent Event [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Cash dividends declared per share of common stock | $ 0.10 |
Equity - Summary of Dividends P
Equity - Summary of Dividends Paid Per Share (Detail) - $ / shares | 6 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Class A Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Cash dividend paid per share | $ 0.10 | $ 0.10 |
Class B Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Cash dividend paid per share | $ 0.10 | $ 0.10 |
Loss Per Share - Computation of
Loss Per Share - Computation of Basic and Diluted Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Earnings Per Share [Abstract] | |||||
Net (loss) income | $ (66) | $ (219) | $ 21 | $ (219) | |
Less: Net income attributable to noncontrolling interests | (17) | (70) | (36) | (85) | |
Less: Redeemable preferred stock dividends | [1] | (1) | (1) | (1) | (1) |
Net loss available to News Corporation stockholders | $ (84) | $ (290) | $ (16) | $ (305) | |
Weighted-average number of shares of common stock outstanding - basic | 582.7 | 581.4 | 582.5 | 581.1 | |
Dilutive effect of equity awards | [2] | 0 | 0 | 0 | 0 |
Weighted-average number of shares of common stock outstanding - diluted | 582.7 | 581.4 | 582.5 | 581.1 | |
Net loss available to News Corporation stockholders per share - basic | $ (0.14) | $ (0.50) | $ (0.03) | $ (0.52) | |
Net loss available to News Corporation stockholders per share - diluted | $ (0.14) | $ (0.50) | $ (0.03) | $ (0.52) | |
[1] | In connection with the Separation, as defined in Note 8, Twenty-First Century Fox, Inc. ("21st Century Fox") sold 4,000 shares of cumulative redeemable preferred stock with a par value of $5,000 per share of a newly formed U.S. subsidiary of the Company. The preferred stock pays dividends at a rate of 9.5% per annum, payable quarterly. The preferred stock is callable by the Company at any time after the fifth year and is puttable at the option of the holder after 10 years. | ||||
[2] | The dilutive impact of the Company's PSUs, RSUs and stock options has been excluded from the calculation of diluted loss per share for the three and six months ended December 31, 2017 and the three and six months ended December 31, 2016 because their inclusion would have an antidilutive effect on the net loss per share. |
Loss Per Share - Computation 43
Loss Per Share - Computation of Basic and Diluted Loss Per Share (Parenthetical) (Detail) - Redeemable Preferred Stock [Member] | 6 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |
Preferred stock sold | shares | 4,000 |
Preferred stock, par value | $ / shares | $ 5,000 |
Preferred stock dividend rate | 9.50% |
Call Option [Member] | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |
Preferred stock redemption period | 5 years |
Put Option [Member] | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |
Preferred stock redemption period | 10 years |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Feb. 29, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2017 | |
Loss Contingencies [Line Items] | |||||||
Litigation amount payment to plaintiffs | $ 250 | ||||||
Litigation settlement | $ 30 | ||||||
Other current assets | $ 483 | $ 483 | $ 523 | ||||
U.K. Newspaper Matters [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Selling, general and administrative expenses (benefit), net | 3 | $ 2 | (40) | $ 4 | |||
Litigation liability accrued | 54 | 54 | |||||
Impact due to reversal of previous accrued liability due to settlement with tax authority | 46 | 46 | |||||
U.K. Newspaper Matters Indemnification [Member] | 21st Century Fox [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Other current assets | $ 52 | $ 52 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Contingency [Line Items] | ||||||
Provisional charges recorded | $ 174 | $ 174 | ||||
Income tax (expense) benefit | (235) | $ 32 | (289) | $ 33 | ||
Income (loss) before income tax (expense) benefit | 169 | (251) | 310 | (252) | ||
Income tax related to non-cash write-down of assets and investments | $ 121 | 121 | ||||
Gross income tax paid | 89 | $ 69 | ||||
Tax Cuts and Jobs Act of 2017 [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Deemed patriation tax charge | 34 | 34 | ||||
Deferred deferred tax charge due to re-measurement of U.S. deferred tax assets | $ (140) | $ (140) | ||||
Scenario, Forecast [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
U.S. statutory federal tax rate | 21.00% | 28.00% |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended |
Dec. 31, 2017CountryBrandDistributorSegment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | Segment | 5 |
Book Publishing [Member] | |
Segment Reporting Information [Line Items] | |
Number of countries | Country | 18 |
Book Publishing [Member] | Minimum [Member] | |
Segment Reporting Information [Line Items] | |
Number of branded publishing imprints | Brand | 120 |
Digital Real Estate Services [Member] | REA Group Inc [Member] | |
Segment Reporting Information [Line Items] | |
Company ownership percentage | 61.60% |
Digital Real Estate Services [Member] | Move Inc [Member] | |
Segment Reporting Information [Line Items] | |
Company ownership percentage | 80.00% |
Ownership percentage held by REA Group | 20.00% |
Cable Network Programming [Member] | |
Segment Reporting Information [Line Items] | |
Number of television channels distribution | Distributor | 8 |
Segment Information - Reconcili
Segment Information - Reconciliation of Revenue and Segment EBITDA from Segments to Consolidated (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,180 | $ 2,116 | $ 4,238 | $ 4,081 |
Depreciation and amortization | (100) | (120) | (197) | (240) |
Impairment and restructuring charges | (12) | (356) | (27) | (376) |
Equity losses of affiliates | (18) | (238) | (28) | (253) |
Interest, net | 1 | 15 | 7 | 22 |
Other, net | (31) | 123 | (23) | 140 |
Income (loss) before income tax (expense) benefit | 169 | (251) | 310 | (252) |
Income tax (expense) benefit | (235) | 32 | (289) | 33 |
Net income (loss) | (66) | (219) | 21 | (219) |
News and Information Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,298 | 1,303 | 2,539 | 2,525 |
Total Segment EBITDA | 140 | 142 | 213 | 188 |
Book Publishing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 469 | 466 | 870 | 855 |
Total Segment EBITDA | 80 | 75 | 130 | 123 |
Digital Real Estate Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 292 | 242 | 563 | 468 |
Total Segment EBITDA | 119 | 95 | 214 | 162 |
Cable Network Programming [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 120 | 104 | 265 | 232 |
Total Segment EBITDA | 33 | 51 | 60 | 65 |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1 | 1 | 1 | 1 |
Total Segment EBITDA | $ (43) | $ (38) | $ (39) | $ (83) |
Segment Information - Reconci48
Segment Information - Reconciliation of Assets from Segments to Consolidated (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Jun. 30, 2017 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Investments | $ 2,019 | $ 2,027 | |
Total assets | 14,359 | 14,552 | |
News and Information Services [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 6,065 | 6,142 | |
Book Publishing [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 1,907 | 1,845 | |
Digital Real Estate Services [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 2,166 | 2,307 | |
Cable Network Programming [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 1,216 | 1,194 | |
Other [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | [1] | $ 986 | $ 1,037 |
[1] | The Other segment primarily includes Cash and cash equivalents. |
Segment Information - Reconci49
Segment Information - Reconciliation of Goodwill and Intangible Assets from Segments to Consolidated (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Jun. 30, 2017 |
Segment Reporting Information [Line Items] | ||
Total goodwill and intangible assets, net | $ 6,198 | $ 6,119 |
News and Information Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total goodwill and intangible assets, net | 2,957 | 2,952 |
Book Publishing [Member] | ||
Segment Reporting Information [Line Items] | ||
Total goodwill and intangible assets, net | 837 | 835 |
Digital Real Estate Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total goodwill and intangible assets, net | 1,489 | 1,420 |
Cable Network Programming [Member] | ||
Segment Reporting Information [Line Items] | ||
Total goodwill and intangible assets, net | 915 | 912 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total goodwill and intangible assets, net | $ 0 | $ 0 |
Additional Financial Informat50
Additional Financial Information - Components of Receivables, Net (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Jun. 30, 2017 |
Receivables [Abstract] | ||
Receivables | $ 1,593 | $ 1,484 |
Allowance for sales returns | (174) | (166) |
Allowances for doubtful accounts | (40) | (42) |
Receivables, net | $ 1,379 | $ 1,276 |
Additional Financial Informat51
Additional Financial Information - Components of Other Current Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Jun. 30, 2017 | |
Assets, Current [Abstract] | |||
Inventory | [1] | $ 216 | $ 208 |
Amounts due from 21st Century Fox | 52 | 82 | |
Prepayments and other current assets | 215 | 233 | |
Total Other current assets | $ 483 | $ 523 | |
[1] | Inventory at December 31, 2017 and June 30, 2017 was primarily comprised of books, newsprint, printing ink and programming rights. |
Additional Financial Informat52
Additional Financial Information - Components of Other Non-Current Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Jun. 30, 2017 |
Assets, Noncurrent [Abstract] | ||
Royalty advances to authors | $ 301 | $ 298 |
Other | 143 | 144 |
Total Other non-current assets | $ 444 | $ 442 |
Additional Financial Informat53
Additional Financial Information - Components of Other Current Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Jun. 30, 2017 |
Liabilities, Current [Abstract] | ||
Current tax payable | $ 39 | $ 39 |
Royalties and commissions payable | 179 | 152 |
Current portion of long-term debt | 94 | 103 |
Other | 239 | 306 |
Total Other current liabilities | $ 551 | $ 600 |
Additional Financial Informat54
Additional Financial Information - Components of Other, Net (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Components of Other Income (Expense) [Line Items] | |||||
Write-down of available-for-salesecurities | [1] | $ (30) | $ (21) | $ (30) | $ (21) |
Gain on sale of other businesses | 0 | 11 | 0 | 11 | |
Gain on sale of equity method investments | 0 | 11 | 0 | 17 | |
Other, net | (1) | 2 | 7 | 13 | |
Total Other, net | (31) | 123 | (23) | 140 | |
REA Group [Member] | |||||
Components of Other Income (Expense) [Line Items] | |||||
Gain on sale of REA Group's European business | $ 0 | $ 120 | $ 0 | $ 120 | |
[1] | For the three and six months ended December 31, 2017 and 2016, the write-downs of available-for-sale securities were reclassified out of accumulated other comprehensive loss and included in Other, net in the Statement of Operations. |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2018 | Aug. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Subsequent Event [Line Items] | ||||||
Cash dividends declared per share of common stock | $ 0 | $ 0 | $ 0.10 | $ 0.10 | ||
Cash dividends per common share, date of dividend payable | Oct. 18, 2017 | |||||
Cash dividends per common share, date of record for dividend | Sep. 13, 2017 | |||||
Class A Common Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividends declared per share of common stock | $ 0.10 | |||||
Class B Common Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividends declared per share of common stock | $ 0.10 | |||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividends per common share, date of dividend payable | Apr. 18, 2018 | |||||
Cash dividends per common share, date of record for dividend | Mar. 14, 2018 | |||||
Subsequent Event [Member] | Class A Common Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividends declared per share of common stock | $ 0.10 | |||||
Subsequent Event [Member] | Class B Common Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividends declared per share of common stock | $ 0.10 |