Segment Information

6 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

NOTE 13. SEGMENT INFORMATION

The Company manages and reports its businesses in the following five segments:

• News and Information Services—The News and Information Services segment includes the Company’s global print, digital and broadcast radio media platforms. These product offerings include the global print and digital versions of The Wall Street Journal and the Dow Jones Media Group, which includes Barron’s and MarketWatch, as well as the Company’s suite of professional information products, including Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, Dow Jones PEVC and DJX. The Company also owns, among other publications, The Australian, The Daily Telegraph, Herald Sun and The Courier-Mail in Australia, The Times, The Sunday Times, The Sun and The Sun on Sunday in the U.K. and the New York Post in the U.S. This segment also includes News America Marketing, a leading provider of home-delivered shopper media, in-store marketing products and services and digital marketing solutions, including Checkout 51’s mobile application, as well as Unruly, a leading global video advertising distribution platform, Wireless Group, operator of talkSPORT, the leading sports radio network in the U.K. and Storyful, a social media news agency.

• Book Publishing—The Book Publishing segment consists of HarperCollins, the second largest consumer book publisher in the world, with operations in 18 countries and particular strengths in general fiction, nonfiction, children’s and religious publishing. HarperCollins owns more than 120 branded publishing imprints, including Avon, Harper, HarperCollins Children’s Books, William Morrow, Harlequin and Christian publishers Zondervan and Thomas Nelson, and publishes works by well-known authors such as Harper Lee, Patricia Cornwell, Veronica Roth, Rick Warren, Sarah Young and Agatha Christie and popular titles such as The Hobbit, Goodnight Moon, To Kill a Mockingbird, Jesus Calling and the Divergent series.

• Digital Real Estate Services—The Digital Real Estate Services segment consists of the Company’s interests in REA Group, Move and DIAKRIT. REA Group is a publicly traded company listed on the Australian Securities Exchange (ASX: REA) that advertises property and property-related services on websites and mobile applications across Australia and Asia, including iProperty.com. REA Group operates Australia’s leading residential and commercial property websites, realestate.com.au and realcommercial.com.au. The Company holds a 61.6% interest in REA Group.

Move is a leading provider of online real estate services in the U.S. and primarily operates realtor.com^®, a premier real estate information and services marketplace. Move offers real estate advertising solutions to agents and brokers, including its Connection for Co-brokerage^SM and Advantage products. Move also offers a number of professional software and services products, including Top Producer^® and ListHub^TM. The Company owns an 80% interest in Move, with the remaining 20% being held by REA Group.

• Cable Network Programming—The Cable Network Programming segment primarily consists of FOX SPORTS Australia, the leading sports programming provider in Australia, with seven high definition television channels distributed via cable, satellite and IP, several interactive viewing applications and broadcast rights to live sporting events in Australia including: National Rugby League, the domestic football league, international cricket, Australian Rugby Union and various motorsports programming.

• Other—The Other segment consists primarily of general corporate overhead expenses, the corporate Strategy and Creative Group and costs related to the U.K. Newspaper Matters. The Company’s corporate Strategy and Creative Group was formed to identify new products and services across its businesses to increase revenues and profitability and to target and assess potential acquisitions, investments and dispositions.

Segment EBITDA is defined as revenues less operating expenses, and selling, general and administrative expenses. Segment EBITDA does not include: depreciation and amortization, impairment and restructuring charges, equity (losses) earnings of affiliates, interest, net, other, net, income tax benefit (expense) and net income attributable to noncontrolling interests. Segment EBITDA may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what items should be included in the calculation of Segment EBITDA.

Segment EBITDA is the primary measure used by the Company’s chief operating decision maker to evaluate the performance of and allocate resources within the Company’s businesses. Segment EBITDA provides management, investors and equity analysts with a measure to analyze the operating performance of each of the Company’s business segments and its enterprise value against historical data and competitors’ data, although historical results may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences).

Total Segment EBITDA is a non-GAAP measure and should be considered in addition to, not as a substitute for, net (loss) income, cash flow and other measures of financial performance reported in accordance with GAAP. In addition, this measure does not reflect cash available to fund requirements and excludes items, such as depreciation and amortization and impairment and restructuring charges, which are significant components in assessing the Company’s financial performance. The Company believes that information about Total Segment EBITDA allows users of its Consolidated Financial Statements to evaluate changes in the operating results of the Company separate from non-operational factors that affect net income, thus providing insight into both operations and the other factors that affect reported results. The following table reconciles Total Segment EBITDA to (Loss) Income from continuing operations.

	For the three months ended December 31,						For the six months ended December 31,
	2016			2015			2016			2015
	(in millions)
Revenues:
News and Information Services	$	1,303		$	1,400		$	2,525		$	2,690
Book Publishing		466			446			855			855
Digital Real Estate Services		242			208			468			399
Cable Network Programming		104			106			232			230
Other		1			1			1			1
Total Revenues		2,116			2,161			4,081			4,175
Segment EBITDA:
News and Information Services	$	142		$	158		$	188		$	241
Book Publishing		75			57			123			99
Digital Real Estate Services		95			73			162			130
Cable Network Programming		51			39			65			67
Other		(38	)		(47	)		(83	)		(92	)
Total Segment EBITDA		325			280			455			445
Depreciation and amortization		(120	)		(123	)		(240	)		(244	)
Impairment and restructuring charges		(356	)		(22	)		(376	)		(39	)
Equity (losses) earnings of affiliates		(238	)		15			(253	)		23
Interest, net		15			11			22			23
Other, net		123			(6	)		140			(1	)
(Loss) income from continuing operations before income tax benefit (expense)		(251	)		155			(252	)		207
Income tax benefit (expense)		32			(49	)		33			42
(Loss) income from continuing operations	$	(219	)	$	106		$	(219	)	$	249

	As of December 31, 2016		As of June 30, 2016
	(in millions)
Total assets:
News and Information Services	$	6,527	$	6,728
Book Publishing		1,870		1,855
Digital Real Estate Services		2,203		2,158
Cable Network Programming		1,093		1,101
Other(a)		902		1,371
Investments		1,932		2,270
Total assets	$	14,527	$	15,483

^(a) The Other segment primarily includes Cash and cash equivalents.

	As of December 31, 2016		As of June 30, 2016
	(in millions)
Goodwill and intangible assets, net:
News and Information Services	$	2,953	$	2,651
Book Publishing		825		869
Digital Real Estate Services		1,443		1,499
Cable Network Programming		864		898
Other		4		4
Total goodwill and intangible assets, net	$	6,089	$	5,921