Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Jun. 30, 2023 | Aug. 08, 2023 | Dec. 30, 2022 | |
Document And Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --06-30 | ||
Document Period End Date | Jun. 30, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-38776 | ||
Entity Registrant Name | FOX CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 83-1825597 | ||
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 | 852-7000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Documents Incorporated by Reference | Certain information required for Part III of this Annual Report on Form 10-K is incorporated by reference to the Fox Corporation definitive Proxy Statement for its 2023 Annual Meeting of Stockholders, which is intended to be filed with the Securities and Exchange Commission pursuant to Regulation 14A of the Securities Exchange Act of 1934, as amended, within 120 days of Fox Corporation’s fiscal year end. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001754301 | ||
Class A | |||
Document And Entity Information [Line Items] | |||
Title of 12(b) Security | Class A Common Stock, par value $0.01 per share | ||
Trading Symbol | FOXA | ||
Security Exchange Name | NASDAQ | ||
Entity Public Float | $ 8.9 | ||
Entity Common Stock, Shares Outstanding | 253,683,969 | ||
Class B | |||
Document And Entity Information [Line Items] | |||
Title of 12(b) Security | Class B Common Stock, par value $0.01 per share | ||
Trading Symbol | FOX | ||
Security Exchange Name | NASDAQ | ||
Entity Public Float | $ 3.8 | ||
Entity Common Stock, Shares Outstanding | 235,581,025 |
Audit Information
Audit Information | 12 Months Ended |
Jun. 30, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | New York, New York |
Auditor Firm ID | 42 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Income Statement [Abstract] | ||||
Revenues | $ 14,913 | $ 13,974 | $ 12,909 | |
Operating expenses | (9,689) | (9,117) | (8,037) | |
Selling, general and administrative | (2,049) | (1,920) | (1,807) | |
Depreciation and amortization | (411) | (363) | (300) | |
Impairment and restructuring charges | (111) | 0 | (35) | |
Interest expense, net | (218) | (371) | (391) | |
Other, net | (699) | (509) | 579 | |
Income before income tax expense | 1,736 | 1,694 | 2,918 | |
Income tax expense | (483) | (461) | (717) | |
Net income | 1,253 | 1,233 | 2,201 | |
Less: Net income attributable to noncontrolling interests | [1] | (14) | (28) | (51) |
Net income attributable to Fox Corporation stockholders | $ 1,239 | $ 1,205 | $ 2,150 | |
Net income attributable to Fox Corporation stockholders per share: | ||||
Basic (in USD per share) | $ 2.34 | $ 2.13 | $ 3.64 | |
Diluted (in USD per share) | $ 2.33 | $ 2.11 | $ 3.61 | |
[1]Net income attributable to noncontrolling interests includes $(16) million, $(12) million and $25 million for the fiscal years ended June 30, 2023, 2022 and 2021, respectively, relating to redeemable noncontrolling interests. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,253 | $ 1,233 | $ 2,201 | |
Other comprehensive income, net of tax: | ||||
Benefit plan adjustments and other | 77 | 92 | 99 | |
Other comprehensive income, net of tax | 77 | 92 | 99 | |
Comprehensive income | 1,330 | 1,325 | 2,300 | |
Less: Net income attributable to noncontrolling interests | [1] | (14) | (28) | (51) |
Comprehensive income attributable to Fox Corporation stockholders | $ 1,316 | $ 1,297 | $ 2,249 | |
[1]Net income attributable to noncontrolling interests includes $(16) million, $(12) million and $25 million for the fiscal years ended June 30, 2023, 2022 and 2021, respectively, relating to redeemable noncontrolling interests. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income attributable to redeemable noncontrolling interests | $ (16) | $ (12) | $ 25 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 | |
Current assets | |||
Cash and cash equivalents | $ 4,272 | $ 5,200 | |
Receivables, net | 2,177 | 2,128 | |
Inventories, net | 543 | 791 | |
Other | 265 | 162 | |
Total current assets | 7,257 | 8,281 | |
Non-current assets | |||
Property, plant and equipment, net | 1,708 | 1,682 | |
Intangible assets, net | 3,084 | 3,157 | |
Goodwill | 3,559 | 3,554 | |
Deferred tax assets | 3,090 | 3,440 | |
Other non-current assets | 3,168 | 2,071 | |
Total assets | 21,866 | 22,185 | |
Current liabilities | |||
Borrowings | 1,249 | 0 | |
Accounts payable, accrued expenses and other current liabilities | 2,514 | 2,296 | |
Total current liabilities | 3,763 | 2,296 | |
Non-current liabilities | |||
Borrowings | 5,961 | 7,206 | |
Other liabilities | 1,484 | 1,120 | |
Redeemable noncontrolling interests | 213 | 188 | |
Commitments and contingencies | |||
Equity | |||
Additional paid-in capital | 8,253 | 9,098 | |
Retained earnings | 2,269 | 2,461 | |
Accumulated other comprehensive loss | (149) | (226) | |
Total Fox Corporation stockholders’ equity | 10,378 | 11,339 | |
Noncontrolling interests | 67 | 36 | |
Total equity | 10,445 | 11,375 | |
Total liabilities and equity | 21,866 | 22,185 | |
Class A | |||
Equity | |||
Common stock | [1] | 3 | 3 |
Class B | |||
Equity | |||
Common stock | [2] | $ 2 | $ 3 |
[1] Class A Common Stock , $0.01 par value per share, 2,000,000,000 shares authorized, 262,899,364 shares and 307,496,876 shares issued and outstanding at par as of June 30, 2023 and 2022, respectively. Class B Common Stock , $0.01 par value per share, 1,000,000,000 shares authorized, 235,581,025 shares and 243,122,595 shares issued and outstanding at par as of June 30, 2023 and 2022, respectively. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2023 | Jun. 30, 2022 |
Class A | ||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 262,899,364 | 307,496,876 |
Common stock, shares outstanding | 262,899,364 | 307,496,876 |
Class B | ||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 235,581,025 | 243,122,595 |
Common stock, shares outstanding | 235,581,025 | 243,122,595 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
OPERATING ACTIVITIES | |||
Net income | $ 1,253 | $ 1,233 | $ 2,201 |
Adjustments to reconcile net income to cash provided by operating activities | |||
Depreciation and amortization | 411 | 363 | 300 |
Amortization of cable distribution investments | 16 | 18 | 22 |
Impairment and restructuring charges | 111 | 0 | 35 |
Equity-based compensation | 74 | 102 | 147 |
Other, net | (116) | 509 | (579) |
Deferred income taxes | 321 | 342 | 534 |
Change in operating assets and liabilities, net of acquisitions and dispositions | |||
Receivables and other assets | (104) | (79) | (269) |
Inventories net of programming payable | 145 | (301) | 190 |
Accounts payable and accrued expenses | (68) | (54) | 282 |
Other changes, net | (243) | (249) | (224) |
Net cash provided by operating activities | 1,800 | 1,884 | 2,639 |
INVESTING ACTIVITIES | |||
Property, plant and equipment | (357) | (307) | (484) |
Acquisitions, net of cash acquired | 0 | (243) | (51) |
Proceeds from dispositions, net | 0 | 83 | 93 |
Purchase of investments | (54) | (28) | (86) |
Other investing activities, net | (27) | (18) | 0 |
Net cash used in investing activities | (438) | (513) | (528) |
FINANCING ACTIVITIES | |||
Repayment of borrowings | 0 | (750) | 0 |
Repurchase of shares | (2,000) | (1,000) | (1,001) |
Non-operating cash flows from The Walt Disney Company | 0 | 0 | 112 |
Settlement of Divestiture Tax Prepayment | 0 | 0 | 462 |
Dividends paid and distributions | (299) | (307) | (330) |
Purchase of subsidiary noncontrolling interest | 0 | 0 | (67) |
Sale of subsidiary noncontrolling interest | 35 | 25 | 0 |
Other financing activities, net | (26) | (25) | (46) |
Net cash used in financing activities | (2,290) | (2,057) | (870) |
Net (decrease) increase in cash and cash equivalents | (928) | (686) | 1,241 |
Cash and cash equivalents, beginning of year | 5,200 | 5,886 | 4,645 |
Cash and cash equivalents, end of year | $ 4,272 | $ 5,200 | $ 5,886 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Millions, $ in Millions | Total | Total Fox Corporation Stockholders’ Equity | Common Stock Class A | Common Stock Class B | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) | Noncontrolling interests | [1] |
Beginning Balance at Jun. 30, 2020 | $ 10,111 | $ 10,094 | $ 3 | $ 3 | $ 9,831 | $ 674 | $ (417) | $ 17 | |
Beginning balance (in shares) at Jun. 30, 2020 | 344 | 261 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 2,176 | 2,150 | 2,150 | 26 | |||||
Other comprehensive income | 99 | 99 | 99 | ||||||
Dividends | (272) | (272) | (272) | ||||||
Shares repurchased | (1,001) | (1,001) | (514) | (487) | |||||
Shares repurchased (in shares) | (22) | (9) | |||||||
Other | 12 | 53 | 136 | (83) | (41) | ||||
Other (in shares) | 2 | ||||||||
Ending Balance at Jun. 30, 2021 | 11,125 | 11,123 | $ 3 | $ 3 | 9,453 | 1,982 | (318) | 2 | |
Ending balance (in shares) at Jun. 30, 2021 | 324 | 252 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 1,245 | 1,205 | 1,205 | 40 | |||||
Other comprehensive income | 92 | 92 | 92 | ||||||
Dividends | (273) | (273) | (273) | ||||||
Shares repurchased | (1,000) | (1,000) | (450) | (550) | |||||
Shares repurchased (in shares) | (19) | (8) | |||||||
Other | 186 | 192 | 95 | 97 | (6) | ||||
Other (in shares) | 3 | (1) | |||||||
Ending Balance at Jun. 30, 2022 | 11,375 | 11,339 | $ 3 | $ 3 | 9,098 | 2,461 | (226) | 36 | |
Ending balance (in shares) at Jun. 30, 2022 | 308 | 243 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 1,269 | 1,239 | 1,239 | 30 | |||||
Other comprehensive income | 77 | 77 | 77 | ||||||
Dividends | (265) | (265) | (265) | ||||||
Shares repurchased | (2,014) | (2,014) | (891) | (1,123) | |||||
Shares repurchased (in shares) | (46) | (8) | |||||||
Other | 3 | 2 | $ (1) | 46 | (43) | 1 | |||
Other (in shares) | 1 | ||||||||
Ending Balance at Jun. 30, 2023 | $ 10,445 | $ 10,378 | $ 3 | $ 2 | $ 8,253 | $ 2,269 | $ (149) | $ 67 | |
Ending balance (in shares) at Jun. 30, 2023 | 263 | 235 | |||||||
[1]Excludes Redeemable noncontrolling interests which are reflected in temporary equity (See Note 6—Fair Value under the heading “Redeemable Noncontrolling Interests”). |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Fox Corporation, (“FOX” or the “Company”), is a news, sports and entertainment company, which manages and reports its businesses in the following segments: Cable Network Programming, Television and Other, Corporate and Eliminations. The Transaction FOX became a standalone publicly traded company on March 19, 2019, when Twenty-First Century Fox, Inc. (“21CF”) spun off the Company to 21CF stockholders and FOX's Class A Common Stock, par value $0.01 per share (the “Class A Common Stock”), and Class B Common Stock, par value $0.01 per share (the “Class B Common Stock” and, together with the Class A Common Stock, the “Common Stock”) began trading independently on The Nasdaq Global Select Market (“the Transaction”). In connection with the Transaction, the Company entered into the Separation and Distribution Agreement, dated as of March 19, 2019 (the “Separation Agreement”), with 21CF, which effected the internal restructuring (the “Separation”) whereby The Walt Disney Company (“Disney”) acquired the remaining 21CF assets and 21CF became a wholly-owned subsidiary of Disney. The Separation and the Transaction were effected as part of a series of transactions contemplated by the Amen ded and Restated Merger Agreement and Plan of Merger, dated as of June 20, 2018 (the “21CF Disney Merger Agreement”), by and among 21CF, Disney and certain subsidiaries of Disney. In connection with the Separation, the Company entered into a tax matters agreement among the Company, Disney and 21CF which governs the parties’ respective rights, responsibilities and obligations with respect to certain tax matters. Under this agreement, 21CF will generally indemnify the Company against any taxes required to be reported on a consolidated or separate tax return of 21CF and/or any of its subsidiaries, including any taxes resulting from the Separation and the Transaction, and the Company will generally indemnify 21CF against any taxes required to be reported on a separate tax return of the Company or any of its subsidiaries. Pursuant to the 21CF Disney Merger Agreement, immediately prior to the Transaction, the Company paid 21CF a dividend (the “Dividend”) for the estimated taxes associated with the Transaction. The final determination of the taxes included an estimated $5.8 billion in respect of the Separation and the Transaction for which the Company is responsible pursuant to the 21CF Disney Merger Agreement and an estimated $700 million prepayment in respect of divestitures (collectively, the “Transaction Tax”). As a result of the Separation and the Transaction, which was a taxable transaction for which an estimated tax liability of $5.8 billion was included in the Transaction Tax paid by the Company, FOX obtained a tax basis in its assets equal to their respective fair market values. This resulted in estimated annual tax deductions of approximately $1.5 billion, which is expected to continue over the next several years due to the amortization of the additional tax basis. Such estimates are subject to revisions, which could be material, based upon the occurrence of future events. This amortization is estimated to reduce the Company’s fiscal 2023 cash tax liability by approximately $360 million at the current combined federal and state applicable tax rate of approximately 24%. Included in the Transaction Tax was the Company’s share of the estimated tax liabilities of $700 million related to the anticipated divestitures by Disney of certain assets, principally the FOX Sports Regional Sports Networks (“RSNs”), which Disney sold during calendar year 2019 (“Divestiture Tax”) . During fiscal 2021, the Company and Disney reached an agreement to settle the majority of the Divestiture Tax and the Company received $462 million from Disney as reimbursement of the Company’s prepayment based upon the sales price of the RSNs. This reimbursement was recorded in Other, net in the Statement of Operations (See Note 20—Additional Financial Information under the heading “Other, net”). The balance of the Divestiture Tax is subject to adjustment in the future, but any such adjustment is not expected to have a material impact on the financial results of the Company. Basis of Presentation The Company’s financial statements as of and for the years ended June 30, 2023, 2022 and 2021 are presented on a consolidated basis. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The Financial Statements include the accounts of all majority-owned and controlled subsidiaries. In addition, the Company evaluates its relationships with other entities to identify whether they are variable interest entities and whether the Company is the primary beneficiary. Consolidation is required if both of these criteria are met. All significant intercompany accounts and transactions within the Company’s consolidated businesses have been eliminated in consolidation. Any change in the Company’s ownership interest in a consolidated subsidiary, where a controlling financial interest is retained, is accounted for as an equity transaction. When the Company ceases to have a controlling financial interest in a consolidated subsidiary, the Company recognizes a gain or loss in net income upon deconsolidation. The Company’s fiscal year ends on June 30 (“fiscal”) of each year. Reclassifications and Adjustments Certain fiscal 2022 and 2021 amounts have been reclassified to conform to the fiscal 2023 presentation. Use of Estimates The preparation of the Company’s Financial Statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts that are reported in the Financial Statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future, actual results may differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. Receivables Receivables are presented net of an allowance for credit losses, which is an estimate of amounts that may not be collectible. The allowance for credit losses is estimated based on historical experience, receivable aging, current expected collections, current economic trends and specific identification of certain receivables that are at risk of not being paid. Receivables, net consist of: As of June 30, 2023 2022 (in millions) Total receivables $ 2,221 $ 2,182 Allowance for credit losses (44) (54) Total receivables, net $ 2,177 $ 2,128 Inventories Licensed and Owned Programming The Company incurs costs to license programming rights and to produce owned programming. Licensed programming includes costs incurred by the Company for access to content owned by third parties. The Company has single and multi-year contracts for sports and non-sports programming. Licensed programming is recorded at the earlier of payment or when the license period has begun, the cost of the program is known or reasonably determinable and the program is accepted and available for airing. Advances paid for the right to broadcast sports events within one year and programming with an initial license period of one year or less are classified as current inventories, and license fees for programming with an initial license period of greater than one year are classified as non-current inventories. Licensed programming is predominantly amortized as the associated programs are made available. The costs of multi-year sports contracts are primarily amortized based on the ratio of each contract’s current period attributable revenue to the estimated total remaining attributable revenue. Estimates can change and, accordingly, are reviewed periodically and amortization is adjusted as necessary. Such changes in the future could be material. Owned programming includes content internally developed and produced as well as co-produced content. Capitalized costs for owned programming are predominantly amortized using the individual-film-forecast-computation method, which is based on the ratio of current period revenue to estimated total future remaining revenue, and related costs to be incurred throughout the life of the respective program. Future remaining revenue includes imputed license fees for content used by FOX as well as revenue expected to be earned based on distribution strategy and historical performance of similar content. Changes to estimated future revenues may result in impairments or changes in amortization patterns. When production partners distribute owned programming on the Company’s behalf, the net participation in profits is recorded as content license revenue. The Company may receive government incentives in connection with the production of owned programming. The Company records government incentives as a reduction of capitalized costs for owned programming when the monetization of the incentive is probable. Government incentives were not material in fiscal 2023, 2022 and 2021. Inventories are evaluated for recoverability when an event or circumstance occurs that indicates that fair value may be less than unamortized costs. The Company will determine if there is an impairment by evaluating the fair value of the inventories, which are primarily supported by internal forecasts as compared to unamortized costs. Where an evaluation indicates unamortized costs, including advances on multi-year sports rights contracts, are not recoverable, amortization of rights is accelerated in an amount equal to the amount by which the unamortized costs exceed fair value. Owned programming is monetized and tested for impairment on an individual basis. Licensed programming is predominantly monetized as a group and tested for impairment on a channel, network, or daypart basis. The recoverability of certain sports rights is assessed on an aggregate basis. Investments Investments in and advances to entities or joint ventures in which the Company has significant influence, but less than a controlling financial interest, are accounted for using the equity method. Significant influence generally exists when the Company owns an interest between 20% and 50%. Equity securities in which the Company has no significant influence (generally less than a 20% ownership interest) with readily determinable fair values are accounted for at fair value based on quoted market prices. Equity securities without readily determinable fair values are accounted for either at fair value or using the measurement alternative which is at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. All gains and losses on investments in equity securities are recognized in the Statements of Operations. Equity method investments are reviewed for impairment by comparing their fair value to their respective carrying amounts. The Company determines the fair value of its private company investments by considering available information, including recent investee equity transactions, discounted cash flow analyses, estimates based on comparable public company operating multiples and, in certain situations, balance sheet liquidation values. If the fair value of the investment has dropped below the carrying amount, management considers several factors when determining whether an other-than-temporary decline in market value has occurred, including the length of time and extent to which the market value has been below cost, the financial condition and near-term prospects of the issuer of the security, the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value and other factors influencing the fair market value, such as general market conditions. The Company regularly reviews equity securities not accounted for using the equity method or at fair value for impairment based on a qualitative assessment which includes, but is not limited to (i) significant deterioration in the earnings performance, credit rating, asset quality or business prospects of the investee, (ii) significant adverse changes in the regulatory, economic or technological environment of the investee and (iii) significant adverse changes in the general market condition of either the geographical area or the industry in which the investee operates. If an equity security is impaired, an impairment loss is recognized in the Statements of Operations equal to the difference between the fair value of the investment and its carrying amount. Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation is provided using the straight-line method over an estimated useful life of three three Goodwill and Other Intangible Assets The Company’s intangible assets include goodwill, Federal Communications Commission (“FCC”) licenses, traditional and virtual multi-channel video programming distributor (“MVPD”) affiliate agreements and relationships, software and trademarks and other copyrighted products. Intangible assets other than goodwill acquired in business combinations are recorded at their estimated fair value at the date of acquisition. Goodwill is recorded as the difference between the consideration transferred to acquire entities and the estimated fair values assigned to their tangible and identifiable intangible net assets. Amounts recorded as goodwill are assigned to more than one reporting unit as of the acquisition date when more than one reporting unit is expected to benefit from the synergies of the combination. The Company’s goodwill and indefinite-lived intangible assets, which primarily consist of FCC licenses, are tested annually for impairment, or earlier if events occur or circumstances change that would more likely than not reduce the fair value below its carrying amount. The impairment assessment of indefinite-lived intangibles compares the fair value of the assets to their carrying value. Intangible assets with finite lives are generally amortized over their estimated useful lives. The weighted average original amortization period of amortizable intangible assets is approximately 10 years. Annual Impairment Review Goodwill Goodwill is tested for impairment at the reporting unit level, which is an operating segment, or one level below. If the Company determines it is more likely than not that the fair value of a reporting unit is less than its carrying amount after a qualitative assessment, the Company performs a quantitative impairment test to compare the fair value of each reporting unit to its carrying amount, including goodwill. In performing the quantitative assessment, the Company determines the fair value of a reporting unit primarily by using discounted cash flow analysis and market-based valuation approach methodologies. Determining fair value requires the exercise of significant judgments, including judgments about appropriate discount rates, long-term growth rates, company earnings multiples and relevant comparable transactions, as applicable, and the amount and timing of expected future cash flows. The cash flows employed in the analyses are based on the Company’s estimated outlook and various growth rates have been assumed for years beyond the long-term business plan period. Discount rate assumptions are based on an assessment of the risk inherent in the future cash flows of the respective reporting units. In assessing the reasonableness of its determined fair values, the Company evaluates its results against other value indicators, such as comparable public company trading values. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. FCC licenses The Company performs impairment reviews by comparing the estimated fair value of the Company’s FCC licenses with their carrying amount on a station-by-station basis using a discounted cash flow valuation method, assuming a hypothetical start-up scenario for a broadcast station in each of the markets the Company operates in. The significant assumptions used are the discount rate and terminal growth rates and operating margins, as well as industry data on future advertising revenues in the markets where the Company owns television stations. These assumptions are based on actual third-party historical performance and estimates of future performance in each market. During fiscal 2023, the Company determined that the goodwill and indefinite-lived intangible assets included in the Balance Sheet as of June 30, 2023, were not impaired based on the Company’s annual assessments. The Company determined that there are no reporting units at risk of impairment as of June 30, 2023, and will continue to monitor its goodwill and indefinite-lived intangible assets for any possible future non-cash impairment charges. Leases The Company has lease agreements primarily for office facilities and other equipment. At contract inception, the Company determines if a contract is or contains a lease and whether it is an operating or finance lease. The Company does not separate lease components from nonlease components for real estate leases. For operating leases that have a lease term of greater than one year, the Company initially recognizes operating lease liabilities and right-of-use (“ROU”) assets at the lease commencement date, which is the date that the lessor makes an underlying asset available for use by the Company. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the present value of the Company’s obligation to make lease payments, primarily escalating fixed payments, over the lease term. The discount rate used to determine the present value of the lease payments is generally the Company’s incremental borrowing rate because the rate implicit in the lease is generally not readily determinable. The incremental borrowing rate for the lease term is determined by adjusting the Company’s unsecured borrowing rate for a similar term to approximate a collateralized borrowing rate. The Company’s lease terms for each of its leases represents the noncancelable period for which the Company has the right to use an underlying asset, together with all of the following: (i) periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option; (ii) periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option; and (iii) periods covered by an option to extend (or not to terminate) the lease in which exercise of the option is controlled by the lessor. The Company recognizes lease expense for operating leases on a straight-line basis over the lease term. The Company’s operating ROU assets are included in Other non-current assets and the Company’s current and non-current operating lease liabilities are included in Accounts payable, accrued expenses and other current liabilities and Other liabilities, respectively, in the Company’s Balance Sheets (See Note 20—Additional Financial Information). Long-Lived Asset Impairments The Company periodically reviews the carrying amounts of its long-lived assets, including property, plant and equipment, ROU assets and finite-lived intangible assets, to determine whether current events or circumstances indicate that such carrying amounts may not be recoverable. If the carrying amount of the asset or asset group is greater than the expected undiscounted cash flows to be generated by such asset or asset group, an impairment adjustment is recognized and is measured as the amount by which the carrying value of such asset or asset group exceeds its fair value. The Company generally measures fair value by considering sale prices for similar assets or by discounting estimated future cash flows using an appropriate discount rate. Considerable management judgment is necessary to estimate the fair value of assets; accordingly, actual results could vary significantly from such estimates. Assets to be disposed of are carried at the lower of their financial statement carrying amount or fair value less their costs to sell. Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company considers the terms of each arrangement to determine the appropriate accounting treatment. The Company generates advertising revenue from sales of commercial time within the Company’s network programming, and from sales of advertising on the Company’s owned and operated television stations and various digital properties. Advertising revenue from customers, primarily advertising agencies, is recognized as the commercials are aired. Certain of the Company’s advertising contracts have guarantees of a certain number of targeted audience views, referred to as impressions. Revenues for any audience deficiencies are deferred until the guaranteed number of impressions is met, by providing additional advertisements. Advertising contracts, which are generally short-term, are billed monthly for the spots aired during the month, with payments due shortly thereafter. The Company generates affiliate fee revenue from agreements with MVPDs for cable network programming and for the broadcast of the Company’s owned and operated television stations. In addition, the Company generates affiliate fee revenue from agreements with independently owned television stations that are affiliated with the FOX Network and receives retransmission consent fees from MVPDs for their signals. Affiliate fee revenue is recognized as we continuously make the programming available to the customer over the term of the agreement. For contracts with affiliate fees based on the number of the affiliate’s subscribers, revenues are recognized based on the contractual rate multiplied by the estimated number of subscribers each period. For contracts with fixed affiliate fees, revenues are recognized based on the relative standalone selling price of the network programming provided over the contract term, which generally reflects the invoiced amount. Affiliate contracts are generally multi-year contracts billed monthly with payments due shortly thereafter. The Company classifies the amortization of cable distribution investments (capitalized fees paid to MVPDs to facilitate carriage of a cable network) against affiliate fee revenue. The Company amortizes the cable distribution investments on a straight-line basis over the contract period. Other revenue primarily includes revenue generated from the Company’s content licensing agreements and revenue from production services and rentals. Revenue from content licensing agreements is recognized when the content is made available under the content licensing agreements. Production services and rental revenues are recognized as the goods or services are delivered. Advertising Expenses The Company expenses advertising costs as incurred. The Company incurred advertising expenses of $680 million, $708 million and $558 million for fiscal 2023, 2022 and 2021, respectively. Income taxes The Company uses an asset and liability approach for financial accounting and reporting for income taxes. Under this approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Valuation allowances are established where management determines that it is more likely than not that some portion or all of a deferred tax asset will not be realized. Earnings Per Share Basic earnings per share for the Class A Common Stock and Class B Common Stock is calculated by dividing Net income attributable to Fox Corporation stockholders by the weighted average number of outstanding shares of Class A Common Stock, including vested restricted stock units (“RSUs”), and Class B Common Stock. Diluted earnings per share for the Class A Common Stock and Class B Common Stock is calculated similarly, except that the calculation for the Class A Common Stock includes the dilutive effect of the assumed issuance of the shares issuable under the Company’s equity-based compensation plan. Equity-Based Compensation The Company applies a fair value-based measurement method in accounting for generally all share-based payment transactions with employees. The Company recognizes compensation cost for awards granted that have only service requirements and a graded vesting schedule on a straight-line basis over the requisite service period for the entire award. The Company accounts for forfeitures when they occur. Financial Instruments The carrying value of the Company’s financial instruments, such as cash and cash equivalents, receivables, payables and investments accounted for using the measurement alternative, approximates fair value. The fair value of financial instruments is generally determined by reference to market values resulting from trading on a national securities exchange or in an over-the-counter market. Redeemable Noncontrolling Interests Redeemable noncontrolling interests are presented outside of permanent equity on the Company’s Balance Sheets as their redemption is outside the control of the Company. The redeemable noncontrolling interests recorded are put rights held in Credible Labs Inc. (“Credible”) and an entertainment production company. The Company accretes the changes in the redemption value of the redeemable noncontrolling interests over the period from issuance to the earliest redemption date. If a redeemable noncontrolling interest is redeemable at fair value, adjustments to the carrying amount are recorded in retained earnings. If a redeemable noncontrolling interest is redeemable at an amount in excess of fair value, the portion of the adjustment that reflects a redemption in excess of fair value is presented within net income attributable to noncontrolling interests in the Statements of Operations. Concentrations of Credit Risk Cash and cash equivalents are maintained with several financial institutions. The Company has deposits held with banks that exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions of reputable credit and, therefore, bear minimal credit risk. Generally, the Company does not require collateral to secure receivables. As of June 30, 2023, the Company had one customer that accounted for approximately 11% of the Company’s receivables. As of June 30, 2022, the Company had no individual customers that accounted for 10% or more of the Company’s receivables. Recently Adopted, Recently Issued Accounting Guidance and Other Inflation Reduction Act In August 2022, the U.S. government enacted the Inflation Reduction Act which, among other changes, imposes a 15% corporate alternative minimum tax (“CAMT”) and a 1% excise tax on stock repurchases. Once subject to the CAMT, a taxpayer will compute both its CAMT liability and its regular federal tax liability and pay the higher of the two. To the extent that the CAMT liability exceeds the regular federal tax liability, a taxpayer will receive a credit (“CAMT credit”) which can be used against its regular federal tax liability in the future when the taxpayer is no longer subject to the CAMT. The CAMT credit does not expire. The CAMT is effective for tax years beginning after December 31, 2022, which means it will be applicable to the Company starting in fiscal 2024. The excise tax on stock repurchases applies to stock repurchases occurring after December 31, 2022. The Company continues to evaluate the impact the CAMT will have on its financial statements but expects that, when applicable, the Company will be subject to the CAMT. The CAMT will impact the timing of the cash tax benefit the Company receives from the amortization of the additional tax basis received as a result of the Transaction Tax. This change in timing will result in an increase to the Company’s annual cash tax liability which could be material. However, as noted above, if the Company pays CAMT it will receive a CAMT credit that can be carried forward indefinitely and applied against its regular federal tax liability in future years. The |
Acquisitions, Disposals and Oth
Acquisitions, Disposals and Other Transactions | 12 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions, Disposals and Other Transactions | ACQUISITIONS, DISPOSALS AND OTHER TRANSACTIONS The Company’s acquisitions support the Company’s strategy to strengthen its core brands, grow its digital businesses and selectively enhance production capabilities for its digital and linear platforms. The Company records any noncontrolling interests in an acquiree at their acquisition date fair value. The initial accounting for a business combination, including the allocation of the consideration transferred, is based on provisional amounts. The amounts allocated to intangible assets and goodwill, the estimates of useful lives and the related amortization expense are subject to changes pending the completion of the final valuations of certain assets and liabilities. A change in the allocation of consideration transferred and any estimates of useful lives could result in a change in the value allocated to the intangible assets that could impact future amortization expense. During fiscal 2023, the Company made no acquisitions. During fiscal 2022, the Company made acquisitions, primarily consisting of three entertainment production companies, for total cash consideration of approximately $240 million. During fiscal 2021, the Company mad e one acquisition consisting of a digital media company and disposed of its sports marketing businesses. The incremental revenues and Segment EBITDA (as defined in Note 17—Segment Information) related to the fiscal 2022 acquisitions and the fiscal 2021 acquisition and disposals, included in the Company's results of operations, were not material individually or in the aggregate. |
Restructuring Programs
Restructuring Programs | 12 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Programs | RESTRUCTURING PROGRAMS During fiscal 2023, 2022 and 2021, the Company recognized restructuring charges of $111 million, nil and $35 million, respectively, which were recorded in Impairment and restructuring charges in the Statements of Operations. These charges were primarily comprised of severance costs at the Cable Network Programming, Television and Other, Corporate and Eliminations segments for fiscal 2023 and the Cable Network Programming segment for fiscal 2021. Changes in the restructuring program liabilities were as follows: One time termination benefits Contract termination costs Total (in millions) Balance, June 30, 2020 $ (38) $ (30) $ (68) Additions (39) 4 (35) Payments 61 4 65 Balance, June 30, 2021 $ (16) $ (22) $ (38) Payments 8 3 11 Balance, June 30, 2022 $ (8) $ (19) $ (27) Additions (111) — (111) Payments 52 2 54 Balance, June 30, 2023 $ (67) $ (17) $ (84) As of June 30, 2023 and 2022, restructuring liabilities of $74 million and $16 million, respectively, were included in Accounts payable, accrued expenses and other current liabilities in the Balance Sheets with the remaining liability balances of $10 million and $11 million, respectively, included in Non-current Other liabilities in the Balance Sheets. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | INVENTORIES, NET The Company’s inventories were comprised of the following: As of June 30, 2023 2022 (in millions) Licensed programming, including prepaid sports rights $ 720 $ 975 Owned programming 465 337 Total inventories, net 1,185 1,312 Less: current portion of inventories, net (543) (791) Total non-current inventories, net $ 642 $ 521 Owned programming Released $ 256 $ 205 In-process or other 209 132 Total $ 465 $ 337 The following table presents the aggregate amortization expense related to Inventories, net included in Operating expenses in the Statement of Operations: For the years ended June 30, 2023 2022 2021 (in millions) Total amortization expense $ 6,036 $ 5,379 $ 4,721 Based on the balance of inventories, net as of June 30, 2023, the estimated amortization expense for each of the succeeding three fiscal years is as follows: For the years ending June 30, 2024 2025 2026 (in millions) Estimated amortization expense $ 694 $ 123 $ 55 Inventories are evaluated for recoverability when an event or circumstance occurs that indicates that fair value may be less than unamortized costs. The Company will determine if there is an impairment by evaluating the fair value of the inventories, which are primarily supported by internal forecasts as compared to unamortized costs. The Company recognized impairments of approximately $10 million, $50 million and nil in fiscal 2023, 2022 and 2021, respectively, related to owned programming at the Cable Network Programming and Television segments, which were recorded in Operating expenses in the Statements of Operations. |
Fair Value
Fair Value | 12 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | FAIR VALUEFair value measurements are disclosed using a three-tiered fair value hierarchy which distinguishes market participant assumptions into the following categories: (i) inputs that are quoted prices in active markets (“Level 1”); (ii) inputs other than quoted prices included within Level 1 that are observable, including quoted prices for similar assets or liabilities (“Level 2”); and (iii) inputs that require the entity to use its own assumptions about market participant assumptions (“Level 3”). The following tables present information about financial assets and redeemable noncontrolling interests carried at fair value on a recurring basis: Fair value measurements As of June 30, 2023 Total Level 1 Level 2 Level 3 (in millions) Investments in equity securities $ 884 $ 884 (a) $ — $ — Redeemable noncontrolling interests (213) — — (213) (b) Total $ 671 $ 884 $ — $ (213) Fair value measurements As of June 30, 2022 Total Level 1 Level 2 Level 3 (in millions) Investments in equity securities $ 435 $ 435 (a) $ — $ — Redeemable noncontrolling interests (188) — — (188) (b) Total $ 247 $ 435 $ — $ (188) (a) The investment categorized as Level 1 primarily represents an investment in equity securities of Flutter Entertainment plc (“Flutter”) with a readily determinable fair value. (b) The Company utilizes both the market and income approach valuation techniques for its Level 3 fair value measures. Inputs to such measures could include observable market data obtained from independent sources such as broker quotes and recent market transactions for similar assets. It is the Company’s policy to maximize the use of observable inputs in the measurement of its Level 3 fair value measurements. To the extent observable inputs are not available, the Company utilizes unobservable inputs based upon the assumptions market participants would use in valuing the redeemable noncontrolling interests. Examples of utilized unobservable inputs are future cash flows and long-term growth rates. In connection with the combination of The Stars Group Inc. and Flutter in May 2020, FOX Sports received the right to acquire an 18.6% equity interest in FanDuel Group (“FanDuel”), a majority-owned subsidiary of Flutter, at a price set forth in the relevant agreement (structured as a 10-year option), which has been the subject of arbitration proceedings. In January 2023, the U.S. District Court for the Southern District of New York confirmed and entered the arbitrator’s ruling affirming FOX Sports’ 10-year call option expiring in December 2030 to acquire 18.6% of FanDuel for $3.7 billion, with a 5% annual escalator. As of June 30, 2023, the option price is approximately $4 billion. FOX has no obligation to commit capital towards this opportunity unless and until it exercises the option. In addition, Flutter cannot pursue an initial public offering for FanDuel without FOX’s consent or approval from the arbitrator. Redeemable Noncontrolling Interests The changes in redeemable noncontrolling interests classified as Level 3 measurements were as follows: For the years ended June 30, 2023 2022 2021 (in millions) Beginning of year $ (188) $ (261) $ (305) Acquisitions (a) — (58) — Net loss (income) 16 12 (25) Redemption of noncontrolling interests (b) — — 135 Distributions — 3 15 Accretion and other (c) (41) 116 (81) End of year $ (213) $ (188) $ (261) (a) The amount issued in fiscal 2022 was primarily due to the acquisition of an entertainment production company. (b) As a result of the exercise of a portion of the put rights held by the sports network minority shareholder during fiscal 2021, approximately $135 million was reclassified out of Redeemable noncontrolling interests into equity. At closing, the Company paid half of the purchase price in cash and delivered a three (c) As a result of the expiration of the sports network minority shareholder’s final put right during fiscal 2022, approximately $110 million was reclassified into equity. The fair values of the redeemable noncontrolling interests held in the entertainment production company and in Credible were determined by using discounted cash flow analysis and market-based valuation approach methodologies. Significant unobservable inputs used in the fair value measurements of the Company’s redeemable noncontrolling interests are EBITDA (as defined in Note 17—Segment Information) projections and multiples. Significant increases (decreases) in multiples would result in a significantly higher (lower) fair value measurement. The put right held by the Credible minority shareholder will become exercisable in fiscal 2025. The put right held by the entertainment production company’s minority shareholder will become exercisable in fiscal 2027. Financial Instruments The carrying value of the Company’s financial instruments exclusive of borrowings, such as cash and cash equivalents, receivables, payables and investments, accounted for using the measurement alternative method, approximates fair value. As of June 30, 2023 2022 (in millions) Borrowings Fair value $ 6,895 $ 7,084 Carrying value $ 7,210 $ 7,206 Fair value is generally determined by reference to market values resulting from trading on a national securities exchange or in an over-the-counter market (a Level 1 measurement). |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | PROPERTY, PLANT AND EQUIPMENT, NET As of June 30, 2023 2022 (in millions) Land $ 205 $ 199 Buildings and leaseholds 1,320 1,284 Machinery and equipment 1,904 1,743 3,429 3,226 Less: accumulated depreciation and amortization (1,966) (1,729) 1,463 1,497 Construction in progress 245 185 Total property, plant and equipment, net $ 1,708 $ 1,682 Depreciation and amortization expense related to Property, plant and equipment was $337 million, $297 million and $237 million for fiscal 2023, 2022 and 2021, respectively. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | GOODWILL AND INTANGIBLE ASSETS, NET The changes in the carrying values of the Company’s intangible assets and related accumulated amortization were as follows: Intangible assets not subject to amortization Amortizable intangible assets, net (a) Total intangible assets, net FCC licenses Other Total (in millions) Balance, June 30, 2021 $ 2,250 $ 642 $ 2,892 $ 262 $ 3,154 Acquisitions (b) — — — 71 71 Amortization and other — — — (68) (68) Balance, June 30, 2022 $ 2,250 $ 642 $ 2,892 $ 265 $ 3,157 Amortization and other — — — (73) (73) Balance, June 30, 2023 $ 2,250 $ 642 $ 2,892 $ 192 $ 3,084 (a) Net of accumulated amortization of $366 million and $292 million as of June 30, 2023 and 2022, respectively. (b) See Note 3—Acquisitions, Disposals and Other Transactions under the heading “Acquisitions and Disposals.” Amortization expense related to finite-lived intangible assets was $74 million, $66 million and $63 million for fiscal 2023, 2022 and 2021, respectively. Based on the balance of finite-lived intangible assets as of June 30, 2023, the estimated amortization expense for each of the succeeding five fiscal years is as follows: For the years ending June 30, 2024 2025 2026 2027 2028 (in millions) Estimated amortization expense (a) $ 46 $ 33 $ 32 $ 29 $ 23 (a) These amounts may vary as acquisitions and dispositions occur in the future. The changes in the carrying value of goodwill, by segment, are as follows: Cable Network Programming Television Other, Corporate and Eliminations Total Goodwill (in millions) Balance, June 30, 2021 $ 1,059 $ 2,155 $ 221 $ 3,435 Acquisitions and other (a) — 86 33 119 Balance, June 30, 2022 $ 1,059 $ 2,241 $ 254 $ 3,554 Acquisitions and other — 5 — 5 Balance, June 30, 2023 $ 1,059 $ 2,246 $ 254 $ 3,559 (a) See Note 3—Acquisitions, Disposals and Other Transactions under the heading “Acquisitions and Disposals.” The carrying amount of Television segment goodwill was net of accumulated impairments of $371 million as of June 30, 2023 and 2022. |
Borrowings
Borrowings | 12 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS Public Debt - Senior Notes Issued The Company has issued senior notes (the “Notes”) under an Indenture, dated as of January 25, 2019, by and between the Company and The Bank of New York Mellon, as Trustee (the “2019 Indenture”). The Notes are direct unsecured obligations of the Company and rank pari passu with all other senior indebtedness of the Company, including the indebtedness under the Revolving Credit Agreement described below. Redemption may occur, at the option of the holders, at 101% of the principal amount plus an accrued interest amount in certain circumstances where a change of control is deemed to have occurred. The Notes are subject to certain covenants, which, among other things, limit the Company’s ability and the ability of the Company’s subsidiaries, to create liens and engage in merger, sale or consolidation transactions. The 2019 Indenture does not contain any financial maintenance covenants. In April 2020, the Company issued $1.2 billion of senior notes and used the net proceeds for general corporate purposes. In January 2019, the Company issued $6.8 billion of senior notes and used the net proceeds, together with available cash on its balance sheet, to fund the Dividend and to pay fees and expenses incurred in connection with the issuance of such notes and the Separation and the Transaction. The following table summarizes the Company’s senior notes, net of repayments: Outstanding as of June 30, 2023 2022 (in millions) Public debt 4.030% senior notes due 2024 $ 1,250 $ 1,250 3.050% senior notes due 2025 600 600 4.709% senior notes due 2029 2,000 2,000 3.500% senior notes due 2030 600 600 5.476% senior notes due 2039 1,250 1,250 5.576% senior notes due 2049 1,550 1,550 Total public debt 7,250 7,250 Less: unamortized discount and debt issuance costs (40) (44) Total borrowings $ 7,210 $ 7,206 Current Borrowings Included in Borrowings within Current liabilities as of June 30, 2023 was $1.25 billion of 4.030% senior due in January 2024. Revolving Credit Agreement On June 14, 2023, the Company entered into a credit agreement (the “Revolving Credit Agreement”) among the Company, as Borrower, the initial lenders named therein, the initial issuing banks named therein, Citibank, N.A., as Administrative Agent, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA, as Co-Syndication Agents and JPMorgan Chase Bank, N.A. and Morgan Stanley Senior Funding Inc., as Co-Documentation Agents. The Company entered into the Revolving Credit Agreement in anticipation of the transition away from the London Interbank Offered Rate (“LIBOR”) as a result of reference rate reform and to replace the Company’s previous unsecured revolving credit facility, dated as of March 15, 2019, which was scheduled to mature in March 2024. The Revolving Credit Agreement provides for a $1.0 billion unsecured revolving credit facility with a sub-limit of $150 million available for the issuance of letters of credit and a maturity date of June 2028. Under the Revolving Credit Agreement, the Company may request an increase in the amount of the credit facility commitments up to a maximum facility amount of $1.75 billion and the Company may request that the maturity date be extended for up to two additional one-year periods. The material terms of the Revolving Credit Agreement include the requirement that the Company maintain specific leverage ratios and limitations on indebtedness. The interest rates and fees under the Revolving Credit Agreement are based on the Company’s long-term senior unsecured non-credit enhanced debt ratings. Given the current credit ratings, the interest rate on borrowings under the Revolving Credit Agreement would be the forward-looking term rate based on the Secured Overnight Financing Rate plus 1.125% and the facility fee is 0.125%. As of June 30, 2023, there were no borrowings outstanding under the Revolving Credit Agreement. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | LEASES Lessee Arrangements The following amounts were recorded in the Company’s Balance Sheet relating to its operating leases and other supplemental information: As of June 30, 2023 2022 (in millions) ROU assets $ 947 $ 477 Lease liabilities Current lease liabilities $ 72 $ 107 Non-current lease liabilities 925 405 Total lease liabilities $ 997 $ 512 Other supplemental information Weighted average remaining lease term 17 years 9 years Weighted average discount rate 5 % 3 % In December 2022, the Company renewed the operating lease for its corporate headquarters at 1211 Avenue of the Americas in New York through fiscal 2042. In connection with this extension, the Company recorded additional operating lease assets and liabilities of approximately $540 million as of June 30, 2023. The following table presents information about the Company’s lease costs and supplemental cash flows information for leases: For the years ended June 30, 2023 2022 2021 (in millions) Lease costs Total lease costs (a) $ 145 $ 128 $ 126 Supplemental cash flows information Operating cash flows from operating leases $ 119 $ 116 $ 134 ROU assets obtained in exchange for operating lease liabilities $ 568 $ 137 $ 49 (a) Total lease costs of $145 million, $128 million and $126 million for fiscal 2023, 2022 and 2021 are net of sublease income of approximately $15 million, $15 million and $30 million, respectively. Approximately $15 million of the sublease income for fiscal 2021 relates to office facilities that were subleased through November 2020 to News Corporation, a related party (see Note 13—Related Party Transactions). The following table presents the lease payments relating to the Company’s operating leases: As of June 30, 2023 (in millions) Fiscal Year 2024 $ 123 2025 113 2026 63 2027 61 2028 93 Thereafter 1,101 Total lease payments 1,554 Less: imputed interest (557) Present value of operating lease liabilities $ 997 Lessor Arrangements The Company’s lessor arrangements primarily relate to its owned production and office facilities at the FOX Studio Lot, which is located in Los Angeles, California . The Company is responsible for the management of the FOX Studio Lot , which includes managing and providing facilities, studio operations, and production services. The Company le ases production and office space on the FOX Studio Lot to 21CF for an initial term of seven years, subject to two five-year renewal options exercisable by 21CF. As a result, the FOX Studio Lot will predominantly be utilized by Disney productions until 2026. The Company will receive approximately $50 million annually in lease payments over the remaining lease term. The Company recorded total lease income of approximately $60 million, $60 million, and $50 million for fiscal 2023, 2022 and 2021 respectively, which is included in Revenues in the Statements of Operations. The Company recognizes lease payments for operating leases as revenue on a straight-line basis over the lease term and variable lease payments as revenue in the period incurred. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Common Stock and Preferred Stock The Company has two classes of common stock that are authorized and outstanding: Class A Common Stock and Class B Common Stock. As a general matter, holders of Class B Common Stock are entitled to one vote per share on all matters on which stockholders have the right to vote, including director elections. Holders of Class A Common Stock are entitled to vote only in the limited circumstances set forth in the Company’s Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”). As of June 30, 2023, there were approximately 15,100 holders of record of shares of Class A Common Stock and approximately 3,400 holders of record of shares of Class B Common Stock. In the event of a liqui dation or dissolution or winding up of the Company, after distribution in full of the preferential and/or other amounts to be distributed to the holders of shares of any outstanding series of preferred stock or series common stock, holders of Class A Common Stock and Class B Common Stock, to the extent fixed by the Board of Directors (the “Board”) with respect thereto, are entitled to receive all of the remaining assets of the Company available for distribution to its stockholders, ratably in proportion to the number of shares held by Class A Common Stock holders and Class B Common Stock holders, respectively. In the event of any merger or consolidation with or into another entity, the holders of Class A Common Stock and the holders of Class B Common Stock generally are entitled to receive substantially identical per share consideration. Under the Certificate of Incorporation, the Board is authorized to issue shares of preferred stock or common stock at any time, without stockholder approval, and to determine all the terms of those shares, including the following: (i) the voting rights, if any, except that the issuance of preferred stock or series common stock which entitles holders thereof to more than one vote per share requires the affirmative vote of the holders of a majority of the combined voting power of the then outstanding shares of the Company’s capital stock entitled to vote generally in the election of directors; (ii) the dividend rate and preferences, if any, which that preferred stock or common stock will have compared to any other class; and (iii) the redemption and liquidation rights and preferences, if any, which that preferred stock or common stock will have compared to any other class. Any decision by the Board to issue preferred stock or common stock must, however, be taken in accordance with the Board’s fiduciary duty to act in the best interests of the Company’s stockholders. The Company is authorized to issue 35,000,000 shares of preferred stock, par value $0.01 per share and 35,000,000 shares of series common stock, par value $0.01 per share. The Board has the authority, without any further vote or action by the stockholders, to issue preferred stock and series common stock in one or more series and to fix the number of shares, designations, relative rights (including voting rights), preferences, qualifications and limitations of such series to the full extent permitted by Delaware law. Stock Repurchase Program The Board previously authorized a stock repurchase program under which the Company can repurchase $4 billion of Class A Common Stock and Class B Common Stock. In February 2023, the Board authorized incremental stock repurchases of an additional $3 billion of Common Stock. With this increase, the Company’s total stock repurchase authorization is now $7 billion. The program has no time limit and may be modified, suspended or discontinued at any time. As of June 30, 2023 , the Company’s remaining stock repurchase authorization was approximately $2.4 billion. Fiscal 2023 In connection with the stock repurchase program, the Company entered into an accelerated share repurchase (“ASR”) agreement in February 2023 under which the Company paid a third-party financial institution $1 billion and received an initial delivery of approximately 22.5 million shares of Class A Common Stock, representing 80% of the shares expected to be repurchased under the ASR agreement, at a price of $35.54 per share, which was the Nasdaq Global Select Market (“Nasdaq”) closing share price of the Class A Common Stock on February 8, 2023. Upon settlement of the ASR agreement in August 2023, the Company received a final delivery of approximately 7.8 million shares of Class A Common Stock. The final number of shares purchased under the ASR agreement was determined using a price of $33.03 per share (the volume-weighted average market price of the Class A Common Stock on the Nasdaq during the term of the ASR agreement less a discount). The Company accounted for the ASR agreement as two separate transactions. The initial delivery of Class A Common Stock was accounted for as a treasury stock transaction recorded on the acquisition date. The final settlement of Class A Common Stock was accounted for as a forward contract indexed to the Class A Common Stock and qualified as an equity transaction. Fiscal 2021 In connection with the stock repurchase program, the Company entered into two ASR agreements in August 2020 to repurchase $154 million of Class A Common Stock and $66 million of Class B Common Stock. In accordance with the ASR agreements, the Company paid a third-party financial institution $154 million and $66 million and received initial deliveries of approximately 4.7 million and 2.0 million shares of Class A Common Stock and Class B Common Stock, respectively, representing 80% of the shares expected to be repurchased under each ASR agreement, at a price of $26.00 and $26.01 per share, which was the Nasdaq closing share price of the Class A Common Stock and Class B Common Stock, respectively, on August 21, 2020 . Upon settlement of the ASR agreements in September 2020 , the Company received final deliveries of approximately 0.9 million and 0.4 million shares of Class A Common Stock and Class B Common Stock, respectively. The final number of shares purchased under the ASR agreements was determined using a price of $27.57 and $27.67 per share (the volume-weighted average market price on the Nasdaq of the Class A Common Stock and Class B Common Stock, respectively, during the terms of the ASR agreements less a discount applicable for the Class A Common Stock). The Company accounted for each ASR agreement as two separate transactions. The initial deliveries of Class A Common Stock and Class B Common Stock were accounted for as treasury stock transactions recorded on the acquisition date. The final settlements of Class A Common Stock and Class B Common Stock were accounted for as forward contracts indexed to the Class A Common Stock or Class B Common Stock, as applicable, and qualified as equity transactions. In addition to the shares purchased under the ASR agreements, the Company repurchased shares of Class A Common Stock and Class B Common Stock in the open market during fiscal 2023, 2022 and 2021. Repurchased sh ares are retired and reduce the number of shares issued and outstanding. The Company allocates the amount of the repurchase price over par value between additional paid-in capital and retained earnings. The foll owing table summarizes the Company’s repurchases of its Class A Common Stock and Class B Common Stock: For the years ended June 30, 2023 2022 2021 (in millions) Total cost of repurchases (a) $ 2,000 $ 1,000 $ 1,001 Total number of shares repurchased 54 27 31 (a) These amounts exclude any fees, commissions or other costs associated with the share repurchases. Stockholders Agreement The Company announced on November 6, 2019 that it had entered into a stockholders agreement with the Murdoch Family Trust pursuant to which the Company and the Murdoch Family Trust have agreed not to take actions that would result in the Murdoch Family Trust and Murdoch family members together owning more than 44% of the outstanding voting power of the shares of Class B Common Stock or would increase the Murdoch Family Trust’s voting power by more than 1.75% in any rolling twelve-month period. The Murdoch Family Trust would forfeit votes to the extent necessary to ensure that the Murdoch Family Trust and the Murdoch family collectively do not exceed 44% of the outstanding voting power of the Class B shares, except where a Murdoch family member votes their own shares differently from the Murdoch Family Trust on any matter. Dividends The following table summarizes the dividends declared and paid per share on both the Company’s Class A Common Stock and Class B Common Stock: For the years ended June 30, 2023 2022 2021 Cash dividend per share $ 0.50 $ 0.48 $ 0.46 Comprehensive Income Comprehensive income is reported in the Statements of Comprehensive Income and consists of Net income and Other comprehensive income, including benefit plan adjustments, which affect stockholders’ equity, and under GAAP, are excluded from Net income. The following tables summarize the activity within Other comprehensive income: For the year ended June 30, 2023 Before tax Tax benefit (provision) Net of tax (in millions) Benefit plan, cumulative translation adjustments and other Unrealized gains $ 79 $ (19) $ 60 Reclassifications realized in net income (a) 19 (5) 14 Cumulative translation adjustment 3 — 3 Other comprehensive income $ 101 $ (24) $ 77 For the year ended June 30, 2022 Before tax Tax benefit (provision) Net of tax (in millions) Benefit plan and cumulative translation adjustments Unrealized gains $ 100 $ (25) $ 75 Reclassifications realized in net income (a) 32 (8) 24 Cumulative translation adjustment (7) — (7) Other comprehensive income $ 125 $ (33) $ 92 For the year ended June 30, 2021 Before tax Tax benefit (provision) Net of tax (in millions) Benefit plan adjustments Unrealized gains $ 87 $ (21) $ 66 Reclassifications realized in net income (a) 45 (12) 33 Other comprehensive income $ 132 $ (33) $ 99 (a) Reclassifications of amounts related to benefit plan adjustments are included in Other, net in the Statements of Operations (See Note 15—Pension and Other Postretirement Benefits for additional information). Accumulated other comprehensive loss The following table summarizes the components of Accumulated other comprehensive loss, net of tax: As of June 30, 2023 2022 2021 (in millions) Benefit plan adjustments and other $ (145) $ (219) $ (318) Cumulative translation adjustment (4) (7) — Accumulated other comprehensive loss, net of tax $ (149) $ (226) $ (318) |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-Based Compensation | EQUITY-BASED COMPENSATIONThe Company has equity-based compensation plans, including the Fox Corporation 2019 Shareholder Alignment Plan (the “SAP”), under which stock options (including performance-based stock options (“PSOs”), stock appreciation rights, restricted and unrestricted stock, RSUs, performance stock units “PSUs”) an d other types of FOX or subsidiary equity awards may be granted. 2019 Shareholder Alignment Plan The Company’s officers, directors and employees are eligible to participate in the SAP. The maximum number of shares of Class A Common Stock that may be issued under the SAP is 65 million shares. As of June 30, 2023, the remaining number of shares of Class A Common Stock available for issuance under the SAP was approximately 39 million. Awards granted under the SAP (other than stock options or stock appreciation rights) entitle the holder to receive Dividend Equivalents (as defined in the SAP) for each regular cash dividend on the common stock underlying the award paid by the Company during the award period. Dividend equivalents granted with respect to equity awards will be accrued during the applicable award period and such dividend equivalents will vest and be paid only if and when the underlying award vests. The fair value of equity-based compensation under the SAP was calculated according to the type of award issued. Restricted Stock Units RSUs are awards that represent the potential to receive shares of Class A Common Stock at the end of the applicable vesting period, subject to the terms and conditions of the SAP, the applicable award documents and such other terms and conditions as the Compensation Committee of the Board (the “Compensation Committee”) may es tablish. RSUs awarded under the SAP are fair valued based upon the fair market value of Class A Common Stock on the grant date. Any person who holds RSUs has no ownership interest in the shares of Class A Common Stock to which such RSUs relate until and unless shares of Class A Common Stock are delivered to the holder. In fiscal 2023, 2022 and 2021 , a total of approximately 2.1 million, 1.7 million and 2.2 million RSUs were granted, respectively, which vest in equal annual installments over a three-year period subject to the participants’ continued employment with the Company. Performance Stock Units PSUs are fair valued on the date of grant and expensed over the service period using a straight-line method as the awards cliff vest at the end of a three-year performance period. The Company also estimates the number of shares expected to vest which is based on management’s determination of the probable outcome of the performance conditions, which requires considerable judgment. The Company records a cumulative adjustment in periods in which the Com pany’s estimate of the number of shares expected to vest changes. Additionally, the Company ultimately adjusts the expense recognized to reflect the actual vested shares following the resolution of the performance conditions. The number of shares that will be issued upon vesting of PSUs can range from 0% to 200% of the target award, based on the Company’s three-year total shareholder return (“TSR”) as measured against the three-year TSR of the companies that comprise the Standard and Poor’s 500 Index and other performance measures. The fair value of the TSR condition is determined using a Monte Carlo simulation model. In fiscal 2023, 2022 and 2021 , a total of approximately 0.2 million, 0.2 million and 0.3 million PSUs were granted, respectively, which have a three-yea r performance measurement period. The awards are subject to the achievement of three pre-established objective performance measures determined by the Compensation Committee. The awards issued will be settled in shares of Class A Common Stock upon vesting and are subject to the participants’ continued employment with the Company. Any person who holds PSUs has no ownership interest in the shares of Class A Common Stock to which such PSUs relate until and unless shares of Class A Common Stock are delivered to the holder. All shares of Class A Common Stock underlying awards that are cancelled or forfeited become available for future grants. Certain of these awards have a graded vesting provision and the expense recognition is accelerated. The following table summarizes the activity related to RSUs and target PSUs granted to the Company’s employees to be settled in stock (RSUs and PSUs in thousands): Fiscal 2023 Fiscal 2022 Fiscal 2021 Number of shares Weighted average grant- date fair value Number of shares Weighted average grant- date fair value Number of shares Weighted average grant- date fair value RSUs and PSUs Unvested units at beginning of the year 5,052 $ 32.53 5,695 $ 31.75 8,043 $ 29.98 Granted 2,314 34.31 1,909 35.77 2,495 28.07 Vested (2,092) 31.75 (2,417) 33.32 (4,654) 26.71 Cancelled (990) 33.30 (135) 31.44 (189) 32.01 Unvested units at the end of the year (a) 4,284 $ 33.72 5,052 $ 32.53 5,695 $ 31.75 (a) The intrinsic value of unvested RSUs and target PSUs as of June 30, 2023 was approximately $145 million. Stock Options Stock options are awards that entitle the holder to purchase a specified number of shares of Class A Common Stock at a specified price for a specified period of time and become exercisable over time, subject to the terms and conditions of the SAP, the applicable award documents and such other terms and conditions as the Compensation Committee of the Board may establish. Stock Options granted under the SAP were fair valued using a Black-Scholes option valuation model that uses the following assumptions: (i) expected volatility was generally based on historical volatility of the Company and the Company’s peer group over the expected term of the stock options; (ii) expected term of stock options granted was generally determined by analyzing historical data of the Company’s peer group and represented the period of time that stock options granted were expected to be outstanding; (iii) risk-free interest rate was based on the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award; and (iv) expected dividend yield. Performance-Based Stock Options PSOs are awards that entitle the holder to purchase a specified number of shares of Class A Common Stock at a specified price for a specified period of time, contingent on the performance of the Class A Common Stock over a three-year period , subject to the terms and conditions of the SAP, the applicable award documents and such other terms and conditions as the Compensation Committee of the Board may establish. The PSOs granted under the SAP will vest in full only if the Company’s Class A Common Stock exceeds the exercise price of the PSO by a certain threshold over a certain period of time during the performance period (the “market condition”). The PSOs were fair valued using a Monte Carlo simulation model that uses the following assumptions: (i) expected volatility; (ii) expected term; (iii) risk-free interest rate; and (iv) expected dividend yield. Compensation cost related to the PSO will be recognized even if the market condition is not met. During fiscal 2023, 2022 and 2021, the Company granted approximately 4.3 million, 4.0 million and 5.0 million PSOs, respectively. The PSOs will vest in full at the end of the applicable three-year performance period if the market condition is met, and have a term of seven years thereafter. The following table summarizes information about the Company’s stock options and PSOs granted under the SAP during fiscal 2023, 2022 and 2021 (options in thousands): Fiscal 2023 Fiscal 2022 Fiscal 2021 Number of options Weighted average exercise price Number of options Weighted average exercise price Number of options Weighted average exercise price Outstanding at the beginning of the year 14,250 $ 32.90 11,150 $ 32.09 6,809 $ 35.11 Granted 4,314 33.40 3,990 34.83 5,003 27.52 Exercised (a) (234) 28.76 (542) 31.94 (386) 27.21 Cancelled (1,282) 32.77 (348) 30.38 (276) 30.44 Outstanding at the end of the year (b) 17,048 $ 33.12 14,250 $ 32.90 11,150 $ 32.09 Exercisable at the end of the year (c) 5,282 $ 36.35 4,586 $ 37.13 3,981 $ 38.12 Weighted average grant-date fair value of options granted $ 10.32 $ 7.48 $ 7.37 Weighted average remaining contractual term of options outstanding at the end of the year 6.51 years 6.75 years 6.82 years Weighted average remaining contractual term of options exercisable at the end of the year 2.96 years 3.89 years 4.81 years (a) During fiscal 2023, 2022 and 2021, the Company received approximately $7 million, $17 million and $12 million, respectively, in cash payments from the exercise of stock options. (b) The intrinsic value of options outstanding as of June 30, 2023, 2022 and 2021 was $37.1 million, $26.9 million and $65.6 million, respectively. (c) The intrinsic value of options exercisable as of June 30, 2023, 2022 and 2021 was $6.8 million, $3.1 million and $5.5 million, respectively. The fair value of each PSO and stock option grant is estimated on the date of grant with the following weighted average assumptions used for grants during fiscal 2023, 2022 and 2021 : For the years ended June 30, 2023 2022 2021 Expected volatility 35.00 % 35.00 % 35.00 % Risk-free interest rate 2.83 % 1.20 % 0.66 % Expected dividend yield 1.40 % 1.31 % 1.67 % Expected term 5.30 years 5.29 years 5.29 years The following table summarizes the Company’s equity-based compensation: For the years ended June 30, 2023 2022 2021 (in millions) Equity-based compensation $ 74 $ 102 $ 147 Intrinsic value of all settled equity-based awards $ 77 $ 97 $ 139 Tax benefit on settled equity-based awards $ 14 $ 21 $ 23 As of June 30, 2023, the Company’s total estimated compensation cost, not yet recognized, related to non-vested equity awards held by the Company’s employees was approximately $70 million and is expected to be recognized over a weighted average period between one |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS In the ordinary course of business, the Company enters into transactions with related parties to buy and/or sell programming and purchase and/or sell advertising. For fiscal 2023, 2022 and 2021, the related party revenue and expense were not material (See Note 10—Leases for information related to office facilities that were subleased to News Corporation for a portion of fiscal 2021 and Note 14—Commitments and Contingencies and Note 20—Additional Financial Information for information related to U.K. Newspaper Matters Indemnity obligation to News Corporation). As of June 30, 2023 and 2022, the amounts due to related parties were $124 million and $81 million, respectively, which were included in Accounts payable, accrued expenses and other current liabilities in the Balance Sheets. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES The Company has commitments under certain firm contractual arrangements (“firm commitments”) to make future payments. These firm commitments secure the future rights to various assets and services to be used in the normal course of operations. The following table summarizes the Company’s material firm commitments as of June 30, 2023: As of June 30, 2023 Payments due by period Total 1 year 2 - 3 years 4 - 5 years After 5 years (in millions) Borrowings $ 7,250 $ 1,250 $ 600 $ — $ 5,400 Licensed programming 31,115 5,102 8,180 8,044 9,789 Other commitments and contractual obligations 1,032 318 336 138 240 Total commitments $ 39,397 $ 6,670 $ 9,116 $ 8,182 $ 15,429 Licensed programming Under the Company’s contracts with the National Football League (“NFL”), the remaining future minimum payments for program rights to broadcast certain football games are payable over the remaining term of the contract through the 2033 NFL season. The NFL has a one-time right to terminate the agreement after the 2029 NFL season. The Company’s contract with Major League Baseball (“MLB”) gives the Company rights to broadcast certain regular season and post-season games, as well as exclusive rights to broadcast MLB’s World Series and All-Star Game through the 2028 MLB season. The Company’s contracts with the National Association of Stock Car Auto Racing (“NASCAR”) give the Company rights to broadcast certain races and ancillary content through calendar year 2024. Under the Company’s contracts with certain collegiate conferences, remaining future minimum payments for program rights to broadcast certain sports events are payable over the remaining terms of the contracts. Other commitments and contractual obligations Primarily includes obligations relating to talent costs and television rating services agreements. Pension and other postretirement benefits The total accrued net benefit liability for pension and other postretirement benefit plans recognized as of June 30, 2023 was $374 million (See Note 15—Pension and Other Postretirement Benefits). This amount is affected by, among other items, statutory funding levels, changes in plan demographics and assumptions and investment returns on plan assets. Because of the current overall funded status of the Company’s material plans, the accrued liability does not represent expected near-term liquidity needs and, accordingly, this amount is not included in the contractual obligations table. Contingencies The Company establishes an accrued liability for legal claims and indemnification claims when the Company 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. Any fees, expenses, fines, penalties, judgments or settlements which might be incurred by the Company in connection with the various proceedings could affect the Company’s results of operations and financial condition. For the contingencies disclosed below for which there is at least a reasonable possibility that a loss may be incurred, other than the accrual provided, the Company was unable to estimate the amount of loss or range of loss. FOX News The Company’s FOX News business and certain of its current and former employees have been subject to allegations of sexual harassment and discrimination on the basis of sex and race. The Company has resolved many of these claims and is contesting other claims in litigation. The Company has also received regulatory and investigative inquiries relating to these matters. To date, none of the amounts paid in settlements or reserved for pending or future claims is material, individually or in the aggregate, to the Company. The amount of additional liability, if any, that may result from these or related matters cannot be estimated at this time. However, the Company does not currently anticipate that the ultimate resolution of any such pending matters will have a material adverse effect on its business, financial condition, results of operations or cash flows. U.K. Newspaper Matters Indemnity In connection with the separation of 21CF and News Corporation in June 2013 (the “21CF News Corporation Separation”), 21CF agreed to indemnify News Corporation, on an after-tax basis, for payments made after the 21CF News Corporation Separation arising out of civil claims and investigations relating to phone hacking, illegal data access and inappropriate payments to public officials that occurred at subsidiaries of News Corporation before the 21CF News Corporation Separation, as well as legal and professional fees and expenses paid in connection with the related criminal matters, other than fees, expenses and costs relating to employees who are not (i) directors, officers or certain designated employees or (ii) with respect to civil matters, co-defendants with News Corporation (the “U.K. Newspaper Matters Indemnity”). In accordance with the Separation Agreement, the Company assumed certain costs and liabilities related to the U.K. Newspaper Matters Indemnity. The liability recorded in the Balance Sheets related to the indemnity was approximately $115 million and $65 million as of June 30, 2023 and 2022, respectively. The increase in the liability recorded was attributable to an increase in the number of civil claims submitted in advance of the September 30, 2022 cutoff date set by the judge for this phase of the litigation. Defamation and Disparagement Claims From time to time, the Company and its news businesses, including FOX News Media and the FOX Television Stations, and their employees are subject to lawsuits alleging defamation or disparagement. These include lawsuits filed by Smartmatic USA Corp. and certain of its affiliates (collectively, “Smartmatic”) in February 2021 seeking $2.7 billion in damages and Dominion Voting Systems, Inc. and certain of its affiliates (collectively, “Dominion”) in March 2021 seeking $1.6 billion in damages. On March 31, 2023, the court in the Dominion case issued its rulings on summary judgment motions that were unfavorable to the Company. Following these rulings, on April 18, 2023, the Company and its subsidiary, Fox News Network, LLC, entered into a Release and Settlement Agreement with Dominion pursuant to which the parties agreed to resolve the lawsuits among them. The Company paid an aggregate of approximately $800 million to settle this and a related lawsuit in April 2023, which is included in Other, net in the Consolidated Statement of Operations for fiscal 2023 (See Note 20—Additional Financial Information under the heading “Other, net”). The Company continues to believe the Smartmatic and other pending lawsuits alleging defamation or disparagement are without merit and intends to defend against them vigorously, including through any appeals. Discovery in the Smartmatic case remains ongoing and it is likely that depositions, expert discovery and summary judgment and other key motions will follow. At this time, a trial in the Smartmatic lawsuit is not expected to commence until 2025. The Company is unable to predict the final outcome of these matters and has determined that a loss in the Smartmatic case is neither probable nor reasonably estimable. There can be no assurance that the ultimate resolution of these pending matters will not have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. On April 11, 2023 and April 20, 2023, stockholders of the Company filed derivative lawsuits against certain directors of the Company under the captions Schwarz v. Murdoch et al., C.A. No. 2023-0418 (Del. Ch.) and Greenberg et al. v. Murdoch et al., C.A. No. 2023-0440 (Del. Ch.). The lawsuits each named the Company as a nominal defendant. The complaints allege that members of the Company’s Board breached their fiduciary duties by allowing the Company’s news channel to air programming regarding election fraud in connection with the 2020 U.S. Presidential election, which resulted in significant defamation cases. The plaintiffs seek orders awarding damages in favor of the Company; directing the Company to reform and improve its policies and procedures; and awarding the plaintiffs attorneys' fees and costs. The Company believes the lawsuits are without merit and intends to vigorously defend against them. Other The Company’s operations are subject to tax primarily in various domestic jurisdictions and as a matter of course, the Company is regularly audited by federal and state tax authorities. The Company believes it has appropriately accrued for the expected outcome of all pending tax matters and does not currently anticipate that the ultimate resolution of pending tax matters will have a material adverse effect on its consolidated financial condition, future results of operations or liquidity. Each member of the 21CF consolidated group, which includes 21CF, the Company (prior to the Transaction) and 21CF’s other subsidiaries, is jointly and severally liable for the U.S. federal income and, in certain jurisdictions, state tax liabilities of each other member of the consolidated group. Consequently, the Company could be liable in the event any such liability is incurred, and not discharged, by any other member of the 21CF consolidated group. The tax matters agreement entered into in connection with the Separation requires 21CF and/or Disney to indemnify the Company for any such liability. Disputes or assessments could arise during future audits by the IRS in amounts that the Company cannot quantify. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | PENSION AND OTHER POSTRETIREMENT BENEFITSThe Company participates in and/or sponsors various pension, savings and postretirement benefit plans. Pension plans and postretirement benefit plans are closed to new participants with the exception of a small group covered by collective bargaining agreements. The Company has a legally enforceable obligation to contribute to some plans and is not required to contribute to others. The plans include both defined benefit pension plans and employee non-contributory and employee contributory accumulation plans covering all eligible employees. The Company makes contributions in accordance with applicable laws or contract terms. Pension and postretirement plans that are sponsored by the Company are accounted for as defined benefit pension plans. Accordingly, the funded and unfunded position of each plan is recorded in the Balance Sheets. Actuarial gains and losses that have not yet been recognized through income are recorded in Accumulated other comprehensive loss net of taxes, and they are systematically amortized as a component of net periodic benefit cost. The Company’s benefit obligation for the plans is calculated using assumptions which the Company reviews on a regular basis. The funded status of the plans can change from year to year, but the assets of the funded plans have been sufficient to pay all benefits that came due in each of fiscal 2023, 2022 and 2021. The Company uses a June 30 measurement date for all pension and postretirement benefit plans. The following table sets forth the change in the projected benefit obligation, change in the fair value of plan assets and funded status for the Company’s pension and postretirement benefit plans: Pension benefits Postretirement benefits As of June 30, 2023 2022 2023 2022 (in millions) Projected benefit obligation, beginning of the year $ 1,203 $ 1,468 $ 53 $ 98 Service cost 30 38 1 1 Interest cost 52 30 2 2 Benefits paid (22) (22) (4) (4) Settlements (a) (32) (56) — — Actuarial gains (b) (58) (256) (5) (46) Other (1) 1 — 2 Projected benefit obligation, end of the year 1,172 1,203 47 53 Change in the fair value of plan assets for the Company’s benefit plans: Fair value of plan assets, beginning of the year 801 972 — — Actual return on plan assets 53 (152) — — Employer contributions 53 59 4 4 Benefits paid (22) (22) (4) (4) Settlements (a) (32) (56) — — Fair value of plan assets, end of the year 853 801 — — Funded status (c) $ (319) $ (402) $ (47) $ (53) Grantor Trust assets (c) $ 276 $ 270 $ — $ — (a) Represents the full settlement of former employees’ deferred pension benefit obligations through lump sum payments. (b) Actuarial gains for June 30, 2023 and June 30, 2022 were primarily due to a change in the discount rate assumption utilized in measuring plan obligations. (c) The Company has established an irrevocable grantor trust (the “Grantor Trust”), administered by an independent trustee, with the intention of making cash contributions to the Trust to fund certain future pension benefit obligations of the Company. The assets in the Grantor Trust are unsecured funds of the Company and can be used to satisfy the Company’s obligations in the event of bankruptcy or insolvency. Amounts recognized in the Balance Sheets consist of: Pension benefits Postretirement benefits As of June 30, 2023 2022 2023 2022 (in millions) Pension assets $ 8 $ 6 $ — $ — Accrued pension liabilities (327) (408) (47) (53) Net amounts recognized $ (319) $ (402) $ (47) $ (53) Amounts recognized in Accumulated other comprehensive loss, before tax, consist of: Pension benefits Postretirement benefits As of June 30, 2023 2022 2023 2022 (in millions) Actuarial losses (gains) $ 228 $ 322 $ (34) $ (33) Prior service cost 1 3 — — Net amounts recognized $ 229 $ 325 $ (34) $ (33) Accumulated pension benefit obligations as of June 30, 2023 and 2022 were $1.04 billion and $1.07 billion, respectively. For the funded plans, as of June 30, 2023, the projected benefit obligation exceeds the fair value of plan assets except for two plans that have assets of $123 million, a projected benefit obligation of $115 million and an accumulated benefit obligation of $112 million. Information about funded and unfunded pension plans is presented below: Funded plans Unfunded plans As of June 30, 2023 2022 2023 2022 (in millions) Projected benefit obligation $ 901 $ 930 $ 271 $ 273 Accumulated benefit obligation 777 801 267 268 Fair value of plan assets 853 801 — (a) — (a) (a) The fair value of the assets in the Grantor Trust as of June 30, 2023 and 2022 was $276 million and $270 million, respectively. Information about funded and unfunded pension plans in which the accumulated benefit obligation exceeds fair value of the plan assets is presented below: Funded plans Unfunded plans As of June 30, 2023 2022 2023 2022 (in millions) Projected benefit obligation $ — $ 807 $ 271 $ 273 Accumulated benefit obligation — (a) 683 267 268 Fair value of plan assets — (a) 675 — (b) — (b) (a) As of June 30, 2023, the fair value of plan assets exceeded the accumulated benefit obligation for the funded plans. (b) The fair value of the assets in the Grantor Trust as of June 30, 2023 and 2022 was $276 million and $270 million, respectively. The components of net periodic benefit costs were as follows: Pension benefits Postretirement benefits For the years ended June 30, 2023 2022 2021 2023 2022 2021 (in millions) Service cost $ 30 $ 38 $ 38 $ 1 $ 1 $ 2 Interest cost 52 30 30 2 2 2 Expected return on plan assets (40) (50) (50) — — — Amortization of deferred losses 23 31 44 (4) 1 1 Other — 3 2 — — — Net periodic benefit costs $ 65 $ 52 $ 64 $ (1) $ 4 $ 5 The components of net periodic benefit costs other than the service cost component are included in Other, net in the Statements of Operations. Pension benefits Postretirement benefits For the years ended June 30, 2023 2022 2021 2023 2022 2021 Additional information Weighted-average assumptions used to determine benefit obligations Discount rate 5.3 % 4.8 % 2.7 % 5.3 % 4.8 % 2.7 % Weighted-average assumptions used to determine net periodic benefit costs Discount rate for service cost 4.8 % 2.8 % 2.9 % 4.8 % 2.9 % 3.0 % Discount rate for interest cost 4.5 % 2.1 % 2.2 % 4.5 % 2.2 % 2.2 % Expected return on plan assets 5.0 % 5.1 % 6.5 % N/A N/A N/A N/A – not applicable. The Company utilizes a full yield curve approach in the estimation of the service and interest components of net periodic benefit costs for pension and postretirement benefits by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to their underlying projected cash flows. The Company utilizes the latest mortality table released by the Society of Actuaries. The following assumed health care cost trend rates as of June 30 were also used in accounting for postretirement benefits: Postretirement benefits Fiscal 2023 Fiscal 2022 Health care cost trend rate 6.1 % 5.8 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.0 % 4.0 % Year that the rate reaches the ultimate trend rate 2047 2047 The following table sets forth the estimated benefit payments and estimated settlements for the next five fiscal years and in aggregate for the five fiscal years thereafter. These payments are estimated based on the same assumptions used to measure the Company’s benefit obligation at the end of the fiscal year and include benefits attributable to estimated future employee service: Expected benefit payments Pension benefits Postretirement benefits (in millions) Fiscal year 2024 $ 68 $ 4 2025 66 4 2026 64 4 2027 69 4 2028 74 4 2029-2033 409 18 The above table presents expected benefit payments for the postretirement benefits net of a nominal amount of U.S. Medicare subsidy receipts per year. Plan Assets and Grantor Trust The following tables present Plan assets for the Company’s funded pension plans and Grantor Trust assets to fund certain future unfunded pension benefit obligations of the Company. The assets are classified by level within the fair value hierarchy, as described in Note 6—Fair Value, as of June 30, 2023 and 2022: As of June 30, 2023 Fair value measurements at reporting date using Assets measured Total Level 1 at NAV (a) (in millions) PENSION PLAN ASSETS Pooled funds (b) Money market funds $ 18 $ 18 $ — Domestic equity funds 189 189 — Domestic fixed income funds (c) 383 383 — International equity funds 136 136 — Balanced funds 78 78 — Partnership interests 49 — 49 Total fair value of plan assets $ 853 $ 804 $ 49 GRANTOR TRUST ASSETS Pooled funds (b) Money market funds $ 20 $ 20 $ — Domestic fixed income funds (c) 143 143 — Balanced funds 112 112 — Other (e) 1 1 — Total fair value of Grantor Trust assets $ 276 $ 276 $ — As of June 30, 2022 Fair value measurements at reporting Assets measured Total Level 1 at NAV (a) (in millions) PENSION PLAN ASSETS Pooled funds (b) Money market funds $ 20 $ 20 $ — Domestic equity funds 82 82 — Domestic fixed income funds (c) 381 381 — International equity funds 133 133 — Balanced funds 78 78 — U.S. common stocks (d) 43 43 — Partnership interests 33 — 33 Exchange traded funds (d) 32 32 — Other (e) (1) (1) — Total fair value of plan assets $ 801 $ 768 $ 33 GRANTOR TRUST ASSETS Balanced funds (b) $ 234 $ 234 $ — Partnership interests 16 — 16 Other (e) 20 20 — Total fair value of Grantor Trust assets $ 270 $ 254 $ 16 (a) Investments that are measured at fair value using the net asset value (“NAV”) per share (or its equivalent) as a practical expedient are excluded from the fair value hierarchy disclosure. These investments have monthly liquidity. (b) Pooled funds that have a readily determinable fair value are valued at the regularly published NAV. (c) Domestic fixed income funds consist primarily of investment grade securities. (d) Exchange traded funds and common stock investments that are publicly traded are valued at the closing price reported on active markets in which the securities are traded. (e) Includes cash and cash equivalents and plan receivables and payables. The investment objective for the funded pension plans is to grow assets to decrease the deficit and protect improvements in funded status. The asset allocation strategy will change over time by shifting assets from return seeking assets to liability hedging assets upon the achievement of certain funding milestones. The target asset allocation on June 30, 2023 is 50% return seeking assets and 50% liability hedging assets which approximates the actual asset allocation as of June 30, 2023. Return seeking assets are diversified across multiple asset classes and liability hedging assets are managed to correlate highly with the pension liabilities to reduce interest rate risk. Assets are generally managed by external investment managers. The expected long-term rate of return on asset assumption is determined using the current target asset allocation and applying expected future returns for the various asset classes and correlations amongst the asset classes. The funded plans weighted-average asset allocation, by asset category, are as follows: Pension benefits As of June 30, 2023 2022 Asset Category Equity investments 39 % 37 % Fixed income investments, including cash 51 52 Other 10 11 Total 100 % 100 % Required pension plan contributions for the next fiscal year are not expected to be material; however, actual contributions may be affected by pension asset and liability valuation changes during the year. The Company will continue to make voluntary contributions as necessary to improve funded status. Defined Contribution Plans The Company has defined contribution plans for the benefit of substantially all employees meeting certain eligibility requirements. Employer contributions to such plans were $68 million, $58 million and $49 million for fiscal 2023, 2022 and 2021, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income before income tax expense was attributable primarily to the U.S. jurisdiction. Significant components of the Company’s provision for income taxes were as follows: For the years ended June 30, 2023 2022 2021 (in millions) U.S. Federal $ 127 $ 88 $ 181 State, local and other 35 31 2 Total current 162 119 183 Deferred 321 342 534 Provision for income taxes $ 483 $ 461 $ 717 The following table is a reconciliation of income tax computed at the statutory rate to income tax expense: For the years ended June 30, 2023 2022 2021 U.S. federal income tax rate 21 % 21 % 21 % State and local taxes 5 4 4 Valuation allowance movement 2 — — Return to accrual (a) — 2 — Nondeductible compensation — 1 1 Adjustments for tax matters, net — — (1) Other — (1) — Effective tax rate 28 % 27 % 25 % (a) Primarily attributable to a remeasurement of the Company’s net deferred tax assets associated with changes in the mix of jurisdictional earnings. The following is a summary of the components of the deferred tax accounts: As of June 30, 2023 2022 (in millions) Deferred tax assets Basis difference (a) $ 2,911 $ 3,371 Operating lease liabilities 241 123 Pension benefit obligations 14 34 Equity-based compensation 34 30 Net operating loss carryforwards 37 31 Other 188 104 Total deferred tax assets 3,425 3,693 Deferred tax liabilities Operating lease ROU assets (229) (116) Accrued liabilities (21) (2) Sports rights contracts (19) (108) Total deferred tax liabilities (269) (226) Net deferred tax asset before valuation allowance 3,156 3,467 Less: valuation allowance (72) (34) Total net deferred tax assets (b) $ 3,084 $ 3,433 (a) As a result of the Separation and the Transaction, which was a taxable transaction for which the estimated tax liability of $5.8 billion was included in the Transaction Tax paid by the Company, FOX obtained a tax basis in its assets equal to their respective fair market values. This amount includes the additional estimated deferred tax asset recorded as a result of the increased tax basis (See Note 1—Description of Business and Basis of Presentation under the heading “Basis of Presentation”). (b) Includes a $6 million and $7 million deferred tax liability recorded in Other liabilities on the Consolidated Balance Sheet as of June 30, 2023 and 2022, respectively. As of June 30, 2023, the Company had $37 million of tax attributes from net operating loss carryforwards available to offset future taxable income. A substantial portion of these losses can be carried forward indefinitely. The net increase in the valuation allowance to $72 million as of June 30, 2023 was primarily due to the additional valuation allowance required on net operating loss carryforwards and tax credits not expected to be utilized. The following table sets forth the change in the uncertain tax positions, excluding interest and penalties: For the years ended June 30, 2023 2022 2021 (in millions) Balance, beginning of year $ 28 $ 30 $ 73 Additions for prior year tax positions 2 1 — Additions for current year tax positions 2 2 2 Reduction for prior year tax positions (a) (6) (5) (45) Balance, end of year $ 26 $ 28 $ 30 (a) The reduction for tax positions in fiscal 2023 of $6 million is primarily due to audit settlements and the expiration of statutes of limitations. The reduction for tax positions in fiscal 2022 of $5 million is primarily from the expiration statutes of limitations. The reduction for tax positions in fiscal 2021 includes $31 million from the settlement of audits and $14 million from the expiration of statutes of limitations. The Company recognizes interest and penalty charges related to uncertain tax positions as income tax (expense) benefit. The Company recorded liabilities for accrued interest of $9 million and $11 million as of June 30, 2023 and 2022, respectively, and the amounts of interest income/expense recorded in each of fiscal 2023, 2022 and 2021 were not material. The Company is subject to tax primarily in various domestic jurisdictions and, as a matter of ordinary course, the Company is regularly audited by federal and state tax authorities. The Company believes it has appropriately accrued for the expected outcome of all pending tax matters and does not anticipate that the resolution of these pending tax matters will have a material adverse effect on its consolidated financial condition, future results of operations or liquidity. The net decrease to the balance of uncertain tax positions in fiscal 2023 is primarily attributable to state matters. The Company does not expect significant changes to these positions over the next 12 months. As of June 30, 2023 and 2022, $21 million and $22 million, respectively, would affect the Company’s effective income tax rate if the Company’s position with respect to the uncertainties is sustained. |
Segment Information
Segment Information | 12 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company is a news, sports and entertainment company, which manages and reports its businesses in the following segments: • Cable Network Programming , which produces and licenses news and sports content distributed through MVPDs and other digital platforms, primarily in the U.S. • Television , which produces, acquires, markets and distributes programming through the FOX broadcast network, advertising supported video-on-demand service Tubi, 29 full power broadcast television stations, including 11 duopolies, and other digital platforms, primarily in the U.S. Eighteen of the broadcast television stations are affiliated with the FOX Network, 10 are affiliated with MyNetworkTV and one is an independent station. The segment also includes various production companies that produce content for the Company and third parties. • Other, Corporate and Eliminations , which principally consists of the FOX Studio Lot, Credible, corporate overhead costs and intracompany eliminations. The FOX Studio Lot, located in Los Angeles, California, provides television and film production services along with office space, studio operation services and includes all operations of the facility. Credible is a U.S. consumer finance marketplace. The Company’s operating segments have been determined in accordance with the Company’s internal management structure, which is organized based on operating activities. The Company evaluates performance based upon several factors, of which the primary financial measure is segment operating income before depreciation and amortization, or Segment EBITDA. Due to the integrated nature of these operating segments, estimates and judgments are made in allocating certain assets, revenues and expenses. Segment EBITDA is defined as Revenues less Operating expenses and Selling, general and administrative expenses. Segment EBITDA does not include: Amortization of cable distribution investments, Depreciation and amortization, Impairment and restructuring charges, Interest expense, net, Other, net and Income tax expense. Management believes that Segment EBITDA is an appropriate measure for evaluating the operating performance of the Company’s business segments because it is the primary measure used by the Company’s chief operating decision maker to evaluate the performance of and allocate resources to the Company’s businesses. The following tables set forth the Company’s Revenues and Segment EBITDA for fiscal 2023, 2022 and 2021: For the years ended June 30, 2023 2022 2021 (in millions) Revenues Cable Network Programming $ 6,043 $ 6,097 $ 5,683 Television 8,710 7,685 7,048 Other, Corporate and Eliminations 160 192 178 Total revenues $ 14,913 $ 13,974 $ 12,909 Segment EBITDA Cable Network Programming $ 2,472 $ 2,934 $ 2,876 Television 1,009 347 555 Other, Corporate and Eliminations (290) (326) (344) Amortization of cable distribution investments (16) (18) (22) Depreciation and amortization (411) (363) (300) Impairment and restructuring charges (111) — (35) Interest expense, net (218) (371) (391) Other, net (699) (509) 579 Income before income tax expense 1,736 1,694 2,918 Income tax expense (483) (461) (717) Net income 1,253 1,233 2,201 Less: Net income attributable to noncontrolling interests (14) (28) (51) Net income attributable to Fox Corporation stockholders $ 1,239 $ 1,205 $ 2,150 Revenues by Segment by Component For the years ended June 30, 2023 2022 2021 (in millions) Cable Network Programming Affiliate fee $ 4,175 $ 4,205 $ 3,995 Advertising 1,403 1,462 1,337 Other 465 430 351 Total Cable Network Programming revenues 6,043 6,097 5,683 Television Advertising 5,204 4,440 4,094 Affiliate fee 2,876 2,673 2,440 Other 630 572 514 Total Television revenues 8,710 7,685 7,048 Other, Corporate and Eliminations 160 192 178 Total revenues $ 14,913 $ 13,974 $ 12,909 For fiscal 2023, 2022 and 2021, the Company had no individual customers that accounted for 10% or more of Revenues. For the years ended June 30, 2023 2022 2021 (in millions) Depreciation and amortization Cable Network Programming $ 71 $ 60 $ 55 Television 126 112 104 Other, Corporate and Eliminations 214 191 141 Total depreciation and amortization $ 411 $ 363 $ 300 For the years ended June 30, 2023 2022 2021 (in millions) Capital expenditures Cable Network Programming $ 66 $ 67 $ 53 Television 96 104 100 Other, Corporate and Eliminations 195 136 331 Total capital expenditures $ 357 $ 307 $ 484 As of June 30, 2023 2022 (in millions) Assets Cable Network Programming $ 2,658 $ 2,682 Television 7,803 7,915 Other, Corporate and Eliminations 10,371 11,010 Investments 1,034 578 Total assets $ 21,866 $ 22,185 As of June 30, 2023 2022 (in millions) Goodwill and intangible assets, net Cable Network Programming $ 1,312 $ 1,322 Television 4,633 4,671 Other, Corporate and Eliminations 698 718 Total goodwill and intangible assets, net $ 6,643 $ 6,711 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share: For the years ended June 30, 2023 2022 2021 (in millions, except per share amounts) Net income attributable to Fox Corporation stockholders $ 1,239 $ 1,205 $ 2,150 Weighted average shares - basic 529 566 591 Shares issuable under equity-based compensation plans (a) 2 4 4 Weighted average shares - diluted 531 570 595 Net income attributable to Fox Corporation stockholders per share - basic $ 2.34 $ 2.13 $ 3.64 Net income attributable to Fox Corporation stockholders per share - diluted $ 2.33 $ 2.11 $ 3.61 (a) Weighted average common shares include the incremental shares that would be issued upon the assumed vesting of RSUs, PSUs and stock options (including PSOs) if the effect is dilutive, and, for those shares that are contingently issuable, all necessary conditions have been satisfied for the periods presented (See Note 12—Equity-Based Compensation). |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | VALUATION AND QUALIFYING ACCOUNTS Balance as of beginning of year Additions Utilization Other Balance as of end of year (in millions) Fiscal 2023 Allowance for credit losses $ (54) $ — $ 3 $ 7 $ (44) Deferred tax valuation allowance (34) (38) — — (72) Fiscal 2022 Allowance for credit losses $ (77) $ (2) $ 19 $ 6 $ (54) Deferred tax valuation allowance (24) (23) 13 — (34) Fiscal 2021 Allowance for credit losses $ (93) $ (4) $ 11 $ 9 $ (77) Deferred tax valuation allowance (20) (9) 5 — (24) |
Additional Financial Informatio
Additional Financial Information | 12 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Financial Information | ADDITIONAL FINANCIAL INFORMATION Interest Expense, net The following table sets forth the components of Interest expense, net included in the Statements of Operations: For the years ended June 30, 2023 2022 2021 (in millions) Interest expense $ (349) $ (377) $ (395) Interest income 131 6 4 Total interest expense, net $ (218) $ (371) $ (391) Other, net The following table sets forth the components of Other, net included in the Statements of Operations: For the years ended June 30, 2023 2022 2021 (in millions) Legal settlement costs (a) $ (894) $ — $ — Net gains (losses) on investments in equity securities (b) 403 (386) 258 U.K. Newspaper Matters Indemnity (a) (117) (81) (64) Transaction costs (c) (55) (69) 421 Other (36) 27 (36) Total other, net $ (699) $ (509) $ 579 (a) See Note 14—Commitments and Contingencies under the headings “Defamation and Disparagement Claims” and "U.K. Newspaper Matters Indemnity." (b) Net gains (losses) on investments in equity securities includes the gains (losses) related to the changes in fair value of the Company’s investment in Flutter (See Note 6—Fair Value). (c) The transaction costs for fiscal 2021 are primarily related to the partial settlement from Disney of $462 million related to the reimbursement of the Company’s prepayment of its share of the Divestiture Tax (See Note 1—Description of Business and Basis of Presentation). Other Non-Current Assets The following table sets forth the components of Other non-current assets included in the Balance Sheets: As of June 30, 2023 2022 (in millions) Investments (a) $ 1,034 $ 578 Operating lease assets (b) 947 477 Inventories, net 642 521 Grantor Trust 276 270 Other 269 225 Total other non-current assets $ 3,168 $ 2,071 (a) Includes investments accounted for at fair value on a recurring basis of $884 million and $435 million as of June 30, 2023 and 2022, respectively (See Note 6—Fair Value). (b) See Note 10—Leases under the heading “ Lessee Arrangements .” Accounts Payable, Accrued Expenses and Other Current Liabilities The following table sets forth the components of Accounts payable, accrued expenses and other current liabilities included in the Balance Sheets: As of June 30, 2023 2022 (in millions) Accrued expenses $ 1,028 $ 992 Programming payable 785 686 Deferred revenue 160 209 Operating lease liabilities 72 107 Other current liabilities 469 302 Total accounts payable, accrued expenses and other current liabilities $ 2,514 $ 2,296 Other Liabilities The following table sets forth the components of Other liabilities included in the Balance Sheets: As of June 30, 2023 2022 (in millions) Non-current operating lease liabilities (a) $ 925 $ 405 Accrued non-current pension/postretirement liabilities 361 447 Other non-current liabilities 198 268 Total other liabilities $ 1,484 $ 1,120 (a) See Note 10—Leases under the heading “ Lessee Arrangements .” Future Performance Obligations As of June 30, 2023, approximately $4.1 billion of revenues are expected to be recognized primarily over the next one to three years. The Company’s most significant remaining performance obligations relate to affiliate contracts, sports advertising contracts and content licensing contracts with fixed fees. The amount disclosed does not include (i) revenues related to performance obligations that are part of a contract whose original expected duration is one year or less, (ii) revenues that are in the form of sales- or usage-based royalties and (iii) revenues related to performance obligations for which the Company elects to recognize revenue in the amount it has a right to invoice. Supplemental Information For the years ended June 30, 2023 2022 2021 (in millions) Supplemental cash flows information Cash paid for interest $ (345) $ (383) $ (390) Cash paid for income taxes $ (245) $ (209) $ (225) Supplemental information on acquisitions Fair value of assets acquired, excluding cash $ — $ 348 $ 49 Cash acquired — 9 — Liabilities assumed — (47) 2 Redeemable noncontrolling interests issued — (5) — Cash paid — (252) (51) Fair value of equity instruments issued as consideration to third parties (a) — 53 — Issuance of subsidiary common units — (53) — Fair value of equity instruments consideration $ — $ — $ — (a) Includes Redeemable noncontrolling interests. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Subsequent to June 30, 2023 , the Company increased its semi-annual dividend and declared a semi-annual dividend of $0.26 per share on both the Class A Common Stock and the Class B Common Stock. The dividend declared is payable on September 27, 2023 with a record date for determining dividend entitlements of August 30, 2023 . Subsequent to June 30, 2023 , the Company repurchased a total of approximately 1.5 million shares of Class A Common Stock for $50 million in the open market. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s financial statements as of and for the years ended June 30, 2023, 2022 and 2021 are presented on a consolidated basis. |
Principles of Consolidation | Principles of Consolidation The Financial Statements include the accounts of all majority-owned and controlled subsidiaries. In addition, the Company evaluates its relationships with other entities to identify whether they are variable interest entities and whether the Company is the primary beneficiary. Consolidation is required if both of these criteria are met. All significant intercompany accounts and transactions within the Company’s consolidated businesses have been eliminated in consolidation. Any change in the Company’s ownership interest in a consolidated subsidiary, where a controlling financial interest is retained, is accounted for as an equity transaction. When the Company ceases to have a controlling financial interest in a consolidated subsidiary, the Company recognizes a gain or loss in net income upon deconsolidation. The Company’s fiscal year ends on June 30 (“fiscal”) of each year. |
Reclassifications and Adjustments | Reclassifications and Adjustments Certain fiscal 2022 and 2021 amounts have been reclassified to conform to the fiscal 2023 presentation. |
Use of Estimates | Use of Estimates The preparation of the Company’s Financial Statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts that are reported in the Financial Statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future, actual results may differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. |
Receivables | Receivables Receivables are presented net of an allowance for credit losses, which is an estimate of amounts that may not be collectible. The allowance for credit losses is estimated based on historical experience, receivable aging, current expected collections, current economic trends and specific identification of certain receivables that are at risk of not being paid. Receivables, net consist of: As of June 30, 2023 2022 (in millions) Total receivables $ 2,221 $ 2,182 Allowance for credit losses (44) (54) Total receivables, net $ 2,177 $ 2,128 |
Inventories | Inventories Licensed and Owned Programming The Company incurs costs to license programming rights and to produce owned programming. Licensed programming includes costs incurred by the Company for access to content owned by third parties. The Company has single and multi-year contracts for sports and non-sports programming. Licensed programming is recorded at the earlier of payment or when the license period has begun, the cost of the program is known or reasonably determinable and the program is accepted and available for airing. Advances paid for the right to broadcast sports events within one year and programming with an initial license period of one year or less are classified as current inventories, and license fees for programming with an initial license period of greater than one year are classified as non-current inventories. Licensed programming is predominantly amortized as the associated programs are made available. The costs of multi-year sports contracts are primarily amortized based on the ratio of each contract’s current period attributable revenue to the estimated total remaining attributable revenue. Estimates can change and, accordingly, are reviewed periodically and amortization is adjusted as necessary. Such changes in the future could be material. Owned programming includes content internally developed and produced as well as co-produced content. Capitalized costs for owned programming are predominantly amortized using the individual-film-forecast-computation method, which is based on the ratio of current period revenue to estimated total future remaining revenue, and related costs to be incurred throughout the life of the respective program. Future remaining revenue includes imputed license fees for content used by FOX as well as revenue expected to be earned based on distribution strategy and historical performance of similar content. Changes to estimated future revenues may result in impairments or changes in amortization patterns. When production partners distribute owned programming on the Company’s behalf, the net participation in profits is recorded as content license revenue. The Company may receive government incentives in connection with the production of owned programming. The Company records government incentives as a reduction of capitalized costs for owned programming when the monetization of the incentive is probable. Government incentives were not material in fiscal 2023, 2022 and 2021. Inventories are evaluated for recoverability when an event or circumstance occurs that indicates that fair value may be less than unamortized costs. The Company will determine if there is an impairment by evaluating the fair value of the inventories, which are primarily supported by internal forecasts as compared to unamortized costs. Where an evaluation indicates unamortized costs, including advances on multi-year sports rights contracts, are not recoverable, amortization of rights is accelerated in an amount equal to the amount by which the unamortized costs exceed fair value. Owned programming is monetized and tested for impairment on an individual basis. Licensed programming is predominantly monetized as a group and tested for impairment on a channel, network, or daypart basis. The recoverability of certain sports rights is assessed on an aggregate basis. |
Investments | Investments Investments in and advances to entities or joint ventures in which the Company has significant influence, but less than a controlling financial interest, are accounted for using the equity method. Significant influence generally exists when the Company owns an interest between 20% and 50%. Equity securities in which the Company has no significant influence (generally less than a 20% ownership interest) with readily determinable fair values are accounted for at fair value based on quoted market prices. Equity securities without readily determinable fair values are accounted for either at fair value or using the measurement alternative which is at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. All gains and losses on investments in equity securities are recognized in the Statements of Operations. Equity method investments are reviewed for impairment by comparing their fair value to their respective carrying amounts. The Company determines the fair value of its private company investments by considering available information, including recent investee equity transactions, discounted cash flow analyses, estimates based on comparable public company operating multiples and, in certain situations, balance sheet liquidation values. If the fair value of the investment has dropped below the carrying amount, management considers several factors when determining whether an other-than-temporary decline in market value has occurred, including the length of time and extent to which the market value has been below cost, the financial condition and near-term prospects of the issuer of the security, the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value and other factors influencing the fair market value, such as general market conditions. The Company regularly reviews equity securities not accounted for using the equity method or at fair value for impairment based on a qualitative assessment which includes, but is not limited to (i) significant deterioration in the earnings performance, credit rating, asset quality or business prospects of the investee, (ii) significant adverse changes in the regulatory, economic or technological environment of the investee and (iii) significant adverse changes in the general market condition of either the geographical area or the industry in which the investee operates. If an equity security is impaired, an impairment loss is recognized in the Statements of Operations equal to the difference between the fair value of the investment and its carrying amount. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation is provided using the straight-line method over an estimated useful life of three three |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company’s intangible assets include goodwill, Federal Communications Commission (“FCC”) licenses, traditional and virtual multi-channel video programming distributor (“MVPD”) affiliate agreements and relationships, software and trademarks and other copyrighted products. Intangible assets other than goodwill acquired in business combinations are recorded at their estimated fair value at the date of acquisition. Goodwill is recorded as the difference between the consideration transferred to acquire entities and the estimated fair values assigned to their tangible and identifiable intangible net assets. Amounts recorded as goodwill are assigned to more than one reporting unit as of the acquisition date when more than one reporting unit is expected to benefit from the synergies of the combination. The Company’s goodwill and indefinite-lived intangible assets, which primarily consist of FCC licenses, are tested annually for impairment, or earlier if events occur or circumstances change that would more likely than not reduce the fair value below its carrying amount. The impairment assessment of indefinite-lived intangibles compares the fair value of the assets to their carrying value. Intangible assets with finite lives are generally amortized over their estimated useful lives. The weighted average original amortization period of amortizable intangible assets is approximately 10 years. Annual Impairment Review Goodwill Goodwill is tested for impairment at the reporting unit level, which is an operating segment, or one level below. If the Company determines it is more likely than not that the fair value of a reporting unit is less than its carrying amount after a qualitative assessment, the Company performs a quantitative impairment test to compare the fair value of each reporting unit to its carrying amount, including goodwill. In performing the quantitative assessment, the Company determines the fair value of a reporting unit primarily by using discounted cash flow analysis and market-based valuation approach methodologies. Determining fair value requires the exercise of significant judgments, including judgments about appropriate discount rates, long-term growth rates, company earnings multiples and relevant comparable transactions, as applicable, and the amount and timing of expected future cash flows. The cash flows employed in the analyses are based on the Company’s estimated outlook and various growth rates have been assumed for years beyond the long-term business plan period. Discount rate assumptions are based on an assessment of the risk inherent in the future cash flows of the respective reporting units. In assessing the reasonableness of its determined fair values, the Company evaluates its results against other value indicators, such as comparable public company trading values. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. FCC licenses The Company performs impairment reviews by comparing the estimated fair value of the Company’s FCC licenses with their carrying amount on a station-by-station basis using a discounted cash flow valuation method, assuming a hypothetical start-up scenario for a broadcast station in each of the markets the Company operates in. The significant assumptions used are the discount rate and terminal growth rates and operating margins, as well as industry data on future advertising revenues in the markets where the Company owns television stations. These assumptions are based on actual third-party historical performance and estimates of future performance in each market. During fiscal 2023, the Company determined that the goodwill and indefinite-lived intangible assets included in the Balance Sheet as of June 30, 2023, were not impaired based on the Company’s annual assessments. The Company determined that there are no reporting units at risk of impairment as of June 30, 2023, and will continue to monitor its goodwill and indefinite-lived intangible assets for any possible future non-cash impairment charges. |
Leases | Leases The Company has lease agreements primarily for office facilities and other equipment. At contract inception, the Company determines if a contract is or contains a lease and whether it is an operating or finance lease. The Company does not separate lease components from nonlease components for real estate leases. For operating leases that have a lease term of greater than one year, the Company initially recognizes operating lease liabilities and right-of-use (“ROU”) assets at the lease commencement date, which is the date that the lessor makes an underlying asset available for use by the Company. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the present value of the Company’s obligation to make lease payments, primarily escalating fixed payments, over the lease term. The discount rate used to determine the present value of the lease payments is generally the Company’s incremental borrowing rate because the rate implicit in the lease is generally not readily determinable. The incremental borrowing rate for the lease term is determined by adjusting the Company’s unsecured borrowing rate for a similar term to approximate a collateralized borrowing rate. The Company’s lease terms for each of its leases represents the noncancelable period for which the Company has the right to use an underlying asset, together with all of the following: (i) periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option; (ii) periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option; and (iii) periods covered by an option to extend (or not to terminate) the lease in which exercise of the option is controlled by the lessor. The Company recognizes lease expense for operating leases on a straight-line basis over the lease term. The Company’s operating ROU assets are included in Other non-current assets and the Company’s current and non-current operating lease liabilities are included in Accounts payable, accrued expenses and other current liabilities and Other liabilities, respectively, in the Company’s Balance Sheets (See Note 20—Additional Financial Information). |
Long-Lived Asset Impairments | Long-Lived Asset Impairments The Company periodically reviews the carrying amounts of its long-lived assets, including property, plant and equipment, ROU assets and finite-lived intangible assets, to determine whether current events or circumstances indicate that such carrying amounts may not be recoverable. If the carrying amount of the asset or asset group is greater than the expected undiscounted cash flows to be generated by such asset or asset group, an impairment adjustment is recognized and is measured as the amount by which the carrying value of such asset or asset group exceeds its fair value. The Company generally measures fair value by considering sale prices for similar assets or by discounting estimated future cash flows using an appropriate discount rate. Considerable management judgment is necessary to estimate the fair value of assets; accordingly, actual |
Revenue Recognition | Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company considers the terms of each arrangement to determine the appropriate accounting treatment. The Company generates advertising revenue from sales of commercial time within the Company’s network programming, and from sales of advertising on the Company’s owned and operated television stations and various digital properties. Advertising revenue from customers, primarily advertising agencies, is recognized as the commercials are aired. Certain of the Company’s advertising contracts have guarantees of a certain number of targeted audience views, referred to as impressions. Revenues for any audience deficiencies are deferred until the guaranteed number of impressions is met, by providing additional advertisements. Advertising contracts, which are generally short-term, are billed monthly for the spots aired during the month, with payments due shortly thereafter. The Company generates affiliate fee revenue from agreements with MVPDs for cable network programming and for the broadcast of the Company’s owned and operated television stations. In addition, the Company generates affiliate fee revenue from agreements with independently owned television stations that are affiliated with the FOX Network and receives retransmission consent fees from MVPDs for their signals. Affiliate fee revenue is recognized as we continuously make the programming available to the customer over the term of the agreement. For contracts with affiliate fees based on the number of the affiliate’s subscribers, revenues are recognized based on the contractual rate multiplied by the estimated number of subscribers each period. For contracts with fixed affiliate fees, revenues are recognized based on the relative standalone selling price of the network programming provided over the contract term, which generally reflects the invoiced amount. Affiliate contracts are generally multi-year contracts billed monthly with payments due shortly thereafter. The Company classifies the amortization of cable distribution investments (capitalized fees paid to MVPDs to facilitate carriage of a cable network) against affiliate fee revenue. The Company amortizes the cable distribution investments on a straight-line basis over the contract period. Other revenue primarily includes revenue generated from the Company’s content licensing agreements and revenue from production services and rentals. Revenue from content licensing agreements is recognized when the content is made available under the content licensing agreements. Production services and rental revenues are recognized as the goods or services are delivered. |
Advertising Expenses | Advertising Expenses The Company expenses advertising costs as incurred. The Company incurred advertising expenses of $680 million, $708 million and $558 million for fiscal 2023, 2022 and 2021, respectively. |
Income Taxes | Income taxes The Company uses an asset and liability approach for financial accounting and reporting for income taxes. Under this approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Valuation allowances are established where management determines that it is more likely than not that some portion or all of a deferred tax asset will not be realized. |
Earnings Per Share | Earnings Per Share Basic earnings per share for the Class A Common Stock and Class B Common Stock is calculated by dividing Net income attributable to Fox Corporation stockholders by the weighted average number of outstanding shares of Class A Common Stock, including vested restricted stock units (“RSUs”), and Class B Common Stock. Diluted earnings per share for the Class A Common Stock and Class B Common Stock is |
Equity-Based Compensation | Equity-Based Compensation The Company applies a fair value-based measurement method in accounting for generally all share-based payment transactions with employees. The Company recognizes compensation cost for awards granted that have only service requirements and a graded vesting schedule on a straight-line basis over the requisite service period for the entire award. The Company accounts for forfeitures when they occur. |
Financial Instruments | Financial Instruments The carrying value of the Company’s financial instruments, such as cash and cash equivalents, receivables, payables and investments accounted for using the measurement alternative, approximates fair value. The fair value of financial instruments is generally determined by reference to market values resulting from trading on a national securities exchange or in an over-the-counter market. |
Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interests Redeemable noncontrolling interests are presented outside of permanent equity on the Company’s Balance Sheets as their redemption is outside the control of the Company. The redeemable noncontrolling interests recorded are put rights held in Credible Labs Inc. (“Credible”) and an entertainment production company. The Company accretes the changes in the redemption value of the redeemable noncontrolling interests over the period from issuance to the earliest redemption date. If a redeemable noncontrolling interest is redeemable at fair value, adjustments to the carrying amount are recorded in retained earnings. If a redeemable noncontrolling interest is redeemable at an amount in excess of fair value, the portion of the adjustment that reflects a redemption in excess of fair value is presented within net income attributable to noncontrolling interests in the Statements of Operations. |
Concentrations of Credit Risk | Concentrations of Credit Risk Cash and cash equivalents are maintained with several financial institutions. The Company has deposits held with banks that exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions of reputable credit and, therefore, bear minimal credit risk. Generally, the Company does not require collateral to secure receivables. As of June 30, 2023, the Company had one customer that accounted for approximately 11% of the Company’s receivables. As of June 30, 2022, the Company had no individual customers that accounted for 10% or more of the Company’s receivables. |
Recently Adopted, Recently Issued Accounting Guidance and Other | Recently Adopted, Recently Issued Accounting Guidance and Other Inflation Reduction Act In August 2022, the U.S. government enacted the Inflation Reduction Act which, among other changes, imposes a 15% corporate alternative minimum tax (“CAMT”) and a 1% excise tax on stock repurchases. Once subject to the CAMT, a taxpayer will compute both its CAMT liability and its regular federal tax liability and pay the higher of the two. To the extent that the CAMT liability exceeds the regular federal tax liability, a taxpayer will receive a credit (“CAMT credit”) which can be used against its regular federal tax liability in the future when the taxpayer is no longer subject to the CAMT. The CAMT credit does not expire. The CAMT is effective for tax years beginning after December 31, 2022, which means it will be applicable to the Company starting in fiscal 2024. The excise tax on stock repurchases applies to stock repurchases occurring after December 31, 2022. The Company continues to evaluate the impact the CAMT will have on its financial statements but expects that, when applicable, the Company will be subject to the CAMT. The CAMT will impact the timing of the cash tax benefit the Company receives from the amortization of the additional tax basis received as a result of the Transaction Tax. This change in timing will result in an increase to the Company’s annual cash tax liability which could be material. However, as noted above, if the Company pays CAMT it will receive a CAMT credit that can be carried forward indefinitely and applied against its regular federal tax liability in future years. The |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Receivables, Net | Receivables, net consist of: As of June 30, 2023 2022 (in millions) Total receivables $ 2,221 $ 2,182 Allowance for credit losses (44) (54) Total receivables, net $ 2,177 $ 2,128 |
Restructuring Programs (Tables)
Restructuring Programs (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Changes in Restructuring Program Liabilities | Changes in the restructuring program liabilities were as follows: One time termination benefits Contract termination costs Total (in millions) Balance, June 30, 2020 $ (38) $ (30) $ (68) Additions (39) 4 (35) Payments 61 4 65 Balance, June 30, 2021 $ (16) $ (22) $ (38) Payments 8 3 11 Balance, June 30, 2022 $ (8) $ (19) $ (27) Additions (111) — (111) Payments 52 2 54 Balance, June 30, 2023 $ (67) $ (17) $ (84) |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | The Company’s inventories were comprised of the following: As of June 30, 2023 2022 (in millions) Licensed programming, including prepaid sports rights $ 720 $ 975 Owned programming 465 337 Total inventories, net 1,185 1,312 Less: current portion of inventories, net (543) (791) Total non-current inventories, net $ 642 $ 521 Owned programming Released $ 256 $ 205 In-process or other 209 132 Total $ 465 $ 337 |
Schedule of Inventories Aggregate Amortization Expense | The following table presents the aggregate amortization expense related to Inventories, net included in Operating expenses in the Statement of Operations: For the years ended June 30, 2023 2022 2021 (in millions) Total amortization expense $ 6,036 $ 5,379 $ 4,721 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Based on the balance of inventories, net as of June 30, 2023, the estimated amortization expense for each of the succeeding three fiscal years is as follows: For the years ending June 30, 2024 2025 2026 (in millions) Estimated amortization expense $ 694 $ 123 $ 55 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets (Liabilities) and the Level Used to Measure Them | The following tables present information about financial assets and redeemable noncontrolling interests carried at fair value on a recurring basis: Fair value measurements As of June 30, 2023 Total Level 1 Level 2 Level 3 (in millions) Investments in equity securities $ 884 $ 884 (a) $ — $ — Redeemable noncontrolling interests (213) — — (213) (b) Total $ 671 $ 884 $ — $ (213) Fair value measurements As of June 30, 2022 Total Level 1 Level 2 Level 3 (in millions) Investments in equity securities $ 435 $ 435 (a) $ — $ — Redeemable noncontrolling interests (188) — — (188) (b) Total $ 247 $ 435 $ — $ (188) (a) The investment categorized as Level 1 primarily represents an investment in equity securities of Flutter Entertainment plc (“Flutter”) with a readily determinable fair value. (b) The Company utilizes both the market and income approach valuation techniques for its Level 3 fair value measures. Inputs to such measures could include observable market data obtained from independent sources such as broker quotes and recent market transactions for similar assets. It is the Company’s policy to maximize the use of observable inputs in the measurement of its Level 3 fair value measurements. To the extent observable inputs are not available, the Company utilizes unobservable inputs based upon the assumptions market participants would use in valuing the redeemable noncontrolling interests. Examples of utilized unobservable inputs are future cash flows and long-term growth rates. |
Changes in Fair Value of Financial Liabilities on a Recurring Basis Using Level 3 | The changes in redeemable noncontrolling interests classified as Level 3 measurements were as follows: For the years ended June 30, 2023 2022 2021 (in millions) Beginning of year $ (188) $ (261) $ (305) Acquisitions (a) — (58) — Net loss (income) 16 12 (25) Redemption of noncontrolling interests (b) — — 135 Distributions — 3 15 Accretion and other (c) (41) 116 (81) End of year $ (213) $ (188) $ (261) (a) The amount issued in fiscal 2022 was primarily due to the acquisition of an entertainment production company. (b) As a result of the exercise of a portion of the put rights held by the sports network minority shareholder during fiscal 2021, approximately $135 million was reclassified out of Redeemable noncontrolling interests into equity. At closing, the Company paid half of the purchase price in cash and delivered a three (c) As a result of the expiration of the sports network minority shareholder’s final put right during fiscal 2022, approximately $110 million was reclassified into equity. |
Schedule of Fair Value and Carrying Value of Borrowings | As of June 30, 2023 2022 (in millions) Borrowings Fair value $ 6,895 $ 7,084 Carrying value $ 7,210 $ 7,206 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | As of June 30, 2023 2022 (in millions) Land $ 205 $ 199 Buildings and leaseholds 1,320 1,284 Machinery and equipment 1,904 1,743 3,429 3,226 Less: accumulated depreciation and amortization (1,966) (1,729) 1,463 1,497 Construction in progress 245 185 Total property, plant and equipment, net $ 1,708 $ 1,682 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Values of Intangible Assets and Related Accumulated Amortization | The changes in the carrying values of the Company’s intangible assets and related accumulated amortization were as follows: Intangible assets not subject to amortization Amortizable intangible assets, net (a) Total intangible assets, net FCC licenses Other Total (in millions) Balance, June 30, 2021 $ 2,250 $ 642 $ 2,892 $ 262 $ 3,154 Acquisitions (b) — — — 71 71 Amortization and other — — — (68) (68) Balance, June 30, 2022 $ 2,250 $ 642 $ 2,892 $ 265 $ 3,157 Amortization and other — — — (73) (73) Balance, June 30, 2023 $ 2,250 $ 642 $ 2,892 $ 192 $ 3,084 (a) Net of accumulated amortization of $366 million and $292 million as of June 30, 2023 and 2022, respectively. (b) See Note 3—Acquisitions, Disposals and Other Transactions under the heading “Acquisitions and Disposals.” |
Schedule of Finite-Lived Intangible Assets, Estimated Amortization Expense | Based on the balance of finite-lived intangible assets as of June 30, 2023, the estimated amortization expense for each of the succeeding five fiscal years is as follows: For the years ending June 30, 2024 2025 2026 2027 2028 (in millions) Estimated amortization expense (a) $ 46 $ 33 $ 32 $ 29 $ 23 (a) These amounts may vary as acquisitions and dispositions occur in the future. |
Schedule of Carrying Value of Goodwill, by Segment | The changes in the carrying value of goodwill, by segment, are as follows: Cable Network Programming Television Other, Corporate and Eliminations Total Goodwill (in millions) Balance, June 30, 2021 $ 1,059 $ 2,155 $ 221 $ 3,435 Acquisitions and other (a) — 86 33 119 Balance, June 30, 2022 $ 1,059 $ 2,241 $ 254 $ 3,554 Acquisitions and other — 5 — 5 Balance, June 30, 2023 $ 1,059 $ 2,246 $ 254 $ 3,559 (a) See Note 3—Acquisitions, Disposals and Other Transactions under the heading “Acquisitions and Disposals.” |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Notes | The following table summarizes the Company’s senior notes, net of repayments: Outstanding as of June 30, 2023 2022 (in millions) Public debt 4.030% senior notes due 2024 $ 1,250 $ 1,250 3.050% senior notes due 2025 600 600 4.709% senior notes due 2029 2,000 2,000 3.500% senior notes due 2030 600 600 5.476% senior notes due 2039 1,250 1,250 5.576% senior notes due 2049 1,550 1,550 Total public debt 7,250 7,250 Less: unamortized discount and debt issuance costs (40) (44) Total borrowings $ 7,210 $ 7,206 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Lessee Operating Lease Components of Balance Sheet and Other Supplemental Information | The following amounts were recorded in the Company’s Balance Sheet relating to its operating leases and other supplemental information: As of June 30, 2023 2022 (in millions) ROU assets $ 947 $ 477 Lease liabilities Current lease liabilities $ 72 $ 107 Non-current lease liabilities 925 405 Total lease liabilities $ 997 $ 512 Other supplemental information Weighted average remaining lease term 17 years 9 years Weighted average discount rate 5 % 3 % |
Summary of Lease Costs and Supplemental Cash Flows Information | The following table presents information about the Company’s lease costs and supplemental cash flows information for leases: For the years ended June 30, 2023 2022 2021 (in millions) Lease costs Total lease costs (a) $ 145 $ 128 $ 126 Supplemental cash flows information Operating cash flows from operating leases $ 119 $ 116 $ 134 ROU assets obtained in exchange for operating lease liabilities $ 568 $ 137 $ 49 (a) Total lease costs of $145 million, $128 million and $126 million for fiscal 2023, 2022 and 2021 are net of sublease income of approximately $15 million, $15 million and $30 million, respectively. Approximately $15 million of the sublease income for fiscal 2021 relates to office facilities that were subleased through November 2020 to News Corporation, a related party (see Note 13—Related Party Transactions). |
Schedule of lease payments relating to the Company’s operating leases | The following table presents the lease payments relating to the Company’s operating leases: As of June 30, 2023 (in millions) Fiscal Year 2024 $ 123 2025 113 2026 63 2027 61 2028 93 Thereafter 1,101 Total lease payments 1,554 Less: imputed interest (557) Present value of operating lease liabilities $ 997 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Summary of Repurchases of Common Stock | The foll owing table summarizes the Company’s repurchases of its Class A Common Stock and Class B Common Stock: For the years ended June 30, 2023 2022 2021 (in millions) Total cost of repurchases (a) $ 2,000 $ 1,000 $ 1,001 Total number of shares repurchased 54 27 31 (a) These amounts exclude any fees, commissions or other costs associated with the share repurchases. |
Schedule of Dividends Declared and Paid | The following table summarizes the dividends declared and paid per share on both the Company’s Class A Common Stock and Class B Common Stock: For the years ended June 30, 2023 2022 2021 Cash dividend per share $ 0.50 $ 0.48 $ 0.46 |
Schedule of Activity within Other Comprehensive (Loss) Income | The following tables summarize the activity within Other comprehensive income: For the year ended June 30, 2023 Before tax Tax benefit (provision) Net of tax (in millions) Benefit plan, cumulative translation adjustments and other Unrealized gains $ 79 $ (19) $ 60 Reclassifications realized in net income (a) 19 (5) 14 Cumulative translation adjustment 3 — 3 Other comprehensive income $ 101 $ (24) $ 77 For the year ended June 30, 2022 Before tax Tax benefit (provision) Net of tax (in millions) Benefit plan and cumulative translation adjustments Unrealized gains $ 100 $ (25) $ 75 Reclassifications realized in net income (a) 32 (8) 24 Cumulative translation adjustment (7) — (7) Other comprehensive income $ 125 $ (33) $ 92 For the year ended June 30, 2021 Before tax Tax benefit (provision) Net of tax (in millions) Benefit plan adjustments Unrealized gains $ 87 $ (21) $ 66 Reclassifications realized in net income (a) 45 (12) 33 Other comprehensive income $ 132 $ (33) $ 99 (a) Reclassifications of amounts related to benefit plan adjustments are included in Other, net in the Statements of Operations (See Note 15—Pension and Other Postretirement Benefits for additional information). |
Summary of Components of Accumulated Other Comprehensive (Loss) Income, Net of Tax | The following table summarizes the components of Accumulated other comprehensive loss, net of tax: As of June 30, 2023 2022 2021 (in millions) Benefit plan adjustments and other $ (145) $ (219) $ (318) Cumulative translation adjustment (4) (7) — Accumulated other comprehensive loss, net of tax $ (149) $ (226) $ (318) |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Restricted Stock Units and Target Performance Stock Units Granted to be Settled in Stock | The following table summarizes the activity related to RSUs and target PSUs granted to the Company’s employees to be settled in stock (RSUs and PSUs in thousands): Fiscal 2023 Fiscal 2022 Fiscal 2021 Number of shares Weighted average grant- date fair value Number of shares Weighted average grant- date fair value Number of shares Weighted average grant- date fair value RSUs and PSUs Unvested units at beginning of the year 5,052 $ 32.53 5,695 $ 31.75 8,043 $ 29.98 Granted 2,314 34.31 1,909 35.77 2,495 28.07 Vested (2,092) 31.75 (2,417) 33.32 (4,654) 26.71 Cancelled (990) 33.30 (135) 31.44 (189) 32.01 Unvested units at the end of the year (a) 4,284 $ 33.72 5,052 $ 32.53 5,695 $ 31.75 (a) The intrinsic value of unvested RSUs and target PSUs as of June 30, 2023 was approximately $145 million. |
Summary of Stock Options and PSOs Granted under SAP | The following table summarizes information about the Company’s stock options and PSOs granted under the SAP during fiscal 2023, 2022 and 2021 (options in thousands): Fiscal 2023 Fiscal 2022 Fiscal 2021 Number of options Weighted average exercise price Number of options Weighted average exercise price Number of options Weighted average exercise price Outstanding at the beginning of the year 14,250 $ 32.90 11,150 $ 32.09 6,809 $ 35.11 Granted 4,314 33.40 3,990 34.83 5,003 27.52 Exercised (a) (234) 28.76 (542) 31.94 (386) 27.21 Cancelled (1,282) 32.77 (348) 30.38 (276) 30.44 Outstanding at the end of the year (b) 17,048 $ 33.12 14,250 $ 32.90 11,150 $ 32.09 Exercisable at the end of the year (c) 5,282 $ 36.35 4,586 $ 37.13 3,981 $ 38.12 Weighted average grant-date fair value of options granted $ 10.32 $ 7.48 $ 7.37 Weighted average remaining contractual term of options outstanding at the end of the year 6.51 years 6.75 years 6.82 years Weighted average remaining contractual term of options exercisable at the end of the year 2.96 years 3.89 years 4.81 years (a) During fiscal 2023, 2022 and 2021, the Company received approximately $7 million, $17 million and $12 million, respectively, in cash payments from the exercise of stock options. (b) The intrinsic value of options outstanding as of June 30, 2023, 2022 and 2021 was $37.1 million, $26.9 million and $65.6 million, respectively. (c) The intrinsic value of options exercisable as of June 30, 2023, 2022 and 2021 was $6.8 million, $3.1 million and $5.5 million, respectively. |
Weighted Average Assumptions Used for Estimated Fair Value of Stock Option Grant | The fair value of each PSO and stock option grant is estimated on the date of grant with the following weighted average assumptions used for grants during fiscal 2023, 2022 and 2021 : For the years ended June 30, 2023 2022 2021 Expected volatility 35.00 % 35.00 % 35.00 % Risk-free interest rate 2.83 % 1.20 % 0.66 % Expected dividend yield 1.40 % 1.31 % 1.67 % Expected term 5.30 years 5.29 years 5.29 years |
Summary of Equity-Based Compensation | The following table summarizes the Company’s equity-based compensation: For the years ended June 30, 2023 2022 2021 (in millions) Equity-based compensation $ 74 $ 102 $ 147 Intrinsic value of all settled equity-based awards $ 77 $ 97 $ 139 Tax benefit on settled equity-based awards $ 14 $ 21 $ 23 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Material Firm Commitments | The following table summarizes the Company’s material firm commitments as of June 30, 2023: As of June 30, 2023 Payments due by period Total 1 year 2 - 3 years 4 - 5 years After 5 years (in millions) Borrowings $ 7,250 $ 1,250 $ 600 $ — $ 5,400 Licensed programming 31,115 5,102 8,180 8,044 9,789 Other commitments and contractual obligations 1,032 318 336 138 240 Total commitments $ 39,397 $ 6,670 $ 9,116 $ 8,182 $ 15,429 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Projected Benefit Obligation, Changes in Fair Value of Plan Assets and Funded Status | The Company uses a June 30 measurement date for all pension and postretirement benefit plans. The following table sets forth the change in the projected benefit obligation, change in the fair value of plan assets and funded status for the Company’s pension and postretirement benefit plans: Pension benefits Postretirement benefits As of June 30, 2023 2022 2023 2022 (in millions) Projected benefit obligation, beginning of the year $ 1,203 $ 1,468 $ 53 $ 98 Service cost 30 38 1 1 Interest cost 52 30 2 2 Benefits paid (22) (22) (4) (4) Settlements (a) (32) (56) — — Actuarial gains (b) (58) (256) (5) (46) Other (1) 1 — 2 Projected benefit obligation, end of the year 1,172 1,203 47 53 Change in the fair value of plan assets for the Company’s benefit plans: Fair value of plan assets, beginning of the year 801 972 — — Actual return on plan assets 53 (152) — — Employer contributions 53 59 4 4 Benefits paid (22) (22) (4) (4) Settlements (a) (32) (56) — — Fair value of plan assets, end of the year 853 801 — — Funded status (c) $ (319) $ (402) $ (47) $ (53) Grantor Trust assets (c) $ 276 $ 270 $ — $ — (a) Represents the full settlement of former employees’ deferred pension benefit obligations through lump sum payments. (b) Actuarial gains for June 30, 2023 and June 30, 2022 were primarily due to a change in the discount rate assumption utilized in measuring plan obligations. (c) The Company has established an irrevocable grantor trust (the “Grantor Trust”), administered by an independent trustee, with the intention of making cash contributions to the Trust to fund certain future pension benefit obligations of the Company. The assets in the Grantor Trust are unsecured funds of the Company and can be used to satisfy the Company’s obligations in the event of bankruptcy or insolvency. |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in the Balance Sheets consist of: Pension benefits Postretirement benefits As of June 30, 2023 2022 2023 2022 (in millions) Pension assets $ 8 $ 6 $ — $ — Accrued pension liabilities (327) (408) (47) (53) Net amounts recognized $ (319) $ (402) $ (47) $ (53) |
Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss | Amounts recognized in Accumulated other comprehensive loss, before tax, consist of: Pension benefits Postretirement benefits As of June 30, 2023 2022 2023 2022 (in millions) Actuarial losses (gains) $ 228 $ 322 $ (34) $ (33) Prior service cost 1 3 — — Net amounts recognized $ 229 $ 325 $ (34) $ (33) |
Schedule of Accumulated and Projected Benefit Obligations and Fair Value of Plan Assets for Funded and Unfunded Pension Plans | Information about funded and unfunded pension plans is presented below: Funded plans Unfunded plans As of June 30, 2023 2022 2023 2022 (in millions) Projected benefit obligation $ 901 $ 930 $ 271 $ 273 Accumulated benefit obligation 777 801 267 268 Fair value of plan assets 853 801 — (a) — (a) (a) The fair value of the assets in the Grantor Trust as of June 30, 2023 and 2022 was $276 million and $270 million, respectively. |
Schedule of Accumulated Benefit Obligation in Excess of Plan Assets | Information about funded and unfunded pension plans in which the accumulated benefit obligation exceeds fair value of the plan assets is presented below: Funded plans Unfunded plans As of June 30, 2023 2022 2023 2022 (in millions) Projected benefit obligation $ — $ 807 $ 271 $ 273 Accumulated benefit obligation — (a) 683 267 268 Fair value of plan assets — (a) 675 — (b) — (b) (a) As of June 30, 2023, the fair value of plan assets exceeded the accumulated benefit obligation for the funded plans. (b) The fair value of the assets in the Grantor Trust as of June 30, 2023 and 2022 was $276 million and $270 million, respectively. |
Schedule of Components of Periodic Benefit Costs | The components of net periodic benefit costs were as follows: Pension benefits Postretirement benefits For the years ended June 30, 2023 2022 2021 2023 2022 2021 (in millions) Service cost $ 30 $ 38 $ 38 $ 1 $ 1 $ 2 Interest cost 52 30 30 2 2 2 Expected return on plan assets (40) (50) (50) — — — Amortization of deferred losses 23 31 44 (4) 1 1 Other — 3 2 — — — Net periodic benefit costs $ 65 $ 52 $ 64 $ (1) $ 4 $ 5 |
Schedule of Assumptions Used | The components of net periodic benefit costs other than the service cost component are included in Other, net in the Statements of Operations. Pension benefits Postretirement benefits For the years ended June 30, 2023 2022 2021 2023 2022 2021 Additional information Weighted-average assumptions used to determine benefit obligations Discount rate 5.3 % 4.8 % 2.7 % 5.3 % 4.8 % 2.7 % Weighted-average assumptions used to determine net periodic benefit costs Discount rate for service cost 4.8 % 2.8 % 2.9 % 4.8 % 2.9 % 3.0 % Discount rate for interest cost 4.5 % 2.1 % 2.2 % 4.5 % 2.2 % 2.2 % Expected return on plan assets 5.0 % 5.1 % 6.5 % N/A N/A N/A N/A – not applicable. |
Schedule of Assumed Health Care Cost Trend Rates | The following assumed health care cost trend rates as of June 30 were also used in accounting for postretirement benefits: Postretirement benefits Fiscal 2023 Fiscal 2022 Health care cost trend rate 6.1 % 5.8 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.0 % 4.0 % Year that the rate reaches the ultimate trend rate 2047 2047 |
Schedule of Expected Estimated Benefit Payments | The following table sets forth the estimated benefit payments and estimated settlements for the next five fiscal years and in aggregate for the five fiscal years thereafter. These payments are estimated based on the same assumptions used to measure the Company’s benefit obligation at the end of the fiscal year and include benefits attributable to estimated future employee service: Expected benefit payments Pension benefits Postretirement benefits (in millions) Fiscal year 2024 $ 68 $ 4 2025 66 4 2026 64 4 2027 69 4 2028 74 4 2029-2033 409 18 |
Schedule of Plan Assets and Grantor Trust Assets by Level within Fair Value Hierarchy | The assets are classified by level within the fair value hierarchy, as described in Note 6—Fair Value, as of June 30, 2023 and 2022: As of June 30, 2023 Fair value measurements at reporting date using Assets measured Total Level 1 at NAV (a) (in millions) PENSION PLAN ASSETS Pooled funds (b) Money market funds $ 18 $ 18 $ — Domestic equity funds 189 189 — Domestic fixed income funds (c) 383 383 — International equity funds 136 136 — Balanced funds 78 78 — Partnership interests 49 — 49 Total fair value of plan assets $ 853 $ 804 $ 49 GRANTOR TRUST ASSETS Pooled funds (b) Money market funds $ 20 $ 20 $ — Domestic fixed income funds (c) 143 143 — Balanced funds 112 112 — Other (e) 1 1 — Total fair value of Grantor Trust assets $ 276 $ 276 $ — As of June 30, 2022 Fair value measurements at reporting Assets measured Total Level 1 at NAV (a) (in millions) PENSION PLAN ASSETS Pooled funds (b) Money market funds $ 20 $ 20 $ — Domestic equity funds 82 82 — Domestic fixed income funds (c) 381 381 — International equity funds 133 133 — Balanced funds 78 78 — U.S. common stocks (d) 43 43 — Partnership interests 33 — 33 Exchange traded funds (d) 32 32 — Other (e) (1) (1) — Total fair value of plan assets $ 801 $ 768 $ 33 GRANTOR TRUST ASSETS Balanced funds (b) $ 234 $ 234 $ — Partnership interests 16 — 16 Other (e) 20 20 — Total fair value of Grantor Trust assets $ 270 $ 254 $ 16 (a) Investments that are measured at fair value using the net asset value (“NAV”) per share (or its equivalent) as a practical expedient are excluded from the fair value hierarchy disclosure. These investments have monthly liquidity. (b) Pooled funds that have a readily determinable fair value are valued at the regularly published NAV. (c) Domestic fixed income funds consist primarily of investment grade securities. (d) Exchange traded funds and common stock investments that are publicly traded are valued at the closing price reported on active markets in which the securities are traded. (e) Includes cash and cash equivalents and plan receivables and payables. |
Schedule of Weighted Average Asset Allocations by Asset Category | The funded plans weighted-average asset allocation, by asset category, are as follows: Pension benefits As of June 30, 2023 2022 Asset Category Equity investments 39 % 37 % Fixed income investments, including cash 51 52 Other 10 11 Total 100 % 100 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Provision for Income Taxes | Income before income tax expense was attributable primarily to the U.S. jurisdiction. Significant components of the Company’s provision for income taxes were as follows: For the years ended June 30, 2023 2022 2021 (in millions) U.S. Federal $ 127 $ 88 $ 181 State, local and other 35 31 2 Total current 162 119 183 Deferred 321 342 534 Provision for income taxes $ 483 $ 461 $ 717 |
Effective Income Tax Rate Reconciliation | The following table is a reconciliation of income tax computed at the statutory rate to income tax expense: For the years ended June 30, 2023 2022 2021 U.S. federal income tax rate 21 % 21 % 21 % State and local taxes 5 4 4 Valuation allowance movement 2 — — Return to accrual (a) — 2 — Nondeductible compensation — 1 1 Adjustments for tax matters, net — — (1) Other — (1) — Effective tax rate 28 % 27 % 25 % (a) Primarily attributable to a remeasurement of the Company’s net deferred tax assets associated with changes in the mix of jurisdictional earnings. |
Schedule of Components of Deferred Tax Assets and Liabilities | The following is a summary of the components of the deferred tax accounts: As of June 30, 2023 2022 (in millions) Deferred tax assets Basis difference (a) $ 2,911 $ 3,371 Operating lease liabilities 241 123 Pension benefit obligations 14 34 Equity-based compensation 34 30 Net operating loss carryforwards 37 31 Other 188 104 Total deferred tax assets 3,425 3,693 Deferred tax liabilities Operating lease ROU assets (229) (116) Accrued liabilities (21) (2) Sports rights contracts (19) (108) Total deferred tax liabilities (269) (226) Net deferred tax asset before valuation allowance 3,156 3,467 Less: valuation allowance (72) (34) Total net deferred tax assets (b) $ 3,084 $ 3,433 (a) As a result of the Separation and the Transaction, which was a taxable transaction for which the estimated tax liability of $5.8 billion was included in the Transaction Tax paid by the Company, FOX obtained a tax basis in its assets equal to their respective fair market values. This amount includes the additional estimated deferred tax asset recorded as a result of the increased tax basis (See Note 1—Description of Business and Basis of Presentation under the heading “Basis of Presentation”). (b) Includes a $6 million and $7 million deferred tax liability recorded in Other liabilities on the Consolidated Balance Sheet as of June 30, 2023 and 2022, respectively. |
Change in the Accrual for Uncertain Tax Positions | The following table sets forth the change in the uncertain tax positions, excluding interest and penalties: For the years ended June 30, 2023 2022 2021 (in millions) Balance, beginning of year $ 28 $ 30 $ 73 Additions for prior year tax positions 2 1 — Additions for current year tax positions 2 2 2 Reduction for prior year tax positions (a) (6) (5) (45) Balance, end of year $ 26 $ 28 $ 30 (a) The reduction for tax positions in fiscal 2023 of $6 million is primarily due to audit settlements and the expiration of statutes of limitations. The reduction for tax positions in fiscal 2022 of $5 million is primarily from the expiration statutes of limitations. The reduction for tax positions in fiscal 2021 includes $31 million from the settlement of audits and $14 million from the expiration of statutes of limitations. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenues and Segment EBITDA from Segments to Consolidated | The following tables set forth the Company’s Revenues and Segment EBITDA for fiscal 2023, 2022 and 2021: For the years ended June 30, 2023 2022 2021 (in millions) Revenues Cable Network Programming $ 6,043 $ 6,097 $ 5,683 Television 8,710 7,685 7,048 Other, Corporate and Eliminations 160 192 178 Total revenues $ 14,913 $ 13,974 $ 12,909 Segment EBITDA Cable Network Programming $ 2,472 $ 2,934 $ 2,876 Television 1,009 347 555 Other, Corporate and Eliminations (290) (326) (344) Amortization of cable distribution investments (16) (18) (22) Depreciation and amortization (411) (363) (300) Impairment and restructuring charges (111) — (35) Interest expense, net (218) (371) (391) Other, net (699) (509) 579 Income before income tax expense 1,736 1,694 2,918 Income tax expense (483) (461) (717) Net income 1,253 1,233 2,201 Less: Net income attributable to noncontrolling interests (14) (28) (51) Net income attributable to Fox Corporation stockholders $ 1,239 $ 1,205 $ 2,150 |
Summary of Revenues by Segment by Component to Consolidated | Revenues by Segment by Component For the years ended June 30, 2023 2022 2021 (in millions) Cable Network Programming Affiliate fee $ 4,175 $ 4,205 $ 3,995 Advertising 1,403 1,462 1,337 Other 465 430 351 Total Cable Network Programming revenues 6,043 6,097 5,683 Television Advertising 5,204 4,440 4,094 Affiliate fee 2,876 2,673 2,440 Other 630 572 514 Total Television revenues 8,710 7,685 7,048 Other, Corporate and Eliminations 160 192 178 Total revenues $ 14,913 $ 13,974 $ 12,909 |
Reconciliation of Depreciation and Amortization from Segments to Consolidated and Reconciliation of Capital Expenditures from Segments to Consolidated | For the years ended June 30, 2023 2022 2021 (in millions) Depreciation and amortization Cable Network Programming $ 71 $ 60 $ 55 Television 126 112 104 Other, Corporate and Eliminations 214 191 141 Total depreciation and amortization $ 411 $ 363 $ 300 For the years ended June 30, 2023 2022 2021 (in millions) Capital expenditures Cable Network Programming $ 66 $ 67 $ 53 Television 96 104 100 Other, Corporate and Eliminations 195 136 331 Total capital expenditures $ 357 $ 307 $ 484 |
Reconciliation of Assets from Segments to Consolidated | As of June 30, 2023 2022 (in millions) Assets Cable Network Programming $ 2,658 $ 2,682 Television 7,803 7,915 Other, Corporate and Eliminations 10,371 11,010 Investments 1,034 578 Total assets $ 21,866 $ 22,185 |
Reconciliation of Goodwill and Intangible Assets, Net from Segments to Consolidated | As of June 30, 2023 2022 (in millions) Goodwill and intangible assets, net Cable Network Programming $ 1,312 $ 1,322 Television 4,633 4,671 Other, Corporate and Eliminations 698 718 Total goodwill and intangible assets, net $ 6,643 $ 6,711 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: For the years ended June 30, 2023 2022 2021 (in millions, except per share amounts) Net income attributable to Fox Corporation stockholders $ 1,239 $ 1,205 $ 2,150 Weighted average shares - basic 529 566 591 Shares issuable under equity-based compensation plans (a) 2 4 4 Weighted average shares - diluted 531 570 595 Net income attributable to Fox Corporation stockholders per share - basic $ 2.34 $ 2.13 $ 3.64 Net income attributable to Fox Corporation stockholders per share - diluted $ 2.33 $ 2.11 $ 3.61 (a) Weighted average common shares include the incremental shares that would be issued upon the assumed vesting of RSUs, PSUs and stock options (including PSOs) if the effect is dilutive, and, for those shares that are contingently issuable, all necessary conditions have been satisfied for the periods presented (See Note 12—Equity-Based Compensation). |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | Balance as of beginning of year Additions Utilization Other Balance as of end of year (in millions) Fiscal 2023 Allowance for credit losses $ (54) $ — $ 3 $ 7 $ (44) Deferred tax valuation allowance (34) (38) — — (72) Fiscal 2022 Allowance for credit losses $ (77) $ (2) $ 19 $ 6 $ (54) Deferred tax valuation allowance (24) (23) 13 — (34) Fiscal 2021 Allowance for credit losses $ (93) $ (4) $ 11 $ 9 $ (77) Deferred tax valuation allowance (20) (9) 5 — (24) |
Additional Financial Informat_2
Additional Financial Information (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interest Expense, Net | The following table sets forth the components of Interest expense, net included in the Statements of Operations: For the years ended June 30, 2023 2022 2021 (in millions) Interest expense $ (349) $ (377) $ (395) Interest income 131 6 4 Total interest expense, net $ (218) $ (371) $ (391) |
Components of Other, net | The following table sets forth the components of Other, net included in the Statements of Operations: For the years ended June 30, 2023 2022 2021 (in millions) Legal settlement costs (a) $ (894) $ — $ — Net gains (losses) on investments in equity securities (b) 403 (386) 258 U.K. Newspaper Matters Indemnity (a) (117) (81) (64) Transaction costs (c) (55) (69) 421 Other (36) 27 (36) Total other, net $ (699) $ (509) $ 579 (a) See Note 14—Commitments and Contingencies under the headings “Defamation and Disparagement Claims” and "U.K. Newspaper Matters Indemnity." (b) Net gains (losses) on investments in equity securities includes the gains (losses) related to the changes in fair value of the Company’s investment in Flutter (See Note 6—Fair Value). (c) The transaction costs for fiscal 2021 are primarily related to the partial settlement from Disney of $462 million related to the reimbursement of the Company’s prepayment of its share of the Divestiture Tax (See Note 1—Description of Business and Basis of Presentation). |
Components of Other Non-current Assets | The following table sets forth the components of Other non-current assets included in the Balance Sheets: As of June 30, 2023 2022 (in millions) Investments (a) $ 1,034 $ 578 Operating lease assets (b) 947 477 Inventories, net 642 521 Grantor Trust 276 270 Other 269 225 Total other non-current assets $ 3,168 $ 2,071 (a) Includes investments accounted for at fair value on a recurring basis of $884 million and $435 million as of June 30, 2023 and 2022, respectively (See Note 6—Fair Value). (b) See Note 10—Leases under the heading “ Lessee Arrangements .” |
Components of Accounts Payable, Accrued Expenses and Other Current Liabilities | The following table sets forth the components of Accounts payable, accrued expenses and other current liabilities included in the Balance Sheets: As of June 30, 2023 2022 (in millions) Accrued expenses $ 1,028 $ 992 Programming payable 785 686 Deferred revenue 160 209 Operating lease liabilities 72 107 Other current liabilities 469 302 Total accounts payable, accrued expenses and other current liabilities $ 2,514 $ 2,296 |
Components of Other Liabilities | The following table sets forth the components of Other liabilities included in the Balance Sheets: As of June 30, 2023 2022 (in millions) Non-current operating lease liabilities (a) $ 925 $ 405 Accrued non-current pension/postretirement liabilities 361 447 Other non-current liabilities 198 268 Total other liabilities $ 1,484 $ 1,120 (a) See Note 10—Leases under the heading “ Lessee Arrangements .” |
Supplemental Information | Supplemental Information For the years ended June 30, 2023 2022 2021 (in millions) Supplemental cash flows information Cash paid for interest $ (345) $ (383) $ (390) Cash paid for income taxes $ (245) $ (209) $ (225) Supplemental information on acquisitions Fair value of assets acquired, excluding cash $ — $ 348 $ 49 Cash acquired — 9 — Liabilities assumed — (47) 2 Redeemable noncontrolling interests issued — (5) — Cash paid — (252) (51) Fair value of equity instruments issued as consideration to third parties (a) — 53 — Issuance of subsidiary common units — (53) — Fair value of equity instruments consideration $ — $ — $ — (a) Includes Redeemable noncontrolling interests. |
Description of Business and B_2
Description of Business and Basis of Presentation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 19, 2019 | Sep. 30, 2020 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Basis Of Presentation Details [Line Items] | |||||
Estimated annual tax deductions resulting from the Separation and the Distribution, amount | $ 1,500 | ||||
Estimated reduction to the annual cash tax liability resulting from the Separation and the Distribution, amount | $ 360 | ||||
Federal and state applicable tax rate | 24% | 28% | 27% | 25% | |
Settlement of Divestiture Tax Prepayment | $ 0 | $ 0 | $ 462 | ||
Separation And Distribution Agreement | |||||
Disclosure Basis Of Presentation Details [Line Items] | |||||
Estimated tax liability included in Transaction Tax paid | $ 5,800 | ||||
Prepayment of the Company's share of the estimated taxes resulting from the anticipated divestitures by Disney of certain assets | $ 700 | ||||
Settlement of Divestiture Tax Prepayment | $ 462 | ||||
Class A | |||||
Disclosure Basis Of Presentation Details [Line Items] | |||||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Class B | |||||
Disclosure Basis Of Presentation Details [Line Items] | |||||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Receivables, Net (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Accounting Policies [Abstract] | ||
Total receivables | $ 2,221 | $ 2,182 |
Allowance for credit losses | (44) | (54) |
Total receivables, net | $ 2,177 | $ 2,128 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Goodwill | $ 3,559 | $ 3,554 | $ 3,435 |
Advertising expense | $ 680 | $ 708 | $ 558 |
One Customer | Customer Concentration Risk | Receivables | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 11% | ||
Minimum | Buildings And Leaseholds | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Minimum | Machinery And Equipment | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Finite-lived intangible asset, useful life | 10 years | ||
Maximum | Buildings And Leaseholds | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 40 years | ||
Maximum | Machinery And Equipment | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 10 years |
Acquisitions, Disposals and O_2
Acquisitions, Disposals and Other Transactions - Narrative (Details) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 business | Jun. 30, 2022 USD ($) business | Jun. 30, 2021 business | |
Business Combination and Asset Acquisition [Abstract] | |||
Number of businesses acquired | business | 0 | 3 | 1 |
Consideration transferred | $ | $ 240 |
Restructuring Programs - Narrat
Restructuring Programs - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring reserve, current | $ 74 | $ 16 | |
Restructuring reserve, noncurrent | 10 | 11 | |
Cable Network Programming And Television Segments | Contract termination costs | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | $ 111 | $ 0 | $ 35 |
Restructuring Programs - Schedu
Restructuring Programs - Schedule of Changes in Restructuring Program Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring liabilities, beginning balance | $ (27) | $ (38) | $ (68) |
Additions | (111) | (35) | |
Payments | 54 | 11 | 65 |
Restructuring liabilities, ending balance | (84) | (27) | (38) |
One time termination benefits | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring liabilities, beginning balance | (8) | (16) | (38) |
Additions | (111) | (39) | |
Payments | 52 | 8 | 61 |
Restructuring liabilities, ending balance | (67) | (8) | (16) |
Contract termination costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring liabilities, beginning balance | (19) | (22) | (30) |
Additions | 0 | (4) | |
Payments | 2 | 3 | 4 |
Restructuring liabilities, ending balance | $ (17) | $ (19) | $ (22) |
Inventories, Net - Schedule of
Inventories, Net - Schedule of Inventories, Net (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Inventory [Line Items] | ||
Licensed programming, including prepaid sports rights | $ 720 | $ 975 |
Owned programming | 465 | 337 |
Total inventories, net | 1,185 | 1,312 |
Less: current portion of inventories, net | (543) | (791) |
Inventories, net | 642 | 521 |
Owned programming | ||
Total | 465 | 337 |
Released | ||
Owned programming | ||
Released | 256 | 205 |
In-process or other | ||
Owned programming | ||
In-process or other | $ 209 | $ 132 |
Inventories, Net - Amortization
Inventories, Net - Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |||
Total amortization expense | $ 6,036 | $ 5,379 | $ 4,721 |
Inventories, Net - Schedule o_2
Inventories, Net - Schedule of Estimated Amortization Expense (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Inventory Disclosure [Abstract] | |
2024 | $ 694 |
2025 | 123 |
2026 | $ 55 |
Inventories, Net - Narrative (D
Inventories, Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Expenses | Sports Programming Rights and Entertainment Programming Rights | Cable Network Programming And Television Segments | |||
Inventory [Line Items] | |||
Inventory write-down | $ 10 | $ 50 | $ 0 |
Fair Value - Schedule of Financ
Fair Value - Schedule of Financial Assets and Liabilities Carried at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments in equity securities | $ 884 | $ 435 |
Redeemable noncontrolling interests | (213) | (188) |
Fair value measurements recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments in equity securities | 884 | 435 |
Redeemable noncontrolling interests | (213) | (188) |
Total | 671 | 247 |
Fair value measurements recurring | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments in equity securities | 884 | 435 |
Redeemable noncontrolling interests | 0 | 0 |
Total | 884 | 435 |
Fair value measurements recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments in equity securities | 0 | 0 |
Redeemable noncontrolling interests | 0 | 0 |
Total | 0 | 0 |
Fair value measurements recurring | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments in equity securities | 0 | 0 |
Redeemable noncontrolling interests | (213) | (188) |
Total | $ (213) | $ (188) |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) - FanDuel - USD ($) $ in Billions | 1 Months Ended | ||
Jan. 31, 2023 | May 31, 2020 | Jun. 30, 2023 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Percentage of ownership interest that can be acquired in the future | 18.60% | 18.60% | |
Option term to acquire an equity interest | 10 years | ||
Call option exercise price annual escalator | 5% | ||
Call Option | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Option contract, fair value | $ 3.7 | $ 4 |
Fair Value - Liabilities Measur
Fair Value - Liabilities Measured on Recurring Basis (Details) - Redeemable Noncontrolling Interests - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Redemption of noncontrolling interests | $ 110 | ||
Amounts reclassified into equity as a result of the expiration of a put arrangement | $ 135 | ||
Notes payable payment period | 3 years | ||
Level 3 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning of year | $ (188) | (261) | $ (305) |
Acquisitions | 0 | (58) | 0 |
Net loss (income) | 16 | 12 | (25) |
Redemption of noncontrolling interests | 0 | 0 | 135 |
Distributions | 0 | 3 | 15 |
Accretion and other | (41) | 116 | (81) |
End of year | $ (213) | $ (188) | $ (261) |
Fair Value - Borrowings (Detail
Fair Value - Borrowings (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Fair Value Disclosures [Abstract] | ||
Fair value | $ 6,895 | $ 7,084 |
Carrying value | $ 7,210 | $ 7,206 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 3,429 | $ 3,226 |
Less: accumulated depreciation and amortization | (1,966) | (1,729) |
Property, plant and equipment, net before construction in progress | 1,463 | 1,497 |
Construction in progress | 245 | 185 |
Total property, plant and equipment, net | 1,708 | 1,682 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 205 | 199 |
Buildings and leaseholds | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,320 | 1,284 |
Machinery and equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,904 | $ 1,743 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | $ 411 | $ 363 | $ 300 |
Property, Plant and Equipment | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | $ 337 | $ 297 | $ 237 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Changes in Carrying Values of Intangible Assets and Related Accumulated Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Indefinite-lived Intangible Assets [Roll Forward] | ||
Intangible assets not subject to amortization, beginning | $ 2,892 | $ 2,892 |
Intangible assets not subject to amortization, acquisitions | 0 | |
Intangible assets not subject to amortization, ending | 2,892 | 2,892 |
Finite-lived Intangible Assets [Roll Forward] | ||
Amortizable intangible assets, net, beginning | 265 | 262 |
Amortizable intangible assets, net, acquisitions | 71 | |
Amortizable intangible assets, net, amortization and other | (73) | (68) |
Amortizable intangible assets, net, ending | 192 | 265 |
Total Intangible Assets, Net [Roll Forward] | ||
Total intangible assets, net, beginning | 3,157 | 3,154 |
Total intangible assets, net, acquisitions | 71 | |
Total intangible assets, net, amortization and other | (73) | (68) |
Total intangible assets, net, ending | 3,084 | 3,157 |
Accumulated amortization of amortizable intangible assets | 366 | 292 |
FCC licenses | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||
Intangible assets not subject to amortization, beginning | 2,250 | 2,250 |
Intangible assets not subject to amortization, acquisitions | 0 | |
Intangible assets not subject to amortization, ending | 2,250 | 2,250 |
Other | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||
Intangible assets not subject to amortization, beginning | 642 | 642 |
Intangible assets not subject to amortization, acquisitions | 0 | |
Intangible assets not subject to amortization, ending | $ 642 | $ 642 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Total intangible assets, net, amortization | $ 74 | $ 66 | $ 63 |
Television | Operating Segments | |||
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Accumulated impairment loss, goodwill | $ 371 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Schedule of Finite-Lived Intangible Assets, Estimated Amortization Expense (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2024 | $ 46 |
2025 | 33 |
2026 | 32 |
2027 | 29 |
2028 | $ 23 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net - Schedule of Carrying Value of Goodwill, by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 3,554 | $ 3,435 |
Acquisitions and other | 5 | 119 |
Goodwill, ending balance | 3,559 | 3,554 |
Operating Segments | Cable Network Programming | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 1,059 | 1,059 |
Acquisitions and other | 0 | 0 |
Goodwill, ending balance | 1,059 | 1,059 |
Operating Segments | Television | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 2,241 | 2,155 |
Acquisitions and other | 5 | 86 |
Goodwill, ending balance | 2,246 | 2,241 |
Operating Segments | Other, Corporate and Eliminations | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 254 | 221 |
Acquisitions and other | 0 | 33 |
Goodwill, ending balance | $ 254 | $ 254 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) | 12 Months Ended | ||||
Jun. 14, 2023 USD ($) period | Jan. 25, 2019 | Jun. 30, 2023 USD ($) | Apr. 30, 2020 USD ($) | Jan. 31, 2019 USD ($) | |
Revolving Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Limit on revolving credit facility | $ 1,000,000,000 | ||||
Sub-limit for maximum amount of letters of credit issuable under revolving credit facility | 150,000,000 | ||||
Line of credit facility, maximum borrowing capacity | $ 1,750,000,000 | ||||
Maturity extension number of one year periods | period | 2 | ||||
Line of credit facility, commitment fee percentage | 0.125% | ||||
Borrowings outstanding | $ 0 | ||||
Revolving Credit Agreement | Secured Overnight Financing Rate (SOFR) | |||||
Debt Instrument [Line Items] | |||||
Debt instrument variable interest rate | 1.125% | ||||
Senior Notes issued April 2020 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 1,200,000,000 | ||||
Senior Notes issued January 2019 | Bridge Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 6,800,000,000 | ||||
Senior notes | |||||
Debt Instrument [Line Items] | |||||
Early redemption in certain circumstances where a change in control is deemed to have occurred, percent of principal | 101% | ||||
Senior notes | $ 1,250,000,000 | ||||
Debt instrument interest rate | 4.03% |
Borrowings - Schedule of Senior
Borrowings - Schedule of Senior Notes (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Debt Instrument [Line Items] | ||
Total public debt | $ 7,250 | $ 7,250 |
Less: unamortized discount and debt issuance costs | (40) | (44) |
Total borrowings | $ 7,210 | 7,206 |
Senior notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate of debt instrument | 4.03% | |
Senior notes | 4.030% senior notes due 2024 | ||
Debt Instrument [Line Items] | ||
Total public debt | $ 1,250 | 1,250 |
Stated interest rate of debt instrument | 4.03% | |
Senior notes | 3.050% senior notes due 2025 | ||
Debt Instrument [Line Items] | ||
Total public debt | $ 600 | 600 |
Stated interest rate of debt instrument | 3.05% | |
Senior notes | 4.709% senior notes due 2029 | ||
Debt Instrument [Line Items] | ||
Total public debt | $ 2,000 | 2,000 |
Stated interest rate of debt instrument | 4.709% | |
Senior notes | 3.500% senior notes due 2030 | ||
Debt Instrument [Line Items] | ||
Total public debt | $ 600 | 600 |
Stated interest rate of debt instrument | 3.50% | |
Senior notes | 5.476% senior notes due 2039 | ||
Debt Instrument [Line Items] | ||
Total public debt | $ 1,250 | 1,250 |
Stated interest rate of debt instrument | 5.476% | |
Senior notes | 5.576% senior notes due 2049 | ||
Debt Instrument [Line Items] | ||
Total public debt | $ 1,550 | $ 1,550 |
Stated interest rate of debt instrument | 5.576% |
Leases - Summary of Operating L
Leases - Summary of Operating Lease Components of Balance Sheet and Other Supplemental Information (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Leases [Abstract] | ||
ROU assets | $ 947 | $ 477 |
Lease liabilities | ||
Current lease liabilities | $ 72 | $ 107 |
Operating lease, liability, current, statement of financial position | Accounts payable, accrued expenses and other current liabilities | Accounts payable, accrued expenses and other current liabilities |
Non-current lease liabilities | $ 925 | $ 405 |
Operating lease, liability, noncurrent, statement of financial position | Other liabilities | Other liabilities |
Total lease liabilities | $ 997 | $ 512 |
Operating lease, liability, statement of financial position | Other Liabilities | Other Liabilities |
Other supplemental information | ||
Weighted average remaining lease term | 17 years | 9 years |
Weighted average discount rate | 5% | 3% |
Leases - Summary of Lease Costs
Leases - Summary of Lease Costs and Supplemental Cash Flows Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Lease costs | |||
Total lease costs | $ 145 | $ 128 | $ 126 |
Supplemental cash flows information | |||
Operating cash flows from operating leases | 119 | 116 | 134 |
ROU assets obtained in exchange for operating lease liabilities | 568 | 137 | 49 |
Sublease income | $ 15 | $ 15 | 30 |
Office Facility | News Corporation | |||
Supplemental cash flows information | |||
Sublease income | $ 15 |
Leases - Summary of Operating_2
Leases - Summary of Operating Lease Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Fiscal Year | ||
2024 | $ 123 | |
2025 | 113 | |
2026 | 63 | |
2027 | 61 | |
2028 | 93 | |
Thereafter | 1,101 | |
Total lease payments | 1,554 | |
Less: imputed interest | (557) | |
Present value of operating lease liabilities | $ 997 | $ 512 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 USD ($) option | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Lessee, Lease, Description [Line Items] | |||
ROU assets obtained in exchange for operating lease liabilities | $ 568 | $ 137 | $ 49 |
Total lease income | 60 | $ 60 | $ 50 |
Corporate Headquarters | |||
Lessee, Lease, Description [Line Items] | |||
ROU assets obtained in exchange for operating lease liabilities | $ 540 | ||
Production and Office Space | |||
Lessee, Lease, Description [Line Items] | |||
Initial term of lease arrangements | 7 years | ||
Number of renewal options | option | 2 | ||
Lease arrangements renewal term | 5 years | ||
Annual lease payments to be received | $ 50 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||||||||
Feb. 08, 2023 $ / shares | Nov. 06, 2019 | Aug. 31, 2023 $ / shares shares | Aug. 11, 2023 shares | Feb. 28, 2023 USD ($) shares | Sep. 30, 2020 $ / shares shares | Aug. 31, 2020 USD ($) $ / shares shares | Jun. 30, 2023 USD ($) holder class vote $ / shares shares | Jun. 30, 2022 $ / shares shares | Jun. 30, 2021 shares | Mar. 19, 2019 $ / shares | |
Stockholders Equity [Line Items] | |||||||||||
Common stock, number of classes | class | 2 | ||||||||||
Stock repurchase program, authorized amount | $ | $ 4,000,000,000 | ||||||||||
Stock repurchase program, additional authorized amount | $ | 3,000,000,000 | ||||||||||
Class B | |||||||||||
Stockholders Equity [Line Items] | |||||||||||
Number of votes | vote | 1 | ||||||||||
Number of holders of shares | holder | 3,400 | ||||||||||
Common stock, shares authorized | shares | 1,000,000,000 | 1,000,000,000 | |||||||||
Common stock, par value (in USD per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Total number of shares repurchased | shares | 400,000 | 2,000,000 | |||||||||
Accelerated share repurchases, percentage of shares expected to be repurchased | 80% | ||||||||||
Accelerated share repurchases, initial price paid per share (in USD per share) | $ / shares | $ 26.01 | ||||||||||
Accelerated share repurchases agreement amount | $ | $ 66,000,000 | ||||||||||
Accelerated share repurchases, final price paid (in USD per share) | $ / shares | $ 27.67 | ||||||||||
Class B | Maximum | Stockholders Agreement | Murdoch Family Trust | |||||||||||
Stockholders Equity [Line Items] | |||||||||||
Outstanding voting power, percentage | 44% | ||||||||||
Percentage of voting power increase in any rolling twelve-month period | 1.75% | ||||||||||
Class A | |||||||||||
Stockholders Equity [Line Items] | |||||||||||
Number of holders of shares | holder | 15,100 | ||||||||||
Common stock, shares authorized | shares | 2,000,000,000 | 2,000,000,000 | |||||||||
Common stock, par value (in USD per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Total number of shares repurchased | shares | 900,000 | 4,700,000 | |||||||||
Accelerated share repurchases, percentage of shares expected to be repurchased | 80% | ||||||||||
Accelerated share repurchases, initial price paid per share (in USD per share) | $ / shares | $ 26 | ||||||||||
Accelerated share repurchases agreement amount | $ | $ 154,000,000 | ||||||||||
Accelerated share repurchases, final price paid (in USD per share) | $ / shares | $ 27.57 | ||||||||||
Class A | Subsequent Event | |||||||||||
Stockholders Equity [Line Items] | |||||||||||
Total number of shares repurchased | shares | 1,500,000 | ||||||||||
Class A | Accelerated Share Repurchase | |||||||||||
Stockholders Equity [Line Items] | |||||||||||
Accelerated share repurchases, amount of payment to third party financial institution | $ | $ 1,000,000,000 | ||||||||||
Total number of shares repurchased | shares | 22,500,000 | ||||||||||
Accelerated share repurchases, percentage of shares expected to be repurchased | 80% | ||||||||||
Accelerated share repurchases, initial price paid per share (in USD per share) | $ / shares | $ 35.54 | ||||||||||
Class A | Accelerated Share Repurchase | Subsequent Event | |||||||||||
Stockholders Equity [Line Items] | |||||||||||
Total number of shares repurchased | shares | 7,800,000 | ||||||||||
Accelerated share repurchases, initial price paid per share (in USD per share) | $ / shares | $ 33.03 | ||||||||||
Preferred Class A | |||||||||||
Stockholders Equity [Line Items] | |||||||||||
Preferred stock, shares authorized | shares | 35,000,000 | ||||||||||
Preferred stock, par value (in USD per share) | $ / shares | $ 0.01 | ||||||||||
Series Common Stock | |||||||||||
Stockholders Equity [Line Items] | |||||||||||
Common stock, shares authorized | shares | 35,000,000 | ||||||||||
Common stock, par value (in USD per share) | $ / shares | $ 0.01 | ||||||||||
Class A and Class B Common Stock | |||||||||||
Stockholders Equity [Line Items] | |||||||||||
Stock repurchase program, authorized amount | $ | $ 7,000,000,000 | ||||||||||
Stock repurchase remaining authorized repurchase amount | $ | $ 2,400,000,000 | ||||||||||
Total number of shares repurchased | shares | 54,000,000 | 27,000,000 | 31,000,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Repurchases of Common Stock (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Stockholders Equity [Line Items] | |||
Total cost of repurchases | $ 2,014 | $ 1,000 | $ 1,001 |
Class A and Class B Common Stock | |||
Stockholders Equity [Line Items] | |||
Total cost of repurchases | $ 2,000 | $ 1,000 | $ 1,001 |
Total number of shares repurchased | 54 | 27 | 31 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Dividends Declared and Paid (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Class A | |||
Dividends Payable [Line Items] | |||
Cash dividend per share (in USD per share) | $ 0.50 | $ 0.48 | $ 0.46 |
Class B Common Stock | |||
Dividends Payable [Line Items] | |||
Cash dividend per share (in USD per share) | $ 0.50 | $ 0.48 | $ 0.46 |
Stockholders' Equity - Other Co
Stockholders' Equity - Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Other comprehensive income, net of tax: | |||
Other comprehensive income, net of tax | $ 77 | $ 92 | $ 99 |
Benefit plan, cumulative translation adjustments and other | |||
Before tax | |||
Unrealized gains | 79 | 100 | 87 |
Reclassifications realized in net income, before tax | 19 | 32 | 45 |
Cumulative translation adjustment, before tax | 3 | (7) | |
Other comprehensive income | 101 | 125 | 132 |
Tax benefit (provision) | |||
Unrealized gains | (19) | (25) | (21) |
Reclassifications realized in net income, tax | (5) | (8) | (12) |
Cumulative translation adjustment, tax | 0 | 0 | |
Other comprehensive income | (24) | (33) | (33) |
Other comprehensive income, net of tax: | |||
Unrealized gains | 60 | 75 | 66 |
Reclassifications realized in net income, net of tax | 14 | 24 | 33 |
Cumulative translation adjustment, net of tax | 3 | (7) | |
Other comprehensive income, net of tax | $ 77 | $ 92 | $ 99 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Components of Accumulated Other Comprehensive (Loss) Income, Net of Tax (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Equity [Abstract] | |||
Benefit plan adjustments and other | $ (145) | $ (219) | $ (318) |
Cumulative translation adjustment | (4) | (7) | 0 |
Accumulated other comprehensive loss, net of tax | $ (149) | $ (226) | $ (318) |
Equity-Based Compensation - Nar
Equity-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Maximum number of shares of common stock that may be issued under the SAP | 65,000,000 | ||
Number of shares available for issuance under the SAP | 39,000,000 | ||
Granted (in shares) | 4,314,000 | 3,990,000 | 5,003,000 |
Total estimated compensation cost, not yet recognized, related to non-vested equity awards | $ 70 | ||
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average future period unrecognized compensation cost related to equity based awards is expected to be recognized | 1 year | ||
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average future period unrecognized compensation cost related to equity based awards is expected to be recognized | 2 years | ||
Performance Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Restricted Stock Units (RSUs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted (in shares) | 2,100,000 | 1,700,000 | 2,200,000 |
Vesting period | 3 years | ||
Performance Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted (in shares) | 200,000 | 200,000 | 300,000 |
Vesting period | 3 years | ||
Performance Stock Units | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Payout range as a percentage of the target award | 0% | ||
Performance Stock Units | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Payout range as a percentage of the target award | 200% | ||
Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Performance-Based Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Stock options expiration period | 7 years |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Restricted Stock Units and Target Performance Stock Units Granted to be Settled in Stock (Details) - RSUs and PSUs - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
RSUs and PSUs, Number of shares | |||
Unvested units at beginning of the year (in shares) | 5,052 | 5,695 | 8,043 |
Granted (in shares) | 2,314 | 1,909 | 2,495 |
Vested (in shares) | (2,092) | (2,417) | (4,654) |
Cancelled (in shares) | (990) | (135) | (189) |
Unvested units at the end of the year (in shares) | 4,284 | 5,052 | 5,695 |
RSUs and PSUs, Weighted average grant-date fair value | |||
Unvested at the beginning of the year (in USD per share) | $ 32.53 | $ 31.75 | $ 29.98 |
Granted (in USD per share) | 34.31 | 35.77 | 28.07 |
Vested (in USD per share) | 31.75 | 33.32 | 26.71 |
Cancelled (in USD per share) | 33.30 | 31.44 | 32.01 |
Unvested units at the end of the year (in USD per share) | $ 33.72 | $ 32.53 | $ 31.75 |
Intrinsic value of unvested stock units | $ 145 |
Equity-Based Compensation - S_2
Equity-Based Compensation - Summary of Stock Options and PSOs Granted under SAP (Details) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Number of options | |||
Outstanding at the beginning of the year (in shares) | 14,250 | 11,150 | 6,809 |
Granted (in shares) | 4,314 | 3,990 | 5,003 |
Exercised (in shares) | (234) | (542) | (386) |
Cancelled (in shares) | (1,282) | (348) | (276) |
Outstanding at the end of the year (in shares) | 17,048 | 14,250 | 11,150 |
Exercisable at the end of the year (in shares) | 5,282 | 4,586 | 3,981 |
Weighted average exercise price | |||
Outstanding at the beginning of the year (in USD per share) | $ 32.90 | $ 32.09 | $ 35.11 |
Granted (in USD per share) | 33.40 | 34.83 | 27.52 |
Exercised (in USD per share) | 28.76 | 31.94 | 27.21 |
Cancelled (in USD per share) | 32.77 | 30.38 | 30.44 |
Outstanding at the end of the year (in USD per share) | 33.12 | 32.90 | 32.09 |
Exercisable at the end of the year (in USD per share) | 36.35 | 37.13 | 38.12 |
Weighted average grant-date fair value of options granted (in USD per share) | $ 10.32 | $ 7.48 | $ 7.37 |
Weighted average remaining contractual term of options outstanding at the end of the year | 6 years 6 months 3 days | 6 years 9 months | 6 years 9 months 25 days |
Weighted average remaining contractual term of options exercisable at the end of the year | 2 years 11 months 15 days | 3 years 10 months 20 days | 4 years 9 months 21 days |
Proceeds from stock options exercised | $ 7,000,000 | $ 17,000,000 | $ 12,000,000 |
Intrinsic value of options outstanding | 37,100,000 | 26,900,000 | 65,600,000 |
Intrinsic value of options exercisable | $ 6,800,000 | $ 3,100,000 | $ 5,500,000 |
Equity-Based Compensation - Wei
Equity-Based Compensation - Weighted Average Assumptions Used for Estimated Fair Value of PSO and Stock Option Grants (Details) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected volatility | 35% | 35% | 35% |
Risk-free interest rate | 2.83% | 1.20% | 0.66% |
Expected dividend yield | 1.40% | 1.31% | 1.67% |
Expected term | 5 years 3 months 18 days | 5 years 3 months 14 days | 5 years 3 months 14 days |
Equity-Based Compensation - S_3
Equity-Based Compensation - Summary of Equity-Based Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Equity-based compensation | $ 74 | $ 102 | $ 147 |
Intrinsic value of all settled equity-based awards | 77 | 97 | 139 |
Tax benefit on settled equity-based awards | $ 14 | $ 21 | $ 23 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Related Party Transaction [Line Items] | ||
Accounts payable, accrued expenses and other current liabilities | $ 2,514 | $ 2,296 |
Other liabilities | 1,484 | 1,120 |
Related Party | ||
Related Party Transaction [Line Items] | ||
Accounts payable, accrued expenses and other current liabilities | $ 124 | $ 81 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Commitments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Total borrowings | $ 7,250 | $ 7,250 |
Borrowings, due 1 year or less | 1,250 | |
Borrowings, due 2-3 years | 600 | |
Borrowings, due 4-5 years | 0 | |
Borrowings, due after 5 years | 5,400 | |
Contractual Obligation, Fiscal Year Maturity [Abstract] | ||
Total commitments | 39,397 | |
Total commitments, due 1 year or less | 6,670 | |
Total commitments, due 2-3 years | 9,116 | |
Total commitments, due 4-5 years | 8,182 | |
Total commitments, due after 5 years | 15,429 | |
Other Commitment, Fiscal Year Maturity [Abstract] | ||
Total other commitments and contractual obligations | 1,032 | |
Other commitments and contractual obligations, due 1 year or less | 318 | |
Other commitments and contractual obligations, due 2-3 years | 336 | |
Other commitments and contractual obligations, due 4-5 years | 138 | |
Other commitments and contractual obligations, due after 5 years | 240 | |
Licensed programming | ||
Contractual Obligation, Fiscal Year Maturity [Abstract] | ||
Total commitments | 31,115 | |
Total commitments, due 1 year or less | 5,102 | |
Total commitments, due 2-3 years | 8,180 | |
Total commitments, due 4-5 years | 8,044 | |
Total commitments, due after 5 years | $ 9,789 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2023 | Mar. 31, 2021 | Feb. 28, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Loss Contingencies [Line Items] | ||||||
Net benefit liability recognized for pension and other postretirement benefit plans | $ 374 | |||||
Legal settlement costs | 894 | $ 0 | $ 0 | |||
Smartmatic | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, damages sought, value | $ 2,700 | |||||
Dominion | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, damages sought, value | $ 1,600 | |||||
Legal settlement costs | $ 800 | |||||
U.K. Newspaper Matters Indemnity | ||||||
Loss Contingencies [Line Items] | ||||||
Liability related to indemnity | $ 115 | $ 65 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Schedule of Projected Benefit Obligation, Changes in Fair Value of Plan Assets and Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Change in the fair value of plan assets for the Company’s benefit plans: | ||
Grantor Trust assets | $ 276 | $ 270 |
Pension benefits | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Projected benefit obligation, beginning of the year | 1,203 | 1,468 |
Service cost | 30 | 38 |
Interest cost | 52 | 30 |
Benefits paid | (22) | (22) |
Settlements | (32) | (56) |
Actuarial gains | (58) | (256) |
Other | (1) | 1 |
Projected benefit obligation, end of the year | 1,172 | 1,203 |
Change in the fair value of plan assets for the Company’s benefit plans: | ||
Fair value of plan assets, beginning of the year | 801 | 972 |
Actual return on plan assets | 53 | (152) |
Employer contributions | 53 | 59 |
Benefits paid | (22) | (22) |
Settlements | (32) | (56) |
Fair value of plan assets, end of the year | 853 | 801 |
Funded status | (319) | (402) |
Grantor Trust assets | 276 | 270 |
Postretirement benefits | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Projected benefit obligation, beginning of the year | 53 | 98 |
Service cost | 1 | 1 |
Interest cost | 2 | 2 |
Benefits paid | (4) | (4) |
Settlements | 0 | 0 |
Actuarial gains | (5) | (46) |
Other | 0 | 2 |
Projected benefit obligation, end of the year | 47 | 53 |
Change in the fair value of plan assets for the Company’s benefit plans: | ||
Fair value of plan assets, beginning of the year | 0 | 0 |
Actual return on plan assets | 0 | 0 |
Employer contributions | 4 | 4 |
Benefits paid | (4) | (4) |
Settlements | 0 | 0 |
Fair value of plan assets, end of the year | 0 | 0 |
Funded status | (47) | (53) |
Grantor Trust assets | $ 0 | $ 0 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Schedule of Amounts Recognized in Balance Sheets (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Net amounts recognized | $ 374 | |
Pension benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets | 8 | $ 6 |
Accrued pension liabilities | (327) | (408) |
Net amounts recognized | (319) | (402) |
Postretirement benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets | 0 | 0 |
Accrued pension liabilities | (47) | (53) |
Net amounts recognized | $ (47) | $ (53) |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits - Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Pension benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial losses (gains) | $ 228 | $ 322 |
Prior service cost | 1 | 3 |
Net amounts recognized | 229 | 325 |
Postretirement benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial losses (gains) | (34) | (33) |
Prior service cost | 0 | 0 |
Net amounts recognized | $ (34) | $ (33) |
Pension and Other Postretirem_6
Pension and Other Postretirement Benefits - Defined Benefit - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution plans, employer contribution | $ 68 | $ 58 | $ 49 |
Pension benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 1,040 | 1,070 | |
Fair value of plan asset | 853 | 801 | 972 |
Net amounts recognized | $ 1,172 | $ 1,203 | $ 1,468 |
Pension benefits | Return Seeking Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Asset Allocation | 50% | ||
Pension benefits | Liability Hedging Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Asset Allocation | 50% | ||
Pension benefits | Overfunded Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 112 | ||
Fair value of plan asset | 123 | ||
Net amounts recognized | $ 115 |
Pension and Other Postretirem_7
Pension and Other Postretirement Benefits - Funded and Unfunded Pension Plans (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Grantor Trust assets | $ 276 | $ 270 | |
Pension benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net amounts recognized | 1,172 | 1,203 | $ 1,468 |
Accumulated benefit obligation | 1,040 | 1,070 | |
Fair value of plan assets | 853 | 801 | $ 972 |
Grantor Trust assets | 276 | 270 | |
Funded Plans | Pension benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net amounts recognized | 901 | 930 | |
Accumulated benefit obligation | 777 | 801 | |
Fair value of plan assets | 853 | 801 | |
Unfunded Plans | Pension benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net amounts recognized | 271 | 273 | |
Accumulated benefit obligation | 267 | 268 | |
Fair value of plan assets | $ 0 | $ 0 |
Pension and Other Postretirem_8
Pension and Other Postretirement Benefits - Pension Plans in Which Accumulated Benefit Obligation Exceeds Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Grantor Trust assets | $ 276 | $ 270 |
Pension benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Grantor Trust assets | 276 | 270 |
Pension benefits | Funded Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 0 | 807 |
Accumulated benefit obligation | 0 | 683 |
Fair value of plan assets | 0 | 675 |
Pension benefits | Unfunded Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 271 | 273 |
Accumulated benefit obligation | 267 | 268 |
Fair value of plan assets | $ 0 | $ 0 |
Pension and Other Postretirem_9
Pension and Other Postretirement Benefits - Schedule of Components of Periodic Benefit Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Pension benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 30 | $ 38 | |
Interest cost | 52 | 30 | |
Pension benefits | Direct Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 30 | 38 | $ 38 |
Interest cost | 52 | 30 | 30 |
Expected return on plan assets | (40) | (50) | (50) |
Amortization of deferred losses | 23 | 31 | 44 |
Other | 0 | 3 | 2 |
Net periodic benefit costs | 65 | 52 | 64 |
Postretirement benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1 | 1 | |
Interest cost | 2 | 2 | |
Postretirement benefits | Direct Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1 | 1 | 2 |
Interest cost | 2 | 2 | 2 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of deferred losses | (4) | 1 | 1 |
Other | 0 | 0 | 0 |
Net periodic benefit costs | $ (1) | $ 4 | $ 5 |
Pension and Other Postretire_10
Pension and Other Postretirement Benefits - Schedule of Assumptions Used (Details) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Pension benefits | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate | 5.30% | 4.80% | 2.70% |
Weighted-average assumptions used to determine net periodic benefit costs | |||
Expected return on plan assets | 5% | 5.10% | 6.50% |
Pension benefits | Service Cost | |||
Weighted-average assumptions used to determine net periodic benefit costs | |||
Discount rate | 4.80% | 2.80% | 2.90% |
Pension benefits | Interest Cost | |||
Weighted-average assumptions used to determine net periodic benefit costs | |||
Discount rate | 4.50% | 2.10% | 2.20% |
Postretirement benefits | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate | 5.30% | 4.80% | 2.70% |
Postretirement benefits | Service Cost | |||
Weighted-average assumptions used to determine net periodic benefit costs | |||
Discount rate | 4.80% | 2.90% | 3% |
Postretirement benefits | Interest Cost | |||
Weighted-average assumptions used to determine net periodic benefit costs | |||
Discount rate | 4.50% | 2.20% | 2.20% |
Pension and Other Postretire_11
Pension and Other Postretirement Benefits - Health Care Cost Trend Rates (Details) - Postretirement benefits | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | ||
Health care cost trend rate | 6.10% | 5.80% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4% | 4% |
Year that the rate reaches the ultimate trend rate | 2047 | 2047 |
Pension and Other Postretire_12
Pension and Other Postretirement Benefits - Schedule of Expected Estimated Benefit Payments (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Pension benefits | |
Fiscal year | |
2024 | $ 68 |
2025 | 66 |
2026 | 64 |
2027 | 69 |
2028 | 74 |
2029-2033 | 409 |
Postretirement benefits | |
Fiscal year | |
2024 | 4 |
2025 | 4 |
2026 | 4 |
2027 | 4 |
2028 | 4 |
2029-2033 | $ 18 |
Pension and Other Postretire_13
Pension and Other Postretirement Benefits - Plan Assets and Grantor Trust Assets By Level (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Trust for Benefit of Employees | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | $ 276 | $ 270 | |
Money market funds | Trust for Benefit of Employees | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 20 | ||
Domestic fixed income funds | Trust for Benefit of Employees | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 143 | ||
Grantor Trust Balanced Funds | Trust for Benefit of Employees | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 112 | 234 | |
Grantor Trust Partnership Interest | Trust for Benefit of Employees | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 16 | ||
Other | Trust for Benefit of Employees | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 1 | 20 | |
Pension benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 853 | 801 | $ 972 |
Pension benefits | Money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 18 | 20 | |
Pension benefits | Domestic equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 189 | 82 | |
Pension benefits | Domestic fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 383 | 381 | |
Pension benefits | International equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 136 | 133 | |
Pension benefits | Balanced funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 78 | 78 | |
Pension benefits | U.S. Common stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 43 | ||
Pension benefits | Partnership interests | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 49 | 33 | |
Pension benefits | Exchange traded funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 32 | ||
Pension benefits | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | (1) | ||
Level 1 | Trust for Benefit of Employees | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 276 | 254 | |
Level 1 | Money market funds | Trust for Benefit of Employees | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 20 | ||
Level 1 | Domestic fixed income funds | Trust for Benefit of Employees | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 143 | ||
Level 1 | Grantor Trust Balanced Funds | Trust for Benefit of Employees | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 112 | 234 | |
Level 1 | Grantor Trust Partnership Interest | Trust for Benefit of Employees | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | ||
Level 1 | Other | Trust for Benefit of Employees | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 1 | 20 | |
Level 1 | Pension benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 804 | 768 | |
Level 1 | Pension benefits | Money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 18 | 20 | |
Level 1 | Pension benefits | Domestic equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 189 | 82 | |
Level 1 | Pension benefits | Domestic fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 383 | 381 | |
Level 1 | Pension benefits | International equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 136 | 133 | |
Level 1 | Pension benefits | Balanced funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 78 | 78 | |
Level 1 | Pension benefits | U.S. Common stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 43 | ||
Level 1 | Pension benefits | Partnership interests | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | 0 | |
Level 1 | Pension benefits | Exchange traded funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 32 | ||
Level 1 | Pension benefits | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | (1) | ||
Fair Value Measured at Net Asset Value Per Share | Trust for Benefit of Employees | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | 16 | |
Fair Value Measured at Net Asset Value Per Share | Money market funds | Trust for Benefit of Employees | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | ||
Fair Value Measured at Net Asset Value Per Share | Domestic fixed income funds | Trust for Benefit of Employees | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | ||
Fair Value Measured at Net Asset Value Per Share | Grantor Trust Balanced Funds | Trust for Benefit of Employees | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | 0 | |
Fair Value Measured at Net Asset Value Per Share | Grantor Trust Partnership Interest | Trust for Benefit of Employees | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 16 | ||
Fair Value Measured at Net Asset Value Per Share | Other | Trust for Benefit of Employees | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | 0 | |
Fair Value Measured at Net Asset Value Per Share | Pension benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 49 | 33 | |
Fair Value Measured at Net Asset Value Per Share | Pension benefits | Money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | 0 | |
Fair Value Measured at Net Asset Value Per Share | Pension benefits | Domestic equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | 0 | |
Fair Value Measured at Net Asset Value Per Share | Pension benefits | Domestic fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | 0 | |
Fair Value Measured at Net Asset Value Per Share | Pension benefits | International equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | 0 | |
Fair Value Measured at Net Asset Value Per Share | Pension benefits | Balanced funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | 0 | |
Fair Value Measured at Net Asset Value Per Share | Pension benefits | U.S. Common stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | ||
Fair Value Measured at Net Asset Value Per Share | Pension benefits | Partnership interests | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | $ 49 | 33 | |
Fair Value Measured at Net Asset Value Per Share | Pension benefits | Exchange traded funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | ||
Fair Value Measured at Net Asset Value Per Share | Pension benefits | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | $ 0 |
Pension and Other Postretire_14
Pension and Other Postretirement Benefits - Schedule of Weighted Average Asset Allocations by Asset Category (Details) - Pension benefits | Jun. 30, 2023 | Jun. 30, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit plan weighted-average asset allocations percentage | 100% | 100% |
Equity investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit plan weighted-average asset allocations percentage | 39% | 37% |
Fixed income investments, including cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit plan weighted-average asset allocations percentage | 51% | 52% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit plan weighted-average asset allocations percentage | 10% | 11% |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Provision, Continuing Operations [Abstract] | |||
Federal | $ 127 | $ 88 | $ 181 |
State, local and other | 35 | 31 | 2 |
Total current | 162 | 119 | 183 |
Deferred | 321 | 342 | 534 |
Provision for income taxes | $ 483 | $ 461 | $ 717 |
Income Taxes - Tax Rate Reconci
Income Taxes - Tax Rate Reconciliation (Details) | 12 Months Ended | |||
Mar. 19, 2019 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ||||
U.S. federal income tax rate | 21% | 21% | 21% | |
State and local taxes | 5% | 4% | 4% | |
Valuation allowance movement | 2% | 0% | 0% | |
Return to accrual | 0% | 2% | 0% | |
Nondeductible compensation | 0% | 1% | 1% | |
Adjustments for tax matters, net | 0% | 0% | (1.00%) | |
Other | 0% | (1.00%) | 0% | |
Effective tax rate | 24% | 28% | 27% | 25% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 19, 2019 |
Deferred tax assets | |||
Basis difference | $ 2,911 | $ 3,371 | |
Operating lease liabilities | 241 | 123 | |
Pension benefit obligations | 14 | 34 | |
Equity-based compensation | 34 | 30 | |
Net operating loss carryforwards | 37 | 31 | |
Other | 188 | 104 | |
Total deferred tax assets | 3,425 | 3,693 | |
Deferred tax liabilities | |||
Operating lease ROU assets | (229) | (116) | |
Accrued liabilities | (21) | (2) | |
Sports rights contracts | (19) | (108) | |
Total deferred tax liabilities | (269) | (226) | |
Net deferred tax asset before valuation allowance | 3,156 | 3,467 | |
Less: valuation allowance | (72) | (34) | |
Total net deferred tax assets | 3,084 | 3,433 | |
Other deferred tax liability | $ 6 | $ 7 | |
Separation And Distribution Agreement | |||
Deferred tax liabilities | |||
Estimated tax liability included in Transaction Tax paid | $ 5,800 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 37 | $ 31 |
Valuation allowance | 72 | 34 |
Liabilities for accrued interest related to uncertain tax benefits | 9 | 11 |
Unrecognized tax benefits that would impact effective tax rate | $ 21 | $ 22 |
Income Taxes - Uncertain Tax Po
Income Taxes - Uncertain Tax Positions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Change in accrual for uncertain tax positions, excluding interest and penalties | |||
Balance, beginning of year | $ 28 | $ 30 | $ 73 |
Additions for prior year tax positions | 2 | 1 | 0 |
Additions for current year tax positions | 2 | 2 | 2 |
Reduction for prior year tax positions | (6) | (5) | (45) |
Balance, end of year | 26 | 28 | 30 |
Reduction for prior year tax positions from the settlement of audits | $ 6 | 31 | |
Reduction for prior year tax positions from the expiration of statutes of limitations | $ 5 | $ 14 |
Segment Information - Narrative
Segment Information - Narrative (Details) - Television - US | 12 Months Ended |
Jun. 30, 2023 tvStation duopoly | |
Segment Reporting Information [Line Items] | |
Full power broadcast television stations | 29 |
Duopolies | duopoly | 11 |
FOX Network | |
Segment Reporting Information [Line Items] | |
Full power broadcast television stations | 18 |
MyNetworkTV | |
Segment Reporting Information [Line Items] | |
Full power broadcast television stations | 10 |
Independent Station | |
Segment Reporting Information [Line Items] | |
Full power broadcast television stations | 1 |
Segment Information - Reconcili
Segment Information - Reconciliation of Revenues and Segment EBITDA from Segments to Consolidated (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 14,913 | $ 13,974 | $ 12,909 | |
Amortization of cable distribution investments | (16) | (18) | (22) | |
Depreciation and amortization | (411) | (363) | (300) | |
Impairment and restructuring charges | (111) | 0 | (35) | |
Interest expense, net | (218) | (371) | (391) | |
Other, net | (699) | (509) | 579 | |
Income before income tax expense | 1,736 | 1,694 | 2,918 | |
Income tax expense | (483) | (461) | (717) | |
Net income | 1,253 | 1,233 | 2,201 | |
Less: Net income attributable to noncontrolling interests | [1] | (14) | (28) | (51) |
Net income attributable to Fox Corporation stockholders | 1,239 | 1,205 | 2,150 | |
Cable Network Programming | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 6,043 | 6,097 | 5,683 | |
Segment EBITDA | 2,472 | 2,934 | 2,876 | |
Depreciation and amortization | (71) | (60) | (55) | |
Television | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 8,710 | 7,685 | 7,048 | |
Segment EBITDA | 1,009 | 347 | 555 | |
Depreciation and amortization | (126) | (112) | (104) | |
Other, Corporate and Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 160 | 192 | 178 | |
Segment EBITDA | (290) | (326) | (344) | |
Depreciation and amortization | $ (214) | $ (191) | $ (141) | |
[1]Net income attributable to noncontrolling interests includes $(16) million, $(12) million and $25 million for the fiscal years ended June 30, 2023, 2022 and 2021, respectively, relating to redeemable noncontrolling interests. |
Segment Information - Summary o
Segment Information - Summary of Revenues by Segment by Component to Consolidated (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | |||
Revenues | $ 14,913 | $ 13,974 | $ 12,909 |
Cable Network Programming | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 6,043 | 6,097 | 5,683 |
Cable Network Programming | Affiliate fee | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 4,175 | 4,205 | 3,995 |
Cable Network Programming | Advertising | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 1,403 | 1,462 | 1,337 |
Cable Network Programming | Other | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 465 | 430 | 351 |
Television | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 8,710 | 7,685 | 7,048 |
Television | Affiliate fee | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 2,876 | 2,673 | 2,440 |
Television | Advertising | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 5,204 | 4,440 | 4,094 |
Television | Other | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 630 | 572 | 514 |
Other, Corporate and Eliminations | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | $ 160 | $ 192 | $ 178 |
Segment Information - Reconci_2
Segment Information - Reconciliation of Depreciation and Amortization from Segments to Consolidated and Reconciliation of Capital Expenditures from Segments to Consolidated (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 411 | $ 363 | $ 300 |
Capital expenditures | 357 | 307 | 484 |
Cable Network Programming | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 71 | 60 | 55 |
Capital expenditures | 66 | 67 | 53 |
Television | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 126 | 112 | 104 |
Capital expenditures | 96 | 104 | 100 |
Other, Corporate and Eliminations | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 214 | 191 | 141 |
Capital expenditures | $ 195 | $ 136 | $ 331 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Assets from Segments to Consolidated) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 21,866 | $ 22,185 |
Investments | 1,034 | 578 |
Cable Network Programming | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,658 | 2,682 |
Television | ||
Segment Reporting Information [Line Items] | ||
Total assets | 7,803 | 7,915 |
Other, Corporate and Eliminations | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 10,371 | $ 11,010 |
Segment Information - Reconci_3
Segment Information - Reconciliation of Goodwill and Intangible Assets, Net from Segments to Consolidated (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Segment Reporting Information [Line Items] | ||
Goodwill and intangible assets, net | $ 6,643 | $ 6,711 |
Cable Network Programming | ||
Segment Reporting Information [Line Items] | ||
Goodwill and intangible assets, net | 1,312 | 1,322 |
Television | ||
Segment Reporting Information [Line Items] | ||
Goodwill and intangible assets, net | 4,633 | 4,671 |
Other, Corporate and Eliminations | ||
Segment Reporting Information [Line Items] | ||
Goodwill and intangible assets, net | $ 698 | $ 718 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |||
Net income attributable to Fox Corporation stockholders | $ 1,239 | $ 1,205 | $ 2,150 |
Weighted average shares - basic | 529 | 566 | 591 |
Shares issuable under equity-based compensation plans | 2 | 4 | 4 |
Weighted average shares - diluted | 531 | 570 | 595 |
Net income attributable to Fox Corporation stockholders per share - basic (in USD per share) | $ 2.34 | $ 2.13 | $ 3.64 |
Net income attributable to Fox Corporation stockholders per share - diluted (in USD per share) | $ 2.33 | $ 2.11 | $ 3.61 |
Valuation and Qualifying Acco_3
Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Allowance for credit losses | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance as of beginning of year | $ (54) | $ (77) | $ (93) |
Additions | 0 | (2) | (4) |
Utilization | 3 | 19 | 11 |
Other | 7 | 6 | 9 |
Balance as of end of year | (44) | (54) | (77) |
Deferred tax valuation allowance | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance as of beginning of year | (34) | (24) | (20) |
Additions | (38) | (23) | (9) |
Utilization | 0 | 13 | 5 |
Other | 0 | 0 | 0 |
Balance as of end of year | $ (72) | $ (34) | $ (24) |
Additional Financial Informat_3
Additional Financial Information - Interest Expense, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Interest expense | $ (349) | $ (377) | $ (395) |
Interest income | 131 | 6 | 4 |
Interest expense, net | $ (218) | $ (371) | $ (391) |
Additional Financial Informat_4
Additional Financial Information - Components of Other, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Legal settlement costs | $ (894) | $ 0 | $ 0 |
Net gains (losses) on investments in equity securities | 403 | (386) | 258 |
U.K. Newspaper Matters Indemnity | (117) | (81) | (64) |
Transaction costs | (55) | (69) | 421 |
Other | (36) | 27 | (36) |
Total other, net | (699) | (509) | 579 |
Settlement of Divestiture Tax Prepayment | $ 0 | $ 0 | $ 462 |
Additional Financial Informat_5
Additional Financial Information - Components of Other Non-current Assets (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Investments | $ 1,034 | $ 578 |
Operating lease assets | $ 947 | $ 477 |
Operating lease, right-of-use asset, statement of financial position | Total other non-current assets | Total other non-current assets |
Inventories, net | $ 642 | $ 521 |
Grantor Trust | 276 | 270 |
Other | 269 | 225 |
Total other non-current assets | 3,168 | 2,071 |
Investments, fair value | $ 884 | $ 435 |
Additional Financial Informat_6
Additional Financial Information - Components of Accounts Payable, Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued expenses | $ 1,028 | $ 992 |
Programming payable | 785 | 686 |
Deferred revenue | 160 | 209 |
Operating lease liabilities | 72 | 107 |
Other current liabilities | 469 | 302 |
Total accounts payable, accrued expenses and other current liabilities | $ 2,514 | $ 2,296 |
Additional Financial Informat_7
Additional Financial Information - Components of Other Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Non-current operating lease liabilities | $ 925 | $ 405 |
Accrued non-current pension/postretirement liabilities | 361 | 447 |
Other non-current liabilities | 198 | 268 |
Total other liabilities | $ 1,484 | $ 1,120 |
Additional Financial Informat_8
Additional Financial Information - Narrative (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-07-01 $ in Billions | Jun. 30, 2023 USD ($) |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Revenue, remaining performance obligation, amount | $ 4.1 |
Minimum | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Future performance obligation, expected timing of satisfaction, period | 1 year |
Maximum | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Future performance obligation, expected timing of satisfaction, period | 3 years |
Additional Financial Informat_9
Additional Financial Information - Supplemental Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Supplemental cash flows information | |||
Cash paid for interest | $ (345) | $ (383) | $ (390) |
Cash paid for income taxes | (245) | (209) | (225) |
Supplemental information on acquisitions | |||
Fair value of assets acquired, excluding cash | 0 | 348 | 49 |
Cash acquired | 0 | 9 | 0 |
Liabilities assumed | 0 | (47) | 2 |
Redeemable noncontrolling interests issued | 0 | (5) | 0 |
Cash paid | 0 | (252) | (51) |
Fair value of equity instruments issued as consideration to third parties | 0 | 53 | 0 |
Issuance of subsidiary common units | 0 | (53) | 0 |
Fair value of equity instruments consideration | $ 0 | $ 0 | $ 0 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Aug. 11, 2023 | Sep. 30, 2020 | Aug. 31, 2020 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Subsequent Event [Line Items] | ||||||
Repurchase of common stock | $ 2,000 | $ 1,000 | $ 1,001 | |||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Repurchase of common stock | $ 50 | |||||
Class A | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividend per share (in USD per share) | $ 0.50 | $ 0.48 | $ 0.46 | |||
Total number of shares repurchased | 0.9 | 4.7 | ||||
Class A | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Total number of shares repurchased | 1.5 | |||||
Class B | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividend per share (in USD per share) | $ 0.50 | $ 0.48 | $ 0.46 | |||
Total number of shares repurchased | 0.4 | 2 | ||||
Semi Annual Dividend | Class A | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividend per share (in USD per share) | $ 0.26 | |||||
Semi Annual Dividend | Class B | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividend per share (in USD per share) | $ 0.26 |