falsedesktopNWS2020-12-31000156470821000004{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "Delaware\t\t\t46-2950970\n(State or other jurisdiction of incorporation or organization)\t\t\t(I.R.S. Employer Identification No.)\n1211 Avenue of the Americas New York New York\t\t\t10036\n(Address of principal executive offices)\t\t\t(Zip Code)\n\t\t(212) 416-3400\t\n\t(Registrant's telephone number including area code)\t\t\n", "q10k_tbl_1": "Large accelerated filer\t☒\tAccelerated filer\t☐\nNon-accelerated filer\t☐\tSmaller reporting company\t☐\n\t\tEmerging growth company\t☐\n", "q10k_tbl_2": "\tPage\nPart I. Financial Information\t\nItem 1. Financial Statements\t\nConsolidated Statements of Operations for the three and six months ended December 31 2020 and 2019 (unaudited)\t2\nConsolidated Statements of Comprehensive Income (Loss) for the three and six months ended December 31 2020 and 2019 (unaudited)\t3\nConsolidated Balance Sheets as of December 31 2020 (unaudited) and June 30 2020 (audited)\t4\nConsolidated Statements of Cash Flows for the six months ended December 31 2020 and 2019 (unaudited)\t5\nNotes to the Unaudited Consolidated Financial Statements\t6\nItem 2. Management's Discussion and Analysis of Financial Condition and Results of Operations\t28\nItem 3. Quantitative and Qualitative Disclosures About Market Risk\t46\nItem 4. Controls and Procedures\t46\nPart II. Other Information\t\nItem 1. Legal Proceedings\t48\nItem 1A. Risk Factors\t48\nItem 2. Unregistered Sales of Equity Securities and Use of Proceeds\t48\nItem 3. Defaults Upon Senior Securities\t48\nItem 4. Mine Safety Disclosures\t48\nItem 5. Other Information\t48\nItem 6. Exhibits\t48\nSignature\t49\n", "q10k_tbl_3": "\t\tFor the three months ended December 31\t\tFor the six months ended December 31\t\n\tNotes\t2020\t2019\t2020\t2019\nRevenues:\t\t\t\t\t\nCirculation and subscription\t\t1030\t990\t2032\t1985\nAdvertising\t\t448\t677\t780\t1285\nConsumer\t\t523\t421\t964\t808\nReal estate\t\t281\t242\t516\t460\nOther\t\t132\t149\t239\t281\nTotal Revenues\t2\t2414\t2479\t4531\t4819\nOperating expenses\t\t(1198)\t(1351)\t(2362)\t(2689)\nSelling general and administrative\t\t(719)\t(773)\t(1404)\t(1554)\nDepreciation and amortization\t\t(167)\t(162)\t(331)\t(324)\nImpairment and restructuring charges\t4\t(23)\t(29)\t(63)\t(326)\nEquity losses of affiliates\t5\t(3)\t(3)\t(4)\t(5)\nInterest expense net\t\t(12)\t(8)\t(20)\t(4)\nOther net\t13\t54\t2\t71\t6\nIncome (loss) before income tax expense\t\t346\t155\t418\t(77)\nIncome tax expense\t11\t(85)\t(52)\t(110)\t(31)\nNet income (loss)\t\t261\t103\t308\t(108)\nLess: Net income attributable to noncontrolling interests\t\t(30)\t(18)\t(43)\t(34)\nNet income (loss) attributable to News Corporation stockholders\t\t231\t85\t265\t(142)\nNet income (loss) attributable to News Corporation stockholders per share:\t9\t\t\t\t\nBasic\t\t0.39\t0.15\t0.45\t(0.24)\nDiluted\t\t0.39\t0.14\t0.45\t(0.24)\n", "q10k_tbl_4": "\tFor the three months ended December 31\t\tFor the six months ended December 31\t\n\t2020\t2019\t2020\t2019\nNet income (loss)\t261\t103\t308\t(108)\nOther comprehensive income (loss):\t\t\t\t\nForeign currency translation adjustments\t315\t199\t422\t14\nNet change in the fair value of cash flow hedges(a)\t0\t0\t(2)\t(14)\nBenefit plan adjustments net(b)\t(7)\t(13)\t1\t(2)\nOther comprehensive income (loss)\t308\t186\t421\t(2)\nComprehensive income (loss)\t569\t289\t729\t(110)\nLess: Net income attributable to noncontrolling interests\t(30)\t(18)\t(43)\t(34)\nLess: Other comprehensive (income) loss attributable to noncontrolling interests\t(63)\t(36)\t(80)\t9\nComprehensive income (loss) attributable to News Corporation stockholders\t476\t235\t606\t(135)\n", "q10k_tbl_5": "\tNotes\tAs of December 31 2020\tAs of June 30 2020\n\t\t(unaudited)\t(audited)\nAssets:\t\t\t\nCurrent assets:\t\t\t\nCash and cash equivalents\t\t1562\t1517\nReceivables net\t13\t1444\t1203\nInventory net\t\t203\t348\nOther current assets\t\t387\t393\nTotal current assets\t\t3596\t3461\nNon-current assets:\t\t\t\nInvestments\t5\t353\t297\nProperty plant and equipment net\t\t2315\t2256\nOperating lease right-of-use assets\t\t1074\t1061\nIntangible assets net\t\t1934\t1864\nGoodwill\t\t4292\t3951\nDeferred income tax assets\t11\t337\t332\nOther non-current assets\t13\t1193\t1039\nTotal assets\t\t15094\t14261\nLiabilities and Equity:\t\t\t\nCurrent liabilities:\t\t\t\nAccounts payable\t\t291\t351\nAccrued expenses\t\t1094\t1019\nDeferred revenue\t2\t400\t398\nCurrent borrowings\t6\t212\t76\nOther current liabilities\t13\t864\t838\nTotal current liabilities\t\t2861\t2682\nNon-current liabilities:\t\t\t\nBorrowings\t6\t1044\t1183\nRetirement benefit obligations\t\t254\t277\nDeferred income tax liabilities\t11\t339\t258\nOperating lease liabilities\t\t1160\t1146\nOther non-current liabilities\t\t362\t326\nCommitments and contingencies\t10\t\t\nClass A common stock(a)\t\t4\t4\nClass B common stock(b)\t\t2\t2\nAdditional paid-in capital\t\t12091\t12148\nAccumulated deficit\t\t(2976)\t(3241)\nAccumulated other comprehensive loss\t\t(990)\t(1331)\nTotal News Corporation stockholders' equity\t\t8131\t7582\nNoncontrolling interests\t\t943\t807\nTotal equity\t7\t9074\t8389\nTotal liabilities and equity\t\t15094\t14261\n", "q10k_tbl_6": "\t\tFor the six months ended December 31\t\n\tNotes\t2020\t2019\nOperating activities:\t\t\t\nNet income (loss)\t\t308\t(108)\nAdjustments to reconcile net income (loss) to net cash provided by operating activities:\t\t\t\nDepreciation and amortization\t\t331\t324\nOperating lease expense\t\t64\t86\nEquity losses of affiliates\t5\t4\t5\nCash distributions received from affiliates\t\t7\t5\nImpairment charges\t\t0\t292\nOther net\t13\t(71)\t(6)\nDeferred income taxes and taxes payable\t11\t21\t(35)\nChange in operating assets and liabilities net of acquisitions:\t\t\t\nReceivables and other assets\t\t(172)\t(1661)\nInventories net\t\t27\t3\nAccounts payable and other liabilities\t\t(36)\t1287\nNet cash provided by operating activities\t\t483\t192\nInvesting activities:\t\t\t\nCapital expenditures\t\t(173)\t(237)\nAcquisitions net of cash acquired\t\t(90)\t(2)\nInvestments in equity affiliates and other\t\t(11)\t(8)\nProceeds from property plant and equipment and other asset dispositions\t\t3\t10\nOther net\t\t(5)\t3\nNet cash used in investing activities\t\t(276)\t(234)\nFinancing activities:\t\t\t\nBorrowings\t6\t146\t917\nRepayment of borrowings\t6\t(248)\t(1161)\nDividends paid\t\t(80)\t(81)\nOther net\t\t(37)\t(3)\nNet cash used in financing activities\t\t(219)\t(328)\nNet change in cash and cash equivalents\t\t(12)\t(370)\nCash and cash equivalents beginning of period\t\t1517\t1643\nExchange movement on opening cash balance\t\t57\t(1)\nCash and cash equivalents end of period\t\t1562\t1272\n", "q10k_tbl_7": "\tFor the three months ended December 31 2020\t\t\t\t\t\t\n\tDigital Real Estate Services\tSubscription Video Services\tDow Jones\tBook Publishing\tNews Media\tOther\tTotal Revenues\n\t(in millions)\t\t\t\t\t\t\nRevenues:\t\t\t\t\t\t\t\nCirculation and subscription\t8\t446\t319\t0\t257\t0\t1030\nAdvertising\t30\t55\t115\t0\t248\t0\t448\nConsumer\t0\t0\t0\t523\t0\t0\t523\nReal estate\t281\t0\t0\t0\t0\t0\t281\nOther\t20\t10\t12\t21\t68\t1\t132\nTotal Revenues\t339\t511\t446\t544\t573\t1\t2414\n", "q10k_tbl_8": "\tFor the three months ended December 31 2019\t\t\t\t\t\t\n\tDigital Real Estate Services\tSubscription Video Services\tDow Jones\tBook Publishing\tNews Media\tOther\tTotal Revenues\n\t(in millions)\t\t\t\t\t\t\nRevenues:\t\t\t\t\t\t\t\nCirculation and subscription\t9\t439\t296\t0\t245\t1\t990\nAdvertising\t25\t53\t120\t0\t479\t0\t677\nConsumer\t0\t0\t0\t421\t0\t0\t421\nReal estate\t242\t0\t0\t0\t0\t0\t242\nOther\t18\t9\t14\t21\t87\t0\t149\nTotal Revenues\t294\t501\t430\t442\t811\t1\t2479\n", "q10k_tbl_9": "\tFor the six months ended December 31 2020\t\t\t\t\t\t\n\tDigital Real Estate Services\tSubscription Video Services\tDow Jones\tBook Publishing\tNews Media\tOther\tTotal Revenues\n\t(in millions)\t\t\t\t\t\t\nRevenues:\t\t\t\t\t\t\t\nCirculation and subscription\t16\t883\t630\t0\t503\t0\t2032\nAdvertising\t58\t105\t185\t0\t432\t0\t780\nConsumer\t0\t0\t0\t964\t0\t0\t964\nReal estate\t516\t0\t0\t0\t0\t0\t516\nOther\t39\t19\t17\t38\t125\t1\t239\nTotal Revenues\t629\t1007\t832\t1002\t1060\t1\t4531\n", "q10k_tbl_10": "\tFor the six months ended December 31 2019\t\t\t\t\t\t\n\tDigital Real Estate Services\tSubscription Video Services\tDow Jones\tBook Publishing\tNews Media\tOther\tTotal Revenues\n\t(in millions)\t\t\t\t\t\t\nRevenues:\t\t\t\t\t\t\t\nCirculation and subscription\t19\t890\t585\t0\t490\t1\t1985\nAdvertising\t52\t104\t204\t0\t925\t0\t1285\nConsumer\t0\t0\t0\t808\t0\t0\t808\nReal estate\t460\t0\t0\t0\t0\t0\t460\nOther\t35\t21\t23\t39\t163\t0\t281\nTotal Revenues\t566\t1015\t812\t847\t1578\t1\t4819\n", "q10k_tbl_11": "\tFor the three months ended December 31\t\tFor the six months ended December 31\t\n\t2020\t2019\t2020\t2019\n\t(in millions)\t\t\t\nBalance beginning of period\t409\t448\t398\t428\nDeferral of revenue\t755\t754\t1462\t1575\nRecognition of deferred revenue(a)\t(779)\t(797)\t(1480)\t(1591)\nOther\t15\t6\t20\t(1)\nBalance end of period\t400\t411\t400\t411\n", "q10k_tbl_12": "\tFor the three months ended December 31\t\t\t\t\t\n\t2020\t\t2019\t\t\t\n\tOne time employee termination benefits\tOther costs\tTotal\tOne time employee termination benefits\tFacility related costs\tOther costs\t\t\t\tTotal\t\t\n\t(in millions)\t\t\t\t\t\nBalance beginning of period\t34\t30\t64\t22\t0\t10\t\t\t\t32\t\t\nAdditions\t16\t7\t23\t10\t0\t0\t\t\t\t10\t\t\nPayments\t(21)\t(3)\t(24)\t(17)\t0\t(1)\t\t\t\t(18)\t\t\nOther\t3\t0\t3\t1\t0\t0\t\t\t\t1\t\t\nBalance end of period\t32\t34\t66\t16\t0\t9\t\t\t\t25\t\t\n", "q10k_tbl_13": "\tFor the six months ended December 31\t\t\t\t\t\n\t2020\t\t2019\t\t\t\n\tOne time employee termination benefits\tOther costs\tTotal\tOne time employee termination benefits\tFacility related costs\tOther costs\t\t\t\tTotal\t\t\n\t(in millions)\t\t\t\t\t\nBalance beginning of period\t64\t9\t73\t28\t2\t10\t\t\t\t40\t\t\nAdditions\t35\t28\t63\t34\t0\t0\t\t\t\t34\t\t\nPayments\t(69)\t(3)\t(72)\t(46)\t0\t(1)\t\t\t\t(47)\t\t\nOther\t2\t0\t2\t0\t(2)\t0\t\t\t\t(2)\t\t\nBalance end of period\t32\t34\t66\t16\t0\t9\t\t\t\t25\t\t\n", "q10k_tbl_14": "\tOwnership Percentage as of December 31 2020\tAs of December 31 2020\tAs of June 30 2020\n\t\t(in millions)\t\nEquity method investments(a)\tvarious\t116\t120\nEquity securities(b)\tvarious\t237\t177\nTotal Investments\t\t353\t297\n", "q10k_tbl_15": "\tFor the three months ended December 31\t\tFor the six months ended December 31\t\n\t2020\t2019\t2020\t2019\n\t(in millions)\t\t(in millions)\t\nTotal gains (losses) recognized on equity securities\t33\t(6)\t42\t(5)\nLess: Net gains recognized on equity securities sold\t0\t0\t0\t0\nUnrealized gains (losses) recognized on equity securities held at end of period\t33\t(6)\t42\t(5)\n", "q10k_tbl_16": "\tInterest rate at December 31 2020\tMaturity at December 31 2020\tAs of December 31 2020\tAs of June 30 2020\n\t\t\t(in millions)\t\nFoxtel Group\t\t\t\t\nCredit facility 2019(a) (c)\t3.12%\tNov 22 2022\t304\t371\nTerm loan facility 2019(b)\t6.25%\tNov 22 2024\t190\t171\nWorking capital facility 2017(a) (c)\t3.12%\tNov 22 2022\t0\t0\nTelstra Facility(d)\t7.89%\tDec 22 2027\t37\t11\nUS private placement 2012 - USD portion - tranche 2(e)\t4.27%\tJul 25 2022\t198\t200\nUS private placement 2012 - USD portion - tranche 3(e)\t4.42%\tJul 25 2024\t149\t150\nUS private placement 2012 - AUD portion\t7.04%\tJul 25 2022\t80\t73\nREA Group\t\t\t\t\nCredit facility 2018(f)\t0.92%\tApr 27 2021\t53\t48\nCredit facility 2019(g)\t0.92%\tDec 2 2021\t129\t117\nCredit facility 2020(h)\t2.07%\tDec 2 2021\t0\t0\nFinance lease and other liabilities\t\t\t116\t118\nTotal borrowings(i)\t\t\t1256\t1259\nLess: current portion(j)\t\t\t(212)\t(76)\nLong-term borrowings\t\t\t1044\t1183\n", "q10k_tbl_17": "\tFor the three months ended December 31 2020\t\t\t\t\t\t\t\t\t\n\tClass A Common Stock\t\tClass B Common Stock\t\tAdditional Paid-in Capital\tAccumulated Deficit\tAccumulated Other Comprehensive Loss\tTotal News Corp Equity\tNon-controlling Interests\tTotal Equity\n\tShares\tAmount\tShares\tAmount\t\t\t\n\t(in millions)\t\t\t\t\t\t\t\t\t\nBalance September 30 2020\t391\t4\t200\t2\t12075\t(3207)\t(1235)\t7639\t815\t8454\nNet income\t0\t0\t0\t0\t0\t231\t0\t231\t30\t261\nOther comprehensive income\t0\t0\t0\t0\t0\t0\t245\t245\t63\t308\nDividends\t0\t0\t0\t0\t0\t0\t0\t0\t(1)\t(1)\nOther\t0\t0\t0\t0\t16\t0\t0\t16\t36\t52\nBalance December 31 2020\t391\t4\t200\t2\t12091\t(2976)\t(990)\t8131\t943\t9074\n", "q10k_tbl_18": "\tFor the three months ended December 31 2019\t\t\t\t\t\t\t\t\t\n\tClass A Common Stock\t\tClass B Common Stock\t\tAdditional Paid-in Capital\tAccumulated Deficit\tAccumulated Other Comprehensive Loss\tTotal News Corp Equity\tNon-controlling Interests\tTotal Equity\n\tShares\tAmount\tShares\tAmount\t\t\t\n\t(in millions)\t\t\t\t\t\t\t\t\t\nBalance September 30 2019\t388\t4\t200\t2\t12174\t(2200)\t(1266)\t8714\t1115\t9829\nNet income\t0\t0\t0\t0\t0\t85\t0\t85\t18\t103\nOther comprehensive income\t0\t0\t0\t0\t0\t0\t150\t150\t36\t186\nOther\t1\t0\t0\t0\t9\t1\t(1)\t9\t0\t9\nBalance December 31 2019\t389\t4\t200\t2\t12183\t(2114)\t(1117)\t8958\t1169\t10127\n", "q10k_tbl_19": "\tFor the six months ended December 31 2020\t\t\t\t\t\t\t\t\t\n\tClass A Common Stock\t\tClass B Common Stock\t\tAdditional Paid-in Capital\tAccumulated Deficit\tAccumulated Other Comprehensive Loss\tTotal News Corp Equity\tNon-controlling Interests\tTotal Equity\n\tShares\tAmount\tShares\tAmount\t\t\t\n\t(in millions)\t\t\t\t\t\t\t\t\t\nBalance June 30 2020\t389\t4\t200\t2\t12148\t(3241)\t(1331)\t7582\t807\t8389\nNet income\t0\t0\t0\t0\t0\t265\t0\t265\t43\t308\nOther comprehensive income\t0\t0\t0\t0\t0\t0\t341\t341\t80\t421\nDividends\t0\t0\t0\t0\t(59)\t0\t0\t(59)\t(21)\t(80)\nOther\t2\t0\t0\t0\t2\t0\t0\t2\t34\t36\nBalance December 31 2020\t391\t4\t200\t2\t12091\t(2976)\t(990)\t8131\t943\t9074\n", "q10k_tbl_20": "\tFor the six months ended December 31 2019\t\t\t\t\t\t\t\t\t\n\tClass A Common Stock\t\tClass B Common Stock\t\tAdditional Paid-in Capital\tAccumulated Deficit\tAccumulated Other Comprehensive Loss\tTotal News Corp Equity\tNon-controlling Interests\tTotal Equity\n\tShares\tAmount\tShares\tAmount\t\t\t\n\t(in millions)\t\t\t\t\t\t\t\t\t\nBalance June 30 2019\t386\t4\t200\t2\t12243\t(1979)\t(1126)\t9144\t1167\t10311\nCumulative impact from adoption of new standards\t0\t0\t0\t0\t0\t6\t3\t9\t0\t9\nNet (loss) income\t0\t0\t0\t0\t0\t(142)\t0\t(142)\t34\t(108)\nOther comprehensive income (loss)\t0\t0\t0\t0\t0\t0\t7\t7\t(9)\t(2)\nDividends\t0\t0\t0\t0\t(59)\t0\t0\t(59)\t(22)\t(81)\nOther\t3\t0\t0\t0\t(1)\t1\t(1)\t(1)\t(1)\t(2)\nBalance December 31 2019\t389\t4\t200\t2\t12183\t(2114)\t(1117)\t8958\t1169\t10127\n", "q10k_tbl_21": "\tAs of December 31 2020\t\t\t\tAs of June 30 2020\t\t\t\n\tLevel 1\tLevel 2\tLevel 3\tTotal\tLevel 1\tLevel 2\tLevel 3\tTotal\n\t(in millions)\t\t\t\t\t\t\t\nAssets:\t\t\t\t\t\t\t\t\nCross-currency interest rate derivatives - fair value hedges\t0\t17\t0\t17\t0\t24\t0\t24\nCross-currency interest rate derivatives - cash flow hedges\t0\t0\t0\t0\t0\t98\t0\t98\nCross-currency interest rate derivatives (a)\t0\t69\t0\t69\t0\t0\t0\t0\nEquity securities(b)\t120\t0\t117\t237\t54\t0\t123\t177\nTotal assets\t120\t86\t117\t323\t54\t122\t123\t299\nLiabilities:\t\t\t\t\t\t\t\t\nForeign currency derivatives - cash flow hedges\t0\t3\t0\t3\t0\t3\t0\t3\nInterest rate derivatives - cash flow hedges\t0\t14\t0\t14\t0\t16\t0\t16\nCross-currency interest rate derivatives - cash flow hedges\t0\t0\t0\t0\t0\t18\t0\t18\nCross-currency interest rate derivatives (a)\t0\t18\t0\t18\t0\t0\t0\t0\nTotal liabilities\t0\t35\t0\t35\t0\t37\t0\t37\n", "q10k_tbl_22": "\tFor the six months ended December 31\t\n\t2020\t2019\n\t(in millions)\t\nBalance - beginning of period\t123\t113\nAdditions\t6\t1\nMeasurement adjustments\t21\t(3)\nForeign exchange and other(a)\t(33)\t(2)\nBalance - end of period\t117\t109\n", "q10k_tbl_23": "\tBalance Sheet Location\tAs of December 31 2020\tAs of June 30 2020\n\t\t(in millions)\t\nCross-currency interest rate derivatives - fair value hedges\tOther non-current assets\t17\t24\nCross-currency interest rate derivatives - cash flow hedges\tOther non-current assets\t0\t98\nCross-currency interest rate derivatives (a)\tOther non-current assets\t69\t0\nForeign currency derivatives - cash flow hedges\tOther current liabilities\t(3)\t(3)\nInterest rate derivatives - cash flow hedges\tOther non-current liabilities\t(14)\t(16)\nCross-currency interest rate derivatives - cash flow hedges\tOther non-current liabilities\t0\t(18)\nCross-currency interest rate derivatives (a)\tOther non-current liabilities\t(18)\t0\n", "q10k_tbl_24": "\tGain (loss) recognized in Accumulated Other Comprehensive Loss for the three months ended December 31\t\t(Gain) loss reclassified from Accumulated Other Comprehensive Loss for the three months ended December 31\t\tIncome statement location\n\t2020\t2019\t2020\t2019\t\n\t(in millions)\t\t\t\t\nForeign currency derivatives - cash flow hedges\t0\t(1)\t(1)\t0\tOperating expenses\nCross-currency interest rate derivatives\t0\t(13)\t0\t12\tInterest expense net\nInterest rate derivatives - cash flow hedges\t(1)\t1\t2\t1\tInterest expense net\nTotal\t(1)\t(13)\t1\t13\t\n", "q10k_tbl_25": "\tGain (loss) recognized in Accumulated Other Comprehensive Loss for the six months ended December 31\t\t(Gain) loss reclassified from Accumulated Other Comprehensive Loss for the six months ended December 31\t\tIncome statement location\n\t2020\t2019\t2020\t2019\t\n\t(in millions)\t\t\t\t\nForeign currency derivatives - cash flow hedges\t0\t(2)\t(1)\t(2)\tOperating expenses\nCross-currency interest rate derivatives\t(15)\t(8)\t13\t3\tInterest expense net\nInterest rate derivatives - cash flow hedges\t(1)\t(3)\t3\t(5)\tInterest expense net\nTotal\t(16)\t(13)\t15\t(4)\t\n", "q10k_tbl_26": "\tFor the three months ended December 31\t\tFor the six months ended December 31\t\n\t2020\t2019\t2020\t2019\n\t(in millions except per share amounts)\t\t\t\nNet income (loss)\t261\t103\t308\t(108)\nLess: Net income attributable to noncontrolling interests\t(30)\t(18)\t(43)\t(34)\nNet income (loss) attributable to News Corporation stockholders\t231\t85\t265\t(142)\nWeighted-average number of shares of common stock outstanding - basic\t590.7\t588.2\t590.1\t587.4\nDilutive effect of equity awards(a)\t1.9\t2.1\t1.6\t0\nWeighted-average number of shares of common stock outstanding - diluted\t592.6\t590.3\t591.7\t587.4\nNet income (loss) attributable to News Corporation stockholders per share - basic\t0.39\t0.15\t0.45\t(0.24)\nNet income (loss) attributable to News Corporation stockholders per share - diluted\t0.39\t0.14\t0.45\t(0.24)\n", "q10k_tbl_27": "\tAs of December 31 2020\t\t\t\t\n\tPayments Due by Period\t\t\t\t\n\tTotal\tLess than 1 year\t1-3 years\t3-5 years\tMore than 5 years\n\t(in millions)\t\t\t\t\nSports programming rights\t2258\t223\t896\t737\t402\n", "q10k_tbl_28": "\tFor the three months ended December 31\t\tFor the six months ended December 31\t\n\t2020\t2019\t2020\t2019\n\t(in millions)\t\t\t\nRevenues:\t\t\t\t\nDigital Real Estate Services\t339\t294\t629\t566\nSubscription Video Services\t511\t501\t1007\t1015\nDow Jones\t446\t430\t832\t812\nBook Publishing\t544\t442\t1002\t847\nNews Media\t573\t811\t1060\t1578\nOther\t1\t1\t1\t1\nTotal revenues\t2414\t2479\t4531\t4819\nSegment EBITDA:\t\t\t\t\nDigital Real Estate Services\t142\t118\t261\t200\nSubscription Video Services\t124\t70\t202\t151\nDow Jones\t109\t76\t181\t125\nBook Publishing\t104\t63\t175\t112\nNews Media\t66\t66\t44\t73\nOther\t(48)\t(38)\t(98)\t(85)\nDepreciation and amortization\t(167)\t(162)\t(331)\t(324)\nImpairment and restructuring charges\t(23)\t(29)\t(63)\t(326)\nEquity losses of affiliates\t(3)\t(3)\t(4)\t(5)\nInterest expense net\t(12)\t(8)\t(20)\t(4)\nOther net\t54\t2\t71\t6\nIncome (loss) before income tax expense\t346\t155\t418\t(77)\nIncome tax expense\t(85)\t(52)\t(110)\t(31)\nNet income (loss)\t261\t103\t308\t(108)\n", "q10k_tbl_29": "\tAs of December 31 2020\tAs of June 30 2020\n\t(in millions)\t\nTotal assets:\t\t\nDigital Real Estate Services\t2617\t2322\nSubscription Video Services\t3604\t3459\nDow Jones\t2475\t2480\nBook Publishing\t2422\t2212\nNews Media\t2210\t1994\nOther(a)\t1413\t1497\nInvestments\t353\t297\nTotal assets\t15094\t14261\n", "q10k_tbl_30": "\tAs of December 31 2020\tAs of June 30 2020\n\t(in millions)\t\nGoodwill and intangible assets net:\t\t\nDigital Real Estate Services\t1779\t1555\nSubscription Video Services\t1645\t1513\nDow Jones\t1716\t1722\nBook Publishing\t781\t748\nNews Media\t305\t277\nTotal Goodwill and intangible assets net\t6226\t5815\n", "q10k_tbl_31": "\tAs of December 31 2020\tAs of June 30 2020\n\t(in millions)\t\nReceivables\t1526\t1276\nLess: allowances\t(82)\t(73)\nReceivables net\t1444\t1203\n", "q10k_tbl_32": "\tAs of December 31 2020\tAs of June 30 2020\n\t(in millions)\t\nRoyalty advances to authors\t354\t348\nRetirement benefit assets\t121\t94\nInventory(a)\t285\t133\nNews America Marketing deferred consideration\t120\t111\nOther\t313\t353\nTotal Other non-current assets\t1193\t1039\n", "q10k_tbl_33": "\tAs of December 31 2020\tAs of June 30 2020\n\t(in millions)\t\nRoyalties and commissions payable\t208\t169\nCurrent operating lease liabilities\t131\t131\nAllowance for sales returns\t201\t174\nCurrent tax payable\t18\t50\nOther\t306\t314\nTotal Other current liabilities\t864\t838\n", "q10k_tbl_34": "\tFor the three months ended December 31\t\tFor the six months ended December 31\t\n\t2020\t2019\t2020\t2019\n\t(in millions)\t\t\t\nRemeasurement of equity securities\t37\t(6)\t46\t(5)\nDividends received from equity security investments\t1\t0\t3\t1\nGain on remeasurement of previously-held interest in Elara (Note 3)\t7\t0\t7\t0\nOther\t9\t8\t15\t10\nTotal Other net\t54\t2\t71\t6\n", "q10k_tbl_35": "\tFor the three months ended December 31\t\t\t\tFor the six months ended December 31\t\t\t\n\t2020\t2019\tChange\t% Change\t2020\t2019\tChange\t% Change\n(in millions except %)\t\t\tBetter/(Worse)\t\t\t\tBetter/(Worse)\t\nRevenues:\t\t\t\t\t\t\t\t\nCirculation and subscription\t1030\t990\t40\t4%\t2032\t1985\t47\t2%\nAdvertising\t448\t677\t(229)\t(34)%\t780\t1285\t(505)\t(39)%\nConsumer\t523\t421\t102\t24%\t964\t808\t156\t19%\nReal estate\t281\t242\t39\t16%\t516\t460\t56\t12%\nOther\t132\t149\t(17)\t(11)%\t239\t281\t(42)\t(15)%\nTotal Revenues\t2414\t2479\t(65)\t(3)%\t4531\t4819\t(288)\t(6)%\nOperating expenses\t(1198)\t(1351)\t153\t11%\t(2362)\t(2689)\t327\t12%\nSelling general and administrative\t(719)\t(773)\t54\t7%\t(1404)\t(1554)\t150\t10%\nDepreciation and amortization\t(167)\t(162)\t(5)\t(3)%\t(331)\t(324)\t(7)\t(2)%\nImpairment and restructuring charges\t(23)\t(29)\t6\t21%\t(63)\t(326)\t263\t81%\nEquity losses of affiliates\t(3)\t(3)\t0\t-%\t(4)\t(5)\t1\t20%\nInterest expense net\t(12)\t(8)\t(4)\t(50)%\t(20)\t(4)\t(16)\t**\nOther net\t54\t2\t52\t**\t71\t6\t65\t**\nIncome (loss) before income tax expense\t346\t155\t191\t**\t418\t(77)\t495\t**\nIncome tax expense\t(85)\t(52)\t(33)\t(63)%\t(110)\t(31)\t(79)\t**\nNet income (loss)\t261\t103\t158\t**\t308\t(108)\t416\t**\nLess: Net income attributable to noncontrolling interests\t(30)\t(18)\t(12)\t(67)%\t(43)\t(34)\t(9)\t(26)%\nNet income (loss) attributable to News Corporation stockholders\t231\t85\t146\t**\t265\t(142)\t407\t**\n", "q10k_tbl_36": "\tFor the three months ended December 31\t\tFor the six months ended December 31\t\n\t2020\t2019\t2020\t2019\n(in millions)\t\t\t\t\nNet income (loss)\t261\t103\t308\t(108)\nAdd:\t\t\t\t\nIncome tax expense\t85\t52\t110\t31\nOther net\t(54)\t(2)\t(71)\t(6)\nInterest expense net\t12\t8\t20\t4\nEquity losses of affiliates\t3\t3\t4\t5\nImpairment and restructuring charges\t23\t29\t63\t326\nDepreciation and amortization\t167\t162\t331\t324\nTotal Segment EBITDA\t497\t355\t765\t576\n", "q10k_tbl_37": "\tFor the three months ended December 31\t\t\t\n\t2020\t\t2019\t\n(in millions)\tRevenues\tSegment EBITDA\tRevenues\tSegment EBITDA\nDigital Real Estate Services\t339\t142\t294\t118\nSubscription Video Services\t511\t124\t501\t70\nDow Jones\t446\t109\t430\t76\nBook Publishing\t544\t104\t442\t63\nNews Media\t573\t66\t811\t66\nOther\t1\t(48)\t1\t(38)\nTotal\t2414\t497\t2479\t355\n", "q10k_tbl_38": "\tFor the six months ended December 31\t\t\t\n\t2020\t\t2019\t\n(in millions)\tRevenues\tSegment EBITDA\tRevenues\tSegment EBITDA\nDigital Real Estate Services\t629\t261\t566\t200\nSubscription Video Services\t1007\t202\t1015\t151\nDow Jones\t832\t181\t812\t125\nBook Publishing\t1002\t175\t847\t112\nNews Media\t1060\t44\t1578\t73\nOther\t1\t(98)\t1\t(85)\nTotal\t4531\t765\t4819\t576\n", "q10k_tbl_39": "\tFor the three months ended December 31\t\t\t\tFor the six months ended December 31\t\t\t\n\t2020\t2019\tChange\t% Change\t2020\t2019\tChange\t% Change\n(in millions except %)\t\t\tBetter/(Worse)\t\t\t\tBetter/(Worse)\t\nRevenues:\t\t\t\t\t\t\t\t\nCirculation and subscription\t8\t9\t(1)\t(11)%\t16\t19\t(3)\t(16)%\nAdvertising\t30\t25\t5\t20%\t58\t52\t6\t12%\nReal estate\t281\t242\t39\t16%\t516\t460\t56\t12%\nOther\t20\t18\t2\t11%\t39\t35\t4\t11%\nTotal Revenues\t339\t294\t45\t15%\t629\t566\t63\t11%\nOperating expenses\t(45)\t(42)\t(3)\t(7)%\t(88)\t(87)\t(1)\t(1)%\nSelling general and administrative\t(152)\t(134)\t(18)\t(13)%\t(280)\t(279)\t(1)\t-%\nSegment EBITDA\t142\t118\t24\t20%\t261\t200\t61\t31%\n", "q10k_tbl_40": "\tFor the three months ended December 31\t\t\t\tFor the six months ended December 31\t\t\t\n\t2020\t2019\tChange\t% Change\t2020\t2019\tChange\t% Change\n(in millions except %)\t\t\tBetter/(Worse)\t\t\t\tBetter/(Worse)\t\nRevenues:\t\t\t\t\t\t\t\t\nCirculation and subscription\t446\t439\t7\t2%\t883\t890\t(7)\t(1)%\nAdvertising\t55\t53\t2\t4%\t105\t104\t1\t1%\nOther\t10\t9\t1\t11%\t19\t21\t(2)\t(10)%\nTotal Revenues\t511\t501\t10\t2%\t1007\t1015\t(8)\t(1)%\nOperating expenses\t(305)\t(341)\t36\t11%\t(638)\t(685)\t47\t7%\nSelling general and administrative\t(82)\t(90)\t8\t9%\t(167)\t(179)\t12\t7%\nSegment EBITDA\t124\t70\t54\t77%\t202\t151\t51\t34%\n", "q10k_tbl_41": "\tAs of December 31\t\n\t2020\t2019\n\t(in 000's)\t\nBroadcast Subscribers\t\t\nResidential(a)\t1783\t2002\nCommercial(b)\t218\t266\nOTT Subscribers (Total (Paid))\t\t\nFoxtel Now(c)\t265 (258 paid)\t343 (334 paid)\nKayo(d)\t648 (624 paid)\t372 (350 paid)\nBinge(e)\t468 (431 paid)\t0\nTotal Paid Subscribers\t3314\t2952\n", "q10k_tbl_42": "\tFor the three months ended December 31\t\tFor the six months ended December 31\t\n\t2020\t2019\t2020\t2019\nBroadcast ARPU(f)\tA$80 (US$58)\tA$77 (US$53)\tA$79 (US$57)\tA$78 (US$53)\nBroadcast Subscriber Churn(g)\t17.5%\t16.0%\t16.0%\t15.2%\n", "q10k_tbl_43": "\tFor the three months ended December 31\t\t\t\tFor the six months ended December 31\t\t\t\n\t2020\t2019\tChange\t% Change\t2020\t2019\tChange\t% Change\n(in millions except %)\t\t\tBetter/(Worse)\t\t\t\tBetter/(Worse)\t\nRevenues:\t\t\t\t\t\t\t\t\nCirculation and subscription\t319\t296\t23\t8%\t630\t585\t45\t8%\nAdvertising\t115\t120\t(5)\t(4)%\t185\t204\t(19)\t(9)%\nOther\t12\t14\t(2)\t(14)%\t17\t23\t(6)\t(26)%\nTotal Revenues\t446\t430\t16\t4%\t832\t812\t20\t2%\nOperating expenses\t(199)\t(196)\t(3)\t(2)%\t(384)\t(383)\t(1)\t-%\nSelling general and administrative\t(138)\t(158)\t20\t13%\t(267)\t(304)\t37\t12%\nSegment EBITDA\t109\t76\t33\t43%\t181\t125\t56\t45%\n", "q10k_tbl_44": "\tFor the three months ended December 31\t\t\t\tFor the six months ended December 31\t\t\t\n\t2020\t2019\tChange\t% Change\t2020\t2019\tChange\t% Change\n(in millions except %)\t\t\tBetter/(Worse)\t\t\t\tBetter/(Worse)\t\nCirculation and subscription revenues:\t\t\t\t\t\t\t\t\nCirculation and other\t202\t183\t19\t10%\t400\t361\t39\t11%\nProfessional information business\t117\t113\t4\t4%\t230\t224\t6\t3%\nTotal circulation and subscription revenues\t319\t296\t23\t8%\t630\t585\t45\t8%\n", "q10k_tbl_45": "\tFor the three months ended December 31\t\t\t\n\t2020\t2019\tChange\t% Change\n(in thousands except %)\t\t\tBetter/(Worse)\t\nThe Wall Street Journal\t\t\t\t\nDigital-only subscriptions(c)\t2462\t1929\t533\t28%\nTotal subscriptions\t3224\t2701\t523\t19%\nBarron's\t\t\t\t\nDigital-only subscriptions(c)\t476\t355\t121\t34%\nTotal subscriptions\t683\t615\t68\t11%\nTotal Consumer(d)\t\t\t\t\nDigital-only subscriptions(c)\t3061\t2371\t690\t29%\nTotal subscriptions\t4033\t3409\t624\t18%\n", "q10k_tbl_46": "\tFor the three months ended December 31\t\t\t\tFor the six months ended December 31\t\t\t\n\t2020\t2019\tChange\t% Change\t2020\t2019\tChange\t% Change\n(in millions except %)\t\t\tBetter/(Worse)\t\t\t\tBetter/(Worse)\t\nRevenues:\t\t\t\t\t\t\t\t\nConsumer\t523\t421\t102\t24%\t964\t808\t156\t19%\nOther\t21\t21\t0\t-%\t38\t39\t(1)\t(3)%\nTotal Revenues\t544\t442\t102\t23%\t1002\t847\t155\t18%\nOperating expenses\t(347)\t(297)\t(50)\t(17)%\t(651)\t(576)\t(75)\t(13)%\nSelling general and administrative\t(93)\t(82)\t(11)\t(13)%\t(176)\t(159)\t(17)\t(11)%\nSegment EBITDA\t104\t63\t41\t65%\t175\t112\t63\t56%\n", "q10k_tbl_47": "\tFor the three months ended December 31\t\t\t\tFor the six months ended December 31\t\t\t\n\t2020\t2019\tChange\t% Change\t2020\t2019\tChange\t% Change\n(in millions except %)\t\t\tBetter/(Worse)\t\t\t\tBetter/(Worse)\t\nRevenues:\t\t\t\t\t\t\t\t\nCirculation and subscription\t257\t245\t12\t5%\t503\t490\t13\t3%\nAdvertising\t248\t479\t(231)\t(48)%\t432\t925\t(493)\t(53)%\nOther\t68\t87\t(19)\t(22)%\t125\t163\t(38)\t(23)%\nTotal Revenues\t573\t811\t(238)\t(29)%\t1060\t1578\t(518)\t(33)%\nOperating expenses\t(302)\t(475)\t173\t36%\t(601)\t(958)\t357\t37%\nSelling general and administrative\t(205)\t(270)\t65\t24%\t(415)\t(547)\t132\t24%\nSegment EBITDA\t66\t66\t0\t-%\t44\t73\t(29)\t(40)%\n", "q10k_tbl_48": "\tFor the six months ended December 31\t\n\t2020\t2019\n\t(in millions)\t\nNet cash provided by operating activities\t483\t192\nLess: Capital expenditures\t(173)\t(237)\n\t310\t(45)\nLess: REA Group free cash flow\t(65)\t(86)\nPlus: Cash dividends received from REA Group\t32\t35\nFree cash flow available to News Corporation\t277\t(96)\n", "q10k_tbl_49": "\tAs of December 31 2020\t\t\t\t\n\tPayments Due by Period\t\t\t\t\n\tTotal\tLess than 1 year\t1-3 years\t3-5 years\tMore than 5 years\n\t(in millions)\t\t\t\t\nSports programming rights\t2258\t223\t896\t737\t402\n", "q10k_tbl_50": "31.1\tChief Executive Officer Certification required by Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934 as amended.*\n31.2\tChief Financial Officer Certification required by Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934 as amended.*\n32.1\tCertification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002.**\n101\tThe following financial information from the Company's Quarterly Report on Form 10-Q for the quarter ended December 31 2020 formatted in Inline XBRL: (i) Consolidated Statements of Operations for the three and six months ended December 31 2020 and 2019 (unaudited); (ii) Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended December 31 2020 and 2019 (unaudited); (iii) Consolidated Balance Sheets as of December 31 2020 (unaudited) and June 30 2020 (audited); (iv) Consolidated Statements of Cash Flows for the six months ended December 31 2020 and 2019 (unaudited); and (v) Notes to the Unaudited Consolidated Financial Statements.*\n104\tThe cover page from News Corporation's Quarterly Report on Form 10-Q for the quarter ended December 31 2020 formatted in Inline XBRL (included as Exhibit 101).*\n"}{"bs": "q10k_tbl_5", "is": "q10k_tbl_3", "cf": "q10k_tbl_6"}None
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2020
or
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 001-35769
_________________________________________
NEWS CORPORATION
(Exact name of registrant as specified in its charter)
_________________________________________
Delaware
46-2950970
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
1211 Avenue of the Americas, New York, New York
10036
(Address of principal executive offices)
(Zip Code)
(212) 416-3400
(Registrant’s telephone number, including area code)
_________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Class A Common Stock, par value $0.01 per share
NWSA
The Nasdaq Global Select Market
Class B Common Stock, par value $0.01 per share
NWS
The Nasdaq Global Select Market
Class A Preferred Stock Purchase Rights
N/A
The Nasdaq Global Select Market
Class B Preferred Stock Purchase Rights
N/A
The Nasdaq Global Select Market
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule12b-2 of the Exchange Act). Yes ☐ No ☒
As of January 29, 2021, 391,092,888 shares of Class A Common Stock and 199,630,240 shares of Class B Common Stock were outstanding.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited; millions)
For the three months ended December 31,
For the six months ended December 31,
2020
2019
2020
2019
Net income (loss)
$
261
$
103
$
308
$
(108)
Other comprehensive income (loss):
Foreign currency translation adjustments
315
199
422
14
Net change in the fair value of cash flow hedges(a)
—
—
(2)
(14)
Benefit plan adjustments, net(b)
(7)
(13)
1
(2)
Other comprehensive income (loss)
308
186
421
(2)
Comprehensive income (loss)
569
289
729
(110)
Less: Net income attributable to noncontrolling interests
(30)
(18)
(43)
(34)
Less: Other comprehensive (income) loss attributable to noncontrolling interests
(63)
(36)
(80)
9
Comprehensive income (loss) attributable to News Corporation stockholders
$
476
$
235
$
606
$
(135)
(a)Net of income tax benefit of nil for the three months ended December 31, 2020 and 2019, respectively, and income tax benefit of nil and $3 million for the six months ended December 31, 2020 and 2019, respectively.
(b)Net of income tax benefit of $3 million and $4 million for three months ended December 31, 2020 and 2019, respectively, and income tax benefit of nil and $1 million for the six months ended December 31, 2020 and 2019, respectively.
The accompanying notes are an integral part of these unaudited consolidated financial statements.
(a) Class A common stock, $0.01 par value per share (“Class A Common Stock”), 1,500,000,000 shares authorized, 391,082,746 and 388,922,752 shares issued and outstanding, net of 27,368,413 treasury shares at par at December 31, 2020 and June 30, 2020, respectively.
(b) Class B common stock, $0.01 par value per share (“Class B Common Stock”), 750,000,000 shares authorized, 199,630,240 shares issued and outstanding, net of 78,430,424 treasury shares at par at December 31, 2020 and June 30, 2020, respectively.
The accompanying notes are an integral part of these unaudited consolidated financial statements.
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
News Corporation (together with its subsidiaries, “News Corporation,” “News Corp,” the “Company,” “we” or “us”) is a global diversified media and information services company comprised of businesses across a range of media, including: digital real estate services, subscription video services in Australia, news and information services and book publishing.
During the fourth quarter of fiscal 2020, in connection with the Company's sale of its News America Marketing reporting unit and its annual review of its reportable segments, the Company determined to disaggregate its Dow Jones operating segment as a separate reportable segment in accordance with Accounting Standard Codification (“ASC”) 280, “Segment Reporting.” Previously, the financial information for this operating segment was aggregated with the businesses within the News Media operating segment and, together, formed the News and Information Services reportable segment. Following the sale of its News America Marketing business in the fourth quarter of fiscal 2020 and in conjunction with the Company’s annual budgeting process, the Company determined that aggregation was no longer appropriate as certain of the remaining businesses no longer shared similar economic characteristics. As a result, the Company has revised its historical disclosures for the prior periods to reflect the new Dow Jones and News Media reportable segments.
Basis of Presentation
The accompanying unaudited consolidated financial statements of the Company, which are referred to herein as the “Consolidated Financial Statements,” have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments consisting only of normal recurring adjustments necessary for a fair presentation have been reflected in these Consolidated Financial Statements. Operating results for the interim period presented are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2021. The preparation of the Company’s Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts that are reported in the Consolidated Financial Statements and accompanying disclosures. The business and economic uncertainty resulting from the impacts of the ongoing novel coronavirus (“COVID-19”) pandemic has been considered in making those estimates and assumptions. Actual results could differ from those estimates.
Intercompany transactions and balances have been eliminated. Equity investments in which the Company exercises significant influence but does not exercise control and is not the primary beneficiary are accounted for using the equity method. Investments in which the Company is not able to exercise significant influence over the investee are measured at fair value, if the fair value is readily determinable. If an investment’s fair value is not readily determinable, the Company will measure the investment at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer.
The consolidated statements of operations are referred to herein as the “Statements of Operations.” The consolidated balance sheets are referred to herein as the “Balance Sheets.” The consolidated statements of cash flows are referred to herein as the “Statements of Cash Flows.”
The accompanying Consolidated Financial Statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2020 as filed with the Securities and Exchange Commission (the “SEC”) on August 11, 2020 (the “2020 Form 10-K”).
Certain reclassifications have been made to the prior period consolidated financial statements to conform to the current year presentation. Specifically, the Company reclassified certain costs at the Other segment that were previously included within Selling, general and administrative to Operating expenses. For the three and six months ended December 31, 2019, these reclassifications increased Operating expenses by $1 million and $2 million, respectively.
The Company’s fiscal year ends on the Sunday closest to June 30. Fiscal 2021 and fiscal 2020 include 52 weeks. All references to the three and six months ended December 31, 2020 and 2019 relate to the three and six months ended December 27, 2020 and December 29, 2019, respectively. For convenience purposes, the Company continues to date its Consolidated Financial Statements as of December 31.
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Recently Issued Accounting Pronouncements
Adopted
In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). The amendments in ASU 2016-13 require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The Company adopted the amendments in ASU 2016-13 on a modified retrospective basis as of July 1, 2020 and the adoption did not have a material effect on the Company's Consolidated Financial Statements. The Company will continue to actively monitor the impact of COVID-19 on expected credit losses.
Allowance for doubtful accounts is calculated by pooling receivables with similar credit risks such as the level of delinquency, types of products or services and geographical locations and reflects the Company’s expected credit losses based on historical experience as well as current and expected economic conditions. Refer to Note 13—Additional Financial Information for further discussion.
In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 removes, modifies and adds certain disclosure requirements in Topic 820, “Fair Value Measurement.” ASU 2018-13 eliminates certain disclosures related to transfers and the valuation process, modifies disclosures for investments that are valued based on net asset value, clarifies the measurement uncertainty disclosure, and requires additional disclosures for Level 3 fair value measurements. The Company adopted the amendments to disclosure requirements in ASU 2018-13 on a prospective basis as of July 1, 2020. The adoption did not have a material effect on the Company's Consolidated Financial Statements.
In March 2019, the FASB issued ASU 2019-02, “Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20) and Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350): Improvements to Accounting for Costs of Films and License Agreements for Program Materials (a consensus of the Emerging Issues Task Force)” (“ASU 2019-02”). The amendments in ASU 2019-02 align the impairment model in Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350) with the fair value model in Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20). The Company adopted the amendments in ASU 2019-02 on a prospective basis as of July 1, 2020. The adoption did not have a material effect on the Company's Consolidated Financial Statements. Refer to Note 13—Additional Financial Information for further discussion.
Issued
In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). The amendments in ASU 2019-12 remove certain exceptions to the general principles in Topic 740 and simplify other areas of Topic 740 including the accounting for and recognition of intraperiod tax allocation, deferred tax liabilities for outside basis differences for certain foreign subsidiaries, year-to-date losses in interim periods, deferred tax assets for goodwill in business combinations and franchise taxes in income tax expense. ASU 2019-12 is effective for the Company for annual and interim reporting periods beginning July 1, 2021, with early adoption permitted. The Company is currently evaluating the impact ASU 2019-12 will have on its Consolidated Financial Statements.