Cover Page
Cover Page - $ / shares | 3 Months Ended | ||
Sep. 30, 2019 | Nov. 01, 2019 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-Q | ||
Entity Registrant Name | NEWS CORP | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001564708 | ||
Document Period End Date | Sep. 30, 2019 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | Q1 | ||
Current Fiscal Year End Date | --06-30 | ||
Document Quarterly Report | true | ||
Document Transition Report | false | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity File Number | 001-35769 | ||
Entity Tax Identification Number | 46-2950970 | ||
Local Phone Number | 416-3400 | ||
Entity Address, City or Town | New York | ||
Entity Address, Address Line One | 1211 Avenue of the Americas | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10036 | ||
City Area Code | 212 | ||
Common Class A [Member] | |||
Document Information [Line Items] | |||
Security Exchange Name | NASDAQ | ||
Trading Symbol | NWSA | ||
Title of 12(b) Security | Class A Common Stock | ||
Entity Common Stock, Shares Outstanding | 388,557,267 | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | |
Common Class B [Member] | |||
Document Information [Line Items] | |||
Security Exchange Name | NASDAQ | ||
Trading Symbol | NWS | ||
Title of 12(b) Security | Class B Common Stock | ||
Entity Common Stock, Shares Outstanding | 199,630,240 | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | |
Preferred Stock Class A [Member] | |||
Document Information [Line Items] | |||
Security Exchange Name | NASDAQ | ||
No Trading Symbol Flag | true | ||
Title of 12(b) Security | Class A Preferred Stock Purchase Rights | ||
Preferred Stock Class B [Member] | |||
Document Information [Line Items] | |||
Security Exchange Name | NASDAQ | ||
No Trading Symbol Flag | true | ||
Title of 12(b) Security | Class B Preferred Stock Purchase Rights |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues: | ||
Total Revenues | $ 2,340 | $ 2,524 |
Operating expenses | (1,337) | (1,340) |
Selling, general and administrative | (782) | (826) |
Depreciation and amortization | (162) | (163) |
Impairment and restructuring charges | (297) | (18) |
Equity losses of affiliates | (2) | (3) |
Interest income (expense), net | 4 | (16) |
Other, net | 4 | 20 |
(Loss) income before income tax benefit (expense) | (232) | 178 |
Income tax benefit (expense) | 21 | (50) |
Net (loss) income | (211) | 128 |
Less: Net income attributable to noncontrolling interests | (16) | (27) |
Net (loss) income attributable to News Corporation stockholders | $ (227) | $ 101 |
Basic and diluted (loss) earnings per share: | ||
Net (loss) income attributable to News Corporation stockholders per share | $ (0.39) | $ 0.17 |
Circulation and Subscription [Member] | ||
Revenues: | ||
Total Revenues | $ 995 | $ 1,034 |
Advertising [Member] | ||
Revenues: | ||
Total Revenues | 608 | 664 |
Consumer [Member] | ||
Revenues: | ||
Total Revenues | 387 | 400 |
Real estate [Member] | ||
Revenues: | ||
Total Revenues | 218 | 227 |
Other [Member] | ||
Revenues: | ||
Total Revenues | $ 132 | $ 199 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (211) | $ 128 | |
Other comprehensive loss: | |||
Foreign currency translation adjustments | (185) | (110) | |
Net change in the fair value of cash flow hedges | [1] | (14) | 2 |
Benefit plan adjustments, net | [2] | 11 | 5 |
Other comprehensive loss | (188) | (103) | |
Comprehensive (loss) income | (399) | 25 | |
Less: Net income attributable to noncontrolling interests | (16) | (27) | |
Less: Other comprehensive loss attributable to noncontrolling interests | 45 | 28 | |
Comprehensive (loss) income attributable to News Corporation stockholders | $ (370) | $ 26 | |
[1] | Net of income tax benefit (expense) of $3 million and ($1 million) for the three months ended September 30, 2019 and 2018, respectively. | ||
[2] | Net of income tax expense of $3 million and $1 million for the three months ended September 30, 2019 and 2018, respectively. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net change in the fair value of cash flow hedges, income tax benefit (expense) | $ 3 | $ (1) |
Benefit plan adjustments, income tax expense | $ 3 | $ 1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | |
Current assets: | |||
Cash and cash equivalents | $ 1,441 | $ 1,643 | |
Receivables, net | 1,540 | 1,544 | |
Inventory, net | 402 | 348 | |
Other current assets | 416 | 515 | |
Total current assets | 3,799 | 4,050 | |
Non-current assets: | |||
Investments | 329 | 335 | |
Property, plant and equipment, net | 2,433 | 2,554 | |
Operating lease right-of-use assets | 1,290 | ||
Intangible assets, net | 2,239 | 2,426 | |
Goodwill | 4,885 | 5,147 | |
Deferred income tax assets | 305 | 269 | |
Other non-current assets | 953 | 930 | |
Total assets | 16,233 | 15,711 | |
Current liabilities: | |||
Accounts payable | 406 | 411 | |
Accrued expenses | 1,167 | 1,328 | |
Deferred revenue | 448 | 428 | |
Current borrowings | [1] | 622 | 449 |
Other current liabilities | 849 | 724 | |
Total current liabilities | 3,492 | 3,340 | |
Non-current liabilities: | |||
Borrowings | 707 | 1,004 | |
Retirement benefit obligations | 258 | 266 | |
Deferred income tax liabilities | 274 | 295 | |
Operating lease liabilities | 1,329 | ||
Other non-current liabilities | 344 | 495 | |
Commitments and contingencies | |||
Additional paid-in capital | 12,174 | 12,243 | |
Accumulated deficit | (2,200) | (1,979) | |
Accumulated other comprehensive loss | (1,266) | (1,126) | |
Total News Corporation stockholders' equity | 8,714 | 9,144 | |
Noncontrolling interests | 1,115 | 1,167 | |
Total equity | 9,829 | 10,311 | |
Total liabilities and equity | 16,233 | 15,711 | |
Class A Common Stock [Member] | |||
Non-current liabilities: | |||
Common stock | [2] | 4 | 4 |
Class B Common Stock [Member] | |||
Non-current liabilities: | |||
Common stock | [3] | $ 2 | $ 2 |
[1] | The Company classifies the current portion of long term debt as non-current liabilities on the Balance Sheets when it has the intent and ability to refinance the obligation on a long-term basis, in accordance with ASC 470-50 “Debt.” | ||
[2] | Class A common stock, $0.01 par value per share (“Class A Common Stock”), 1,500,000,000 shares authorized, 388,492,158 and 385,580,015 shares issued and outstanding, net of 27,368,413 treasury shares at par at September 30, 2019 and June 30, 2019, respectively. | ||
[3] | Class B common stock, $0.01 par value per share (“Class B Common Stock”), 750,000,000 shares authorized, 199,630,240 shares issued and outstanding, net of 78,430,424 treasury shares at par at September 30, 2019 and June 30, 2019, respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Jun. 30, 2019 |
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 | 388,492,158 | 385,580,015 |
Common stock outstanding, net of treasury stock | 388,492,158 | 385,580,015 |
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 | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities: | ||
Net (loss) income | $ (211) | $ 128 |
Adjustments to reconcile net (loss) income to cash provided by operating activities: | ||
Depreciation and amortization | 162 | 163 |
Operating lease expense | 43 | |
Equity losses of affiliates | 2 | 3 |
Cash distributions received from affiliates | 2 | 4 |
Impairment charges | 273 | |
Other, net | (4) | (20) |
Deferred income taxes and taxes payable | (45) | 31 |
Change in operating assets and liabilities, net of acquisitions: | ||
Receivables and other assets | (1,551) | (21) |
Inventories, net | (72) | (23) |
Accounts payable and other liabilities | 1,428 | (152) |
Net cash provided by operating activities | 27 | 113 |
Investing activities: | ||
Capital expenditures | (117) | (133) |
Acquisitions, net of cash acquired | 1 | |
Investments in equity affiliates and other | (5) | (10) |
Proceeds from business dispositions | 5 | |
Proceeds from property, plant and equipment and other asset dispositions | 3 | |
Other, net | 1 | 16 |
Net cash used in investing activities | (118) | (121) |
Financing activities: | ||
Borrowings | 199 | 131 |
Repayment of borrowings | (290) | (192) |
Dividends paid | (22) | (23) |
Other, net | 18 | (40) |
Net cash used in financing activities | (95) | (124) |
Net change in cash and cash equivalents | (186) | (132) |
Cash and cash equivalents, beginning of period | 1,643 | 2,034 |
Exchange movement on opening cash balance | (16) | (16) |
Cash and cash equivalents, end of period | $ 1,441 | $ 1,886 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION News Corporation (together with its subsidiaries, “News Corporation,” “News Corp,” the “Company,” “we,” or “us”) is a global diversified media and information services company comprised of businesses across a range of media, including: news and information services, subscription video services in Australia, book publishing and digital real estate services. 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 measured at fair value, if the fair value is readily determinable. If an investment’s fair value is not readily determinable, the Company will measure the investment at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. The consolidated statements of operations are referred to herein as the “Statements of Operations.” The consolidated balance sheets are referred to herein as the “Balance Sheets.” The consolidated statements of cash flows are referred to herein as the “Statements of Cash Flows.” The accompanying Consolidated Financial Statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K 10-K”). Certain reclassifications have been made to the prior period consolidated financial statements to conform to the current year presentation. Specifically, in the first quarter of fiscal 2020, the Company reclassified the costs associated with certain initiatives previously included in the Other segment to the News and Information Services segment as these initiatives directly benefit th is . The Company’s fiscal year ends on the Sunday closest to June 30. Fiscal 2020 and fiscal 2019 include 52 Recently Issued Accounting Pronouncements Adopted In February 2016, the Financial Accounting Standards Board (“ ”) Accounting Standards Update (“ASU”) 2016-02, 2016-02”). 2016-02 right-of-use and 2016-02. 2016-02 operating lease right-of-use , current lease liab ilit ies and no ncurrent b , b and $1.4 billion , respectively , also adj ustment transactions , which decreased the A ccum ulated def icit balance as 2016-02 Ope rating lease - of -use 6 In August 2017, the FASB issued ASU 2017-12, 2017-12”). 2017-12 2017-12 for its outstanding cash flow hedges that qualified for hedge accounting as of July 1, 2019. The adoption did not have a material impact on the Company’s Consolidated Financial Statements. In February 2018, the FASB issued ASU 2018-02, 2018-02”). 2018-02 Cuts and Jobs Act (the “Tax Act”) 2018-02 The Company adopted the guidance as of July 1, 2019 and elected to not reclassify the stranded tax effects resulting from the Tax Act from Accumulated other comprehensive loss to Accumulated deficit. Consolidated Financial Statements In April 2019, the FASB issued ASU 2019-04, 2019-04”). 2019-04 2017-12, 2019-04 2017-12. 2016-01, 825-10): 2016-01”), 2019-04 2016-13. 2019-04 2017-12 2016-01 Issued In June 2016, the FASB issued ASU 2016-13, 2016-13”). 2016-13 2016-13 must be adop ted on a m odified -retr ospective approach and 2016-13 F S In August 2018, the FASB issued ASU 2018-13, 2018-13”). 2018-13 2018-13 The amendments in ASU 2018-13 related to disclosure requirements must be applied prospectively and all other amendments must be applied retrospectively. 2018-13 2018-13 F S In March 2019, the FASB issued ASU 2019-02, 926-20) 920-350): 2019-02”). 2019-02 920-350) 926-20). 2019-02 2019-02 |
Revenues
Revenues | 3 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | NOTE 2. REVENUES The following tables presents the Company’s dis a For the three months ended September 30, 2019 News and Subscription Book Digital Real Estate Total (in millions) Revenues: Circulation and subscription $ 534 $ 451 $ — $ 10 $ 995 Advertising 530 51 — 27 608 Consumer — — 387 — 387 Real estate — — — 218 218 Other 85 12 18 17 132 Total Revenues $ 1,149 $ 514 $ 405 $ 272 $ 2,340 For the three months ended September 30, 2018 News and Subscription Book Digital Real Estate Total (in millions) Revenues: Circulation and subscription $ 529 $ 491 $ — $ 14 $ 1,034 Advertising 576 57 — 31 664 Consumer — — 400 — 400 Real estate — — — 227 227 Other 143 17 18 21 199 Total Revenues $ 1,248 $ 565 $ 418 $ 293 $ 2,524 Contract liabilities and assets The Company’s deferred revenue balance primarily relates to amounts received from customers for subscriptions paid in advance of the services being provided. The following table presents changes in the deferred revenue balance for the three months ended September 30, 2019 and 2018: For the three months ended September 30, 2019 2018 (in millions) Balance - $ 428 $ 510 Deferral of revenue 821 595 Recognition of deferred revenue (a) (794 ) (670 ) Other (7 ) 1 Balance - $ 448 $ 436 (a) For the three months ended September 30, 2019 and 2018, the Company recognized approximately $266 million and $357 million, respectively, of revenue which was included in the opening deferred revenue balance. Contract assets were immaterial for disclosure as of September 30, 2019 a nd 2018 O The Company typically expenses sales commissions incurred to obtain a customer contract as those amounts are incurred as the amortization period is twelve months or less. These costs are recorded within Selling, general and administrative in the Statements of Operations. The Company also does not capita liz e During the three months ended September 30, 2019, the Company recognized approximately $80 million in revenues related to performance obligations that were satisfied or partially satisfied in a prior reporting period. The remaining transaction price related to unsatisfied performance obligations as of September 30 approxi mately and approxim ately one year |
Impairment and Restructuring Ch
Impairment and Restructuring Charges | 3 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Impairment and Restructuring Charges | NOTE 3 During the three months ended September 30, 2019, the Company recognized non-cash non-cash non-cash 17.0%-18.5%) 0.6%-1.5%). During the three months ended September 30, 2019 and 2018, the Company recorded restructuring charges of $24 million and $18 million, respectively, of which $19 million and $17 million, respectively, related to the News and Information Services segment. The restructuring charges recorded in fiscal 2020 and 2019 were for employee termination benefits. Changes in restructuring program liabilities were as follows: For the three months ended September 30, 2019 2018 One time Facility Other Total One time Facility Other Total (in millions) Balance, beginning of period $ 28 $ 2 $ 10 $ 40 $ 29 $ 2 $ 11 $ 42 Additions 24 — — 24 18 — — 18 Payments (29 ) — — (29 ) (23 ) — (1 ) (24 ) Other (1 ) (2 ) — (3 ) (1 ) — 1 — Balance, end of period $ 22 $ — $ 10 $ 32 $ 23 $ 2 $ 11 $ 36 As of September 30, 2019, restructuring liabilities of approximately $23 million were included in the Balance Sheet in Other current liabilities and $9 million were included in Other non-current |
Investments
Investments | 3 Months Ended |
Sep. 30, 2019 | |
Schedule of Investments [Abstract] | |
Investments | NOTE 4 The Company’s investments were comprised of the following: Ownership of September 30, 2019 As of As of (in millions) Equity method investments (a) various $ 140 $ 148 Equity securities (b) various 189 187 Total Investments $ 329 $ 335 (a) Equity method investments are primarily comprised of Foxtel’s investment in Nickelodeon Australia Joint Venture and Elara Technologies Pte. Ltd. (“Elara”), which operates PropTiger.com, Makaan.com and Housing.com. (b) Equity securities are primarily comprised of certain investments in China and the Company’s investment in HT&E Limited, which operates a portfolio of Australian radio and outdoor media assets. The Company has equity securities with quoted prices in active markets as well as equity securities without readily determinable fair market values. Equity securities without readily determinable fair market values are valued at cost, less any impairment, plus or minus changes in fair value resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. The components comprising total gains and losses on equity securities are set forth below: For the three months ended September 30, 2019 2018 (in millions) Total gains recognized on equity securities $ 1 $ 15 Less: Gains recognized on equity securities sold — — Unrealized gains recognized on equity securities held at end of period $ 1 $ 15 Equity Losses of Affiliates The Company’s share of the losses of its equity affiliates was $2 million and $3 million for the three months ended September 30, 2019 and 2018, respectively. |
Borrowings
Borrowings | 3 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | NOTE 5 The Company’s total borrowings consist of the following: Interest rate at Due date at As of As of 2019 (in millions) Foxtel Group Credit facility 2014 (a) 2.92 % Jan 31, 2020 $ 135 $ 56 Credit facility 2015 (a) 3.12 % Jul 31, 2020 271 281 Credit facility 2016 (a)(c) 3.60 % Sept 11, 2021 237 193 Working capital facility 2017 (a)(c) 3.27 % Jul 3, 2020 54 56 US private placement 2009 tranche 3 (b) — Sept 24, 2019 — 75 US private placement 2012 USD portion tranche 1 (b) — Jul 25, 2019 — 150 US private placement 2012 USD portion (d) 4.27 % Jul 25, 2022 200 199 US private placement 2012 USD portion tranche 3 (d) 4.42 % Jul 25, 2024 150 149 US private placement 2012 AUD portion 7.04 % Jul 25, 2022 73 77 REA Group Credit facility 2016 tranche 3 (e) 2.30 % Dec 31, 2019 162 168 Credit facility 2018 (e) 2.06 % Apr 27, 2021 47 49 Total borrowings 1,329 1,453 Less: current portion (f) (622 ) (449 ) Long-term borrowings $ 707 $ 1,004 (a) Borrowings under these facilities bear interest at a floating rate of Australian BBSY plus an applicable margin of between 1.20% and 2.70% per annum payable quarterly. (b) During the three months ended September 30, 2019, certain subsidiaries of Foxtel (together with Foxtel, the “ ”) aggregate pri ncipal amou n t s aggregate principal amount of s (c) As of September 30, 2019, the Foxtel Debt Group has undrawn commitments of $41 million under these facilities for which it pays a commitment fee of (d) The carrying value of the borrowings include any fair value adjustments related to the Company’s fair value hedges. See Note 8 (e) Borrowings under these facilities bear interest at a floating rate of the Australian BBSY plus a margin of between 0.85% and 1.45% depending on REA Group’s net leverage ratio. As of September 30, 2019, REA Group was paying a margin of between 0.85% and 1.05%. (f) The Company classifies the current portion of long term debt as non-current 470-50 |
Leases
Leases | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | NOTE 6 On July 1, 2019, the Company adopted ASU 2016-02 and $9 million related to previous sale leaseback transactions . ASU 2016-02 right-of-use right-of-use right-of-use b , $0.2 billi o b The Company assesses whether an arrangement is a lease or contains a lease at inception. For arrangements considered leases or that contain a lease that is accounted for separately, the classification and initial measurement of the right-of-use Operating l right-of-use Operating lease right-of-use Rent expense is recognized for operating leases on a straight-line basis over the lease term. Such amounts are presented within either Selling, general and administrative or Operating expenses in the S t atement of Operati ons lease The Company ap pli ed 2016-02 ; (4) existing land easem ents for lease accounting treat ment In addition, the Company elected the short term lease exemption to not record on the B alance S heet that have and In circumstances where the Company is the lessee, the Company elected to account for lease and non-lease has contracts that contain set-top lessor non-lease s non-lease The Company applies Summary of leases The Company primarily leases real estate, including office space, warehouse space and printing facilities. It also leases satellite transponders for purposes of providing its subscription video service to consumers. These leases were determined to be operating leases in accordance with ASU 2016-02. Certain of the Company’s leases include rent adjustments which may be indexed to various metrics, including the consumer price index or other inflationary indexes. As a general matter, the Company’s real estate lease arrangements typically require adjustments resulting from changes in real estate taxes and other costs to operate the leased asset. Other required lease disclosures The total lease cost for operating leases included in the Statement of Operations was as follows: For the three months ended Income Statement Location 2019 (in millions) Operating lease costs Selling, general and administrative $ 48 Operating lease costs Operating expenses 3 Short term lease costs Operating expenses 2 Variable l Selling, general and administrative 9 Total lease costs $ 62 Additional information related to the Company’s operating leases under ASU 2016-02: As of Weighted-average remaining lease term 11.4 years Weighted-average incremental borrowing rate 3.25 % For the 2019 (in millions) Cash paid—Operating lease liabilities $ 57 Operating lease right-of-use ies $ 225 Future minimum lease payments under non-cancellable As of September 30, 2019 (in millions) Fiscal 2020 (nine months remaining) $ 174 Fiscal 2021 201 Fiscal 2022 199 Fiscal 2023 188 Fiscal 2024 172 Thereafter 934 Total future minimum lease payments 1,868 Less: interest 357 Present value of minimum payments $ 1,511 |
Equity
Equity | 3 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Equity | NOTE 7 The following tables summarize changes in equity for the three months ended September 30, 2019 and 2018: For the three months ended September 30, 2019 Class A Class B Additional Paid-in Accumulated Accumulated Total Non- Total Shares Amount Shares Amount Capital Deficit Loss Equity Interests Equity (in millions) Balance, June 30, 2019 386 $ 4 200 $ 2 $ 12,243 $ (1,979 ) $ (1,126 ) $ 9,144 $ 1,167 $ 10,311 Cumulative from — — — — — 6 3 9 — 9 Net (loss) — — — — — (227 ) — (227 ) 16 (211 ) Other loss — — — — — — (143 ) (143 ) (45 ) (188 ) Dividends — — — — (59 ) — — (59 ) (22 ) (81 ) Other 2 — — — (10 ) — — (10 ) (1 ) (11 ) Balance, September 30, 388 $ 4 200 $ 2 $ 12,174 $ (2,200 ) $ (1,266 ) $ 8,714 $ 1,115 $ 9,829 For the three months ended September 30, 2018 Class A Class B Additional Paid-in Accumulated Accumulated Total Non Total Shares Amount Shares Amount Capital Deficit Loss Equity Interests Equity (in millions) Balance, June 30, 2018 383 $ 4 200 $ 2 $ 12,322 $ (2,163 ) $ (874 ) $ 9,291 $ 1,186 $ 10,477 Cumulative rom 32 (22 ) 10 10 20 Net — — — — — 101 — 101 27 128 Other comprehensive loss — — — — — — (75 ) (75 ) (28 ) (103 ) Dividends — — — — (59 ) — — (59 ) (23 ) (82 ) Other 2 — — — (6 ) (2 ) 1 (7 ) (3 ) (10 ) Balance, September 30, 2018 385 $ 4 200 $ 2 $ 12,257 $ (2,032 ) $ (970 ) $ 9,261 $ 1,169 $ 10,430 Stock Repurchases In May 2013, the Company’s Board of Directors (the “Board of Directors”) authorized the Company to repurchase up to an aggregate of $500 million of its Class A Common Stock. No stock repurchases were made during the three months ended September 30, 2019 and 2018. Through November 1, 2019, 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 November 1, 2019 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. The Company did not purchase any of its Class B Common Stock during the three months ended September 30, 2019 and 2018 . Dividends In August 2019, the Board of Directors declared a semi-annual cash dividend of $0.10 per share for Class A Common Stock and Class B Common Stock. This dividend was paid on October 16, 2019 to stockholders of record at the close on business on September 11, 2019. In August 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 October 17, 2018 to stockholders of record at the close of business on September 12, 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. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | NOTE 8 In accordance with ASC 820, “Fair Value Measurements” (“ASC 820”) fair value measurements are required to be disclosed using a three-tiered fair value hierarchy which distinguishes market participant assumptions into the following categories: • Level 1 • Level 2 • Level 3 Under ASC 820, certain assets and liabilities are required to be remeasured to fair value at the end of each reporting period. The following table summarizes those assets and liabilities measured at fair value on a recurring basis: As of September 30, 2019 As of June 30, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in millions) Assets: Foreign currency derivatives - $ — $ — $ — $ — $ — $ 1 $ — $ 1 Cross currency interest rate derivatives - fair value hedges — 23 — 23 — 29 — 29 Cross currency interest rate derivatives - economic hedges — — — — — 12 — 12 Cross currency interest rate derivatives - cash flow hedges — 93 — 93 — 116 — 116 Equity securities (a) 77 — 112 189 74 — 113 187 Total assets $ 77 $ 116 $ 112 $ 305 $ 74 $ 158 $ 113 $ 345 Liabilities: Interest rate derivatives - cash flow hedges $ — $ 19 $ — $ 19 $ — $ 20 $ — $ 20 Mandatorily redeemable noncontrolling interests — — — — — — 11 11 Cross currency interest rate derivatives - cash flow hedges — 19 — 19 — 18 — 18 Total liabilities $ — $ 38 $ — $ 38 $ — $ 38 $ 11 $ 49 (a) See Note 4 There have been no transfers between levels of the fair value hierarchy during the periods presented. Equity securities The fair values of equity securities with quoted prices in active markets are determined based on the closing price at the end of each reporting period. These securities are classified as Level 1 in the fair value hierarchy outlined above. The fair values of equity securities without readily determinable fair market values are determined based on cost, less any impairment, plus or minus changes in fair value resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. These securities are classified as Level 3 in the fair value hierarchy outlined above. A rollforward of the Company’s equity securities classified as Level 3 is as follows: For the three months ended September 30, 2019 2018 (in millions) Balance - (a) $ 113 $ 127 Purchases — 5 Sales — (10 ) Foreign exchange and other (1 ) (7 ) Balance - $ 112 $ 115 (a) As a result of 2016-01 during the first quarter of fiscal 2019 , Mandatorily redeemable noncontrolling interests The Company has liabilities recorded in its Balance Sheets for its mandatorily redeemable noncontrolling interests. These liabilities represent management’s best estimate of the amounts expected to be paid in accordance with the contractual terms of the underlying acquisition agreements. The fair values of these liabilities are based on the contractual payout formulas included in the acquisition agreements taking into account the expected performance of the business. Any remeasurements or accretion related to the Company’s mandatorily redeemable noncontrolling interests are recorded through Interest expense, net in the Statements of Operations. As the fair value does not rely on observable market inputs, the Company classifies these liabilities as Level 3 in the fair value hierarchy. A rollforward of the Company’s mandatorily redeemable noncontrolling interest liabilities classified as Level 3 is as follows: For the three months ended September 30, 2019 2018 (in millions) Balance - $ 12 $ 12 Payments (a) (11 ) — Other (1 ) — Balance - $ — $ 12 (a) In Derivative Instruments The Company is directly and indirectly affected by risks associated with changes in certain market conditions. When deemed appropriate, the Company uses derivative instruments to mitigate the potential impact of these market risks. The primary market risks managed by the Company through the use of derivative instruments include: • foreign currency exchange rate risk: arising primarily through Foxtel Debt Group borrowings denominated in U.S. dollars and payments for customer premise equipment; and • interest rate risk: arising from fixed and floating rate Foxtel Debt Group borrowings. The Company formally designates qualifying derivatives as hedge relationships (“hedges”) and applies hedge accounting when considered appropriate. For economic hedges where no hedge relationship has been designated, changes in fair value are included as a component of net income in each reporting period within Other, net in the Statements of Operations. The Company does not use derivative financial instruments for trading or speculative purposes. Hedges are classified as current or non-current Balance Sheet Location As of As of (in millions) Foreign currency derivatives - Other current assets $ — $ 1 Cross currency interest rate derivatives - fair value hedges Other current assets — 8 Cross currency interest rate derivatives - economic hedges Other current assets — 12 Cross currency interest rate derivatives - cash flow hedges Other current assets — 33 Cross currency interest rate derivatives - fair value hedges Other non-current 23 21 Cross currency interest rate derivatives - cash flow hedges Other non-current 93 83 Interest rate derivatives - cash flow hedges Other current liabilities (1 ) (2 ) Interest rate derivatives - cash flow hedges Other non-current (18 ) (18 ) C - cash flow hedges Other non-current (19 ) (18 ) The following sets forth the effect of fair value hedging relationships on hedged items in the Balance Sheets as of September 30, 2019: As of (in millions) Borrowings: Carrying amount of hedged item $ 69 Cumulative hedging adjustments included in the carrying amount (3 ) Cash flow hedges The Company utilizes a combination of foreign currency derivatives, interest rate derivatives and cross currency interest rate derivatives to mitigate currency exchange and interest rate risk in relation to future interest payments and payments for customer premise equipment. The total notional value of foreign currency contract derivatives designated for hedging was $79 million as of September 30, 2019. The maximum hedged term over which the Company is hedging exposure to foreign currency fluctuations is to September 2020. As of September 30, 2019, the Company estimates that no The total notional value of interest rate swap derivatives designated as cash flow hedges was approximately A$500 million as of September 30, 2019. The maximum hedged term over which the Company is hedging exposure to variability in interest payments is to September 2022. As of September 30, 2019, the Company estimates that no net derivative gains related to its interest rate swap derivative cash flow hedges included in Accumulated other comprehensive loss will be reclassified into the Statement of Operations within the next 12 months. The total notional value of the cross currency interest rate swaps that were designated as cash flow hedges was approximately A$280 million as of September 30, 2019. The maximum hedged term over which the Company is hedging exposure to variability in interest payments is to July 2024. As of September 30, 2019, the Company estimates that no net derivative gains related to its cross currency interest rate swap derivative cash flow hedges included in Accumulated other comprehensive loss will be reclassified into the Statement of Operations within the next 12 months. The following tables present the impact that changes in the fair values of derivatives designated as cash flow hedges had on Accumulated other comprehensive loss and the Statement of Operations during the three months ended September 30, 2019 and 2018. Gain (loss) recognized in (Gain) loss reclassified from o c l the three months ended o c l the three months ended Income statement location 2019 2018 2019 2018 (in millions) Derivative instruments designated as cash flow hedges: Foreign currency derivatives - $ (1 ) $ 2 $ (2 ) $ (1 ) Operating expenses Cross currency interest rate derivatives - cash flow hedges 5 (14 ) (9 ) 14 Interest income (expense), net Interest rate derivatives - cash flow hedges (4 ) (1 ) (6 ) 2 Interest income (expense), net Total $ — $ (13 ) $ (17 ) $ 15 Upon adoption of ASU 2017-12, A amounts for the ineffective portion of , excluded the currency basis from Fair value hedges Borrowings issued at fixed rates and in U.S. dollars expose the Company to fair value interest rate risk and currency exchange rate risk. The Company manages fair value interest rate risk and currency exchange rate risk through the use of cross currency interest rate swaps under which the Company exchanges fixed interest payments equivalent to the interest payments on the U.S. dollar denominated debt for floating rate Australian dollar denominated interest payments. The changes in fair value of derivatives designated as fair value hedges and the offsetting changes in fair value of the hedged items are recognized in Other, net. For the three mont h The total notional value of the fair value hedges was approximately A$70 million as of September 30, 2019. The maximum hedged term over which the Company is hedging exposure to variability in interest payments is to July 2024. During the three months ended September 30, 2019 and 2018, the amount recognized in the Statement of Operations on derivative instruments designated as fair value hedges related to the ineffective portion was nil, respectively, and the Company excluded the currency basis from 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. During the three months ended September 30, 2019, the Company recognized non-cash goodwill and The Company did not recognize any write-downs on the carrying value of its assets during the three months ended September 30, Other Fair Value Measurements As of September 30, 2019, the carrying value of the Company’s outstanding borrowings approximates the fair value. The U.S. private placement borrowings are classified as level 2 and the remaining borrowings are classified as level 3 in the fair value hierarchy. |
(Loss) Earnings Per Share
(Loss) Earnings Per Share | 3 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 9 (LOSS) The following tables set forth the computation of basic and diluted (loss) earnings per share under ASC 260, “Earnings per Share”: For the three months ended 2019 2018 (in millions, except per share amounts) Net (l oss) $ (211 ) $ 128 Less: Net income attributable to noncontrolling interests (16 ) (27 ) Net (loss) $ (227 ) $ 101 Weighted-average number of shares of common stock outstanding - 586.7 583.9 Dilutive effect of equity awards (a) — 1.7 Weighted-average number of shares of common stock outstanding - diluted 586.7 585.6 Net (loss) - basic and diluted $ (0.39 ) $ 0.17 (a) The dilutive impact of the Company’s performance stock units, restricted stock units and stock options has been excluded from the calculation of diluted loss per share for the three months ended September 30, 2019 because their inclusion would have an antidilutive effect on the net loss per share. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10. Commitments and CONTINGENCIES Commitments The Company has commitments under certain firm contractual arrangements (“firm commitments”) to make future payments. These firm commitments secure the future rights to various assets and services to be used in the normal course of operations. The Company’s commitments as of September 30, 2019 have not changed significantly from the disclosures included in the 2019 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 Insignia Systems, Inc. On July 11, 2019, Insignia Systems, Inc. (“Insignia”) filed a complaint in the U.S. District Court for the District of Minnesota against News America Marketing FSI L.L.C. (“NAM FSI”), News America Marketing In-Store In-Store”) In-Store Valassis Communications, Inc. On November 8, 2013, Valassis Communications, Inc. (“Valassis”) filed a complaint in the U.S. District Court for the Eastern District of Michigan (the “District Court”) against the NAM Parties and News America Incorporated (together, the “NAM Group”) alleging violations of federal and state antitrust laws and common law business torts, including unfair competition. The complaint seeks treble damages, injunctive relief and attorneys’ fees and costs. NAM In-Store On December 19, 2013, the NAM Group filed a motion to dismiss the complaint and on March 30, 2016, the District Court dismissed Valassis’s bundling and tying claims. On September 25, 2017, the District Court granted Valassis’s motion to transfer the case to the U.S. District Court for the Southern District of New York (the “N.Y. District Court”). On April 13, 2018, the NAM Group filed a motion for summary judgment dismissing the case which was granted in part and denied in part by the N.Y. District Court on February 21, 2019. The N.Y. District Court found that the NAM Group’s bidding practices were lawful but denied its motion with respect to claims arising out of certain other alleged contracting practices. In addition, the N.Y. District Court also dismissed Valassis’s claims relating to free-standing insert products. While it is not possible at this time to predict with any degree of certainty the ultimate outcome of this action, the NAM Group believes it has been compliant with applicable laws and intends to defend itself vigorously. U.K. Newspaper Matters Civil claims have been brought against the Company with respect to, among other things, voicemail interception and inappropriate payments to public officials at the Company’s former publication, The News of the World The Sun In connection with the separation of the Company from Twenty-First Century Fox, Inc. (“21st Century Fox”) on June 28, 2013, the Company and 21st Century Fox agreed in the Separation and Distribution Agreement that 21st Century Fox would indemnify the Company for payments made after such date arising out of civil claims and investigations relating to the U.K. Newspaper Matters as well as legal and professional fees and expenses paid in connection with the previously concluded criminal matters, other than fees, expenses and costs relating to employees (i) who are not directors, officers or certain designated employees or (ii) with respect to civil matters, who are not co-defendants after-tax The net expense related to the U.K. Newspaper Matters in Selling, general and administrative was $2 million 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, these liabilities may need to be adjusted as new information becomes known and as tax examinations continue to progress, or as settlements or litigations occur. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 1 1 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 September 30, 2019, the Company recorded an benefit a pre-tax loss lower The lower tax rate was primarily due to the lower tax benefit recorded on the impairment of News America Marketing’s goodwill and indefinite-lived intangible assets and by valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses. For the three months ended September 30, 2018, the Company recorded income tax expense of $ million on p re-tax income of $ million, resulting in an effective tax rate that was higher than the U.S. statutory tax rate. The higher tax rate was primarily due to valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses and the impact from foreign operations which are subject to higher tax rates. 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 certain U.S. Federal, State and foreign jurisdictions may not be realized and therefore, a valuation allowance has been established against those tax assets. The Company’s tax returns are subject to on-going The Company paid gross income taxes of $27 million and $29 million during the three months ended September 30, 2019 and 2018, respectively, and received tax refunds of $ 3 million |
Segment Information
Segment Information | 3 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 1 2 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 Advertiser The Times, The Sunday Times, The Sun The Sun on Sunday New York Post in-store • Subscription Video Services pay-TV Australian News Channel (“ANC”) pay-TV over-the-top, ANC operates the SKY NEWS network, Australia’s 24-hour • Book Publishing The Hobbit, Goodnight Moon, To Kill a Mockingbird, Jesus Calling Hillbilly Elegy • Digital Real Estate Services end-to-end Move is a leading provider of online real estate services in the U.S. and primarily operates realtor.com ® SM SM ® TM • 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 (expense) income, net, other, net and income tax (expense) benefit. Segment EBITDA may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what items should be included in the calculation of Segment EBITDA. Segment EBITDA is the primary measure used by the Company’s chief operating decision maker to evaluate the performance of and allocate resources within the Company’s businesses. Segment EBITDA provides management, investors and equity analysts with a measure to analyze the operating performance of each of the Company’s business segments and its enterprise value against historical data and competitors’ data, although historical results may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences). Segment information is summarized as follows: For the three months ended September 30, 2019 2018 (in millions) Revenues: News and Information Services $ 1,149 $ 1,248 Subscription Video Services 514 565 Book Publishing 405 418 Digital Real Estate Services 272 293 Total revenues $ 2,340 $ 2,524 Segment EBITDA: News and Information Services $ 56 $ 109 Subscription Video Services 81 113 Book Publishing 49 68 Digital Real Estate Services 82 105 Other (47 ) (37 ) Depreciation and amortization (162 ) (163 ) Impairment and restructuring charges (297 ) (18 ) Equity losses of affiliates (2 ) (3 ) Interest income (expense), net 4 (16 ) Other, net 4 20 (Loss) i benefit ( ) (232 ) 178 Income tax benefit ( ) 21 (50 ) Net (loss) $ (211 ) $ 128 As of As of September 30, 2019 June 30, 2019 (in millions) Total assets: News and Information Services $ 5,580 $ 5,482 Subscription Video Services 4,585 4,406 Book Publishing 2,174 2,074 Digital Real Estate Services 2,224 2,229 Other (a) 1,341 1,185 Investments 329 335 Total assets $ 16,233 $ 15,711 ( a) The Other segment primarily includes Cash and cash equivalents. As of As of September 30, 2019 June 30, 2019 (in millions) Goodwill and intangible assets, net: News and Information Services $ 2,325 $ 2,617 Subscription Video Services 2,487 2,595 Book Publishing 755 772 Digital Real Estate Services 1,557 1,589 Total Goodwill and intangible assets, net $ 7,124 $ 7,573 |
Additional Financial Informatio
Additional Financial Information | 3 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Financial Information | NOTE 1 3 Receivables, net Receivables are presented net of an allowance for doubtful accounts, which is an estimate of amounts that may not be collectible. The allowance for doubtful accounts is estimated based on historical experience, receivable aging, current economic trends and specific identification of certain receivables that are at risk of not being collected. Receivables, net consist of: As of As of September 30, 2019 June 30, 2019 (in millions) Receivables $ 1,593 $ 1,590 Allowance for doubtful accounts (53 ) (46 ) Receivables, net $ 1,540 $ 1,544 Other Non-Current The following table sets forth the components of Other non-current As of As of September 30, 2019 June 30, 2019 (in millions) Royalty advances to authors $ 347 $ 343 Retirement benefit assets 122 117 Inventory (a) 161 155 Other 323 315 Total Other non-current $ 953 $ 930 (a) Primarily consists of the non-current Other Current Liabilities The following table sets forth the components of Other current liabilities: As of As of September 30, 2019 June 30, 2019 (in millions) Royalties and commissions payable $ 229 $ 211 Current operating lease liabilities (a) 182 — Allowance for sales returns 176 192 Current tax payable 21 22 Other 241 299 Total Other current liabilities $ 849 $ 724 (a) As a result of the adoption of ASU 2016-02 Other, net The following table sets forth the components of Other, net: For the three months ended September 30, 2019 2018 (in millions) Remeasurement of equity securities $ 1 $ 15 Other 3 5 Total Other, net $ 4 $ 20 Supplemental Cash Flow Information The following table sets forth the Company’s cash paid for taxes and interest: For the three months ended September 30, 2019 2018 (in millions) Cash paid for interest $ 16 $ 23 Cash paid for taxes 27 29 |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of the Company, which are referred to herein as the “Consolidated Financial Statements,” have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q 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 measured at fair value, if the fair value is readily determinable. If an investment’s fair value is not readily determinable, the Company will measure the investment at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. The consolidated statements of operations are referred to herein as the “Statements of Operations.” The consolidated balance sheets are referred to herein as the “Balance Sheets.” The consolidated statements of cash flows are referred to herein as the “Statements of Cash Flows.” The accompanying Consolidated Financial Statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K 10-K”). Certain reclassifications have been made to the prior period consolidated financial statements to conform to the current year presentation. Specifically, in the first quarter of fiscal 2020, the Company reclassified the costs associated with certain initiatives previously included in the Other segment to the News and Information Services segment as these initiatives directly benefit th is . The Company’s fiscal year ends on the Sunday closest to June 30. Fiscal 2020 and fiscal 2019 include 52 |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Adopted In February 2016, the Financial Accounting Standards Board (“ ”) Accounting Standards Update (“ASU”) 2016-02, 2016-02”). 2016-02 right-of-use and 2016-02. 2016-02 operating lease right-of-use , current lease liab ilit ies and no ncurrent b , b and $1.4 billion , respectively , also adj ustment transactions , which decreased the A ccum ulated def icit balance as 2016-02 Ope rating lease - of -use 6 In August 2017, the FASB issued ASU 2017-12, 2017-12”). 2017-12 2017-12 for its outstanding cash flow hedges that qualified for hedge accounting as of July 1, 2019. The adoption did not have a material impact on the Company’s Consolidated Financial Statements. In February 2018, the FASB issued ASU 2018-02, 2018-02”). 2018-02 Cuts and Jobs Act (the “Tax Act”) 2018-02 The Company adopted the guidance as of July 1, 2019 and elected to not reclassify the stranded tax effects resulting from the Tax Act from Accumulated other comprehensive loss to Accumulated deficit. Consolidated Financial Statements In April 2019, the FASB issued ASU 2019-04, 2019-04”). 2019-04 2017-12, 2019-04 2017-12. 2016-01, 825-10): 2016-01”), 2019-04 2016-13. 2019-04 2017-12 2016-01 Issued In June 2016, the FASB issued ASU 2016-13, 2016-13”). 2016-13 2016-13 must be adop ted on a m odified -retr ospective approach and 2016-13 F S In August 2018, the FASB issued ASU 2018-13, 2018-13”). 2018-13 2018-13 The amendments in ASU 2018-13 related to disclosure requirements must be applied prospectively and all other amendments must be applied retrospectively. 2018-13 2018-13 F S In March 2019, the FASB issued ASU 2019-02, 926-20) 920-350): 2019-02”). 2019-02 920-350) 926-20). 2019-02 2019-02 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregated Revenue by Type and Segment | The following tables presents the Company’s dis a For the three months ended September 30, 2019 News and Subscription Book Digital Real Estate Total (in millions) Revenues: Circulation and subscription $ 534 $ 451 $ — $ 10 $ 995 Advertising 530 51 — 27 608 Consumer — — 387 — 387 Real estate — — — 218 218 Other 85 12 18 17 132 Total Revenues $ 1,149 $ 514 $ 405 $ 272 $ 2,340 For the three months ended September 30, 2018 News and Subscription Book Digital Real Estate Total (in millions) Revenues: Circulation and subscription $ 529 $ 491 $ — $ 14 $ 1,034 Advertising 576 57 — 31 664 Consumer — — 400 — 400 Real estate — — — 227 227 Other 143 17 18 21 199 Total Revenues $ 1,248 $ 565 $ 418 $ 293 $ 2,524 |
Summary of Deferred Revenue from Contracts with Customers | The following table presents changes in the deferred revenue balance for the three months ended September 30, 2019 and 2018: For the three months ended September 30, 2019 2018 (in millions) Balance - $ 428 $ 510 Deferral of revenue 821 595 Recognition of deferred revenue (a) (794 ) (670 ) Other (7 ) 1 Balance - $ 448 $ 436 (a) For the three months ended September 30, 2019 and 2018, the Company recognized approximately $266 million and $357 million, respectively, of revenue which was included in the opening deferred revenue balance. |
Impairment and Restructuring _2
Impairment and Restructuring Charges (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Changes in Restructuring Program Liabilities | Changes in restructuring program liabilities were as follows: For the three months ended September 30, 2019 2018 One time Facility Other Total One time Facility Other Total (in millions) Balance, beginning of period $ 28 $ 2 $ 10 $ 40 $ 29 $ 2 $ 11 $ 42 Additions 24 — — 24 18 — — 18 Payments (29 ) — — (29 ) (23 ) — (1 ) (24 ) Other (1 ) (2 ) — (3 ) (1 ) — 1 — Balance, end of period $ 22 $ — $ 10 $ 32 $ 23 $ 2 $ 11 $ 36 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Schedule of Investments [Abstract] | |
Schedule of Investments | The Company’s investments were comprised of the following: Ownership of September 30, 2019 As of As of (in millions) Equity method investments (a) various $ 140 $ 148 Equity securities (b) various 189 187 Total Investments $ 329 $ 335 (a) Equity method investments are primarily comprised of Foxtel’s investment in Nickelodeon Australia Joint Venture and Elara Technologies Pte. Ltd. (“Elara”), which operates PropTiger.com, Makaan.com and Housing.com. (b) Equity securities are primarily comprised of certain investments in China and the Company’s investment in HT&E Limited, which operates a portfolio of Australian radio and outdoor media assets. |
Schedule of Total Gains and Losses on Equity Securities | The components comprising total gains and losses on equity securities are set forth below: For the three months ended September 30, 2019 2018 (in millions) Total gains recognized on equity securities $ 1 $ 15 Less: Gains recognized on equity securities sold — — Unrealized gains recognized on equity securities held at end of period $ 1 $ 15 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | The Company’s total borrowings consist of the following: Interest rate at Due date at As of As of 2019 (in millions) Foxtel Group Credit facility 2014 (a) 2.92 % Jan 31, 2020 $ 135 $ 56 Credit facility 2015 (a) 3.12 % Jul 31, 2020 271 281 Credit facility 2016 (a)(c) 3.60 % Sept 11, 2021 237 193 Working capital facility 2017 (a)(c) 3.27 % Jul 3, 2020 54 56 US private placement 2009 tranche 3 (b) — Sept 24, 2019 — 75 US private placement 2012 USD portion tranche 1 (b) — Jul 25, 2019 — 150 US private placement 2012 USD portion (d) 4.27 % Jul 25, 2022 200 199 US private placement 2012 USD portion tranche 3 (d) 4.42 % Jul 25, 2024 150 149 US private placement 2012 AUD portion 7.04 % Jul 25, 2022 73 77 REA Group Credit facility 2016 tranche 3 (e) 2.30 % Dec 31, 2019 162 168 Credit facility 2018 (e) 2.06 % Apr 27, 2021 47 49 Total borrowings 1,329 1,453 Less: current portion (f) (622 ) (449 ) Long-term borrowings $ 707 $ 1,004 (a) Borrowings under these facilities bear interest at a floating rate of Australian BBSY plus an applicable margin of between 1.20% and 2.70% per annum payable quarterly. (b) During the three months ended September 30, 2019, certain subsidiaries of Foxtel (together with Foxtel, the “ ”) aggregate pri ncipal amou n t s aggregate principal amount of s (c) As of September 30, 2019, the Foxtel Debt Group has undrawn commitments of $41 million under these facilities for which it pays a commitment fee of (d) The carrying value of the borrowings include any fair value adjustments related to the Company’s fair value hedges. See Note 8 (e) Borrowings under these facilities bear interest at a floating rate of the Australian BBSY plus a margin of between 0.85% and 1.45% depending on REA Group’s net leverage ratio. As of September 30, 2019, REA Group was paying a margin of between 0.85% and 1.05%. (f) The Company classifies the current portion of long term debt as non-current 470-50 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of total lease cost for operating leases | The total lease cost for operating leases included in the Statement of Operations was as follows: For the three months ended Income Statement Location 2019 (in millions) Operating lease costs Selling, general and administrative $ 48 Operating lease costs Operating expenses 3 Short term lease costs Operating expenses 2 Variable l Selling, general and administrative 9 Total lease costs $ 62 |
Schedule of Additional Information Related To Operating Lease | Additional information related to the Company’s operating leases under ASU 2016-02: As of Weighted-average remaining lease term 11.4 years Weighted-average incremental borrowing rate 3.25 % For the 2019 (in millions) Cash paid—Operating lease liabilities $ 57 Operating lease right-of-use ies $ 225 |
Schedule of Future minimum lease payments under non-cancellable leases | Future minimum lease payments under non-cancellable As of September 30, 2019 (in millions) Fiscal 2020 (nine months remaining) $ 174 Fiscal 2021 201 Fiscal 2022 199 Fiscal 2023 188 Fiscal 2024 172 Thereafter 934 Total future minimum lease payments 1,868 Less: interest 357 Present value of minimum payments $ 1,511 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Summary of Changes in Equity | The following tables summarize changes in equity for the three months ended September 30, 2019 and 2018: For the three months ended September 30, 2019 Class A Class B Additional Paid-in Accumulated Accumulated Total Non- Total Shares Amount Shares Amount Capital Deficit Loss Equity Interests Equity (in millions) Balance, June 30, 2019 386 $ 4 200 $ 2 $ 12,243 $ (1,979 ) $ (1,126 ) $ 9,144 $ 1,167 $ 10,311 Cumulative from — — — — — 6 3 9 — 9 Net (loss) — — — — — (227 ) — (227 ) 16 (211 ) Other loss — — — — — — (143 ) (143 ) (45 ) (188 ) Dividends — — — — (59 ) — — (59 ) (22 ) (81 ) Other 2 — — — (10 ) — — (10 ) (1 ) (11 ) Balance, September 30, 388 $ 4 200 $ 2 $ 12,174 $ (2,200 ) $ (1,266 ) $ 8,714 $ 1,115 $ 9,829 For the three months ended September 30, 2018 Class A Class B Additional Paid-in Accumulated Accumulated Total Non Total Shares Amount Shares Amount Capital Deficit Loss Equity Interests Equity (in millions) Balance, June 30, 2018 383 $ 4 200 $ 2 $ 12,322 $ (2,163 ) $ (874 ) $ 9,291 $ 1,186 $ 10,477 Cumulative rom 32 (22 ) 10 10 20 Net — — — — — 101 — 101 27 128 Other comprehensive loss — — — — — — (75 ) (75 ) (28 ) (103 ) Dividends — — — — (59 ) — — (59 ) (23 ) (82 ) Other 2 — — — (6 ) (2 ) 1 (7 ) (3 ) (10 ) Balance, September 30, 2018 385 $ 4 200 $ 2 $ 12,257 $ (2,032 ) $ (970 ) $ 9,261 $ 1,169 $ 10,430 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured At Fair Value on Recurring Basis | The following table summarizes those assets and liabilities measured at fair value on a recurring basis: As of September 30, 2019 As of June 30, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in millions) Assets: Foreign currency derivatives - $ — $ — $ — $ — $ — $ 1 $ — $ 1 Cross currency interest rate derivatives - fair value hedges — 23 — 23 — 29 — 29 Cross currency interest rate derivatives - economic hedges — — — — — 12 — 12 Cross currency interest rate derivatives - cash flow hedges — 93 — 93 — 116 — 116 Equity securities (a) 77 — 112 189 74 — 113 187 Total assets $ 77 $ 116 $ 112 $ 305 $ 74 $ 158 $ 113 $ 345 Liabilities: Interest rate derivatives - cash flow hedges $ — $ 19 $ — $ 19 $ — $ 20 $ — $ 20 Mandatorily redeemable noncontrolling interests — — — — — — 11 11 Cross currency interest rate derivatives - cash flow hedges — 19 — 19 — 18 — 18 Total liabilities $ — $ 38 $ — $ 38 $ — $ 38 $ 11 $ 49 (a) See Note 4 |
Summary of Equity Securities Classified as Level 3 | A rollforward of the Company’s equity securities classified as Level 3 is as follows: For the three months ended September 30, 2019 2018 (in millions) Balance - (a) $ 113 $ 127 Purchases — 5 Sales — (10 ) Foreign exchange and other (1 ) (7 ) Balance - $ 112 $ 115 (a) As a result of 2016-01 during the first quarter of fiscal 2019 , |
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 three months ended September 30, 2019 2018 (in millions) Balance - $ 12 $ 12 Payments (a) (11 ) — Other (1 ) — Balance - $ — $ 12 (a) In |
Summary of Hedges Classified as Current or Non-Current in Balance Sheets Based on Maturity Dates | Hedges are classified as current or non-current Balance Sheet Location As of As of (in millions) Foreign currency derivatives - Other current assets $ — $ 1 Cross currency interest rate derivatives - fair value hedges Other current assets — 8 Cross currency interest rate derivatives - economic hedges Other current assets — 12 Cross currency interest rate derivatives - cash flow hedges Other current assets — 33 Cross currency interest rate derivatives - fair value hedges Other non-current 23 21 Cross currency interest rate derivatives - cash flow hedges Other non-current 93 83 Interest rate derivatives - cash flow hedges Other current liabilities (1 ) (2 ) Interest rate derivatives - cash flow hedges Other non-current (18 ) (18 ) C - cash flow hedges Other non-current (19 ) (18 ) |
Schedule of FairValue Hedging Relationship By Balance Sheet | The following sets forth the effect of fair value hedging relationships on hedged items in the Balance Sheets as of September 30, 2019: As of (in millions) Borrowings: Carrying amount of hedged item $ 69 Cumulative hedging adjustments included in the carrying amount (3 ) |
Financial Instruments and Fair Value Measurements - Summary of Derivative Instruments Designated as Cash Flow Hedges | The following tables present the impact that changes in the fair values of derivatives designated as cash flow hedges had on Accumulated other comprehensive loss and the Statement of Operations during the three months ended September 30, 2019 and 2018. Gain (loss) recognized in (Gain) loss reclassified from o c l the three months ended o c l the three months ended Income statement location 2019 2018 2019 2018 (in millions) Derivative instruments designated as cash flow hedges: Foreign currency derivatives - $ (1 ) $ 2 $ (2 ) $ (1 ) Operating expenses Cross currency interest rate derivatives - cash flow hedges 5 (14 ) (9 ) 14 Interest income (expense), net Interest rate derivatives - cash flow hedges (4 ) (1 ) (6 ) 2 Interest income (expense), net Total $ — $ (13 ) $ (17 ) $ 15 |
(Loss) Earnings Per Share (Tabl
(Loss) Earnings Per Share (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Share | The following tables set forth the computation of basic and diluted (loss) earnings per share under ASC 260, “Earnings per Share”: For the three months ended 2019 2018 (in millions, except per share amounts) Net (l oss) $ (211 ) $ 128 Less: Net income attributable to noncontrolling interests (16 ) (27 ) Net (loss) $ (227 ) $ 101 Weighted-average number of shares of common stock outstanding - 586.7 583.9 Dilutive effect of equity awards (a) — 1.7 Weighted-average number of shares of common stock outstanding - diluted 586.7 585.6 Net (loss) - basic and diluted $ (0.39 ) $ 0.17 (a) The dilutive impact of the Company’s performance stock units, restricted stock units and stock options has been excluded from the calculation of diluted loss per share for the three months ended September 30, 2019 because their inclusion would have an antidilutive effect on the net loss per share. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue and Segment EBITDA from Segments to Consolidated | NEWS CORPORATION NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Segment information is summarized as follows: For the three months ended September 30, 2019 2018 (in millions) Revenues: News and Information Services $ 1,149 $ 1,248 Subscription Video Services 514 565 Book Publishing 405 418 Digital Real Estate Services 272 293 Total revenues $ 2,340 $ 2,524 Segment EBITDA: News and Information Services $ 56 $ 109 Subscription Video Services 81 113 Book Publishing 49 68 Digital Real Estate Services 82 105 Other (47 ) (37 ) Depreciation and amortization (162 ) (163 ) Impairment and restructuring charges (297 ) (18 ) Equity losses of affiliates (2 ) (3 ) Interest income (expense), net 4 (16 ) Other, net 4 20 (Loss) i benefit ( ) (232 ) 178 Income tax benefit ( ) 21 (50 ) Net (loss) $ (211 ) $ 128 |
Reconciliation of Assets from Segments to Consolidated | As of As of September 30, 2019 June 30, 2019 (in millions) Total assets: News and Information Services $ 5,580 $ 5,482 Subscription Video Services 4,585 4,406 Book Publishing 2,174 2,074 Digital Real Estate Services 2,224 2,229 Other (a) 1,341 1,185 Investments 329 335 Total assets $ 16,233 $ 15,711 ( a) The Other segment primarily includes Cash and cash equivalents. |
Reconciliation of Goodwill and Intangible Assets from Segments to Consolidated | As of As of September 30, 2019 June 30, 2019 (in millions) Goodwill and intangible assets, net: News and Information Services $ 2,325 $ 2,617 Subscription Video Services 2,487 2,595 Book Publishing 755 772 Digital Real Estate Services 1,557 1,589 Total Goodwill and intangible assets, net $ 7,124 $ 7,573 |
Additional Financial Informat_2
Additional Financial Information (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Receivables, Net | Receivables, net consist of: As of As of September 30, 2019 June 30, 2019 (in millions) Receivables $ 1,593 $ 1,590 Allowance for doubtful accounts (53 ) (46 ) Receivables, net $ 1,540 $ 1,544 |
Components of Other Non-Current Assets | The following table sets forth the components of Other non-current As of As of September 30, 2019 June 30, 2019 (in millions) Royalty advances to authors $ 347 $ 343 Retirement benefit assets 122 117 Inventory (a) 161 155 Other 323 315 Total Other non-current $ 953 $ 930 (a) Primarily consists of the non-current |
Components of Other Current Liabilities | The following table sets forth the components of Other current liabilities: As of As of September 30, 2019 June 30, 2019 (in millions) Royalties and commissions payable $ 229 $ 211 Current operating lease liabilities (a) 182 — Allowance for sales returns 176 192 Current tax payable 21 22 Other 241 299 Total Other current liabilities $ 849 $ 724 (a) As a result of the adoption of ASU 2016-02 |
Components of Other, Net Included in Statements of Operations | The following table sets forth the components of Other, net: For the three months ended September 30, 2019 2018 (in millions) Remeasurement of equity securities $ 1 $ 15 Other 3 5 Total Other, net $ 4 $ 20 |
Summary of Supplemental Cash Flow Information | The following table sets forth the Company’s cash paid for taxes and interest: For the three months ended September 30, 2019 2018 (in millions) Cash paid for interest $ 16 $ 23 Cash paid for taxes 27 29 |
Description of Business and B_3
Description of Business and Basis of presentation (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2019 | Jul. 01, 2019 | |
Fiscal period duration | 364 days | ||||
Operating lease right of use assets | $ 1,290 | ||||
Decrease in deferred gain | $ 9 | ||||
Operating lease liabilities non current | $ 1,329 | ||||
News and Information Services [Member] | |||||
Effect of reclassification of expenses | $ 7 | ||||
Scenario, Forecast [Member] | |||||
Fiscal period duration | 364 days | ||||
Accounting Standards Update 2016-02 [Member] | |||||
Operating lease right of use assets | 1,400 | ||||
Operating lease liabilities,current | 200 | ||||
Operating lease liabilities non current | $ 1,400 |
Revenues - Additional Informati
Revenues - Additional Information (Detail) $ in Millions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Revenue from performance obligation | $ 80 |
Revenues - Practical expedients
Revenues - Practical expedients and other revenue disclosures (Detail) $ in Millions | Sep. 30, 2019USD ($) |
Revenue from remaining performance obligation | $ 510 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue from remaining performance obligation | $ 164 |
Expected period of performance obligation to be recognized | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue from remaining performance obligation | $ 152 |
Expected period of performance obligation to be recognized | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue from remaining performance obligation | $ 56 |
Expected period of performance obligation to be recognized | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue from remaining performance obligation | $ 24 |
Expected period of performance obligation to be recognized | 1 year |
Revenues - Summary of Disaggreg
Revenues - Summary of Disaggregated Revenue by Type and by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 2,340 | $ 2,524 |
Circulation and Subscription [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 995 | 1,034 |
Advertising [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 608 | 664 |
Consumer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 387 | 400 |
Real Estate [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 218 | 227 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 132 | 199 |
News and Information Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,149 | 1,248 |
News and Information Services [Member] | Circulation and Subscription [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 534 | 529 |
News and Information Services [Member] | Advertising [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 530 | 576 |
News and Information Services [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 85 | 143 |
Subscription Video Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 514 | 565 |
Subscription Video Services [Member] | Circulation and Subscription [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 451 | 491 |
Subscription Video Services [Member] | Advertising [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 51 | 57 |
Subscription Video Services [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 12 | 17 |
Book Publishing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 405 | 418 |
Book Publishing [Member] | Consumer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 387 | 400 |
Book Publishing [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 18 | 18 |
Digital Real Estate Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 272 | 293 |
Digital Real Estate Services [Member] | Circulation and Subscription [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 10 | 14 |
Digital Real Estate Services [Member] | Advertising [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 27 | 31 |
Digital Real Estate Services [Member] | Real Estate [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 218 | 227 |
Digital Real Estate Services [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 17 | $ 21 |
Revenues - Summary of Deferred
Revenues - Summary of Deferred Revenue from Contract with Customers (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Deferred Revenue [Abstract] | ||
Balance—beginning of period | $ 428 | $ 510 |
Deferral of revenue | 821 | 595 |
Recognition of deferred revenue | (794) | (670) |
Other | (7) | 1 |
Balance—end of period | $ 448 | $ 436 |
Revenues - Summary of Deferre_2
Revenues - Summary of Deferred Revenue from Contract with Customers (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Deferred Revenue Arrangement [Line Items] | ||
Recognition of deferred revenue | $ 794 | $ 670 |
Deferred Revenue [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Recognition of deferred revenue | $ 266 | $ 357 |
Impairment and Restructuring _3
Impairment and Restructuring Charges - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Charges | $ 24 | $ 18 |
News and Information Services [Member] | ||
Restructuring Charges | 19 | $ 17 |
Non-cash impairment of goodwill and indefinite-lived intangible assets | 273 | |
Non-cash impairment charge of goodwill | 122 | |
Non-cash impairment charge for indefinite-lived intangible assets | $ 113 | |
News and Information Services [Member] | Maximum [Member] | ||
Discount rates | 17.00% | |
Long-term growth rates | 0.60% | |
News and Information Services [Member] | Minimum [Member] | ||
Discount rates | 18.50% | |
Long-term growth rates | 1.50% | |
Other Current Liabilities [Member] | ||
Restructuring liabilities, current | $ 23 | |
Other Noncurrent Liabilities [Member] | ||
Restructuring liabilities, non-current | $ 9 |
Impairment and Restructuring _4
Impairment and Restructuring Charges - Schedule of Changes in Restructuring Program Liabilities (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Liabilities, Beginning Balance | $ 40 | $ 42 |
Additions | 24 | 18 |
Payments | (29) | (24) |
Other | (3) | |
Restructuring Liabilities, Ending Balance | 32 | 36 |
One Time Employee Termination Benefits [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Liabilities, Beginning Balance | 28 | 29 |
Additions | 24 | 18 |
Payments | (29) | (23) |
Other | (1) | (1) |
Restructuring Liabilities, Ending Balance | 22 | 23 |
Facility Related Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Liabilities, Beginning Balance | 2 | 2 |
Other | (2) | |
Restructuring Liabilities, Ending Balance | 2 | |
Other Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Liabilities, Beginning Balance | 10 | 11 |
Payments | (1) | |
Other | 1 | |
Restructuring Liabilities, Ending Balance | $ 10 | $ 11 |
Investments - Schedule of Inves
Investments - Schedule of Investments (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 |
Schedule of Investments [Abstract] | ||
Equity method investments | $ 140 | $ 148 |
Equity securities | 189 | 187 |
Total Investments | $ 329 | $ 335 |
Investments - Schedule of Total
Investments - Schedule of Total Gains and Losses on Equity Securities (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule of Investments [Abstract] | ||
Total gains recognized on equity securities | $ 1 | $ 15 |
Unrealized gains recognized on equity securities held at end of period | $ 1 | $ 15 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule of Investments [Abstract] | ||
Equity losses of affiliates | $ (2) | $ (3) |
Borrowings - Schedule of Borrow
Borrowings - Schedule of Borrowings (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2019 | Jun. 30, 2019 | ||
Debt and Financial Instruments [Line Items] | |||
Total borrowings | $ 1,329 | $ 1,453 | |
Less: current portion | [1] | (622) | (449) |
Long-term borrowings | 707 | 1,004 | |
Credit Facility 2014 Tranche 2 [Member] | New Foxtel [Member] | |||
Debt and Financial Instruments [Line Items] | |||
Total borrowings | [2] | $ 135 | 56 |
Interest rate | [2] | 2.92% | |
Due date | [2] | Jan. 31, 2020 | |
Credit Facility 2015 [Member] | New Foxtel [Member] | |||
Debt and Financial Instruments [Line Items] | |||
Total borrowings | [2] | $ 271 | 281 |
Interest rate | [2] | 3.12% | |
Due date | [2] | Jul. 31, 2020 | |
Credit Facility 2016 [Member] | New Foxtel [Member] | |||
Debt and Financial Instruments [Line Items] | |||
Total borrowings | [2],[3] | $ 237 | 193 |
Interest rate | [2],[3] | 3.60% | |
Due date | [2],[3] | Sep. 11, 2021 | |
Working Capital Facility 2017 [Member] | New Foxtel [Member] | |||
Debt and Financial Instruments [Line Items] | |||
Total borrowings | [2],[3] | $ 54 | 56 |
Interest rate | [2],[3] | 3.27% | |
Due date | [2],[3] | Jul. 3, 2020 | |
US Private Placement 2009 Tranche 3 [Member] | New Foxtel [Member] | |||
Debt and Financial Instruments [Line Items] | |||
Total borrowings | [4] | 75 | |
Due date | [4] | Sep. 24, 2019 | |
US Private Placement 2012 USD Portion Tranche 1 [Member] | New Foxtel [Member] | |||
Debt and Financial Instruments [Line Items] | |||
Total borrowings | [4] | 150 | |
Due date | [4] | Jul. 25, 2019 | |
US Private Placement 2012 USD Portion Tranche 2 [Member] | New Foxtel [Member] | |||
Debt and Financial Instruments [Line Items] | |||
Total borrowings | [5] | $ 200 | 199 |
Interest rate | [5] | 4.27% | |
Due date | [5] | Jul. 25, 2022 | |
US Private Placement 2012 USD Portion Tranche 3 [Member] | New Foxtel [Member] | |||
Debt and Financial Instruments [Line Items] | |||
Total borrowings | [5] | $ 150 | 149 |
Interest rate | [5] | 4.42% | |
Due date | [5] | Jul. 25, 2024 | |
US Private Placement 2012 AUD Portion [Member] | New Foxtel [Member] | |||
Debt and Financial Instruments [Line Items] | |||
Total borrowings | $ 73 | 77 | |
Interest rate | 7.04% | ||
Due date | Jul. 25, 2022 | ||
Credit Facility Fiscal 2016 Tranche 3 [Member] | REA Group Inc [Member] | |||
Debt and Financial Instruments [Line Items] | |||
Total borrowings | [6] | $ 162 | 168 |
Interest rate | [6] | 2.30% | |
Due date | [6] | Dec. 31, 2019 | |
Credit Facility Fiscal 2018 [Member] | REA Group Inc [Member] | |||
Debt and Financial Instruments [Line Items] | |||
Total borrowings | [6] | $ 47 | $ 49 |
Interest rate | [6] | 2.06% | |
Due date | [6] | Apr. 27, 2021 | |
[1] | The Company classifies the current portion of long term debt as non-current liabilities on the Balance Sheets when it has the intent and ability to refinance the obligation on a long-term basis, in accordance with ASC 470-50 “Debt.” | ||
[2] | Borrowings under these facilities bear interest at a floating rate of Australian BBSY plus an applicable margin of between 1.20% and 2.70% per annum payable quarterly. | ||
[3] | As of September 30, 2019, the Foxtel Debt Group has undrawn commitments of $41 million under these facilities for which it pays a commitment fee of 45% of the applicable margin. | ||
[4] | During the three months ended September 30, 2019, certain subsidiaries of Foxtel (together with Foxtel, the “Foxtel Debt Group”) repaid $150 million aggregate principal amount of senior unsecured notes maturing in July 2019 and $75 million aggregate principal amount of senior unsecured notes maturing in September 2019. | ||
[5] | The carrying value of the borrowings include any fair value adjustments related to the Company’s fair value hedges. See Note 8—Financial Instruments and Fair Value Measurements. | ||
[6] | Borrowings under these facilities bear interest at a floating rate of the Australian BBSY plus a margin of between 0.85% and 1.45% depending on REA Group’s net leverage ratio. As of September 30, 2019, REA Group was paying a margin of between 0.85% and 1.05%. |
Borrowings - Schedule of Borr_2
Borrowings - Schedule of Borrowings (Parenthetical) (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Jul. 31, 2019 | Sep. 30, 2019 |
Debt and Financial Instruments [Line Items] | |||
Undrawn commitments | $ 41 | $ 41 | |
Minimum [Member] | Australian BBSY [Member] | |||
Debt and Financial Instruments [Line Items] | |||
Interest rate margin | 1.20% | ||
Maximum [Member] | Australian BBSY [Member] | |||
Debt and Financial Instruments [Line Items] | |||
Interest rate margin | 2.70% | ||
REA Group [Member] | Minimum [Member] | |||
Debt and Financial Instruments [Line Items] | |||
Interest rate margin | 0.85% | ||
REA Group [Member] | Minimum [Member] | Australian BBSY [Member] | |||
Debt and Financial Instruments [Line Items] | |||
Interest rate margin | 0.85% | ||
REA Group [Member] | Maximum [Member] | |||
Debt and Financial Instruments [Line Items] | |||
Interest rate margin | 1.05% | ||
REA Group [Member] | Maximum [Member] | Australian BBSY [Member] | |||
Debt and Financial Instruments [Line Items] | |||
Interest rate margin | 1.45% | ||
New Foxtel [Member] | |||
Debt and Financial Instruments [Line Items] | |||
Percentage of applicable margin payable as commitment fee | 45.00% | ||
US Private Placement 2012 USD Portion Tranche 1 [Member] | New Foxtel [Member] | |||
Debt and Financial Instruments [Line Items] | |||
Repayments of lines of credit | $ 150 | ||
US Private Placement 2009 Tranche 3 [Member] | New Foxtel [Member] | |||
Debt and Financial Instruments [Line Items] | |||
Repayments of lines of credit | $ 75 |
Leases - Schedule of total leas
Leases - Schedule of total lease cost for operating leases (Detail) $ in Millions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Total lease costs | $ 62 |
Selling, general and administrative [Member] | |
Operating lease costs | 48 |
Variable Lease costs | 9 |
Operating Expense [Member] | |
Operating lease costs | 3 |
Short term lease costs | $ 2 |
Leases - Schedule of Additional
Leases - Schedule of Additional Information Related To Operating Lease (Detail) - Accounting Standards Update 2016-02 [Member] $ in Millions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Weighted-average remaining lease term | 11 years 4 months 24 days |
Weighted-average incremental borrowing rate | 3.25% |
Cash paid—Operating lease liabilities | $ 57 |
Operating lease right-of-use asset obtained in exchange for operating lease liabilities | $ 225 |
Leases - Schedule of Future min
Leases - Schedule of Future minimum lease payments under non-cancellable leases (Detail) $ in Millions | Sep. 30, 2019USD ($) |
Fiscal 2020 (nine months remaining) | $ 174 |
Fiscal 2021 | 201 |
Fiscal 2022 | 199 |
Fiscal 2023 | 188 |
Fiscal 2024 | 172 |
Thereafter | 934 |
Total future minimum lease payments | 1,868 |
Less: interest | 357 |
Present value of minimum payments | $ 1,511 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | Jul. 01, 2019 | Sep. 30, 2019 |
Operating lease right of use assets | $ 1,290 | |
Short term lease term | 12 months | |
Operating lease liabilities non current | $ 1,329 | |
Accounting Standards Update 2016-02 [Member] | ||
Operating lease right of use assets | $ 1,400 | |
Operating lease liabilities,current | 200 | |
Operating lease liabilities non current | 1,400 | |
Adjustment to retained earnings | $ 9 |
Equity - Summary of Changes in
Equity - Summary of Changes in Equity (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Changes In Equity [Line Items] | ||
Beginning balance | $ 10,311 | $ 10,477 |
Cumulative impact from adoption of new standards | 9 | 20 |
Net (loss) income | (211) | 128 |
Other comprehensive loss | (188) | (103) |
Dividends | (81) | (82) |
Other | (11) | (10) |
Ending balance | $ 9,829 | 10,430 |
Class A Common Stock [Member] | ||
Changes In Equity [Line Items] | ||
Beginning balance, shares | 385,580,015 | |
Ending balance, shares | 388,492,158 | |
Class B Common Stock [Member] | ||
Changes In Equity [Line Items] | ||
Beginning balance, shares | 199,630,240 | |
Ending balance, shares | 199,630,240 | |
Common Stock [Member] | Class A Common Stock [Member] | ||
Changes In Equity [Line Items] | ||
Beginning balance | $ 4 | $ 4 |
Beginning balance, shares | 386,000,000 | 383,000,000 |
Other, Shares | 2,000,000 | 2,000,000 |
Ending balance | $ 4 | $ 4 |
Ending balance, shares | 388,000,000 | 385,000,000 |
Common Stock [Member] | Class B Common Stock [Member] | ||
Changes In Equity [Line Items] | ||
Beginning balance | $ 2 | $ 2 |
Beginning balance, shares | 200,000,000 | 200,000,000 |
Ending balance | $ 2 | $ 2 |
Ending balance, shares | 200,000,000 | 200,000,000 |
Additional Paid-in Capital [Member] | ||
Changes In Equity [Line Items] | ||
Beginning balance | $ 12,243 | $ 12,322 |
Dividends | (59) | (59) |
Other | (10) | (6) |
Ending balance | 12,174 | 12,257 |
Accumulated Deficit [Member] | ||
Changes In Equity [Line Items] | ||
Beginning balance | (1,979) | (2,163) |
Cumulative impact from adoption of new standards | 6 | 32 |
Net (loss) income | (227) | 101 |
Other | (2) | |
Ending balance | (2,200) | (2,032) |
Accumulated Other Comprehensive Loss [Member] | ||
Changes In Equity [Line Items] | ||
Beginning balance | (1,126) | (874) |
Cumulative impact from adoption of new standards | 3 | (22) |
Other comprehensive loss | (143) | (75) |
Other | 1 | |
Ending balance | (1,266) | (970) |
Total News Corporation Equity | ||
Changes In Equity [Line Items] | ||
Beginning balance | 9,144 | 9,291 |
Cumulative impact from adoption of new standards | 9 | 10 |
Net (loss) income | (227) | 101 |
Other comprehensive loss | (143) | (75) |
Dividends | (59) | (59) |
Other | (10) | (7) |
Ending balance | 8,714 | 9,261 |
Noncontrolling Interest [Member] | ||
Changes In Equity [Line Items] | ||
Beginning balance | 1,167 | 1,186 |
Cumulative impact from adoption of new standards | 10 | |
Net (loss) income | 16 | 27 |
Other comprehensive loss | (45) | (28) |
Dividends | (22) | (23) |
Other | (1) | (3) |
Ending balance | $ 1,115 | $ 1,169 |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | Nov. 01, 2019 | Aug. 31, 2019 | Aug. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | May 31, 2013 |
Class of Stock [Line Items] | ||||||
Cash dividends per common share, date of dividend payable | Oct. 16, 2019 | Oct. 17, 2018 | ||||
Cash dividends per common share, date of record for dividend | Sep. 11, 2019 | Sep. 12, 2018 | ||||
Class A Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Aggregate amount of shares authorized to be repurchased | $ 500,000,000 | |||||
Shares Repurchased During period | 0 | 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 | |||||
Remaining authorized amount under stock repurchase program | $ 429,000,000 | |||||
Aggregate cost of shares repurchased | $ 71,000,000 | |||||
Class B Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Shares Repurchased During period | 0 | 0 | ||||
Cash dividends declared per share of common stock | $ 0.10 | $ 0.10 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Summary of Assets and Liabilities Measured At Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 |
Assets: | ||
Equity securities | $ 189 | $ 187 |
Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Equity securities | 189 | 187 |
Total assets | 305 | 345 |
Liabilities: | ||
Mandatorily redeemable noncontrolling interests | 11 | |
Total liabilities | 38 | 49 |
Fair Value, Measurements, Recurring [Member] | Foreign Currency Derivatives [Member] | Cash Flow Hedging [Member] | ||
Assets: | ||
Derivative assets | 1 | |
Fair Value, Measurements, Recurring [Member] | Cross Currency Interest Rate Derivatives [Member] | Fair Value Hedging [Member] | ||
Assets: | ||
Derivative assets | 23 | 29 |
Fair Value, Measurements, Recurring [Member] | Cross Currency Interest Rate Derivatives [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | ||
Assets: | ||
Derivative assets | 12 | |
Fair Value, Measurements, Recurring [Member] | Cross Currency Interest Rate Derivatives [Member] | Cash Flow Hedging [Member] | ||
Assets: | ||
Derivative assets | 93 | 116 |
Liabilities: | ||
Derivative liabilities | 19 | 18 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member] | ||
Liabilities: | ||
Derivative liabilities | 19 | 20 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Assets: | ||
Equity securities | 77 | 74 |
Total assets | 77 | 74 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Assets: | ||
Total assets | 116 | 158 |
Liabilities: | ||
Total liabilities | 38 | 38 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Foreign Currency Derivatives [Member] | Cash Flow Hedging [Member] | ||
Assets: | ||
Derivative assets | 1 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Cross Currency Interest Rate Derivatives [Member] | Fair Value Hedging [Member] | ||
Assets: | ||
Derivative assets | 23 | 29 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Cross Currency Interest Rate Derivatives [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | ||
Assets: | ||
Derivative assets | 12 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Cross Currency Interest Rate Derivatives [Member] | Cash Flow Hedging [Member] | ||
Assets: | ||
Derivative assets | 93 | 116 |
Liabilities: | ||
Derivative liabilities | 19 | 18 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member] | ||
Liabilities: | ||
Derivative liabilities | 19 | 20 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Assets: | ||
Equity securities | 112 | 113 |
Total assets | $ 112 | 113 |
Liabilities: | ||
Mandatorily redeemable noncontrolling interests | 11 | |
Total liabilities | $ 11 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements - Summary of Equity Securities Classified as Level 3 (Detail) - Equity Securities [Member] - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance - beginning of period | $ 113 | $ 127 |
Purchases | 0 | 5 |
Sales | (10) | |
Foreign exchange and other | (1) | (7) |
Balance - end of period | $ 112 | $ 115 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements - Summary of Mandatorily Redeemable Noncontrolling Interest Liabilities Classified Level 3 (Detail) - Financial Instruments Subject To Mandatory Redemption Settlement Terms Share Value [Member] - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance - beginning of period | $ 12 | $ 12 |
Payments | (11) | 0 |
Other | $ (1) | |
Balance - end of period | $ 12 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements - Summary of Mandatorily Redeemable Noncontrolling Interest Liabilities Classified Level 3 (Parenthetical) (Detail) - R E A Group Limited [Member] - Smartline Home Loans Pty Limited [Member] $ in Millions | Jul. 01, 2019AUD ($) |
Remaining percentage of minority interest | 19.70% |
Business acquisition, cost of acquired entity, cash paid | $ 11 |
Ownership percentage | 100.00% |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Measurements - Summary of Hedges Classified as Current or Non-Current in Balance Sheets Based on Maturity Dates (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 |
Foreign Currency Derivatives [Member] | Cash Flow Hedging [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, reported under other current assets | $ 1 | |
Cross Currency Interest Rate Derivatives [Member] | Cash Flow Hedging [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, reported under other current assets | 33 | |
Derivatives, reported under other non-current assets | $ 93 | 83 |
Derivatives, reported under other non-current liabilities | (19) | (18) |
Cross Currency Interest Rate Derivatives [Member] | Fair Value Hedging [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, reported under other current assets | 8 | |
Derivatives, reported under other non-current assets | 23 | 21 |
Cross Currency Interest Rate Derivatives [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, reported under other current assets | 12 | |
Interest Rate Contract [Member] | Cash Flow Hedging [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, reported under other current liabilities | (1) | (2) |
Derivatives, reported under other non-current liabilities | $ (18) | $ (18) |
Financial Instruments and Fai_8
Financial Instruments and Fair Value Measurements - Additional Information (Detail) $ in Millions, $ in Millions | 3 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2019AUD ($) | Jun. 30, 2019USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill carrying value | $ 4,885 | $ 5,147 | |
News America Marketing [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Non-cash impairment charge of goodwill | 122 | ||
Non-cash impairment charge for indefinite-lived intangible assets | 113 | ||
Goodwill carrying value | 0 | 122 | |
Indefinite-lived intangible assets carrying value | 195 | $ 308 | |
Foreign Exchange Contract [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimates of net derivative gains related to cash flow hedges included in Accumulated other comprehensive loss | 0 | ||
Cross Currency Interest Rate Contract [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimates of net derivative gains related to cash flow hedges included in Accumulated other comprehensive loss | 0 | ||
Interest Rate Swap [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimates of net derivative gains related to cash flow hedges included in Accumulated other comprehensive loss | 0 | ||
Cash Flow Hedging [Member] | Accounting Standards Update 2017-12 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Reclassification of gain from AOCI | 5 | ||
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notional value of derivative | 79 | ||
Cash Flow Hedging [Member] | Cross Currency Interest Rate Contract [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notional value of derivative | $ 280 | ||
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notional value of derivative | 500 | ||
Fair Value Hedging [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notional value of derivative | $ 70 | ||
Fair Value Hedging [Member] | Accounting Standards Update 2017-12 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amount recognized in earnings for ineffective portion of derivative instruments designated as cash flow hedges | 0 | ||
Adjustments increased the carrying value of long-term debt | $ 1 |
Financial Instruments and Fai_9
Financial Instruments and Fair Value Measurements - Schedule of Fair Value Hedging Relationship By Balance Sheet (Detail) - Borrowings [Member] $ in Millions | Sep. 30, 2019USD ($) |
Carrying amount of hedged item | $ 69 |
Cumulative hedging adjustments included in the carrying amount | $ (3) |
Financial Instruments and Fa_10
Financial Instruments and Fair Value Measurements - Summary of Derivative Instruments Designated as Cash Flow Hedges (Detail) - Cash Flow Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (loss) recognized in Accumulated Other Comprehensive Loss | $ 0 | $ (13) |
(Gain) loss reclassified from Accumulated Other Comprehensive Loss | (17) | 15 |
Foreign Currency Derivatives [Member] | Operating Expense [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (loss) recognized in Accumulated Other Comprehensive Loss | (1) | 2 |
(Gain) loss reclassified from Accumulated Other Comprehensive Loss | (2) | (1) |
Cross Currency Interest Rate Derivatives [Member] | Interest (Expense) Income, Net [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (loss) recognized in Accumulated Other Comprehensive Loss | 5 | (14) |
(Gain) loss reclassified from Accumulated Other Comprehensive Loss | (9) | 14 |
Interest rate derivatives [Member] | Interest (Expense) Income, Net [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (loss) recognized in Accumulated Other Comprehensive Loss | (4) | (1) |
(Gain) loss reclassified from Accumulated Other Comprehensive Loss | $ (6) | $ 2 |
(Loss) Earnings Per Share - Com
(Loss) Earnings Per Share - Computation of Basic And Diluted Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Earnings Per Share [Abstract] | |||
Net (loss) income | $ (211) | $ 128 | |
Less: Net income attributable to noncontrolling interests | (16) | (27) | |
Net (loss) income attributable to News Corporation stockholders | $ (227) | $ 101 | |
Weighted-average number of shares of common stock outstanding - basic | 586.7 | 583.9 | |
Dilutive effect of equity awards | [1] | 1.7 | |
Weighted-average number of shares of common stock outstanding - diluted | 586.7 | 585.6 | |
Net (loss) income attributable to News Corporation stockholders per share - basic and diluted | $ (0.39) | $ 0.17 | |
[1] | The dilutive impact of the Company’s performance stock units, restricted stock units and stock options has been excluded from the calculation of diluted loss per share for the three months ended September 30, 2019 because their inclusion would have an antidilutive effect on the net loss per share. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Loss Contingencies [Line Items] | |||
Other current assets | $ 416 | $ 515 | |
U.K. Newspaper Matters [Member] | |||
Loss Contingencies [Line Items] | |||
Selling, general and administrative expenses, net | 2 | $ 2 | |
Litigation liability accrued | 52 | ||
U.K. Newspaper Matters Indemnification [Member] | 21st Century Fox [Member] | |||
Loss Contingencies [Line Items] | |||
Other current assets | $ 62 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Contingency [Line Items] | ||
Income tax expense (benefit), net | $ (21) | $ 50 |
Income before income tax benefit (loss) | (232) | 178 |
Gross income tax paid | 27 | 29 |
Income tax refunds | $ 3 | $ 10 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Sep. 30, 2019BrandItemCountrySegment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | Segment | 5 |
Foxtel [Member] | |
Segment Reporting Information [Line Items] | |
Company ownership percentage | 65.00% |
Foxtel [Member] | Telstra [Member] | |
Segment Reporting Information [Line Items] | |
Ownership interest held by minority interest | 35.00% |
Digital Real Estate Services [Member] | Move Inc [Member] | |
Segment Reporting Information [Line Items] | |
Company ownership percentage | 80.00% |
Digital Real Estate Services [Member] | Move Inc [Member] | REA Group Inc [Member] | |
Segment Reporting Information [Line Items] | |
Ownership interest held by minority interest | 20.00% |
Digital Real Estate Services [Member] | REA Group Inc [Member] | |
Segment Reporting Information [Line Items] | |
Company ownership percentage | 61.60% |
Book Publishing [Member] | |
Segment Reporting Information [Line Items] | |
Number of countries | Country | 17 |
Book Publishing [Member] | Minimum [Member] | |
Segment Reporting Information [Line Items] | |
Number of branded publishing imprints | Brand | 120 |
Subscription Video Services [Member] | Foxtel [Member] | |
Segment Reporting Information [Line Items] | |
Company ownership percentage | 65.00% |
Subscription Video Services [Member] | Foxtel [Member] | Telstra [Member] | |
Segment Reporting Information [Line Items] | |
Ownership interest held by minority interest | 35.00% |
Subscription Video Services [Member] | Minimum [Member] | Foxtel [Member] | |
Segment Reporting Information [Line Items] | |
Number of channels | Item | 200 |
Segment Information - Reconcili
Segment Information - Reconciliation of Revenue and Segment EBITDA from Segments to Consolidated (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 2,340 | $ 2,524 |
Depreciation and amortization | (162) | (163) |
Impairment and restructuring charges | (297) | (18) |
Equity losses of affiliates | (2) | (3) |
Interest income (expense), net | 4 | (16) |
Other, net | 4 | 20 |
(Loss) income before income tax benefit (expense) | (232) | 178 |
Income tax benefit (expense) | 21 | (50) |
Net (loss) income | (211) | 128 |
News and Information Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,149 | 1,248 |
Total Segment EBITDA | 56 | 109 |
Subscription Video Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 514 | 565 |
Total Segment EBITDA | 81 | 113 |
Book Publishing [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 405 | 418 |
Total Segment EBITDA | 49 | 68 |
Digital Real Estate Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 272 | 293 |
Total Segment EBITDA | 82 | 105 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Segment EBITDA | $ (47) | $ (37) |
Segment Information - Reconci_2
Segment Information - Reconciliation of Assets from Segments to Consolidated (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Investments | $ 329 | $ 335 | |
Total assets | 16,233 | 15,711 | |
News and Information Services [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 5,580 | 5,482 | |
Subscription Video Services [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 4,585 | 4,406 | |
Book Publishing [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 2,174 | 2,074 | |
Digital Real Estate Services [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 2,224 | 2,229 | |
Other [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 1,341 | $ 1,185 | [1] |
[1] | The Other segment primarily includes Cash and cash equivalents. |
Segment Information - Reconci_3
Segment Information - Reconciliation of Goodwill and Intangible Assets from Segments to Consolidated (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 |
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | $ 7,124 | $ 7,573 |
News and Information Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | 2,325 | 2,617 |
Subscription Video Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | 2,487 | 2,595 |
Book Publishing [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | 755 | 772 |
Digital Real Estate Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | $ 1,557 | $ 1,589 |
Additional Financial Informat_3
Additional Financial Information - Components of Receivables, Net (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 |
Receivables [Abstract] | ||
Receivables | $ 1,593 | $ 1,590 |
Allowance for doubtful accounts | (53) | (46) |
Receivables, net | $ 1,540 | $ 1,544 |
Additional Financial Informat_4
Additional Financial Information - Components of Other Non-Current Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | |
Assets, Noncurrent [Abstract] | |||
Royalty advances to authors | $ 347 | $ 343 | |
Retirement benefit assets | 122 | 117 | |
Inventory | [1] | 161 | 155 |
Other | 323 | 315 | |
Total Other non-current assets | $ 953 | $ 930 | |
[1] | Primarily consists of the non-current portion of programming rights. |
Additional Financial Informat_5
Additional Financial Information - Components of Other Current Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 |
Other Current Liabilities [Line Items] | ||
Total Other current liabilities | $ 849 | $ 724 |
Other Current Liabilities [Member] | ||
Other Current Liabilities [Line Items] | ||
Royalties and commissions payable | 229 | 211 |
Current operating lease liabilities | 182 | 0 |
Allowance for sales returns | 176 | 192 |
Current tax payable | 21 | 22 |
Other | 241 | 299 |
Total Other current liabilities | $ 849 | $ 724 |
Additional Financial Informat_6
Additional Financial Information - Components of Other, Net Included in Statement of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Other Income and Expenses [Line Items] | |||
Remeasurement of equity securities | $ 1 | $ 15 | |
Total Other, net | 4 | 20 | |
Nonoperating Income (Expense) [Member] | |||
Other Income and Expenses [Line Items] | |||
Remeasurement of equity securities | 1 | 15 | |
Other | [1] | 3 | 5 |
Total Other, net | $ 4 | $ 20 | |
[1] | As a result of the adoption of ASU 2017-07 during the first quarter of fiscal 2019, the Company has included the other non-service cost components of net periodic benefit cost (income) in Other, net in the Statements of Operations for the three months ended September 30, 2019 and 2018. |
Additional Financial Informat_7
Additional Financial Information - Summary of Supplemental Cash Flow Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Supplemental Cash Flow Information [Abstract] | ||
Cash paid for interest | $ 16 | $ 23 |
Cash paid for taxes | $ 27 | $ 29 |