Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2018 | May 04, 2018 | |
Document 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 | |
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 | 383,267,500 | |
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 | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues: | ||||
Advertising | $ 687 | $ 705 | $ 2,059 | $ 2,123 |
Circulation and subscription | 659 | 618 | 1,947 | 1,834 |
Consumer | 381 | 359 | 1,220 | 1,183 |
Real estate | 208 | 168 | 633 | 525 |
Other | 158 | 128 | 472 | 394 |
Total Revenues | 2,093 | 1,978 | 6,331 | 6,059 |
Operating expenses | (1,151) | (1,101) | (3,439) | (3,384) |
Selling, general and administrative | (760) | (662) | (2,132) | (2,005) |
Depreciation and amortization | (100) | (109) | (297) | (349) |
Impairment and restructuring charges | (246) | (33) | (273) | (409) |
Equity losses of affiliates | (974) | (23) | (1,002) | (276) |
Interest, net | 2 | 8 | 9 | 30 |
Other, net | 29 | (13) | 6 | 127 |
(Loss) income before income tax expense | (1,107) | 45 | (797) | (207) |
Income tax expense | (3) | (45) | (292) | (12) |
Net loss | (1,110) | 0 | (1,089) | (219) |
Less: Net income attributable to noncontrolling interests | (18) | (5) | (54) | (90) |
Net loss attributable to News Corporation stockholders | $ (1,128) | $ (5) | $ (1,143) | $ (309) |
Basic and diluted loss per share: | ||||
Net loss available to News Corporation stockholders per share | $ (1.94) | $ (0.01) | $ (1.96) | $ (0.53) |
Cash dividends declared per share of common stock | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.20 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net loss | $ (1,110) | $ 0 | $ (1,089) | $ (219) | |
Other comprehensive income (loss): | |||||
Foreign currency translation adjustments | 10 | 269 | 144 | (22) | |
Unrealized holding gains (losses) on securities | [1] | 0 | (3) | 5 | (22) |
Benefit plan adjustments | [2] | (9) | (2) | (14) | 29 |
Share of other comprehensive income (loss) from equity affiliates | [3] | 0 | (7) | 1 | 4 |
Other comprehensive income (loss) | 1 | 257 | 136 | (11) | |
Comprehensive (loss) income | (1,109) | 257 | (953) | (230) | |
Less: Net income attributable to noncontrolling interests | (18) | (5) | (54) | (90) | |
Less: Other comprehensive loss (income) attributable to noncontrolling interests | 2 | (14) | (1) | (7) | |
Comprehensive (loss) income attributable to News Corporation stockholders | $ (1,125) | $ 238 | $ (1,008) | $ (327) | |
[1] | Net of income tax expense of $1 million and nil for the three months ended March 31, 2018 and 2017, respectively, and income tax expense (benefit) of $3 million and ($8) million for the nine months ended March 31, 2018 and 2017, respectively. | ||||
[2] | (b) Net of income tax benefit of $2 million and $1 million for the three months ended March 31, 2018 and 2017, respectively, and income tax (benefit) expense of ($4) million and $7 million for the nine months ended March 31, 2018 and 2017, respectively. | ||||
[3] | Net of income tax benefit of nil and $3 million for the three months ended March 31, 2018 and 2017, respectively, and income tax expense of nil and $2 million for the nine months ended March 31, 2018 and 2017, respectively. |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized holding gains (losses) on securities, income tax expense (benefit) | $ 1 | $ 3 | $ (8) | |
Benefit plan adjustments, income tax (benefit) expense | $ 2 | $ 1 | $ 4 | 7 |
Share of other comprehensive (loss) income from equity affiliates, income tax expense | $ 3 | $ 2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2018 | Jun. 30, 2017 | |
Current assets: | |||
Cash and cash equivalents | $ 2,112 | $ 2,016 | |
Receivables, net | 1,328 | 1,276 | |
Other current assets | 546 | 523 | |
Total current assets | 3,986 | 3,815 | |
Non-current assets: | |||
Investments | 957 | 2,027 | |
Property, plant and equipment, net | 1,642 | 1,624 | |
Intangible assets, net | 2,226 | 2,281 | |
Goodwill | 3,724 | 3,838 | |
Deferred income tax assets | 370 | 525 | |
Other non-current assets | 467 | 442 | |
Total assets | 13,372 | 14,552 | |
Current liabilities: | |||
Accounts payable | 230 | 222 | |
Accrued expenses | 1,223 | 1,204 | |
Deferred revenue | 448 | 426 | |
Other current liabilities | 566 | 600 | |
Total current liabilities | 2,467 | 2,452 | |
Non-current liabilities: | |||
Borrowings | 184 | 276 | |
Retirement benefit obligations | 301 | 319 | |
Deferred income tax liabilities | 55 | 61 | |
Other non-current liabilities | 354 | 351 | |
Commitments and contingencies | |||
Equity | |||
Additional paid-in capital | 12,310 | 12,395 | |
Accumulated deficit | (1,792) | (648) | |
Accumulated other comprehensive loss | (829) | (964) | |
Total News Corporation stockholders' equity | 9,695 | 10,789 | |
Noncontrolling interests | 296 | 284 | |
Total equity | 9,991 | 11,073 | |
Total liabilities and equity | 13,372 | 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, 383,257,907 and 382,294,262 shares issued and outstanding, net of 27,368,413 treasury shares at par at March 31, 2018 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 March 31, 2018 and June 30, 2017, respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | 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 | 383,257,907 | 382,294,262 |
Common stock outstanding, net of treasury stock | 383,257,907 | 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 | 9 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities: | ||
Net loss | $ (1,089) | $ (219) |
Less: Income from discontinued operations, net of tax | 0 | 0 |
Loss from continuing operations | (1,089) | (219) |
Adjustments to reconcile loss from continuing operations to cash provided by operating activities: | ||
Depreciation and amortization | 297 | 349 |
Equity losses of affiliates | 1,002 | 276 |
Cash distributions received from affiliates | 2 | 1 |
Impairment charges | 225 | 321 |
Other, net | (6) | (127) |
Deferred income taxes and taxes payable | 182 | (76) |
Change in operating assets and liabilities, net of acquisitions: | ||
Receivables and other assets | (86) | (126) |
Inventories, net | (14) | (8) |
Accounts payable and other liabilities | (48) | 89 |
NAM Group settlement | 0 | (256) |
Net cash provided by operating activities from continuing operations | 465 | 224 |
Net cash used in operating activities from discontinued operations | 0 | (5) |
Net cash provided by operating activities | 465 | 219 |
Investing activities: | ||
Capital expenditures | (200) | (168) |
Changes in restricted cash for Wireless Group acquisition | 0 | 315 |
Acquisitions, net of cash acquired | (62) | (345) |
Investments in equity affiliates and other | (42) | (93) |
Proceeds from property, plant and equipment and other asset dispositions | 137 | 232 |
Other, net | 23 | 10 |
Net cash used in investing activities from continuing operations | (144) | (49) |
Net cash used in investing activities from discontinued operations | 0 | 0 |
Net cash used in investing activities | (144) | (49) |
Financing activities: | ||
Repayment of borrowings | (93) | (23) |
Dividends paid | (99) | (93) |
Other, net | (42) | (36) |
Net cash used in financing activities from continuing operations | (234) | (152) |
Net cash used in financing activities from discontinued operations | 0 | 0 |
Net cash used in financing activities | (234) | (152) |
Net increase in cash and cash equivalents | 87 | 18 |
Cash and cash equivalents, beginning of period | 2,016 | 1,832 |
Exchange movement on opening cash balance | 9 | 0 |
Cash and cash equivalents, end of period | $ 2,112 | $ 1,850 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Mar. 31, 2018 | |
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. 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 March 31, 2018 and 2017 relate to the three months ended April 1, 2018 and April 2, 2017, respectively. For convenience purposes, the Company continues to date its consolidated financial statements as of March 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, In March 2018, the FASB issued ASU 2018-05—Income 2018-05”). 2018-05 2018-05 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 continuing to evaluate the overall impact that ASU 2014-09 In January 2016, the FASB issued ASU 2016-01, 825-10): 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 | 9 Months Ended |
Mar. 31, 2018 | |
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 $49 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 | 9 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Impairment and Restructuring Charges | NOTE 3. IMPAIRMENT AND RESTRUCTURING CHARGES Fiscal 2018 During the three and nine months ended March 31, 2018, the Company recorded restructuring charges of $21 million and $48 million, respectively, of which $13 million and $38 million, respectively, related to the News and Information Services segment. The restructuring charges recorded in fiscal 2018 were primarily for employee termination benefits. During the three and nine months ended March 31, 2018, the Company recognized non-cash The Company recognized a $165 million non-cash 12.5%-14%), (1.9%)-0.9%) The Company recognized a $41 million non-cash Fiscal 2017 During the three and nine months ended March 31, 2017, the Company recorded restructuring charges of $21 million and $88 million, respectively, of which $19 million and $85 million, respectively, related to the News and Information Services segment. The restructuring charges recorded in fiscal 2017 were for employee termination benefits. During the nine months ended March 31, 2017, the Company recognized a non-cash Changes in restructuring program liabilities were as follows: For the three months ended March 31, 2018 2017 One time One time employee Facility employee Facility termination related termination related benefits costs Other costs Total benefits costs Other costs Total (in millions) Balance, beginning of period $ 22 $ 4 $ 10 $ 36 $ 41 $ 5 $ 6 $ 52 Additions 21 — — 21 21 — — 21 Payments (22 ) — — (22 ) (33 ) — — (33 ) Other 3 — — 3 — — — — Balance, end of period $ 24 $ 4 $ 10 $ 38 $ 29 $ 5 $ 6 $ 40 For the nine months ended March 31, 2018 2017 One time One time employee Facility employee Facility termination related termination related benefits costs Other costs Total benefits costs Other costs Total (in millions) Balance, beginning of period $ 33 $ 6 $ 10 $ 49 $ 33 $ 5 $ 6 $ 44 Additions 47 — 1 48 88 — — 88 Payments (60 ) (1 ) (1 ) (62 ) (91 ) — — (91 ) Other 4 (1 ) — 3 (1 ) — — (1 ) Balance, end of period $ 24 $ 4 $ 10 $ 38 $ 29 $ 5 $ 6 $ 40 As of March 31, 2018, restructuring liabilities of approximately $27 million were included in the Balance Sheet in Other current liabilities and $11 million were included in Other non-current |
Investments
Investments | 9 Months Ended |
Mar. 31, 2018 | |
Investments Schedule [Abstract] | |
Investments | NOTE 4. INVESTMENTS The Company’s investments were comprised of the following: Ownership Percentage As of As of as of March 31, March 31, June 30, 2018 2018 2017 (in millions) Equity method investments: Foxtel (a) 50% $ 631 $ 1,208 Other equity method investments (b) various 122 133 Loan receivable from Foxtel (a) N/A — 370 Available-for-sale (c) various 78 97 Cost method investments (d) various 126 219 Total Investments $ 957 $ 2,027 (a) During the three months ended March 31, 2018, the Company recognized a $957 million non-cash 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 certain investments in China as of March 31, 2018. During the three months ended March 31, 2018, the Company sold its investment in SEEKAsia for $122 million in cash and recognized a $32 million gain in Other, net. See Note 12— Additional Financial Information. The Company measures the fair market values of available-for-sale available-for-sale As of As of March 31, 2018 June 30, 2017 (in millions) Cost basis of available-for-sale securities $ 77 $ 99 Accumulated gross unrealized gain 1 — Accumulated gross unrealized loss — (2 ) Fair value of available-for-sale $ 78 $ 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 nine months ended 2018 2017 2018 2017 (in millions) (in millions) Foxtel (a) $ (970 ) $ (16 ) $ (974 ) $ (260 ) Other equity affiliates, net (b) (4 ) (7 ) (28 ) (16 ) Total Equity losses of affiliates $ (974 ) $ (23 ) $ (1,002 ) $ (276 ) (a) During the three and nine months ended March 31, 2018, the Company recognized a $957 million non-cash During the nine months ended March 31, 2017, the Company recognized a $227 million non-cash pay-TV In November 2012, the Company acquired CMH, a media investment company that operates in Australia. CMH owned a 25% interest in Foxtel through its 50% interest in FOX SPORTS Australia. The CMH acquisition was accounted for in accordance with ASC 805 “Business Combinations” which requires an acquirer to remeasure its previously held equity interest in an acquiree at its acquisition date fair value and recognize the resulting gain or loss in earnings. The carrying amount of the Company’s previously held equity interest in FOX SPORTS Australia, through which the Company held its indirect 25% interest in Foxtel, was revalued to fair value as of the acquisition date, resulting in a step-up non-cash In accordance with ASC 350, “Intangibles—Goodwill and Other”, the Company amortized $17 million and $49 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 nine months ended March 31, 2018, respectively, and $16 million and $53 million in the corresponding periods of fiscal 2017. Such amortization is reflected in Equity losses of affiliates in the Statements of Operations. (b) During the nine months ended March 31, 2018, 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 nine months ended 2018 2017 (in millions) Revenues $ 1,818 $ 1,811 Operating income (a) 155 263 Net income 64 40 (a) Includes Depreciation and amortization of $187 million and $155 million for the nine months ended March 31, 2018 and 2017, respectively. Operating income before depreciation and amortization was $342 million and $418 million for the nine months ended March 31, 2018 and 2017, respectively. |
Borrowings
Borrowings | 9 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings | NOTE 5. BORROWINGS During the nine months ended March 31, 2018, 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 the sub facility due December 2017. Remaining borrowings under the facility were A$360 million (approximately $275 million). |
Equity
Equity | 9 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Equity | NOTE 6. EQUITY The following table summarizes changes in equity: For the nine months ended March 31, 2018 2017 News News Corporation Noncontrolling Total Corporation Noncontrolling Total stockholders Interests Equity stockholders Interests Equity (in millions) Balance, beginning of period $ 10,789 $ 284 $ 11,073 $ 11,564 $ 218 $ 11,782 Net (loss) income (1,143 ) 54 (1,089 ) (309 ) 90 (219 ) Other comprehensive income (loss) 135 1 136 (18 ) 7 (11 ) Dividends (118 ) (40 ) (158 ) (118 ) (33 ) (151 ) Other 32 (3 ) 29 20 (4 ) 16 Balance, end of period $ 9,695 $ 296 $ 9,991 $ 11,139 $ 278 $ 11,417 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 nine months ended March 31, 2018. Through May 4, 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 May 4, 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. 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 was paid on April 18, 2018 to stockholders of record as of March 14, 2018. 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 nine months ended 2018 2017 Cash dividend paid per share $ 0.10 $ 0.10 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 7. FAIR VALUE MEASUREMENTS In accordance with ASC 820, fair value measurements are required to be disclosed using a three-tiered fair value hierarchy which distinguishes market participant assumptions into the following categories: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices included in Level 1. The Company could value assets and liabilities included in this level using dealer and broker quotations, certain pricing models, bid prices, quoted prices for similar assets and liabilities in active markets, or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. For the Company, this primarily includes the use of forecasted financial information and other valuation related assumptions such as discount rates and long term growth rates in the income approach as well as the market approach which utilizes certain market and transaction multiples. Recurring Fair Value Measurements Certain assets and liabilities are required to be remeasured to fair value at the end of each reporting period. The fair values of investments in available-for-sale The Company has liabilities recorded in its Balance Sheets for its mandatorily redeemable noncontrolling interests. These liabilities represent management’s best estimate of the amounts expected to be paid in accordance with the contractual terms of the underlying acquisition agreements. The fair values of these liabilities are based on the contractual payout formulas included in the acquisition agreements taking into account the expected performance of the business. Any remeasurements of the Company’s mandatorily redeemable noncontrolling interests are recorded through Interest, net in the Statements of Operations. As the fair value does not rely on observable market inputs, the Company classifies these liabilities as Level 3 in the fair value hierarchy. The following tables summarize those assets and liabilities measured at fair value on a recurring basis: As of March 31, As of June 30, 2018 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in millions) Assets: Available-for-sale (a) $ 78 $ — $ — $ 78 $ 97 $ — $ — $ 97 Total assets $ 78 $ — $ — $ 78 $ 97 $ — $ — $ 97 Liabilities: Mandatorily redeemable noncontrolling interests (b) $ — $ — $ 92 $ 92 $ — $ — $ 79 $ 79 Total liabilities $ — $ — $ 92 $ 92 $ — $ — $ 79 $ 79 (a) See Note 4 – Investments. (b) Primarily related to REA Group’s mandatorily redeemable noncontrolling interest associated with the acquisition of iProperty. The fair value is determined based on formulas specified in the acquisition agreement and REA Group management’s expectations of the business’ performance. The mandatorily redeemable noncontrolling interest was redeemed in April 2018 and the amount paid was based on the actual performance of the business against the targets stipulated in the acquisition agreement. There have been no transfers between levels of the fair value hierarchy during the periods presented. A rollforward of the Company’s mandatorily redeemable noncontrolling interest liabilities classified as Level 3 is as follows: For the nine months ended March 31, 2018 2017 (in millions) Balance - beginning of year $ 79 $ 82 Additions 12 — Payments — — Measurement adjustments — (8 ) Accretion 2 3 Foreign exchange movements (1 ) 1 Total liabilities $ 92 $ 78 Nonrecurring Fair Value Measurements In addition to assets and liabilities that are remeasured at fair value on a recurring basis, the Company has certain assets, primarily goodwill, intangible assets, equity method investments and property, plant and equipment, that are not required to be remeasured to fair value at the end of each reporting period. On an ongoing basis, the Company monitors whether events occur or circumstances change that would more likely than not reduce the fair values of these assets below their carrying amounts. If the Company determines that these assets are impaired, the Company would write down these assets to fair value. These nonrecurring fair value measurements are considered to be Level 3 in the fair value hierarchy. In the third quarter of fiscal 2018, the Company recognized a $957 million non-cash non-cash In the third quarter of fiscal 2018, the Company recognized non-cash In the third quarter of fiscal 2018, the Company recognized a $41 million non-cash In the second quarter of fiscal 2017, the Company recognized non-cash Other Fair Value Measurements As of March 31, 2018 and June 30, 2017, the carrying value of the REA Facility approximates fair value and is classified as Level 3 in the fair value hierarchy. |
Loss Per Share
Loss Per Share | 9 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Loss Per Share | NOTE 8. 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 nine months 2018 2017 2018 2017 (in millions, except per share amounts) Net loss $ (1,110 ) $ — $ (1,089 ) $ (219 ) Less: Net income attributable to noncontrolling interests (18 ) (5 ) (54 ) (90 ) Less: Redeemable preferred stock dividends (a) — — (1 ) (1 ) Net loss available to News Corporation stockholders $ (1,128 ) $ (5 ) $ (1,144 ) $ (310 ) Weighted-average number of shares of common stock outstanding - basic and diluted (b) 582.8 581.6 582.6 581.2 Net loss available to News Corporation stockholders per share - basic and diluted $ (1.94 ) $ (0.01 ) $ (1.96 ) $ (0.53 ) (a) In connection with the Separation, as defined in Note 9, 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 nine months ended March 31, 2018 and 2017 because their inclusion would have an antidilutive effect on the net loss per share. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 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 Company’s commitments as of March 31, 2018 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 $2 million for the three months ended March 31, 2018 and 2017, respectively, and ($38) million and $6 million for the nine months ended March 31, 2018 and 2017, respectively. As of March 31, 2018, 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 $59 million. The amount to be indemnified by 21st Century Fox of approximately $59 million was recorded as a receivable in Other current assets on the Balance Sheet as of March 31, 2018. The net benefit for the nine months ended March 31, 2018 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 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. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10. INCOME TAXES At the end of each interim period, the Company estimates the annual effective tax rate and applies that rate to its ordinary quarterly earnings. The tax expense or benefit related to significant, unusual or extraordinary items that will be separately reported or reported net of their related tax effect are individually computed and recognized in the interim period in which those items occur. In addition, the effects of changes in enacted tax laws or rates or tax status are recognized in the interim period in which the change occurs. For the three months ended March 31, 2018, the Company recorded a tax charge of $3 million on a pre-tax non-cash For the nine months ended March 31, 2018, the Company recorded a tax charge of $292 million on a pre-tax non-cash 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 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, low-taxed 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 re-measurement The changes included in the Tax Act are broad and complex. In March 2018, the FASB issued ASU 2018-05 2018-05 For the three months ended March 31, 2017, the Company recorded a tax charge of $45 million on pre-tax For the nine months ended March 31, 2017, the Company recorded a tax charge of $12 million on a pre-tax non-cash 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 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 $116 million and $89 million during the nine months ended March 31, 2018 and 2017 and received tax refunds of $6 million and $1 million, respectively. |
Segment Information
Segment Information | 9 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 11. 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 nine months ended March 31, March 31, 2018 2017 2018 2017 (in millions) Revenues: News and Information Services $ 1,286 $ 1,263 $ 3,825 $ 3,788 Book Publishing 398 374 1,268 1,229 Digital Real Estate Services 279 219 842 687 Cable Network Programming 129 122 394 354 Other 1 — 2 1 Total revenues $ 2,093 $ 1,978 $ 6,331 $ 6,059 Segment EBITDA: News and Information Services $ 85 $ 123 $ 298 $ 311 Book Publishing 43 37 173 160 Digital Real Estate Services 88 75 302 237 Cable Network Programming 16 34 76 99 Other (50 ) (54 ) (89 ) (137 ) Depreciation and amortization (100 ) (109 ) (297 ) (349 ) Impairment and restructuring charges (246 ) (33 ) (273 ) (409 ) Equity losses of affiliates (974 ) (23 ) (1,002 ) (276 ) Interest, net 2 8 9 30 Other, net 29 (13 ) 6 127 (Loss) income before income tax expense (1,107 ) 45 (797 ) (207 ) Income tax expense (3 ) (45 ) (292 ) (12 ) Net loss $ (1,110 ) $ — $ (1,089 ) $ (219 ) As of As of March 31, 2018 June 30, 2017 (in millions) Total assets: News and Information Services $ 6,286 $ 6,142 Book Publishing 1,853 1,845 Digital Real Estate Services 2,175 2,307 Cable Network Programming 1,054 1,194 Other (a) 1,047 1,037 Investments 957 2,027 Total assets $ 13,372 $ 14,552 (a) The Other segment primarily includes Cash and cash equivalents. As of As of March 31, 2018 June 30, 2017 (in millions) Goodwill and intangible assets, net: News and Information Services $ 2,801 $ 2,952 Book Publishing 835 835 Digital Real Estate Services 1,458 1,420 Cable Network Programming 856 912 Total goodwill and intangible assets, net $ 5,950 $ 6,119 |
Additional Financial Informatio
Additional Financial Information | 9 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Financial Information | NOTE 12. ADDITIONAL FINANCIAL INFORMATION Receivables, net Receivables are presented net of an allowance for 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 March 31, 2018 June 30, 2017 (in millions) Receivables $ 1,532 $ 1,484 Allowance for sales returns (165 ) (166 ) Allowances for doubtful accounts (39 ) (42 ) Receivables, net $ 1,328 $ 1,276 The Company’s receivables did not contain 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. Other Current Assets The following table sets forth the components of Other current assets: As of As of March 31, 2018 June 30, 2017 (in millions) Inventory (a) $ 224 $ 208 Amounts due from 21st Century Fox 59 82 Prepayments and other current assets 263 233 Total Other current assets $ 546 $ 523 (a) Inventory at March 31, 2018 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 March 31, 2018 June 30, 2017 (in millions) Royalty advances to authors $ 319 $ 298 Other 148 144 Total Other non-current $ 467 $ 442 Other Current Liabilities The following table sets forth the components of Other current liabilities: As of As of March 31, 2018 June 30, 2017 (in millions) Current tax payable $ 40 $ 39 Royalties and commissions payable 187 152 Current portion of long-term debt 92 103 Other 247 306 Total Other current liabilities $ 566 $ 600 Other, net The following table sets forth the components of Other, net: For the three months ended For the nine months ended March 31, March 31, 2018 2017 2018 2017 (in millions) Gain on sale of SEEKAsia (a) $ 32 $ — $ 32 $ — Gain on sale of REA Group’s European business — (13 ) — 107 Write-down of available-for-sale (b) (3 ) — (33 ) (21 ) Gain on sale of other businesses — — — 11 Gain on sale of equity method investments — — — 17 Other, net — — 7 13 Total Other, net $ 29 $ (13 ) $ 6 $ 127 (a) During the three months ended March 31, 2018, the Company sold its investment in SEEKAsia for $122 million in cash and recognized a $32 million gain in Other, net. (b) For the three and nine months ended March 31, 2018 and for the nine months ended March 31, 2017, the write-downs of available-for-sale |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 13. SUBSEQUENT EVENTS Foxtel and Fox Sports Australia Combination In March 2018, News Corp and Telstra entered into a definitive agreement to combine their respective 50% interests in Foxtel and News Corp’s 100% interest in FOX SPORTS Australia into a new company. Following completion of the transaction in April 2018, News Corp owns a 65% interest in the combined company, and Telstra owns the remaining 35%. The combination will allow Foxtel and FOX SPORTS Australia to leverage their media platforms and content to improve services for consumers and advertisers. The results of the combined business will be reported within the new Subscription Video Services segment and it will be considered a separate reporting unit for purposes of the Company’s annual goodwill impairment review. Foxtel’s outstanding debt of approximately $1.7 billion as of March 31, 2018 will be included in the Balance Sheets beginning in the fourth quarter of fiscal 2018. The Company is currently in the process of evaluating the purchase accounting implications, and as a result, disclosures required under ASC 805-10-50-2(h) pre-existing write-off Hometrack Australia Pty Ltd In May 2018, REA Group entered into an agreement to acquire Hometrack Australia Pty Ltd (“Hometrack Australia”) for A$130 million (approximately $100 million) in cash, which will be funded with a mix of cash on hand and debt of A$70 million (approximately $55 million). The acquisition is subject to customary closing conditions, including regulatory approval. Hometrack Australia is a residential property data company and will allow REA Group to deliver more property data and insights to its customers and consumers. Hometrack Australia will be a subsidiary of REA Group and its results will be included within the Digital Real Estate Services segment. |
Description of Business and B21
Description of Business and Basis of Presentation (Policies) | 9 Months Ended |
Mar. 31, 2018 | |
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. 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 March 31, 2018 and 2017 relate to the three months ended April 1, 2018 and April 2, 2017, respectively. For convenience purposes, the Company continues to date its consolidated financial statements as of March 31. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Adopted In 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, In March 2018, the FASB issued ASU 2018-05—Income 2018-05”). 2018-05 2018-05 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 continuing to evaluate the overall impact that ASU 2014-09 In January 2016, the FASB issued ASU 2016-01, 825-10): 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 22
Impairment and Restructuring Charges (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Changes in Restructuring Program Liabilities | Changes in restructuring program liabilities were as follows: For the three months ended March 31, 2018 2017 One time One time employee Facility employee Facility termination related termination related benefits costs Other costs Total benefits costs Other costs Total (in millions) Balance, beginning of period $ 22 $ 4 $ 10 $ 36 $ 41 $ 5 $ 6 $ 52 Additions 21 — — 21 21 — — 21 Payments (22 ) — — (22 ) (33 ) — — (33 ) Other 3 — — 3 — — — — Balance, end of period $ 24 $ 4 $ 10 $ 38 $ 29 $ 5 $ 6 $ 40 For the nine months ended March 31, 2018 2017 One time One time employee Facility employee Facility termination related termination related benefits costs Other costs Total benefits costs Other costs Total (in millions) Balance, beginning of period $ 33 $ 6 $ 10 $ 49 $ 33 $ 5 $ 6 $ 44 Additions 47 — 1 48 88 — — 88 Payments (60 ) (1 ) (1 ) (62 ) (91 ) — — (91 ) Other 4 (1 ) — 3 (1 ) — — (1 ) Balance, end of period $ 24 $ 4 $ 10 $ 38 $ 29 $ 5 $ 6 $ 40 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Investments Schedule [Abstract] | |
Schedule of Investments | The Company’s investments were comprised of the following: Ownership Percentage As of As of as of March 31, March 31, June 30, 2018 2018 2017 (in millions) Equity method investments: Foxtel (a) 50% $ 631 $ 1,208 Other equity method investments (b) various 122 133 Loan receivable from Foxtel (a) N/A — 370 Available-for-sale (c) various 78 97 Cost method investments (d) various 126 219 Total Investments $ 957 $ 2,027 (a) During the three months ended March 31, 2018, the Company recognized a $957 million non-cash 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 certain investments in China as of March 31, 2018. During the three months ended March 31, 2018, the Company sold its investment in SEEKAsia for $122 million in cash and recognized a $32 million gain in Other, net. See Note 12— Additional Financial Information. |
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 March 31, 2018 June 30, 2017 (in millions) Cost basis of available-for-sale securities $ 77 $ 99 Accumulated gross unrealized gain 1 — Accumulated gross unrealized loss — (2 ) Fair value of available-for-sale $ 78 $ 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 nine months ended 2018 2017 2018 2017 (in millions) (in millions) Foxtel (a) $ (970 ) $ (16 ) $ (974 ) $ (260 ) Other equity affiliates, net (b) (4 ) (7 ) (28 ) (16 ) Total Equity losses of affiliates $ (974 ) $ (23 ) $ (1,002 ) $ (276 ) (a) During the three and nine months ended March 31, 2018, the Company recognized a $957 million non-cash During the nine months ended March 31, 2017, the Company recognized a $227 million non-cash pay-TV In November 2012, the Company acquired CMH, a media investment company that operates in Australia. CMH owned a 25% interest in Foxtel through its 50% interest in FOX SPORTS Australia. The CMH acquisition was accounted for in accordance with ASC 805 “Business Combinations” which requires an acquirer to remeasure its previously held equity interest in an acquiree at its acquisition date fair value and recognize the resulting gain or loss in earnings. The carrying amount of the Company’s previously held equity interest in FOX SPORTS Australia, through which the Company held its indirect 25% interest in Foxtel, was revalued to fair value as of the acquisition date, resulting in a step-up non-cash In accordance with ASC 350, “Intangibles—Goodwill and Other”, the Company amortized $17 million and $49 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 nine months ended March 31, 2018, respectively, and $16 million and $53 million in the corresponding periods of fiscal 2017. Such amortization is reflected in Equity losses of affiliates in the Statements of Operations. (b) During the nine months ended March 31, 2018, 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 nine months ended 2018 2017 (in millions) Revenues $ 1,818 $ 1,811 Operating income (a) 155 263 Net income 64 40 (a) Includes Depreciation and amortization of $187 million and $155 million for the nine months ended March 31, 2018 and 2017, respectively. Operating income before depreciation and amortization was $342 million and $418 million for the nine months ended March 31, 2018 and 2017, respectively. |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Summary of Changes in Equity | The following table summarizes changes in equity: For the nine months ended March 31, 2018 2017 News News Corporation Noncontrolling Total Corporation Noncontrolling Total stockholders Interests Equity stockholders Interests Equity (in millions) Balance, beginning of period $ 10,789 $ 284 $ 11,073 $ 11,564 $ 218 $ 11,782 Net (loss) income (1,143 ) 54 (1,089 ) (309 ) 90 (219 ) Other comprehensive income (loss) 135 1 136 (18 ) 7 (11 ) Dividends (118 ) (40 ) (158 ) (118 ) (33 ) (151 ) Other 32 (3 ) 29 20 (4 ) 16 Balance, end of period $ 9,695 $ 296 $ 9,991 $ 11,139 $ 278 $ 11,417 |
Summary of Dividends Paid Per Share | For the nine months ended 2018 2017 Cash dividend paid per share $ 0.10 $ 0.10 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured At Fair Value on Recurring Basis | The following tables summarize those assets and liabilities measured at fair value on a recurring basis: As of March 31, As of June 30, 2018 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in millions) Assets: Available-for-sale (a) $ 78 $ — $ — $ 78 $ 97 $ — $ — $ 97 Total assets $ 78 $ — $ — $ 78 $ 97 $ — $ — $ 97 Liabilities: Mandatorily redeemable noncontrolling interests (b) $ — $ — $ 92 $ 92 $ — $ — $ 79 $ 79 Total liabilities $ — $ — $ 92 $ 92 $ — $ — $ 79 $ 79 (a) See Note 4 – Investments. (b) Primarily related to REA Group’s mandatorily redeemable noncontrolling interest associated with the acquisition of iProperty. The fair value is determined based on formulas specified in the acquisition agreement and REA Group management’s expectations of the business’ performance. The mandatorily redeemable noncontrolling interest was redeemed in April 2018 and the amount paid was based on the actual performance of the business against the targets stipulated in the acquisition agreement. |
Summary of Mandatorily Redeemable Noncontrolling Interest Liabilities Classified Level 3 | A rollforward of the Company’s mandatorily redeemable noncontrolling interest liabilities classified as Level 3 is as follows: For the nine months ended March 31, 2018 2017 (in millions) Balance - beginning of year $ 79 $ 82 Additions 12 — Payments — — Measurement adjustments — (8 ) Accretion 2 3 Foreign exchange movements (1 ) 1 Total liabilities $ 92 $ 78 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
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 nine months 2018 2017 2018 2017 (in millions, except per share amounts) Net loss $ (1,110 ) $ — $ (1,089 ) $ (219 ) Less: Net income attributable to noncontrolling interests (18 ) (5 ) (54 ) (90 ) Less: Redeemable preferred stock dividends (a) — — (1 ) (1 ) Net loss available to News Corporation stockholders $ (1,128 ) $ (5 ) $ (1,144 ) $ (310 ) Weighted-average number of shares of common stock outstanding - basic and diluted (b) 582.8 581.6 582.6 581.2 Net loss available to News Corporation stockholders per share - basic and diluted $ (1.94 ) $ (0.01 ) $ (1.96 ) $ (0.53 ) (a) In connection with the Separation, as defined in Note 9, 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 nine months ended March 31, 2018 and 2017 because their inclusion would have an antidilutive effect on the net loss per share. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
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 nine months ended March 31, March 31, 2018 2017 2018 2017 (in millions) Revenues: News and Information Services $ 1,286 $ 1,263 $ 3,825 $ 3,788 Book Publishing 398 374 1,268 1,229 Digital Real Estate Services 279 219 842 687 Cable Network Programming 129 122 394 354 Other 1 — 2 1 Total revenues $ 2,093 $ 1,978 $ 6,331 $ 6,059 Segment EBITDA: News and Information Services $ 85 $ 123 $ 298 $ 311 Book Publishing 43 37 173 160 Digital Real Estate Services 88 75 302 237 Cable Network Programming 16 34 76 99 Other (50 ) (54 ) (89 ) (137 ) Depreciation and amortization (100 ) (109 ) (297 ) (349 ) Impairment and restructuring charges (246 ) (33 ) (273 ) (409 ) Equity losses of affiliates (974 ) (23 ) (1,002 ) (276 ) Interest, net 2 8 9 30 Other, net 29 (13 ) 6 127 (Loss) income before income tax expense (1,107 ) 45 (797 ) (207 ) Income tax expense (3 ) (45 ) (292 ) (12 ) Net loss $ (1,110 ) $ — $ (1,089 ) $ (219 ) |
Reconciliation of Assets from Segments to Consolidated | As of As of March 31, 2018 June 30, 2017 (in millions) Total assets: News and Information Services $ 6,286 $ 6,142 Book Publishing 1,853 1,845 Digital Real Estate Services 2,175 2,307 Cable Network Programming 1,054 1,194 Other (a) 1,047 1,037 Investments 957 2,027 Total assets $ 13,372 $ 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 March 31, 2018 June 30, 2017 (in millions) Goodwill and intangible assets, net: News and Information Services $ 2,801 $ 2,952 Book Publishing 835 835 Digital Real Estate Services 1,458 1,420 Cable Network Programming 856 912 Total goodwill and intangible assets, net $ 5,950 $ 6,119 |
Additional Financial Informat28
Additional Financial Information (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Receivables, Net | Receivables, net consist of: As of As of March 31, 2018 June 30, 2017 (in millions) Receivables $ 1,532 $ 1,484 Allowance for sales returns (165 ) (166 ) Allowances for doubtful accounts (39 ) (42 ) Receivables, net $ 1,328 $ 1,276 |
Components of Other Current Assets | The following table sets forth the components of Other current assets: As of As of March 31, 2018 June 30, 2017 (in millions) Inventory (a) $ 224 $ 208 Amounts due from 21st Century Fox 59 82 Prepayments and other current assets 263 233 Total Other current assets $ 546 $ 523 (a) Inventory at March 31, 2018 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 March 31, 2018 June 30, 2017 (in millions) Royalty advances to authors $ 319 $ 298 Other 148 144 Total Other non-current $ 467 $ 442 |
Components of Other Current Liabilities | The following table sets forth the components of Other current liabilities: As of As of March 31, 2018 June 30, 2017 (in millions) Current tax payable $ 40 $ 39 Royalties and commissions payable 187 152 Current portion of long-term debt 92 103 Other 247 306 Total Other current liabilities $ 566 $ 600 |
Components of Other, Net | The following table sets forth the components of Other, net: For the three months ended For the nine months ended March 31, March 31, 2018 2017 2018 2017 (in millions) Gain on sale of SEEKAsia (a) $ 32 $ — $ 32 $ — Gain on sale of REA Group’s European business — (13 ) — 107 Write-down of available-for-sale (b) (3 ) — (33 ) (21 ) Gain on sale of other businesses — — — 11 Gain on sale of equity method investments — — — 17 Other, net — — 7 13 Total Other, net $ 29 $ (13 ) $ 6 $ 127 (a) During the three months ended March 31, 2018, the Company sold its investment in SEEKAsia for $122 million in cash and recognized a $32 million gain in Other, net. (b) For the three and nine months ended March 31, 2018 and for the nine months ended March 31, 2017, the write-downs of available-for-sale |
Description of Business and B29
Description of Business and Basis of Presentation - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Available-for-sale securities | $ 78 | ||
Available-for-sale securities, net unrealized gains | 1 | ||
Cost method investments | [1] | $ 126 | $ 219 |
[1] | Cost method investments are primarily comprised of certain investments in China as of March 31, 2018. During the three months ended March 31, 2018, the Company sold its investment in SEEKAsia for $122 million in cash and recognized a $32 million gain in Other, net. See Note 12- Additional Financial Information. |
Acquisitions, Disposals and O30
Acquisitions, Disposals and Other Transactions - Additional Information (Detail) $ in Millions, $ in Millions | Jul. 31, 2017USD ($) | Jul. 31, 2017AUD ($) | Jul. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2017USD ($) |
Schedule Of Business Acquisitions And Divestitures [Line Items] | ||||||
Goodwill | $ 3,724 | $ 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 | $ 70 | ||||
Non-controlling ownership percentage | 19.70% | 19.70% | ||||
Option to sell minority interest, period | 3 years | |||||
Mandatorily redeemable period after closing, if option is not exercised | 4 years | |||||
Amount expected to be paid for remaining interest | $ 12 | |||||
Goodwill | $ 49 | $ 49 | ||||
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 31
Impairment and Restructuring Charges - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 21 | $ 21 | $ 48 | $ 88 |
Non-cash impairment charge | 225 | 225 | 321 | |
Australian Newspapers [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Non-cash impairment charge | $ 310 | |||
Discount rates | 11.50% | |||
News America Marketing [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Non-cash impairment of goodwill and indefinite-lived intangible assets | 165 | $ 165 | ||
Royalty rates | 2.50% | |||
Non-cash impairment of goodwill | 120 | $ 120 | ||
FOX SPORTS Australia Reporting Unit [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Non-cash impairment of goodwill and indefinite-lived intangible assets | $ 41 | 41 | ||
Discount rates | 9.50% | |||
Long-term growth rates | 2.00% | |||
Non-cash impairment of goodwill | $ 41 | $ 41 | ||
Trade Names [Member] | Australian Newspapers [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Non-cash impairment charge | $ 18 | |||
Presses and Print Related Equipment [Member] | Australian Newspapers [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Non-cash impairment charge | 149 | |||
Capitalized Software [Member] | Australian Newspapers [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Non-cash impairment charge | 66 | |||
Facilities [Member] | Australian Newspapers [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Non-cash impairment charge | 77 | |||
Minimum [Member] | News America Marketing [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Discount rates | 12.50% | |||
Long-term growth rates | (1.90%) | |||
Maximum [Member] | News America Marketing [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Discount rates | 14.00% | |||
Long-term growth rates | 0.90% | |||
Other Current Liabilities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring liabilities, current | 27 | $ 27 | ||
Other Non-Current Liabilities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring liabilities, non-current | 11 | 11 | ||
News and Information Services [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 13 | $ 19 | $ 38 | $ 85 |
Impairment and Restructuring 32
Impairment and Restructuring Charges - Schedule of Changes in Restructuring Program Liabilities (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Liabilities, Beginning Balance | $ 36 | $ 52 | $ 49 | $ 44 |
Additions | 21 | 21 | 48 | 88 |
Payments | (22) | (33) | (62) | (91) |
Other | 3 | 0 | 3 | (1) |
Restructuring Liabilities, Ending Balance | 38 | 40 | 38 | 40 |
One Time Employee Termination Benefits [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Liabilities, Beginning Balance | 22 | 41 | 33 | 33 |
Additions | 21 | 21 | 47 | 88 |
Payments | (22) | (33) | (60) | (91) |
Other | 3 | 0 | 4 | (1) |
Restructuring Liabilities, Ending Balance | 24 | 29 | 24 | 29 |
Facility Related Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Liabilities, Beginning Balance | 4 | 5 | 6 | 5 |
Additions | 0 | 0 | 0 | 0 |
Payments | 0 | 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 | 0 | 0 | 1 | 0 |
Payments | 0 | 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) $ in Millions, $ in Millions | Mar. 31, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2017AUD ($) | |||
Schedule of Investments [Line Items] | ||||||
Available-for-sale securities | [1],[2] | $ 78 | $ 97 | |||
Cost method investments | [3] | 126 | 219 | |||
Total Investments | 957 | 2,027 | ||||
Foxtel [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Equity method investment carrying value | [4] | 631 | 1,208 | |||
Loan receivable from Foxtel | $ 0 | [4] | 370 | [4] | $ 481 | |
Equity method investment, ownership percentage | [4] | 50.00% | ||||
Other Equity Method Investments [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Equity method investment carrying value | [5] | $ 122 | $ 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] | See Note 4 - Investments. | |||||
[3] | Cost method investments are primarily comprised of certain investments in China as of March 31, 2018. During the three months ended March 31, 2018, the Company sold its investment in SEEKAsia for $122 million in cash and recognized a $32 million gain in Other, net. See Note 12- Additional Financial Information. | |||||
[4] | During the three months ended March 31, 2018, the Company recognized a $957 million non-cash write-down of the carrying value of its investment in Foxtel. In the third quarter of fiscal 2018, as part of the long range planning process and in preparation for the Transaction, the Company assessed the long-term prospects for Foxtel, on both a stand-alone and combined basis. As a result of lower-than-expected revenues from certain new products and broadcast subscribers at Foxtel, the Company revised its outlook for Foxtel, which resulted in a reduction in expected future cash flows. Based on the revised projections, the Company concluded that the fair value of its investment in Foxtel declined below its carrying value. The assumptions utilized in the income approach valuation method were a discount rate of 10.25% and a long-term growth rate of 2.0%. | |||||
[5] | Other equity method investments are primarily comprised of Elara Technologies Pte. Ltd., which operates PropTiger.com, Makaan.com and Housing.com. |
Investments - Schedule of Inv34
Investments - Schedule of Investments (Parenthetical) (Detail) $ in Millions, $ in Millions | Sep. 28, 2017USD ($) | Sep. 28, 2017AUD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Jun. 30, 2017USD ($) | [1] | Jun. 30, 2017AUD ($) | |||
Foxtel [Member] | |||||||||||||
Schedule of Investments [Line Items] | |||||||||||||
Write down of investment | $ 957 | $ 227 | $ 957 | $ 227 | |||||||||
Discount rates | 10.25% | 9.00% | |||||||||||
Long-term growth rates | 2.00% | 2.50% | |||||||||||
Loan receivable from Foxtel | $ 0 | [1] | 0 | [1] | $ 370 | $ 481 | |||||||
Equity method investment additional capital contribution | $ 388 | $ 494 | |||||||||||
SEEK Asia Limited [Member] | |||||||||||||
Schedule of Investments [Line Items] | |||||||||||||
Proceeds from sale of investment | 122 | ||||||||||||
Gain on sale of investment | [2] | $ 32 | $ 0 | $ 32 | $ 0 | ||||||||
[1] | During the three months ended March 31, 2018, the Company recognized a $957 million non-cash write-down of the carrying value of its investment in Foxtel. In the third quarter of fiscal 2018, as part of the long range planning process and in preparation for the Transaction, the Company assessed the long-term prospects for Foxtel, on both a stand-alone and combined basis. As a result of lower-than-expected revenues from certain new products and broadcast subscribers at Foxtel, the Company revised its outlook for Foxtel, which resulted in a reduction in expected future cash flows. Based on the revised projections, the Company concluded that the fair value of its investment in Foxtel declined below its carrying value. The assumptions utilized in the income approach valuation method were a discount rate of 10.25% and a long-term growth rate of 2.0%. | ||||||||||||
[2] | During the three months ended March 31, 2018, the Company sold its investment in SEEKAsia for $122 million in cash and recognized a $32 million gain in Other, net. |
Investments - Schedule of Avail
Investments - Schedule of Available-for-Sale Securities (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Jun. 30, 2017 | |
Investments Schedule [Abstract] | |||
Cost basis of available-for-sale securities | $ 77 | $ 99 | |
Accumulated gross unrealized gain | 1 | 0 | |
Accumulated gross unrealized loss | 0 | (2) | |
Fair value of available-for-sale securities | [1],[2] | 78 | 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. | ||
[2] | See Note 4 - Investments. |
Investments - Schedule of Equit
Investments - Schedule of Equity Losses of Affiliates (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Schedule of Equity Method Investments [Line Items] | |||||
Total Equity (losses) earnings of affiliates | $ (974) | $ (23) | $ (1,002) | $ (276) | |
Foxtel [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total Equity (losses) earnings of affiliates | [1] | (970) | (16) | (974) | (260) |
Other Equity Affiliates, Net [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total Equity (losses) earnings of affiliates | [2] | $ (4) | $ (7) | $ (28) | $ (16) |
[1] | During the three and nine months ended March 31, 2018, the Company recognized a $957 million non-cash write-down of the carrying value of its investment in Foxtel. The write-down is reflected in Equity losses of affiliates in the Statements of Operations for the three and nine months ended March 31, 2018. Refer to the discussion above for further details. | ||||
[2] | During the nine months ended March 31, 2018, the Company recognized $13 million in non-cash write-downs of certain equity method investments' carrying values. The write-downs are reflected in Equity losses of affiliates in the Statements of Operations for the nine months ended March 31, 2018. |
Investments - Schedule of Equ37
Investments - Schedule of Equity Losses of Affiliates (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2013 | Nov. 30, 2012 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | |
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] | ||||||||
Write down of investment | $ 957 | $ 227 | $ 957 | $ 227 | ||||
Discount rates | 10.25% | 9.00% | ||||||
Long-term growth rates | 2.00% | 2.50% | ||||||
Fair value control premium | 10.00% | |||||||
Equity method investment ownership percentage | [1] | 50.00% | 50.00% | |||||
Foxtel [Member] | Equity Losses of Affiliates [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Amortization of excess basis allocated to finite-lived intangible assets | $ 17 | $ 16 | $ 49 | $ 53 | ||||
Foxtel [Member] | Consolidated Media Holdings Ltd. [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Business acquisition date | Nov. 30, 2012 | |||||||
Equity method investment ownership percentage | 25.00% | |||||||
Fox Sports [Member] | Consolidated Media Holdings Ltd. [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity method investment ownership percentage | 50.00% | |||||||
Business acquisition recognized gain resulting from remeasurement of previously held equity interest | $ 1,300 | |||||||
Ownership percentage | 25.00% | |||||||
Fox Sports Foxtel CMH [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Business acquisition recognized gain resulting from remeasurement of previously held equity interest | $ 900 | |||||||
[1] | During the three months ended March 31, 2018, the Company recognized a $957 million non-cash write-down of the carrying value of its investment in Foxtel. In the third quarter of fiscal 2018, as part of the long range planning process and in preparation for the Transaction, the Company assessed the long-term prospects for Foxtel, on both a stand-alone and combined basis. As a result of lower-than-expected revenues from certain new products and broadcast subscribers at Foxtel, the Company revised its outlook for Foxtel, which resulted in a reduction in expected future cash flows. Based on the revised projections, the Company concluded that the fair value of its investment in Foxtel declined below its carrying value. The assumptions utilized in the income approach valuation method were a discount rate of 10.25% and a long-term growth rate of 2.0%. |
Investments - Schedule of Summa
Investments - Schedule of Summarized Financial Information (Detail) - Foxtel [Member] - USD ($) $ in Millions | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Schedule of Equity Method Investments [Line Items] | |||
Revenues | $ 1,818 | $ 1,811 | |
Operating income | [1] | 155 | 263 |
Net income | $ 64 | $ 40 | |
[1] | Includes Depreciation and amortization of $187 million and $155 million for the nine months ended March 31, 2018 and 2017, respectively. Operating income before depreciation and amortization was $342 million and $418 million for the nine months ended March 31, 2018 and 2017, respectively. |
Investments - Schedule of Sum39
Investments - Schedule of Summarized Financial Information (Parenthetical) (Detail) - Foxtel [Member] - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||
Depreciation and amortization | $ 187 | $ 155 |
Operating income before depreciation and amortization | $ 342 | $ 418 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - 9 months ended Mar. 31, 2018 - REA Group [Member] $ in Millions, $ in Millions | USD ($) | AUD ($) | AUD ($) |
Debt Instrument [Line Items] | |||
Remaining borrowings facility | $ 275 | $ 360 | |
Facility Due December 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Repayment of credit facility | $ 93 | $ 120 | |
Credit Agreement maturity | 2017-12 | 2017-12 | |
iProperty Group Limited [Member] | |||
Debt Instrument [Line Items] | |||
Maximum amount of credit facility | $ 480 |
Equity - Summary of Changes in
Equity - Summary of Changes in Equity (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Equity [Abstract] | ||||
Balance, beginning of period | $ 10,789 | $ 11,564 | ||
Net (loss) income | $ (1,128) | $ (5) | (1,143) | (309) |
Other comprehensive income (loss) | 135 | (18) | ||
Dividends | (118) | (118) | ||
Other | 32 | 20 | ||
Balance, end of period | 9,695 | 11,139 | 9,695 | 11,139 |
Balance, beginning of period | 284 | 218 | ||
Net (loss) income | 18 | 5 | 54 | 90 |
Other comprehensive income (loss) | 1 | 7 | ||
Dividends | (40) | (33) | ||
Other | (3) | (4) | ||
Balance, end of period | 296 | 278 | 296 | 278 |
Balance, beginning of period | 11,073 | 11,782 | ||
Net (loss) income | (1,110) | 0 | (1,089) | (219) |
Other comprehensive income (loss) | 1 | 257 | 136 | (11) |
Dividends | (158) | (151) | ||
Other | 29 | 16 | ||
Balance, end of period | $ 9,991 | $ 11,417 | $ 9,991 | $ 11,417 |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Feb. 28, 2018 | Aug. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | May 04, 2018 | May 31, 2013 | |
Class of Stock [Line Items] | ||||||||
Cash dividends declared per share of common stock | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.20 | ||||
Cash dividends per common share, date of dividend payable | Apr. 18, 2018 | Oct. 18, 2017 | ||||||
Cash dividends per common share, date of record for dividend | Mar. 14, 2018 | Sep. 13, 2017 | ||||||
Subsequent Event [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Remaining authorized amount under stock repurchase program | $ 429,000,000 | |||||||
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 | $ 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 | |||||||
Class B Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Cash dividends declared per share of common stock | $ 0.10 | $ 0.10 |
Equity - Summary of Dividends P
Equity - Summary of Dividends Paid Per Share (Detail) - $ / shares | 9 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
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 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets and Liabilities Measured At Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Jun. 30, 2017 | |
Assets: | |||
Available-for-sale securities | [1],[2] | $ 78 | $ 97 |
Total assets | 78 | 97 | |
Liabilities: | |||
Mandatorily redeemable noncontrolling interest | [3] | 92 | 79 |
Total liabilities | 92 | 79 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Assets: | |||
Available-for-sale securities | [2] | 78 | 97 |
Total assets | 78 | 97 | |
Liabilities: | |||
Mandatorily redeemable noncontrolling interest | [3] | 0 | 0 |
Total liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Assets: | |||
Available-for-sale securities | [2] | 0 | 0 |
Total assets | 0 | 0 | |
Liabilities: | |||
Mandatorily redeemable noncontrolling interest | [3] | 0 | 0 |
Total liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Assets: | |||
Available-for-sale securities | [2] | 0 | 0 |
Total assets | 0 | 0 | |
Liabilities: | |||
Mandatorily redeemable noncontrolling interest | [3] | 92 | 79 |
Total liabilities | $ 92 | $ 79 | |
[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] | See Note 4 - Investments. | ||
[3] | Primarily related to REA Group's mandatorily redeemable noncontrolling interest associated with the acquisition of iProperty. The fair value is determined based on formulas specified in the acquisition agreement and REA Group management's expectations of the business' performance. The mandatorily redeemable noncontrolling interest was redeemed in April 2018 and the amount paid was based on the actual performance of the business against the targets stipulated in the acquisition agreement. |
Fair Value Measurements - Sum45
Fair Value Measurements - Summary of Mandatorily Redeemable Noncontrolling Interest Liabilities Classified Level 3 (Detail) - Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value [Member] - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance - beginning of year | $ 79 | $ 82 |
Additions | 12 | 0 |
Payments | 0 | 0 |
Measurement adjustments | 0 | (8) |
Accretion | 2 | 3 |
Foreign exchange movements | (1) | 1 |
Balance - ending of year | $ 92 | $ 78 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | |
Foxtel [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Write down of investment | $ 957 | $ 227 | $ 957 | $ 227 |
Investments carrying value prior to recognizing non-cash impairment charges | 1,588 | 1,432 | 1,588 | |
Investments carrying value subsequent to recognizing non-cash impairment charges | 631 | 1,205 | 631 | |
News America Marketing [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Non-cash impairment charge of goodwill | 120 | 120 | ||
Non-cash impairment charge for indefinite-lived intangible assets | 45 | 45 | ||
Goodwill carrying value prior to recognizing non-cash impairment charges | 301 | 301 | ||
Goodwill carrying value subsequent to recognizing non-cash impairment charges | 181 | 181 | ||
Carrying value of intangible assets prior to recognizing non-cash impairment charges | 391 | 391 | ||
Carrying value of intangible assets subsequent to recognizing non-cash impairment charges | 346 | 346 | ||
Non-cash impairment of goodwill and indefinite-lived intangible assets | 165 | 165 | ||
FOX SPORTS Australia Reporting Unit [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Non-cash impairment charge of goodwill | 41 | 41 | ||
Goodwill carrying value prior to recognizing non-cash impairment charges | 490 | 490 | ||
Goodwill carrying value subsequent to recognizing non-cash impairment charges | 449 | 449 | ||
Non-cash impairment of goodwill and indefinite-lived intangible assets | $ 41 | $ 41 | ||
News Corp Australia [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed-asset impairment charges | 310 | |||
Fixed assets carrying value prior to recognizing non-cash impairment charges | 667 | |||
Fixed assets carrying value subsequent to recognizing non-cash impairment charges | 375 | |||
Fixed assets carrying value of intangible assets prior to recognizing non-cash impairment charges | 48 | |||
Fixed assets carrying value of intangible assets subsequent to recognizing non-cash impairment charges | $ 30 |
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 | 9 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Earnings Per Share [Abstract] | |||||
Net loss | $ (1,110) | $ 0 | $ (1,089) | $ (219) | |
Less: Net income attributable to noncontrolling interests | (18) | (5) | (54) | (90) | |
Less: Redeemable preferred stock dividends | [1] | 0 | 0 | (1) | (1) |
Net loss available to News Corporation stockholders | $ (1,128) | $ (5) | $ (1,144) | $ (310) | |
Weighted-average number of shares of common stock outstanding - basic and diluted(b) | [2] | 582.8 | 581.6 | 582.6 | 581.2 |
Net loss available to News Corporation stockholders per share - basic and diluted | $ (1.94) | $ (0.01) | $ (1.96) | $ (0.53) | |
[1] | In connection with the Separation, as defined in Note 9, Twenty-First Century Fox, Inc. ("21st Century Fox") sold 4,000 shares of cumulative redeemable preferred stock with a par value of $5,000 per share of a newly formed U.S. subsidiary of the Company. The preferred stock pays dividends at a rate of 9.5% per annum, payable quarterly. The preferred stock is callable by the Company at any time after the fifth year and is puttable at the option of the holder after 10 years. | ||||
[2] | The dilutive impact of the Company's PSUs, RSUs and stock options has been excluded from the calculation of diluted loss per share for the three and nine months ended March 31, 2018 and 2017 because their inclusion would have an antidilutive effect on the net loss per share. |
Loss Per Share - Computation 48
Loss Per Share - Computation of Basic and Diluted Loss Per Share (Parenthetical) (Detail) - Redeemable Preferred Stock [Member] | 9 Months Ended |
Mar. 31, 2018$ / 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 | 9 Months Ended | ||||
Feb. 29, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Sep. 30, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Jun. 30, 2017 | |
Loss Contingencies [Line Items] | |||||||
Litigation amount payment to plaintiffs | $ 250 | ||||||
Litigation settlement | $ 30 | ||||||
Other current assets | $ 546 | $ 546 | $ 523 | ||||
U.K. Newspaper Matters [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Selling, general and administrative expenses (benefit), net | 2 | $ 2 | (38) | $ 6 | |||
Litigation liability accrued | 59 | 59 | |||||
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 | $ 59 | $ 59 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Contingency [Line Items] | ||||||||
Income tax (expense) benefit | $ 3 | $ 45 | $ 292 | $ 12 | ||||
Income (loss) before income tax (expense) benefit | $ (1,107) | $ 45 | (797) | (207) | ||||
Provisional charges recorded | $ 174 | 174 | ||||||
Income tax related to non-cash write-down of assets and investments | 121 | |||||||
Gross income tax paid | 116 | 89 | ||||||
Income tax refunds | $ 6 | $ 1 | ||||||
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) | 9 Months Ended |
Mar. 31, 2018CountryBrandDistributorSegment | |
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% |
Digital Real Estate Services [Member] | Move Inc [Member] | REA Group Inc [Member] | |
Segment Reporting Information [Line Items] | |
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 | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,093 | $ 1,978 | $ 6,331 | $ 6,059 |
Depreciation and amortization | (100) | (109) | (297) | (349) |
Impairment and restructuring charges | (246) | (33) | (273) | (409) |
Equity losses of affiliates | (974) | (23) | (1,002) | (276) |
Interest, net | 2 | 8 | 9 | 30 |
Other, net | 29 | (13) | 6 | 127 |
(Loss) income before income tax expense | (1,107) | 45 | (797) | (207) |
Income tax expense | (3) | (45) | (292) | (12) |
Net loss | (1,110) | (1,089) | (219) | |
News and Information Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,286 | 1,263 | 3,825 | 3,788 |
Total Segment EBITDA | 85 | 123 | 298 | 311 |
Book Publishing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 398 | 374 | 1,268 | 1,229 |
Total Segment EBITDA | 43 | 37 | 173 | 160 |
Digital Real Estate Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 279 | 219 | 842 | 687 |
Total Segment EBITDA | 88 | 75 | 302 | 237 |
Cable Network Programming [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 129 | 122 | 394 | 354 |
Total Segment EBITDA | 16 | 34 | 76 | 99 |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1 | 2 | 1 | |
Total Segment EBITDA | $ (50) | $ (54) | $ (89) | $ (137) |
Segment Information - Reconci53
Segment Information - Reconciliation of Assets from Segments to Consolidated (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Jun. 30, 2017 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Investments | $ 957 | $ 2,027 | |
Total assets | 13,372 | 14,552 | |
News and Information Services [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 6,286 | 6,142 | |
Book Publishing [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 1,853 | 1,845 | |
Digital Real Estate Services [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 2,175 | 2,307 | |
Cable Network Programming [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 1,054 | 1,194 | |
Other [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | [1] | $ 1,047 | $ 1,037 |
[1] | The Other segment primarily includes Cash and cash equivalents. |
Segment Information - Reconci54
Segment Information - Reconciliation of Goodwill and Intangible Assets from Segments to Consolidated (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Jun. 30, 2017 |
Segment Reporting Information [Line Items] | ||
Total goodwill and intangible assets, net | $ 5,950 | $ 6,119 |
News and Information Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total goodwill and intangible assets, net | 2,801 | 2,952 |
Book Publishing [Member] | ||
Segment Reporting Information [Line Items] | ||
Total goodwill and intangible assets, net | 835 | 835 |
Digital Real Estate Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total goodwill and intangible assets, net | 1,458 | 1,420 |
Cable Network Programming [Member] | ||
Segment Reporting Information [Line Items] | ||
Total goodwill and intangible assets, net | $ 856 | $ 912 |
Additional Financial Informat55
Additional Financial Information - Components of Receivables, Net (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Jun. 30, 2017 |
Receivables [Abstract] | ||
Receivables | $ 1,532 | $ 1,484 |
Allowance for sales returns | (165) | (166) |
Allowances for doubtful accounts | (39) | (42) |
Receivables, net | $ 1,328 | $ 1,276 |
Additional Financial Informat56
Additional Financial Information - Components of Other Current Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Jun. 30, 2017 | |
Assets, Current [Abstract] | |||
Inventory | [1] | $ 224 | $ 208 |
Amounts due from 21st Century Fox | 59 | 82 | |
Prepayments and other current assets | 263 | 233 | |
Total Other current assets | $ 546 | $ 523 | |
[1] | Inventory at March 31, 2018 and June 30, 2017 was primarily comprised of books, newsprint, printing ink and programming rights. |
Additional Financial Informat57
Additional Financial Information - Components of Other Non-Current Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Jun. 30, 2017 |
Assets, Noncurrent [Abstract] | ||
Royalty advances to authors | $ 319 | $ 298 |
Other | 148 | 144 |
Total Other non-current assets | $ 467 | $ 442 |
Additional Financial Informat58
Additional Financial Information - Components of Other Current Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Jun. 30, 2017 |
Liabilities, Current [Abstract] | ||
Current tax payable | $ 40 | $ 39 |
Royalties and commissions payable | 187 | 152 |
Current portion of long-term debt | 92 | 103 |
Other | 247 | 306 |
Total Other current liabilities | $ 566 | $ 600 |
Additional Financial Informat59
Additional Financial Information - Components of Other, Net (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Components of Other Income (Expense) [Line Items] | |||||
Write-down of available-for-sale securities | [1] | $ (3) | $ 0 | $ (33) | $ (21) |
Gain on sale of other businesses | 0 | 0 | 0 | 11 | |
Gain on sale of equity method investments | 0 | 0 | 0 | 17 | |
Other, net | 0 | 0 | 7 | 13 | |
Total Other, net | 29 | (13) | 6 | 127 | |
SEEK Asia Limited [Member] | |||||
Components of Other Income (Expense) [Line Items] | |||||
Gain on sale business | [2] | 32 | 0 | 32 | 0 |
REA Group [Member] | |||||
Components of Other Income (Expense) [Line Items] | |||||
Gain on sale business | $ 0 | $ (13) | $ 0 | $ 107 | |
[1] | For the three and nine months ended March 31, 2018 and for the nine months ended March 31, 2017, 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. | ||||
[2] | During the three months ended March 31, 2018, the Company sold its investment in SEEKAsia for $122 million in cash and recognized a $32 million gain in Other, net. |
Additional Financial Informat60
Additional Financial Information - Components of Other, Net (Parenthetical) (Detail) - SEEK Asia Limited [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Components of Other Income (Expense) [Line Items] | |||||
Sale price of business in cash | $ 122 | ||||
Gain on sale of investment | [1] | $ 32 | $ 0 | $ 32 | $ 0 |
[1] | During the three months ended March 31, 2018, the Company sold its investment in SEEKAsia for $122 million in cash and recognized a $32 million gain in Other, net. |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | |||||
May 31, 2018USD ($) | May 31, 2018AUD ($) | Mar. 31, 2018USD ($) | May 31, 2018AUD ($) | Apr. 30, 2018 | Jun. 30, 2017USD ($) | ||
Subsequent Event [Line Items] | |||||||
Channel distribution agreement intangible asset carrying value | $ 2,226 | $ 2,281 | |||||
Foxtel [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Equity method investment, ownership percentage | [1] | 50.00% | |||||
FOX SPORTS Australia [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Channel distribution agreement intangible asset carrying value | $ 322 | ||||||
Foxtel and Fox Sports Australia [Member] | Foxtel [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Long term debt | $ 1,700 | ||||||
Equity method investment, ownership percentage | 50.00% | ||||||
Foxtel and Fox Sports Australia [Member] | FOX SPORTS Australia [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Company ownership percentage | 100.00% | ||||||
Subsequent Event [Member] | REA Group [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Long term debt | $ 55 | $ 70 | |||||
Payment to acquire business | $ 100 | $ 130 | |||||
Subsequent Event [Member] | Foxtel and Fox Sports Australia [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Ownership interest | 65.00% | ||||||
Subsequent Event [Member] | Foxtel and Fox Sports Australia [Member] | Telstra [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Ownership interest held by minority interest | 35.00% | ||||||
[1] | During the three months ended March 31, 2018, the Company recognized a $957 million non-cash write-down of the carrying value of its investment in Foxtel. In the third quarter of fiscal 2018, as part of the long range planning process and in preparation for the Transaction, the Company assessed the long-term prospects for Foxtel, on both a stand-alone and combined basis. As a result of lower-than-expected revenues from certain new products and broadcast subscribers at Foxtel, the Company revised its outlook for Foxtel, which resulted in a reduction in expected future cash flows. Based on the revised projections, the Company concluded that the fair value of its investment in Foxtel declined below its carrying value. The assumptions utilized in the income approach valuation method were a discount rate of 10.25% and a long-term growth rate of 2.0%. |