Cover Page
Cover Page - shares | 3 Months Ended | |
Sep. 30, 2023 | Nov. 03, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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 | 2024 | |
Document Fiscal Period Focus | Q1 | |
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 | 380,669,889 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class B Common Stock, par value $0.01 per share | |
Trading Symbol | NWS | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 191,384,510 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues: | ||
Revenues | $ 2,499 | $ 2,478 |
Total Revenues | 2,499 | 2,478 |
Operating expenses | (1,273) | (1,273) |
Selling, general and administrative | (862) | (855) |
Depreciation and amortization | (171) | (179) |
Impairment and restructuring charges | (38) | (21) |
Equity losses of affiliates | (2) | (4) |
Interest expense, net | (23) | (27) |
Other, net | (35) | (18) |
Income before income tax expense | 95 | 101 |
Income tax expense | (37) | (35) |
Net income | 58 | 66 |
Less: Net income attributable to noncontrolling interests | (28) | (26) |
Net income attributable to News Corporation stockholders | $ 30 | $ 40 |
Net income attributable to News Corporation stockholders per share, basic and diluted | ||
Basic (in dollars per share) | $ 0.05 | $ 0.07 |
Diluted (in dollars per share) | $ 0.05 | $ 0.07 |
Circulation and subscription | ||
Revenues: | ||
Revenues | $ 1,129 | $ 1,111 |
Advertising | ||
Revenues: | ||
Revenues | 391 | 406 |
Consumer | ||
Revenues: | ||
Revenues | 502 | 467 |
Real estate | ||
Revenues: | ||
Revenues | 311 | 323 |
Other | ||
Revenues: | ||
Revenues | $ 166 | $ 171 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 58 | $ 66 | |
Other comprehensive loss: | |||
Foreign currency translation adjustments | (145) | (280) | |
Net change in the fair value of cash flow hedges | [1] | (1) | 17 |
Benefit plan adjustments, net | [2] | 15 | 12 |
Other comprehensive loss | (131) | (251) | |
Comprehensive loss | (73) | (185) | |
Less: Net income attributable to noncontrolling interests | (28) | (26) | |
Less: Other comprehensive loss attributable to noncontrolling interests | [3] | 31 | 56 |
Comprehensive loss attributable to News Corporation stockholders | $ (70) | $ (155) | |
[1]Net of income tax (benefit) expense of $(1) million and $6 million for the three months ended September 30, 2023 and 2022, respectively.[2]Net of income tax expense of $5 million and $4 million for the three months ended September 30, 2023 and 2022, respectively.[3]Primarily consists of foreign currency translation adjustments. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
Statement of Comprehensive Income [Abstract] | |||
Net change in the fair value of cash flow hedges, income tax expense (benefit) | [1] | $ (1) | $ 6 |
Pensions plans, income tax (expense) benefit | $ 5 | $ 4 | |
[1]Net of income tax (benefit) expense of $(1) million and $6 million for the three months ended September 30, 2023 and 2022, respectively. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2023 | Jun. 30, 2023 | |
Current assets: | |||
Cash and cash equivalents | $ 1,529 | $ 1,833 | |
Receivables, net | 1,559 | 1,425 | |
Inventory, net | 378 | 311 | |
Other current assets | 503 | 484 | |
Total current assets | 3,969 | 4,053 | |
Non-current assets: | |||
Investments | 391 | 427 | |
Property, plant and equipment, net | 1,947 | 2,042 | |
Operating lease right-of-use assets | 998 | 1,036 | |
Intangible assets, net | 2,417 | 2,489 | |
Goodwill | 5,104 | 5,140 | |
Deferred income tax assets | 360 | 393 | |
Other non-current assets | 1,289 | 1,341 | |
Total assets | 16,475 | 16,921 | |
Current liabilities: | |||
Accounts payable | 324 | 440 | |
Accrued expenses | 1,153 | 1,123 | |
Deferred revenue | 624 | 622 | |
Current borrowings | 61 | 27 | |
Other current liabilities | 875 | 953 | |
Total current liabilities | 3,037 | 3,165 | |
Non-current liabilities: | |||
Borrowings | 2,909 | 2,940 | |
Retirement benefit obligations | 134 | 134 | |
Deferred income tax liabilities | 147 | 163 | |
Operating lease liabilities | 1,081 | 1,128 | |
Other non-current liabilities | 431 | 446 | |
Commitments and contingencies | |||
Additional paid-in capital | 11,347 | 11,449 | |
Accumulated deficit | (2,114) | (2,144) | |
Accumulated other comprehensive loss | (1,347) | (1,247) | |
Total News Corporation stockholders’ equity | 7,892 | 8,064 | |
Noncontrolling interests | 844 | 881 | |
Total equity | 8,736 | 8,945 | |
Total liabilities and equity | 16,475 | 16,921 | |
Class A Common Stock | |||
Non-current liabilities: | |||
Common stock | [1] | 4 | 4 |
Class B Common Stock | |||
Non-current liabilities: | |||
Common stock | [2] | $ 2 | $ 2 |
[1] Class A common stock , $0.01 par value per share (“Class A Common Stock”), 1,500,000,000 shares authorized, 381,060,393 and 379,945,907 shares issued and outstanding, net of 27,368,413 treasury shares at par, at September 30, 2023 and June 30, 2023, respectively. Class B common stock , $0.01 par value per share (“Class B Common Stock”), 750,000,000 shares authorized, 191,564,740 and 192,013,909 shares issued and outstanding, net of 78,430,424 treasury shares at par, at September 30, 2023 and June 30, 2023, respectively. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2023 | Jun. 30, 2023 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued, net of treasury stock (in shares) | 381,060,393 | 379,945,907 |
Common stock outstanding, net of treasury stock (in shares) | 381,060,393 | 379,945,907 |
Treasury stock, shares (in 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 (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued, net of treasury stock (in shares) | 191,564,740 | 192,013,909 |
Common stock outstanding, net of treasury stock (in shares) | 191,564,740 | 192,013,909 |
Treasury stock, shares (in shares) | 78,430,424 | 78,430,424 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating activities: | ||
Net income | $ 58 | $ 66 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 171 | 179 |
Operating lease expense | 24 | 30 |
Equity losses of affiliates | 2 | 4 |
Cash distributions received from affiliates | 2 | 1 |
Impairment charges | 21 | 0 |
Other, net | 35 | 18 |
Deferred income taxes and taxes payable | 19 | (4) |
Change in operating assets and liabilities, net of acquisitions: | ||
Receivables and other assets | (129) | (96) |
Inventories, net | (55) | (61) |
Accounts payable and other liabilities | (203) | (168) |
Net cash used in operating activities | (55) | (31) |
Investing activities: | ||
Capital expenditures | (124) | (104) |
Acquisitions, net of cash acquired | (20) | (3) |
Investments in equity affiliates and other | (15) | (8) |
Proceeds from property, plant and equipment and other asset dispositions | 0 | 4 |
Other, net | 0 | (19) |
Net cash used in investing activities | (159) | (130) |
Financing activities: | ||
Borrowings | 925 | 328 |
Repayment of borrowings | (933) | (337) |
Repurchase of shares | (29) | (127) |
Dividends paid | (28) | (31) |
Other, net | 0 | 18 |
Net cash used in financing activities | (65) | (149) |
Net change in cash and cash equivalents | (279) | (310) |
Cash and cash equivalents, beginning of period | 1,833 | 1,822 |
Exchange movement on opening cash balance | (25) | (54) |
Cash and cash equivalents, end of period | $ 1,529 | $ 1,458 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION News Corporation (together with its subsidiaries, “News Corporation,” “News Corp,” the “Company,” “we” or “us”) is a global diversified media and information services company comprised of businesses across a range of media, including: digital real estate services, subscription video services in Australia, news and information services and book publishing. 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, 2024. The preparation of the Company’s Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts that are reported in the Consolidated Financial Statements and accompanying disclosures. Actual results 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, 2023 as filed with the Securities and Exchange Commission (the “SEC”) on August 15, 2023 (the “2023 Form 10-K”). The Company’s fiscal year ends on the Sunday closest to June 30. Fiscal 2024 and fiscal 2023 include 52 weeks. All references to the three months ended September 30, 2023 and 2022 relate to the three months ended October 1, 2023 and October 2, 2022, respectively. For convenience purposes, the Company continues to date its Consolidated Financial Statements as of September 30. |
Revenues
Revenues | 3 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | NOTE 2. REVENUES The following tables present the Company’s disaggregated revenues by type and segment for the three months ended September 30, 2023 and 2022: For the three months ended September 30, 2023 Digital Real Subscription Dow Jones Book News Media Other Total (in millions) Revenues: Circulation and subscription $ 3 $ 415 $ 436 $ — $ 275 $ — $ 1,129 Advertising 35 62 91 — 203 — 391 Consumer — — — 502 — — 502 Real estate 311 — — — — — 311 Other 54 9 10 23 70 — 166 Total Revenues $ 403 $ 486 $ 537 $ 525 $ 548 $ — $ 2,499 For the three months ended September 30, 2022 Digital Real Subscription Dow Jones Book News Media Other Total (in millions) Revenues: Circulation and subscription $ 3 $ 425 $ 414 $ — $ 269 $ — $ 1,111 Advertising 35 64 94 — 213 — 406 Consumer — — — 467 — — 467 Real estate 323 — — — — — 323 Other 60 13 7 20 71 — 171 Total Revenues $ 421 $ 502 $ 515 $ 487 $ 553 $ — $ 2,478 Contract liabilities and assets The Company’s deferred revenue balance primarily relates to amounts received from customers for subscriptions paid in advance of the services being provided. The following table presents changes in the deferred revenue balance for the three months ended September 30, 2023 and 2022: For the three months ended 2023 2022 (in millions) Balance, beginning of period $ 622 $ 604 Deferral of revenue 937 897 Recognition of deferred revenue (a) (929) (896) Other (6) (13) Balance, end of period $ 624 $ 592 (a) For the three months ended September 30, 2023 and 2022, the Company recognized $393 million and $408 million, respectively, of revenue which was included in the opening deferred revenue balance. Contract assets were immaterial for disclosure as of September 30, 2023 and 2022. Other revenue disclosures The Company typically expenses sales commissions to obtain a customer contract as 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 months ended September 30, 2023, the Company recognized approximately $104 million in revenues related to performance obligations that were satisfied or partially satisfied in a prior reporting period. The remaining transaction price related to unsatisfied performance obligations as of September 30, 2023 was approximately $1,313 million, of which approximately $391 million is expected to be recognized over the remainder of fiscal 2024, approximately $349 million is expected to be recognized in fiscal 2025 and approximately $194 million is expected to be recognized in fiscal 2026, 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 usage and (iii) variable consideration allocated to performance obligations accounted for under the series guidance that meets the allocation objective under Accounting Standards Codification (“ASC”) 606, “Revenue From Contracts With Customers.” |
Impairment and Restructuring Ch
Impairment and Restructuring Charges | 3 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Impairment and Restructuring Charges | NOTE 3. IMPAIRMENT AND RESTRUCTURING CHARGES Fiscal 2024 Impairment During the three months ended September 30, 2023, the Company recognized non-cash impairment charges of $21 million at the News Media segment related to the write-down of fixed assets associated with the proposed combination of certain United Kingdom (“U.K.”) printing operations with those of a third party. Fiscal 2024 Restructuring During the three months ended September 30, 2023, the Company recorded restructuring charges of $17 million primarily related to employee termination benefits, of which $6 million related to the News Media segment. The employee termination benefits recorded in the three months ended September 30, 2023 resulted from actions taken by the Company’s businesses in response to the 5% headcount reduction initiative announced in February 2023. Fiscal 2023 Restructuring During the three months ended September 30, 2022, the Company recorded restructuring charges of $21 million primarily related to employee termination benefits, of which $11 million related to the News Media segment. Changes in restructuring program liabilities were as follows: For the three months ended September 30, 2023 2022 One time Other costs Total One time Other costs Total (in millions) Balance, beginning of period $ 53 $ 41 $ 94 $ 25 $ 41 $ 66 Additions 16 1 17 20 1 21 Payments (39) (1) (40) (22) (2) (24) Other (1) — (1) (1) — (1) Balance, end of period $ 29 $ 41 $ 70 $ 22 $ 40 $ 62 As of September 30, 2023, restructuring liabilities of approximately $40 million were included in the Balance Sheet in Other current liabilities and $30 million were included in Other non-current liabilities. |
Investments
Investments | 3 Months Ended |
Sep. 30, 2023 | |
Schedule of Investments [Abstract] | |
Investments | NOTE 4. INVESTMENTS The Company’s investments were comprised of the following: Ownership Percentage as of September 30, 2023 As of As of (in millions) Equity method investments (a) various $ 183 $ 192 Equity securities (b) various 208 235 Total Investments $ 391 $ 427 (a) Equity method investments are primarily comprised of REA Group’s ownership interest in PropertyGuru Group Ltd. (“PropertyGuru”). (b) Equity securities are primarily comprised of Tremor International Ltd., certain investments in China, the Company’s investment in ARN Media Limited, which operates a portfolio of Australian radio media assets, and Dow Jones’ investment in an artificial intelligence-focused data analytics company. 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 2023 2022 (in millions) Total losses recognized on equity securities $ (23) $ (3) Less: Net gains recognized on equity securities sold — — Unrealized losses recognized on equity securities held at end of period $ (23) $ (3) Equity Losses of Affiliates |
Borrowings
Borrowings | 3 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | NOTE 5. BORROWINGS The Company’s total borrowings consist of the following: Interest rate at September 30, 2023 Maturity at September 30, 2023 As of As of (in millions) News Corporation 2022 Term loan A (a) 6.990 % Mar 31, 2027 $ 497 $ 497 2022 Senior notes 5.125 % Feb 15, 2032 492 492 2021 Senior notes 3.875 % May 15, 2029 990 989 Foxtel Group (b) 2024 Foxtel credit facility — tranche 1 (c)(d) 7.04 % Aug 1, 2026 335 — 2024 Foxtel credit facility — USD portion — tranche 2 (e) 8.64 % Aug 1, 2027 49 — 2024 Foxtel credit facility — tranche 3 (d) 7.19 % Aug 1, 2027 200 — 2017 Working capital facility (c) 7.04 % Aug 1, 2026 16 — Telstra facility 12.10 % Dec 22, 2027 99 100 2019 Credit facility (f) — % May 31, 2024 — 320 2019 Term loan facility (f) — % Nov 22, 2024 — 167 2012 US private placement — USD portion — tranche 3 (f) — % Jul 25, 2024 — 149 REA Group (b) 2024 REA credit facility — tranche 1 (g) 5.65 % Sep 15, 2028 76 — 2024 REA credit facility — tranche 2 (g) 5.35 % Sep 16, 2025 129 — 2024 Subsidiary facility (g) 5.57 % Sep 28, 2025 53 — 2022 Credit facility — tranche 1 (f) — % Sep 16, 2024 — 211 2022 Credit facility — tranche 2 (f) — % Sep 16, 2025 — — Finance lease liability 34 42 Total borrowings 2,970 2,967 Less: current portion (h) (61) (27) Long-term borrowings $ 2,909 $ 2,940 (a) The Company entered into an interest rate swap derivative to fix the floating rate interest component of its Term A Loans at 2.083%. For the three months ended September 30, 2023 the Company was paying interest at an effective interest rate of 3.583%. See Note 8—Financial Instruments and Fair Value Measurements. (b) These borrowings were incurred by certain subsidiaries of NXE Australia Pty Limited (the “Foxtel Group” and together with such subsidiaries, the “Foxtel Debt Group”) and REA Group and certain of its subsidiaries (REA Group and certain of its subsidiaries, the “REA Debt Group”), consolidated but non wholly-owned subsidiaries of News Corp, and are only guaranteed by the Foxtel Group and REA Group and their respective subsidiaries, as applicable, and are non-recourse to News Corp. (c) As of September 30, 2023, the Foxtel Debt Group had total undrawn commitments of A$304 million available under these facilities. (d) The Company entered into A$610 million of interest rate swap derivatives to fix the floating rate interest components of tranche 1 and tranche 3 of its 2024 Foxtel Credit Facility (described below) at approximately 4.30%. For the three months ended September 30, 2023 the Company was paying interest at an effective interest rate of 7.10% and 7.30% for tranche 1 and tranche 3, respectively. See Note 8—Financial Instruments and Fair Value Measurements. (e) The Company entered into a cross-currency interest rate swap derivative to fix the floating rate interest component of tranche 2 of its 2024 Foxtel Credit Facility (described below) at 4.38%. For the three months ended September 30, 2023 the Company was paying interest at an effective interest rate of 7.64%. See Note 8—Financial Instruments and Fair Value Measurements. (f) These borrowings were repaid during the three months ended September 30, 2023 using proceeds from the 2024 Foxtel Credit Facility and 2024 REA Credit Facility (described below), as applicable. (g) As of September 30, 2023, REA Group had total undrawn commitments of A$282 million available under these facilities. (h) 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.” $26 million and $27 million relates to the current portion of finance lease liabilities as of September 30, 2023 and June 30, 2023, respectively, with the remainder as of September 30, 2023 consisting of required principal repayments on the 2022 Term Loan A and 2024 Foxtel Credit Facility — tranches 2 and 3. Foxtel Group Debt Refinancing During the three months ended September 30, 2023, the Foxtel Group refinanced its A$610 million 2019 revolving credit facility, A$250 million term loan facility and tranche 3 of its 2012 U.S. private placement senior unsecured notes with the proceeds of a new A$1.2 billion syndicated credit facility (the “2024 Foxtel Credit Facility”). The 2024 Foxtel Credit Facility consists of three sub-facilities: (i) an A$817.5 million three year revolving credit facility (the “2024 Foxtel Credit Facility — tranche 1”), (ii) a US$48.7 million four year term loan facility (the “2024 Foxtel Credit Facility — tranche 2”) and (iii) an A$311.0 million four year term loan facility (the “2024 Foxtel Credit Facility — tranche 3”). In addition, the Foxtel Group amended its 2017 working capital facility to extend the maturity to August 2026 and modify the pricing. Depending on the Foxtel Group’s net leverage ratio, (i) borrowings under the 2024 Foxtel Credit Facility — tranche 1 and 2017 working capital facility bear interest at a rate of the Australian BBSY plus a margin of between 2.35% and 3.60%; (ii) borrowings under the 2024 Foxtel Credit Facility — tranche 2 bear interest at a rate based on a Term SOFR formula, as set forth in the 2024 Foxtel Credit Agreement, plus a margin of between 2.50% and 3.75%; and (iii) borrowings under the 2024 Foxtel Credit Facility — tranche 3 bear interest at a rate of the Australian BBSY plus a margin of between 2.50% and 3.75%. All tranches carry a commitment fee of 45% of the applicable margin on any undrawn balance during the relevant availability period. Tranches 2 and 3 of the 2024 Foxtel Credit Facility amortize on a proportionate basis in an aggregate annual amount equal to A$35 million in each of the first two years following closing and A$40 million in each of the two years thereafter. The agreements governing the Foxtel Debt Group’s external borrowings contain customary affirmative and negative covenants and events of default, with customary exceptions, including specified financial and non-financial covenants calculated in accordance with Australian International Financial Reporting Standards. Subject to certain exceptions, these covenants restrict or prohibit members of the Foxtel Debt Group from, among other things, undertaking certain transactions, disposing of certain properties or assets (including subsidiary stock), merging or consolidating with any other person, making financial accommodation available, giving guarantees, entering into certain other financing arrangements, creating or permitting certain liens, engaging in transactions with affiliates, making repayments of certain other loans and undergoing fundamental business changes. In addition, the agreements require the Foxtel Debt Group to maintain a ratio of net debt to Earnings Before Interest, Tax, Depreciation and Amortization (“EBITDA”), as adjusted under the applicable agreements, of not more than 3.25 to 1.0. The agreements also require the Foxtel Debt Group to maintain a net interest coverage ratio of not less than 3.5 to 1.0. There are no assets pledged as collateral for any of the borrowings. REA Group Debt REA Group Debt Refinancing During the three months ended September 30, 2023, REA Group entered into a new unsecured syndicated credit facility (the “2024 REA Credit Facility”) which replaces the 2022 Credit Facility and consists of two sub-facilities: (i) a five-year A$400 million revolving loan facility (the “2024 REA Credit Facility—tranche 1”) which was used to refinance tranche 1 of the 2022 Credit Facility and (ii) an A$200 million revolving loan facility representing the continuation of tranche 2 of the 2022 Credit Facility (the “2024 REA Credit Facility—tranche 2”). REA Group may request increases in the amount of the 2024 REA Credit Facility up to a maximum amount of A$500 million, subject to the terms and limitations set forth in the syndicated facility agreement. Borrowings under the 2024 REA Credit Facility — tranche 1 accrue interest at a rate of the Australian BBSY plus a margin of between 1.45% and 2.35%, depending on REA Group’s net leverage ratio. Borrowings under the 2024 REA Credit Facility — tranche 2 continue to accrue interest at a rate of the Australian BBSY plus a margin of between 1.15% and 2.25%, depending on REA Group’s net leverage ratio. Both tranches carry a commitment fee of 40% of the applicable margin on any undrawn balance. The syndicated facility agreement governing the 2024 REA Credit Facility requires REA Group to maintain (i) a net leverage ratio of not more than 3.5 to 1.0 and (ii) an interest coverage ratio of not less than 3.0 to 1.0. The agreement also contains certain other customary affirmative and negative covenants and events of default. Subject to certain exceptions, these covenants restrict or prohibit REA Group and its subsidiaries from, among other things, incurring or guaranteeing debt, disposing of certain properties or assets, merging or consolidating with any other person, making financial accommodation available, entering into certain other financing arrangements, creating or permitting certain liens, engaging in non arms’ length transactions with affiliates, undergoing fundamental business changes and making restricted payments. Subsidiary Financing During the three months ended September 30, 2023, REA Group entered into an A$83 million unsecured bilateral revolving credit facility (the “2024 Subsidiary Facility”). Proceeds of the 2024 Subsidiary Facility will be used to refinance an existing facility at one of its subsidiaries and to fund its business of providing short-term financing to real estate agents and vendors. Borrowings under the 2024 Subsidiary Facility accrue interest at a rate of the Australian BBSY plus a margin of 1.40% and undrawn balances carry a commitment fee of 40% of the applicable margin. The facility agreement governing the 2024 Subsidiary Facility permits the lender to cancel its commitment and declare all outstanding amounts immediately due and payable after a consultation period in specified circumstances, including if certain key operating measures of its subsidiary fall below the budgeted amount for two consecutive quarters. The agreement also contains certain other customary affirmative and negative covenants and events of default that are similar to those governing the 2024 REA Credit Facility. Covenants The Company’s borrowings and those of its consolidated subsidiaries contain customary representations, covenants and events of default, including those discussed in the Company’s 2023 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 applicable debt agreements may be declared immediately due and payable. The Company was in compliance with all such covenants at September 30, 2023. |
Equity
Equity | 3 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Equity | NOTE 6. EQUITY The following tables summarize changes in equity for the three months ended September 30, 2023 and 2022: For the three months ended September 30, 2023 Class A Common Class B Common Additional Accumulated Accumulated Total Non-controlling Total Shares Amount Shares Amount (in millions) Balance, June 30, 2023 380 $ 4 192 $ 2 $ 11,449 $ (2,144) $ (1,247) $ 8,064 $ 881 $ 8,945 Net income — — — — — 30 — 30 28 58 Other comprehensive loss — — — — — — (100) (100) (31) (131) Dividends — — — — (57) — — (57) (28) (85) Share repurchases (1) — — — (29) — — (29) — (29) Other 2 — — — (16) — — (16) (6) (22) Balance, September 30, 2023 381 $ 4 192 $ 2 $ 11,347 $ (2,114) $ (1,347) $ 7,892 $ 844 $ 8,736 For the three months ended September 30, 2022 Class A Class B Additional Accumulated Accumulated Total Non-controlling Total Shares Amount Shares Amount (in millions) Balance, June 30, 2022 388 $ 4 197 $ 2 $ 11,779 $ (2,293) $ (1,270) $ 8,222 $ 921 $ 9,143 Net income — — — — — 40 — 40 26 66 Other comprehensive loss — — — — — — (195) (195) (56) (251) Dividends — — — — (58) — — (58) (31) (89) Share repurchases (5) — (3) — (127) — — (127) — (127) Other 1 — — — (10) — — (10) (4) (14) Balance, September 30, 2022 384 $ 4 194 $ 2 $ 11,584 $ (2,253) $ (1,465) $ 7,872 $ 856 $ 8,728 Stock Repurchases The Company’s Board of Directors (the “Board of Directors”) has authorized a repurchase program to purchase up to $1 billion in the aggregate of the Company’s outstanding Class A Common Stock and Class B Common Stock (the “Repurchase Program”). The manner, timing, number and share price of any repurchases will be determined by the Company at its discretion and will depend upon such factors as the market price of the stock, general market conditions, applicable securities laws, alternative investment opportunities and other factors. The Repurchase Program has no time limit and may be modified, suspended or discontinued at any time. As of September 30, 2023, the remaining authorized amount under the Repurchase Program was approximately $548 million. During the three months ended September 30, 2023, the Company repurchased and subsequently retired 1.0 million shares of Class A Common Stock for approximately $20 million and 0.4 million shares of Class B Common Stock for approximately $9 million. During the three months ended September 30, 2022, the Company repurchased and subsequently retired 5.0 million shares of Class A Common Stock for approximately $84 million and 2.5 million shares of Class B Common Stock for approximately $43 million. Dividends In August 2023, 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. The dividend was paid on October 11, 2023 to stockholders of record as of September 13, 2023. The timing, declaration, amount and payment of future dividends to stockholders, if any, is within the discretion of the Board of Directors. The Board of Directors’ decisions regarding the payment of future dividends will depend on many factors, including the Company’s financial condition, earnings, capital requirements and debt facility covenants, other contractual restrictions, as well as legal requirements, regulatory constraints, industry practice, market volatility and other factors that the Board of Directors deems relevant. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | NOTE 7. 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 September 30, 2023 As of June 30, 2023 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in millions) Assets: Interest rate derivatives - cash flow hedges $ — $ 38 $ — $ 38 $ — $ 41 $ — $ 41 Foreign currency derivatives - cash flow hedges — 3 — 3 — 2 — 2 Cross-currency interest rate derivatives - fair value hedges — — — — — 9 — 9 Cross-currency interest rate derivatives — — — — — 37 — 37 Equity securities (a) 80 — 128 208 105 — 130 235 Total assets $ 80 $ 41 $ 128 $ 249 $ 105 $ 89 $ 130 $ 324 Liabilities: Cross-currency interest rate derivatives - fair value hedges — — — — — (1) — (1) Cross-currency interest rate derivatives — — — — — (2) — (2) Total liabilities $ — $ — $ — $ — $ — $ (3) $ — $ (3) (a) See Note 4—Investments. Equity securities The fair values of equity securities with quoted prices in active markets are determined based on the closing price at the end of each reporting period. These securities are classified as Level 1 in the fair value hierarchy outlined above. The fair values of equity securities without readily determinable fair market values are determined based on cost, less any impairment, plus or minus changes in fair value resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. These securities are classified as Level 3 in the fair value hierarchy outlined above. A rollforward of the Company’s equity securities classified as Level 3 is as follows: For the three months ended 2023 2022 (in millions) Balance - beginning of period $ 130 $ 103 Additions — 1 Measurement adjustments — 1 Foreign exchange and other (2) (1) Balance - end of period $ 128 $ 104 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, certain programming rights, product development costs and inventory purchases; and • interest rate risk: arising from fixed and floating rate Foxtel Debt Group and News Corporation borrowings. During the three months ended September 30, 2023, in connection with the 2024 Foxtel Credit Facility, the Company entered into (i) a cross-currency interest rate swap derivative with a notional amount of $49 million to exchange the U.S. dollar-denominated floating rate interest component of its 2024 Foxtel Credit Facility — Tranche 2 for an Australian dollar-denominated fixed rate of 4.375% and (ii) interest rate swap derivatives with notional amounts totaling A$610 million to exchange the floating rate interest component of the remaining tranches to fixed rates ranging from 4.248% to 4.313%. These cross-currency interest rate swap and interest rate swap derivatives are accounted for as cash flow hedges under ASC 815, “Derivatives and Hedging”. During the three months ended September 30, 2023, the Company settled its hedges and derivatives related to the 2019 Credit facility and the 2012 U.S. private placement - USD portion - tranche 3. A gain of $5 million was recognized in Other, net related to the settlement of cross-currency interest rate swap derivatives for which hedge accounting was previously discontinued, and a gain of $7 million was recognized within Interest expense, net related to the remaining net derivative gains in Accumulated other comprehensive loss. The Company formally designates qualifying derivatives as hedge relationships and applies hedge accounting when considered appropriate. The Company does not use derivative financial instruments for trading or speculative purposes. 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 As of (in millions) Interest rate derivatives - cash flow hedges Other current assets $ 16 $ 21 Foreign currency derivatives - cash flow hedges Other current assets 3 2 Cross currency interest rate derivatives Other current assets — 1 Interest rate derivatives - cash flow hedges Other non-current assets 22 20 Cross-currency interest rate derivatives - fair value hedges Other non-current assets — 9 Cross-currency interest rate derivatives Other non-current assets — 36 Cross-currency interest rate derivatives - fair value hedges Other current liabilities — (1) Cross-currency interest rate derivatives Other current liabilities — (2) Cash flow hedges The Company utilizes a combination of interest rate derivatives, foreign currency derivatives and cross-currency 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, certain programming rights, product development costs and inventory purchases. The total notional value of interest rate swap derivatives designated for hedging was approximately $494 million and A$610 million as of September 30, 2023 for News Corporation and Foxtel Debt Group borrowings, respectively. The maximum hedged term over which the Company is hedging exposure to variability in interest payments is to July 2027. As of September 30, 2023, the Company estimates that approximately $16 million of net derivative gains 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. The total notional value of foreign currency contract derivatives designated for hedging was $58 million as of September 30, 2023. The maximum hedged term over which the Company is hedging exposure to foreign currency fluctuations is less than one year. As of September 30, 2023, the Company estimates that approximately $3 million of net derivative gains 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 cross-currency interest rate swap derivatives designated for hedging was approximately $49 million as of September 30, 2023. The maximum hedged term over which the Company is hedging exposure to variability in interest and principal payments is to July 2027. As of September 30, 2023, the Company estimates that approximately nil 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 months ended September 30, 2023 and 2022 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 September 30, (Gain) loss reclassified from Accumulated Other Comprehensive Loss for the three months ended September 30, Income statement 2023 2022 2023 2022 (in millions) Interest rate derivatives - cash flow hedges $ 7 $ 22 $ (10) $ — Interest expense, net Foreign currency derivatives - cash flow hedges 2 1 — (1) Operating expenses Cross-currency interest rate derivatives — — (1) — Interest expense, net Total $ 9 $ 23 $ (11) $ (1) The amount recognized in Other, net in the Statements of Operations 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 a gain of approximately $3 million for the three months ended September 30, 2022. Other Fair Value Measurements As of September 30, 2023, the carrying value of the Company’s outstanding borrowings approximates the fair value. The 2022 Senior Notes and the 2021 Senior Notes 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 | 3 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | NOTE 8. 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 2023 2022 (in millions, except per share amounts) Net income $ 58 $ 66 Less: Net income attributable to noncontrolling interests (28) (26) Net income attributable to News Corporation stockholders $ 30 $ 40 Weighted-average number of shares of common stock outstanding - basic 572.3 581.3 Dilutive effect of equity awards 1.8 1.9 Weighted-average number of shares of common stock outstanding - diluted 574.1 583.2 Net income attributable to News Corporation stockholders per share - basic and diluted $ 0.05 $ 0.07 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 9. COMMITMENTS AND CONTINGENCIES Commitments The Company has commitments under certain firm contractual arrangements (“firm commitments”) to make future payments. These firm commitments secure the current and future rights to various assets and services to be used in the normal course of operations. As a result of entering into the 2024 Foxtel Credit Facility, the 2024 REA Credit Facility and the 2024 Subsidiary Facility during the three months ended September 30, 2023, the Company has presented its commitments associated with its borrowings and the related interest payments in the table below. See Note 5—Borrowings. The Company’s other commitments as of September 30, 2023 have not changed significantly from the disclosures included in the 2023 Form 10-K. As of September 30, 2023 Payments Due by Period Total Less than 1 year 1-3 years 3-5 years More than 5 years (in millions) Borrowings (a) $ 2,954 $ 35 $ 622 $ 797 $ 1,500 Interest payments on borrowings (b) 712 151 266 167 128 (a) See Note 5—Borrowings. (b) Reflects the Company’s expected future interest payments based on borrowings outstanding and interest rates applicable at September 30, 2023. Such rates are subject to change in future periods. See Note 5—Borrowings. 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 proceeding with Insignia Systems, Inc. (“Insignia”). In July 2019, Insignia filed a complaint in the U.S. District Court for the District of Minnesota against News America Marketing FSI L.L.C., News America Marketing In-Store Services L.L.C. and News Corporation alleging violations of federal and state antitrust laws and common law business torts. The complaint sought treble damages, injunctive relief and attorneys’ fees and costs. In July 2022, the parties agreed to settle the litigation and Insignia’s claims were dismissed with prejudice. HarperCollins Beginning in February 2021, a number of purported class action complaints have been filed in the U.S. District Court for the Southern District of New York (the “N.Y. District Court”) against Amazon.com, Inc. (“Amazon”) and certain publishers, including the Company’s subsidiary, HarperCollins Publishers, L.L.C. (“HarperCollins” and together with the other publishers, the “Publishers”), alleging violations of antitrust and competition laws. The complaints seek treble damages, injunctive relief and attorneys’ fees and costs. In September 2022, the N.Y. District Court granted Amazon and the Publishers’ motions to dismiss the complaints but gave the plaintiffs leave to amend. The plaintiffs filed amended complaints in both cases in November 2022, and in January 2023, Amazon and the Publishers filed motions to dismiss the amended complaints. In August 2023, the N.Y. District Court dismissed the complaints in one of the cases with prejudice. 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 $6 million for the three months ended September 30, 2023 and 2022, respectively. As of September 30, 2023, 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 $101 million. The amount to be indemnified by FOX of approximately $101 million was recorded as a receivable in Other current assets on the Balance Sheet as of September 30, 2023. 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 | 3 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10. INCOME TAXES At the end of each interim period, the Company estimates its annual effective tax rate and applies that rate to ordinary quarterly earnings. The tax expense or benefit related to significant, unusual or extraordinary items that will be separately reported or reported net of their related tax effect are individually computed and recognized in the interim period in which those items occur. In addition, the effects of changes in enacted tax laws or rates or tax status are recognized in the interim period in which the change occurs. For the three months ended September 30, 2023, the Company recorded income tax expense of $37 million on pre-tax income of $95 million, resulting in an effective tax rate that was higher than the U.S. statutory tax rate. The tax rate was impacted by foreign operations which are subject to higher tax rates and by valuation allowances recorded against tax benefits in certain businesses. For the three months ended September 30, 2022, the Company recorded income tax expense of $35 million on pre-tax income of $101 million, resulting in an effective tax rate that was higher than the U.S. statutory tax rate. The tax rate was impacted by foreign operations which are subject to higher tax rates and by valuation allowances recorded against tax benefits in certain businesses. 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 certain deferred tax assets 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 an audit with the Internal Revenue Service for the fiscal year ended June 30, 2018, as well as audits with certain U.S. states and foreign jurisdictions. The Company believes it has appropriately accrued for the expected outcome of uncertain tax matters and believes such liabilities represent a reasonable provision for taxes ultimately expected to be paid. However, the Company may need to accrue additional income tax expense and 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 Inflation Reduction Act (“IRA”), which was signed into law on August 16, 2022, imposes a 15% corporate minimum tax on corporations with over $1 billion of financial statement income. The Company has evaluated the relevant provisions of IRA along with guidance issued by the U.S. Treasury Department and is not expected to be subject to the corporate minimum tax. The Organization for Economic Co-operation and Development’s (“OECD”) Inclusive Framework on Base Erosion and Profit Shifting (“BEPS”) has been working to develop an agreement on a two-pillar approach to help address tax challenges arising from taxation of the digital economy. The two-pillar approach seeks to (1) allocate profits to market jurisdictions (“Pillar One”), and (2) ensure multinational enterprises pay a minimum level of tax regardless of where they are headquartered or where they operate (“Pillar Two”). Pillar One targets multinational groups with global revenue exceeding 20 billion Euros and a profit-to-revenue ratio of more than 10%. Companies subject to Pillar One will be required to allocate their profits and pay taxes to market jurisdictions. Based on the current proposed revenue and profit thresholds, the Company does not expect to be subject to Pillar One taxes. Pillar Two establishes a global minimum effective tax rate of 15% for multinational groups with annual global revenue exceeding 750 million Euros. On December 15, 2022, European Union Member States unanimously adopted a directive implementing the global minimum tax rules of Pillar Two requiring members to enact the directive into their national laws which are expected to begin going into effect for tax years beginning on or after January 1, 2024. The Company is currently evaluating the potential impact of the Pillar Two global minimum tax proposals on its consolidated financial statements and related disclosures. The Company paid gross income taxes of $25 million and $40 million during the three months ended September 30, 2023 and 2022, respectively, and received tax refunds of $8 million and $1 million, respectively. |
Segment Information
Segment Information | 3 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 11. 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, including Australia’s leading residential, commercial and share property websites, realestate.com.au, realcommercial.com.au and Flatmates.com.au, property.com.au and property portals in India. In addition, REA Group provides property-related data to the financial sector and financial services through a 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, advertising and services platform. Move offers real estate advertising solutions to agents and brokers, including its Connections SM Plus, Market VIP SM and Advantage SM Pro products as well as its referral-based services, ReadyConnect Concierge SM and UpNest. Move also offers online tools and services to do-it-yourself landlords and tenants. • Subscription Video Services —The Company’s Subscription Video Services segment provides sports, entertainment and news services to pay-TV and streaming subscribers and other commercial licensees, primarily via satellite and internet distribution, and consists of (i) the Company’s 65% interest in the Foxtel Group (with the remaining 35% interest held by Telstra, an ASX-listed telecommunications company) and (ii) Australian News Channel (“ANC”). The Foxtel Group is the largest Australian-based subscription television provider. Its Foxtel pay-TV service provides approximately 200 live channels and video on demand covering sports, general entertainment, movies, documentaries, music, children’s programming and news. Foxtel and the Group’s Kayo Sports streaming service offer the leading sports programming content in Australia, with broadcast rights to live sporting events including: National Rugby League, Australian Football League, Cricket Australia and various motorsports programming. The Foxtel Group’s other streaming services include BINGE , its entertainment streaming service, and Foxtel Now, a streaming service that provides access across Foxtel’s live and on-demand content. 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 whose products target individual consumers and enterprise customers and are distributed through a variety of media channels including newspapers, newswires, websites, mobile apps, newsletters, magazines, proprietary databases, live journalism, video and podcasts. Dow Jones’s consumer products include premier brands such as The Wall Street Journal , Barron’s , MarketWatch and Investor’s Business Daily . Dow Jones’s professional information products, which target enterprise customers, include Dow Jones Risk & Compliance, a leading provider of data solutions to help customers identify and manage regulatory, corporate and reputational risk with tools focused on financial crime, sanctions, trade and other compliance requirements, Dow Jones Energy (which includes OPIS), a leading provider of pricing data, news, insights, analysis and other information for energy commodities and key base chemicals, Factiva, a leading provider of global business content, and Dow Jones Newswires, which distributes real-time business news, information and analysis to financial professionals and investors. • Book Publishing —The Book Publishing segment consists of HarperCollins, the second largest consumer book publisher in the world, with operations in 15 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, Mariner, HarperCollins Children’s Books, Avon, Harlequin and Christian publishers Zondervan and Thomas Nelson, and publishes works by well-known authors such as Harper Lee, George Orwell, Agatha Christie and Zora Neale Hurston, as well as global author brands including J.R.R. Tolkien, C.S. Lewis, Daniel Silva, Karin Slaughter and Dr. Martin Luther King, Jr. It is also home to many beloved children’s books and authors and a significant Christian publishing business. • News Media —The News Media segment consists primarily of News Corp Australia, News UK and the New York Post and includes The Australian, The Daily Telegraph, Herald Sun, The Courier Mail, The Advertiser and the news.com.au website in Australia, The Times, The Sunday Times, The Sun, The Sun on Sunday and thesun.co.uk in the U.K. and the-sun.com in the U.S. This segment also includes Wireless Group, operator of talkSPORT, the leading sports radio network in the U.K., TalkTV in the U.K. and Storyful, a social media content agency. • Other —The Other segment consists primarily of general corporate overhead expenses, strategy costs and costs related to the U.K. Newspaper Matters. Segment EBITDA is defined as revenues less operating expenses and selling, general and administrative expenses. Segment EBITDA does not include: depreciation and amortization, impairment and restructuring charges, equity losses of affiliates, interest (expense) income, net, other, net and income tax (expense) benefit. Segment EBITDA may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what items should be included in the calculation of Segment EBITDA. Segment EBITDA is the primary measure used by the Company’s chief operating decision maker to evaluate the performance of, and allocate resources within, the Company’s businesses. Segment EBITDA provides management, investors and equity analysts with a measure to analyze the operating performance of each of the Company’s business segments and its enterprise value against historical data and competitors’ data, although historical results may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences). Segment information is summarized as follows: For the three months ended September 30, 2023 2022 (in millions) Revenues: Digital Real Estate Services $ 403 $ 421 Subscription Video Services 486 502 Dow Jones 537 515 Book Publishing 525 487 News Media 548 553 Other — — Total revenues $ 2,499 $ 2,478 Segment EBITDA: Digital Real Estate Services $ 122 $ 119 Subscription Video Services 93 111 Dow Jones 124 113 Book Publishing 65 39 News Media 14 18 Other (54) (50) Depreciation and amortization (171) (179) Impairment and restructuring charges (38) (21) Equity losses of affiliates (2) (4) Interest expense, net (23) (27) Other, net (35) (18) Income before income tax expense 95 101 Income tax expense (37) (35) Net income $ 58 $ 66 As of As of (in millions) Total assets: Digital Real Estate Services $ 2,915 $ 2,942 Subscription Video Services 2,634 2,812 Dow Jones 4,237 4,305 Book Publishing 2,648 2,629 News Media 1,949 2,023 Other (a) 1,701 1,783 Investments 391 427 Total assets $ 16,475 $ 16,921 (a) The Other segment primarily includes Cash and cash equivalents. As of As of (in millions) Goodwill and intangible assets, net: Digital Real Estate Services $ 1,779 $ 1,779 Subscription Video Services 1,230 1,288 Dow Jones 3,286 3,298 Book Publishing 932 958 News Media 294 306 Total Goodwill and intangible assets, net $ 7,521 $ 7,629 |
Additional Financial Informatio
Additional Financial Information | 3 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Financial Information | NOTE 12. 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 As of (in millions) Receivables $ 1,621 $ 1,482 Less: allowances (62) (57) Receivables, net $ 1,559 $ 1,425 Other Non-Current Assets The following table sets forth the components of Other non-current assets: As of As of (in millions) Royalty advances to authors $ 375 $ 376 Retirement benefit assets 132 134 Inventory (a) 241 267 News America Marketing deferred consideration 160 157 Other 381 407 Total Other non-current assets $ 1,289 $ 1,341 (a) Primarily consists of the non-current portion of programming rights. Other Current Liabilities The following table sets forth the components of Other current liabilities: As of As of (in millions) Royalties and commissions payable $ 242 $ 206 Current operating lease liabilities 107 112 Allowance for sales returns 149 154 Current tax payable 10 16 Other 367 465 Total Other current liabilities $ 875 $ 953 Other, net The following table sets forth the components of Other, net: For the three months ended September 30, 2023 2022 (in millions) Remeasurement of equity securities $ (23) $ (3) Dividends received from equity security investments 2 2 Gain on remeasurement of previously-held interest 4 — Other (18) (17) Total Other, net $ (35) $ (18) Supplemental Cash Flow Information The following table sets forth the Company’s cash paid for taxes and interest: For the three months ended September 30, 2023 2022 (in millions) Cash paid for interest $ 19 $ 28 Cash paid for taxes $ 25 $ 40 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) Attributable to Parent | $ 30 | $ 40 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 3 Months Ended |
Sep. 30, 2023 | |
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, 2024. The preparation of the Company’s Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts that are reported in the Consolidated Financial Statements and accompanying disclosures. Actual results 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, 2023 as filed with the Securities and Exchange Commission (the “SEC”) on August 15, 2023 (the “2023 Form 10-K”). The Company’s fiscal year ends on the Sunday closest to June 30. Fiscal 2024 and fiscal 2023 include 52 weeks. All references to the three months ended September 30, 2023 and 2022 relate to the three months ended October 1, 2023 and October 2, 2022, respectively. For convenience purposes, the Company continues to date its Consolidated Financial Statements as of September 30. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
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 months ended September 30, 2023 and 2022: For the three months ended September 30, 2023 Digital Real Subscription Dow Jones Book News Media Other Total (in millions) Revenues: Circulation and subscription $ 3 $ 415 $ 436 $ — $ 275 $ — $ 1,129 Advertising 35 62 91 — 203 — 391 Consumer — — — 502 — — 502 Real estate 311 — — — — — 311 Other 54 9 10 23 70 — 166 Total Revenues $ 403 $ 486 $ 537 $ 525 $ 548 $ — $ 2,499 For the three months ended September 30, 2022 Digital Real Subscription Dow Jones Book News Media Other Total (in millions) Revenues: Circulation and subscription $ 3 $ 425 $ 414 $ — $ 269 $ — $ 1,111 Advertising 35 64 94 — 213 — 406 Consumer — — — 467 — — 467 Real estate 323 — — — — — 323 Other 60 13 7 20 71 — 171 Total Revenues $ 421 $ 502 $ 515 $ 487 $ 553 $ — $ 2,478 |
Summary of Deferred Revenue from Contracts with Customers | The following table presents changes in the deferred revenue balance for the three months ended September 30, 2023 and 2022: For the three months ended 2023 2022 (in millions) Balance, beginning of period $ 622 $ 604 Deferral of revenue 937 897 Recognition of deferred revenue (a) (929) (896) Other (6) (13) Balance, end of period $ 624 $ 592 |
Impairment and Restructuring _2
Impairment and Restructuring Charges (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Changes in Restructuring Program Liabilities | Changes in restructuring program liabilities were as follows: For the three months ended September 30, 2023 2022 One time Other costs Total One time Other costs Total (in millions) Balance, beginning of period $ 53 $ 41 $ 94 $ 25 $ 41 $ 66 Additions 16 1 17 20 1 21 Payments (39) (1) (40) (22) (2) (24) Other (1) — (1) (1) — (1) Balance, end of period $ 29 $ 41 $ 70 $ 22 $ 40 $ 62 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Schedule of Investments [Abstract] | |
Schedule of Investments | The Company’s investments were comprised of the following: Ownership Percentage as of September 30, 2023 As of As of (in millions) Equity method investments (a) various $ 183 $ 192 Equity securities (b) various 208 235 Total Investments $ 391 $ 427 (a) Equity method investments are primarily comprised of REA Group’s ownership interest in PropertyGuru Group Ltd. (“PropertyGuru”). (b) Equity securities are primarily comprised of Tremor International Ltd., certain investments in China, the Company’s investment in ARN Media Limited, which operates a portfolio of Australian radio media assets, and Dow Jones’ investment in an artificial intelligence-focused data analytics company. |
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 2023 2022 (in millions) Total losses recognized on equity securities $ (23) $ (3) Less: Net gains recognized on equity securities sold — — Unrealized losses recognized on equity securities held at end of period $ (23) $ (3) |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | The Company’s total borrowings consist of the following: Interest rate at September 30, 2023 Maturity at September 30, 2023 As of As of (in millions) News Corporation 2022 Term loan A (a) 6.990 % Mar 31, 2027 $ 497 $ 497 2022 Senior notes 5.125 % Feb 15, 2032 492 492 2021 Senior notes 3.875 % May 15, 2029 990 989 Foxtel Group (b) 2024 Foxtel credit facility — tranche 1 (c)(d) 7.04 % Aug 1, 2026 335 — 2024 Foxtel credit facility — USD portion — tranche 2 (e) 8.64 % Aug 1, 2027 49 — 2024 Foxtel credit facility — tranche 3 (d) 7.19 % Aug 1, 2027 200 — 2017 Working capital facility (c) 7.04 % Aug 1, 2026 16 — Telstra facility 12.10 % Dec 22, 2027 99 100 2019 Credit facility (f) — % May 31, 2024 — 320 2019 Term loan facility (f) — % Nov 22, 2024 — 167 2012 US private placement — USD portion — tranche 3 (f) — % Jul 25, 2024 — 149 REA Group (b) 2024 REA credit facility — tranche 1 (g) 5.65 % Sep 15, 2028 76 — 2024 REA credit facility — tranche 2 (g) 5.35 % Sep 16, 2025 129 — 2024 Subsidiary facility (g) 5.57 % Sep 28, 2025 53 — 2022 Credit facility — tranche 1 (f) — % Sep 16, 2024 — 211 2022 Credit facility — tranche 2 (f) — % Sep 16, 2025 — — Finance lease liability 34 42 Total borrowings 2,970 2,967 Less: current portion (h) (61) (27) Long-term borrowings $ 2,909 $ 2,940 (a) The Company entered into an interest rate swap derivative to fix the floating rate interest component of its Term A Loans at 2.083%. For the three months ended September 30, 2023 the Company was paying interest at an effective interest rate of 3.583%. See Note 8—Financial Instruments and Fair Value Measurements. (b) These borrowings were incurred by certain subsidiaries of NXE Australia Pty Limited (the “Foxtel Group” and together with such subsidiaries, the “Foxtel Debt Group”) and REA Group and certain of its subsidiaries (REA Group and certain of its subsidiaries, the “REA Debt Group”), consolidated but non wholly-owned subsidiaries of News Corp, and are only guaranteed by the Foxtel Group and REA Group and their respective subsidiaries, as applicable, and are non-recourse to News Corp. (c) As of September 30, 2023, the Foxtel Debt Group had total undrawn commitments of A$304 million available under these facilities. (d) The Company entered into A$610 million of interest rate swap derivatives to fix the floating rate interest components of tranche 1 and tranche 3 of its 2024 Foxtel Credit Facility (described below) at approximately 4.30%. For the three months ended September 30, 2023 the Company was paying interest at an effective interest rate of 7.10% and 7.30% for tranche 1 and tranche 3, respectively. See Note 8—Financial Instruments and Fair Value Measurements. (e) The Company entered into a cross-currency interest rate swap derivative to fix the floating rate interest component of tranche 2 of its 2024 Foxtel Credit Facility (described below) at 4.38%. For the three months ended September 30, 2023 the Company was paying interest at an effective interest rate of 7.64%. See Note 8—Financial Instruments and Fair Value Measurements. (f) These borrowings were repaid during the three months ended September 30, 2023 using proceeds from the 2024 Foxtel Credit Facility and 2024 REA Credit Facility (described below), as applicable. (g) As of September 30, 2023, REA Group had total undrawn commitments of A$282 million available under these facilities. (h) 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.” $26 million and $27 million relates to the current portion of finance lease liabilities as of September 30, 2023 and June 30, 2023, respectively, with the remainder as of September 30, 2023 consisting of required principal repayments on the 2022 Term Loan A and 2024 Foxtel Credit Facility — tranches 2 and 3. |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Summary of Changes in Equity | The following tables summarize changes in equity for the three months ended September 30, 2023 and 2022: For the three months ended September 30, 2023 Class A Common Class B Common Additional Accumulated Accumulated Total Non-controlling Total Shares Amount Shares Amount (in millions) Balance, June 30, 2023 380 $ 4 192 $ 2 $ 11,449 $ (2,144) $ (1,247) $ 8,064 $ 881 $ 8,945 Net income — — — — — 30 — 30 28 58 Other comprehensive loss — — — — — — (100) (100) (31) (131) Dividends — — — — (57) — — (57) (28) (85) Share repurchases (1) — — — (29) — — (29) — (29) Other 2 — — — (16) — — (16) (6) (22) Balance, September 30, 2023 381 $ 4 192 $ 2 $ 11,347 $ (2,114) $ (1,347) $ 7,892 $ 844 $ 8,736 For the three months ended September 30, 2022 Class A Class B Additional Accumulated Accumulated Total Non-controlling Total Shares Amount Shares Amount (in millions) Balance, June 30, 2022 388 $ 4 197 $ 2 $ 11,779 $ (2,293) $ (1,270) $ 8,222 $ 921 $ 9,143 Net income — — — — — 40 — 40 26 66 Other comprehensive loss — — — — — — (195) (195) (56) (251) Dividends — — — — (58) — — (58) (31) (89) Share repurchases (5) — (3) — (127) — — (127) — (127) Other 1 — — — (10) — — (10) (4) (14) Balance, September 30, 2022 384 $ 4 194 $ 2 $ 11,584 $ (2,253) $ (1,465) $ 7,872 $ 856 $ 8,728 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured At Fair Value on Recurring Basis | The following table summarizes those assets and liabilities measured at fair value on a recurring basis: As of September 30, 2023 As of June 30, 2023 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in millions) Assets: Interest rate derivatives - cash flow hedges $ — $ 38 $ — $ 38 $ — $ 41 $ — $ 41 Foreign currency derivatives - cash flow hedges — 3 — 3 — 2 — 2 Cross-currency interest rate derivatives - fair value hedges — — — — — 9 — 9 Cross-currency interest rate derivatives — — — — — 37 — 37 Equity securities (a) 80 — 128 208 105 — 130 235 Total assets $ 80 $ 41 $ 128 $ 249 $ 105 $ 89 $ 130 $ 324 Liabilities: Cross-currency interest rate derivatives - fair value hedges — — — — — (1) — (1) Cross-currency interest rate derivatives — — — — — (2) — (2) Total liabilities $ — $ — $ — $ — $ — $ (3) $ — $ (3) (a) See Note 4—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 three months ended 2023 2022 (in millions) Balance - beginning of period $ 130 $ 103 Additions — 1 Measurement adjustments — 1 Foreign exchange and other (2) (1) Balance - end of period $ 128 $ 104 |
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 As of (in millions) Interest rate derivatives - cash flow hedges Other current assets $ 16 $ 21 Foreign currency derivatives - cash flow hedges Other current assets 3 2 Cross currency interest rate derivatives Other current assets — 1 Interest rate derivatives - cash flow hedges Other non-current assets 22 20 Cross-currency interest rate derivatives - fair value hedges Other non-current assets — 9 Cross-currency interest rate derivatives Other non-current assets — 36 Cross-currency interest rate derivatives - fair value hedges Other current liabilities — (1) Cross-currency interest rate derivatives Other current liabilities — (2) |
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 months ended September 30, 2023 and 2022 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 September 30, (Gain) loss reclassified from Accumulated Other Comprehensive Loss for the three months ended September 30, Income statement 2023 2022 2023 2022 (in millions) Interest rate derivatives - cash flow hedges $ 7 $ 22 $ (10) $ — Interest expense, net Foreign currency derivatives - cash flow hedges 2 1 — (1) Operating expenses Cross-currency interest rate derivatives — — (1) — Interest expense, net Total $ 9 $ 23 $ (11) $ (1) |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
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 2023 2022 (in millions, except per share amounts) Net income $ 58 $ 66 Less: Net income attributable to noncontrolling interests (28) (26) Net income attributable to News Corporation stockholders $ 30 $ 40 Weighted-average number of shares of common stock outstanding - basic 572.3 581.3 Dilutive effect of equity awards 1.8 1.9 Weighted-average number of shares of common stock outstanding - diluted 574.1 583.2 Net income attributable to News Corporation stockholders per share - basic and diluted $ 0.05 $ 0.07 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments by Fiscal Year Maturity | The Company’s other commitments as of September 30, 2023 have not changed significantly from the disclosures included in the 2023 Form 10-K. As of September 30, 2023 Payments Due by Period Total Less than 1 year 1-3 years 3-5 years More than 5 years (in millions) Borrowings (a) $ 2,954 $ 35 $ 622 $ 797 $ 1,500 Interest payments on borrowings (b) 712 151 266 167 128 (a) See Note 5—Borrowings. (b) Reflects the Company’s expected future interest payments based on borrowings outstanding and interest rates applicable at September 30, 2023. Such rates are subject to change in future periods. See Note 5—Borrowings. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue and Segment EBITDA from Segments to Consolidated | Segment information is summarized as follows: For the three months ended September 30, 2023 2022 (in millions) Revenues: Digital Real Estate Services $ 403 $ 421 Subscription Video Services 486 502 Dow Jones 537 515 Book Publishing 525 487 News Media 548 553 Other — — Total revenues $ 2,499 $ 2,478 Segment EBITDA: Digital Real Estate Services $ 122 $ 119 Subscription Video Services 93 111 Dow Jones 124 113 Book Publishing 65 39 News Media 14 18 Other (54) (50) Depreciation and amortization (171) (179) Impairment and restructuring charges (38) (21) Equity losses of affiliates (2) (4) Interest expense, net (23) (27) Other, net (35) (18) Income before income tax expense 95 101 Income tax expense (37) (35) Net income $ 58 $ 66 |
Reconciliation of Assets from Segments to Consolidated | As of As of (in millions) Total assets: Digital Real Estate Services $ 2,915 $ 2,942 Subscription Video Services 2,634 2,812 Dow Jones 4,237 4,305 Book Publishing 2,648 2,629 News Media 1,949 2,023 Other (a) 1,701 1,783 Investments 391 427 Total assets $ 16,475 $ 16,921 (a) The Other segment primarily includes Cash and cash equivalents. |
Reconciliation of Goodwill and Intangible Assets from Segments to Consolidated | As of As of (in millions) Goodwill and intangible assets, net: Digital Real Estate Services $ 1,779 $ 1,779 Subscription Video Services 1,230 1,288 Dow Jones 3,286 3,298 Book Publishing 932 958 News Media 294 306 Total Goodwill and intangible assets, net $ 7,521 $ 7,629 |
Additional Financial Informat_2
Additional Financial Information (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Receivables, Net | Receivables, net consist of: As of As of (in millions) Receivables $ 1,621 $ 1,482 Less: allowances (62) (57) Receivables, net $ 1,559 $ 1,425 |
Components of Other Non-Current Assets | The following table sets forth the components of Other non-current assets: As of As of (in millions) Royalty advances to authors $ 375 $ 376 Retirement benefit assets 132 134 Inventory (a) 241 267 News America Marketing deferred consideration 160 157 Other 381 407 Total Other non-current assets $ 1,289 $ 1,341 |
Components of Other Current Liabilities | The following table sets forth the components of Other current liabilities: As of As of (in millions) Royalties and commissions payable $ 242 $ 206 Current operating lease liabilities 107 112 Allowance for sales returns 149 154 Current tax payable 10 16 Other 367 465 Total Other current liabilities $ 875 $ 953 |
Components of Other, Net | The following table sets forth the components of Other, net: For the three months ended September 30, 2023 2022 (in millions) Remeasurement of equity securities $ (23) $ (3) Dividends received from equity security investments 2 2 Gain on remeasurement of previously-held interest 4 — Other (18) (17) Total Other, net $ (35) $ (18) |
Summary of Supplemental Cash Flow Information | The following table sets forth the Company’s cash paid for taxes and interest: For the three months ended September 30, 2023 2022 (in millions) Cash paid for interest $ 19 $ 28 Cash paid for taxes $ 25 $ 40 |
Revenues - Summary of Disaggreg
Revenues - Summary of Disaggregated Revenue by Type and by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 2,499 | $ 2,478 |
Circulation and subscription | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,129 | 1,111 |
Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 391 | 406 |
Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 502 | 467 |
Real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 311 | 323 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 166 | 171 |
Digital Real Estate Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 403 | 421 |
Digital Real Estate Services | Circulation and subscription | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3 | 3 |
Digital Real Estate Services | Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 35 | 35 |
Digital Real Estate Services | Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Digital Real Estate Services | Real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 311 | 323 |
Digital Real Estate Services | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 54 | 60 |
Subscription Video Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 486 | 502 |
Subscription Video Services | Circulation and subscription | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 415 | 425 |
Subscription Video Services | Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 62 | 64 |
Subscription Video Services | Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Subscription Video Services | Real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Subscription Video Services | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 9 | 13 |
Dow Jones | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 537 | 515 |
Dow Jones | Circulation and subscription | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 436 | 414 |
Dow Jones | Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 91 | 94 |
Dow Jones | Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Dow Jones | Real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Dow Jones | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 10 | 7 |
Book Publishing | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 525 | 487 |
Book Publishing | Circulation and subscription | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Book Publishing | Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Book Publishing | Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 502 | 467 |
Book Publishing | Real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Book Publishing | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 23 | 20 |
News Media | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 548 | 553 |
News Media | Circulation and subscription | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 275 | 269 |
News Media | Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 203 | 213 |
News Media | Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
News Media | Real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
News Media | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 70 | 71 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Other | Circulation and subscription | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Other | Advertising | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Other | Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Other | Real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Other | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 0 | $ 0 |
Revenues - Summary of Deferred
Revenues - Summary of Deferred Revenue from Contract with Customers (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Contract with Customer, Liability [Roll Forward] | ||
Balance, beginning of period | $ 622 | $ 604 |
Deferral of revenue | 937 | 897 |
Recognition of deferred revenue | (929) | (896) |
Other | (6) | (13) |
Balance, end of period | 624 | 592 |
Deferred Revenue | ||
Contract with Customer, Liability [Roll Forward] | ||
Deferred revenue recognized | $ 393 | $ 408 |
Revenues - Revenue Remaining Pe
Revenues - Revenue Remaining Performance Obligation (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2023 USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation satisfied in previous period | $ 104 |
Remaining unsatisfied performance obligations | 1,313 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining unsatisfied performance obligations | $ 391 |
Expected timing of satisfaction | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining unsatisfied performance obligations | $ 349 |
Expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining unsatisfied performance obligations | $ 194 |
Expected timing of satisfaction | 1 year |
Impairment and Restructuring _3
Impairment and Restructuring Charges - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Impairment charges | $ 21 | $ 0 |
Additions | $ 17 | 21 |
Expected number of positions to be reduced, percent | 0.05 | |
Other Current Liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liabilities, current | $ 40 | |
Other Noncurrent Liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liabilities, non-current | 30 | |
News Media | ||
Restructuring Cost and Reserve [Line Items] | ||
Additions | $ 6 | $ 11 |
Impairment and Restructuring _4
Impairment and Restructuring Charges - Schedule of Changes in Restructuring Program Liabilities (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of period | $ 94 | $ 66 |
Additions | 17 | 21 |
Payments | (40) | (24) |
Other | (1) | (1) |
Balance, end of period | 70 | 62 |
One time employee termination benefits | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of period | 53 | 25 |
Additions | 16 | 20 |
Payments | (39) | (22) |
Other | (1) | (1) |
Balance, end of period | 29 | 22 |
Other costs | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of period | 41 | 41 |
Additions | 1 | 1 |
Payments | (1) | (2) |
Other | 0 | 0 |
Balance, end of period | $ 41 | $ 40 |
Investments - Schedule of Inves
Investments - Schedule of Investments (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Jun. 30, 2023 |
Schedule of Investments [Abstract] | ||
Equity method investments | $ 183 | $ 192 |
Equity securities | 208 | 235 |
Total Investments | $ 391 | $ 427 |
Investments - Schedule of Total
Investments - Schedule of Total Gains and Losses on Equity Securities (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Investments [Abstract] | ||
Total losses recognized on equity securities | $ (23) | $ (3) |
Less: Net gains recognized on equity securities sold | 0 | 0 |
Unrealized losses recognized on equity securities held at end of period | $ (23) | $ (3) |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Investments [Abstract] | ||
Equity losses of affiliates | $ 2 | $ 4 |
Borrowings - Schedule of Borrow
Borrowings - Schedule of Borrowings (Detail) $ in Millions, $ in Millions | Sep. 30, 2023 USD ($) | Sep. 30, 2023 AUD ($) | Jun. 30, 2023 USD ($) |
Debt and Financial Instruments [Line Items] | |||
Total borrowings | $ 2,970 | $ 2,967 | |
Finance lease liability | 34 | 42 | |
Less: current portion | (61) | (27) | |
Long-term borrowings | 2,909 | 2,940 | |
Finance lease liabilities, current | $ 26 | 27 | |
2024 Foxtel credit facility — tranche 1 | Foxtel | |||
Debt and Financial Instruments [Line Items] | |||
Interest rate | 7.04% | 7.04% | |
Total borrowings | $ 335 | 0 | |
2024 Foxtel credit facility — USD portion — tranche 2 | Foxtel | |||
Debt and Financial Instruments [Line Items] | |||
Interest rate | 8.64% | 8.64% | |
Total borrowings | $ 49 | 0 | |
2024 Foxtel credit facility — tranche 3 | Foxtel | |||
Debt and Financial Instruments [Line Items] | |||
Interest rate | 7.19% | 7.19% | |
Total borrowings | $ 200 | 0 | |
2017 Working capital facility | Foxtel | Unsecured Revolving Credit Facility | |||
Debt and Financial Instruments [Line Items] | |||
Debt instrument unused borrowing capacity | $ 304 | ||
2017 Working capital facility | New Foxtel | |||
Debt and Financial Instruments [Line Items] | |||
Interest rate | 7.04% | 7.04% | |
Total borrowings | $ 16 | 0 | |
Telstra facility | Foxtel | |||
Debt and Financial Instruments [Line Items] | |||
Interest rate | 12.10% | 12.10% | |
Total borrowings | $ 99 | 100 | |
2019 Credit facility | Foxtel | |||
Debt and Financial Instruments [Line Items] | |||
Interest rate | 0% | 0% | |
Total borrowings | $ 0 | 320 | |
2019 Term loan facility | Foxtel | |||
Debt and Financial Instruments [Line Items] | |||
Interest rate | 0% | 0% | |
Total borrowings | $ 0 | 167 | |
2012 US private placement — USD portion — tranche 3 | New Foxtel | |||
Debt and Financial Instruments [Line Items] | |||
Interest rate | 0% | 0% | |
Total borrowings | $ 0 | 149 | |
2024 REA credit facility — tranche 1 | REA Group | |||
Debt and Financial Instruments [Line Items] | |||
Interest rate | 5.65% | 5.65% | |
Total borrowings | $ 76 | 0 | |
2024 REA credit facility — tranche 2 | REA Group | |||
Debt and Financial Instruments [Line Items] | |||
Interest rate | 5.35% | 5.35% | |
Total borrowings | $ 129 | 0 | |
2024 Subsidiary facility | REA Group | |||
Debt and Financial Instruments [Line Items] | |||
Interest rate | 5.57% | 5.57% | |
Total borrowings | $ 53 | 0 | |
Debt instrument unused borrowing capacity | $ 282 | ||
2022 Credit facility — tranche 1 | REA Group | |||
Debt and Financial Instruments [Line Items] | |||
Interest rate | 0% | 0% | |
Total borrowings | $ 0 | 211 | |
2022 Credit facility — tranche 2 | REA Group | |||
Debt and Financial Instruments [Line Items] | |||
Interest rate | 0% | 0% | |
Total borrowings | $ 0 | 0 | |
News Corporation Borrowings | 2022 Term loan A | |||
Debt and Financial Instruments [Line Items] | |||
Interest rate | 6.99% | 6.99% | |
Total borrowings | $ 497 | 497 | |
Fixed interest rate of derivative | 2.083% | 2.083% | |
Effective interest rate | 3.583% | 3.583% | |
News Corporation Borrowings | 2022 Senior notes | |||
Debt and Financial Instruments [Line Items] | |||
Interest rate | 5.125% | 5.125% | |
Total borrowings | $ 492 | 492 | |
News Corporation Borrowings | 2021 Senior notes | |||
Debt and Financial Instruments [Line Items] | |||
Interest rate | 3.875% | 3.875% | |
Total borrowings | $ 990 | $ 989 | |
News Corporation Borrowings | 2024 Foxtel credit facility — tranche 1 | |||
Debt and Financial Instruments [Line Items] | |||
Fixed interest rate of derivative | 4.30% | 4.30% | |
Effective interest rate | 7.10% | 7.10% | |
News Corporation Borrowings | 2024 Foxtel credit facility — USD portion — tranche 2 | |||
Debt and Financial Instruments [Line Items] | |||
Fixed interest rate of derivative | 4.38% | 4.38% | |
Effective interest rate | 7.64% | 7.64% | |
News Corporation Borrowings | 2024 Foxtel credit facility — tranche 3 | |||
Debt and Financial Instruments [Line Items] | |||
Fixed interest rate of derivative | 4.30% | 4.30% | |
Effective interest rate | 7.30% | 7.30% |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) | 3 Months Ended | ||
Aug. 14, 2023 AUD ($) | Sep. 30, 2023 AUD ($) facility | Sep. 30, 2023 USD ($) facility | |
Foxtel Group Debt Refinancing | |||
Debt Instrument [Line Items] | |||
Debt instrument covenant earning before interest tax depreciation and amortization | 3.25 | ||
Debt instrument covenant interest coverage ratio | 3.5 | ||
Line of Credit | Foxtel Group Debt Refinancing | |||
Debt Instrument [Line Items] | |||
Line of credit, number of sub-facilities | facility | 3 | 3 | |
Line of Credit | Foxtel Group Debt Refinancing | Credit Facility Fiscal Two Thousand And Nineteen | |||
Debt Instrument [Line Items] | |||
Line of credit maximum borrowing capacity | $ 250,000,000 | ||
Line of Credit | Foxtel Group Debt Refinancing | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of credit maximum borrowing capacity | 1,200,000,000 | ||
Credit Facility Fiscal Two Thousand And Nineteen | Line of Credit | Foxtel Group Debt Refinancing | |||
Debt Instrument [Line Items] | |||
Line of credit maximum borrowing capacity | 610,000,000 | ||
Credit Facility Fiscal 2024 Tranche One | Line of Credit | Foxtel Group Debt Refinancing | |||
Debt Instrument [Line Items] | |||
Line of credit maximum borrowing capacity | $ 817,500,000 | ||
Debt instrument term | 3 years | ||
Unused capacity commitment fee percentage | 45% | ||
Credit Facility Fiscal 2024 Tranche One | Line of Credit | Foxtel Group Debt Refinancing | Minimum | Australian BBSY Plus | |||
Debt Instrument [Line Items] | |||
Interest rate range | 2.35% | ||
Credit Facility Fiscal 2024 Tranche One | Line of Credit | Foxtel Group Debt Refinancing | Maximum | Australian BBSY Plus | |||
Debt Instrument [Line Items] | |||
Interest rate range | 3.60% | ||
Credit Facility Fiscal 2024 Tranche Two | Line of Credit | Foxtel Group Debt Refinancing | |||
Debt Instrument [Line Items] | |||
Line of credit maximum borrowing capacity | $ 48,700,000 | ||
Debt instrument term | 4 years | ||
Annual amortization amount, period one | $ 35,000,000 | ||
Annual amortization amount, period two | $ 40,000,000 | ||
Credit Facility Fiscal 2024 Tranche Two | Line of Credit | Foxtel Group Debt Refinancing | Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Debt Instrument [Line Items] | |||
Interest rate range | 2.50% | ||
Credit Facility Fiscal 2024 Tranche Two | Line of Credit | Foxtel Group Debt Refinancing | Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Debt Instrument [Line Items] | |||
Interest rate range | 3.75% | ||
Credit Facility Fiscal 2024 Tranche Three | Line of Credit | Foxtel Group Debt Refinancing | |||
Debt Instrument [Line Items] | |||
Line of credit maximum borrowing capacity | $ 311,000,000 | ||
Debt instrument term | 4 years | ||
Annual amortization amount, period one | $ 35,000,000 | ||
Annual amortization amount, period two | $ 40,000,000 | ||
Credit Facility Fiscal 2024 Tranche Three | Line of Credit | Foxtel Group Debt Refinancing | Minimum | Australian BBSY Plus | |||
Debt Instrument [Line Items] | |||
Interest rate range | 2.50% | ||
Credit Facility Fiscal 2024 Tranche Three | Line of Credit | Foxtel Group Debt Refinancing | Maximum | Australian BBSY Plus | |||
Debt Instrument [Line Items] | |||
Interest rate range | 3.75% | ||
2024 REA credit facility — tranche 1 | REA Group Debt | |||
Debt Instrument [Line Items] | |||
Line of credit maximum borrowing capacity | $ 400,000,000 | ||
Debt instrument term | 5 years | ||
2024 REA credit facility — tranche 1 | REA Group Debt | Minimum | Australian BBSY Plus | |||
Debt Instrument [Line Items] | |||
Interest rate range | 1.45% | ||
2024 REA credit facility — tranche 1 | REA Group Debt | Maximum | Australian BBSY Plus | |||
Debt Instrument [Line Items] | |||
Interest rate range | 2.35% | ||
2024 REA credit facility — tranche 2 | REA Group Debt | |||
Debt Instrument [Line Items] | |||
Line of credit maximum borrowing capacity | $ 200,000,000 | ||
2024 REA credit facility — tranche 2 | REA Group Debt | Minimum | Australian BBSY Plus | |||
Debt Instrument [Line Items] | |||
Interest rate range | 1.15% | ||
2024 REA credit facility — tranche 2 | REA Group Debt | Maximum | Australian BBSY Plus | |||
Debt Instrument [Line Items] | |||
Interest rate range | 2.25% | ||
2024 REA Credit Facility | |||
Debt Instrument [Line Items] | |||
Unused capacity commitment fee percentage | 40% | ||
2024 REA Credit Facility | REA Group Debt | |||
Debt Instrument [Line Items] | |||
Line of credit maximum borrowing capacity | $ 500,000,000 | ||
Line of credit, number of sub-facilities | facility | 2 | 2 | |
Operating income leverage ratio | 3.5 | ||
Interest coverage ratio | 3 | ||
2024 REA Credit Facility | Subsidiary Financing | |||
Debt Instrument [Line Items] | |||
Unused capacity commitment fee percentage | 40% | ||
Purchase price | $ 83,000,000 | ||
2024 REA Credit Facility | Subsidiary Financing | Australian BBSY Plus | |||
Debt Instrument [Line Items] | |||
Interest rate range | 1.40% |
Equity - Summary of Changes in
Equity - Summary of Changes in Equity (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ 8,945 | $ 9,143 |
Net income | 58 | 66 |
Other comprehensive loss | (131) | (251) |
Dividends | (85) | (89) |
Share repurchases | (29) | (127) |
Other | (22) | (14) |
Ending balance | $ 8,736 | $ 8,728 |
Class A Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance, shares | 379,945,907 | |
Share repurchases (in shares) | (1,000,000) | (5,000,000) |
Ending balance, shares | 381,060,393 | |
Class B Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance, shares | 192,013,909 | |
Share repurchases (in shares) | (400,000) | (2,500,000) |
Ending balance, shares | 191,564,740 | |
Total News Corp Equity | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ 8,064 | $ 8,222 |
Net income | 30 | 40 |
Other comprehensive loss | (100) | (195) |
Dividends | (57) | (58) |
Share repurchases | (29) | (127) |
Other | (16) | (10) |
Ending balance | $ 7,892 | $ 7,872 |
Common Stock | Class A Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance, shares | 380,000,000 | 388,000,000 |
Beginning balance | $ 4 | $ 4 |
Share repurchases (in shares) | (1,000,000) | (5,000,000) |
Other (in shares) | 2,000,000 | 1,000,000 |
Ending balance, shares | 381,000,000 | 384,000,000 |
Ending balance | $ 4 | $ 4 |
Common Stock | Class B Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance, shares | 192,000,000 | 197,000,000 |
Beginning balance | $ 2 | $ 2 |
Share repurchases (in shares) | 0 | (3,000,000) |
Ending balance, shares | 192,000,000 | 194,000,000 |
Ending balance | $ 2 | $ 2 |
Additional Paid-in Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 11,449 | 11,779 |
Dividends | (57) | (58) |
Share repurchases | (29) | (127) |
Other | (16) | (10) |
Ending balance | 11,347 | 11,584 |
Accumulated Deficit | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (2,144) | (2,293) |
Net income | 30 | 40 |
Share repurchases | 0 | |
Ending balance | (2,114) | (2,253) |
Accumulated Other Comprehensive Loss | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (1,247) | (1,270) |
Other comprehensive loss | (100) | (195) |
Ending balance | (1,347) | (1,465) |
Non-controlling Interests | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 881 | 921 |
Net income | 28 | 26 |
Other comprehensive loss | (31) | (56) |
Dividends | (28) | (31) |
Other | (6) | (4) |
Ending balance | $ 844 | $ 856 |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions | 1 Months Ended | 3 Months Ended | ||
Aug. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 22, 2021 | |
Class of Stock [Line Items] | ||||
Stock repurchase program authorized amount | $ 1,000,000,000 | |||
Remaining authorized repurchase amount | $ 548,000,000 | |||
Class A Common Stock | ||||
Class of Stock [Line Items] | ||||
Stock repurchased and retired (in shares) | 1 | 5 | ||
Stock repurchased and retired | $ 20,000,000 | $ 84,000,000 | ||
Cash dividends declared per share of common stock (in usd per share) | $ 0.10 | |||
Class B Common Stock | ||||
Class of Stock [Line Items] | ||||
Stock repurchased and retired (in shares) | 0.4 | 2.5 | ||
Stock repurchased and retired | $ 9,000,000 | $ 43,000,000 | ||
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 | Sep. 30, 2023 | Jun. 30, 2023 |
Assets: | ||
Equity securities | $ 208 | $ 235 |
Fair Value, Recurring | ||
Assets: | ||
Equity securities | 208 | 235 |
Total assets | 249 | 324 |
Liabilities: | ||
Total liabilities | 0 | (3) |
Fair Value, Recurring | Interest rate derivatives - cash flow hedges | Cash Flow Hedging | ||
Assets: | ||
Derivative assets | 38 | 41 |
Fair Value, Recurring | Foreign currency derivatives - cash flow hedges | Cash Flow Hedging | ||
Assets: | ||
Derivative assets | 3 | 2 |
Fair Value, Recurring | Cross currency interest rate derivatives | ||
Assets: | ||
Derivative assets | 0 | 37 |
Liabilities: | ||
Derivative liabilities | 0 | (2) |
Fair Value, Recurring | Cross currency interest rate derivatives | Fair Value Hedging | ||
Assets: | ||
Derivative assets | 0 | 9 |
Liabilities: | ||
Derivative liabilities | 0 | (1) |
Fair Value, Recurring | Level 1 | ||
Assets: | ||
Equity securities | 80 | 105 |
Total assets | 80 | 105 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Fair Value, Recurring | Level 1 | Interest rate derivatives - cash flow hedges | Cash Flow Hedging | ||
Assets: | ||
Derivative assets | 0 | 0 |
Fair Value, Recurring | Level 1 | Foreign currency derivatives - cash flow hedges | Cash Flow Hedging | ||
Assets: | ||
Derivative assets | 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 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 2 | ||
Assets: | ||
Equity securities | 0 | 0 |
Total assets | 41 | 89 |
Liabilities: | ||
Total liabilities | 0 | (3) |
Fair Value, Recurring | Level 2 | Interest rate derivatives - cash flow hedges | Cash Flow Hedging | ||
Assets: | ||
Derivative assets | 38 | 41 |
Fair Value, Recurring | Level 2 | Foreign currency derivatives - cash flow hedges | Cash Flow Hedging | ||
Assets: | ||
Derivative assets | 3 | 2 |
Fair Value, Recurring | Level 2 | Cross currency interest rate derivatives | ||
Assets: | ||
Derivative assets | 0 | 37 |
Liabilities: | ||
Derivative liabilities | 0 | (2) |
Fair Value, Recurring | Level 2 | Cross currency interest rate derivatives | Fair Value Hedging | ||
Assets: | ||
Derivative assets | 0 | 9 |
Liabilities: | ||
Derivative liabilities | 0 | (1) |
Fair Value, Recurring | Level 3 | ||
Assets: | ||
Equity securities | 128 | 130 |
Total assets | 128 | 130 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Fair Value, Recurring | Level 3 | Interest rate derivatives - cash flow hedges | Cash Flow Hedging | ||
Assets: | ||
Derivative assets | 0 | 0 |
Fair Value, Recurring | Level 3 | Foreign currency derivatives - cash flow hedges | Cash Flow Hedging | ||
Assets: | ||
Derivative assets | 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 |
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 | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance - beginning of period | $ 130 | $ 103 |
Additions | 0 | 1 |
Measurement adjustments | 0 | 1 |
Foreign exchange and other | (2) | (1) |
Balance - end of period | $ 128 | $ 104 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements - Additional Information (Detail) $ in Millions, $ in Millions | 3 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 AUD ($) | |
Cross currency interest rate derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative gain, net | $ 5 | ||
Estimates of net derivative loss related to cash flow hedges included in Accumulated other comprehensive loss | 0 | ||
Cross currency interest rate derivatives | Other , net | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (loss) from discontinued cash flow hedges | $ 3 | ||
Cross currency interest rate derivatives | Cash Flow Hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notional value of derivative | 49 | ||
Interest Rate Swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative gain, net | 7 | ||
Estimates of net derivative gains related to cash flow hedges included in Accumulated other comprehensive loss | 16 | ||
Interest Rate Contract | Cash Flow Hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notional value of derivative | 494 | ||
Interest Rate Contract | Cash Flow Hedging | Foxtel | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notional value of derivative | $ 610 | ||
Foreign Exchange Contract | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimates of net derivative loss related to cash flow hedges included in Accumulated other comprehensive loss | 3 | ||
Foreign Exchange Contract | Cash Flow Hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notional value of derivative | $ 58 | ||
Foreign Exchange Contract | Cash Flow Hedging | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Term of contract | 1 year | ||
Foxtel | Cash Flow Hedging | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed interest rate of derivative | 4.248% | 4.248% | |
Foxtel | Cash Flow Hedging | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed interest rate of derivative | 4.313% | 4.313% | |
Foxtel | Cross currency interest rate derivatives | Cash Flow Hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative asset, notional amount | $ 49 | ||
Fixed interest rate of derivative | 4.375% | 4.375% | |
Foxtel | Interest Rate Swap | Cash Flow Hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative asset, notional amount | $ 610 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements - Summary of Hedges Classified as Current or Non-Current in Balance Sheets Based on Maturity Dates (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Jun. 30, 2023 |
Interest rate derivatives - cash flow hedges | Cash Flow Hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, reported under other current assets | $ 16 | $ 21 |
Derivatives, reported under other non-current assets | 22 | 20 |
Foreign currency derivatives - cash flow hedges | Cash Flow Hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, reported under other current assets | 3 | 2 |
Cross currency interest rate derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, reported under other current assets | 0 | 1 |
Derivatives, reported under other non-current assets | 0 | 36 |
Derivatives, reported under other current liability | 0 | (2) |
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 | 0 | 9 |
Derivatives, reported under other current liability | $ 0 | $ (1) |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Measurements - Summary of Derivative Instruments Designated as Cash Flow Hedges (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flow Hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (loss) recognized in Accumulated Other Comprehensive Loss | $ 9 | $ 23 |
(Gain) loss reclassified from Accumulated Other Comprehensive Loss | (11) | (1) |
Interest rate derivatives - cash flow hedges | Cash Flow Hedging | Interest expense, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (loss) recognized in Accumulated Other Comprehensive Loss | 7 | 22 |
(Gain) loss reclassified from Accumulated Other Comprehensive Loss | (10) | 0 |
Foreign currency derivatives - cash flow hedges | Cash Flow Hedging | Operating expenses | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (loss) recognized in Accumulated Other Comprehensive Loss | 2 | 1 |
(Gain) loss reclassified from Accumulated Other Comprehensive Loss | 0 | (1) |
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 | 0 |
(Gain) loss reclassified from Accumulated Other Comprehensive Loss | $ (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 | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||
Net income | $ 58 | $ 66 |
Less: Net income attributable to noncontrolling interests | (28) | (26) |
Net income attributable to News Corporation stockholders | $ 30 | $ 40 |
Weighted-average number of shares of common stock outstanding - basic (in shares) | 572.3 | 581.3 |
Dilutive effect of equity awards (in shares) | 1.8 | 1.9 |
Weighted-average number of shares of common stock outstanding - diluted (in shares) | 574.1 | 583.2 |
Net income attributable to News Corporation stockholders per share - basic (in dollars per share) | $ 0.05 | $ 0.07 |
Net income attributable to News Corporation stockholders per share - diluted (in dollars per share) | $ 0.05 | $ 0.07 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Commitments by Fiscal Year Maturity (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Jun. 30, 2023 |
Loss Contingencies [Line Items] | ||
Total borrowings | $ 2,970 | $ 2,967 |
Borrowings | ||
Loss Contingencies [Line Items] | ||
Total borrowings | 2,954 | |
Borrowings, payments due Less than 1 year | 35 | |
Borrowings, Payments due 1-3 years | 622 | |
Borrowings, Payments due 3-5 years | 797 | |
Borrowings, Payments due More than 5 years | 1,500 | |
Interest payments on borrowings | ||
Loss Contingencies [Line Items] | ||
Interest payments on borrowings, Total | 712 | |
Interest payments on borrowings, Payments due Less than 1 year | 151 | |
Interest payments on borrowings, Payments due 1-3 years | 266 | |
Interest payments on borrowings, Payments due 3-5 years | 167 | |
Interest payments on borrowings, Payments due More than 5 years | $ 128 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Loss Contingencies [Line Items] | |||
Other current assets | $ 503 | $ 484 | |
U.K. Newspaper Matters | |||
Loss Contingencies [Line Items] | |||
Selling, general and administrative expenses, net | 3 | $ 6 | |
Litigation liability accrued | 101 | ||
U.K. Newspaper Matters Indemnification | 21st Century Fox | |||
Loss Contingencies [Line Items] | |||
Other current assets | $ 101 |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 37 | $ 35 |
Income before income tax expense | 95 | 101 |
Gross income tax paid | 25 | 40 |
Income tax refunds | $ 8 | $ 1 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Sep. 30, 2023 brand segment channel country | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | segment | 6 |
Digital Real Estate Services | REA Group | |
Segment Reporting Information [Line Items] | |
Company ownership percentage | 61.40% |
Digital Real Estate Services | Move | |
Segment Reporting Information [Line Items] | |
Company ownership percentage | 80% |
Digital Real Estate Services | Move | REA Group | |
Segment Reporting Information [Line Items] | |
Ownership interest held by minority interest | 20% |
Subscription Video Services | Foxtel | |
Segment Reporting Information [Line Items] | |
Company ownership percentage | 65% |
Subscription Video Services | Foxtel | Telstra | |
Segment Reporting Information [Line Items] | |
Ownership interest held by minority interest | 35% |
Subscription Video Services | Minimum | Foxtel | |
Segment Reporting Information [Line Items] | |
Number of channels | channel | 200 |
Book Publishing | Minimum | |
Segment Reporting Information [Line Items] | |
Number of countries | country | 15 |
Number of branded publishing imprints | brand | 120 |
Segment Information - Reconcili
Segment Information - Reconciliation of Revenue and Segment EBITDA from Segments to Consolidated (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 2,499 | $ 2,478 |
Depreciation and amortization | (171) | (179) |
Impairment and restructuring charges | (38) | (21) |
Equity losses of affiliates | (2) | (4) |
Interest expense, net | (23) | (27) |
Other, net | (35) | (18) |
Income before income tax expense | 95 | 101 |
Income tax expense | (37) | (35) |
Net income | 58 | 66 |
Digital Real Estate Services | ||
Segment Reporting Information [Line Items] | ||
Revenues | 403 | 421 |
Total Segment EBITDA | 122 | 119 |
Subscription Video Services | ||
Segment Reporting Information [Line Items] | ||
Revenues | 486 | 502 |
Total Segment EBITDA | 93 | 111 |
Dow Jones | ||
Segment Reporting Information [Line Items] | ||
Revenues | 537 | 515 |
Total Segment EBITDA | 124 | 113 |
Book Publishing | ||
Segment Reporting Information [Line Items] | ||
Revenues | 525 | 487 |
Total Segment EBITDA | 65 | 39 |
News Media | ||
Segment Reporting Information [Line Items] | ||
Revenues | 548 | 553 |
Total Segment EBITDA | 14 | 18 |
Other | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
Total Segment EBITDA | $ (54) | $ (50) |
Segment Information - Reconci_2
Segment Information - Reconciliation of Assets from Segments to Consolidated (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Jun. 30, 2023 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Investments | $ 391 | $ 427 |
Total assets | 16,475 | 16,921 |
Digital Real Estate Services | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,915 | 2,942 |
Subscription Video Services | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,634 | 2,812 |
Dow Jones | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 4,237 | 4,305 |
Book Publishing | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,648 | 2,629 |
News Media | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,949 | 2,023 |
Other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 1,701 | $ 1,783 |
Segment Information - Reconci_3
Segment Information - Reconciliation of Goodwill and Intangible Assets from Segments to Consolidated (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Jun. 30, 2023 |
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | $ 7,521 | $ 7,629 |
Digital Real Estate Services | ||
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | 1,779 | 1,779 |
Subscription Video Services | ||
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | 1,230 | 1,288 |
Dow Jones | ||
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | 3,286 | 3,298 |
Book Publishing | ||
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | 932 | 958 |
News Media | ||
Segment Reporting Information [Line Items] | ||
Total Goodwill and intangible assets, net | $ 294 | $ 306 |
Additional Financial Informat_3
Additional Financial Information - Components of Receivables, Net (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Jun. 30, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Receivables | $ 1,621 | $ 1,482 |
Less: allowances | (62) | (57) |
Receivables, net | $ 1,559 | $ 1,425 |
Additional Financial Informat_4
Additional Financial Information - Components of Other Non-Current Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Jun. 30, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Royalty advances to authors | $ 375 | $ 376 |
Retirement benefit assets | 132 | 134 |
Inventory | 241 | 267 |
News America Marketing deferred consideration | 160 | 157 |
Other | 381 | 407 |
Total Other non-current assets | $ 1,289 | $ 1,341 |
Additional Financial Informat_5
Additional Financial Information - Components of Other Current Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Jun. 30, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Royalties and commissions payable | $ 242 | $ 206 |
Current operating lease liabilities | 107 | 112 |
Allowance for sales returns | 149 | 154 |
Current tax payable | 10 | 16 |
Other | 367 | 465 |
Total Other current liabilities | $ 875 | $ 953 |
Operating lease, liability, current, statement of financial position [extensible enumeration] | Total Other current liabilities | Total Other current liabilities |
Additional Financial Informat_6
Additional Financial Information - Components of Other, Net Included in Statement of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Other Income and Expenses [Line Items] | ||
Remeasurement of equity securities | $ (23) | $ (3) |
Total Other, net | (35) | (18) |
Nonoperating Income (Expense) | ||
Other Income and Expenses [Line Items] | ||
Remeasurement of equity securities | (23) | (3) |
Dividends received from equity security investments | 2 | 2 |
Gain on remeasurement of previously-held interest | 4 | 0 |
Other | (18) | (17) |
Total Other, net | $ (35) | $ (18) |
Additional Financial Informat_7
Additional Financial Information - Summary of Supplemental Cash Flow Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Cash paid for interest | $ 19 | $ 28 |
Cash paid for taxes | $ 25 | $ 40 |