Cover Page
Cover Page - shares | 9 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-35769 | |
Entity Registrant Name | NEWS CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-2950970 | |
Entity Address, Address Line One | 1211 Avenue of the Americas | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10036 | |
City Area Code | 212 | |
Local Phone Number | 416-3400 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Entity Central Index Key | 0001564708 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --06-30 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A Common Stock, par value $0.01 per share | |
Trading Symbol | NWSA | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 391,181,517 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class B Common Stock, par value $0.01 per share | |
Trading Symbol | NWS | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 199,630,240 | |
Preferred Stock Class A [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A Preferred Stock Purchase Rights | |
No Trading Symbol Flag | true | |
Security Exchange Name | NASDAQ | |
Preferred Stock Class B [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class B Preferred Stock Purchase Rights | |
No Trading Symbol Flag | true | |
Security Exchange Name | NASDAQ |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||||
Total Revenues | $ 2,335 | $ 2,266 | $ 6,866 | $ 7,085 |
Operating expenses | (1,186) | (1,283) | (3,548) | (3,972) |
Selling, general and administrative | (851) | (741) | (2,255) | (2,295) |
Depreciation and amortization | (173) | (160) | (504) | (484) |
Impairment and restructuring charges | (30) | (1,125) | (93) | (1,451) |
Equity losses of affiliates | (5) | (7) | (9) | (12) |
Interest expense, net | (12) | (9) | (32) | (13) |
Other, net | 61 | 13 | 132 | 19 |
Income (loss) before income tax (expense) benefit | 139 | (1,046) | 557 | (1,123) |
Income tax (expense) benefit | (43) | 10 | (153) | (21) |
Net income (loss) | 96 | (1,036) | 404 | (1,144) |
Less: Net (income) loss attributable to noncontrolling interests | (17) | 306 | (60) | 272 |
Net income (loss) attributable to News Corporation stockholders | $ 79 | $ (730) | $ 344 | $ (872) |
Net income (loss) attributable to News Corporation stockholders per share: | ||||
Net income (loss) attributable to News Corporation stockholders per share, basic and diluted (in dollars per share) | $ 0.13 | $ (1.24) | $ 0.58 | $ (1.48) |
Circulation and subscription | ||||
Revenues: | ||||
Total Revenues | $ 1,076 | $ 966 | $ 3,108 | $ 2,951 |
Advertising | ||||
Revenues: | ||||
Total Revenues | 374 | 576 | 1,154 | 1,861 |
Consumer | ||||
Revenues: | ||||
Total Revenues | 472 | 396 | 1,436 | 1,204 |
Real estate | ||||
Revenues: | ||||
Total Revenues | 291 | 209 | 807 | 669 |
Other | ||||
Revenues: | ||||
Total Revenues | $ 122 | $ 119 | $ 361 | $ 400 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income (loss) | $ 96 | $ (1,036) | $ 404 | $ (1,144) | |
Other comprehensive income (loss): | |||||
Foreign currency translation adjustments | 28 | (484) | 450 | (470) | |
Net change in the fair value of cash flow hedges | [1] | 0 | 9 | (2) | (5) |
Benefit plan adjustments, net | [2] | 1 | 15 | 2 | 13 |
Other comprehensive income (loss) | 29 | (460) | 450 | (462) | |
Comprehensive income (loss) | 125 | (1,496) | 854 | (1,606) | |
Less: Net (income) loss attributable to noncontrolling interests | (17) | 306 | (60) | 272 | |
Less: Other comprehensive (income) loss attributable to noncontrolling interests | [3] | (4) | 109 | (84) | 118 |
Comprehensive income (loss) attributable to News Corporation stockholders | $ 104 | $ (1,081) | $ 710 | $ (1,216) | |
[1] | Net of income tax expense of nil and $3 million for the three months ended March 31, 2021 and 2020, respectively, and income tax expense of nil for the nine months ended March 31, 2021 and 2020. | ||||
[2] | Net of income tax expense of nil and $5 million for three months ended March 31, 2021 and 2020, respectively, and income tax expense of nil and $4 million for the nine months ended March 31, 2021 and 2020, respectively. | ||||
[3] | Primarily consists of foreign currency translation adjustment. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net change in the fair value of cash flow hedges, income tax expense | $ 0 | $ 3 | $ 0 | $ 0 |
Benefit plan adjustments, income tax expense | $ 0 | $ 5 | $ 0 | $ 4 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 | |
Current assets: | |||
Cash and cash equivalents | $ 1,974 | $ 1,517 | |
Receivables, net | 1,335 | 1,203 | |
Inventory, net | 246 | 348 | |
Other current assets | 388 | 393 | |
Total current assets | 3,943 | 3,461 | |
Non-current assets: | |||
Investments | 391 | 297 | |
Property, plant and equipment, net | 2,261 | 2,256 | |
Operating lease right-of-use assets | 1,062 | 1,061 | |
Intangible assets, net | 1,915 | 1,864 | |
Goodwill | 4,304 | 3,951 | |
Deferred income tax assets | 302 | 332 | |
Other non-current assets | 1,219 | 1,039 | |
Total assets | 15,397 | 14,261 | |
Current liabilities: | |||
Accounts payable | 336 | 351 | |
Accrued expenses | 1,249 | 1,019 | |
Deferred revenue | 449 | 398 | |
Current borrowings | [1] | 212 | 76 |
Other current liabilities | 923 | 838 | |
Total current liabilities | 3,169 | 2,682 | |
Non-current liabilities: | |||
Borrowings | 1,000 | 1,183 | |
Retirement benefit obligations | 251 | 277 | |
Deferred income tax liabilities | 334 | 258 | |
Operating lease liabilities | 1,146 | 1,146 | |
Other non-current liabilities | 368 | 326 | |
Commitments and contingencies | |||
Additional paid-in capital | 12,044 | 12,148 | |
Accumulated deficit | (2,897) | (3,241) | |
Accumulated other comprehensive loss | (965) | (1,331) | |
Total News Corporation stockholders’ equity | 8,188 | 7,582 | |
Noncontrolling interests | 941 | 807 | |
Total equity | 9,129 | 8,389 | |
Total liabilities and equity | 15,397 | 14,261 | |
Class A Common Stock | |||
Non-current liabilities: | |||
Common stock | [2] | 4 | 4 |
Class B Common Stock | |||
Non-current liabilities: | |||
Common stock | [3] | $ 2 | $ 2 |
[1] | The Company classifies the current portion of long term debt as non-current liabilities on the Balance Sheets when it has the intent and ability to refinance the obligation on a long-term basis, in accordance with ASC 470-50 “Debt.” $29 million relates to the current portion of finance lease liabilities. | ||
[2] | Class A common stock , $0.01 par value per share (“Class A Common Stock”), 1,500,000,000 shares authorized, 391,154,191 and 388,922,752 shares issued and outstanding, net of 27,368,413 treasury shares at par at March 31, 2021 and June 30, 2020, respectively. | ||
[3] | Class B common stock , $0.01 par value per share (“Class B Common Stock”), 750,000,000 shares authorized, 199,630,240 shares issued and outstanding, net of 78,430,424 treasury shares at par at March 31, 2021 and June 30, 2020, respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Jun. 30, 2020 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued, net of treasury stock | 391,154,191 | 388,922,752 |
Common stock outstanding, net of treasury stock | 391,154,191 | 388,922,752 |
Common stock, treasury shares | 27,368,413 | 27,368,413 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued, net of treasury stock | 199,630,240 | 199,630,240 |
Common stock outstanding, net of treasury stock | 199,630,240 | 199,630,240 |
Common stock, treasury shares | 78,430,424 | 78,430,424 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating activities: | ||
Net income (loss) | $ 404 | $ (1,144) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 504 | 484 |
Operating lease expense | 96 | 128 |
Equity losses of affiliates | 9 | 12 |
Cash distributions received from affiliates | 14 | 7 |
Impairment charges | 0 | 1,398 |
Other, net | (132) | (19) |
Deferred income taxes and taxes payable | 33 | (67) |
Change in operating assets and liabilities, net of acquisitions: | ||
Receivables and other assets | (67) | (1,593) |
Inventories, net | (21) | (47) |
Accounts payable and other liabilities | 220 | 1,303 |
Net cash provided by operating activities | 1,060 | 462 |
Investing activities: | ||
Capital expenditures | (253) | (335) |
Acquisitions, net of cash acquired | (91) | (2) |
Investments in equity affiliates and other | (25) | |
Investments in equity affiliates and other | 4 | |
Proceeds from property, plant and equipment and other asset dispositions | 24 | 3 |
Other, net | (1) | 3 |
Net cash used in investing activities | (346) | (327) |
Financing activities: | ||
Borrowings | 165 | 925 |
Repayment of borrowings | (326) | (1,161) |
Dividends paid | (104) | (100) |
Other, net | (64) | (5) |
Net cash used in financing activities | (329) | (341) |
Net change in cash and cash equivalents, including cash classified within current assets held for sale | 385 | (206) |
Less: Net change in cash classified within current assets held for sale | 0 | (10) |
Cash and cash equivalents, beginning of period | 1,517 | 1,643 |
Exchange movement on opening cash balance | 72 | (39) |
Cash and cash equivalents, end of period | $ 1,974 | $ 1,388 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION News Corporation (together with its subsidiaries, “News Corporation,” “News Corp,” the “Company,” “we” or “us”) is a global diversified media and information services company comprised of businesses across a range of media, including: digital real estate services, subscription video services in Australia, news and information services and book publishing. During the fourth quarter of fiscal 2020, in connection with the Company's sale of its News America Marketing reporting unit and its annual review of its reportable segments, the Company determined to disaggregate its Dow Jones operating segment as a separate reportable segment in accordance with Accounting Standard Codification (“ASC”) 280, “Segment Reporting.” Previously, the financial information for this operating segment was aggregated with the businesses within the News Media operating segment and, together, formed the News and Information Services reportable segment. Following the sale of its News America Marketing business in the fourth quarter of fiscal 2020 and in conjunction with the Company’s annual budgeting process, the Company determined that aggregation was no longer appropriate as certain of the remaining businesses no longer shared similar economic characteristics. As a result, the Company has revised its historical disclosures for the prior periods to reflect the new Dow Jones and News Media reportable segments. Basis of Presentation The accompanying unaudited consolidated financial statements of the Company, which are referred to herein as the “Consolidated Financial Statements,” have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments consisting only of normal recurring adjustments necessary for a fair presentation have been reflected in these Consolidated Financial Statements. Operating results for the interim period presented are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2021. The preparation of the Company’s Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts that are reported in the Consolidated Financial Statements and accompanying disclosures. The business and economic uncertainty resulting from the impacts of the ongoing novel coronavirus (“COVID-19”) pandemic has been considered in making those estimates and assumptions. Actual results could differ from those estimates. Intercompany transactions and balances have been eliminated. Equity investments in which the Company exercises significant influence but does not exercise control and is not the primary beneficiary are accounted for using the equity method. Investments in which the Company is not able to exercise significant influence over the investee are measured at fair value, if the fair value is readily determinable. If an investment’s fair value is not readily determinable, the Company will measure the investment at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. The consolidated statements of operations are referred to herein as the “Statements of Operations.” The consolidated balance sheets are referred to herein as the “Balance Sheets.” The consolidated statements of cash flows are referred to herein as the “Statements of Cash Flows.” The accompanying Consolidated Financial Statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2020 as filed with the Securities and Exchange Commission (the “SEC”) on August 11, 2020 (the “2020 Form 10-K”). Certain reclassifications have been made to the prior period consolidated financial statements to conform to the current year presentation. Specifically, the Company reclassified certain costs at the Other segment that were previously included within Selling, general and administrative to Operating expenses. For the three and nine months ended March 31, 2020, these reclassifications increased Operating expenses by $2 million and $4 million, respectively. The Company’s fiscal year ends on the Sunday closest to June 30. Fiscal 2021 and fiscal 2020 include 52 weeks. All references to the three and nine months ended March 31, 2021 and 2020 relate to the three and nine months ended March 28, 2021 and March 29, 2020, respectively. For convenience purposes, the Company continues to date its Consolidated Financial Statements as of March 31. Recently Issued Accounting Pronouncements Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). The amendments in ASU 2016-13 require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The Company adopted the amendments in ASU 2016-13 on a modified retrospective basis as of July 1, 2020 and the adoption did not have a material effect on the Company's Consolidated Financial Statements. The Company will continue to actively monitor the impact of COVID-19 on expected credit losses. Allowance for doubtful accounts is calculated by pooling receivables with similar credit risks such as the level of delinquency, types of products or services and geographical locations and reflects the Company’s expected credit losses based on historical experience as well as current and expected economic conditions. Refer to Note 13—Additional Financial Information for further discussion. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 removes, modifies and adds certain disclosure requirements in Topic 820, “Fair Value Measurement.” ASU 2018-13 eliminates certain disclosures related to transfers and the valuation process, modifies disclosures for investments that are valued based on net asset value, clarifies the measurement uncertainty disclosure, and requires additional disclosures for Level 3 fair value measurements. The Company adopted the amendments to disclosure requirements in ASU 2018-13 on a prospective basis as of July 1, 2020. The adoption did not have a material effect on the Company's Consolidated Financial Statements. In March 2019, the FASB issued ASU 2019-02, “Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20) and Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350): Improvements to Accounting for Costs of Films and License Agreements for Program Materials (a consensus of the Emerging Issues Task Force)” (“ASU 2019-02”). The amendments in ASU 2019-02 align the impairment model in Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350) with the fair value model in Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20). The Company adopted the amendments in ASU 2019-02 on a prospective basis as of July 1, 2020. The adoption did not have a material effect on the Company's Consolidated Financial Statements. Refer to Note 13—Additional Financial Information for further discussion. Issued In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). The amendments in ASU 2019-12 remove certain exceptions to the general principles in Topic 740 and simplify other areas of Topic 740 including the accounting for and recognition of intraperiod tax allocation, deferred tax liabilities for outside basis differences for certain foreign subsidiaries, year-to-date losses in interim periods, deferred tax assets for goodwill in business combinations and franchise taxes in income tax expense. ASU 2019-12 is effective for the Company for annual and interim reporting periods beginning July 1, 2021, with early adoption permitted. The Company is currently evaluating the impact ASU 2019-12 will have on its Consolidated Financial Statements. |
Revenues
Revenues | 9 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | REVENUES The following tables present the Company’s disaggregated revenues by type and segment for the three and nine months ended March 31, 2021 and 2020: For the three months ended March 31, 2021 Digital Real Subscription Dow Jones Book News Media Other Total (in millions) Revenues: Circulation and subscription $ 6 $ 469 $ 329 $ — $ 272 $ — $ 1,076 Advertising 31 46 85 — 212 — 374 Consumer — — — 472 — — 472 Real estate 291 — — — — — 291 Other 23 8 7 18 66 — 122 Total Revenues $ 351 $ 523 $ 421 $ 490 $ 550 $ — $ 2,335 For the three months ended March 31, 2020 Digital Real Subscription Dow Jones Book News Media Other Total (in millions) Revenues: Circulation and subscription $ 9 $ 414 $ 303 $ — $ 240 $ — $ 966 Advertising 25 40 84 — 427 — 576 Consumer — — — 396 — — 396 Real estate 209 — — — — — 209 Other 18 8 10 16 66 1 119 Total Revenues $ 261 $ 462 $ 397 $ 412 $ 733 $ 1 $ 2,266 For the nine months ended March 31, 2021 Digital Real Subscription Dow Jones Book News Media Other Total (in millions) Revenues: Circulation and subscription $ 22 $ 1,352 $ 959 $ — $ 775 $ — $ 3,108 Advertising 89 151 270 — 644 — 1,154 Consumer — — — 1,436 — — 1,436 Real estate 807 — — — — — 807 Other 62 27 24 56 191 1 361 Total Revenues $ 980 $ 1,530 $ 1,253 $ 1,492 $ 1,610 $ 1 $ 6,866 For the nine months ended March 31, 2020 Digital Real Subscription Dow Jones Book News Media Other Total (in millions) Revenues: Circulation and subscription $ 28 $ 1,304 $ 888 $ — $ 730 $ 1 $ 2,951 Advertising 77 144 288 — 1,352 — 1,861 Consumer — — — 1,204 — — 1,204 Real estate 669 — — — — — 669 Other 53 29 33 55 229 1 400 Total Revenues $ 827 $ 1,477 $ 1,209 $ 1,259 $ 2,311 $ 2 $ 7,085 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 and nine months ended March 31, 2021 and 2020: For the three months ended For the nine months ended 2021 2020 2021 2020 (in millions) Balance, beginning of period $ 400 $ 411 $ 398 $ 428 Deferral of revenue 823 851 2,285 2,426 Recognition of deferred revenue (a) (780) (807) (2,260) (2,398) Other (b) 6 (68) 26 (69) Balance, end of period $ 449 $ 387 $ 449 $ 387 (a) For the three and nine months ended March 31, 2021, the Company recognized $224 million and $359 million, respectively, of revenue which was included in the opening deferred revenue balance. For the three and nine months ended March 31, 2020, the Company recognized $226 million and $371 million, respectively, of revenue which was included in the opening deferred revenue balance. (b) For the three and nine months ended March 31, 2020, the Company reclassified $46 million of deferred revenue to other current liabilities in connection with the sale of News America Marketing. Contract assets were immaterial for disclosure as of March 31, 2021 and 2020. Other revenue disclosures The Company typically expenses sales commissions incurred to obtain a customer contract as those amounts are incurred as the amortization period is 12 months or less. These costs are recorded within Selling, general and administrative in the Statements of Operations. The Company also does not capitalize significant financing components when the transfer of the good or service is paid within 12 months or less, or the receipt of consideration is received within 12 months or less of the transfer of the good or service. For the three and nine months ended March 31, 2021, the Company recognized approximately $116 million and $296 million, respectively, 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 March 31, 2021 was approximately $417 million, of which approximately $56 million is expected to be recognized over the remainder of fiscal 2021, approximately $154 million is expected to be recognized in fiscal 2022 and approximately $69 million is expected to be recognized in fiscal 2023, with the remainder to be recognized thereafter. These amounts do not include (i) contracts with an expected duration of one year or less, (ii) contracts for which variable consideration is determined based on the customer’s subsequent sale or |
Acquisitions
Acquisitions | 9 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Acquistions | ACQUISITIONS Avail In December 2020, the Company acquired Rentalutions, Inc. (“Avail”) for initial cash consideration of approximately $36 million, net of $4 million of cash acquired, and up to $8 million in future cash consideration based upon the achievement of certain performance objectives over the next three years. The Company recorded a $4 million liability related to the contingent consideration, representing the estimated fair value. Included in the initial cash consideration was approximately $6 million that is being held back to satisfy post-closing claims. Avail is a platform that improves the renting experience for do-it-yourself landlords and tenants with online tools, educational content and world-class support. The acquisition helps realtor.com ® further expand into the rental space, extend its support for landlords, augment current rental listing content, grow its audience and build brand affinity and long-term relationships with renters. Avail is a subsidiary of Move, and its results are included within the Digital Real Estate Services segment. The purchase price allocation has been prepared on a preliminary basis and changes to the preliminary purchase price allocations may occur as additional information concerning asset and liability valuations is finalized. Under the acquisition method of accounting, the total consideration was first allocated to net tangible assets and identifiable intangible assets based upon their fair values as of the date of completion of the acquisition. As a result of the acquisition, the Company recorded approximately $7 million related to the technology platform with a weighted average useful life of five years. In accordance with ASC 350, “Intangibles – Goodwill and Other” (“ASC 350”), the excess of the total consideration over the fair values of the net tangible and intangible assets of approximately $32 million was recorded as goodwill on the transaction. Elara In December 2020, the Company acquired a controlling interest in Elara Technologies Pte. Ltd. (“Elara”) through a subscription for newly-issued preference shares and the buyout of certain minority shareholders. The total aggregate purchase price associated with the acquisition at the completion date is $138 million which primarily consists of $69 million of cash, the fair value of noncontrolling interests of $37 million and the fair value of the Company’s previously held equity interest in Elara of $22 million. The acquisition of Elara was accounted for in accordance with ASC 805 “Business Combinations”, which requires the Company to re-measure its previously held equity interest in Elara at its acquisition date fair value. The carrying amount of the Company’s previously held equity interest in Elara was $15 million and, accordingly, the Company recognized a gain on remeasurement of $7 million which was recorded in Other, net in the Statement of Operations. As a result of the transactions, REA Group’s shareholding in Elara increased from 13.5% to 59.7%, while News Corporation’s shareholding increased from 22.1% to 39.0%. During the three months ended March 31, 2021, REA Group acquired an additional 0.8% interest in Elara. REA Group and News Corporation now hold a combined eight of nine Elara board seats, and the Company began consolidating Elara in December 2020. The Company’s ownership in REA Group was diluted by 0.2% to 61.4% as a result of the transactions. The acquisition of Elara allows REA Group to be at the forefront of long-term growth opportunities within India and the digitization of the real estate sector. Elara is a subsidiary of REA Group, and its results are reported within the Digital Real Estate Services segment. The purchase price allocation has been prepared on a preliminary basis and changes to the preliminary purchase price allocations may occur as additional information concerning asset and liability valuations is finalized. Under the acquisition method of accounting, the total consideration was first allocated to net tangible assets and identifiable intangible assets based upon their fair values as of the date of completion of the acquisition. As a result of the acquisition, the Company recorded net tangible liabilities of $5 million and approximately $31 million of identifiable intangible assets, of which $19 million primarily related to Elara technology platforms with a weighted average useful life of five years and $12 million related to trade names with indefinite lives. In accordance with ASC 350, the excess of the total consideration over the fair values of the net tangible and intangible assets of approximately $113 million was recorded as goodwill on the transaction. |
Restructuring Programs
Restructuring Programs | 9 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Programs | RESTRUCTURING PROGRAMS Fiscal 2021 During the three and nine months ended March 31, 2021, the Company recorded restructuring charges of $30 million and $93 million, respectively, of which $18 million and $61 million, respectively, are related to the News Media segment. The restructuring charges recorded in fiscal 2021 primarily relate to employee termination benefits and exit costs associated with the anticipated closure of the Company’s Bronx print plant. In September 2020, the Company announced that it plans to close the plant and shift the printing of those publications in New York to a third party facility during fiscal 2021. Fiscal 2020 During the three and nine months ended March 31, 2020, the Company recorded restructuring charges of $19 million and $53 million, respectively, of which $13 million and $37 million, respectively, related to the News Media segment. The restructuring charges recorded in fiscal 2020 were for employee termination benefits. Changes in restructuring program liabilities were as follows: For the three months ended March 31, 2021 2020 One time Other costs Total One time Facility Other costs Total (in millions) Balance, beginning of period $ 32 $ 34 $ 66 $ 16 $ — $ 9 $ 25 Additions 20 10 30 19 — — 19 Payments (12) (8) (20) (17) — — (17) Other (2) — (2) — — — — Balance, end of period $ 38 $ 36 $ 74 $ 18 $ — $ 9 $ 27 For the nine months ended March 31, 2021 2020 One time Other costs Total One time Facility Other costs Total (in millions) Balance, beginning of period $ 64 $ 9 $ 73 $ 28 $ 2 $ 10 $ 40 Additions 55 38 93 53 — — 53 Payments (81) (11) (92) (63) — (1) (64) Other — — — — (2) — (2) Balance, end of period $ 38 $ 36 $ 74 $ 18 $ — $ 9 $ 27 As of March 31, 2021, restructuring liabilities of approximately $46 million were included in the Balance Sheet in Other current liabilities and $28 million were included in Other non-current liabilities. |
Investments
Investments | 9 Months Ended |
Mar. 31, 2021 | |
Schedule of Investments [Abstract] | |
Investments | INVESTMENTS The Company’s investments were comprised of the following: Ownership Percentage as of March 31, 2021 As of As of (in millions) Equity method investments (a) various $ 123 $ 120 Equity securities (b) various 268 177 Total Investments $ 391 $ 297 (a) Equity method investments are primarily comprised of Foxtel’s investment in Nickelodeon Australia Joint Venture and, until December 2020, Elara, which operates PropTiger.com and Housing.com. In December 2020, the Company acquired a controlling interest in Elara and began consolidating its results. Refer to Note 3—Acquisitions for further discussion. (b) Equity securities are primarily comprised of certain investments in China and the Company’s investments in HT&E Limited, which operates a portfolio of Australian radio and outdoor media assets, and Tremor International Ltd (“Tremor”). 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 For the nine months ended 2021 2020 2021 2020 (in millions) (in millions) Total gains (losses) recognized on equity securities $ 31 $ (17) $ 73 $ (22) Less: Net gains recognized on equity securities sold — — — — Unrealized gains (losses) recognized on equity securities held at end of period $ 31 $ (17) $ 73 $ (22) Equity Losses of Affiliates The Company’s share of the losses of its equity affiliates was $5 million and $9 million for the three and nine months ended March 31, 2021, respectively, and $7 million and $12 million, respectively, for the corresponding periods of fiscal 2020. |
Borrowings
Borrowings | 9 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS The Company’s total borrowings consist of the following: Interest rate at March 31, 2021 Maturity at March 31, 2021 As of As of (in millions) Foxtel Group Credit facility 2019 (a) (c) 2.83 % Nov 22, 2022 $ 248 $ 371 Term loan facility 2019 (b) 6.25 % Nov 22, 2024 191 171 Working capital facility 2017 (a) (c) 2.83 % Nov 22, 2022 — — Telstra Facility (d) 7.81 % Dec 22, 2027 50 11 US private placement 2012 — USD portion — tranche 2 (e) 4.27 % Jul 25, 2022 201 200 US private placement 2012 — USD portion — tranche 3 (e) 4.42 % Jul 25, 2024 151 150 US private placement 2012 — AUD portion 7.04 % Jul 25, 2022 80 73 REA Group Credit facility 2018 (f) 0.91 % Apr 27, 2021 53 48 Credit facility 2019 (g) 0.91 % Dec 2, 2021 130 117 Credit facility 2020 (h) 2.06 % Dec 2, 2021 — — Finance lease and other liabilities 108 118 Total borrowings (i) 1,212 1,259 Less: current portion (j) (212) (76) Long-term borrowings $ 1,000 $ 1,183 (a) Borrowings under these facilities bear interest at a floating rate of the Australian BBSY plus an applicable margin of between 2.00% and 3.75% per annum depending on the Foxtel Debt Group’s (defined below) net leverage ratio. (b) Borrowings under this facility bear interest at a fixed rate of 6.25% per annum. (c) As of March 31, 2021, the Foxtel Debt Group had undrawn commitments of A$313 million under these facilities for which it pays a commitment fee of 45% of the applicable margin. (d) Borrowings under this facility bear interest at a variable rate of Australian BBSY plus a margin of 7.75%. The Company excludes borrowings under this facility from the Statements of Cash Flows as they are non-cash. (e) The carrying values of the borrowings include any fair value adjustments related to the Company’s fair value hedges. See Note 8—Financial Instruments and Fair Value Measurements. (f) Borrowings under this facility bear interest at a floating rate of the Australian BBSY plus a margin of between 0.85% and 2.75% depending on REA Group’s net leverage ratio. (g) Borrowings under this facility bear interest at a floating rate of the Australian BBSY plus a margin of between 0.85% and 2.00% depending on REA Group’s net leverage ratio. (h) Borrowings under this facility bear interest at a floating rate of the Australian BBSY plus a margin of 2.00% or 2.75% depending on REA Group’s net leverage ratio. (i) The Company’s outstanding borrowings as of March 31, 2021 were incurred by certain subsidiaries of NXE Australia Pty Limited (“Foxtel” and, together with such subsidiaries, the “Foxtel Debt Group”) and by REA Group and certain of its subsidiaries. Foxtel and REA Group are consolidated but non wholly-owned subsidiaries of News Corp. These borrowings are only guaranteed by Foxtel and REA Group and certain of their respective subsidiaries, as applicable, and are non-recourse to News Corp. (j) The Company classifies the current portion of long term debt as non-current liabilities on the Balance Sheets when it has the intent and ability to refinance the obligation on a long-term basis, in accordance with ASC 470-50 “Debt.” $29 million relates to the current portion of finance lease liabilities. REA Group has access to an A$20 million overdraft facility (the “2020 Overdraft Facility”). The 2020 Overdraft Facility is an uncommitted facility that will be reviewed annually by the lender and bears interest at a rate based on the lender’s benchmark borrowing rate less a discount of 4.22%. The 2020 Overdraft Facility carries an annual facility fee of 0.15% of the A$20 million overdraft limit. As of March 31, 2021, REA Group had not borrowed any funds under the 2020 Overdraft Facility. In October 2020, REA Group amended certain terms of its credit facilities to, among other things, require REA Group to maintain a net leverage ratio of not more than 3.5 to 1.0 as of and subsequent to December 31, 2020. The Company has access to an unsecured $750 million revolving credit facility (the “2019 News Corp Credit Facility”) under the Company’s 2019 Credit Agreement (the “2019 Credit Agreement”) that can be used for general corporate purposes. The 2019 News Corp Credit Facility has a sub-limit of $100 million available for issuances of letters of credit. The Company may request increases in the amount of the facility up to a maximum amount of $1 billion. The lenders’ commitments to make the 2019 News Corp Credit Facility available terminate on December 12, 2024, and the Company may request that the commitments be extended under certain circumstances for up to two additional one-year periods. Interest on borrowings under the 2019 News Corp Credit Facility is based on either (a) a Eurodollar Rate formula or (b) the Base Rate formula, each as set forth in the 2019 Credit Agreement. The applicable margin and the commitment fee are based on the pricing grid in the 2019 Credit Agreement, which varies based on the Company’s adjusted operating income net leverage ratio. As of March 31, 2021, the Company was paying a commitment fee of 0.20% on any undrawn balance and an applicable margin of 0.375% for a Base Rate borrowing and 1.375% for a Eurodollar Rate borrowing. As of March 31, 2021, the Company had not borrowed any funds under the 2019 News Corp Credit Facility. Covenants The Company’s borrowings contain customary representations, covenants and events of default, including those discussed in the Company’s 2020 Form 10-K. If any of the events of default occur and are not cured within applicable grace periods or waived, any unpaid amounts under the Company’s debt agreements may be declared immediately due and payable. The Company was in compliance with all such covenants at March 31, 2021. Foxtel Debt Amendment On April 9, 2021, the Foxtel Debt Group amended its 2019 Credit Facility and 2017 Working Capital Facility to, among other things, extend the debt maturity from November 2022 to May 2024 and reduce the applicable margin to between 2.00% to 3.25%, depending on the Foxtel Debt Group’s net leverage ratio. |
Equity
Equity | 9 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Equity | EQUITY The following tables summarize changes in equity for the three and nine months ended March 31, 2021 and 2020: For the three months ended March 31, 2021 Class A Common Class B Common Additional Accumulated Accumulated Total Non-controlling Total Shares Amount Shares Amount (in millions) Balance, December 31, 2020 391 $ 4 200 $ 2 $ 12,091 $ (2,976) $ (990) $ 8,131 $ 943 $ 9,074 Net income — — — — — 79 — 79 17 96 Other comprehensive income — — — — — — 25 25 4 29 Dividends — — — — (59) — — (59) (24) (83) Other — — — — 12 — — 12 1 13 Balance, March 31, 2021 391 $ 4 200 $ 2 $ 12,044 $ (2,897) $ (965) $ 8,188 $ 941 $ 9,129 For the three months ended March 31, 2020 Class A Common Class B Common Additional Accumulated Accumulated Total Non-controlling Total Shares Amount Shares Amount (in millions) Balance, December 31, 2019 389 $ 4 200 $ 2 $ 12,183 $ (2,114) $ (1,117) $ 8,958 $ 1,169 $ 10,127 Net loss — — — — — (730) — (730) (306) (1,036) Other comprehensive loss — — — — — — (351) (351) (109) (460) Dividends — — — — (59) — — (59) (19) (78) Other — — — — 13 (1) 2 14 1 15 Balance, March 31, 2020 389 $ 4 200 $ 2 $ 12,137 $ (2,845) $ (1,466) $ 7,832 $ 736 $ 8,568 For the nine months ended March 31, 2021 Class A Common Class B Common Additional Accumulated Accumulated Total Non-controlling Total Shares Amount Shares Amount (in millions) Balance, June 30, 2020 389 $ 4 200 $ 2 $ 12,148 $ (3,241) $ (1,331) $ 7,582 $ 807 $ 8,389 Net income — — — — — 344 — 344 60 404 Other comprehensive income — — — — — — 366 366 84 450 Dividends — — — — (118) — — (118) (45) (163) Other 2 — — — 14 — — 14 35 49 Balance, March 31, 2021 391 $ 4 200 $ 2 $ 12,044 $ (2,897) $ (965) $ 8,188 $ 941 $ 9,129 For the nine months ended March 31, 2020 Class A Class B Additional Accumulated Accumulated Total Non-controlling Total Shares Amount Shares Amount (in millions) Balance, June 30, 2019 386 $ 4 200 $ 2 $ 12,243 $ (1,979) $ (1,126) $ 9,144 $ 1,167 $ 10,311 Cumulative impact from adoption of new standards — — — — — 6 3 9 — 9 Net loss — — — — — (872) — (872) (272) (1,144) Other comprehensive loss — — — — — — (344) (344) (118) (462) Dividends — — — — (118) — — (118) (41) (159) Other 3 — — — 12 — 1 13 — 13 Balance, March 31, 2020 389 $ 4 200 $ 2 $ 12,137 $ (2,845) $ (1,466) $ 7,832 $ 736 $ 8,568 Stock Repurchases The Company did not purchase any of its Class A Common Stock or Class B Common Stock during the nine months ended March 31, 2021 and 2020. Dividends In February 2021, the Company’s Board of Directors (the “Board of Directors”) declared a semi-annual cash dividend of $0.10 per share for Class A Common Stock and Class B Common Stock. This dividend was paid on April 14, 2021 to stockholders of record as of March 17, 2021. 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 | 9 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS In accordance with ASC 820, “Fair Value Measurements” (“ASC 820”) fair value measurements are required to be disclosed using a three-tiered fair value hierarchy which distinguishes market participant assumptions into the following categories: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices included in Level 1. The Company could value assets and liabilities included in this level using dealer and broker quotations, certain pricing models, bid prices, quoted prices for similar assets and liabilities in active markets or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. For the Company, this primarily includes the use of forecasted financial information and other valuation related assumptions such as discount rates and long term growth rates in the income approach as well as the market approach which utilizes certain market and transaction multiples. Under ASC 820, certain assets and liabilities are required to be remeasured to fair value at the end of each reporting period. The following table summarizes those assets and liabilities measured at fair value on a recurring basis: As of March 31, 2021 As of June 30, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in millions) Assets: Cross-currency interest rate derivatives - fair value hedges $ — $ 17 $ — $ 17 $ — $ 24 $ — $ 24 Cross-currency interest rate derivatives - cash flow hedges — — — — — 98 — 98 Cross-currency interest rate derivatives (a) — 71 — 71 — — — — Equity securities (b) 152 — 116 268 54 — 123 177 Total assets $ 152 $ 88 $ 116 $ 356 $ 54 $ 122 $ 123 $ 299 Liabilities: Foreign currency derivatives - cash flow hedges $ — $ 1 $ — $ 1 $ — $ 3 $ — $ 3 Interest rate derivatives - cash flow hedges — 12 — 12 — 16 — 16 Cross-currency interest rate derivatives - cash flow hedges — — — — — 18 — 18 Cross-currency interest rate derivatives (a) — 15 — 15 — — — — Total liabilities $ — $ 28 $ — $ 28 $ — $ 37 $ — $ 37 (a) The Company determined that its cross-currency interest rate derivatives are no longer considered highly effective as of December 31, 2020 primarily due to changes in foreign exchange and interest rates. (b) See Note 5—Investments. During the three months ended December 31, 2020, the Company reclassified its investment in Tremor from Level 3 to Level 1 within the fair value hierarchy, as the sale restrictions are expected to lapse within 12 months. 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 nine months ended March 31, 2021 2020 (in millions) Balance - beginning of period $ 123 $ 113 Additions (a) 10 17 Measurement adjustments 21 (3) Foreign exchange and other (b) (38) (2) Balance - end of period $ 116 $ 125 (a) Includes purchases of equity securities as well as the equity securities received as consideration for the sale of Unruly to Tremor in the third quarter of fiscal 2020. (b) During the three months ended December 31, 2020, the Company reclassified its investment in Tremor from Level 3 to Level 1 within the fair value hierarchy, as the sale restrictions are expected to lapse within 12 months. Derivative Instruments The Company is directly and indirectly affected by risks associated with changes in certain market conditions. When deemed appropriate, the Company uses derivative instruments to mitigate the potential impact of these market risks. The primary market risks managed by the Company through the use of derivative instruments include: • foreign currency exchange rate risk: arising primarily through Foxtel Debt Group borrowings denominated in United States (“U.S.”) dollars, payments for customer premise equipment, and certain programming rights; and • interest rate risk: arising from fixed and floating rate Foxtel Debt Group borrowings. The Company formally designates qualifying derivatives as hedge relationships (“hedges”) and applies hedge accounting when considered appropriate. The Company does not use derivative financial instruments for trading or speculative purposes. For economic hedges where no hedge relationship has been designated or hedge accounting has been discontinued, changes in fair value are included as a component of net income in each reporting period within Other, net in the Statements of Operations. When a derivative is determined not to be highly effective as a hedge or the underlying hedged transaction is no longer probable, the Company discontinues hedge accounting prospectively. Upon adoption of ASU 2017-12 as of July 1, 2019, the Company reclassified $5 million in gains from Accumulated deficit to Accumulated other comprehensive loss related to amounts previously recorded for the ineffective portion of outstanding derivative instruments designated as cash flow hedges. During the three and nine months ended March 31, 2021 and 2020, the Company excluded the currency basis from the changes in fair value of the derivative instruments from the assessment of hedge effectiveness. Derivatives are classified as current or non-current in the Balance Sheets based on their maturity dates. Refer to the table below for further details: Balance Sheet Location As of March 31, As of June 30, (in millions) Cross-currency interest rate derivatives - fair value hedges Other non-current assets $ 17 $ 24 Cross-currency interest rate derivatives - cash flow hedges Other non-current assets — 98 Cross-currency interest rate derivatives (a) Other non-current assets 71 — Foreign currency derivatives - cash flow hedges Other current liabilities (1) (3) Interest rate derivatives - cash flow hedges Other non-current liabilities (12) (16) Cross-currency interest rate derivatives - cash flow hedges Other non-current liabilities — (18) Cross-currency interest rate derivatives (a) Other non-current liabilities (15) — (a) The Company determined that its cross-currency interest rate derivatives are no longer considered highly effective as of December 31, 2020 primarily due to changes in foreign exchange and interest rates. Cash flow hedges The Company utilizes a combination of foreign currency derivatives and interest rate derivatives to mitigate currency exchange rate risk and interest rate risk in relation to future interest and principal payments and payments for customer premise equipment and certain programming rights. The total notional value of foreign currency contract derivatives designated for hedging was $11 million as of March 31, 2021. The maximum hedged term over which the Company is hedging exposure to foreign currency fluctuations is one year. As of March 31, 2021, the Company estimates that approximately $1 million of net derivative losses related to its foreign currency contract derivative cash flow hedges included in Accumulated other comprehensive loss will be reclassified into the Statements of Operations within the next 12 months. The total notional value of interest rate swap derivatives designated for hedging was approximately A$300 million as of March 31, 2021. The maximum hedged term over which the Company is hedging exposure to variability in interest payments is to September 2022. As of March 31, 2021, the Company estimates that approximately $5 million of net derivative losses related to its interest rate swap derivative cash flow hedges included in Accumulated other comprehensive loss will be reclassified into the Statements of Operations within the next 12 months. Cash flow derivatives The Company utilizes cross-currency interest rate derivatives to mitigate currency exchange and interest rate risk in relation to future interest and principal payments. The Company determined that these cash flow hedges no longer qualified as highly effective as of December 31, 2020 primarily due to changes in foreign exchange and interest rates. Amounts recognized in Accumulated other comprehensive loss during the periods the hedges were considered highly effective will continue to be reclassified out of Accumulated other comprehensive loss over the remaining term of the derivatives. Changes in the fair values of these derivatives will be recognized within Other, net in the Statements of Operations on a prospective basis. The total notional value of cross-currency interest rate swaps for which the Company discontinued hedge accounting was approximately $280 million as of March 31, 2021. The maximum hedged term over which the Company is hedging exposure to variability in interest and principal payments is to July 2024. As of March 31, 2021, the Company estimates that approximately $5 million of net derivative gains related to its cross-currency interest rate swap derivative cash flow hedges included in Accumulated other comprehensive loss will be reclassified into the Statements of Operations within the next 12 months. The following tables present the impact that changes in the fair values had on Accumulated other comprehensive loss and the Statements of Operations during the three and nine months ended March 31, 2021 and 2020 for both derivatives designated as cash flow hedges that continue to be highly effective and derivatives initially designated as cash flow hedges but for which hedge accounting was discontinued as of December 31, 2020: Gain (loss) recognized in Accumulated Other Comprehensive Loss for the three months ended March 31, (Gain) loss reclassified from Accumulated Other Comprehensive Loss for the three months ended March 31, Income statement 2021 2020 2021 2020 (in millions) Foreign currency derivatives - cash flow hedges $ 3 $ 5 $ — $ (1) Operating expenses Cross-currency interest rate derivatives — 43 (1) (33) Interest expense, net Interest rate derivatives - cash flow hedges — (3) 1 1 Interest expense, net Total $ 3 $ 45 $ — $ (33) Gain (loss) recognized in Accumulated Other Comprehensive Loss for the nine months ended March 31, (Gain) loss reclassified from Accumulated Other Comprehensive Loss for the nine months ended March 31, Income statement 2021 2020 2021 2020 (in millions) Foreign currency derivatives - cash flow hedges $ 3 $ 3 $ (1) $ (3) Operating expenses Cross-currency interest rate derivatives (15) 35 12 (30) Interest expense, net Interest rate derivatives - cash flow hedges (1) (6) 4 (4) Interest expense, net Total $ (13) $ 32 $ 15 $ (37) The gain resulting from the changes in fair value of cross-currency interest rate derivatives that were discontinued as cash flow hedges due to hedge ineffectiveness as of December 31, 2020 was approximately $5 million and $7 million for the three and nine months ended March 31, 2021, respectively, and was recognized in Other, net in the Statements of Operations. 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 nine months ended March 31, 2021, such adjustments increased the carrying value of borrowings by nil. The total notional value of the fair value hedges was approximately $70 million as of March 31, 2021. The maximum hedged term over which the Company is hedging exposure to variability in interest payments is to July 2024. During the nine months ended March 31, 2021 and 2020, the amount recognized in the Statements of Operations on derivative instruments designated as fair value hedges related to the ineffective portion was $1 million and nil, respectively, and the Company excluded the currency basis from the changes in fair value of the derivative instruments from the assessment of hedge effectiveness. The following sets forth the effect of fair value hedging relationships on hedged items in the Balance Sheets as of March 31, 2021 and June 30, 2020: As of March 31, 2021 As of June 30, (in millions) Borrowings: Carrying amount of hedged item $ 71 $ 71 Cumulative hedging adjustments included in the carrying amount 5 6 Other Fair Value Measurements As of March 31, 2021, the carrying value of the Company’s outstanding borrowings approximates the fair value. The U.S. private placement borrowings are classified as Level 2 and the remaining borrowings are classified as Level 3 in the fair value hierarchy. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | EARNINGS (LOSS) PER SHARE The following tables set forth the computation of basic and diluted earnings (loss) per share under ASC 260, “Earnings per Share”: For the three months ended For the nine months ended 2021 2020 2021 2020 (in millions, except per share amounts) Net income (loss) $ 96 $ (1,036) $ 404 $ (1,144) Less: Net (income) loss attributable to noncontrolling interests (17) 306 (60) 272 Net income (loss) attributable to News Corporation stockholders $ 79 $ (730) $ 344 $ (872) Weighted-average number of shares of common stock outstanding - basic 590.8 588.3 590.3 587.7 Dilutive effect of equity awards (a) 3.7 — 2.3 — Weighted-average number of shares of common stock outstanding - diluted 594.5 588.3 592.6 587.7 Net income (loss) attributable to News Corporation stockholders per share - basic and diluted $ 0.13 $ (1.24) $ 0.58 $ (1.48) (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 and nine months ended March 31, 2020 because their inclusion would have an antidilutive effect on the net loss per share. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments The Company has commitments under certain firm contractual arrangements (“firm commitments”) to make future payments. These firm commitments secure the future rights to various assets and services to be used in the normal course of operations. The Company’s commitments as of March 31, 2021 have not changed significantly from the disclosures included in the 2020 Form 10-K and the Company’s Form 10-Q for the quarter ended December 31, 2020. Contingencies The Company routinely is involved in various legal proceedings, claims and governmental inspections or investigations, including those discussed below. The outcome of these matters and claims is subject to significant uncertainty, and the Company often cannot predict what the eventual outcome of pending matters will be or the timing of the ultimate resolution of these matters. Fees, expenses, fines, penalties, judgments or settlement costs which might be incurred by the Company in connection with the various proceedings could adversely affect its results of operations and financial condition. The Company establishes an accrued liability for legal claims when it determines that a loss is both probable and the amount of the loss can be reasonably estimated. Once established, accruals are adjusted from time to time, as appropriate, in light of additional information. The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be higher or lower than the amounts accrued for such matters. Legal fees associated with litigation and similar proceedings are expensed as incurred. Except as otherwise provided below, for the contingencies disclosed for which there is at least a reasonable possibility that a loss may be incurred, the Company was unable to estimate the amount of loss or range of loss. The Company recognizes gain contingencies when the gain becomes realized or realizable. News America Marketing In May 2020, the Company sold its News America Marketing business. In the transaction, the Company retained certain liabilities, including those arising from the legal proceedings with Insignia Systems, Inc. (“Insignia”) and Valassis Communications, Inc. (“Valassis”) described below. Insignia Systems, Inc. On July 11, 2019, Insignia filed a complaint in the U.S. District Court for the District of Minnesota against News America Marketing FSI L.L.C. (“NAM FSI”), News America Marketing In-Store Services L.L.C. (“NAM In-Store”) and News Corporation (together, the “NAM Parties”) alleging violations of federal and state antitrust laws and common law business torts. The complaint seeks treble damages, injunctive relief and attorneys’ fees and costs. On August 14, 2019, the NAM Parties answered the complaint and asserted a counterclaim against Insignia for breach of contract, alleging that Insignia violated a prior settlement agreement between NAM In-Store and Insignia. On July 10, 2020, each of the NAM Parties and Insignia filed a motion for summary judgment on the counterclaim. On December 7, 2020, the court denied Insignia’s motion and granted the NAM Parties’ motion in part and denied it in part. The court found that Insignia had breached the prior settlement agreement and struck the allegations in Insignia’s complaint that violated the agreement. While it is not possible at this time to predict with any degree of certainty the ultimate outcome of this action, the NAM Parties believe they have been compliant with applicable laws and intend to defend themselves vigorously. Valassis Communications, Inc. On November 8, 2013, Valassis filed a complaint in the U.S. District Court for the Eastern District of Michigan (the “District Court”) against the NAM Parties and News America Incorporated (together, the “NAM Group”) alleging violations of federal and state antitrust laws and common law business torts. The complaint seeks treble damages, injunctive relief and attorneys’ fees and costs. 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. The N.Y. District Court has set a trial date of June 30, 2021. 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. HarperCollins Beginning in February 2021, a number of purported class action complaints have been filed in the N.Y. District Court against Amazon.com, Inc. and certain publishers, including the Company’s subsidiary, HarperCollins Publishers, L.L.C. (“HarperCollins”), alleging violations of antitrust and competition laws. The complaints seek treble damages, injunctive relief and attorneys’ fees and costs. While it is not possible at this time to predict with any degree of certainty the ultimate outcome of these actions, HarperCollins believes it has been compliant with applicable laws and intends to defend itself vigorously. U.K. Newspaper Matters Civil claims have been brought against the Company with respect to, among other things, voicemail interception and inappropriate payments to public officials at the Company’s former publication, The News of the World , and at The Sun , and related matters (the “U.K. Newspaper Matters”). The Company has admitted liability in many civil cases and has settled a number of cases. The Company also settled a number of claims through a private compensation scheme which was closed to new claims after April 8, 2013. In connection with the separation of the Company from Twenty-First Century Fox, Inc. (“21st Century Fox”) on June 28, 2013, the Company and 21st Century Fox agreed in the Separation and Distribution Agreement that 21st Century Fox would indemnify the Company for payments made after such date arising out of civil claims and investigations relating to the U.K. Newspaper Matters as well as legal and professional fees and expenses paid in connection with the previously concluded criminal matters, other than fees, expenses and costs relating to employees (i) who are not directors, officers or certain designated employees or (ii) with respect to civil matters, who are not co-defendants with the Company or 21st Century Fox. 21st Century Fox’s indemnification obligations with respect to these matters are settled on an after-tax basis. In March 2019, as part of the separation of Fox Corporation (“FOX”) from 21st Century Fox, the Company, News Corp Holdings UK & Ireland, 21st Century Fox and FOX entered into a Partial Assignment and Assumption Agreement, pursuant to which, among other things, 21st Century Fox assigned, conveyed and transferred to FOX all of its indemnification obligations with respect to the U.K. Newspaper Matters. The net expense related to the U.K. Newspaper Matters in Selling, general and administrative was $3 million and $4 million for the three months ended March 31, 2021 and 2020, respectively, and $8 million and $5 million for the nine months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, the Company has provided for its best estimate of the liability for the claims that have been filed and costs incurred, including liabilities associated with employment taxes, and has accrued approximately $43 million. The amount to be indemnified by FOX of approximately $52 million was recorded as a receivable in Other current assets on the Balance Sheet as of March 31, 2021. The net expense for the nine months ended March 31, 2020 reflects a $5 million impact from the reversal of a portion of the Company’s previously accrued liability and the corresponding receivable from FOX as the result of an agreement reached with the relevant tax authority with respect to certain employment taxes. It is not possible to estimate the liability or corresponding receivable for any additional claims that may be filed given the information that is currently available to the Company. If more claims are filed and additional information becomes available, the Company will update the liability provision and corresponding receivable for such matters. The Company is not able to predict the ultimate outcome or cost of the civil claims. It is possible that these proceedings and any adverse resolution thereof could damage its reputation, impair its ability to conduct its business and adversely affect its results of operations and financial condition. Other The Company’s tax returns are subject to on-going review and examination by various tax authorities. Tax authorities may not agree with the treatment of items reported in the Company’s tax returns, and therefore the outcome of tax reviews and examinations can be unpredictable. The Company believes it has appropriately accrued for the expected outcome of uncertain tax matters and believes such liabilities represent a reasonable provision for taxes ultimately expected to be paid; however, these liabilities may need to be adjusted as new information becomes known and as tax examinations continue to progress, or as settlements or litigations occur. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES At the end of each interim period, the Company estimates the annual effective tax rate and applies that rate to its ordinary quarterly earnings. The tax expense or benefit related to significant, unusual or extraordinary items that will be separately reported or reported net of their related tax effect are individually computed and recognized in the interim period in which those items occur. In addition, the effects of changes in enacted tax laws or rates or tax status are recognized in the interim period in which the change occurs. The changing and volatile macro-economic conditions connected with COVID-19 may cause fluctuations in forecasted earnings before income taxes. As such, the Company’s effective tax rate could be subject to volatility as forecasted earnings before income taxes are impacted by events which are highly uncertain and cannot be predicted. For the three months ended March 31, 2021, the Company recorded income tax expense of $43 million on pre-tax income of $139 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 of foreign operations which are subject to higher tax rates. For the nine months ended March 31, 2021, the Company recorded income tax expense of $153 million on pre-tax income of $557 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 of foreign operations which are subject to higher tax rates, offset by a remeasurement of deferred taxes in the U.K. For the three months ended March 31, 2020, the Company recorded an income tax benefit of $10 million on a pre-tax loss of $1,046 million, resulting in an effective tax rate that was lower than the U.S. statutory tax rate. The tax rate was impacted by the non-cash impairment of Foxtel’s goodwill and indefinite-lived intangible assets, which had no tax benefit, by valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses, and by the impact of foreign operations which are subject to higher tax rates. For the nine months ended March 31, 2020, the Company recorded income tax expense of $21 million on a pre-tax loss of $1,123 million, resulting in an effective tax rate that was lower than the U.S. statutory tax rate. The tax rate was impacted by the non-cash impairment of Foxtel’s goodwill and indefinite-lived intangible assets, which had no tax benefit, a lower tax benefit recorded on the impairment of News America Marketing’s goodwill in prior quarters, by valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses, and by the impact of 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 that deferred tax assets in certain foreign jurisdictions may not be realized and therefore, a valuation allowance has been established against those tax assets. The Company’s tax returns are subject to on-going review and examination by various tax authorities. Tax authorities may not agree with the treatment of items reported in the Company’s tax returns, and therefore the outcome of tax reviews and examinations can be unpredictable. The Company is currently undergoing tax examinations in various U.S. state and foreign jurisdictions. During the nine months ended March 31, 2021, the statute of limitations related to our U.S. federal income tax returns for the fiscal years ended June 30, 2014 and 2016 expired. No adjustments to our tax provision were recorded as a result of these statute expirations. The Internal Revenue Service has commenced an audit for the fiscal year ended June 30, 2018. The Company believes it has appropriately accrued for the expected outcome of uncertain tax matters and believes such liabilities represent a reasonable provision for taxes ultimately expected to be paid. However, the Company may need to accrue additional income tax expense and its liability may need to be adjusted as new information becomes known and as these tax examinations continue to progress, or as settlements or litigations occur. The Company paid gross income taxes of $131 million and $93 million during the nine months ended March 31, 2021 and 2020, respectively, and received tax refunds of $11 million and $5 million, respectively. |
Segment Information
Segment Information | 9 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company manages and reports its businesses in the following six segments: • Digital Real Estate Services —The Digital Real Estate Services segment consists of the Company’s 61.4% interest in REA Group and 80% interest in Move. The remaining 20% interest in Move is held by REA Group. REA Group is a market-leading digital media business specializing in property and is listed on the Australian Securities Exchange (“ASX”) (ASX: REA). REA Group advertises property and property-related services on its websites and mobile apps across Australia, India and Asia, including Australia’s leading residential, commercial and share property websites, realestate.com.au, realcommercial.com.au and Flatmates.com.au, and property portals in India and Asia. In addition, REA Group provides property-related data to the financial sector and financial services through an end-to-end digital property search and financing experience and a mortgage broking offering. Move is a leading provider of digital real estate services in the U.S. and primarily operates realtor.com ® , a premier real estate information and services marketplace. Move offers real estate advertising solutions to agents and brokers, including its Connections SM Plus and Advantage SM Pro products as well as its referral-based services. Move also offers online tools and services to do-it-yourself landlords and tenants, as well as a number of professional software and services products, including ListHub ™ . • Subscription Video Services —The Company’s Subscription Video Services segment provides video sports, entertainment and news services to pay-TV subscribers and other commercial licensees, primarily via cable, satellite and internet distribution, and consists of (i) the Company’s 65% interest in Foxtel (with the remaining 35% interest in Foxtel held by Telstra, an ASX-listed telecommunications company) and (ii) Australian News Channel (“ANC”). Foxtel is the largest pay-TV provider in Australia, with nearly 200 channels covering sports, general entertainment, movies, documentaries, music, children’s programming and news. Foxtel offers the leading sports programming content in Australia, with broadcast rights to live sporting events including: National Rugby League, Australian Football League, Cricket Australia, the domestic football league and various motorsports programming. Foxtel also operates Foxtel Now, an over-the-top, or OTT, service that provides access across Foxtel’s live and on-demand content, Kayo, its sports OTT service, and Binge, its recently launched on-demand entertainment OTT service. ANC operates the SKY NEWS network, Australia’s 24-hour multi-channel, multi-platform news service. ANC channels are distributed throughout Australia and New Zealand and available on Foxtel and Sky Network Television NZ. ANC also owns and operates the international Australia Channel IPTV service and offers content across a variety of digital media platforms, including web, mobile and third party providers. • Dow Jones —The Dow Jones segment consists of Dow Jones, a global provider of news and business information, which distributes its content and data through a variety of media channels including newspapers, newswires, websites, applications, or apps, for mobile devices, tablets and e-book readers, newsletters, magazines, proprietary databases, live journalism, video and podcasts. Dow Jones’s products, which target individual consumer and enterprise customers, include The Wall Street Journal , Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, Barron’s and MarketWatch. • Book Publishing —The Book Publishing segment consists of HarperCollins, the second largest consumer book publisher in the world, with operations in 17 countries and particular strengths in general fiction, nonfiction, children’s and religious publishing. HarperCollins owns more than 120 branded publishing imprints, including Harper, William Morrow, HarperCollins Children’s Books, Avon, Harlequin and Christian publishers Zondervan and Thomas Nelson, and publishes works by well-known authors such as Harper Lee, Chip and Joanna Gaines, David Walliams, Angie Thomas, Sarah Young and Agatha Christie and popular titles such as The Hobbit, Goodnight Moon, To Kill a Mockingbird, Jesus Calling and The Hate U Give . • News Media —The News Media segment consists primarily of News Corp Australia, News UK and the New York Post and includes, among other publications, The Australian, The Daily Telegraph, Herald Sun, The Courier Mail and The Advertiser in Australia and The Times, The Sunday Times, The Sun and The Sun on Sunday in the U.K. This segment also includes Wireless Group, operator of talkSPORT, the leading sports radio network in the U.K., and Storyful, a social media content agency. The segment included News America Marketing until the completion of the sale of the business on May 5, 2020. • Other —The Other segment consists primarily of general corporate overhead expenses, the corporate Strategy Group, costs related to the U.K. Newspaper Matters and transformation costs associated with the Company’s global shared services program. Segment EBITDA is defined as revenues less operating expenses and selling, general and administrative expenses. Segment EBITDA does not include: depreciation and amortization, impairment and restructuring charges, equity losses of affiliates, interest (expense) income, net, other, net and income tax (expense) benefit. Segment EBITDA may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what items should be included in the calculation of Segment EBITDA. Segment EBITDA is the primary measure used by the Company’s chief operating decision maker to evaluate the performance of and allocate resources within the Company’s businesses. Segment EBITDA provides management, investors and equity analysts with a measure to analyze the operating performance of each of the Company’s business segments and its enterprise value against historical data and competitors’ data, although historical results may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences). Segment information is summarized as follows: For the three months ended For the nine months ended March 31, 2021 2020 2021 2020 (in millions) Revenues: Digital Real Estate Services $ 351 $ 261 $ 980 $ 827 Subscription Video Services 523 462 1,530 1,477 Dow Jones 421 397 1,253 1,209 Book Publishing 490 412 1,492 1,259 News Media 550 733 1,610 2,311 Other — 1 1 2 Total revenues $ 2,335 $ 2,266 $ 6,866 $ 7,085 Segment EBITDA: Digital Real Estate Services $ 117 $ 74 $ 378 $ 274 Subscription Video Services 91 68 293 219 Dow Jones 82 51 263 176 Book Publishing 80 55 255 167 News Media 8 24 52 97 Other (80) (30) (178) (115) Depreciation and amortization (173) (160) (504) (484) Impairment and restructuring charges (30) (1,125) (93) (1,451) Equity losses of affiliates (5) (7) (9) (12) Interest expense, net (12) (9) (32) (13) Other, net 61 13 132 19 Income (loss) before income tax (expense) benefit 139 (1,046) 557 (1,123) Income tax (expense) benefit (43) 10 (153) (21) Net income (loss) $ 96 $ (1,036) $ 404 $ (1,144) As of March 31, 2021 As of June 30, (in millions) Total assets: Digital Real Estate Services $ 2,660 $ 2,322 Subscription Video Services 3,618 3,459 Dow Jones 2,457 2,480 Book Publishing 2,386 2,212 News Media 2,320 1,994 Other (a) 1,565 1,497 Investments 391 297 Total assets $ 15,397 $ 14,261 (a) The Other segment primarily includes Cash and cash equivalents. As of March 31, 2021 As of June 30, (in millions) Goodwill and intangible assets, net: Digital Real Estate Services $ 1,778 $ 1,555 Subscription Video Services 1,637 1,513 Dow Jones 1,713 1,722 Book Publishing 784 748 News Media 307 277 Total Goodwill and intangible assets, net $ 6,219 $ 5,815 |
Additional Financial Informatio
Additional Financial Information | 9 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Financial Information | ADDITIONAL FINANCIAL INFORMATION Receivables, net Receivables are presented net of allowances, which reflect the Company’s expected credit losses based on historical experience as well as current and expected economic conditions. Receivables, net consist of: As of March 31, 2021 As of June 30, (in millions) Receivables $ 1,415 $ 1,276 Less: allowances (80) (73) Receivables, net $ 1,335 $ 1,203 Other Non-Current Assets The following table sets forth the components of Other non-current assets: As of March 31, As of June 30, (in millions) Royalty advances to authors $ 363 $ 348 Retirement benefit assets 130 94 Inventory (a) 292 133 News America Marketing deferred consideration 124 111 Other 310 353 Total Other non-current assets $ 1,219 $ 1,039 (a) The balance as of March 31, 2021 primarily consists of the non-current portion of programming rights. Upon adoption of ASU 2019-02, the Company reclassified the current portion of its programming rights, totaling $151 million, from Inventory, net to Other non-current assets. The Company’s programming rights are substantially all monetized as a film group. Other Current Liabilities The following table sets forth the components of Other current liabilities: As of March 31, As of June 30, (in millions) Royalties and commissions payable $ 239 $ 169 Current operating lease liabilities 139 131 Allowance for sales returns 188 174 Current tax payable 6 50 Other 351 314 Total Other current liabilities $ 923 $ 838 Other, net The following table sets forth the components of Other, net: For the three months ended March 31, For the nine months ended March 31, 2021 2020 2021 2020 (in millions) Remeasurement of equity securities $ 33 $ (17) $ 79 $ (22) Dividends received from equity security investments 6 1 9 2 Gain on sale of businesses (a) 18 20 18 20 Gain on remeasurement of previously-held interest in Elara (Note 3) — — 7 — Other 4 9 19 19 Total Other, net $ 61 $ 13 $ 132 $ 19 (a) During the three and nine months ended March 31, 2021, Move sold the assets associated with its Top Producer professional software and service product and recognized an $18 million gain on the sale. During the three and nine months ended March 31, 2020, REA Group contributed its businesses located in Singapore and Indonesia into a joint venture with 99.co in return for an equity method investment in the combined entity. As a result of the deconsolidation of these entities, REA Group recognized a $20 million gain in Other, net. Supplemental Cash Flow Information The following table sets forth the Company’s cash paid for taxes and interest: For the nine months ended March 31, 2021 2020 (in millions) Cash paid for interest $ 41 $ 43 Cash paid for taxes $ 131 $ 93 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Acquisition of Investor’s Business Daily In May 2021, the Company acquired Investor’s Business Daily (“IBD”) from O’Neil Capital Management for $275 million in cash. IBD is a digital-first financial news and research business with unique investor tools, research and analysis products, including the investors.com website. IBD will be operated by Dow Jones, and its results will be included in the Dow Jones segment. The Company is currently in the process of evaluating the purchase accounting implications, and as a result disclosures required under ASC 805-10-50-2(h) cannot be made at this time. Senior Notes Offering In April 2021, the Company issued $1 billion of senior notes due 2029 (the “2021 Senior Notes”). The 2021 Senior Notes will bear interest at a fixed rate of 3.875% per annum, payable in cash semi-annually on May 15 and November 15 of each year, commencing November 15, 2021. The notes will mature on May 15, 2029. Agreement to acquire HMH Books & Media In March 2021, the Company entered into an agreement to acquire the Books & Media segment of Houghton Mifflin Harcourt (“HMH Books & Media”) for $349 million in cash. HMH Books & Media publishes renowned and awarded children’s, young adult, fiction, non-fiction, culinary and reference titles. HMH Books & Media will be a subsidiary of HarperCollins and its results will be included in the Book Publishing segment. The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close in the fourth quarter of fiscal 2021. REA Group agreement to acquire Mortgage Choice In March 2021, REA Group entered into an agreement to acquire Mortgage Choice Limited, a leading Australian mortgage broking business (“Mortgage Choice”), for approximately A$244 million in cash (approximately $186.5 million based on exchange rates as of the date of announcement), to be funded by an increase in REA Group’s syndicated debt facilities. Mortgage Choice will be a subsidiary of REA Group and its results will be included in the Digital Real Estate Services segment. The acquisition is subject to customary closing conditions, including Mortgage Choice shareholder, court and regulatory approvals and receipt of an independent expert opinion that the transaction is in the best interests of Mortgage Choice shareholders, and is expected to close in the fourth quarter of fiscal 2021. |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of the Company, which are referred to herein as the “Consolidated Financial Statements,” have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments consisting only of normal recurring adjustments necessary for a fair presentation have been reflected in these Consolidated Financial Statements. Operating results for the interim period presented are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2021. The preparation of the Company’s Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts that are reported in the Consolidated Financial Statements and accompanying disclosures. The business and economic uncertainty resulting from the impacts of the ongoing novel coronavirus (“COVID-19”) pandemic has been considered in making those estimates and assumptions. Actual results could differ from those estimates. Intercompany transactions and balances have been eliminated. Equity investments in which the Company exercises significant influence but does not exercise control and is not the primary beneficiary are accounted for using the equity method. Investments in which the Company is not able to exercise significant influence over the investee are measured at fair value, if the fair value is readily determinable. If an investment’s fair value is not readily determinable, the Company will measure the investment at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. The consolidated statements of operations are referred to herein as the “Statements of Operations.” The consolidated balance sheets are referred to herein as the “Balance Sheets.” The consolidated statements of cash flows are referred to herein as the “Statements of Cash Flows.” The accompanying Consolidated Financial Statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2020 as filed with the Securities and Exchange Commission (the “SEC”) on August 11, 2020 (the “2020 Form 10-K”). Certain reclassifications have been made to the prior period consolidated financial statements to conform to the current year presentation. Specifically, the Company reclassified certain costs at the Other segment that were previously included within Selling, general and administrative to Operating expenses. For the three and nine months ended March 31, 2020, these reclassifications increased Operating expenses by $2 million and $4 million, respectively. The Company’s fiscal year ends on the Sunday closest to June 30. Fiscal 2021 and fiscal 2020 include 52 weeks. All references to the three and nine months ended March 31, 2021 and 2020 relate to the three and nine months ended March 28, 2021 and March 29, 2020, respectively. For convenience purposes, the Company continues to date its Consolidated Financial Statements as of March 31. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). The amendments in ASU 2016-13 require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The Company adopted the amendments in ASU 2016-13 on a modified retrospective basis as of July 1, 2020 and the adoption did not have a material effect on the Company's Consolidated Financial Statements. The Company will continue to actively monitor the impact of COVID-19 on expected credit losses. Allowance for doubtful accounts is calculated by pooling receivables with similar credit risks such as the level of delinquency, types of products or services and geographical locations and reflects the Company’s expected credit losses based on historical experience as well as current and expected economic conditions. Refer to Note 13—Additional Financial Information for further discussion. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 removes, modifies and adds certain disclosure requirements in Topic 820, “Fair Value Measurement.” ASU 2018-13 eliminates certain disclosures related to transfers and the valuation process, modifies disclosures for investments that are valued based on net asset value, clarifies the measurement uncertainty disclosure, and requires additional disclosures for Level 3 fair value measurements. The Company adopted the amendments to disclosure requirements in ASU 2018-13 on a prospective basis as of July 1, 2020. The adoption did not have a material effect on the Company's Consolidated Financial Statements. In March 2019, the FASB issued ASU 2019-02, “Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20) and Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350): Improvements to Accounting for Costs of Films and License Agreements for Program Materials (a consensus of the Emerging Issues Task Force)” (“ASU 2019-02”). The amendments in ASU 2019-02 align the impairment model in Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350) with the fair value model in Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20). The Company adopted the amendments in ASU 2019-02 on a prospective basis as of July 1, 2020. The adoption did not have a material effect on the Company's Consolidated Financial Statements. Refer to Note 13—Additional Financial Information for further discussion. Issued In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). The amendments in ASU 2019-12 remove certain exceptions to the general principles in Topic 740 and simplify other areas of Topic 740 including the accounting for and recognition of intraperiod tax allocation, deferred tax liabilities for outside basis differences for certain foreign subsidiaries, year-to-date losses in interim periods, deferred tax assets for goodwill in business combinations and franchise taxes in income tax expense. ASU 2019-12 is effective for the Company for annual and interim reporting periods beginning July 1, 2021, with early adoption permitted. The Company is currently evaluating the impact ASU 2019-12 will have on its Consolidated Financial Statements. |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregated Revenue by Type and Segment | The following tables present the Company’s disaggregated revenues by type and segment for the three and nine months ended March 31, 2021 and 2020: For the three months ended March 31, 2021 Digital Real Subscription Dow Jones Book News Media Other Total (in millions) Revenues: Circulation and subscription $ 6 $ 469 $ 329 $ — $ 272 $ — $ 1,076 Advertising 31 46 85 — 212 — 374 Consumer — — — 472 — — 472 Real estate 291 — — — — — 291 Other 23 8 7 18 66 — 122 Total Revenues $ 351 $ 523 $ 421 $ 490 $ 550 $ — $ 2,335 For the three months ended March 31, 2020 Digital Real Subscription Dow Jones Book News Media Other Total (in millions) Revenues: Circulation and subscription $ 9 $ 414 $ 303 $ — $ 240 $ — $ 966 Advertising 25 40 84 — 427 — 576 Consumer — — — 396 — — 396 Real estate 209 — — — — — 209 Other 18 8 10 16 66 1 119 Total Revenues $ 261 $ 462 $ 397 $ 412 $ 733 $ 1 $ 2,266 For the nine months ended March 31, 2021 Digital Real Subscription Dow Jones Book News Media Other Total (in millions) Revenues: Circulation and subscription $ 22 $ 1,352 $ 959 $ — $ 775 $ — $ 3,108 Advertising 89 151 270 — 644 — 1,154 Consumer — — — 1,436 — — 1,436 Real estate 807 — — — — — 807 Other 62 27 24 56 191 1 361 Total Revenues $ 980 $ 1,530 $ 1,253 $ 1,492 $ 1,610 $ 1 $ 6,866 For the nine months ended March 31, 2020 Digital Real Subscription Dow Jones Book News Media Other Total (in millions) Revenues: Circulation and subscription $ 28 $ 1,304 $ 888 $ — $ 730 $ 1 $ 2,951 Advertising 77 144 288 — 1,352 — 1,861 Consumer — — — 1,204 — — 1,204 Real estate 669 — — — — — 669 Other 53 29 33 55 229 1 400 Total Revenues $ 827 $ 1,477 $ 1,209 $ 1,259 $ 2,311 $ 2 $ 7,085 |
Summary of Deferred Revenue from Contracts with Customers | The following table presents changes in the deferred revenue balance for the three and nine months ended March 31, 2021 and 2020: For the three months ended For the nine months ended 2021 2020 2021 2020 (in millions) Balance, beginning of period $ 400 $ 411 $ 398 $ 428 Deferral of revenue 823 851 2,285 2,426 Recognition of deferred revenue (a) (780) (807) (2,260) (2,398) Other (b) 6 (68) 26 (69) Balance, end of period $ 449 $ 387 $ 449 $ 387 (a) For the three and nine months ended March 31, 2021, the Company recognized $224 million and $359 million, respectively, of revenue which was included in the opening deferred revenue balance. For the three and nine months ended March 31, 2020, the Company recognized $226 million and $371 million, respectively, of revenue which was included in the opening deferred revenue balance. (b) For the three and nine months ended March 31, 2020, the Company reclassified $46 million of deferred revenue to other current liabilities in connection with the sale of News America Marketing. |
Restructuring Programs (Tables)
Restructuring Programs (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Changes in Restructuring Program Liabilities | Changes in restructuring program liabilities were as follows: For the three months ended March 31, 2021 2020 One time Other costs Total One time Facility Other costs Total (in millions) Balance, beginning of period $ 32 $ 34 $ 66 $ 16 $ — $ 9 $ 25 Additions 20 10 30 19 — — 19 Payments (12) (8) (20) (17) — — (17) Other (2) — (2) — — — — Balance, end of period $ 38 $ 36 $ 74 $ 18 $ — $ 9 $ 27 For the nine months ended March 31, 2021 2020 One time Other costs Total One time Facility Other costs Total (in millions) Balance, beginning of period $ 64 $ 9 $ 73 $ 28 $ 2 $ 10 $ 40 Additions 55 38 93 53 — — 53 Payments (81) (11) (92) (63) — (1) (64) Other — — — — (2) — (2) Balance, end of period $ 38 $ 36 $ 74 $ 18 $ — $ 9 $ 27 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Schedule of Investments [Abstract] | |
Schedule of Investments | The Company’s investments were comprised of the following: Ownership Percentage as of March 31, 2021 As of As of (in millions) Equity method investments (a) various $ 123 $ 120 Equity securities (b) various 268 177 Total Investments $ 391 $ 297 (a) Equity method investments are primarily comprised of Foxtel’s investment in Nickelodeon Australia Joint Venture and, until December 2020, Elara, which operates PropTiger.com and Housing.com. In December 2020, the Company acquired a controlling interest in Elara and began consolidating its results. Refer to Note 3—Acquisitions for further discussion. (b) Equity securities are primarily comprised of certain investments in China and the Company’s investments in HT&E Limited, which operates a portfolio of Australian radio and outdoor media assets, and Tremor International Ltd (“Tremor”). |
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 For the nine months ended 2021 2020 2021 2020 (in millions) (in millions) Total gains (losses) recognized on equity securities $ 31 $ (17) $ 73 $ (22) Less: Net gains recognized on equity securities sold — — — — Unrealized gains (losses) recognized on equity securities held at end of period $ 31 $ (17) $ 73 $ (22) |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | The Company’s total borrowings consist of the following: Interest rate at March 31, 2021 Maturity at March 31, 2021 As of As of (in millions) Foxtel Group Credit facility 2019 (a) (c) 2.83 % Nov 22, 2022 $ 248 $ 371 Term loan facility 2019 (b) 6.25 % Nov 22, 2024 191 171 Working capital facility 2017 (a) (c) 2.83 % Nov 22, 2022 — — Telstra Facility (d) 7.81 % Dec 22, 2027 50 11 US private placement 2012 — USD portion — tranche 2 (e) 4.27 % Jul 25, 2022 201 200 US private placement 2012 — USD portion — tranche 3 (e) 4.42 % Jul 25, 2024 151 150 US private placement 2012 — AUD portion 7.04 % Jul 25, 2022 80 73 REA Group Credit facility 2018 (f) 0.91 % Apr 27, 2021 53 48 Credit facility 2019 (g) 0.91 % Dec 2, 2021 130 117 Credit facility 2020 (h) 2.06 % Dec 2, 2021 — — Finance lease and other liabilities 108 118 Total borrowings (i) 1,212 1,259 Less: current portion (j) (212) (76) Long-term borrowings $ 1,000 $ 1,183 (a) Borrowings under these facilities bear interest at a floating rate of the Australian BBSY plus an applicable margin of between 2.00% and 3.75% per annum depending on the Foxtel Debt Group’s (defined below) net leverage ratio. (b) Borrowings under this facility bear interest at a fixed rate of 6.25% per annum. (c) As of March 31, 2021, the Foxtel Debt Group had undrawn commitments of A$313 million under these facilities for which it pays a commitment fee of 45% of the applicable margin. (d) Borrowings under this facility bear interest at a variable rate of Australian BBSY plus a margin of 7.75%. The Company excludes borrowings under this facility from the Statements of Cash Flows as they are non-cash. (e) The carrying values of the borrowings include any fair value adjustments related to the Company’s fair value hedges. See Note 8—Financial Instruments and Fair Value Measurements. (f) Borrowings under this facility bear interest at a floating rate of the Australian BBSY plus a margin of between 0.85% and 2.75% depending on REA Group’s net leverage ratio. (g) Borrowings under this facility bear interest at a floating rate of the Australian BBSY plus a margin of between 0.85% and 2.00% depending on REA Group’s net leverage ratio. (h) Borrowings under this facility bear interest at a floating rate of the Australian BBSY plus a margin of 2.00% or 2.75% depending on REA Group’s net leverage ratio. (i) The Company’s outstanding borrowings as of March 31, 2021 were incurred by certain subsidiaries of NXE Australia Pty Limited (“Foxtel” and, together with such subsidiaries, the “Foxtel Debt Group”) and by REA Group and certain of its subsidiaries. Foxtel and REA Group are consolidated but non wholly-owned subsidiaries of News Corp. These borrowings are only guaranteed by Foxtel and REA Group and certain of their respective subsidiaries, as applicable, and are non-recourse to News Corp. (j) The Company classifies the current portion of long term debt as non-current liabilities on the Balance Sheets when it has the intent and ability to refinance the obligation on a long-term basis, in accordance with ASC 470-50 “Debt.” $29 million relates to the current portion of finance lease liabilities. |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Summary of Changes in Equity | The following tables summarize changes in equity for the three and nine months ended March 31, 2021 and 2020: For the three months ended March 31, 2021 Class A Common Class B Common Additional Accumulated Accumulated Total Non-controlling Total Shares Amount Shares Amount (in millions) Balance, December 31, 2020 391 $ 4 200 $ 2 $ 12,091 $ (2,976) $ (990) $ 8,131 $ 943 $ 9,074 Net income — — — — — 79 — 79 17 96 Other comprehensive income — — — — — — 25 25 4 29 Dividends — — — — (59) — — (59) (24) (83) Other — — — — 12 — — 12 1 13 Balance, March 31, 2021 391 $ 4 200 $ 2 $ 12,044 $ (2,897) $ (965) $ 8,188 $ 941 $ 9,129 For the three months ended March 31, 2020 Class A Common Class B Common Additional Accumulated Accumulated Total Non-controlling Total Shares Amount Shares Amount (in millions) Balance, December 31, 2019 389 $ 4 200 $ 2 $ 12,183 $ (2,114) $ (1,117) $ 8,958 $ 1,169 $ 10,127 Net loss — — — — — (730) — (730) (306) (1,036) Other comprehensive loss — — — — — — (351) (351) (109) (460) Dividends — — — — (59) — — (59) (19) (78) Other — — — — 13 (1) 2 14 1 15 Balance, March 31, 2020 389 $ 4 200 $ 2 $ 12,137 $ (2,845) $ (1,466) $ 7,832 $ 736 $ 8,568 For the nine months ended March 31, 2021 Class A Common Class B Common Additional Accumulated Accumulated Total Non-controlling Total Shares Amount Shares Amount (in millions) Balance, June 30, 2020 389 $ 4 200 $ 2 $ 12,148 $ (3,241) $ (1,331) $ 7,582 $ 807 $ 8,389 Net income — — — — — 344 — 344 60 404 Other comprehensive income — — — — — — 366 366 84 450 Dividends — — — — (118) — — (118) (45) (163) Other 2 — — — 14 — — 14 35 49 Balance, March 31, 2021 391 $ 4 200 $ 2 $ 12,044 $ (2,897) $ (965) $ 8,188 $ 941 $ 9,129 For the nine months ended March 31, 2020 Class A Class B Additional Accumulated Accumulated Total Non-controlling Total Shares Amount Shares Amount (in millions) Balance, June 30, 2019 386 $ 4 200 $ 2 $ 12,243 $ (1,979) $ (1,126) $ 9,144 $ 1,167 $ 10,311 Cumulative impact from adoption of new standards — — — — — 6 3 9 — 9 Net loss — — — — — (872) — (872) (272) (1,144) Other comprehensive loss — — — — — — (344) (344) (118) (462) Dividends — — — — (118) — — (118) (41) (159) Other 3 — — — 12 — 1 13 — 13 Balance, March 31, 2020 389 $ 4 200 $ 2 $ 12,137 $ (2,845) $ (1,466) $ 7,832 $ 736 $ 8,568 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 As of June 30, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in millions) Assets: Cross-currency interest rate derivatives - fair value hedges $ — $ 17 $ — $ 17 $ — $ 24 $ — $ 24 Cross-currency interest rate derivatives - cash flow hedges — — — — — 98 — 98 Cross-currency interest rate derivatives (a) — 71 — 71 — — — — Equity securities (b) 152 — 116 268 54 — 123 177 Total assets $ 152 $ 88 $ 116 $ 356 $ 54 $ 122 $ 123 $ 299 Liabilities: Foreign currency derivatives - cash flow hedges $ — $ 1 $ — $ 1 $ — $ 3 $ — $ 3 Interest rate derivatives - cash flow hedges — 12 — 12 — 16 — 16 Cross-currency interest rate derivatives - cash flow hedges — — — — — 18 — 18 Cross-currency interest rate derivatives (a) — 15 — 15 — — — — Total liabilities $ — $ 28 $ — $ 28 $ — $ 37 $ — $ 37 (a) The Company determined that its cross-currency interest rate derivatives are no longer considered highly effective as of December 31, 2020 primarily due to changes in foreign exchange and interest rates. (b) See Note 5—Investments. |
Summary of Equity Securities Classified as Level 3 | A rollforward of the Company’s equity securities classified as Level 3 is as follows: For the nine months ended March 31, 2021 2020 (in millions) Balance - beginning of period $ 123 $ 113 Additions (a) 10 17 Measurement adjustments 21 (3) Foreign exchange and other (b) (38) (2) Balance - end of period $ 116 $ 125 (a) Includes purchases of equity securities as well as the equity securities received as consideration for the sale of Unruly to Tremor in the third quarter of fiscal 2020. (b) During the three months ended December 31, 2020, the Company reclassified its investment in Tremor from Level 3 to Level 1 within the fair value hierarchy, as the sale restrictions are expected to lapse within 12 months. |
Summary of Hedges Classified as Current or Non-Current in Balance Sheets Based on Maturity Dates | Derivatives are classified as current or non-current in the Balance Sheets based on their maturity dates. Refer to the table below for further details: Balance Sheet Location As of March 31, As of June 30, (in millions) Cross-currency interest rate derivatives - fair value hedges Other non-current assets $ 17 $ 24 Cross-currency interest rate derivatives - cash flow hedges Other non-current assets — 98 Cross-currency interest rate derivatives (a) Other non-current assets 71 — Foreign currency derivatives - cash flow hedges Other current liabilities (1) (3) Interest rate derivatives - cash flow hedges Other non-current liabilities (12) (16) Cross-currency interest rate derivatives - cash flow hedges Other non-current liabilities — (18) Cross-currency interest rate derivatives (a) Other non-current liabilities (15) — (a) The Company determined that its cross-currency interest rate derivatives are no longer considered highly effective as of December 31, 2020 primarily due to changes in foreign exchange and interest rates. |
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 had on Accumulated other comprehensive loss and the Statements of Operations during the three and nine months ended March 31, 2021 and 2020 for both derivatives designated as cash flow hedges that continue to be highly effective and derivatives initially designated as cash flow hedges but for which hedge accounting was discontinued as of December 31, 2020: Gain (loss) recognized in Accumulated Other Comprehensive Loss for the three months ended March 31, (Gain) loss reclassified from Accumulated Other Comprehensive Loss for the three months ended March 31, Income statement 2021 2020 2021 2020 (in millions) Foreign currency derivatives - cash flow hedges $ 3 $ 5 $ — $ (1) Operating expenses Cross-currency interest rate derivatives — 43 (1) (33) Interest expense, net Interest rate derivatives - cash flow hedges — (3) 1 1 Interest expense, net Total $ 3 $ 45 $ — $ (33) Gain (loss) recognized in Accumulated Other Comprehensive Loss for the nine months ended March 31, (Gain) loss reclassified from Accumulated Other Comprehensive Loss for the nine months ended March 31, Income statement 2021 2020 2021 2020 (in millions) Foreign currency derivatives - cash flow hedges $ 3 $ 3 $ (1) $ (3) Operating expenses Cross-currency interest rate derivatives (15) 35 12 (30) Interest expense, net Interest rate derivatives - cash flow hedges (1) (6) 4 (4) Interest expense, net Total $ (13) $ 32 $ 15 $ (37) |
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 March 31, 2021 and June 30, 2020: As of March 31, 2021 As of June 30, (in millions) Borrowings: Carrying amount of hedged item $ 71 $ 71 Cumulative hedging adjustments included in the carrying amount 5 6 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Share | The following tables set forth the computation of basic and diluted earnings (loss) per share under ASC 260, “Earnings per Share”: For the three months ended For the nine months ended 2021 2020 2021 2020 (in millions, except per share amounts) Net income (loss) $ 96 $ (1,036) $ 404 $ (1,144) Less: Net (income) loss attributable to noncontrolling interests (17) 306 (60) 272 Net income (loss) attributable to News Corporation stockholders $ 79 $ (730) $ 344 $ (872) Weighted-average number of shares of common stock outstanding - basic 590.8 588.3 590.3 587.7 Dilutive effect of equity awards (a) 3.7 — 2.3 — Weighted-average number of shares of common stock outstanding - diluted 594.5 588.3 592.6 587.7 Net income (loss) attributable to News Corporation stockholders per share - basic and diluted $ 0.13 $ (1.24) $ 0.58 $ (1.48) (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 and nine months ended March 31, 2020 because their inclusion would have an antidilutive effect on the net loss per share. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue and Segment EBITDA from Segments to Consolidated | Segment information is summarized as follows: For the three months ended For the nine months ended March 31, 2021 2020 2021 2020 (in millions) Revenues: Digital Real Estate Services $ 351 $ 261 $ 980 $ 827 Subscription Video Services 523 462 1,530 1,477 Dow Jones 421 397 1,253 1,209 Book Publishing 490 412 1,492 1,259 News Media 550 733 1,610 2,311 Other — 1 1 2 Total revenues $ 2,335 $ 2,266 $ 6,866 $ 7,085 Segment EBITDA: Digital Real Estate Services $ 117 $ 74 $ 378 $ 274 Subscription Video Services 91 68 293 219 Dow Jones 82 51 263 176 Book Publishing 80 55 255 167 News Media 8 24 52 97 Other (80) (30) (178) (115) Depreciation and amortization (173) (160) (504) (484) Impairment and restructuring charges (30) (1,125) (93) (1,451) Equity losses of affiliates (5) (7) (9) (12) Interest expense, net (12) (9) (32) (13) Other, net 61 13 132 19 Income (loss) before income tax (expense) benefit 139 (1,046) 557 (1,123) Income tax (expense) benefit (43) 10 (153) (21) Net income (loss) $ 96 $ (1,036) $ 404 $ (1,144) |
Reconciliation of Assets from Segments to Consolidated | As of March 31, 2021 As of June 30, (in millions) Total assets: Digital Real Estate Services $ 2,660 $ 2,322 Subscription Video Services 3,618 3,459 Dow Jones 2,457 2,480 Book Publishing 2,386 2,212 News Media 2,320 1,994 Other (a) 1,565 1,497 Investments 391 297 Total assets $ 15,397 $ 14,261 (a) The Other segment primarily includes Cash and cash equivalents. |
Reconciliation of Goodwill and Intangible Assets from Segments to Consolidated | As of March 31, 2021 As of June 30, (in millions) Goodwill and intangible assets, net: Digital Real Estate Services $ 1,778 $ 1,555 Subscription Video Services 1,637 1,513 Dow Jones 1,713 1,722 Book Publishing 784 748 News Media 307 277 Total Goodwill and intangible assets, net $ 6,219 $ 5,815 |
Additional Financial Informat_2
Additional Financial Information (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Receivables, Net | Receivables, net consist of: As of March 31, 2021 As of June 30, (in millions) Receivables $ 1,415 $ 1,276 Less: allowances (80) (73) Receivables, net $ 1,335 $ 1,203 |
Components of Other Non-Current Assets | The following table sets forth the components of Other non-current assets: As of March 31, As of June 30, (in millions) Royalty advances to authors $ 363 $ 348 Retirement benefit assets 130 94 Inventory (a) 292 133 News America Marketing deferred consideration 124 111 Other 310 353 Total Other non-current assets $ 1,219 $ 1,039 (a) The balance as of March 31, 2021 primarily consists of the non-current portion of programming rights. Upon adoption of ASU 2019-02, the Company reclassified the current portion of its programming rights, totaling $151 million, from Inventory, net to Other non-current assets. The Company’s programming rights are substantially all monetized as a film group. |
Components of Other Current Liabilities | The following table sets forth the components of Other current liabilities: As of March 31, As of June 30, (in millions) Royalties and commissions payable $ 239 $ 169 Current operating lease liabilities 139 131 Allowance for sales returns 188 174 Current tax payable 6 50 Other 351 314 Total Other current liabilities $ 923 $ 838 |
Components of Other, Net | The following table sets forth the components of Other, net: For the three months ended March 31, For the nine months ended March 31, 2021 2020 2021 2020 (in millions) Remeasurement of equity securities $ 33 $ (17) $ 79 $ (22) Dividends received from equity security investments 6 1 9 2 Gain on sale of businesses (a) 18 20 18 20 Gain on remeasurement of previously-held interest in Elara (Note 3) — — 7 — Other 4 9 19 19 Total Other, net $ 61 $ 13 $ 132 $ 19 (a) During the three and nine months ended March 31, 2021, Move sold the assets associated with its Top Producer professional software and service product and recognized an $18 million gain on the sale. During the three and nine months ended March 31, 2020, REA Group contributed its businesses located in Singapore and Indonesia into a joint venture with 99.co in return for an equity method investment in the combined entity. As a result of the deconsolidation of these entities, REA Group recognized a $20 million gain in Other, net. |
Summary of Supplemental Cash Flow Information | The following table sets forth the Company’s cash paid for taxes and interest: For the nine months ended March 31, 2021 2020 (in millions) Cash paid for interest $ 41 $ 43 Cash paid for taxes $ 131 $ 93 |
Description of Business and B_3
Description of Business and Basis of presentation (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2020 | Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Effect of reclassification of expenses | $ 2 | $ 4 |
Revenues - Summary of Disaggreg
Revenues - Summary of Disaggregated Revenue by Type and by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 2,335 | $ 2,266 | $ 6,866 | $ 7,085 |
Circulation and subscription | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,076 | 966 | 3,108 | 2,951 |
Advertising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 374 | 576 | 1,154 | 1,861 |
Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 472 | 396 | 1,436 | 1,204 |
Real estate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 291 | 209 | 807 | 669 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 122 | 119 | 361 | 400 |
Digital Real Estate Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 351 | 261 | 980 | 827 |
Digital Real Estate Services | Circulation and subscription | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6 | 9 | 22 | 28 |
Digital Real Estate Services | Advertising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 31 | 25 | 89 | 77 |
Digital Real Estate Services | Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Digital Real Estate Services | Real estate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 291 | 209 | 807 | 669 |
Digital Real Estate Services | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 23 | 18 | 62 | 53 |
Subscription Video Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 523 | 462 | 1,530 | 1,477 |
Subscription Video Services | Circulation and subscription | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 469 | 414 | 1,352 | 1,304 |
Subscription Video Services | Advertising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 46 | 40 | 151 | 144 |
Subscription Video Services | Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Subscription Video Services | Real estate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Subscription Video Services | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8 | 8 | 27 | 29 |
Dow Jones | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 421 | 397 | 1,253 | 1,209 |
Dow Jones | Circulation and subscription | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 329 | 303 | 959 | 888 |
Dow Jones | Advertising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 85 | 84 | 270 | 288 |
Dow Jones | Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Dow Jones | Real estate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Dow Jones | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7 | 10 | 24 | 33 |
Book Publishing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 490 | 412 | 1,492 | 1,259 |
Book Publishing | Circulation and subscription | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Book Publishing | Advertising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Book Publishing | Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 472 | 396 | 1,436 | 1,204 |
Book Publishing | Real estate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Book Publishing | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 18 | 16 | 56 | 55 |
News Media | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 550 | 733 | 1,610 | 2,311 |
News Media | Circulation and subscription | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 272 | 240 | 775 | 730 |
News Media | Advertising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 212 | 427 | 644 | 1,352 |
News Media | Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
News Media | Real estate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
News Media | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 66 | 66 | 191 | 229 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 1 | 1 | 2 |
Other | Circulation and subscription | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 1 |
Other | Advertising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Other | Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Other | Real estate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 0 | $ 1 | $ 1 | $ 1 |
Revenues - Summary of Deferred
Revenues - Summary of Deferred Revenue from Contract with Customers (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Contract with Customer, Liability [Roll Forward] | ||||
Balance, beginning of period | $ 400 | $ 411 | $ 398 | $ 428 |
Deferral of revenue | 823 | 851 | 2,285 | 2,426 |
Recognition of deferred revenue | (780) | (807) | (2,260) | (2,398) |
Other | 6 | (68) | 26 | (69) |
Balance, end of period | 449 | 387 | 449 | 387 |
News America Marketing | ||||
Contract with Customer, Liability [Roll Forward] | ||||
Deferred revenue | 46 | 46 | ||
Deferred Revenue | ||||
Contract with Customer, Liability [Roll Forward] | ||||
Deferred revenue recognized | $ 224 | $ 226 | $ 359 | $ 371 |
Revenues - Revenue Remaining Pe
Revenues - Revenue Remaining Performance Obligation (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2021USD ($) | Mar. 31, 2021USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 116 | $ 296 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | 417 | 417 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 56 | $ 56 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 154 | $ 154 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 69 | $ 69 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Millions | Nov. 30, 2020USD ($) | Dec. 31, 2020USD ($)board_member | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2020USD ($) |
Schedule Of Business Acquisitions And Divestitures [Line Items] | |||||||
Goodwill | $ 4,304 | $ 4,304 | $ 3,951 | ||||
Previously held equity interest | $ 15 | ||||||
Nonoperating Income (Expense) | |||||||
Schedule Of Business Acquisitions And Divestitures [Line Items] | |||||||
Gain on remeasurement of previously-held interest in Elara | $ 0 | $ 0 | $ 7 | $ 0 | |||
REA Group | |||||||
Schedule Of Business Acquisitions And Divestitures [Line Items] | |||||||
Dilution of interest | 0.20% | ||||||
Ownership interest after all transactions | 61.40% | ||||||
Elara | |||||||
Schedule Of Business Acquisitions And Divestitures [Line Items] | |||||||
Cash payments | $ 69 | ||||||
Acquired finite-lived intangibles | 19 | ||||||
Goodwill | 113 | ||||||
Consideration transferred | 138 | ||||||
Fair value of noncontrolling interest | 37 | ||||||
Fair value of equity interest in acquiree | $ 22 | ||||||
Increase in equity interest | 22.10% | 39.00% | |||||
Number of board of directors | board_member | 9 | ||||||
Tangible liabilities | $ 5 | ||||||
Identifiable intangible assets | 31 | ||||||
Elara | Trade names | |||||||
Schedule Of Business Acquisitions And Divestitures [Line Items] | |||||||
Indefinite-lived intangible assets | $ 12 | ||||||
Elara | REA Group | |||||||
Schedule Of Business Acquisitions And Divestitures [Line Items] | |||||||
Current ownership interest | 13.50% | 59.70% | |||||
Increase in equity interest | 0.80% | 0.80% | |||||
Number of board seats held | board_member | 8 | ||||||
Technology | Elara | |||||||
Schedule Of Business Acquisitions And Divestitures [Line Items] | |||||||
Weighted average useful life | 5 years | ||||||
Avail | |||||||
Schedule Of Business Acquisitions And Divestitures [Line Items] | |||||||
Cash payments | $ 36 | ||||||
Cash acquired | 4 | ||||||
Contingent consideration | $ 8 | ||||||
Certain performance objective period | 3 years | ||||||
Earn-out liability | $ 4 | ||||||
Adjustment holdback | 6 | ||||||
Goodwill | 32 | ||||||
Avail | Technology | |||||||
Schedule Of Business Acquisitions And Divestitures [Line Items] | |||||||
Acquired finite-lived intangibles | $ 7 | ||||||
Weighted average useful life | 5 years |
Restructuring Programs - Additi
Restructuring Programs - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Additions | $ 30 | $ 19 | $ 93 | $ 53 |
News Media | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Additions | 18 | $ 13 | 61 | $ 37 |
Other Current Liabilities | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring liabilities, current | 46 | 46 | ||
Other Noncurrent Liabilities | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring liabilities, non-current | $ 28 | $ 28 |
Restructuring Programs - Schedu
Restructuring Programs - Schedule of Changes in Restructuring Program Liabilities (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liabilities, Beginning Balance | $ 66 | $ 25 | $ 73 | $ 40 |
Additions | 30 | 19 | 93 | 53 |
Payments | (20) | (17) | (92) | (64) |
Other | (2) | 0 | 0 | (2) |
Restructuring Liabilities, Ending Balance | 74 | 27 | 74 | 27 |
One time employee termination benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liabilities, Beginning Balance | 32 | 16 | 64 | 28 |
Additions | 20 | 19 | 55 | 53 |
Payments | (12) | (17) | (81) | (63) |
Other | (2) | 0 | 0 | 0 |
Restructuring Liabilities, Ending Balance | 38 | 18 | 38 | 18 |
Facility related costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liabilities, Beginning Balance | 0 | 2 | ||
Additions | 0 | 0 | ||
Payments | 0 | 0 | ||
Other | 0 | (2) | ||
Restructuring Liabilities, Ending Balance | 0 | 0 | ||
Other costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Liabilities, Beginning Balance | 34 | 9 | 9 | 10 |
Additions | 10 | 0 | 38 | 0 |
Payments | (8) | 0 | (11) | (1) |
Other | 0 | 0 | 0 | 0 |
Restructuring Liabilities, Ending Balance | $ 36 | $ 9 | $ 36 | $ 9 |
Investments - Schedule of Inves
Investments - Schedule of Investments (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Schedule of Investments [Abstract] | ||
Equity method investments | $ 123 | $ 120 |
Equity securities | 268 | 177 |
Total Investments | $ 391 | $ 297 |
Investments - Schedule of Total
Investments - Schedule of Total Gains and Losses on Equity Securities (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of Investments [Abstract] | ||||
Total gains (losses) recognized on equity securities | $ 31 | $ (17) | $ 73 | $ (22) |
Less: Net gains recognized on equity securities sold | 0 | 0 | 0 | 0 |
Unrealized gains (losses) recognized on equity securities held at end of period | $ 31 | $ (17) | $ 73 | $ (22) |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of Investments [Abstract] | ||||
Equity losses of affiliates | $ 5 | $ 7 | $ 9 | $ 12 |
Borrowings - Schedule of Borrow
Borrowings - Schedule of Borrowings (Detail) $ in Millions, $ in Millions | 9 Months Ended | |||
Mar. 31, 2021USD ($) | Mar. 31, 2021AUD ($) | Jun. 30, 2020USD ($) | ||
Debt and Financial Instruments [Line Items] | ||||
Finance lease and other liabilities | $ 108 | $ 118 | ||
Total borrowings | [1] | 1,212 | 1,259 | |
Less: current portion | [2] | (212) | (76) | |
Long-term borrowings | 1,000 | 1,183 | ||
Finance lease liabilities, current | $ 29 | |||
Credit facility 2019 | Australian BBSY | Minimum | Foxtel | ||||
Debt and Financial Instruments [Line Items] | ||||
Interest rate margin | 2.00% | |||
Credit facility 2019 | Australian BBSY | Maximum | Foxtel | ||||
Debt and Financial Instruments [Line Items] | ||||
Interest rate margin | 3.75% | |||
Credit facility 2019 | Foxtel | ||||
Debt and Financial Instruments [Line Items] | ||||
Total borrowings | [3],[4] | $ 248 | 371 | |
Interest rate | [3],[4] | 2.83% | 2.83% | |
Credit facility 2019 | REA Group | ||||
Debt and Financial Instruments [Line Items] | ||||
Total borrowings | [5] | $ 130 | 117 | |
Interest rate | [5] | 0.91% | 0.91% | |
Credit facility 2019 | REA Group | Australian BBSY | Minimum | Unsecured Revolving Credit Facility | ||||
Debt and Financial Instruments [Line Items] | ||||
Interest rate margin | 0.85% | |||
Credit facility 2019 | REA Group | Australian BBSY | Maximum | Unsecured Revolving Credit Facility | ||||
Debt and Financial Instruments [Line Items] | ||||
Interest rate margin | 2.00% | |||
Term loan facility 2019 | Foxtel | ||||
Debt and Financial Instruments [Line Items] | ||||
Total borrowings | [6] | $ 191 | 171 | |
Interest rate | [6] | 6.25% | 6.25% | |
Working Capital Facility 2017 | Foxtel | ||||
Debt and Financial Instruments [Line Items] | ||||
Debt instrument unused borrowing capacity percentage fee | 45.00% | |||
Debt instrument unused borrowing capacity | $ 313 | |||
Working Capital Facility 2017 | Foxtel | ||||
Debt and Financial Instruments [Line Items] | ||||
Total borrowings | [3],[4] | $ 0 | 0 | |
Interest rate | [3],[4] | 2.83% | 2.83% | |
Telstra Facility | Foxtel | ||||
Debt and Financial Instruments [Line Items] | ||||
Total borrowings | [7] | $ 50 | 11 | |
Interest rate | [7] | 7.81% | 7.81% | |
Telstra Facility | Foxtel | Australian BBSY | ||||
Debt and Financial Instruments [Line Items] | ||||
Interest rate margin | 7.75% | |||
US Private Placement 2012 - USD Portion -Tranche 2 | Foxtel | ||||
Debt and Financial Instruments [Line Items] | ||||
Total borrowings | [8] | $ 201 | 200 | |
Interest rate | [8] | 4.27% | 4.27% | |
US Private Placement 2012 - USD Portion -Tranche 3 | Foxtel | ||||
Debt and Financial Instruments [Line Items] | ||||
Total borrowings | [8] | $ 151 | 150 | |
Interest rate | [8] | 4.42% | 4.42% | |
US Private Placement 2012 - AUD Portion | Foxtel | ||||
Debt and Financial Instruments [Line Items] | ||||
Total borrowings | $ 80 | 73 | ||
Interest rate | 7.04% | 7.04% | ||
Credit Facility 2018 | REA Group | ||||
Debt and Financial Instruments [Line Items] | ||||
Total borrowings | [9] | $ 53 | 48 | |
Interest rate | [9] | 0.91% | 0.91% | |
Credit Facility 2018 | REA Group | Australian BBSY | Minimum | ||||
Debt and Financial Instruments [Line Items] | ||||
Interest rate margin | 0.85% | |||
Credit Facility 2018 | REA Group | Australian BBSY | Maximum | ||||
Debt and Financial Instruments [Line Items] | ||||
Interest rate margin | 2.75% | |||
Credit Facility 2020 | REA Group | ||||
Debt and Financial Instruments [Line Items] | ||||
Total borrowings | [10] | $ 0 | $ 0 | |
Interest rate | [10] | 2.06% | 2.06% | |
Credit Facility 2020 | REA Group | Australian BBSY | Minimum | ||||
Debt and Financial Instruments [Line Items] | ||||
Interest rate margin | 2.00% | |||
Credit Facility 2020 | REA Group | Australian BBSY | Maximum | ||||
Debt and Financial Instruments [Line Items] | ||||
Interest rate margin | 2.75% | |||
[1] | The Company’s outstanding borrowings as of March 31, 2021 were incurred by certain subsidiaries of NXE Australia Pty Limited (“Foxtel” and, together with such subsidiaries, the “Foxtel Debt Group”) and by REA Group and certain of its subsidiaries. Foxtel and REA Group are consolidated but non wholly-owned subsidiaries of News Corp. These borrowings are only guaranteed by Foxtel and REA Group and certain of their respective subsidiaries, as applicable, and are non-recourse to News Corp. | |||
[2] | The Company classifies the current portion of long term debt as non-current liabilities on the Balance Sheets when it has the intent and ability to refinance the obligation on a long-term basis, in accordance with ASC 470-50 “Debt.” $29 million relates to the current portion of finance lease liabilities. | |||
[3] | As of March 31, 2021, the Foxtel Debt Group had undrawn commitments of A$313 million under these facilities for which it pays a commitment fee of 45% of the applicable margin. | |||
[4] | Borrowings under these facilities bear interest at a floating rate of the Australian BBSY plus an applicable margin of between 2.00% and 3.75% per annum depending on the Foxtel Debt Group’s (defined below) net leverage ratio. | |||
[5] | Borrowings under this facility bear interest at a floating rate of the Australian BBSY plus a margin of between 0.85% and 2.00% depending on REA Group’s net leverage ratio. | |||
[6] | Borrowings under this facility bear interest at a fixed rate of 6.25% per annum. | |||
[7] | Borrowings under this facility bear interest at a variable rate of Australian BBSY plus a margin of 7.75%. The Company excludes borrowings under this facility from the Statements of Cash Flows as they are non-cash. | |||
[8] | The carrying values of the borrowings include any fair value adjustments related to the Company’s fair value hedges. See Note 8—Financial Instruments and Fair Value Measurements. | |||
[9] | Borrowings under this facility bear interest at a floating rate of the Australian BBSY plus a margin of between 0.85% and 2.75% depending on REA Group’s net leverage ratio. | |||
[10] | Borrowings under this facility bear interest at a floating rate of the Australian BBSY plus a margin of 2.00% or 2.75% depending on REA Group’s net leverage ratio. |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) $ in Millions | Apr. 09, 2021 | Jan. 01, 2021 | Mar. 31, 2021USD ($)extension | Mar. 31, 2021AUD ($)extension | Jun. 30, 2020USD ($) | |
Debt Instrument [Line Items] | ||||||
Long-term debt | [1] | $ 1,212 | $ 1,259 | |||
REA Group | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Operating income leverage ratio | 3.5 | |||||
Overdraft Facility 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings discount rate | 4.22% | |||||
Overdraft Facility 2020 | REA Group | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit maximum borrowing capacity | $ 20,000,000 | |||||
Long-term debt | $ 0 | |||||
Annual facility fee | 0.15% | |||||
2019 Credit Agreement | Unsecured Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit maximum borrowing capacity | $ 750 | |||||
Long-term debt | 0 | |||||
Credit sublimit under credit facility | $ 100 | |||||
Number of extension options | extension | 2 | 2 | ||||
Extension term | 1 year | |||||
2019 Credit Agreement | Revised Line Of Credit Facility | Unsecured Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit maximum borrowing capacity | $ 1,000 | |||||
Unused capacity commitment fee percentage | 0.20% | |||||
2019 Credit Agreement | Eurodollar | Revised Line Of Credit Facility | Unsecured Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin | 1.375% | |||||
2019 Credit Agreement | Base Rate | Revised Line Of Credit Facility | Unsecured Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin | 0.375% | |||||
Credit Facility 2019 and Working Capital Facility 2017 | Maximum | Foxtel | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin | 3.25% | |||||
Credit Facility 2019 and Working Capital Facility 2017 | Minimum | Foxtel | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin | 2.00% | |||||
[1] | The Company’s outstanding borrowings as of March 31, 2021 were incurred by certain subsidiaries of NXE Australia Pty Limited (“Foxtel” and, together with such subsidiaries, the “Foxtel Debt Group”) and by REA Group and certain of its subsidiaries. Foxtel and REA Group are consolidated but non wholly-owned subsidiaries of News Corp. These borrowings are only guaranteed by Foxtel and REA Group and certain of their respective subsidiaries, as applicable, and are non-recourse to News Corp. |
Equity - Summary of Changes in
Equity - Summary of Changes in Equity (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Class of Stock [Line Items] | ||||
Beginning balance | $ 9,074 | $ 10,127 | $ 8,389 | $ 10,311 |
Net income (loss) | 96 | (1,036) | 404 | (1,144) |
Other comprehensive income | 29 | (460) | 450 | (462) |
Dividends | (83) | (78) | (163) | (159) |
Other | 13 | 15 | 49 | 13 |
Ending balance | $ 9,129 | 8,568 | $ 9,129 | 8,568 |
Cumulative Effect, Period of Adoption, Adjustment | ||||
Class of Stock [Line Items] | ||||
Beginning balance | 9 | |||
Class A Common Stock | ||||
Class of Stock [Line Items] | ||||
Beginning balance, shares | 388,922,752 | |||
Ending balance, shares | 391,154,191 | 391,154,191 | ||
Class B Common Stock | ||||
Class of Stock [Line Items] | ||||
Beginning balance, shares | 199,630,240 | |||
Ending balance, shares | 199,630,240 | 199,630,240 | ||
Common Stock | Class A Common Stock | ||||
Class of Stock [Line Items] | ||||
Beginning balance | $ 4 | $ 4 | $ 4 | $ 4 |
Beginning balance, shares | 391,000,000 | 389,000,000 | 389,000,000 | 386,000,000 |
Other, shares | 0 | 0 | 2,000,000 | 3,000,000 |
Ending balance | $ 4 | $ 4 | $ 4 | $ 4 |
Ending balance, shares | 391,000,000 | 389,000,000 | 391,000,000 | 389,000,000 |
Common Stock | Class B Common Stock | ||||
Class of Stock [Line Items] | ||||
Beginning balance | $ 2 | $ 2 | $ 2 | $ 2 |
Beginning balance, shares | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 |
Ending balance | $ 2 | $ 2 | $ 2 | $ 2 |
Ending balance, shares | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 |
Additional Paid-in Capital | ||||
Class of Stock [Line Items] | ||||
Beginning balance | $ 12,091 | $ 12,183 | $ 12,148 | $ 12,243 |
Dividends | (59) | (59) | (118) | (118) |
Other | 12 | 13 | 14 | 12 |
Ending balance | 12,044 | 12,137 | 12,044 | 12,137 |
Accumulated Deficit | ||||
Class of Stock [Line Items] | ||||
Beginning balance | (2,976) | (2,114) | (3,241) | (1,979) |
Net income (loss) | 79 | (730) | 344 | (872) |
Other | (1) | 0 | ||
Ending balance | (2,897) | (2,845) | (2,897) | (2,845) |
Accumulated Deficit | Cumulative Effect, Period of Adoption, Adjustment | ||||
Class of Stock [Line Items] | ||||
Beginning balance | 6 | |||
Accumulated Other Comprehensive Loss | ||||
Class of Stock [Line Items] | ||||
Beginning balance | (990) | (1,117) | (1,331) | (1,126) |
Other comprehensive income | 25 | (351) | 366 | (344) |
Other | 2 | 1 | ||
Ending balance | (965) | (1,466) | (965) | (1,466) |
Accumulated Other Comprehensive Loss | Cumulative Effect, Period of Adoption, Adjustment | ||||
Class of Stock [Line Items] | ||||
Beginning balance | 3 | |||
Total News Corp Equity | ||||
Class of Stock [Line Items] | ||||
Beginning balance | 8,131 | 8,958 | 7,582 | 9,144 |
Net income (loss) | 79 | (730) | 344 | (872) |
Other comprehensive income | 25 | (351) | 366 | (344) |
Dividends | (59) | (59) | (118) | (118) |
Other | 12 | 14 | 14 | 13 |
Ending balance | 8,188 | 7,832 | 8,188 | 7,832 |
Total News Corp Equity | Cumulative Effect, Period of Adoption, Adjustment | ||||
Class of Stock [Line Items] | ||||
Beginning balance | 9 | |||
Non-controlling Interests | ||||
Class of Stock [Line Items] | ||||
Beginning balance | 943 | 1,169 | 807 | 1,167 |
Net income (loss) | 17 | (306) | 60 | (272) |
Other comprehensive income | 4 | (109) | 84 | (118) |
Dividends | (24) | (19) | (45) | (41) |
Other | 1 | 1 | 35 | 0 |
Ending balance | $ 941 | $ 736 | $ 941 | $ 736 |
Equity - Additional Information
Equity - Additional Information (Detail) - $ / shares | 1 Months Ended | 9 Months Ended | |
Feb. 28, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | |
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Shares repurchased during period (in shares) | 0 | 0 | |
Cash dividends declared per share of common stock (in usd per share) | $ 0.10 | ||
Class B Common Stock | |||
Class of Stock [Line Items] | |||
Shares repurchased during period (in shares) | 0 | 0 | |
Cash dividends declared per share of common stock (in usd per share) | $ 0.10 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Summary of Assets and Liabilities Measured At Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Assets: | ||
Equity securities | $ 268 | $ 177 |
Fair Value, Recurring | ||
Assets: | ||
Equity securities | 268 | 177 |
Total assets | 356 | 299 |
Liabilities: | ||
Total liabilities | 28 | 37 |
Fair Value, Recurring | Foreign currency derivatives | Cash Flow Hedging | ||
Liabilities: | ||
Derivative liabilities | 1 | 3 |
Fair Value, Recurring | Cross currency interest rate derivatives | ||
Assets: | ||
Derivative assets | 71 | 0 |
Liabilities: | ||
Derivative liabilities | 15 | 0 |
Fair Value, Recurring | Cross currency interest rate derivatives | Fair Value Hedging | ||
Assets: | ||
Derivative assets | 17 | 24 |
Fair Value, Recurring | Cross currency interest rate derivatives | Cash Flow Hedging | ||
Assets: | ||
Derivative assets | 0 | 98 |
Liabilities: | ||
Derivative liabilities | 0 | 18 |
Fair Value, Recurring | Interest rate derivatives | Cash Flow Hedging | ||
Liabilities: | ||
Derivative liabilities | 12 | 16 |
Fair Value, Recurring | Level 1 | ||
Assets: | ||
Equity securities | 152 | 54 |
Total assets | 152 | 54 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Fair Value, Recurring | Level 1 | Foreign currency derivatives | Cash Flow Hedging | ||
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 1 | Cross currency interest rate derivatives | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 1 | Cross currency interest rate derivatives | Fair Value Hedging | ||
Assets: | ||
Derivative assets | 0 | 0 |
Fair Value, Recurring | Level 1 | Cross currency interest rate derivatives | Cash Flow Hedging | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 1 | Interest rate derivatives | Cash Flow Hedging | ||
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 2 | ||
Assets: | ||
Equity securities | 0 | 0 |
Total assets | 88 | 122 |
Liabilities: | ||
Total liabilities | 28 | 37 |
Fair Value, Recurring | Level 2 | Foreign currency derivatives | Cash Flow Hedging | ||
Liabilities: | ||
Derivative liabilities | 1 | 3 |
Fair Value, Recurring | Level 2 | Cross currency interest rate derivatives | ||
Assets: | ||
Derivative assets | 71 | 0 |
Liabilities: | ||
Derivative liabilities | 15 | 0 |
Fair Value, Recurring | Level 2 | Cross currency interest rate derivatives | Fair Value Hedging | ||
Assets: | ||
Derivative assets | 17 | 24 |
Fair Value, Recurring | Level 2 | Cross currency interest rate derivatives | Cash Flow Hedging | ||
Assets: | ||
Derivative assets | 0 | 98 |
Liabilities: | ||
Derivative liabilities | 0 | 18 |
Fair Value, Recurring | Level 2 | Interest rate derivatives | Cash Flow Hedging | ||
Liabilities: | ||
Derivative liabilities | 12 | 16 |
Fair Value, Recurring | Level 3 | ||
Assets: | ||
Equity securities | 116 | 123 |
Total assets | 116 | 123 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Fair Value, Recurring | Level 3 | Foreign currency derivatives | Cash Flow Hedging | ||
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 3 | Cross currency interest rate derivatives | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 3 | Cross currency interest rate derivatives | Fair Value Hedging | ||
Assets: | ||
Derivative assets | 0 | 0 |
Fair Value, Recurring | Level 3 | Cross currency interest rate derivatives | Cash Flow Hedging | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 3 | Interest rate derivatives | Cash Flow Hedging | ||
Liabilities: | ||
Derivative liabilities | $ 0 | $ 0 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements - Summary of Equity Securities Classified as Level 3 (Detail) - Equity Securities - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance - beginning of period | $ 123 | $ 113 |
Additions | 10 | 17 |
Measurement adjustments | 21 | (3) |
Foreign exchange and other | (38) | (2) |
Balance - end of period | $ 116 | $ 125 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements - Summary of Hedges Classified as Current or Non-Current in Balance Sheets Based on Maturity Dates (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Foreign currency derivatives | Cash Flow Hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, reported under other current liabilities | $ (1) | $ (3) |
Cross currency interest rate derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, reported under other non-current assets | 71 | 0 |
Derivatives, reported under other non-current liabilities | (15) | 0 |
Cross currency interest rate derivatives | Cash Flow Hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, reported under other non-current assets | 0 | 98 |
Derivatives, reported under other non-current liabilities | 0 | (18) |
Cross currency interest rate derivatives | Fair Value Hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, reported under other non-current assets | 17 | 24 |
Interest rate derivatives | Cash Flow Hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, reported under other non-current liabilities | $ (12) | $ (16) |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements - Summary of Derivative Instruments Designated as Cash Flow Hedges (Detail) - Cash Flow Hedging - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (loss) recognized in Accumulated Other Comprehensive Loss | $ 3 | $ 45 | $ (13) | $ 32 |
(Gain) loss reclassified from Accumulated Other Comprehensive Loss | 0 | (33) | 15 | (37) |
Foreign currency derivatives | Operating expenses | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (loss) recognized in Accumulated Other Comprehensive Loss | 3 | 5 | 3 | 3 |
(Gain) loss reclassified from Accumulated Other Comprehensive Loss | 0 | (1) | (1) | (3) |
Cross currency interest rate derivatives | Interest expense, net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (loss) recognized in Accumulated Other Comprehensive Loss | 0 | 43 | (15) | 35 |
(Gain) loss reclassified from Accumulated Other Comprehensive Loss | (1) | (33) | 12 | (30) |
Interest rate derivatives | Interest expense, net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (loss) recognized in Accumulated Other Comprehensive Loss | 0 | (3) | (1) | (6) |
(Gain) loss reclassified from Accumulated Other Comprehensive Loss | $ 1 | $ 1 | $ 4 | $ (4) |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Measurements - Schedule of Fair Value Hedging Relationship By Balance Sheet (Detail) - Borrowings - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Carrying amount of hedged item | $ 71 | $ 71 |
Cumulative hedging adjustments included in the carrying amount | $ 5 | $ 6 |
Financial Instruments and Fai_8
Financial Instruments and Fair Value Measurements - Additional Information (Detail) $ in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2021USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021AUD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Stockholders' equity | $ 8,188 | $ 8,188 | $ 7,582 | |||
Foreign Exchange Contract | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Estimates of net derivative losses related to cash flow hedges included in Accumulated other comprehensive loss | 1 | 1 | ||||
Cross currency interest rate derivatives | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Notional value of derivative | 280 | 280 | ||||
Estimates of net derivative losses related to cash flow hedges included in Accumulated other comprehensive loss | (5) | (5) | ||||
Cross currency interest rate derivatives | Other , net | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Gain from discontinued cash flow hedges | 5 | 7 | ||||
Interest Rate Swap | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Estimates of net derivative losses related to cash flow hedges included in Accumulated other comprehensive loss | 5 | 5 | ||||
Cash Flow Hedging | Accounting Standards Update 2017-12 | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Stockholders' equity | $ 5 | |||||
Cash Flow Hedging | Foreign Exchange Contract | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Notional value of derivative | 11 | $ 11 | ||||
Cash Flow Hedging | Foreign Exchange Contract | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Term of contract | 1 year | |||||
Cash Flow Hedging | Interest Rate Contract | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Notional value of derivative | $ 300 | |||||
Fair Value Hedging | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Notional value of derivative | 70 | $ 70 | ||||
Fair Value Hedging | Accounting Standards Update 2017-12 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Adjustments increased the carrying value of long-term debt | $ 0 | 0 | ||||
Amount recognized in earnings for ineffective portion of derivative instruments designated as cash flow hedges | $ 1 | $ 0 |
Earnings (Loss) Per Share - Com
Earnings (Loss) Per Share - Computation of Basic And Diluted Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 96 | $ (1,036) | $ 404 | $ (1,144) |
Less: Net (income) loss attributable to noncontrolling interests | (17) | 306 | (60) | 272 |
Net income (loss) attributable to News Corporation stockholders | $ 79 | $ (730) | $ 344 | $ (872) |
Weighted-average number of shares of common stock outstanding - basic (in shares) | 590.8 | 588.3 | 590.3 | 587.7 |
Dilutive effect of equity awards (in shares) | 3.7 | 0 | 2.3 | 0 |
Weighted-average number of shares of common stock outstanding - diluted | 594.5 | 588.3 | 592.6 | 587.7 |
Net income (loss) attributable to News Corporation stockholders per share, basic and diluted (in dollars per share) | $ 0.13 | $ (1.24) | $ 0.58 | $ (1.48) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Loss Contingencies [Line Items] | |||||
Other current assets | $ 388 | $ 388 | $ 393 | ||
U.K. Newspaper Matters | |||||
Loss Contingencies [Line Items] | |||||
Selling, general and administrative expenses, net | 3 | $ 4 | 8 | $ 5 | |
Litigation liability accrued | 43 | 43 | |||
Impact due to reversal of previous accrued liability due to settlement with tax authority | $ 5 | ||||
U.K. Newspaper Matters Indemnification | 21st Century Fox | |||||
Loss Contingencies [Line Items] | |||||
Other current assets | $ 52 | $ 52 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 43 | $ (10) | $ 153 | $ 21 |
Income before income tax benefit (loss) | $ 139 | $ (1,046) | 557 | (1,123) |
Gross income tax paid | 131 | 93 | ||
Income tax refunds | $ 11 | $ 5 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Mar. 31, 2021CountrySegmentItemBrand | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | Segment | 6 |
Digital Real Estate Services | Move | |
Segment Reporting Information [Line Items] | |
Company ownership percentage | 80.00% |
Digital Real Estate Services | Move | REA Group | |
Segment Reporting Information [Line Items] | |
Ownership interest held by minority interest | 20.00% |
Digital Real Estate Services | REA Group | |
Segment Reporting Information [Line Items] | |
Company ownership percentage | 61.40% |
Book Publishing | Minimum | |
Segment Reporting Information [Line Items] | |
Number of countries | Country | 17 |
Number of branded publishing imprints | Brand | 120 |
Subscription Video Services | Foxtel | |
Segment Reporting Information [Line Items] | |
Company ownership percentage | 65.00% |
Subscription Video Services | Foxtel | Telstra | |
Segment Reporting Information [Line Items] | |
Ownership interest held by minority interest | 35.00% |
Subscription Video Services | Minimum | Foxtel | |
Segment Reporting Information [Line Items] | |
Number of channels | Item | 200 |
Segment Information - Reconcili
Segment Information - Reconciliation of Revenue and Segment EBITDA from Segments to Consolidated (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,335 | $ 2,266 | $ 6,866 | $ 7,085 |
Depreciation and amortization | (173) | (160) | (504) | (484) |
Impairment and restructuring charges | (30) | (1,125) | (93) | (1,451) |
Equity losses of affiliates | (5) | (7) | (9) | (12) |
Interest expense, net | (12) | (9) | (32) | (13) |
Other, net | 61 | 13 | 132 | 19 |
Income (loss) before income tax (expense) benefit | 139 | (1,046) | 557 | (1,123) |
Income tax (expense) benefit | (43) | 10 | (153) | (21) |
Net income (loss) | 96 | (1,036) | 404 | (1,144) |
Digital Real Estate Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 351 | 261 | 980 | 827 |
Total Segment EBITDA | 117 | 74 | 378 | 274 |
Subscription Video Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 523 | 462 | 1,530 | 1,477 |
Total Segment EBITDA | 91 | 68 | 293 | 219 |
Dow Jones | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 421 | 397 | 1,253 | 1,209 |
Total Segment EBITDA | 82 | 51 | 263 | 176 |
Book Publishing | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 490 | 412 | 1,492 | 1,259 |
Total Segment EBITDA | 80 | 55 | 255 | 167 |
News Media | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 550 | 733 | 1,610 | 2,311 |
Total Segment EBITDA | 8 | 24 | 52 | 97 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 1 | 1 | 2 |
Total Segment EBITDA | $ (80) | $ (30) | $ (178) | $ (115) |
Segment Information - Reconci_2
Segment Information - Reconciliation of Assets from Segments to Consolidated (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Investments | $ 391 | $ 297 |
Total assets | 15,397 | 14,261 |
Digital Real Estate Services | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,660 | 2,322 |
Subscription Video Services | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 3,618 | 3,459 |
Dow Jones | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,457 | 2,480 |
Book Publishing | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,386 | 2,212 |
News Media | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,320 | 1,994 |
Other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 1,565 | $ 1,497 |
Segment Information - Reconci_3
Segment Information - Reconciliation of Goodwill and Intangible Assets from Segments to Consolidated (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | $ 6,219 | $ 5,815 |
Digital Real Estate Services | ||
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | 1,778 | 1,555 |
Subscription Video Services | ||
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | 1,637 | 1,513 |
Dow Jones | ||
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | 1,713 | 1,722 |
Book Publishing | ||
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | 784 | 748 |
News Media | ||
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | $ 307 | $ 277 |
Additional Financial Informat_3
Additional Financial Information - Components of Receivables, Net (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Receivables [Abstract] | ||
Receivables | $ 1,415 | $ 1,276 |
Less: allowances | (80) | (73) |
Receivables, net | $ 1,335 | $ 1,203 |
Additional Financial Informat_4
Additional Financial Information - Components of Other Non-Current Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Other Income and Expenses [Line Items] | ||
Royalty advances to authors | $ 363 | $ 348 |
Retirement benefit assets | 130 | 94 |
Inventory | 292 | 133 |
News America Marketing deferred consideration | 124 | 111 |
Other | 310 | 353 |
Total Other non-current assets | 1,219 | 1,039 |
Inventory, net | (246) | $ (348) |
Revision of Prior Period, Accounting Standards Update, Adjustment | Accounting Standards Update 2019-02 | ||
Other Income and Expenses [Line Items] | ||
Total Other non-current assets | 151 | |
Inventory, net | $ 151 |
Additional Financial Informat_5
Additional Financial Information - Components of Other Current Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Other current liabilities | $ 923 | $ 838 |
Other Current Liabilities | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Royalties and commissions payable | 239 | 169 |
Current operating lease liabilities | 139 | 131 |
Allowance for sales returns | 188 | 174 |
Current tax payable | 6 | 50 |
Other | 351 | 314 |
Total Other current liabilities | $ 923 | $ 838 |
Additional Financial Informat_6
Additional Financial Information - Components of Other, Net Included in Statement of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Other Income and Expenses [Line Items] | ||||
Remeasurement of equity securities | $ 31 | $ (17) | $ 73 | $ (22) |
Total Other, net | 61 | 13 | 132 | 19 |
REA Group Limited | Equity Method Investments | ||||
Other Income and Expenses [Line Items] | ||||
Gain on sale of businesses | 20 | 20 | ||
Move | Top Producer | ||||
Other Income and Expenses [Line Items] | ||||
Gain on sale of businesses | 18 | 18 | ||
Nonoperating Income (Expense) | ||||
Other Income and Expenses [Line Items] | ||||
Remeasurement of equity securities | 33 | (17) | 79 | (22) |
Dividends received from equity security investments | 6 | 1 | 9 | 2 |
Gain on sale of businesses | 18 | 20 | 18 | 20 |
Gain on remeasurement of previously-held interest in Elara (Note 3) | 0 | 0 | 7 | 0 |
Other | 4 | 9 | 19 | 19 |
Total Other, net | $ 61 | $ 13 | $ 132 | $ 19 |
Additional Financial Informat_7
Additional Financial Information - Summary of Supplemental Cash Flow Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | ||
Cash paid for interest | $ 41 | $ 43 |
Cash paid for taxes | $ 131 | $ 93 |
Subsequent Events- Additional I
Subsequent Events- Additional Information (Detail) $ in Millions | May 07, 2021USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2021AUD ($) | Apr. 30, 2021USD ($) |
HMH Books and Media | ||||
Subsequent Event [Line Items] | ||||
Cash payments to acquire additional interests | $ 349,000,000 | |||
Mortgage Choice Limited | REA Group | ||||
Subsequent Event [Line Items] | ||||
Cash payments to acquire additional interests | $ 186,500,000 | $ 244 | ||
Subsequent Event | Senior Notes | Senior Notes Due 2029 | ||||
Subsequent Event [Line Items] | ||||
Debt amount | $ 1,000,000,000 | |||
Interest rate | 3.875% | |||
Subsequent Event | Investor's Business Daily | ||||
Subsequent Event [Line Items] | ||||
Consideration transferred | $ 275,000,000 |