10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)    

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2019

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)

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 Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

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

As of May 3, 2019, 385,531,724 shares of Class A Common Stock and 199,630,240 shares of Class B Common Stock were outstanding.

NEWS CORPORATION

FORM 10-Q

TABLE OF CONTENTS

Part I. Financial Information	Page
Item 1. Financial Statements
Consolidated Statements of Operations for the three and nine months ended March 31, 2019 and 2018 (unaudited)	2
Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended March 31, 2019 and 2018 (unaudited)	3
Consolidated Balance Sheets as of March  31, 2019 (unaudited) and June 30, 2018 (audited)	4
Consolidated Statements of Cash Flows for the nine months ended March  31, 2019 and 2018 (unaudited)	5
Notes to the Unaudited Consolidated Financial Statements	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	38
Item 3. Quantitative and Qualitative Disclosures About Market Risk	64
Item 4. Controls and Procedures	64
Part II. Other Information
Item 1. Legal Proceedings	65
Item 1A. Risk Factors	65
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	65
Item 3. Defaults Upon Senior Securities	65
Item 4. Mine Safety Disclosures	65
Item 5. Other Information	65
Item 6. Exhibits	66
Signature	67

PART I

ITEM 1. FINANCIAL STATEMENTS

NEWS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; millions, except per share amounts)

			For the three months ended						For the nine months ended
			March 31,						March 31,
	Notes		2019			2018			2019			2018
Revenues:
Circulation and subscription			$	1,025		$	659		$	3,088		$	1,947
Advertising				670			702			2,052			2,101
Consumer				403			381			1,281			1,220
Real estate				218			208			693			633
Other				141			143			494			430
Total Revenues		2		2,457			2,093			7,608			6,331
Operating expenses				(1,400	)		(1,151	)		(4,224	)		(3,439	)
Selling, general and administrative				(810	)		(761	)		(2,409	)		(2,135	)
Depreciation and amortization				(168	)		(100	)		(494	)		(297	)
Impairment and restructuring charges		4		(34	)		(246	)		(71	)		(273	)
Equity losses of affiliates		5		(4	)		(974	)		(13	)		(1,002	)
Interest (expense) income, net				(14	)		2			(45	)		9
Other, net		14		3			30			30			9
Income (loss) before income tax expense				30			(1,107	)		382			(797	)
Income tax expense		12		(7	)		(3	)		(112	)		(292	)
Net income (loss)				23			(1,110	)		270			(1,089	)
Less: Net income attributable to noncontrolling interests				(13	)		(18	)		(64	)		(54	)
Net income (loss) attributable to News Corporation stockholders			$	10		$	(1,128	)	$	206		$	(1,143	)
Basic and diluted earnings (loss) per share:		10
Net income (loss) available to News Corporation stockholders per share			$	0.02		$	(1.94	)	$	0.35		$	(1.96	)

The accompanying notes are an integral part of these unaudited consolidated financial statements.

2

NEWS CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited; millions)

	For the three months ended						For the nine months ended
	March 31,						March 31,
	2019			2018			2019			2018
Net income (loss)	$	23		$	(1,110	)	$	270		$	(1,089	)
Other comprehensive income (loss):
Foreign currency translation adjustments		75			10			(182	)		144
Net change in the fair value of cash flow hedges(a)		(5	)		—			2			—
Unrealized holding gains on securities, net(b)		—			—			—			5
Benefit plan adjustments, net(c)		(3	)		(9	)		10			(14	)
Share of other comprehensive income from equity affiliates, net(d)		—			—			—			1
Other comprehensive income (loss)		67			1			(170	)		136
Comprehensive income (loss)		90			(1,109	)		100			(953	)
Less: Net income attributable to noncontrolling interests		(13	)		(18	)		(64	)		(54	)
Less: Other comprehensive (income) loss attributable to noncontrolling interests		(10	)		2			46			(1	)
Comprehensive income (loss) attributable to News Corporation stockholders	$	67		$	(1,125	)	$	82		$	(1,008	)

^(a)  Net of income tax expense of nil and $1 million for the three and nine months ended March 31, 2019, respectively.

^(b)  Net of income tax expense of $1 million and $3 million for the three and nine months ended March 31, 2018, respectively.

^(c)  Net of income tax benefit of $1 million and $2 million for the three months ended March 31, 2019 and 2018, respectively, and income tax expense (benefit) of $2 million and ($4) million for the nine months ended March 31, 2019 and 2018, respectively.

^(d)  Net of income tax expense of nil for the three and nine months ended March 31, 2019 and 2018, respectively.

The accompanying notes are an integral part of these unaudited consolidated financial statements.

3

NEWS CORPORATION

CONSOLIDATED BALANCE SHEETS

(Millions, except share and per share amounts)

			As of			As of
	Notes		March 31, 2019			June 30, 2018
			(unaudited)			(audited)
Assets:
Current assets:
Cash and cash equivalents			$	1,648		$	2,034
Receivables, net		14		1,631			1,612
Inventory, net				404			376
Other current assets				564			372
Total current assets				4,247			4,394
Non-current assets:
Investments		5		347			393
Property, plant and equipment, net				2,557			2,560
Intangible assets, net				2,514			2,671
Goodwill				5,223			5,218
Deferred income tax assets		12		257			279
Other non-current assets		14		913			831
Total assets			$	16,058		$	16,346
Liabilities and Equity:
Current liabilities:
Accounts payable			$	432		$	605
Accrued expenses				1,364			1,340
Deferred revenue		2		460			516
Current borrowings		6		678			462
Other current liabilities		14		745			372
Total current liabilities				3,679			3,295
Non-current liabilities:
Borrowings		6		868			1,490
Retirement benefit obligations				237			245
Deferred income tax liabilities		12		321			389
Other non-current liabilities				495			430
Commitments and contingencies		11
Redeemable preferred stock		7		—			20
Class A common stock(a)				4			4
Class B common stock(b)				2			2
Additional paid-in capital				12,229			12,322
Accumulated deficit				(1,927	)		(2,163	)
Accumulated other comprehensive loss				(1,019	)		(874	)
Total News Corporation stockholders’ equity				9,289			9,291
Noncontrolling interests				1,169			1,186
Total equity		8		10,458			10,477
Total liabilities and equity			$	16,058		$	16,346

(a) Class A common stock, $0.01 par value per share (“Class A Common Stock”), 1,500,000,000 shares authorized, 385,444,822 and 383,385,353 shares issued and outstanding, net of 27,368,413 treasury shares at par at March 31, 2019 and June 30, 2018, 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 March 31, 2019 and June 30, 2018.

The accompanying notes are an integral part of these unaudited consolidated financial statements.

4

NEWS CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; millions)

			For the nine months ended
			March 31,
	Notes		2019			2018
Operating activities:
Net income (loss)			$	270		$	(1,089	)
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation and amortization				494			297
Equity losses of affiliates		5		13			1,002
Cash distributions received from affiliates				30			2
Impairment charges		4		9			225
Other, net		14		(30	)		(9	)
Deferred income taxes and taxes payable		12		22			182
Change in operating assets and liabilities, net of acquisitions:
Receivables and other assets				37			(86	)
Inventories, net				(74	)		(14	)
Accounts payable and other liabilities				(110	)		(45	)
Net cash provided by operating activities				661			465
Investing activities:
Capital expenditures				(417	)		(200	)
Acquisitions, net of cash acquired				(187	)		(62	)
Investments in equity affiliates and other				(36	)		(42	)
Proceeds from property, plant and equipment and other asset dispositions				99			137
Other, net				18			23
Net cash used in investing activities				(523	)		(144	)
Financing activities:
Borrowings		6		450			—
Repayment of borrowings		6		(801	)		(93	)
Dividends paid				(102	)		(99	)
Other, net				(48	)		(42	)
Net cash used in financing activities				(501	)		(234	)
Net change in cash and cash equivalents				(363	)		87
Cash and cash equivalents, beginning of period				2,034			2,016
Exchange movement on opening cash balance				(23	)		9
Cash and cash equivalents, end of period			$	1,648		$	2,112

The accompanying notes are an integral part of these unaudited consolidated financial statements.

5

NEWS CORPORATION

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: news and information services, subscription video services in Australia, book publishing and digital real estate services.

In April 2018, News Corp and Telstra Corporation Limited (“Telstra”) combined their respective 50% interests in Foxtel and News Corp’s 100% interest in FOX SPORTS Australia into a new company, which the Company refers to as “new Foxtel” (the “Transaction”). Following the completion of the Transaction, News Corp owns a 65% interest in the combined business, with Telstra owning the remaining 35%. Consequently, the Company began consolidating Foxtel in the fourth quarter of fiscal 2018. See Note 3—Acquisitions, Disposals and Other Transactions; Note 5—Investments; Note 6—Borrowings; and Note 9—Financial Instruments and Fair Value Measurements.

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, 2019. The preparation of the Company’s Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts that are reported in the Consolidated Financial Statements and accompanying disclosures. Actual results could differ from those estimates.

Intercompany transactions and balances have been eliminated. Equity investments in which the Company exercises significant influence but does not exercise control and is not the primary beneficiary are accounted for using the equity method. In accordance with ASU 2016-01, 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, 2018 as filed with the Securities and Exchange Commission (the “SEC”) on August 15, 2018 (the “2018 Form 10-K”).

Certain reclassifications have been made to the prior period consolidated financial statements to conform to the current year presentation. Specifically, in the first quarter of fiscal 2019, the Company reclassified Conference Sponsorship revenues at its Dow Jones reporting unit and Merchandising revenues at News America Marketing from Other revenues to Advertising revenues as the Company believes that the reclassification more accurately reflects the nature of those revenue streams. These revenue reclassifications totaled $15 million and $42 million for the three and nine months ended March 31, 2018, respectively, and $57 million for the fiscal year ended June 30, 2018.

The Company’s fiscal year ends on the Sunday closest to June 30. Fiscal 2019 and fiscal 2018 include 52 weeks. All references to the three and nine months ended March 31, 2019 and 2018 relate to the three and nine months ended March 31, 2019 and April 1, 2018, respectively. For convenience purposes, the Company continues to date its Consolidated Financial Statements as of March 31.

6

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Recently Issued Accounting Pronouncements

Adopted

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which amended the FASB Accounting Standards Codification by creating Topic 606, “Revenue from Contracts with Customers” (“ASC 606”). ASU 2014-09 removes inconsistencies and differences in revenue recognition requirements between GAAP and International Financial Reporting Standards and requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company adopted ASU 2014-09 on a modified retrospective basis as of July 1, 2018. As a result, the Company recorded a $20 million decrease to Accumulated deficit as of July 1, 2018 to reflect the cumulative impact of its adoption of ASC 606. See Note 2—Revenues.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The amendments in ASU 2016-01 address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 is effective for the Company for annual and interim reporting periods beginning July 1, 2018. The Company adopted the guidance on a cumulative-effect basis for its investments with readily determinable fair values effective July 1, 2018. In accordance with ASU 2016-01, the cumulative net unrealized gains (losses) for these investments contained within Accumulated other comprehensive loss were reclassified through Accumulated deficit as of July 1, 2018, and the Company recorded a $22 million decrease to Accumulated deficit. The Company has elected to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. There was no financial statement impact upon adoption for these investments. See Note 5—Investments and Note 14—Additional Financial Information.

In March 2017, the FASB issued ASU 2017-07, “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”). The amendments in ASU 2017-07 require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic benefit cost (income) as defined in paragraphs 715-30-35-4 and 715-60-35-9 are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. ASU 2017-07 allows for a practical expedient that permits a company to use the amounts disclosed in its pension and other postretirement benefit plans note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. ASU 2017-07 is effective for the Company for annual and interim reporting periods beginning July 1, 2018. The Company adopted ASU 2017-07 utilizing the practical expedient. The other components of net periodic benefit cost (income) are included in Other, net in the Statements of Operations. The adoption did not have a material impact on the Company’s Consolidated Financial Statements.

In June 2018, the FASB issued ASU 2018-07, “Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting” (“ASU 2018-07”). The amendments in ASU 2018-07 expanded the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. As permitted by ASU 2018-07, the Company early-adopted this standard and the adoption did not have a material impact on the Company’s Consolidated Financial Statements.

In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)” (“ASU 2018-15”). The amendments in ASU 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). As permitted by ASU 2018-15, the Company early-adopted this standard on a prospective basis. The adoption did not have a material impact on the Company’s Consolidated Financial Statements.

7

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Issued

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). The amendments in ASU 2016-02 require lessees to recognize all leases on the balance sheet by recording a right-of-use asset and a lease liability, and lessor accounting has been updated to align with the new requirements for lessees. The new standard also provides changes to the existing sale-leaseback guidance. ASU 2016-02 is effective for the Company for annual and interim reporting periods beginning July 1, 2019. The FASB has also issued additional standards which provide additional clarification and implementation guidance on the previously issued ASU 2016-02 and have the same effective date as the original standard. The Company plans to apply this guidance on a modified retrospective basis at the beginning of the period of adoption through a cumulative-effect adjustment to retained earnings, with no restatement of prior periods. The Company has selected its lease management system and is in the process of completing its inventory of its lease contracts and implementing processes and controls to enable the preparation of the required financial information for this standard. The Company is currently evaluating the impact ASU 2016-02 will have on its consolidated financial statements.

In June 2016, the FASB issued 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. ASU 2016-13 is effective for the Company for annual and interim reporting periods beginning July 1, 2020. The Company is currently evaluating the impact ASU 2016-13 will have on its consolidated financial statements.

In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”). The amendments in ASU 2017-12 more closely align the results of cash flow and fair value hedge accounting with risk management activities through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements. The amendments address specific limitations in current GAAP by expanding hedge accounting for both nonfinancial and financial risk components and by refining the measurement of hedge results to better reflect an entity’s hedging strategies. ASU 2017-12 is effective for the Company for annual and interim reporting periods beginning July 1, 2019. The Company is currently evaluating the impact ASU 2017-12 will have on its consolidated financial statements.

In February 2018, the FASB issued ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”). The amendments in ASU 2018-02 provide a reclassification from Accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act (as defined below). See Note 12— Income Taxes. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statement users. ASU 2018-02 is effective for the Company for annual and interim reporting periods beginning July 1, 2019. The Company is currently evaluating the impact ASU 2018-02 will have on its consolidated financial statements.

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. ASU 2018-13 is effective for the Company for annual and interim reporting periods beginning July 1, 2020. The Company is currently evaluating the impact ASU 2018-13 will have on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans” (“ASU 2018-14”). The amendments in ASU 2018-14 modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. ASU 2018-14 eliminates the disclosures for amounts in Accumulated other comprehensive loss expected to be recognized as a component of net periodic benefit cost (income) and the effect of a percentage change in health care cost trend rate. ASU 2018-14 is effective for the Company for annual and interim reporting periods beginning July 1, 2021. The Company will comply with the new disclosure requirements in ASU 2018-14 beginning with its Annual Report on Form 10-K for the fiscal year ending June 30, 2019.

8

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2. REVENUES

On July 1, 2018, the Company adopted ASC 606 on a modified retrospective basis for all contracts which were not completed as of the adoption date. Results for reporting periods beginning after July 1, 2018 are presented under ASC 606 while prior periods have not been restated. Under ASC 606, revenue is recognized when or as the Company satisfies its respective performance obligations under each contract. The Company recorded a $20 million decrease to Accumulated deficit as of July 1, 2018 to reflect the cumulative impact of its adoption of ASC 606.

When implementing ASC 606, the Company applied the practical expedient to reflect the aggregate effect of all contract modifications occurring before the beginning of the earliest period presented when identifying satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations.

The adoption of ASC 606 primarily resulted in the following changes related to the Company’s revenue recognition policies:

• Reclassification of certain payments to customers

For certain revenue streams within the Subscription Video Services, Book Publishing and News and Information Services segments, the Company previously recorded certain marketing and sales incentive payments to customers within Operating expenses and Selling, general and administrative expenses. In accordance with ASC 606, such payments are now recorded as a reduction of revenue. For the three and nine months ended March 31, 2019, revenues were $22 million and $84 million lower, respectively, as a result of this reclassification, with no impact on the Company’s net income.

• Deferred installation revenues in the Subscription Video Services segment

Under ASC 606, each customer subscription sold is accounted for as a distinct performance obligation. Installation services are not accounted for as a distinct performance obligation and are instead included within the overall services being provided. Therefore, installation revenues are deferred and recognized over the respective customer contract term. Historically, installation revenues were deferred and recognized over the estimated customer life. For the three and nine months ended March 31, 2019, revenues were $5 million and $18 million higher, respectively, as a result of the adoption of ASC 606.

• Acceleration of revenue associated with REA Group’s financial services business

The Company has historically delayed the recognition of trailing commission revenue associated with REA Group’s financial services business until such amounts became fixed or determinable. Under ASC 606, trailing commission revenue is recognized when the related mortgage loan is established. As a result, the Company established a commission receivable of $121 million and a broker commission payable of $94 million as of July 1, 2018. The current portion of the commission receivable and broker commission payable are classified in Receivables, net and Other current liabilities, respectively, with the non-current portion of each classified within Other non-current assets and liabilities, respectively, in the Balance Sheets. The change in accounting for trailing commission revenue did not have a material impact on the Statement of Operations.

9

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The Company’s revenues and expenses for the three and nine months ended March 31, 2019 and the opening balance sheet as of July 1, 2018 under both ASC 606 and the prior standard, ASC 605 are as follows:

	For the three months ended March 31, 2019
	ASC 605			Effects of Adoption			ASC 606
	(in millions)
Revenue:
Circulation and subscription	$	1,019		$	6		$	1,025
Advertising		673			(3	)		670
Consumer		420			(17	)		403
Real estate		218			—			218
Other		144			(3	)		141
Total Revenues	$	2,474		$	(17	)	$	2,457
Operating expenses and Selling, general and administrative	$	(2,228	)	$	18		$	(2,210	)
Net income	$	22		$	1		$	23
	For the nine months ended March 31, 2019
	ASC 605			Effects of Adoption			ASC 606
	(in millions)
Revenue:
Circulation and subscription	$	3,076		$	12		$	3,088
Advertising		2,055			(3	)		2,052
Consumer		1,328			(47	)		1,281
Real estate		693			—			693
Other		510			(16	)		494
Total Revenues	$	7,662		$	(54	)	$	7,608
Operating expenses and Selling, general and administrative	$	(6,706	)	$	73		$	(6,633	)
Net income	$	256		$	14		$	270

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

	As of July 1, 2018
	ASC 605			Effects of Adoption			ASC 606
	(in millions)
Assets:
Receivables, net	$	1,612		$	200		$	1,812
Other current assets		372			(4	)		368
Deferred income tax assets		279			2			281
Other non-current assets		831			92			923
Liabilities and Equity:
Deferred revenue	$	516		$	(6	)	$	510
Other current liabilities		372			194			566
Deferred income tax liabilities		389			11			400
Other non-current liabilities		430			71			501
Accumulated deficit		(2,163	)		20			(2,143	)

Disaggregated revenue

The following table presents revenue by type and segment for the three and nine months ended March 31, 2019:

	For the three months ended March 31, 2019
	News and Information Services		Subscription Video Services		Book Publishing		Digital Real Estate Services		Other		Total Revenues
	(in millions)
Revenues:
Circulation and subscription	$	538	$	474	$	—	$	12	$	1	$	1,025
Advertising		593		50		—		27		—		670
Consumer		—		—		403		—		—		403
Real estate		—		—		—		218		—		218
Other		93		15		18		15		—		141
Total Revenues	$	1,224	$	539	$	421	$	272	$	1	$	2,457

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

	For the nine months ended March 31, 2019
	News and Information Services		Subscription Video Services		Book Publishing		Digital Real Estate Services		Other		Total Revenues
	(in millions)
Revenues:
Circulation and subscription	$	1,593	$	1,455	$	—	$	39	$	1	$	3,088
Advertising		1,801		162		—		89		—		2,052
Consumer		—		—		1,281		—		—		1,281
Real estate		—		—		—		693		—		693
Other		335		49		54		55		1		494
Total Revenues	$	3,729	$	1,666	$	1,335	$	876	$	2	$	7,608

Disclosures regarding the nature, timing and uncertainty of the Company’s revenue streams across its segments are as follows:

Circulation and subscription revenues

Circulation and subscription revenues include single-copy newspaper, newspaper subscription, information services subscription and pay television broadcast subscription revenues. Circulation revenues are based on the number of copies of the printed newspaper (through home-delivery subscriptions and single-copy sales) and/or digital subscriptions sold, and the associated rates charged to the customers. Single-copy revenue is recognized at a point in time on the date the newspapers are sold to distribution outlets, net of provisions for related returns.

Revenues from home delivery and digital subscriptions are recognized over the subscription term as the newspapers and/or digital subscriptions are delivered. Information services subscription revenues are recognized over time as the subscriptions are delivered. Payments from subscribers are generally due at the beginning of the month and are recorded as deferred revenue. Such amounts are recognized as revenue as the associated subscription is delivered.

Revenue generated from subscriptions to receive pay television broadcast services, broadband and home phone services for residential and commercial subscribers is recognized over time on a monthly basis as the services are provided. Payment is generally received monthly in advance of providing services, and is deferred upon receipt. Such amounts are recognized as revenue as the related services are provided.

Advertising revenues

Revenue from print advertising is recognized at the point in time the print advertisement is circulated. Broadcast advertising revenue is recognized over the time that the broadcast advertisement is aired. For impressions-based digital advertising, revenues are recognized as impressions are delivered over the term of the arrangement, while revenue from non-impressions-based digital advertising is recognized over the period that the advertisements are displayed. Such amounts are recognized net of agency commissions and provisions for estimated sales incentives, including rebates, rate adjustments or discounts.

Advertising revenues earned from integrated marketing services are recognized at the point in time when free-standing inserts are published. Revenues earned from in-store marketing services are partially recognized upon installation, with the remaining revenue recognized over the in-store campaign.

Billings to clients and payments received in advance of performance of services or delivery of products are recorded as deferred revenue until the services are performed or the product is delivered. Payment for advertising services is typically due shortly after the Company has satisfied its performance obligation to print, broadcast or place the advertising specified in the contract. For advertising campaigns that extend beyond one month, the Company generally invoices the advertiser in arrears based on the number of advertisements that were printed, broadcast or placed, or impressions delivered during the month.

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Consumer revenues

Revenue from the sale of physical books and electronic books (“e-books”) is recognized at the point in time of physical receipt by the customer or electronic delivery. Such amounts are recorded net of provisions for returns and payments to customers when a distinct good or service is not received. If the Company prohibits its customer from selling a physical book until a future date, it recognizes revenue when that restriction lapses.

Revenue is recognized net of any amounts billed to customers for taxes remitted to government authorities. Payments for the sale of physical books and e-books are generally collected within one to three months of sale or delivery and are based on the number of physical books or e-books sold.

Real Estate revenues

Real estate revenues are derived from the sale of online real estate listing products and advanced client management and reporting products, as well as services to agents, brokers and developers. Revenue is typically recognized over the contractual period during which the services are provided. Payments are generally due monthly over the subscription term.

Other revenues

Other revenues are recognized when the related services are performed or the product has been delivered.

Areas of judgment

Contracts with multiple performance obligations

The Company has certain revenue contracts which contain multiple performance obligations such as print and digital advertising bundles and bundled video service subscriptions. Revenues derived from sales contracts that contain multiple products and services are allocated based on the relative standalone selling price of each performance obligation to be delivered. Standalone selling price is typically determined based on prices charged to customers for the same or similar goods or services on a standalone basis. If observable standalone prices are not available, the Company estimates standalone selling price by maximizing the use of observable inputs to most accurately reflect the price of each individual performance obligation. Revenue is recognized as each performance obligation included in the contract is satisfied.

Identification of a customer and gross versus net revenue recognition

In the normal course of business, the Company acts as or uses an intermediary or agent in executing transactions with third parties. When the intermediary or agent is determined to be the Company’s customer, the Company records revenue based on the amount it expects to receive from the agent or intermediary.

In other circumstances, the determination of whether revenue should be reported on a gross or net basis is based on an assessment of whether the Company is acting as the principal or an agent in the transaction. If the Company is acting as a principal in a transaction, the Company reports revenue on a gross basis. If the Company is acting as an agent in a transaction, the Company reports revenue on a net basis. The determination of whether the Company is acting as a principal or an agent in a transaction involves judgment and is based on an evaluation of the terms of the arrangement. The Company serves as the principal in transactions in which it controls the goods or services prior to being transferred to the ultimate customer.

Sales returns

Certain of the Company’s products, such as books and newspapers, are sold with the right of return. The Company records the estimated impact of such returns as a reduction of revenue. To estimate product sales that will be returned and the related products that are expected to be placed back into inventory, the Company analyzes historical returns, current economic trends, changes in customer demand and acceptance of the Company’s products. Based on this information, the Company reserves a percentage of each dollar of product sales that provide the customer with the right of return. As a result of the adoption of ASC 606, the Company reclassified its sales returns reserve from Receivables, net to Other current liabilities.

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Contract liabilities and assets

The Company’s deferred revenue balance primarily relates to amounts received from customers for subscriptions paid in advance of the services being provided. The following table presents changes in the deferred revenue balance for the three and nine months ended March 31, 2019:

	For the three months ended March 31, 2019			For the nine months ended March 31, 2019
	(in millions)			(in millions)
Balance, beginning of period	$	430		$	510
Deferral of revenue		934			2,271
Recognition of deferred revenue(a)		(883	)		(2,300	)
Other		(21	)		(21	)
Balance, end of period	$	460		$	460

^(a) For the three and nine months ended March 31, 2019, the Company recognized approximately $241 million and $461 million, respectively, of revenue which was included in the opening deferred revenue balance for each of the respective periods.

Contract assets were immaterial for disclosure as of March 31, 2019.

Practical expedients and other revenue disclosures

The Company typically expenses sales commissions incurred to obtain a customer contract as those amounts are incurred as the amortization period is twelve months or less. These costs are recorded within Selling, general and administrative in the Statements of Operations. The Company also applies the practical expedient for significant financing components when the transfer of the good or service is paid within twelve months or less, or the receipt of consideration is received within twelve months or less of the transfer of the good or service.

During the three and nine months ended March 31, 2019, the Company recognized approximately $75 million and $227 million, respectively, in revenues related to performance obligations that were satisfied or partially satisfied in a prior reporting period. The remaining transaction price related to unsatisfied performance obligations as of March 31, 2019 was approximately $297 million, of which approximately $39 million is expected to be recognized over the remainder of fiscal 2019, approximately $133 million is expected to be recognized in fiscal 2020, $98 million is expected to be recognized in fiscal 2021, with the remainder to be recognized thereafter. These amounts do not include (i) contracts with an expected duration of one year or less, (ii) contracts for which variable consideration is determined based on the customer’s subsequent sale or usage and (iii) variable consideration allocated to performance obligations accounted for under the series guidance that meets the allocation objective under ASC 606.

NOTE 3. ACQUISITIONS, DISPOSALS AND OTHER TRANSACTIONS

Opcity

In October 2018, the Company acquired Opcity Inc. (“Opcity”), a market-leading real estate technology platform that matches qualified home buyers and sellers with real estate professionals in real time. The total transaction value was approximately $210 million, consisting of approximately $182 million in cash, net of $7 million of cash acquired, and approximately $28 million in deferred payments and restricted stock unit awards for Opcity’s founders and qualifying

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

employees, which is being recognized as compensation expense over the three years following the closing. Included in the cash amount was approximately $20 million that is being held back for approximately 18 months after closing. The acquisition broadens realtor.com^®’s lead generation product portfolio, allowing real estate professionals to choose between traditional lead products or a concierge-based model that provides highly vetted, transaction-ready leads. Opcity is a subsidiary of Move, and its results are included within the Digital Real Estate Services segment.

Under the acquisition method of accounting, the total consideration was first allocated to net tangible assets and identifiable intangible assets based upon their fair values as of the date of completion of the acquisition. As a result of the acquisition, the Company recorded approximately $73 million of assets, of which $49 million primarily related to the Opcity technology and data platform with a weighted average useful life of 12 years and $24 million primarily related to intangible assets resulting from previously acquired leads and customer relationships with a weighted average useful life of 9 years. In accordance with ASC 350, “Intangibles – Goodwill and Other” (“ASC 350”) the excess of the total consideration over the fair values of the net tangible and intangible assets of approximately $124 million was recorded as goodwill on the transaction.

New Foxtel

In April 2018, News Corp and Telstra combined their respective 50% interests in Foxtel and News Corp’s 100% interest in FOX SPORTS Australia into a new company. Following the completion of the Transaction, News Corp owns a 65% interest in the combined business, with Telstra owning the remaining 35%. Consequently, the Company began consolidating Foxtel in the fourth quarter of fiscal 2018. The combination allows Foxtel and FOX SPORTS Australia to leverage their media platforms and content to improve services for consumers and advertisers. The results of new Foxtel are reported within the Subscription Video Services segment (formerly the Cable Network Programming segment), and new Foxtel is considered a separate reporting unit for purposes of the Company’s annual goodwill impairment review.

The Transaction was accounted for in accordance with ASC 805 “Business Combinations” (“ASC 805”) which requires the Company to re-measure its previously held equity interest in Foxtel at its Transaction completion date fair value. The carrying amount of the Company’s previously held equity interest in Foxtel was equal to its fair value as of the Transaction completion date, as the Company wrote its investment in Foxtel down to fair value during the third quarter of fiscal 2018. In accordance with ASC 805, as the Company did not relinquish control of its investment in FOX SPORTS Australia, the reduction in the Company’s ownership interest to 65% was accounted for as a common control transaction on a carryover basis. See Note 5—Investments.

The total aggregate purchase price associated with the Transaction at the completion date is set forth below (in millions):

Consideration transferred(a)	$	331
Fair value of News Corp previously held equity interest in Foxtel		631
Fair value of noncontrolling interest(b)		578
Fair value of net assets	$	1,540

^a) Primarily represents the fair value of 35% of FOX SPORTS Australia exchanged as consideration in the Transaction and has been included in noncontrolling interest.

^b) Primarily represents the fair value of 35% of Foxtel, which includes the impact of certain market participant synergies.

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Under the acquisition method of accounting, the aggregate purchase price, based on a valuation of 100% of Foxtel, was allocated to net tangible and intangible assets based upon their fair value as of the date of completion of the Transaction. The excess of the aggregate purchase price over the fair value of the net tangible and intangible assets acquired was recorded as goodwill. The allocation is as follows (in millions):

Assets acquired:
Cash	$	78
Current assets		492
Property, plant and equipment		967
Intangible assets		861
Goodwill		1,559
Other non-current assets		268
Total assets acquired	$	4,225
Liabilities assumed:
Current liabilities	$	611
Long-term borrowings		1,751
Other non-current liabilities		323
Total liabilities assumed		2,685
Net assets acquired	$	1,540

As a result of the Transaction, the Company recorded net tangible assets of approximately $871 million, excluding long-term borrowings, primarily consisting of property, plant and equipment, which mainly relate to digital set top units and installations and technical equipment, as well as accounts receivable, inventory, accounts payable and accruals at their estimated fair values at the completion date of the Transaction. The Company recorded outstanding borrowings of approximately $1.8 billion as a result of the Transaction. See Note 6—Borrowings.

In addition, the Company recorded approximately $0.9 billion of intangible assets of which $468 million has been allocated to subscriber relationships with a weighted-average useful life of 10 years, $270 million has been allocated to the tradenames which have an indefinite life and approximately $123 million has been allocated to advertiser relationships with a weighted-average useful life of 15 years. In accordance with ASC 350, the excess of the purchase price over the fair values of the net tangible and intangible assets of approximately $1.6 billion was recorded as goodwill on the transaction.

As a result of the Transaction, the Company recognized a $337 million loss in Other, net in the fourth quarter of fiscal 2018, primarily related to the Company’s settlement of its pre-existing contractual arrangement between Foxtel and FOX SPORTS Australia which resulted in a $317 million write-off of its channel distribution agreement intangible asset at the time of the Transaction.

NOTE 4. IMPAIRMENT AND RESTRUCTURING CHARGES

Fiscal 2019

During the three and nine months ended March 31, 2019, the Company recorded restructuring charges of $25 million and $62 million, respectively, of which $23 million and $55 million, respectively, related to the News and Information Services segment. The restructuring charges recorded in fiscal 2019 were for employee termination benefits.

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Fiscal 2018

During the three and nine months ended March 31, 2018, the Company recorded restructuring charges of $21 million and $48 million, respectively, of which $13 million and $38 million, respectively, related to the News and Information Services segment. The restructuring charges recorded in fiscal 2018 were primarily for employee termination benefits.

During the three and nine months ended March 31, 2018, the Company recognized non-cash impairment charges of $225 million primarily related to the impairment of goodwill and intangible assets at the News America Marketing reporting unit and impairment of goodwill at the FOX SPORTS Australia reporting unit.

The Company recognized a $165 million non-cash impairment of goodwill and indefinite-lived intangible assets at its News America Marketing reporting unit. Due to the impact of adverse trends on the future expected performance of the business, the Company revised its future outlook which resulted in a reduction in expected future cash flows. Based on the revised projections, the Company determined that the fair value of the reporting unit was less than its carrying value. The assumptions utilized in the income approach valuation method were discount rates (ranging from 12.5%-14%), long-term growth rates (ranging from (1.9%)-0.9%) and a royalty rate of 2.5%.

The Company recognized a $41 million non-cash impairment of goodwill at its FOX SPORTS Australia reporting unit. As a result of lower-than-expected revenues at Foxtel, the Company revised its future outlook for FOX SPORTS Australia whose revenues are heavily predicated on Foxtel subscribers. Based on the revised projections, the Company determined that the fair value of the reporting unit was less than its carrying value. The assumptions utilized in the income approach valuation method were a discount rate of 9.5% and a long-term growth rate of 2.0%. See Note 5—Investments.

Changes in restructuring program liabilities were as follows:

	For the three months ended March 31,
	2019											2018
	One time											One time
	employee			Facility								employee			Facility
	termination			related								termination			related
	benefits			costs		Other costs			Total			benefits			costs			Other costs			Total
	(in millions)
Balance, beginning of period	$	20		$	2	$	11		$	33		$	22		$	4		$	10		$	36
Additions		25			—		—			25			21			—			—			21
Payments		(17	)		—		(1	)		(18	)		(22	)		—			—			(22	)
Other		—			—		—			—			3			—			—			3
Balance, end of period	$	28		$	2	$	10		$	40		$	24		$	4		$	10		$	38
	For the nine months ended March 31,
	2019											2018
	One time											One time
	employee			Facility								employee			Facility
	termination			related								termination			related
	benefits			costs		Other costs			Total			benefits			costs			Other costs			Total
	(in millions)
Balance, beginning of period	$	29		$	2	$	11		$	42		$	33		$	6		$	10		$	49
Additions		62			—		—			62			47			—			1			48
Payments		(61	)		—		(2	)		(63	)		(60	)		(1	)		(1	)		(62	)
Other		(2	)		—		1			(1	)		4			(1	)		—			3
Balance, end of period	$	28		$	2	$	10		$	40		$	24		$	4		$	10		$	38

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

As of March 31, 2019, restructuring liabilities of approximately $30 million were included in the Balance Sheets in Other current liabilities and $10 million were included in Other non-current liabilities.

NOTE 5. INVESTMENTS

The Company’s investments were comprised of the following:

	Ownership
	Percentage		As of		As of
	as of March 31,		March 31,		June 30,
	2019		2019		2018
			(in millions)
Equity method investments(a)		various	$	160	$	173
Equity securities(b)		various		187		220
Total Investments			$	347	$	393

^(a) Equity method investments are primarily comprised of new Foxtel’s investment in Nickelodeon Australia Joint Venture and Elara Technologies Pte. Ltd., which operates PropTiger.com, Makaan.com. and Housing.com.

^(b) Equity securities are primarily comprised of certain investments in China and the Company’s investment in HT&E Limited, which operates a portfolio of Australian radio and outdoor media assets.

The Company has equity securities with quoted prices in active markets as well as equity securities without readily determinable fair market values. Equity securities without readily determinable fair market values are valued at cost, less any impairment, plus or minus changes in fair value resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. The components comprising total gains and losses on equity securities are set forth below:

	For the three months ended March 31,				For the nine months ended March 31,
	2019		2018		2019			2018
	(in millions)				(in millions)
Total gains (losses) recognized on equity securities	$	6	$	30	$	(23	)	$	13
Less: Net gains recognized on equity securities sold or impaired		—		29		—			5
Unrealized gains (losses) recognized on equity securities held at end of period	$	6	$	1	$	(23	)	$	8

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Equity Losses of Affiliates

The Company’s share of the losses of its equity affiliates was as follows:

	For the three months ended March 31,						For the nine months ended March 31,
	2019			2018			2019			2018
	(in millions)						(in millions)
Foxtel(a)	$	—		$	(970	)	$	—		$	(974	)
Other equity affiliates, net(b)		(4	)		(4	)		(13	)		(28	)
Total Equity losses of affiliates	$	(4	)	$	(974	)	$	(13	)	$	(1,002	)

^(a) Following completion of the Transaction in April 2018, News Corp ceased accounting for Foxtel as an equity method investment and began consolidating its results in the fourth quarter of fiscal 2018. See Note 3— Acquisitions, Disposals and Other Transactions.

During the three and nine months ended March 31, 2018, the Company recognized a $957 million non-cash write-down of the carrying value of its investment in Foxtel. In the third quarter of fiscal 2018, the Company assessed the long-term prospects for Foxtel, on both a stand-alone and combined basis. As a result of lower-than-expected revenues from certain products and broadcast subscribers at Foxtel, the Company revised its outlook for Foxtel, which resulted in a reduction in expected future cash flows. Based on the revised projections, the Company concluded that the fair value of its investment in Foxtel declined below its carrying value. The assumptions utilized in the income approach valuation method were a discount rate of 10.25% and a long-term growth rate of 2.0%. The write-down was reflected in Equity losses of affiliates in the Statements of Operations for the three and nine months ended March 31, 2018.

In accordance with ASC 350, the Company amortized $17 million and $49 million related to excess cost over the Company’s proportionate share of its investment’s underlying net assets allocated to finite-lived intangible assets during the three and nine months ended March 31, 2018, respectively. Such amortization was reflected in Equity losses of affiliates in the Statement of Operations.

^(b) Other equity affiliates, net for the three and nine months ended March 31, 2019 include losses primarily from the Company’s interest in Elara. During the nine months ended March 31, 2018, the Company recognized $13 million in non-cash write-downs of certain equity method investments’ carrying values. The write-downs were reflected in Equity losses of affiliates in the Statements of Operations for the nine months ended March 31, 2018.

Summarized financial information for Foxtel, presented in accordance with U.S. GAAP, was as follows:

	For the nine months ended March 31,
	2018
	(in millions)
Revenues	$	1,818
Operating income(a)		155
Net income		64

^(a) Includes Depreciation and amortization of $187 million for the nine months ended March 31, 2018. Operating income before depreciation and amortization was $342 million for the nine months ended March 31, 2018.

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 6. BORROWINGS

The Company’s total borrowings consist of the following:

	Interest rate at March 31, 2019			Due date at March 31, 2019		As of March 31, 2019			As of June 30, 2018
						(in millions)
Foxtel Group
Credit facility 2013(a)(b)		3.55	%		Apr 7, 2019	$	—		$	222
Credit facility 2014 — tranche 1(a)		3.55	%		May 30, 2019		142			148
Credit facility 2014 — tranche 2(a)		3.65	%		Jan 31, 2020		142			148
Credit facility 2015(a)		3.70	%		Jul 31, 2020		284			296
Credit facility 2016(a)(c)		4.25	%		Sept 11, 2021		53			108
Working capital facility 2017(a)(c)		3.85	%		Jul 3, 2020		57			59
US private placement 2009 — tranche 3		6.20	%		Sept 24, 2019		74			75
US private placement 2012 — USD portion — tranche 1(d)		3.68	%		Jul 25, 2019		150			150
US private placement 2012 — USD portion — tranche 2(d)		4.27	%		Jul 25, 2022		198			196
US private placement 2012 — USD portion — tranche 3(d)		4.42	%		Jul 25, 2024		148			146
US private placement 2012 — AUD portion		7.04	%		Jul 25, 2022		78			83
REA Group
Credit facility 2016 — tranche 2(e)(f)		—			Dec 31, 2018		—			89
Credit facility 2016 — tranche 3(e)(f)		3.01	%		Dec 31, 2019		170			178
Credit facility 2018(e)		2.71	%		Apr 27, 2021		50			54
Total borrowings							1,546			1,952
Less: current portion(g)							(678	)		(462	)
Long-term borrowings						$	868		$	1,490

^(a) Borrowings under these facilities bear interest at a floating rate of Australian BBSY plus an applicable margin of between 1.10% and 2.70% per annum payable quarterly.

^(b) During the three and nine months ended March 31, 2019, the Foxtel Group repaid its A$300 million (approximately $216 million) facility maturing in April 2019 using A$300 million of shareholder loans provided by the Company.

^(c) As of March 31, 2019, the Foxtel Group has undrawn commitments of $241 million under these facilities for which it pays a commitment fee in the range of 40% to 45% of the applicable margin.

^(d) The carrying value of the borrowings include any fair value adjustments related to the Company’s fair value hedges. See Note 9 —Financial Instruments and Fair Value Measurements.

^(e) Borrowings under these facilities bear interest at a floating rate of the Australian BBSY plus a margin of between 0.85% and 1.45% depending on REA Group’s net leverage ratio. As of March 31, 2019, REA Group was paying a margin of between 0.85% and 1.05%.

^(f) During the nine months ended March 31, 2019, REA Group repaid A$120 million (approximately $87 million) of the A$480 million revolving loan facility. Remaining borrowings under the facility of A$240 million (approximately $170 million) will mature in fiscal 2020.

^(g) The Company classifies the current portion of long term debt as non-current liabilities on the Balance Sheets when it has the intent and ability to refinance the obligation on a long-term basis, in accordance with ASC 470-50 “Debt.”

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 7. REDEEMABLE PREFERRED STOCK

In connection with the Company’s separation of its businesses (the “Separation”) from Twenty-First Century Fox, Inc. (“21st Century Fox”) on June 28, 2013 (the “Distribution Date”), 21st Century Fox sold 4,000 shares of cumulative redeemable preferred stock with a par value of $5,000 per share of a newly formed U.S. subsidiary of the Company. The preferred stock paid dividends at a rate of 9.5% per annum, payable quarterly, in arrears. The preferred stock was callable by the Company at any time after the fifth year and puttable at the option of the holder after 10 years. In July 2018, the Company exercised its call option and redeemed 100% of the outstanding redeemable preferred stock.

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 8. EQUITY

The following tables summarize changes in equity for the three and nine months ended March 31, 2019 and 2018:

	For the three months ended March 31, 2019
															Accumulated
	Class A				Class B				Additional						Other			Total News
	Common Stock				Common Stock				Paid-in			Accumulated			Comprehensive			Corporation			Noncontrolling			Total
	Shares		Amount		Shares		Amount		Capital			Deficit			Loss			Equity			Interests			Equity
	(in millions)
Balance, December 31, 2018		385	$	4		200	$	2	$	12,271		$	(1,937	)	$	(1,076	)	$	9,264		$	1,170		$	10,434
Net income		—		—		—		—		—			10			—			10			13			23
Other comprehensive income		—		—		—		—		—			—			57			57			10			67
Dividends		—		—		—		—		(58	)		—			—			(58	)		(20	)		(78	)
Other		—		—		—		—		16			—			—			16			(4	)		12
Balance, March 31, 2019		385	$	4		200	$	2	$	12,229		$	(1,927	)	$	(1,019	)	$	9,289		$	1,169		$	10,458
	For the three months ended March 31, 2018
															Accumulated
	Class A				Class B				Additional						Other			Total News
	Common Stock				Common Stock				Paid-in			Accumulated			Comprehensive			Corporation			Noncontrolling			Total
	Shares		Amount		Shares		Amount		Capital			Deficit			Loss			Equity			Interests			Equity
	(in millions)
Balance, December 31, 2017		383	$	4		200	$	2	$	12,350		$	(664	)	$	(832	)	$	10,860		$	298		$	11,158
Net (loss) income		—		—		—		—		—			(1,128	)		—			(1,128	)		18			(1,110	)
Other comprehensive income (loss)		—		—		—		—		—			—			3			3			(2	)		1
Dividends		—		—		—		—		(59	)		—			—			(59	)		(19	)		(78	)
Other		—		—		—		—		19			—			—			19			1			20
Balance, March 31, 2018		383	$	4		200	$	2	$	12,310		$	(1,792	)	$	(829	)	$	9,695		$	296		$	9,991

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

	For the nine months ended March 31, 2019
															Accumulated
	Class A				Class B				Additional						Other			Total News
	Common Stock				Common Stock				Paid-in			Accumulated			Comprehensive			Corporation			Noncontrolling			Total
	Shares		Amount		Shares		Amount		Capital			Deficit			Loss			Equity			Interests			Equity
	(in millions)
Balance, June 30, 2018		383	$	4		200	$	2	$	12,322		$	(2,163	)	$	(874	)	$	9,291		$	1,186		$	10,477
Cumulative impact from adoption of new accounting standards		—		—		—		—		—			32			(22	)		10			10			20
Net income		—		—		—		—		—			206			—			206			64			270
Other comprehensive loss		—		—		—		—		—			—			(124	)		(124	)		(46	)		(170	)
Dividends		—		—		—		—		(117	)		—			—			(117	)		(43	)		(160	)
Other		2		—		—		—		24			(2	)		1			23			(2	)		21
Balance, March 31, 2019		385	$	4		200	$	2	$	12,229		$	(1,927	)	$	(1,019	)	$	9,289		$	1,169		$	10,458
	For the nine months ended March 31, 2018
															Accumulated
	Class A				Class B				Additional						Other			Total News
	Common Stock				Common Stock				Paid-in			Accumulated			Comprehensive			Corporation			Noncontrolling			Total
	Shares		Amount		Shares		Amount		Capital			Deficit			Loss			Equity			Interests			Equity
	(in millions)
Balance, June 30, 2017		382	$	4		200	$	2	$	12,395		$	(648	)	$	(964	)	$	10,789		$	284		$	11,073
Net (loss) income		—		—		—		—		—			(1,143	)		—			(1,143	)		54			(1,089	)
Other comprehensive income		—		—		—		—		—			—			135			135			1			136
Dividends		—		—		—		—		(118	)		—			—			(118	)		(40	)		(158	)
Other		1		—		—		—		33			(1	)		—			32			(3	)		29
Balance, March 31, 2018		383	$	4		200	$	2	$	12,310		$	(1,792	)	$	(829	)	$	9,695		$	296		$	9,991

Stock Repurchases

In May 2013, the Company’s Board of Directors (the “Board of Directors”) authorized the Company to repurchase up to an aggregate of $500 million of its Class A Common Stock. No stock repurchases were made during the nine months ended March 31, 2019. Through May 3, 2019, the Company cumulatively repurchased approximately 5.2 million shares of Class A Common Stock for an aggregate cost of approximately $71 million. The remaining authorized amount under the stock repurchase program as of May 3, 2019 was approximately $429 million. All decisions regarding any future stock

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

repurchases are at the sole discretion of a duly appointed committee of the Board of Directors and management. The committee’s decisions regarding future stock repurchases will be evaluated from time to time in light of many factors, including the Company’s financial condition, earnings, capital requirements and debt facility covenants, other contractual restrictions, as well as legal requirements, regulatory constraints, industry practice, market volatility and other factors that the committee may deem relevant. The stock repurchase authorization may be modified, extended, suspended or discontinued at any time by the Board of Directors and the Board of Directors cannot provide any assurances that any additional shares will be repurchased.

Dividends

In February 2019, the Board of Directors declared a semi-annual cash dividend of $0.10 per share for Class A Common Stock and Class B Common Stock. This dividend was paid on April 17, 2019 to stockholders of record at the close of business on March 13, 2019. The timing, declaration, amount and payment of future dividends to stockholders, if any, is within the discretion of the Board of Directors. The Board of Directors’ decisions regarding the payment of future dividends will depend on many factors, including the Company’s financial condition, earnings, capital requirements and debt facility covenants, other contractual restrictions, as well as legal requirements, regulatory constraints, industry practice, market volatility and other factors that the Board of Directors deems relevant.

The following table sets forth the cash dividend declared per share for the three and nine months ended March 31, 2019 and 2018:

	For the three months ended March 31,				For the nine months ended March 31,
	2019		2018		2019		2018
Cash dividend declared per share	$	0.10	$	0.10	$	0.20	$	0.20

NOTE 9. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

In accordance with ASC 820, “Fair Value Measurements” (“ASC 820”) fair value measurements are required to be disclosed using a three-tiered fair value hierarchy which distinguishes market participant assumptions into the following categories:

• Level 1 — Quoted prices in active markets for identical assets or liabilities.

• Level 2 — Observable inputs other than quoted prices included in Level 1. The Company could value assets and liabilities included in this level using dealer and broker quotations, certain pricing models, bid prices, quoted prices for similar assets and liabilities in active markets, or other inputs that are observable or can be corroborated by observable market data.

• Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. For the Company, this primarily includes the use of forecasted financial information and other valuation related assumptions such as discount rates and long term growth rates in the income approach as well as the market approach which utilizes certain market and transaction multiples.

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Under ASC 820, certain assets and liabilities are required to be remeasured to fair value at the end of each reporting period. The following table summarizes those assets and liabilities measured at fair value on a recurring basis:

	As of March 31, 2019								As of June 30, 2018
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(in millions)
Assets:
Foreign currency derivatives - cash flow hedges	$	—	$	3	$	—	$	3	$	—	$	3	$	—	$	3
Cross currency interest rate derivatives - fair value hedges		—		27		—		27		—		29		—		29
Cross currency interest rate derivatives - economic hedges		—		12		—		12		—		10		—		10
Cross currency interest rate derivatives - cash flow hedges		—		107		—		107		—		76		—		76
Equity securities(a)		72		—		115		187		93		—		—		93
Total assets	$	72	$	149	$	115	$	336	$	93	$	118	$	—	$	211
Liabilities:
Interest rate derivatives - cash flow hedges	$	—	$	19	$	—	$	19	$	—	$	20	$	—	$	20
Mandatorily redeemable noncontrolling interests		—		—		12		12		—		—		12		12
Cross currency interest rate derivatives - cash flow hedges		—		15		—		15		—		12		—		12
Total liabilities	$	—	$	34	$	12	$	46	$	—	$	32	$	12	$	44

(a) See Note 5 —Investments.

There have been no transfers between levels of the fair value hierarchy during the periods presented.

Equity securities

The fair values of equity securities with quoted prices in active markets are determined based on the closing price at the end of each reporting period. These securities are classified as Level 1 in the fair value hierarchy outlined above. The fair values of equity securities without readily determinable fair market values are determined based on cost, less any impairment, plus or minus changes in fair value resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. These securities are classified as Level 3 in the fair value hierarchy outlined above.

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

A rollforward of the Company’s equity securities classified as Level 3 is as follows:

	For the nine months ended March 31,
	2019
	(in millions)
Balance - beginning of period(a)	$	127
Purchases		7
Sales		(10	)
Foreign exchange and other		(9	)
Balance - end of period	$	115

^(a) Includes impact from the adoption of ASU 2016-01. See Note 1—Description of Business and Basis of Presentation.

Mandatorily redeemable noncontrolling interests

The Company has liabilities recorded in its Balance Sheets for its mandatorily redeemable noncontrolling interests. These liabilities represent management’s best estimate of the amounts expected to be paid in accordance with the contractual terms of the underlying acquisition agreements. The fair values of these liabilities are based on the contractual payout formulas included in the acquisition agreements taking into account the expected performance of the business. Any remeasurements or accretion related to the Company’s mandatorily redeemable noncontrolling interests are recorded through Interest (expense) income, net in the Statements of Operations. As the fair value does not rely on observable market inputs, the Company classifies these liabilities as Level 3 in the fair value hierarchy.

A rollforward of the Company’s mandatorily redeemable noncontrolling interest liabilities classified as Level 3 is as follows:

	For the nine months ended March 31,
	2019			2018
	(in millions)
Balance - beginning of period	$	12		$	79
Additions		—			12
Accretion		1			2
Foreign exchange movements		(1	)		(1	)
Balance - end of period	$	12		$	92

Derivative Instruments

The Company is directly and indirectly affected by risks associated with changes in certain market conditions. When deemed appropriate, the Company uses derivative instruments to mitigate the potential impact of these market risks. The primary market risks managed by the Company through the use of derivative instruments include:

• foreign currency exchange rate risk: arising primarily through Foxtel Group borrowings denominated in U.S. dollars and payments for license fees; and

• interest rate risk: arising from fixed and floating rate Foxtel Group borrowings.

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The Company formally designates qualifying derivatives as hedge relationships (“hedges”) and applies hedge accounting when considered appropriate. For economic hedges where no hedge relationship has been designated, changes in fair value are included as a component of net income in each reporting period within Other, net in the Statements of Operations. The Company does not use derivative financial instruments for trading or speculative purposes.

Hedges are classified as current or non-current in the Balance Sheets based on their maturity dates. Refer to the table below for further details:

			Fair value as of
	Balance Sheet Location		March 31, 2019			June 30, 2018
			(in millions)
Foreign currency derivatives - cash flow hedges		Other current assets	$	3		$	3
Cross currency interest rate derivatives - fair value hedges		Other current assets		8			—
Cross currency interest rate derivatives - economic hedges		Other current assets		12			—
Cross currency interest rate derivatives - cash flow hedges		Other current assets		32			—
Cross currency interest rate derivatives - fair value hedges		Other non-current assets		19			29
Cross currency interest rate derivatives - cash flow hedges		Other non-current assets		75			76
Cross currency interest rate derivatives - economic hedges		Other non-current assets		—			10
Interest rate derivatives - cash flow hedges		Other current liabilities		(3	)		—
Interest rate derivatives - cash flow hedges		Other non-current liabilities		(16	)		(20	)
Cross currency interest rate derivatives - cash flow hedges		Other non-current liabilities		(15	)		(12	)

Cash flow hedges

The Company utilizes a combination of foreign currency derivatives, interest rate derivatives and cross currency interest rate derivatives to mitigate currency exchange and interest rate risk in relation to payments for license fees and future interest payments.

The total notional value of foreign currency contract derivatives designated for hedging was $34 million as of March 31, 2019. The maximum hedged term over which the Company is hedging exposure to foreign currency fluctuations is to June 2019. As of March 31, 2019, the Company estimates that approximately $3 million of net derivative gains related to its foreign currency contract derivative cash flow hedges included in Accumulated other comprehensive loss will be reclassified into the Statement of Operations within the next 12 months.

The total notional value of interest rate swap derivatives designated as cash flow hedges was approximately A$700 million as of March 31, 2019. The maximum hedged term over which the Company is hedging exposure to variability in interest payments is to September 2022. As of March 31, 2019, the Company estimates that approximately $4 million of net derivative gains related to its interest rate swap derivative cash flow hedges included in Accumulated other comprehensive loss will be reclassified into the Statement of Operations within the next 12 months.

The total notional value of the cross currency interest rate swaps that were designated as cash flow hedges was approximately A$400 million as of March 31, 2019. The maximum hedged term over which the Company is hedging exposure to variability in interest payments is to July 2024. As of March 31, 2019, the Company estimates that approximately $1 million of net derivative gains related to its cross currency interest rate swap derivative cash flow hedges included in Accumulated other comprehensive loss will be reclassified into the Statement of Operations within the next 12 months.

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The following tables present the impact that changes in the fair values of derivatives designated as cash flow hedges had on Accumulated other comprehensive loss and the Statement of Operations during the three and nine months ended March 31, 2019. The Company did not have any such hedges in the three and nine months ended March 31, 2018.

	(Gain) loss recognized in Accumulated					Gain (loss) reclassified from Accumulated
	Other Comprehensive Loss for the three months ended					Other Comprehensive Loss for the three months ended					Income statement
	March 31,					March 31,					location
	2019			2018		2019			2018
	(in millions)
Derivative instruments designated as cash flow hedges:
Foreign currency derivatives - cash flow hedges	$	2		$	—	$	—		$	—		Operating expenses
Cross currency interest rate derivatives - cash flow hedges		9			—		(7	)		—		Interest (expense) income, net
Interest rate derivatives - cash flow hedges		4			—		(2	)		—		Interest (expense) income, net
Total	$	15		$	—	$	(9	)	$	—
	(Gain) loss recognized in Accumulated					Gain (loss) reclassified from Accumulated
	Other Comprehensive Loss for the nine months ended					Other Comprehensive Loss for the nine months ended					Income statement
	March 31,					March 31,					location
	2019			2018		2019			2018
	(in millions)
Derivative instruments designated as cash flow hedges:
Foreign currency derivatives - cash flow hedges	$	(2	)	$	—	$	2		$	—		Operating expenses
Cross currency interest rate derivatives - cash flow hedges		(7	)		—		5			—		Interest (expense) income, net
Interest rate derivatives - cash flow hedges		6			—		(6	)		—		Interest (expense) income, net
Total	$	(3	)	$	—	$	1		$	—

During the three and nine months ended March 31, 2019 the amount recognized in the Statement of Operations for the ineffective portion of derivative instruments designated as cash flow hedges was approximately $2 million and $3 million, respectively, and the Company did not exclude any component of the changes in fair value of the derivative instruments from the assessment of hedge effectiveness.

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Fair value hedges

The Company’s primary interest rate risk arises from its borrowings acquired as a part of the Transaction. Borrowings issued at fixed rates and in U.S. dollars expose new Foxtel to fair value interest rate risk and currency exchange rate risk. The Company manages fair value interest rate risk and currency exchange rate risk through the use of cross currency interest rate swaps under which the Company exchanges fixed interest payments equivalent to the interest payments on the U.S. dollar denominated debt for floating rate Australian dollar denominated interest payments. The changes in fair value of derivatives designated as fair value hedges and the offsetting changes in fair value of the hedged items are recognized in Other, net. As of March 31, 2019, such adjustments increased the carrying value of borrowings by approximately $3 million.

The total notional value of the fair value hedges was approximately A$100 million as of March 31, 2019. The maximum hedged term over which the Company is hedging exposure to variability in interest payments is to July 2024.

During the three and nine months ended March 31, 2019, the amount recognized in the Statement of Operations on derivative instruments designated as fair value hedges related to the ineffective portion was nil and the Company did not exclude any component of the changes in fair value of the derivative instruments from the assessment of hedge effectiveness.

Economic (non-designated) hedges

In addition to derivative instruments that are designated and qualify for hedge accounting, the Company also uses certain derivatives not designated as accounting hedges to mitigate currency exchange and interest rate risk. These are referred to as economic hedges. The changes in fair value of economic hedges are immediately recognized in the Statement of Operations. The total notional value of these cross currency interest rate derivatives was $75 million as of March 31, 2019, which relate to the U.S. private placement 2009 debt.

Nonrecurring Fair Value Measurements

In addition to assets and liabilities that are remeasured at fair value on a recurring basis, the Company has certain assets, primarily goodwill, intangible assets, equity method investments and property, plant and equipment, that are not required to be remeasured to fair value at the end of each reporting period. On an ongoing basis, the Company monitors whether events occur or circumstances change that would more likely than not reduce the fair values of these assets below their carrying amounts. If the Company determines that these assets are impaired, the Company would write down these assets to fair value. These nonrecurring fair value measurements are considered to be Level 3 in the fair value hierarchy.

In the third quarter of fiscal 2018, the Company recognized a $957 million non-cash write-down of the carrying value of its equity method investment in Foxtel from $1,588 million to $631 million. In the second quarter of fiscal 2018, the Company recognized non-cash write-downs of certain equity method investments of approximately $13 million. The carrying value of these equity method investments decreased from $136 million to $123 million. See Note 5 – Investments.

In the third quarter of fiscal 2018, the Company recognized non-cash impairment charges of $120 million and $45 million related to goodwill and intangible assets, respectively, at the News America Marketing reporting unit. The carrying value of goodwill at News America Marketing decreased from $301 million to $181 million and the carrying value of intangible assets decreased from $391 million to $346 million. See Note 4 – Impairment and Restructuring Charges.

In the third quarter of fiscal 2018, the Company recognized a $41 million non-cash impairment charge related to goodwill at the FOX SPORTS Australia reporting unit. The carrying value of goodwill at FOX SPORTS Australia decreased from $490 million to $449 million. See Note 4 – Impairment and Restructuring Charges.

Other Fair Value Measurements

As of March 31, 2019, the carrying value of the Company’s outstanding borrowings approximates the fair value and is classified as Level 3 in the fair value hierarchy.

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 10. EARNINGS (LOSS) PER SHARE

The following tables set forth the computation of basic and diluted earnings (loss) per share under ASC 260, “Earnings per Share”:

	For the three months ended March 31,						For the nine months ended March 31,
	2019			2018			2019			2018
	(in millions, except per share amounts)
Net income (loss)	$	23		$	(1,110	)	$	270		$	(1,089	)
Less: Net income attributable to noncontrolling interests		(13	)		(18	)		(64	)		(54	)
Less: Redeemable preferred stock dividends(a)		—			—			—			(1	)
Net income (loss) available to News Corporation stockholders	$	10		$	(1,128	)	$	206		$	(1,144	)
Weighted-average number of shares of common stock outstanding - basic		585.0			582.8			584.6			582.6
Dilutive effect of equity awards(b)		3.8			—			2.6			—
Weighted-average number of shares of common stock outstanding - diluted		588.8			582.8			587.2			582.6
Net income (loss) available to News Corporation stockholders per share - basic and diluted	$	0.02		$	(1.94	)	$	0.35		$	(1.96	)

(a) In connection with the Separation, 21st Century Fox sold 4,000 shares of cumulative redeemable preferred stock with a par value of $5,000 per share of a newly formed U.S. subsidiary of the Company. The preferred stock paid dividends at a rate of 9.5% per annum, payable quarterly, in arrears. The preferred stock was callable by the Company at any time after the fifth year and puttable at the option of the holder after 10 years. In July 2018, the Company exercised its call option and redeemed 100% of the outstanding redeemable preferred stock.

(b) The dilutive impact of the Company’s performance stock units, restricted stock units and stock options has been excluded from the calculation of diluted loss per share for the three and nine months ended March 31, 2018 because their inclusion would have an antidilutive effect on the net loss per share.

NOTE 11. COMMITMENTS AND CONTINGENCIES

Commitments

The Company has commitments under certain firm contractual arrangements (“firm commitments”) to make future payments. These firm commitments secure the future rights to various assets and services to be used in the normal course of operations. The Company’s commitments as of March 31, 2019 have not changed significantly from the disclosures included in the 2018 Form 10-K.

Contingencies

The Company routinely is involved in various legal proceedings, claims and governmental inspections or investigations, including those discussed below. The outcome of these matters and claims is subject to significant uncertainty, and the Company often cannot predict what the eventual outcome of pending matters will be or the timing of the ultimate resolution of these matters. Fees, expenses, fines, penalties, judgments or settlement costs which might be incurred by the Company in connection with the various proceedings could adversely affect its results of operations and financial condition.

The Company establishes an accrued liability for legal claims when it determines that a loss is both probable and the amount of the loss can be reasonably estimated. Once established, accruals are adjusted from time to time, as appropriate, in light of additional information. The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be higher or lower than the amounts accrued for such matters. Legal fees associated with litigation and similar proceedings are expensed as incurred. Except as otherwise provided below, for the contingencies disclosed for which there is at least a reasonable possibility that a loss may be incurred, the Company was unable to estimate the amount of loss or range of loss. The Company recognizes gain contingencies when the gain becomes realized or realizable.

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Valassis Communications, Inc.

On November 8, 2013, Valassis Communications, Inc. (“Valassis”) filed a complaint in the U.S. District Court for the Eastern District of Michigan (the “District Court”) against News America Incorporated, News America Marketing FSI L.L.C., News America Marketing In-Store Services L.L.C. and News Corporation (together, the “NAM Group”) alleging violations of federal and state antitrust laws and common law business torts. The complaint sought treble damages, injunctive relief and attorneys’ fees and costs. On December 19, 2013, the NAM Group filed a motion to dismiss the complaint, and on March 30, 2016, the District Court ordered that Valassis’s bundling and tying claims be dismissed and that all remaining claims in the NAM Group’s motion to dismiss be referred to a panel of antitrust experts (the “Antitrust Expert Panel”) appointed in connection with a prior action brought by Valassis against certain members of the NAM Group. The Antitrust Expert Panel was convened and, on February 8, 2017, recommended that the NAM Group’s counterclaims in the action be dismissed with leave to replead three of the four counterclaims. The NAM Group filed an amended counterclaim on February 27, 2017. Valassis subsequently filed motions with the District Court seeking either to re-open the case in the District Court or to transfer the case to the U.S. District Court for the Southern District of New York (the “N.Y. District Court”). On September 25, 2017, the District Court granted Valassis’s motions and transferred the case to the N.Y. District Court. On April 13, 2018, the NAM Group filed a motion for summary judgment dismissing the case with the N.Y. District Court, and on February 21, 2019, the N.Y. District Court granted the NAM Group’s motion in part and denied it in part. The N.Y. District Court found that the NAM Group’s bidding practices were lawful but denied the NAM Group’s motion with respect to claims arising out of certain other alleged contracting practices. Valassis also ceased to pursue its claims relating to free-standing insert products, and those claims were dismissed. While it is not possible at this time to predict with any degree of certainty the ultimate outcome of this action, the NAM Group believes it has been compliant with applicable laws and intends to defend itself vigorously.

U.K. Newspaper Matters

Civil claims have been brought against the Company with respect to, among other things, voicemail interception and inappropriate payments to public officials at the Company’s former publication, The News of the World, and at The Sun, and related matters (the “U.K. Newspaper Matters”). The Company has admitted liability in many civil cases and has settled a number of cases. The Company also settled a number of claims through a private compensation scheme which was closed to new claims after April 8, 2013.

In connection with the Separation, the Company and 21st Century Fox agreed in the Separation and Distribution Agreement that 21st Century Fox would indemnify the Company for payments made after the Distribution Date arising out of civil claims and investigations relating to the U.K. Newspaper Matters as well as legal and professional fees and expenses paid in connection with the previously concluded criminal matters, other than fees, expenses and costs relating to employees (i) who are not directors, officers or certain designated employees or (ii) with respect to civil matters, who are not co-defendants with the Company or 21st Century Fox. 21st Century Fox’s indemnification obligations with respect to these matters are settled on an after-tax basis. In March 2019, as part of the separation of Fox Corporation (“FOX”) from 21st Century Fox, the Company, News Corp Holdings UK & Ireland, 21st Century Fox and FOX entered into a Partial Assignment and Assumption Agreement, pursuant to which, among other things, 21st Century Fox assigned, conveyed and transferred to FOX all of its indemnification obligations with respect to the U.K. Newspaper Matters.

The net expense (benefit) related to the U.K. Newspaper Matters in Selling, general and administrative was $2 million for each of the three months ended March 31, 2019 and 2018 and $8 million and ($38) million for the nine months ended March 31, 2019 and 2018, respectively. As of March 31, 2019, the Company has provided for its best estimate of the liability for the claims that have been filed and costs incurred, including liabilities associated with employment taxes, and has accrued approximately $54 million. The amount to be indemnified by FOX of approximately $51 million was recorded as a receivable in Other current assets on the Balance Sheet as of March 31, 2019. The net benefit for the nine months ended March 31, 2018 reflects a $46 million impact from the reversal of a portion of the Company’s previously accrued liability and the corresponding receivable as the result of an agreement reached with the relevant tax authority with respect to certain employment taxes. It is not possible to estimate the liability or corresponding receivable for any additional claims that may be filed given the information that is currently available to the Company. If more claims are filed and additional information becomes available, the Company will update the liability provision and corresponding receivable for such matters.

31

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The Company is not able to predict the ultimate outcome or cost of the civil claims. It is possible that these proceedings and any adverse resolution thereof could damage its reputation, impair its ability to conduct its business and adversely affect its results of operations and financial condition.

Other

The Company’s tax returns are subject to on-going review and examination by various tax authorities. Tax authorities may not agree with the treatment of items reported in the Company’s tax returns, and therefore the outcome of tax reviews and examinations can be unpredictable.

The Company believes it has appropriately accrued for the expected outcome of uncertain tax matters and believes such liabilities represent a reasonable provision for taxes ultimately expected to be paid; however, these liabilities may need to be adjusted as new information becomes known and as tax examinations continue to progress, or as settlements or litigations occur.

NOTE 12. INCOME TAXES

At the end of each interim period, the Company estimates the annual effective tax rate and applies that rate to its ordinary quarterly earnings. The tax expense or benefit related to significant, unusual or extraordinary items that will be separately reported or reported net of their related tax effect are individually computed and recognized in the interim period in which those items occur. In addition, the effects of changes in enacted tax laws or rates or tax status are recognized in the interim period in which the change occurs.

For the three months ended March 31, 2019, the Company recorded income tax expense of $7 million on pre-tax income of $30 million resulting in an effective tax rate that was higher than the U.S. statutory tax rate. The higher tax rate was primarily due to valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses and the impact from foreign operations which are subject to higher tax rates.

For the nine months ended March 31, 2019, the Company recorded income tax expense of $112 million on pre-tax income of $382 million resulting in an effective tax rate that was higher than the U.S. statutory tax rate. The higher tax rate was primarily due to valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses and the impact from foreign operations which are subject to higher tax rates.

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act includes significant changes to the U.S. corporate income tax system including, among other things, lowering the U.S. statutory federal tax rate to 21%. The reduction of the U.S. corporate tax rate caused the Company to adjust its U.S. deferred tax assets and liabilities to the lower federal rate of 21% at the fiscal year ended June 30, 2018. The Tax Act also added many new provisions, including a one-time repatriation tax on deemed repatriation of historical earnings of foreign subsidiaries (“transition tax”), changes to bonus depreciation, limits on deductions for executive compensation and interest expense, a tax on global intangible low-taxed income (“GILTI”), the base erosion anti-abuse tax (“BEAT”) and a deduction for foreign-derived intangible income. The Company has elected to account for the tax on GILTI and BEAT as a period cost and thus has not adjusted any net deferred tax assets of its foreign subsidiaries for the new tax. However, the Company has considered the potential impact of GILTI and BEAT on its U.S. federal net operating loss (“NOL”) carryforward and determined that the projected tax benefit to be received from its NOL carryforward may be reduced due to these provisions.

The changes included in the Tax Act are broad and complex. The SEC issued Staff Accounting Bulletin No. 118 (SAB 118), as amended by ASU 2018-05, which provides guidance for companies related to the Tax Act. ASU 2018-05 allows for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. The Company’s accounting for the tax effects of the Tax Act were completed in the second quarter of fiscal 2019. Although the Company believes the effects of the Tax Act have been appropriately recorded, it will continue to monitor, among other things, changes in interpretations of the Tax Act, any legislative action arising because of the Tax Act and any

32

NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

changes in accounting standards for income taxes or related interpretations in response to the Tax Act. The Company intends to monitor and assess the impact of any future changes in legislative interpretations or standards and adjust its provision as new information becomes available. In accordance with SAB 118, the Company has made reasonable estimates related to (1) the remeasurement of its U.S. deferred tax balances for the reduction in the statutory tax rate, (2) the liability for the transition tax and (3) the partial valuation allowance recorded against its federal NOL carryforward due to the impact of the GILTI and BEAT provisions. As a result, the Company recognized a net provisional income tax expense of $237 million associated with these items in the fiscal year ended June 30, 2018. In the second quarter of fiscal 2019, the Company determined that there were no material changes to the provisional amounts recorded as of June 30, 2018.

Management assesses available evidence to determine whether sufficient future taxable income will be generated to permit the use of existing deferred tax assets. Based on management’s assessment of available evidence, it has been determined that it is more likely than not that certain deferred tax assets in U.S. Federal, State and foreign jurisdictions may not be realized and therefore, a valuation allowance has been established against those tax assets.

For the three months ended March 31, 2018, the Company recorded income tax expense of $3 million on a pre-tax loss of $1,107 million, resulting in an effective tax rate that was lower than the U.S. statutory tax rate. The lower tax rate was primarily due to a lower net tax benefit on the non-cash write-down of assets and investments in Australia and the U.S., and valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses.

For the nine months ended March 31, 2018, the Company recorded income tax expense of $292 million on a pre-tax loss of $797 million, resulting in an effective tax rate that was lower than the U.S. statutory tax rate. The lower tax rate was primarily due to a lower net tax benefit on the non-cash write-down of assets and investments in Australia and the U.S., valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses and the tax charge resulting from the enactment of the Tax Act which caused an increase in income tax expense of $174 million.

The Company’s tax returns are subject to on-going review and examination by various tax authorities. Tax authorities may not agree with the treatment of items reported in our tax returns, and therefore the outcome of tax reviews and examinations can be unpredictable. The Company is currently undergoing tax examinations by the Internal Revenue Service (“IRS”), various U.S. state and foreign jurisdictions. During the fiscal year ended June 30, 2018, the IRS commenced an audit of the Company for the fiscal year ended June 30, 2014. The Company believes it has appropriately accrued for the expected outcome of uncertain tax matters and believes such liabilities represent a reasonable provision for taxes ultimately expected to be paid. However, the Company may need to accrue additional income tax expense and its liability may need to be adjusted as new information becomes known and as these tax examinations continue to progress, or as settlements or litigations occur.

The Company paid gross income taxes of $107 million and $116 million during the nine months ended March 31, 2019 and 2018, respectively, and received tax refunds of $17 million and $6 million, respectively.

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 Barron’s Group, which includes Barron’s and MarketWatch, the Company’s suite of professional information products, including Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires and DJX, and its live journalism events. The Company also owns, among other publications, The Australian, The Daily Telegraph, Herald Sun, The Courier Mail and The Advertiser 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 global video advertising marketplace, Wireless Group, operator of talkSPORT, the leading sports radio network in the U.K., and Storyful, a social media content agency.

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NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

• Subscription Video Services—The Company’s Subscription Video Services segment provides video sports, entertainment and news services to pay-TV subscribers and other commercial licensees, primarily via cable, satellite and Internet Protocol, or IP, distribution, and consists of (i) its 65% interest in new Foxtel and (ii) Australian News Channel Pty Ltd (“ANC”). The remaining 35% interest in new Foxtel is held by Telstra, an Australian Securities Exchange (“ASX”)-listed telecommunications company. New Foxtel is the largest pay-TV provider in Australia, with over 200 channels covering sports, general entertainment, movies, documentaries, music, children’s programming and news and broadcast rights to live sporting events in Australia including: National Rugby League, Australian Football League, Cricket Australia, the domestic football league, the Australian Rugby Union and various motorsports programming. New Foxtel also operates Kayo Sports, a sports-only streaming service.

ANC operates the SKY NEWS network, Australia’s 24-hour multi-channel, multi-platform news service. ANC channels are distributed throughout Australia and New Zealand and available on Foxtel and Sky Network Television NZ. ANC also owns and operates the international Australia Channel IPTV service and offers content across a variety of digital media platforms, including mobile, podcasts and social media websites.

• Book Publishing—The Book Publishing segment consists of HarperCollins, the second largest consumer book publisher in the world, with operations in 17 countries and particular strengths in general fiction, nonfiction, children’s and religious publishing. HarperCollins owns more than 120 branded publishing imprints, including Harper, William Morrow, HarperCollins Children’s Books, Avon, Harlequin and Christian publishers Zondervan and Thomas Nelson, and publishes works by well-known authors such as Harper Lee, Chip and Joanna Gaines, Rick Warren, Sarah Young and Agatha Christie and popular titles such as The Hobbit, Goodnight Moon, To Kill a Mockingbird, Jesus Calling and Hillbilly Elegy.

• Digital Real Estate Services—The Digital Real Estate Services segment consists of the Company’s 61.6% interest in REA Group and 80% interest in Move. The remaining 20% interest in Move is held by REA Group. REA Group is a market-leading digital media business specializing in property and is listed on the ASX (ASX: REA). REA Group advertises property and property-related services on its websites and mobile applications across Australia and Asia, including Australia’s leading residential and commercial property websites, realestate.com.au and realcommercial.com.au, and property portals in Asia. In addition, REA Group provides property-related data to the financial sector and financial services through an end-to-end digital property search and financing experience and a mortgage broking offering.

Move is a leading provider of 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 Connections^SM Plus and Advantage^SM Pro products as well as its Opcity performance-based product. Move also offers a number of professional software and services products, including Top Producer^®, FiveStreet^® and ListHub^TM.

• Other—The Other segment consists primarily of general corporate overhead expenses, the corporate Strategy Group and costs related to the U.K. Newspaper Matters. The Company’s Strategy Group identifies new products and services across its businesses to increase revenues and profitability and targets and assesses 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 of affiliates, interest (expense) income, net, other, net and income tax (expense) benefit. Segment EBITDA may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what items should be included in the calculation of Segment EBITDA.

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

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NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Segment information is summarized as follows:

	For the three months ended March 31,						For the nine months ended March 31,
	2019			2018			2019			2018
	(in millions)
Revenues:
News and Information Services	$	1,224		$	1,286		$	3,729		$	3,825
Subscription Video Services		539			129			1,666			394
Book Publishing		421			398			1,335			1,268
Digital Real Estate Services		272			279			876			842
Other		1			1			2			2
Total revenues	$	2,457		$	2,093		$	7,608		$	6,331
Segment EBITDA:
News and Information Services	$	73		$	87		$	309		$	302
Subscription Video Services		98			16			295			76
Book Publishing		53			41			209			167
Digital Real Estate Services		74			88			300			302
Other		(51	)		(51	)		(138	)		(90	)
Depreciation and amortization		(168	)		(100	)		(494	)		(297	)
Impairment and restructuring charges		(34	)		(246	)		(71	)		(273	)
Equity losses of affiliates		(4	)		(974	)		(13	)		(1,002	)
Interest (expense) income, net		(14	)		2			(45	)		9
Other, net		3			30			30			9
Income (loss) before income tax expense		30			(1,107	)		382			(797	)
Income tax expense		(7	)		(3	)		(112	)		(292	)
Net income (loss)	$	23		$	(1,110	)	$	270		$	(1,089	)

	As of March 31, 2019		As of June 30, 2018
	(in millions)
Total assets:
News and Information Services	$	5,840	$	6,039
Subscription Video Services		4,495		4,738
Book Publishing		2,073		1,898
Digital Real Estate Services		2,209		2,171
Other(a)		1,094		1,107
Investments		347		393
Total assets	$	16,058	$	16,346

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

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NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

	As of March 31, 2019		As of June 30, 2018
	(in millions)
Goodwill and intangible assets, net:
News and Information Services	$	2,695	$	2,730
Subscription Video Services		2,662		2,853
Book Publishing		778		804
Digital Real Estate Services		1,602		1,502
Total Goodwill and intangible assets, net	$	7,737	$	7,889

NOTE 14. ADDITIONAL FINANCIAL INFORMATION

Receivables, net

Receivables are presented net of an allowance for doubtful accounts, which is an estimate of amounts that may not be collectible. The allowance for doubtful accounts is estimated based on historical experience, receivable aging, current economic trends and specific identification of certain receivables that are at risk of not being collected.

Receivables, net consist of:

	As of March 31, 2019			As of June 30, 2018
	(in millions)
Receivables	$	1,681		$	1,829
Allowance for sales returns(a)		—			(171	)
Allowance for doubtful accounts		(50	)		(46	)
Receivables, net	$	1,631		$	1,612

^(a) As a result of the adoption of the new revenue recognition standard during the first quarter of fiscal 2019, the Company reclassified the allowance for sales returns from Receivables, net to Other current liabilities. See Note 2—Revenues.

Other Non-Current Assets

The following table sets forth the components of Other non-current assets:

	As of March 31, 2019		As of June 30, 2018
	(in millions)
Royalty advances to authors	$	340	$	312
Retirement benefit assets		155		135
Inventory(a)		123		143
Other		295		241
Total Other non-current assets	$	913	$	831

(a) Primarily consists of the non-current portion of programming rights.

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NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Other Current Liabilities

The following table sets forth the components of Other current liabilities:

	As of March 31, 2019		As of June 30, 2018
	(in millions)
Royalties and commissions payable	$	241	$	187
Allowance for sales returns		198		—
Current tax payable		15		17
Other		291		168
Total Other current liabilities	$	745	$	372

Other, net

The following table sets forth the components of Other, net:

	For the three months ended March 31,						For the nine months ended March 31,
	2019			2018			2019			2018
	(in millions)
Dividends received from equity security investments	$	1		$	—		$	24		$	—
Remeasurement of equity securities(a)		6			—			(23	)		—
Write-down of available-for-sale securities(b)		—			(3	)		—			(33	)
Gain on sale of Australian property		2			—			14			—
Gain on sale of SEEKAsia(c)		—			32			—			32
Other, net(d)		(6	)		1			15			10
Total Other, net	$	3		$	30		$	30		$	9

^(a) As a result of the adoption of ASU 2016-01 during the first quarter of fiscal 2019, the Company has included the impact from the remeasurement of equity securities in Other, net in the Statement of Operations for the three and nine months ended March 31, 2019. During the three and nine months ended March 31, 2018, the impact from the remeasurement of equity securities was included in Accumulated other comprehensive loss in the Balance Sheets.

^(b) For the three and nine months ended March 31, 2018, the write-downs of available-for-sale securities were reclassified out of Accumulated other comprehensive loss and included in Other, net in the Statements of Operations.

^(c) During the three months ended March 31, 2018, the Company sold its investment in SEEKAsia for $122 million in cash and recognized a $32 million gain in Other, net in the Statements of Operations.

^(d) As a result of the adoption of ASU 2017-07 during the first quarter of fiscal 2019, the Company has included the other non-service cost components of net periodic benefit cost (income) in Other, net in the Statements of Operations for the three and nine months ended March 31, 2019 and 2018.

Supplemental Cash Flow Information

The following table sets forth the Company’s cash paid for taxes and interest:

	For the nine months ended March 31,
	2019		2018
	(in millions)
Cash paid for interest	$	67	$	8
Cash paid for taxes		107		116

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This document, including the following discussion and analysis contains statements that constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Section 27A of the Securities Act of 1933, as amended. All statements that are not statements of historical fact are forward-looking statements. The words “expect,” “estimate,” “anticipate,” “predict,” “believe” and similar expressions and variations thereof are intended to identify forward-looking statements. These statements appear in a number of places in this discussion and analysis and include statements regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things, trends affecting the Company’s financial condition or results of operations and the outcome of contingencies such as litigation and investigations. Readers are cautioned that any forward-looking statements are not guarantees of future performance and involve risks and uncertainties. More information regarding these risks, uncertainties and other important factors that could cause actual results to differ materially from those in the forward-looking statements is set forth under the heading “Risk Factors” in Part I, Item 1A in News Corporation’s Annual Report on Form 10-K for the fiscal year ended June 30, 2018 as filed with the Securities and Exchange Commission (the “SEC”) on August 15, 2018 (the “2018 Form 10-K”), and as may be updated in this and other subsequent Quarterly Reports on Form 10-Q. The Company does not ordinarily make projections of its future operating results and undertakes no obligation (and expressly disclaims any obligation) to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Readers should carefully review this document and the other documents filed by the Company with the SEC. This section should be read together with the unaudited consolidated financial statements of News Corporation and related notes set forth elsewhere herein and the audited consolidated financial statements of News Corporation and related notes set forth in the 2018 Form 10-K.

INTRODUCTION

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: news and information services, subscription video services in Australia, book publishing and digital real estate services.

The unaudited consolidated financial statements are referred to herein as the “Consolidated Financial Statements.” 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 Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”).

In April 2018, News Corp and Telstra Corporation Limited (“Telstra”) combined their respective 50% interests in Foxtel and News Corp’s 100% interest in FOX SPORTS Australia into a new company, which the Company refers to as “new Foxtel” (the “Transaction”). Following the completion of the Transaction, News Corp owns a 65% interest in the combined business, with Telstra owning the remaining 35%. Consequently, the Company began consolidating Foxtel in the fourth quarter of fiscal 2018. (See Note 3—Acquisitions, Disposals and Other Transactions in the accompanying Consolidated Financial Statements). The results of the combined business are reported within the Subscription Video Services segment (formerly the Cable Network Programming segment). To enhance the comparability of the financial information provided to users, the Company has supplementally included pro forma financial information for the three and nine months ended March 31, 2018 reflecting the Transaction within its discussion and analysis below.

Management’s discussion and analysis of financial condition and results of operations is intended to help provide an understanding of the Company’s financial condition, changes in financial condition and results of operations. This discussion is organized as follows:

• Overview of the Company’s Businesses - This section provides a general description of the Company’s businesses, as well as developments that occurred to date during fiscal 2019 that the Company believes are important in understanding its results of operations and financial condition or to disclose known trends.

• Results of Operations - This section provides an analysis of the Company’s results of operations for the three and nine months ended March 31, 2019 and 2018. This analysis is presented on both a consolidated basis and a segment basis. In addition, a brief description is provided of significant transactions and events that impact the

38

comparability of the results being analyzed. To enhance the comparability of the financial information provided to users, the Company has supplementally included pro forma financial information for the three and nine months ended March 31, 2018 reflecting the Transaction within its discussion and analysis below.

• Liquidity and Capital Resources - This section provides an analysis of the Company’s cash flows for the nine months ended March 31, 2019 and 2018, as well as a discussion of the Company’s financial arrangements and outstanding commitments, both firm and contingent, that existed as of March 31, 2019.

OVERVIEW OF THE COMPANY’S BUSINESSES

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 Barron’s Group, which includes Barron’s and MarketWatch, the Company’s suite of professional information products, including Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires and DJX, and its live journalism events. The Company also owns, among other publications, The Australian, The Daily Telegraph, Herald Sun, The Courier Mail and The Advertiser 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 global video advertising marketplace, Wireless Group, operator of talkSPORT, the leading sports radio network in the U.K., and Storyful, a social media content agency.

• Subscription Video Services—The Company’s Subscription Video Services segment provides video sports, entertainment and news services to pay-TV subscribers and other commercial licensees, primarily via cable, satellite and Internet Protocol, or IP, distribution, and consists of (i) its 65% interest in new Foxtel and (ii) Australian News Channel Pty Ltd (“ANC”). The remaining 35% interest in new Foxtel is held by Telstra, an Australian Securities Exchange (“ASX”)-listed telecommunications company. New Foxtel is the largest pay-TV provider in Australia, with over 200 channels covering sports, general entertainment, movies, documentaries, music, children’s programming and news and broadcast rights to live sporting events in Australia including: National Rugby League, Australian Football League, Cricket Australia, the domestic football league, the Australian Rugby Union and various motorsports programming. New Foxtel also operates Kayo Sports, a sports-only streaming service.

ANC operates the SKY NEWS network, Australia’s 24-hour multi-channel, multi-platform news service. ANC channels are distributed throughout Australia and New Zealand and available on Foxtel and Sky Network Television NZ. ANC also owns and operates the international Australia Channel IPTV service and offers content across a variety of digital media platforms, including mobile, podcasts and social media websites.

• Book Publishing—The Book Publishing segment consists of HarperCollins, the second largest consumer book publisher in the world, with operations in 17 countries and particular strengths in general fiction, nonfiction, children’s and religious publishing. HarperCollins owns more than 120 branded publishing imprints, including Harper, William Morrow, HarperCollins Children’s Books, Avon, Harlequin and Christian publishers Zondervan and Thomas Nelson, and publishes works by well-known authors such as Harper Lee, Chip and Joanna Gaines, Rick Warren, Sarah Young and Agatha Christie and popular titles such as The Hobbit, Goodnight Moon, To Kill a Mockingbird, Jesus Calling and Hillbilly Elegy.

• Digital Real Estate Services—The Digital Real Estate Services segment consists of the Company’s 61.6% interest in REA Group and 80% interest in Move. The remaining 20% interest in Move is held by REA Group. REA Group is a market-leading digital media business specializing in property and is listed on the ASX (ASX: REA). REA Group advertises property and property-related services on its websites and mobile applications across Australia and Asia, including Australia’s leading residential and commercial property websites, realestate.com.au and realcommercial.com.au, and property portals in Asia. In addition, REA Group provides property-related data to the financial sector and financial services through an end-to-end digital property search and financing experience and a mortgage broking offering.

39

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 Connections^SM Plus and Advantage^SM Pro products as well as its Opcity performance-based product. Move also offers a number of professional software and services products, including Top Producer^®, FiveStreet^® and ListHub^TM.

• Other—The Other segment consists primarily of general corporate overhead expenses, the corporate Strategy Group and costs related to the U.K. Newspaper Matters (as defined in Note 11 to the Consolidated Financial Statements). The Company’s Strategy Group identifies new products and services across its businesses to increase revenues and profitability and targets and assesses potential acquisitions, investments and dispositions.

Other Business Developments

In October 2018, the Company acquired Opcity Inc. (“Opcity”), a market-leading real estate technology platform that matches qualified home buyers and sellers with real estate professionals in real time. The total transaction value was approximately $210 million, consisting of approximately $182 million in cash, net of $7 million of cash acquired, and approximately $28 million in deferred payments and restricted stock unit awards for Opcity’s founders and qualifying employees, which is being recognized as compensation expense over the three years following the closing. Included in the cash amount was approximately $20 million that is being held back for approximately 18 months after closing. Opcity is a subsidiary of Move, and its results are included within the Digital Real Estate Services segment.

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RESULTS OF OPERATIONS

Results of Operations—For the three and nine months ended March 31, 2019 versus the three and nine months ended March 31, 2018 (as reported)

The following table sets forth the Company’s operating results for the three and nine months ended March 31, 2019 as compared to the three and nine months ended March 31, 2018.

	For the three months ended March 31,											For the nine months ended March 31,
	2019			2018			Change			% Change		2019			2018			Change			% Change
(in millions, except %)							Better/(Worse)											Better/(Worse)
Revenues:
Circulation and subscription	$	1,025		$	659		$	366			56 %	$	3,088		$	1,947		$	1,141			59 %
Advertising		670			702			(32	)		(5)%		2,052			2,101			(49	)		(2)%
Consumer		403			381			22			6 %		1,281			1,220			61			5 %
Real estate		218			208			10			5 %		693			633			60			9 %
Other		141			143			(2	)		(1)%		494			430			64			15 %
Total Revenues		2,457			2,093			364			17 %		7,608			6,331			1,277			20 %
Operating expenses		(1,400	)		(1,151	)		(249	)		(22)%		(4,224	)		(3,439	)		(785	)		(23)%
Selling, general and administrative		(810	)		(761	)		(49	)		(6)%		(2,409	)		(2,135	)		(274	)		(13)%
Depreciation and amortization		(168	)		(100	)		(68	)		(68)%		(494	)		(297	)		(197	)		(66)%
Impairment and restructuring charges		(34	)		(246	)		212			86 %		(71	)		(273	)		202			74 %
Equity losses of affiliates		(4	)		(974	)		970			100 %		(13	)		(1,002	)		989			99 %
Interest (expense) income, net		(14	)		2			(16	)		**		(45	)		9			(54	)		**
Other, net		3			30			(27	)		(90)%		30			9			21			**
Income (loss) before income tax expense		30			(1,107	)		1,137			**		382			(797	)		1,179			**
Income tax expense		(7	)		(3	)		(4	)		**		(112	)		(292	)		180			62 %
Net income (loss)		23			(1,110	)		1,133			**		270			(1,089	)		1,359			**
Less: Net income attributable to noncontrolling interests		(13	)		(18	)		5			28 %		(64	)		(54	)		(10	)		(19)%
Net income (loss) attributable to News Corporation stockholders	$	10		$	(1,128	)	$	1,138			**	$	206		$	(1,143	)	$	1,349			**

** not meaningful

Revenues— Revenues increased $364 million, or 17%, and $1,277 million, or 20%, for the three and nine months ended March 31, 2019, respectively, as compared to the corresponding periods of fiscal 2018.

The Revenue increase for the three months ended March 31, 2019 was primarily due to higher revenues at the Subscription Video Services segment of $410 million resulting in large part from the Transaction, which contributed $418 million to the increase. The Revenue increase was also attributable to higher revenues of $23 million at the Book Publishing segment. These increases were partially offset by lower revenues at the News and Information Services segment of $62 million, primarily due to the $52 million negative impact of foreign currency fluctuations, weakness in the print advertising market and lower revenues at News America Marketing of $20 million, partially offset by cover and subscription price increases and digital subscriber growth, primarily at The Wall Street Journal and in Australia. The impact of foreign currency fluctuations of the U.S. dollar against local currencies resulted in a Revenue decrease of $90 million for the three months ended March 31, 2019 as compared to the corresponding period of fiscal 2018.

41

The Revenue increase for the nine months ended March 31, 2019 was primarily due to higher revenues at the Subscription Video Services segment of $1,272 million resulting in large part from the Transaction, which contributed $1,289 million to the increase. The Revenue increase was also attributable to higher revenues of $67 million and $34 million at the Book Publishing and Digital Real Estate Services segments, respectively, partially offset by lower revenues at the News and Information Services segment of $96 million, primarily due to the $114 million negative impact of foreign currency fluctuations, weakness in the print advertising market and lower revenues at News America Marketing of $47 million, partially offset by cover and subscription price increases and digital subscriber growth, primarily at The Wall Street Journal and in Australia. The impact of foreign currency fluctuations of the U.S. dollar against local currencies resulted in a Revenue decrease of $206 million for the nine months ended March 31, 2019 as compared to the corresponding period of fiscal 2018.

The Company calculates the impact of foreign currency fluctuations for businesses reporting in currencies other than the U.S. dollar by multiplying the results for each quarter in the current period by the difference between the average exchange rate for that quarter and the average exchange rate in effect during the corresponding quarter of the prior year and totaling the impact for all quarters in the current period.

Operating expenses— Operating expenses increased $249 million, or 22%, and $785 million, or 23%, for the three and nine months ended March 31, 2019, respectively, as compared to the corresponding periods of fiscal 2018.

The increase in Operating expenses for the three months ended March 31, 2019 was mainly due to higher operating expenses at the Subscription Video Services segment of $272 million primarily resulting from the Transaction. The impact of foreign currency fluctuations of the U.S. dollar against local currencies resulted in an Operating expense decrease of $47 million for the three months ended March 31, 2019 as compared to the corresponding period of fiscal 2018.

The increase in Operating expenses for the nine months ended March 31, 2019 was mainly due to higher operating expenses at the Subscription Video Services segment of $825 million primarily resulting from the Transaction. The impact of foreign currency fluctuations of the U.S. dollar against local currencies resulted in an Operating expense decrease of $97 million for the nine months ended March 31, 2019 as compared to the corresponding period of fiscal 2018.

Selling, general and administrative—Selling, general and administrative expenses increased $49 million, or 6%, and $274 million, or 13%, for the three and nine months ended March 31, 2019, respectively, as compared to the corresponding periods of fiscal 2018.

The increase in Selling, general and administrative expenses for the three months ended March 31, 2019 was primarily due to higher expenses of $56 million at the Subscription Video Services segment, primarily as a result of the Transaction. The impact of foreign currency fluctuations of the U.S. dollar against local currencies resulted in a Selling, general and administrative expense decrease of $34 million for the three months ended March 31, 2019 as compared to the corresponding period of fiscal 2018.

The increase in Selling, general and administrative expenses for the nine months ended March 31, 2019 was primarily due to higher expenses of $228 million at the Subscription Video Services segment, primarily as a result of the Transaction, and the absence of the $46 million impact from the reversal of a portion of the previously accrued liability for the U.K. Newspaper Matters and the corresponding receivable as the result of an agreement reached with the relevant tax authority with respect to certain employment taxes in the first quarter of fiscal 2018. The impact of foreign currency fluctuations of the U.S. dollar against local currencies resulted in a Selling, general and administrative expense decrease of $76 million for the nine months ended March 31, 2019 as compared to the corresponding period of fiscal 2018.

Depreciation and amortization— Depreciation and amortization expense increased $68 million, or 68%, and $197 million, or 66%, for the three and nine months ended March 31, 2019, respectively, as compared to the corresponding periods of fiscal 2018. The increase for the three and nine months ended March 31, 2019 was primarily as a result of an additional $66 million and $195 million, respectively, of depreciation and amortization expense at the Subscription Video Services segment, primarily due to the Transaction.

Impairment and restructuring charges— During the three and nine months ended March 31, 2019, the Company recorded restructuring charges of $25 million and $62 million, respectively. During the three and nine months ended March 31, 2018, the Company recorded restructuring charges of $21 million and $48 million, respectively.

42

During the three and nine months ended March 31, 2018, the Company recognized non-cash impairment charges of $225 million primarily related to the impairment of goodwill and intangible assets at the News America Marketing reporting unit and impairment of goodwill at the FOX SPORTS Australia reporting unit.

See Note 4—Impairment and Restructuring Charges in the accompanying Consolidated Financial Statements.

The Company continually evaluates whether current factors or indicators require the performance of an interim impairment assessment of goodwill, long-lived assets and investments. The valuation of goodwill and long-lived assets requires assumptions and estimates of many factors, including revenue and market growth, operating cash flows, market multiples and discount rates. In the quarter ended December 31, 2018, the Company revised its future outlook for a reporting unit within the Subscription Video Services segment primarily due to declines in Australian broadcast subscribers during the first half of fiscal 2019.

As a result, the Company determined that this reporting unit has goodwill and an indefinite-lived tradename that are considered to be at risk for future impairment because the fair value of the reporting unit exceeded its carrying value by approximately 6% as of December 31, 2018. Significant unobservable inputs utilized in the income approach valuation method for this reporting unit and the indefinite-lived tradename were discount rates (ranging from 10.0%-11.0%), long-term growth rates (2.0%) and royalty rates (1.5%). Significant unobservable inputs utilized in the market approach valuation method were EBITDA multiples from guideline public companies operating in similar industries and a control premium of 10%. For the analysis performed, a 75 basis point increase in the discount rate or a 100 basis point decrease in the long-term growth rate would have resulted in the reporting unit failing the interim impairment analysis. Any change in assumptions related to the valuation of the indefinite-lived tradename would have resulted in an impairment of such asset.

Including the reporting unit within the News and Information Services segment disclosed in the 2018 Form 10-K, the Company has reporting units with goodwill and an indefinite-lived tradename of approximately $2.3 billion at March 31, 2019 that are at risk for future impairment, of which $2.1 billion related to the Subscription Video Services segment and $0.2 billion related to the News and Information Services segment.

Equity losses of affiliates— Equity losses of affiliates improved $970 million and $989 million for the three and nine months ended March 31, 2019, respectively, as compared to the corresponding periods of fiscal 2018. The decrease in losses for the three and nine months ended March 31, 2019 was primarily due to the absence of a $957 million non-cash write-down of the carrying value of the Company’s investment in Foxtel recognized in the third quarter of fiscal 2018.

	For the three months ended March 31,										For the nine months ended March 31,
	2019			2018			Change		% Change		2019			2018			Change		% Change
(in millions, except %)							Better/(Worse)										Better/(Worse)
Foxtel(a)	$	—		$	(970	)	$	970		**	$	—		$	(974	)	$	974		**
Other equity affiliates, net(b)		(4	)		(4	)		—		—		(13	)		(28	)		15		54%
Total Equity losses of affiliates	$	(4	)	$	(974	)	$	970		100%	$	(13	)	$	(1,002	)	$	989		99%

** not meaningful

^(a) Following completion of the Transaction in April 2018, News Corp ceased accounting for Foxtel as an equity method investment and began consolidating its results in the fourth quarter of fiscal 2018. See Note 3—Acquisitions, Disposals and Other Transactions and Note 5—Investments in the accompanying Consolidated Financial Statements.

During the three and nine months ended March 31, 2018, the Company recognized a $957 million non-cash write-down of the carrying value of its investment in Foxtel. See Note 5—Investments in the accompanying Consolidated Financial Statements.

In accordance with ASC 350, “Intangibles—Goodwill and Other”, the Company amortized $17 million and $49 million related to excess cost over the Company’s proportionate share of its investment’s underlying net assets allocated to finite-lived intangible assets during the three and nine months ended March 31, 2018, respectively. Such amortization was reflected in Equity losses of affiliates in the Statements of Operations.

43

^(b) Other equity affiliates, net for the three and nine months ended March 31, 2019 include losses primarily from the Company’s interest in Elara. During the nine months ended March 31, 2018, the Company recognized $13 million in non-cash write-downs of certain equity method investments’ carrying values. The write-downs were reflected in Equity losses of affiliates in the Statements of Operations for the nine months ended March 31, 2018.

Interest (expense) income, net— Interest (expense) income, net was ($14) million and ($45) million for the three and nine months ended March 31, 2019, respectively, as compared to $2 million and $9 million, respectively, in the corresponding periods of fiscal 2018. The increase in interest expense during the three and nine months ended March 31, 2019 was primarily due to higher interest expense as a result of the Transaction. As a result of the Transaction, the Company consolidated outstanding debt of approximately $1.8 billion. See Note 6—Borrowings in the accompanying Consolidated Financial Statements.

Other, net— Other, net deteriorated by $27 million and improved by $21 million for the three and nine months ended March 31, 2019, respectively, as compared to the corresponding periods of fiscal 2018. See Note 14—Additional Financial Information in the accompanying Consolidated Financial Statements.

Income tax expense— For the three months ended March 31, 2019, the Company recorded income tax expense of $7 million on pre-tax income of $30 million, resulting in an effective tax rate that was higher than the U.S. statutory tax rate. The higher tax rate was primarily due to valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses and the impact from foreign operations which are subject to higher tax rates.

For the nine months ended March 31, 2019, the Company recorded income tax expense of $112 million on pre-tax income of $382 million, resulting in an effective tax rate that was higher than the U.S. statutory tax rate. The higher tax rate was primarily due to valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses and the impact from foreign operations which are subject to higher tax rates.

For the three months ended March 31, 2018, the Company recorded income tax expense of $3 million on a pre-tax loss of $1,107 million, resulting in an effective tax rate that was lower than the U.S. statutory tax rate. The lower tax rate was primarily due to a lower net tax benefit on the non-cash write-down of assets and investments in Australia and the U.S., and valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses.

For the nine months ended March 31, 2018, the Company recorded income tax expense of $292 million on a pre-tax loss of $797 million, resulting in an effective tax rate that was lower than the U.S. statutory tax rate. The lower tax rate was primarily due to a lower net tax benefit on the non-cash write-down of assets and investments in Australia and the U.S., valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses and the tax charge resulting from the enactment of the Tax Act which caused an increase in income tax expense of $174 million.

Management assesses available evidence to determine whether sufficient future taxable income will be generated to permit the use of existing deferred tax assets. Based on management’s assessment of available evidence, it has been determined that it is more likely than not that certain deferred tax assets in U.S. Federal, State and foreign jurisdictions may not be realized and therefore, a valuation allowance has been established against those tax assets.

Net income (loss) — Net income improved by $1,133 million and $1,359 million for the three and nine months ended March 31, 2019, respectively, as compared to the corresponding periods of fiscal 2018.

The improvement in net income during the three months ended March 31, 2019 was primarily due to lower Equity losses of affiliates resulting from the absence of the $957 million non-cash write-down of the carrying value of the Company’s investment in Foxtel, lower Impairment and restructuring charges resulting from the absence of non-cash impairment charges of $225 million primarily related to the impairment of goodwill and intangible assets at the News America Marketing reporting unit and impairment of goodwill at the FOX SPORTS Australia reporting unit and higher Total Segment EBITDA, partially offset by higher Depreciation and amortization.

44

The improvement in net income during the nine months ended March 31, 2019 was primarily due to lower Equity losses of affiliates resulting from the absence of the $957 million non-cash write-down of the carrying value of the Company’s investment in Foxtel, lower Impairment and restructuring charges resulting from the absence of non-cash impairment charges of $225 million primarily related to the impairment of goodwill and intangible assets at the News America Marketing reporting unit and impairment of goodwill at the FOX SPORTS Australia reporting unit, higher Total Segment EBITDA and the absence of the $174 million negative impact of the Tax Act recognized in the second quarter of fiscal 2018, partially offset by higher Depreciation and amortization.

Net income attributable to noncontrolling interests—Net income attributable to noncontrolling interests decreased by $5 million and increased $10 million for the three and nine months ended March 31, 2019, respectively, as compared to the corresponding periods of fiscal 2018.

The decrease in Net income attributable to noncontrolling interests for the three months ended March 31, 2019 was primarily due to the noncontrolling interest in new Foxtel.

The increase in Net income attributable to noncontrolling interests for the nine months ended March 31, 2019 was primarily due to higher results at REA Group, partially offset by the noncontrolling interest in new Foxtel.

Segment Analysis

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

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

Total Segment EBITDA is a non-GAAP measure and should be considered in addition to, not as a substitute for, net income (loss), 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 the presentation of Total Segment EBITDA provides useful information regarding the Company’s operations and other factors that affect the Company’s reported results. Specifically, the Company believes that by excluding certain one-time or non-cash items such as impairment and restructuring charges and depreciation and amortization, as well as potential distortions between periods caused by factors such as financing and capital structures and changes in tax positions or regimes, the Company provides users of its consolidated financial statements with insight into both its core operations as well as the factors that affect reported results between periods but which the Company believes are not representative of its core business. As a result, users of the Company’s consolidated financial statements are better able to evaluate changes in the core operating results of the Company across different periods.

45

The following table reconciles Net income (loss) to Total Segment EBITDA for the three and nine months ended March 31, 2019 and 2018:

	For the three months ended March 31,						For the nine months ended March 31,
	2019			2018			2019			2018
(in millions, except %)
Net income (loss)	$	23		$	(1,110	)	$	270		$	(1,089	)
Add:
Income tax expense		7			3			112			292
Other, net		(3	)		(30	)		(30	)		(9	)
Interest expense (income), net		14			(2	)		45			(9	)
Equity losses of affiliates		4			974			13			1,002
Impairment and restructuring charges		34			246			71			273
Depreciation and amortization		168			100			494			297
Total Segment EBITDA	$	247		$	181		$	975		$	757

The following tables set forth the Company’s Revenues and Segment EBITDA for the three and nine months ended March 31, 2019 and 2018:

	For the three months ended March 31,
	2019					2018
(in millions)	Revenues		Segment EBITDA			Revenues		Segment EBITDA
News and Information Services	$	1,224	$	73		$	1,286	$	87
Subscription Video Services		539		98			129		16
Book Publishing		421		53			398		41
Digital Real Estate Services		272		74			279		88
Other		1		(51	)		1		(51	)
Total	$	2,457	$	247		$	2,093	$	181

	For the nine months ended March 31,
	2019					2018
(in millions)	Revenues		Segment EBITDA			Revenues		Segment EBITDA
News and Information Services	$	3,729	$	309		$	3,825	$	302
Subscription Video Services		1,666		295			394		76
Book Publishing		1,335		209			1,268		167
Digital Real Estate Services		876		300			842		302
Other		2		(138	)		2		(90	)
Total	$	7,608	$	975		$	6,331	$	757

46

News and Information Services (49% and 61% of the Company’s consolidated revenues in the nine months ended March 31, 2019 and 2018, respectively)

	For the three months ended March 31,											For the nine months ended March 31,
	2019			2018			Change			% Change		2019			2018			Change			% Change
(in millions, except %)							Better/(Worse)											Better/(Worse)
Revenues:
Circulation and subscription	$	538		$	536		$	2			—	$	1,593		$	1,578		$	15			1 %
Advertising		593			649			(56	)		(9)%		1,801			1,936			(135	)		(7)%
Other		93			101			(8	)		(8)%		335			311			24			8 %
Total Revenues		1,224			1,286			(62	)		(5)%		3,729			3,825			(96	)		(3)%
Operating expenses		(700	)		(738	)		38			5  %		(2,122	)		(2,196	)		74			3  %
Selling, general and administrative		(451	)		(461	)		10			2  %		(1,298	)		(1,327	)		29			2  %
Segment EBITDA	$	73		$	87		$	(14	)		(16)%	$	309		$	302		$	7			2 %

Revenues at the News and Information Services segment decreased $62 million, or 5%, for the three months ended March 31, 2019 as compared to the corresponding period of fiscal 2018. The revenue decrease was primarily due to lower Advertising revenues of $56 million mainly due to weakness in the print advertising market, the $23 million negative impact of foreign currency fluctuations and lower revenues at News America Marketing of $20 million. Other revenues for the three months ended March 31, 2019 decreased $8 million as compared to the corresponding period of fiscal 2018, primarily due to the $7 million negative impact of foreign currency fluctuations and the absence of revenues from Sun Bets as a result of News UK’s exit from the partnership in the first quarter of fiscal 2019. Circulation and subscription revenues for the three months ended March 31, 2019 increased $2 million as compared to the corresponding period of fiscal 2018 primarily due to cover and subscription price increases, digital subscriber growth, primarily at The Wall Street Journal and in Australia, higher professional information business revenues at Dow Jones and the impact of the adoption of the new revenue recognition standard in Australia. These increases were partially offset by the $22 million negative impact of foreign currency fluctuations and print volume declines in Australia and in the U.K., primarily at The Sun. The impact of foreign currency fluctuations of the U.S. dollar against local currencies resulted in a revenue decrease of $52 million for the three months ended March 31, 2019 as compared to the corresponding period of fiscal 2018.

Segment EBITDA at the News and Information Services segment decreased $14 million, or 16%, for the three months ended March 31, 2019 as compared to the corresponding period of fiscal 2018. The decrease was mainly due to lower contribution from News America Marketing of $13 million primarily related to lower revenues.

Revenues at the News and Information Services segment decreased $96 million, or 3%, for the nine months ended March 31, 2019 as compared to the corresponding period of fiscal 2018. The revenue decrease was primarily due to lower Advertising revenues of $135 million mainly due to weakness in the print advertising market, the $56 million negative impact of foreign currency fluctuations and lower revenues at News America Marketing of $47 million, partially offset by digital advertising growth, primarily in Australia. Other revenues for the nine months ended March 31, 2019 increased $24 million as compared to the corresponding period of fiscal 2018 primarily due to the $42 million net benefit related to News UK’s exit from the partnership for Sun Bets in the first quarter of fiscal 2019, partially offset by the $14 million negative impact of foreign currency fluctuations and lower brand partnership revenues in the U.K. Circulation and subscription revenues increased $15 million as compared to the corresponding period of fiscal 2018 mainly due to cover and subscription price increases, digital subscriber growth, primarily at The Wall Street Journal and in Australia, higher professional information business revenues at Dow Jones and the impact of the adoption of the new revenue recognition standard in Australia. These increases were partially offset by the $44 million negative impact of foreign currency fluctuations and print volume declines in Australia and in the U.K., primarily at The Sun. The impact of foreign currency fluctuations of the U.S. dollar against local currencies resulted in a revenue decrease of $114 million for the nine months ended March 31, 2019 as compared to the corresponding period of fiscal 2018.

Segment EBITDA at the News and Information Services segment increased $7 million, or 2%, for the nine months ended March 31, 2019 as compared to the corresponding period of fiscal 2018. The increase was mainly due to higher contribution from Dow Jones of $15 million, primarily related to higher revenues, and from News Corp Australia of $14 million, primarily due to lower newsprint, production and distribution costs and cost savings initiatives, partially offset by lower contribution from News America Marketing of $17 million primarily related to lower revenues.

47

Dow Jones

Revenues were $381 million for the three months ended March 31, 2019, an increase of $5 million, or 1%, as compared to revenues of $376 million in the corresponding period of fiscal 2018. Circulation and subscription revenues increased $15 million, primarily due to the $10 million impact from digital subscriber growth and digital subscription price increases at The Wall Street Journal, as well as $6 million of higher professional information business revenues led by Risk & Compliance. Advertising revenues decreased $8 million, primarily due to weakness in the print advertising market and lower digital advertising revenues.

Revenues were $1,160 million for the nine months ended March 31, 2019, an increase of $33 million, or 3%, as compared to revenues of $1,127 million in the corresponding period of fiscal 2018. Circulation and subscription revenues increased $45 million, primarily due to the $34 million impact from digital subscriber growth and digital subscription price increases at The Wall Street Journal, as well as $15 million of higher professional information business revenues led by Risk & Compliance. Advertising revenues decreased $12 million, primarily due to weakness in the print advertising market.

News Corp Australia

Revenues at the Australian newspapers were $284 million for the three months ended March 31, 2019, a decrease of $22 million, or 7%, compared to revenues of $306 million in the corresponding period of fiscal 2018. The impact of foreign currency fluctuations of the U.S. dollar against local currencies resulted in a revenue decrease of $29 million, or 9%, for the three months ended March 31, 2019 as compared to the corresponding period of fiscal 2018. Advertising revenues decreased $15 million, primarily due to the $16 million negative impact of foreign currency fluctuations and the $12 million impact of weakness in the print advertising market, partially offset by a $7 million increase from the acquisition of an integrated content marketing agency. Circulation and subscription revenues decreased $7 million primarily due to the $10 million negative impact of foreign currency fluctuations and print volume declines, partially offset by digital subscriber growth, cover price increases and the impact of the adoption of the new revenue recognition standard.

Revenues at the Australian newspapers were $902 million for the nine months ended March 31, 2019, a decrease of $60 million, or 6%, compared to revenues of $962 million in the corresponding period of fiscal 2018. The impact of foreign currency fluctuations of the U.S. dollar against local currencies resulted in a revenue decrease of $76 million, or 8%, for the nine months ended March 31, 2019 as compared to the corresponding period of fiscal 2018. Advertising revenues decreased $50 million, primarily due to the $43 million negative impact of foreign currency fluctuations and the $39 million impact of weakness in the print advertising market, partially offset by the $17 million increase due to digital advertising growth and a $12 million increase from the acquisition of an integrated content marketing agency. Circulation and subscription revenues decreased $14 million primarily due to the $25 million negative impact of foreign currency fluctuations and print volume declines, partially offset by cover price increases, digital subscriber growth and the impact of the adoption of the new revenue recognition standard.

News UK

Revenues were $254 million for the three months ended March 31, 2019, a decrease of $23 million, or 8%, as compared to revenues of $277 million in the corresponding period of fiscal 2018. The decrease was due in part to lower Advertising revenues of $9 million, primarily due to weakness in the print advertising market and the $5 million negative impact of foreign currency fluctuations. Other revenues decreased $8 million, mainly due to the absence of revenues from Sun Bets resulting from the exit of the partnership in the first quarter of fiscal 2019 and the $3 million negative impact of foreign currency fluctuations. Circulation and subscription revenues also decreased $6 million, primarily due to the $9 million negative impact of foreign currency fluctuations, as cover price increases across mastheads offset single-copy volume declines, primarily at The Sun. The impact of foreign currency fluctuations of the U.S. dollar against local currencies resulted in a revenue decrease of $17 million for the three months ended March 31, 2019 as compared to the corresponding period of fiscal 2018.

48

Revenues were $794 million for the nine months ended March 31, 2019, a decrease of $19 million, or 2%, as compared to revenues of $813 million in the corresponding period of fiscal 2018. The decrease was due in part to lower Advertising revenues of $23 million, primarily due to weakness in the print advertising market and the $8 million negative impact of foreign currency fluctuations. Circulation and subscription revenues also decreased $17 million, primarily due to single-copy volume declines, primarily at The Sun, and the $14 million negative impact of foreign currency fluctuations, partially offset by the impact of cover price increases across mastheads. The decrease was partially offset by higher Other revenues of $21 million, mainly due to the $42 million net benefit related to the exit from the partnership for Sun Bets in the first quarter of fiscal 2019, partially offset by lower brand partnership revenues. The impact of foreign currency fluctuations of the U.S. dollar against local currencies resulted in a revenue decrease of $26 million for the nine months ended March 31, 2019 as compared to the corresponding period of fiscal 2018.

News America Marketing

Revenues at News America Marketing were $238 million for the three months ended March 31, 2019, a decrease of $20 million, or 8%, as compared to revenues of $258 million in the corresponding period of fiscal 2018. The decrease was primarily related to $26 million of lower home delivered revenues, which include free-standing insert products, mainly due to lower volume, partially offset by higher in-store revenues, primarily due to higher customer spending.

Revenues at News America Marketing were $657 million for the nine months ended March 31, 2019, a decrease of $47 million, or 7%, as compared to revenues of $704 million in the corresponding period of fiscal 2018. The decrease was primarily related to $51 million of lower home delivered revenues, which include free-standing insert products, mainly due to lower volume.

Subscription Video Services (22% and 6% of the Company’s consolidated revenues in the nine months ended March 31, 2019 and 2018, respectively)

	For the three months ended March 31,											For the nine months ended March 31,
	2019			2018			Change			% Change		2019			2018			Change			% Change
(in millions, except %)							Better/(Worse)											Better/(Worse)
Revenues:
Circulation and subscription	$	474		$	109		$	365			**	$	1,455		$	327		$	1,128			**
Advertising		50			18			32			**		162			60			102			**
Other		15			2			13			**		49			7			42			**
Total Revenues		539			129			410			**		1,666			394			1,272			**
Operating expenses		(374	)		(102	)		(272	)		**		(1,109	)		(284	)		(825	)		**
Selling, general and administrative		(67	)		(11	)		(56	)		**		(262	)		(34	)		(228	)		**
Segment EBITDA	$	98		$	16		$	82			**	$	295		$	76		$	219			**

** not meaningful

For the three months ended March 31, 2019, revenues at the Subscription Video Services segment increased $410 million and Segment EBITDA increased $82 million as compared to the corresponding period of fiscal 2018. The revenue and Segment EBITDA increases for the three months ended March 31, 2019 were primarily due to the Transaction, which contributed $418 million of revenue and $96 million of Segment EBITDA during the three months ended March 31, 2019. The impact of foreign currency fluctuations of the U.S. dollar against local currencies resulted in a revenue decrease of $13 million for the three months ended March 31, 2019 as compared to the corresponding period of fiscal 2018. See “Results of Operations—For the three and nine months ended March 31, 2019 (as reported) versus the three and nine months ended March 31, 2018 (pro forma)” below for additional details.

For the nine months ended March 31, 2019, revenues at the Subscription Video Services segment increased $1,272 million and Segment EBITDA increased $219 million as compared to the corresponding period of fiscal 2018. The revenue and Segment EBITDA increases for the nine months ended March 31, 2019 were primarily due to the Transaction, which contributed $1,289 million of revenue and $236 million of Segment EBITDA during the nine months ended March 31, 2019. The impact of foreign currency fluctuations of the U.S. dollar against local currencies resulted in a revenue decrease of $30 million for the nine months ended March 31, 2019 as compared to the corresponding period of fiscal 2018. See “Results of Operations—For the three and nine months ended March 31, 2019 (as reported) versus the three and nine months ended March 31, 2018 (pro forma)” below for additional details.

49

Book Publishing (18% and 20% of the Company’s consolidated revenues in the nine months ended March 31, 2019 and 2018, respectively)

	For the three months ended March 31,											For the nine months ended March 31,
	2019			2018			Change			% Change		2019			2018			Change			% Change
(in millions, except %)							Better/(Worse)											Better/(Worse)
Revenues:
Consumer	$	403		$	381		$	22			6 %	$	1,281		$	1,220		$	61			5 %
Other		18			17			1			6 %		54			48			6			13 %
Total Revenues		421			398			23			6 %		1,335			1,268			67			5 %
Operating expenses		(284	)		(275	)		(9	)		(3)%		(881	)		(858	)		(23	)		(3)%
Selling, general and administrative		(84	)		(82	)		(2	)		(2)%		(245	)		(243	)		(2	)		(1)%
Segment EBITDA	$	53		$	41		$	12			29 %	$	209		$	167		$	42			25 %

For the three months ended March 31, 2019, revenues at the Book Publishing segment increased $23 million, or 6%, as compared to the corresponding period of fiscal 2018. The increase was primarily due to strong sales in the Christian publishing category, primarily Girl, Stop Apologizing by Rachel Hollis and We Are the Gardeners by Joanna Gaines as well as the continued success of Girl, Wash Your Face by Rachel Hollis. These increases were partially offset by the $17 million impact of the adoption of the new revenue recognition standard and the $9 million negative impact of foreign currency fluctuations. Digital sales represented approximately 21% of Consumer revenues during the three months ended March 31, 2019. Digital sales increased approximately 5% as compared to the corresponding period of fiscal 2018 primarily due to growth in downloadable audio books.

For the three months ended March 31, 2019, Segment EBITDA at the Book Publishing segment increased $12 million, or 29%, as compared to the corresponding period of fiscal 2018. The increase was primarily due to the higher revenues discussed above.

For the nine months ended March 31, 2019, revenues at the Book Publishing segment increased $67 million, or 5%, as compared to the corresponding period of fiscal 2018. The increase was primarily due to strong sales in the general books category, primarily Homebody: A Guide to Creating Spaces You Never Want to Leave by Joanna Gaines, strong frontlist and backlist sales in the Christian publishing category, primarily titles by Rachel Hollis including Girl, Wash Your Face and Girl, Stop Apologizing, as well as the continued success of The Hate U Give by Angie Thomas in the children’s books category. These increases were partially offset by the $47 million impact of the adoption of the new revenue recognition standard and the $19 million negative impact of foreign currency fluctuations. Digital sales represented approximately 20% of Consumer revenues during the nine months ended March 31, 2019. Digital sales increased approximately 10% as compared to the corresponding period of fiscal 2018 primarily due to growth in downloadable audio books.

For the nine months ended March 31, 2019, Segment EBITDA at the Book Publishing segment increased $42 million, or 25%, as compared to the corresponding period of fiscal 2018. The increase was primarily due to the higher revenues discussed above.

50

Digital Real Estate Services (11% and 13% of the Company’s consolidated revenues in the nine months ended March 31, 2019 and 2018, respectively)

	For the three months ended March 31,											For the nine months ended March 31,
	2019			2018			Change			% Change		2019			2018			Change			% Change
(in millions, except %)							Better/(Worse)											Better/(Worse)
Revenues:
Circulation and subscription	$	12		$	14		$	(2	)		(14)%	$	39		$	42		$	(3	)		(7)%
Advertising		27			34			(7	)		(21)%		89			104			(15	)		(14)%
Real estate		218			208			10			5 %		693			633			60			9 %
Other		15			23			(8	)		(35)%		55			63			(8	)		(13)%
Total Revenues		272			279			(7	)		(3)%		876			842			34			4 %
Operating expenses		(46	)		(36	)		(10	)		(28)%		(123	)		(101	)		(22	)		(22)%
Selling, general and administrative		(152	)		(155	)		3			2 %		(453	)		(439	)		(14	)		(3)%
Segment EBITDA	$	74		$	88		$	(14	)		(16)%	$	300		$	302		$	(2	)		(1)%

For the three months ended March 31, 2019, revenues at the Digital Real Estate Services segment decreased $7 million, or 3%, as compared to the corresponding period of fiscal 2018. At REA Group, revenues decreased $7 million, or 4%, to $151 million for the three months ended March 31, 2019 from $158 million in the corresponding period of fiscal 2018. The lower revenues were primarily due to the $16 million negative impact of foreign currency fluctuations and softness in listing volumes which are not expected to improve in the short term, partially offset by an increase in Australian residential depth revenue driven by price increases, improved penetration and favorable product mix. Revenues at Move increased $6 million, or 5%, to $121 million for the three months ended March 31, 2019 from $115 million in the corresponding period of fiscal 2018 primarily due to higher Real estate revenues resulting from higher yield per lead, partially offset by lower non-listing advertising revenues.

For the three months ended March 31, 2019, Segment EBITDA at the Digital Real Estate Services segment decreased $14 million, or 16%, as compared to the corresponding period of fiscal 2018. The decrease in Segment EBITDA was primarily the result of lower contribution from Move of $13 million primarily due to the $15 million impact associated with the acquisition and continued investment in Opcity. The impact of foreign currency fluctuations of the U.S. dollar against local currencies resulted in a Segment EBITDA decrease of $9 million for the three months ended March 31, 2019 as compared to the corresponding period of fiscal 2018.

For the nine months ended March 31, 2019, revenues at the Digital Real Estate Services segment increased $34 million, or 4%, as compared to the corresponding period of fiscal 2018. Revenues at Move increased $29 million, or 9%, to $361 million for the nine months ended March 31, 2019 from $332 million in the corresponding period of fiscal 2018 primarily due to higher Real estate revenues resulting from growth in leads and higher yield, partially offset by lower non-listing advertising revenues. At REA Group, revenues increased $19 million, or 4%, to $513 million for the nine months ended March 31, 2019 from $494 million in the corresponding period of fiscal 2018. The higher revenues were primarily due to an increase in Australian residential depth revenue driven by price increases, improved penetration and favorable product mix, as well as the acquisition of Hometrack Australia, partially offset by the $43 million negative impact of foreign currency fluctuations and softness in listing volumes which are not expected to improve in the short term.

For the nine months ended March 31, 2019, Segment EBITDA at the Digital Real Estate Services segment decreased $2 million, or 1%, as compared to the corresponding period of fiscal 2018. The decrease in Segment EBITDA was primarily due to lower contribution from Move of $23 million primarily due to the $22 million impact associated with the acquisition and continued investment in Opcity and $10 million of higher costs associated with new product development and higher revenues, partially offset by the higher revenues noted above. The decrease was partially offset by higher contribution from REA Group of $17 million, primarily due to the higher revenues noted above, partially offset by the $25 million negative impact of foreign currency fluctuations.

51

Results of Operations—For the three and nine months ended March 31, 2019 (as reported) versus the three and nine months ended March 31, 2018 (pro forma)

The following supplemental unaudited pro forma information for the three and nine months ended March 31, 2018 reflects the Company’s results of operations as if the Transaction had occurred on July 1, 2016. The Company believes that the presentation of this supplemental information enhances comparability across the reporting periods. The information was prepared in accordance with Article 11 of Regulation S-X and is based on historical results of operations of News Corp and Foxtel, adjusted for the effect of Transaction-related accounting adjustments, as described below. Pro forma adjustments were based on available information and assumptions regarding impacts that are directly attributable to the Transaction, are factually supportable, and are expected to have a continuing impact on the combined results. In addition, the pro forma information is provided for supplemental and informational purposes only, and is not necessarily indicative of what the Company’s results of operations would have been, or the Company’s future results of operations, had the Transaction actually occurred on the date indicated. As only the financial results for the Subscription Video Services segment were adjusted due to the presentation of this pro forma supplemental information, the Company is only providing a supplemental analysis for this segment below, under “Segment Analysis (pro forma).” The unaudited pro forma information should be read in conjunction with other sections of this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the Consolidated Financial Statements and related notes appearing elsewhere in this Quarterly Report.

	Pro Forma (unaudited)
	For the three months ended March 31, 2018
	News Corp Historical (a)			Foxtel Historical (b)			Transaction Adjustments			Pro Forma
(in millions, except per share amounts)
Revenues:
Circulation and subscription	$	659		$	531		$	(93	)(c)(d)	$	1,097
Advertising		702			42			—			744
Consumer		381			—			—			381
Real estate		208			—			—			208
Other		143			14			—			157
Total Revenues		2,093			587			(93	)		2,587
Operating expenses		(1,151	)		(370	)		98	(c)(e)		(1,423	)
Selling, general and administrative		(761	)		(113	)		2	(f)		(872	)
Depreciation and amortization		(100	)		(69	)		1	(g)(h)(i)		(168	)
Impairment and restructuring charges		(246	)		(2	)		(957	)(j)		(1,205	)
Equity (losses) earnings of affiliates		(974	)		2			970	(j)		(2	)
Interest income (expense), net		2			(23	)		—			(21	)
Other, net		30			(1	)		—			29
(Loss) income before income tax expense		(1,107	)		11			21			(1,075	)
Income tax expense		(3	)		(3	)		—	(k)		(6	)
Net (loss) income		(1,110	)		8			21			(1,081	)
Less: Net (income) loss attributable to noncontrolling interests		(18	)		1			7	(l)		(10	)
Net (loss) income attributable to News Corporation	$	(1,128	)	$	9		$	28		$	(1,091	)
Net loss available to News Corporation stockholders per share	$	(1.94	)							$	(1.87	)

52

	Pro Forma (unaudited)
	For the nine months ended March 31, 2018
	News Corp Historical (a)			Foxtel Historical (b)			Transaction Adjustments			Pro Forma
(in millions, except per share amounts)
Revenues:
Circulation and subscription	$	1,947		$	1,638		$	(278	)(c)(d)	$	3,307
Advertising		2,101			141			—			2,242
Consumer		1,220			—			—			1,220
Real estate		633			—			—			633
Other		430			39			—			469
Total Revenues		6,331			1,818			(278	)		7,871
Operating expenses		(3,439	)		(1,136	)		291	(c)(e)		(4,284	)
Selling, general and administrative		(2,135	)		(340	)		5	(f)		(2,470	)
Depreciation and amortization		(297	)		(187	)		(17	)(g)(h)(i)		(501	)
Impairment and restructuring charges		(273	)		(5	)		(957	)(j)		(1,235	)
Equity (losses) earnings of affiliates		(1,002	)		5			974	(j)		(23	)
Interest income (expense), net		9			(76	)		—			(67	)
Other, net		9			(2	)		—			7
(Loss) income before income tax expense		(797	)		77			18			(702	)
Income tax expense		(292	)		(13	)		5	(k)		(300	)
Net (loss) income		(1,089	)		64			23			(1,002	)
Less: Net (income) loss attributable to noncontrolling interests		(54	)		1			(27	)(l)		(80	)
Net (loss) income attributable to News Corporation	$	(1,143	)	$	65		$	(4	)	$	(1,082	)
Net loss available to News Corporation stockholders per share	$	(1.96	)							$	(1.86	)

Notes to the unaudited pro forma statements:

(a) Reflects the historical results of operations of News Corporation. As the acquisition of a controlling interest in Foxtel was completed on April 3, 2018, Foxtel is reflected in our historical Statements of Operations from April 3, 2018 onwards.

(b) Reflects the historical results of operations of Foxtel to the date of the Transaction. From April 3, 2018 onwards, Foxtel is included in the historical results of operations of News Corporation. The Statements of Operations of Foxtel are derived from its historical financial statements for the three and nine months ended March 31, 2018. The Statements of Operations for the three and nine months ended March 31, 2018 reflect Foxtel’s Statements of Operations on a U.S. GAAP basis and translated from Australian dollars to U.S. dollars, the reporting currency of the combined group, using the quarterly average rate for each period presented. Additionally, certain balances within Foxtel’s historical financial information were reclassified to be consistent with the Company’s presentation.

(c) Represents the impact of eliminating transactions between Foxtel and the consolidated subsidiaries of News Corporation, which would be eliminated upon consolidation as a result of the Transaction.

(d) Reflects the reversal of revenue recognized in Foxtel’s historical Statements of Operations resulting from the fair value adjustment of Foxtel’s historical deferred installation revenue in the preliminary purchase price allocation for the Transaction.

(e) Reflects the adjustment to amortization of program inventory recognized in Foxtel’s historical Statements of Operations related to the fair value adjustment of Foxtel’s historical program inventory in the preliminary purchase price allocation.

53

(f) Reflects the removal of transaction expenses directly related to the Transaction that are included in News Corp’s historical Statements of Operations for the three and nine months ended March 31, 2018. These costs are considered to be non-recurring in nature, and as such, have been excluded from the pro forma Statements of Operations.

(g) Reflects the adjustment to amortization expense resulting from the recognition of amortizable intangible assets in the preliminary purchase price allocation.

(h) Reflects the adjustment to depreciation and amortization expense resulting from the fair value adjustment to Foxtel’s historical fixed assets in the preliminary purchase price allocation, which resulted in a step-up in the value of such assets.

(i) Reflects the reversal of amortization expense included in News Corp’s historical Statements of Operations from the Company’s settlement of its pre-existing contractual arrangement between Foxtel and FOX SPORTS Australia, which resulted in a write-off of its channel distribution agreement intangible asset at the time of the Transaction.

(j) Represents the impact to equity losses of affiliates as a result of the Transaction, as if the Transaction occurred on July 1, 2016. Historically News Corp accounted for its investment in Foxtel under the equity method of accounting. As a result of the Transaction, Foxtel became a majority-owned subsidiary of the Company, and therefore, the impact of Foxtel on the Company’s historical equity losses of affiliates was eliminated. In addition, during the three and nine months ended March 31, 2018, News Corp recorded an impairment to its investment in Foxtel within equity losses of affiliates which is reflected in News Corp’s historical results. As this impairment is non-recurring in nature and is not directly attributable to the Transaction, such amount has not been eliminated and has been reclassified in the pro forma Statements of Operations from equity losses of affiliates into impairment and restructuring charges.

(k) In determining the tax rate to apply to our pro forma adjustments we used the Australian statutory rate of 30%, which is the jurisdiction in which the business operates. However, in certain instances, the effective tax rate applied to certain adjustments differs from the statutory rate primarily as a result of certain valuation allowances on deferred tax assets, based on the Company’s historical tax profile in Australia.

(l) Represents the adjustment, as a result of the Transaction, to reflect the noncontrolling interest of the combined company on a pro forma basis.

54

The following table sets forth the Company’s unaudited operating results for the three and nine months ended March 31, 2019 and its unaudited pro forma operating results for the three and nine months ended March 31, 2018.

	For the three months ended March 31,											For the nine months ended March 31,
	2019			2018			Change			% Change		2019			2018			Change			% Change
(in millions, except %)	As reported			Pro forma			Better/(Worse)					As reported			Pro forma			Better/(Worse)
Revenues:
Circulation and subscription	$	1,025		$	1,097		$	(72	)		(7)%	$	3,088		$	3,307		$	(219	)		(7)%
Advertising		670			744			(74	)		(10)%		2,052			2,242			(190	)		(8)%
Consumer		403			381			22			6 %		1,281			1,220			61			5 %
Real estate		218			208			10			5 %		693			633			60			9 %
Other		141			157			(16	)		(10)%		494			469			25			5 %
Total Revenues		2,457			2,587			(130	)		(5)%		7,608			7,871			(263	)		(3)%
Operating expenses		(1,400	)		(1,423	)		23			2 %		(4,224	)		(4,284	)		60			1 %
Selling, general and administrative		(810	)		(872	)		62			7 %		(2,409	)		(2,470	)		61			2 %
Depreciation and amortization		(168	)		(168	)		—			—		(494	)		(501	)		7			1 %
Impairment and restructuring charges		(34	)		(1,205	)		1,171			97 %		(71	)		(1,235	)		1,164			94 %
Equity losses of affiliates		(4	)		(2	)		(2	)		(100)%		(13	)		(23	)		10			43 %
Interest expense, net		(14	)		(21	)		7			33 %		(45	)		(67	)		22			33 %
Other, net		3			29			(26	)		(90)%		30			7			23			**
Income (loss) before income tax expense		30			(1,075	)		1,105			**		382			(702	)		1,084			**
Income tax expense		(7	)		(6	)		(1	)		(17)%		(112	)		(300	)		188			63 %
Net income (loss)		23			(1,081	)		1,104			**		270			(1,002	)		1,272			**
Less: Net income attributable to noncontrolling interests		(13	)		(10	)		(3	)		(30)%		(64	)		(80	)		16			20 %
Net income (loss) attributable to News Corporation	$	10		$	(1,091	)	$	1,101			**	$	206		$	(1,082	)	$	1,288			**

** not meaningful

Revenues (pro forma)– Revenues decreased $130 million, or 5%, and $263 million, or 3%, for the three and nine months ended March 31, 2019, respectively, as compared to the corresponding periods of fiscal 2018.

The Revenue decrease for the three months ended March 31, 2019 was mainly attributable to an $84 million decrease in revenues at the Subscription Video Services segment, primarily due to the $53 million negative impact of foreign currency fluctuations and lower subscription revenues due to lower broadcast subscribers and changes in the subscriber package mix, partially offset by $11 million of higher revenues from Foxtel Now and Kayo Sports, as well as lower revenues at the News and Information Services segment of $62 million, mainly due to the $52 million negative impact of foreign currency fluctuations, weakness in the print advertising market and lower revenues at News America Marketing of $20 million, partially offset by cover and subscription price increases and digital subscriber growth, primarily at The Wall Street Journal and in Australia. The Revenue decrease was partially offset by higher revenues of $23 million at the Book Publishing segment. The impact of foreign currency fluctuations of the U.S. dollar against local currencies resulted in a Revenue decrease of $130 million for the three months ended March 31, 2019, as compared to the corresponding period of fiscal 2018.

The Revenue decrease for the nine months ended March 31, 2019 was mainly attributable to a $268 million decrease in revenues at the Subscription Video Services segment, primarily due to the $137 million negative impact of foreign currency and lower subscription revenues resulting from lower broadcast subscribers and changes in the subscriber package mix,

55

partially offset by $27 million of higher revenues from Foxtel Now and Kayo Sports, as well as lower revenues at the News and Information Services segment of $96 million, mainly due to the $114 million negative impact of foreign currency fluctuations, weakness in the print advertising market and lower revenues at News America Marketing of $47 million, partially offset by cover and subscription price increases and digital subscriber growth, primarily at The Wall Street Journal and in Australia. The Revenue decrease was partially offset by higher revenues of $67 million and $34 million at the Book Publishing and Digital Real Estate Services segments, respectively. The impact of foreign currency fluctuations of the U.S. dollar against local currencies resulted in a Revenue decrease of $313 million for the nine months ended March 31, 2019, as compared to the corresponding period of fiscal 2018.

Operating expenses (pro forma)– Operating expenses decreased $23 million, or 2%, and $60 million, or 1%, for the three and nine months ended March 31, 2019, respectively, as compared to the corresponding periods of fiscal 2018.

The decrease in Operating expenses for the three months ended March 31, 2019 was primarily due to the $72 million positive impact of foreign currency fluctuations, partially offset by higher sports programming and production costs at the Subscription Video Services segment, including approximately $25 million related to Cricket Australia.

The decrease in Operating expenses for the nine months ended March 31, 2019 was primarily due to the $163 million positive impact of foreign currency fluctuations, partially offset by higher sports programming and production costs at the Subscription Video Services segment, including approximately $51 million related to Cricket Australia.

Selling, general and administrative (pro forma)– Selling, general and administrative expenses decreased $62 million, or 7%, and $61 million, or 2%, for the three and nine months ended March 31, 2019, respectively, as compared to the corresponding periods of fiscal 2018.

The decrease in Selling, general and administrative expenses for the three months ended March 31, 2019 was primarily due to lower expenses at the Subscription Video Services segment of $55 million primarily resulting from lower customer service and installation costs and lower overhead costs. The impact of foreign currency fluctuations of the U.S. dollar against local currencies resulted in a Selling, general and administrative expense decrease of $41 million for the three months ended March 31, 2019, as compared to the corresponding period of fiscal 2018.

The decrease in Selling, general and administrative expenses for the nine months ended March 31, 2019 was primarily due to lower expenses at the Subscription Video Services segment of $107 million primarily related to lower customer service and installation costs and lower overhead costs, partially offset by the absence of the $46 million impact from the reversal of a portion of the previously accrued liability for the U.K. Newspaper Matters and the corresponding receivable as the result of an agreement reached with the relevant tax authority with respect to certain employment taxes in the first quarter of fiscal 2018. The impact of foreign currency fluctuations of the U.S. dollar against local currencies resulted in a Selling, general and administrative expense decrease of $97 million for the nine months ended March 31, 2019, as compared to the corresponding period of fiscal 2018.

Depreciation and amortization (pro forma)– Depreciation and amortization expense was flat and decreased $7 million, or 1%, for the three and nine months ended March 31, 2019, respectively, as compared to the corresponding periods of fiscal 2018. The impact of foreign currency fluctuations of the U.S. dollar against local currencies resulted in a depreciation and amortization expense decrease of $10 million and $24 million for the three and nine months ended March 31, 2019, respectively, as compared to the corresponding periods of fiscal 2018.

Impairment and restructuring charges (pro forma)– During the three and nine months ended March 31, 2019, the Company recorded restructuring charges of $25 million and $62 million, respectively, primarily related to employee termination benefits at the News and Information Services segment. During the three and nine months ended March 31, 2018, the Company recorded restructuring charges of $21 million and $48 million, respectively, primarily related to employee termination benefits at the News and Information Services segment.

During the three and nine months ended March 31, 2018, the Company recognized non-cash impairment charges of $1,184 million consisting primarily of a $957 million non-cash write-down of the carrying value of its investment in Foxtel and $225 million primarily related to the impairment of goodwill and intangible assets at the News America Marketing reporting unit and impairment of goodwill at the FOX SPORTS Australia reporting unit.

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Equity losses of affiliates (pro forma)– Equity losses of affiliates deteriorated $2 million and improved $10 million for the three and nine months ended March 31, 2019, respectively, as compared to the corresponding periods of fiscal 2018. The decrease in losses for the nine months ended March 31, 2019 was primarily due to the absence of $13 million in non-cash write-downs of certain equity method investments recognized in the second quarter of fiscal 2018.

Interest expense, net (pro forma)– Interest expense, net was $14 million and $45 million for the three and nine months ended March 31, 2019, respectively, as compared to $21 million and $67 million in the corresponding periods of fiscal 2018.

The decrease in interest expense for the three months ended March 31, 2019 was primarily due to lower third party interest expense as well as higher interest income.

The decrease in interest expense for the nine months ended March 31, 2019 was primarily due to lower third party interest expense, lower interest expense resulting from the repayment of the Foxtel shareholder note in the first quarter of fiscal 2018 as well as higher interest income.

Other, net (pro forma)– Other, net deteriorated by $26 million and improved by $23 million for the three and nine months ended March 31, 2019, respectively, as compared to the corresponding periods of fiscal 2018.

Other, net deteriorated for the three months ended March 31, 2019 as compared to the corresponding period of fiscal 2018, primarily due to the absence of the gain recognized on the sale of the Company’s investment in SEEKAsia in the third quarter of fiscal 2018.

Other, net improved for the nine months ended March 31, 2019 as compared to the corresponding period of fiscal 2018, primarily due to dividends received from equity method investments in the second quarter of fiscal 2019, partially offset by the absence of the gain recognized on the sale of the Company’s investment in SEEKAsia in the third quarter of fiscal 2018.

Income tax expense (pro forma)– For the three months ended March 31, 2019, the Company recorded income tax expense of $7 million on pre-tax income of $30 million, resulting in an effective tax rate that was higher than the U.S. statutory tax rate. The higher tax rate was primarily due to valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses and the impact from foreign operations which are subject to higher tax rates.

For the nine months ended March 31, 2019, the Company recorded income tax expense of $112 million on pre-tax income of $382 million, resulting in an effective tax rate that was higher than the U.S. statutory tax rate. The higher tax rate was primarily due to valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses and the impact from foreign operations which are subject to higher tax rates.

For the three months ended March 31, 2018, the Company recorded income tax expense of $6 million on a pre-tax loss of $1,075 million, resulting in an effective tax rate that was lower than the U.S. statutory tax rate. The lower tax rate was primarily due to a lower net tax benefit on the non-cash write-down of assets and investments in Australia and the U.S., and valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses.

For the nine months ended March 31, 2018, the Company recorded income tax expense of $300 million on a pre-tax loss of $702 million, resulting in an effective tax rate that was lower than the U.S. statutory tax rate. The lower tax rate resulted from the lower net tax benefit on the non-cash write-down of assets and investments in Australia and the U.S., valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses and the tax charge resulting from the enactment of the Tax Act which caused an increase in income tax expense of $174 million.

Net income (loss) (pro forma)– Net income improved by $1,104 million and $1,272 million for the three and nine months ended March 31, 2019, respectively, as compared to the corresponding periods of fiscal 2018.

The increase in net income during the three months ended March 31, 2019 was due to lower Impairment and restructuring charges resulting from the absence of $1,184 million of non-cash impairment charges consisting primarily of a $957 million non-cash write-down of the carrying value of the Company’s investment in Foxtel and $225 million primarily related to the impairment of goodwill and intangible assets at the News America Marketing reporting unit and impairment of goodwill at the FOX SPORTS Australia reporting unit, partially offset by lower Total Segment EBITDA.

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The increase in net income during the nine months ended March 31, 2019 was primarily due to lower Impairment and restructuring charges resulting from the absence of $1,184 million of non-cash impairment charges consisting primarily of a $957 million non-cash write-down of the carrying value of its investment in Foxtel and $225 million primarily related to the impairment of goodwill and intangible assets at the News America Marketing reporting unit and impairment of goodwill at the FOX SPORTS Australia reporting unit and the absence of the $174 million negative impact of the Tax Act recognized in the second quarter of fiscal 2018, partially offset by lower Total Segment EBITDA.

Net income attributable to noncontrolling interests (pro forma)– Net income attributable to noncontrolling interests increased by $3 million and decreased by $16 million for the three and nine months ended March 31, 2019, respectively, as compared to the corresponding periods of fiscal 2018. The decrease in Net income attributable to noncontrolling interests for the nine months ended March 31, 2019 was primarily due to lower performance at new Foxtel, partially offset by higher results at REA Group.

Segment Analysis (pro forma)

The following table reconciles unaudited reported and pro forma Net income (loss) to unaudited reported and pro forma Total Segment EBITDA for the three and nine months ended March 31, 2019 and 2018, respectively:

	For the three months ended						For the nine months ended
	March 31,						March 31,
	2019			2018			2019			2018
(in millions)	As reported			Pro forma			As reported			Pro forma
Net income (loss)	$	23		$	(1,081	)	$	270		$	(1,002	)
Add:
Income tax expense		7			6			112			300
Other, net		(3	)		(29	)		(30	)		(7	)
Interest expense, net		14			21			45			67
Equity losses of affiliates		4			2			13			23
Impairment and restructuring charges		34			1,205			71			1,235
Depreciation and amortization		168			168			494			501
Total Segment EBITDA	$	247		$	292		$	975		$	1,117

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The following tables set forth the Company’s reported Revenues and Segment EBITDA for the three and nine months ended March 31, 2019 and pro forma Revenues and Segment EBITDA for the three and nine months ended March 31, 2018:

	For the three months ended March 31,										For the nine months ended March 31,
	2019					2018					2019					2018
	As reported					Pro forma					As reported					Pro forma
(in millions)	Revenues		Segment EBITDA			Revenues		Segment EBITDA			Revenues		Segment EBITDA			Revenues		Segment EBITDA
News and Information Services	$	1,224	$	73		$	1,286	$	87		$	3,729	$	309		$	3,825	$	302
Subscription Video Services		539		98			623		127			1,666		295			1,934		436
Book Publishing		421		53			398		41			1,335		209			1,268		167
Digital Real Estate Services		272		74			279		88			876		300			842		302
Other		1		(51	)		1		(51	)		2		(138	)		2		(90	)
Total	$	2,457	$	247		$	2,587	$	292		$	7,608	$	975		$	7,871	$	1,117

Subscription Video Services (pro forma) (22% and 25% of the Company’s consolidated revenues in the nine months ended March 31, 2019 and 2018, respectively)

	For the three months ended March 31,											For the nine months ended March 31,
	2019			2018			Change			% Change		2019			2018			Change			% Change
(in millions, except %)	As reported			Pro forma			Better/(Worse)					As reported			Pro forma			Better/(Worse)
Revenues:
Circulation and subscription	$	474		$	547		$	(73	)		(13)%	$	1,455		$	1,687		$	(232	)		(14)%
Advertising		50			60			(10	)		(17)%		162			201			(39	)		(19)%
Other		15			16			(1	)		(6)%		49			46			3			7 %
Total Revenues		539			623			(84	)		(13)%		1,666			1,934			(268	)		(14)%
Operating expenses		(374	)		(374	)		—			— %		(1,109	)		(1,129	)		20			2 %
Selling, general and administrative		(67	)		(122	)		55			45 %		(262	)		(369	)		107			29 %
Segment EBITDA	$	98		$	127		$	(29	)		(23)%	$	295		$	436		$	(141	)		(32)%

For the three months ended March 31, 2019, revenues at the Subscription Video Services segment decreased $84 million, or 13%, as compared to the corresponding period of fiscal 2018. The revenue decrease was primarily due to the $53 million negative impact of foreign currency fluctuations and lower subscription revenues due to lower broadcast subscribers and changes in the subscriber package mix, partially offset by $11 million of higher revenues from Foxtel Now and Kayo Sports.

For the three months ended March 31, 2019, Segment EBITDA at the Subscription Video Services segment decreased $29 million, or 23%, as compared to the corresponding period of fiscal 2018. The decrease in Segment EBITDA was primarily due to higher sports programming and production costs, including approximately $25 million related to Cricket Australia, the lower revenues discussed above and approximately $10 million in higher marketing costs related to Kayo Sports, partially offset by lower entertainment programming costs, customer service and installation costs and overhead expenses.

For the nine months ended March 31, 2019, revenues at the Subscription Video Services segment decreased $268 million, or 14%, as compared to the corresponding period of fiscal 2018. The revenue decrease was primarily due to the $137 million negative impact of foreign currency fluctuations and lower subscription revenues resulting from lower broadcast subscribers and changes in the subscriber package mix, partially offset by $27 million of higher revenues from Foxtel Now and Kayo Sports.

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For the nine months ended March 31, 2019, Segment EBITDA at the Subscription Video Services segment decreased $141 million, or 32%, as compared to the corresponding period of fiscal 2018. The decrease in Segment EBITDA was primarily due to the lower revenues discussed above, higher sports programming and production costs, including approximately $51 million related to Cricket Australia, and approximately $19 million in higher marketing costs related to Kayo Sports, partially offset by lower entertainment programming costs, customer service and installation costs and overhead expenses.

LIQUIDITY AND CAPITAL RESOURCES

Current Financial Condition

The Company’s principal source of liquidity is internally generated funds and cash and cash equivalents on hand. As of March 31, 2019, the Company’s cash and cash equivalents were $1.65 billion. The Company expects these elements of liquidity will enable it to meet its liquidity needs in the foreseeable future, including repayment of indebtedness. The Company also has available borrowing capacity under the Facility (as defined below) and certain other facilities, as described below, and expects to have access to the worldwide credit and capital markets, subject to market conditions, in order to issue additional debt if needed or desired. Although the Company believes that its cash on hand and future cash from operations, together with its access to the credit and capital markets, will provide adequate resources to fund its operating and financing needs, its access to, and the availability of, financing on acceptable terms in the future will be affected by many factors, including: (i) the performance of the Company and/or its operating subsidiaries, as applicable, (ii) the Company’s credit rating or absence of a credit rating and/or the credit rating of its operating subsidiaries, as applicable, (iii) the provisions of any relevant debt instruments, credit agreements, indentures and similar or associated documents, (iv) the liquidity of the overall credit and capital markets and (v) the current state of the economy. There can be no assurances that the Company will continue to have access to the credit and capital markets on acceptable terms. See Part II, “Item 1A. Risk Factors” for further discussion.

As of March 31, 2019, the Company’s consolidated assets included $714 million in cash and cash equivalents that were held by its foreign subsidiaries. Of this amount, $49 million is cash not readily accessible by the Company as it is held by REA Group, a majority owned but separately listed public company. REA Group must declare a dividend in order for the Company to have access to its share of REA Group’s cash balance. The Company earns income outside the U.S., which is deemed to be permanently reinvested in certain foreign jurisdictions. The Company does not currently intend to repatriate these earnings. Should the Company require more capital in the U.S. than is generated by and/or available to its domestic operations, the Company could elect to transfer funds held in foreign jurisdictions. The transfer of funds from foreign jurisdictions may be cumbersome due to local regulations, foreign exchange controls and taxes. Additionally, the transfer of funds from foreign jurisdictions may result in higher effective tax rates and higher cash paid for income taxes for the Company. The Tax Act was enacted on December 22, 2017. As part of the transition to the new partial territorial tax system, the Tax Act imposes a one-time tax on the mandatory deemed repatriation of earnings of the Company’s foreign subsidiaries. The deemed repatriation tax was determined to be approximately $26 million, which was recorded to income tax expense in fiscal 2018. The U.S. Treasury Department released additional guidance and proposed regulations during the past year. The Company undertook a review of the guidance and proposed regulations and determined that there were no material changes to the deemed repatriation tax of approximately $26 million.

The principal uses of cash that affect the Company’s liquidity position include the following: operational expenditures including employee costs and paper purchases; capital expenditures; income tax payments; investments in associated entities; acquisitions; and the repayment of debt and related interest. In addition to the acquisitions and dispositions disclosed elsewhere, the Company has evaluated, and expects to continue to evaluate, possible future acquisitions and dispositions of certain businesses. Such transactions may be material and may involve cash, the issuance of the Company’s securities or the assumption of indebtedness.

Issuer Purchases of Equity Securities

In May 2013, the Company’s Board of Directors (the “Board of Directors”) authorized the Company to repurchase up to an aggregate of $500 million of its Class A Common Stock. No stock repurchases were made during the nine months ended March 31, 2019. Through May 3, 2019, the Company cumulatively repurchased approximately 5.2 million shares of Class A Common Stock for an aggregate cost of approximately $71 million. The remaining authorized amount under the stock repurchase program as of May 3, 2019 was approximately $429 million. All decisions regarding any future stock

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repurchases are at the sole discretion of a duly appointed committee of the Board of Directors and management. The committee’s decisions regarding future stock repurchases will be evaluated from time to time in light of many factors, including the Company’s financial condition, earnings, capital requirements and debt facility covenants, other contractual restrictions, as well as legal requirements, regulatory constraints, industry practice, market volatility and other factors that the committee may deem relevant. The stock repurchase authorization may be modified, extended, suspended or discontinued at any time by the Board of Directors and the Board of Directors cannot provide any assurances that any additional shares will be repurchased.

Dividends

In February 2019, the Board of Directors declared a semi-annual cash dividend of $0.10 per share for Class A Common Stock and Class B Common Stock. This dividend was paid on April 17, 2019 to stockholders of record at the close of business on March 13, 2019. The timing, declaration, amount and payment of future dividends to stockholders, if any, is within the discretion of the Board of Directors. The Board of Directors’ decisions regarding the payment of future dividends will depend on many factors, including the Company’s financial condition, earnings, capital requirements and debt facility covenants, other contractual restrictions, as well as legal requirements, regulatory constraints, industry practice, market volatility and other factors that the Board of Directors deems relevant.

Sources and Uses of Cash—For the nine months ended March 31, 2019 versus the nine months ended March 31, 2018

Net cash provided by operating activities for the nine months ended March 31, 2019 and 2018 was as follows (in millions):

For the nine months ended March 31,	2019		2018
Net cash provided by operating activities	$	661	$	465

Net cash provided by operating activities increased by $196 million for the nine months ended March 31, 2019 as compared to the nine months ended March 31, 2018. The increase was primarily due to higher Total Segment EBITDA, partially offset by $59 million in higher cash paid for interest.

Net cash used in investing activities for the nine months ended March 31, 2019 and 2018 was as follows (in millions):

For the nine months ended March 31,	2019			2018
Net cash used in investing activities	$	(523	)	$	(144	)

During the nine months ended March 31, 2019, the Company used $417 million of cash for capital expenditures, of which $223 million related to new Foxtel, and $187 million of cash for acquisitions, primarily for the acquisition of Opcity. New Foxtel’s total capital expenditures in fiscal 2019 are now expected to be higher than fiscal 2018 by approximately $25 million.

During the nine months ended March 31, 2018, the Company used $200 million for capital expenditures and $62 million of cash for acquisitions, primarily for the acquisition of Smartline. These expenditures were partially offset by proceeds from the sale of the SEEKAsia cost method investment of $122 million during the nine months ended March 31, 2018.

Net cash used in financing activities for the nine months ended March 31, 2019 and 2018 was as follows (in millions):

For the nine months ended March 31,	2019			2018
Net cash used in financing activities	$	(501	)	$	(234	)

The increase in net cash used for financing activities for the nine months ended March 31, 2019 as compared to the corresponding period of fiscal 2018 primarily relates to the repayment of borrowings of $801 million, mainly related to repayment of borrowings for new Foxtel and at REA Group, and the redemption of the Company’s redeemable preferred stock of $20 million, partially offset by new borrowings by new Foxtel of $450 million.

Reconciliation of Free Cash Flow Available to News Corporation

Free cash flow available to News Corporation is a non-GAAP financial measure defined as net cash provided by operating activities, less capital expenditures (“free cash flow”), less REA Group free cash flow, plus cash dividends received from

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REA Group. Free cash flow available to News Corporation should be considered in addition to, not as a substitute for, cash flows from operations and other measures of financial performance reported in accordance with GAAP. Free cash flow available to News Corporation 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 free cash flow.

The Company considers free cash flow available to News Corporation to provide useful information to management and investors about the amount of cash that is available to be used to strengthen the Company’s balance sheet and for strategic opportunities including, among others, investing in the Company’s business, strategic acquisitions, dividend payouts and repurchasing stock. The Company believes excluding REA Group’s free cash flow and including dividends received from REA Group provides users of its consolidated financial statements with a measure of the amount of cash flow that is readily available to the Company, as REA Group is a separately listed public company in Australia and must declare a dividend in order for the Company to have access to its share of REA Group’s cash balance. The Company believes free cash flow available to News Corporation provides a more conservative view of the Company’s free cash flow because this presentation includes only that amount of cash the Company actually receives from REA Group, which has generally been lower than the Company’s unadjusted free cash flow.

A limitation of free cash flow available to News Corporation is that it does not represent the total increase or decrease in the cash balance for the period. Management compensates for the limitation of free cash flow available to News Corporation by also relying on the net change in cash and cash equivalents as presented in the Statements of Cash Flows prepared in accordance with GAAP which incorporate all cash movements during the period.

The following table presents a reconciliation of net cash provided by operating activities to free cash flow available to News Corporation:

	For the nine months ended March 31,
	2019			2018
	(in millions)
Net cash provided by operating activities	$	661		$	465
Less: Capital expenditures		(417	)		(200	)
		244			265
Less: REA Group free cash flow		(164	)		(144	)
Plus: Cash dividends received from REA Group		69			63
Free cash flow available to News Corporation	$	149		$	184

Free cash flow available to News Corporation decreased by $35 million in the nine months ended March 31, 2019 to $149 million from $184 million in the corresponding period of fiscal 2018, primarily due to higher capital expenditures, partially offset by higher cash provided by operating activities as discussed above.

Borrowings

As of March 31, 2019, the Company had total borrowings of $1.55 billion, including the current portion. The Company’s borrowings as of such date reflect $1.33 billion of outstanding debt incurred by certain subsidiaries of new Foxtel (together with new Foxtel, the “Foxtel Group”) that the Company consolidated upon completion of the Transaction. The Foxtel Group debt includes U.S. private placement senior unsecured notes and drawn amounts under its revolving credit facilities, with maturities ranging from 2019 to 2024. Approximately $142 million and $366 million aggregate principal amount outstanding will mature during fiscal 2019 and 2020, respectively, and these debt repayments are expected to be funded primarily through a combination of cash on hand and debt refinancing. The Foxtel Group’s borrowings are guaranteed by certain members of the Foxtel Group. In accordance with ASC 805, these debt instruments were recorded at fair value as of the Transaction date. During the nine months ended March 31, 2019, the Foxtel Group had repayments of $714 million, including the repayment of its A$300 million (approximately $216 million) facility maturing in April 2019, and borrowings of $450 million. The repayment of the A$300 million facility maturing in April 2019 was repaid using A$300 million of shareholder loans provided by the Company.

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The Company’s borrowings as of March 31, 2019 also reflect the indebtedness of REA Group. During the nine months ended March 31, 2019, REA Group repaid $87 million (A$120 million) for its unsecured loan facility due December 2018. REA Group had remaining borrowings of $220 million, of which approximately $170 million (A$240 million) will mature in December 2019. The Company expects REA Group to fund this debt repayment primarily through a combination of cash on hand and debt refinancing.

The Company has additional borrowing capacity under its unsecured $650 million revolving credit facility (the “Facility”), which can be increased up to a maximum amount of $900 million at the Company’s request. The lenders’ commitments to make the Facility available terminate on October 23, 2020, provided the Company may request that the commitments be extended under certain circumstances for up to two additional one-year periods. As of the date of this filing, the Company has not borrowed any funds under the Facility. In addition, the Company has $241 million of undrawn commitments under the Foxtel Group’s revolving credit facilities.

The Company’s borrowings contains customary representations, covenants, and events of default. The Company was in compliance with all such covenants at March 31, 2019.

See Note 6—Borrowings in the accompanying Consolidated Financial Statements for further details regarding the Company’s outstanding debt, including certain information about interest rates and maturities related to such debt arrangements.

Commitments

The Company has commitments under certain firm contractual arrangements (“firm commitments”) to make future payments. These firm commitments secure the future rights to various assets and services to be used in the normal course of operations. The Company’s commitments as of March 31, 2019 have not changed significantly from the disclosures included in the 2018 Form 10-K.

Contingencies

The Company routinely is involved in various legal proceedings, claims and governmental inspections or investigations, including those discussed in Note 11 to the Consolidated Financial Statements. The outcome of these matters and claims is subject to significant uncertainty, and the Company often cannot predict what the eventual outcome of pending matters will be or the timing of the ultimate resolution of these matters. Fees, expenses, fines, penalties, judgments or settlement costs which might be incurred by the Company in connection with the various proceedings could adversely affect its results of operations and financial condition.

The Company establishes an accrued liability for legal claims when it determines that a loss is both probable and the amount of the loss can be reasonably estimated. Once established, accruals are adjusted from time to time, as appropriate, in light of additional information. The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be higher or lower than the amounts accrued for such matters. Legal fees associated with litigation and similar proceedings are expensed as incurred. The Company recognizes gain contingencies when the gain becomes realized or realizable. See Note 11 – Commitments and Contingencies in the accompanying Consolidated Financial Statements.

The Company’s tax returns are subject to on-going review and examination by various tax authorities. Tax authorities may not agree with the treatment of items reported in the Company’s tax returns, and therefore the outcome of tax reviews and examinations can be unpredictable. The Company believes it has appropriately accrued for the expected outcome of uncertain tax matters and believes such liabilities represent a reasonable provision for taxes ultimately expected to be paid. However, these liabilities may need to be adjusted as new information becomes known and as tax examinations continue to progress, or as settlements or litigations occur.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There has been no material change in the Company’s assessment of its sensitivity to market risk since its presentation set forth in Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” in the Company’s 2018 Form 10-K for the fiscal year ended June 30, 2018.

ITEM 4. CONTROLS AND PROCEDURES

(a) Disclosure Controls and Procedures

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15(d)-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this quarterly report. Based on such evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures were effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act and were effective in ensuring that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

(b) Internal Control Over Financial Reporting

There has been no change in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15(d)-15(f) under the Exchange Act) during the Company’s third quarter of fiscal 2019 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II

ITEM 1. LEGAL PROCEEDINGS

The following supplements the discussion set forth under “Legal Proceedings” in the Company’s 2018 Form 10-K.

Valassis Communications, Inc.

As reported in the 2018 Form 10-K, Valassis Communications, Inc. (“Valassis”) filed a complaint in the U.S. District Court for the Eastern District of Michigan (the “District Court”) against News America Incorporated, News America Marketing FSI L.L.C., News America Marketing In-Store Services L.L.C. and News Corporation (together, the “NAM Group”) on November 8, 2013 alleging violations of federal and state antitrust laws and common law business torts and seeking treble damages, injunctive relief and attorneys’ fees and costs. On December 19, 2013, the NAM Group filed a motion to dismiss the complaint, and on March 30, 2016, the District Court ordered that Valassis’s bundling and tying claims be dismissed and that all remaining claims in the NAM Group’s motion to dismiss be referred to a panel of antitrust experts (the “Antitrust Expert Panel”) appointed in connection with a prior action brought by Valassis against certain members of the NAM Group. The Antitrust Expert Panel was convened and, on February 8, 2017, recommended that the NAM Group’s counterclaims in the action be dismissed with leave to replead three of the four counterclaims. The NAM Group filed an amended counterclaim on February 27, 2017. Valassis subsequently filed motions with the District Court seeking, among other things, to transfer the case to the U.S. District Court for the Southern District of New York (the “N.Y. District Court”), and on September 25, 2017, the District Court granted Valassis’s motions and transferred the case to the N.Y. District Court. On April 13, 2018, the NAM Group filed a motion for summary judgment dismissing the case with the N.Y. District Court, and on February 21, 2019, the N.Y. District Court granted the NAM Group’s motion in part and denied it in part. The N.Y. District Court found that the NAM Group’s bidding practices were lawful but denied the NAM Group’s motion with respect to claims arising out of certain other alleged contracting practices. Valassis also ceased to pursue its claims relating to free-standing insert products, and those claims were dismissed. While it is not possible at this time to predict with any degree of certainty the ultimate outcome of this action, the NAM Group believes it has been compliant with applicable laws and intends to defend itself vigorously.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors disclosed in the Company’s 2018 Form 10-K.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

On May 9, 2019, the Company and Robert Thomson, Chief Executive Officer of the Company, entered into an Amended and Restated Employment Agreement (the “Amended and Restated Agreement”), effective immediately. The Amended and Restated Agreement extends Mr. Thomson’s term of employment until June 30, 2023 and provides for (i) an annual base salary of $3,000,000 (the same amount as his fiscal 2019 base salary); (ii) an annual bonus with a target of $5,000,000 (the same amount as his fiscal 2019 target annual bonus); and (iii) an annual long-term equity incentive (the “Equity Bonus”) with a target of $7,000,000 (an increase of $1,000,000 from his fiscal 2019 target Equity Bonus). At least $1,000,000 of the Equity Bonus target shall be solely based on the achievement of relative total stockholder return. The at-risk, performance-based portion of Mr. Thomson’s total annual target compensation under the Amended and Restated Agreement is 80%. All bonus payments and equity grants are subject to the Company’s claw-back policies.

If Mr. Thomson’s employment is terminated by the Company other than for cause (as defined in the Amended and Restated Agreement), death or disability or by Mr. Thomson for good reason (as defined in the Amended and Restated Agreement), the Amended and Restated Agreement provides that Mr. Thomson will receive (i) continued payment of his then-current base salary and annual bonus for two years after the date of termination (with the annual bonus to be based on the then-current target); (ii) a pro rata portion of the annual bonus he would have earned for the fiscal year of termination had no termination occurred (a “Pro-rated Annual Bonus”); and (iii) continued vesting of any Equity Bonus awards granted prior to the date of termination in the same manner as though Mr. Thomson continued to be employed for two years after the date of termination. If Mr. Thomson’s employment is terminated due to death or disability, he or his surviving spouse or estate, as applicable, would be entitled to: (i) salary continuation for 12 months; (ii) any Pro-rated Annual Bonus; and (iii) treatment of his outstanding Equity Bonus awards pursuant to the terms of applicable plan documents. Mr. Thomson’s salary continuation is payable during any period of disability for a period not to exceed 12 months. Payment of any compensation or benefits upon termination is subject to Mr. Thomson’s execution of the Company’s then-standard separation agreement and general release and continued compliance with their terms. The Amended and Restated Agreement continues to have confidentiality, non-competition and other covenants to protect the Company.

In addition, the Amended and Restated Agreement provides that, if Mr. Thomson is entitled to receive any “excess parachute payments” under Section 280G of the Internal Revenue Code of 1986, as amended, in connection with a change in control, those payments will either (i) be reduced below the applicable threshold, or (ii) paid in full, whichever is more favorable for Mr. Thomson on a net after-tax basis. Mr. Thomson is not entitled to any golden parachute excise tax “gross-up” payments.

The description of the Amended and Restated Agreement is qualified in its entirety by the full text of the Amended and Restated Agreement, which is filed as Exhibit 10.2 to this Quarterly Report on Form 10-Q and is incorporated herein by reference.

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ITEM 6. EXHIBITS

(a) Exhibits.

2.1	Partial Assignment and Assumption Agreement, dated as of March 18, 2019, among Twenty-First Century Fox, Inc., Fox Corporation, News Corporation and News Corp Holdings UK  & Ireland, in respect of the Separation and Distribution Agreement, dated June 28, 2013.*
3.1	Amended and Restated By-laws of News Corporation, effective February  25, 2019. (Incorporated by reference to Exhibit 3.1 to the Current Report of News Corporation on Form 8-K (File No. 001-35769) filed with the Securities and Exchange Commission on February 25, 2019.)
10.1	News Corp Restoration Plan, amended and restated as of February 11, 2019.*
10.2	Amended and Restated Employment Agreement, dated May 9, 2019, between News Corporation and Robert Thomson.*
31.1	Chief Executive Officer Certification required by Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as amended.*
31.2	Chief Financial Officer Certification required by Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as amended.*
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes Oxley Act of 2002.**
101	The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 formatted in eXtensible Business Reporting Language: (i) Consolidated Statements of Operations for the three and nine months ended March 31, 2019 and 2018 (unaudited); (ii) Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended March 31, 2019 and 2018 (unaudited); (iii) Consolidated Balance Sheets as of March 31, 2019 (unaudited) and June 30, 2018 (audited); (iv) Consolidated Statements of Cash Flows for the nine months ended March 31, 2019 and 2018 (unaudited); and (v) Notes to the Unaudited Consolidated Financial Statements.*

* Filed herewith.

** Furnished herewith

66

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

NEWS CORPORATION (Registrant)
By:	/s/ Susan Panuccio
	Susan Panuccio
	Chief Financial Officer

Date: May 10, 2019

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EX-2.1

Exhibit 2.1

Partial Assignment and Assumption Agreement

This Partial Assignment and Assumption Agreement (this “Agreement”) dated as of March 18, 2019, is entered into among Twenty-First Century Fox, Inc. (formerly News Corporation at the time of the execution of the News Corp Separation Agreement (as defined below)) (“Assignor”), Fox Corporation (“Assignee”) and, solely with respect to Section 4, Section 5 and Section 6 hereof, News Corporation (formerly New Newscorp Inc at the time of the execution of the News Corp Separation Agreement) (“News Corp”) and News Corp Holdings UK & Ireland (“News Corp UK & Ireland”). Any terms used but not defined herein shall have the meaning attributed to them in the Separation and Distribution Agreement among News Corporation, New Newscorp Inc and News Corp Holdings UK & Ireland, dated June 28, 2013 (the “News Corp Separation Agreement”).

WHEREAS, pursuant to that certain Amended and Restated Agreement and Plan of Merger, dated as of June 20, 2018, among The Walt Disney Company (“Disney”), Assignor, and certain wholly owned subsidiaries of Disney, after the Separation (as defined below) and the distribution of all of the issued and outstanding common stock of Assignee to the holders of the outstanding shares of Assignor common stock on a pro rata basis, Disney will acquire Assignor under a newly formed holding company, TWDC Holdco 613 Corp. (the “Disney Transaction”);

WHEREAS, prior to the closing of the Disney Transaction, Assignor will, among other things, engage in an internal restructuring, whereby it will transfer to Assignee and its subsidiaries, the FOX Assets (as defined below), and Assignee and its subsidiaries will assume from 21CF the FOX Liabilities (as defined below) (the “Separation”);

WHEREAS, following the Separation and prior to the closing of the Disney Transaction, Assignor will distribute or otherwise transfer all of the issued and outstanding common stock of Assignee to Assignor stockholders (other than holders that are subsidiaries of Assignor) on a pro rata basis, resulting in Assignee becoming a new publicly traded company (the “Distribution”, and the effective time of the Distribution, the “Distribution Time”);

WHEREAS, in order to effectuate the Separation, effective immediately prior to the Distribution Time (the “Effective Time”), Assignor desires to assign, convey, transfer and set over to Assignee certain of Assignor’s rights, benefits, privileges, interests and obligations under the News Corp Separation Agreement and Assignee desires to accept such assignment, conveyance, transfer and set over from Assignor and to assume certain of Assignor’s obligations under the News Corp Separation Agreement and to agree to satisfy, pay, perform and discharge, as and when due, such obligations, in each case, on the terms set forth herein; and

WHEREAS, pursuant to Section 9.06 of the News Corp Separation Agreement, Assignor may assign its rights and obligations under the News Corp Separation Agreement to any of its affiliates, and Assignor may be released from such obligations with the consent of News Corp and News Corp UK & Ireland and News Corp and News Corp UK & Ireland desire to consent to such release of Assignor.

NOW, THEREFORE, in consideration of the mutual covenants, terms and conditions set out herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. Effectiveness. This Agreement shall be effective as of the Effective Time. In the event the Separation does not occur for any reason, this Agreement will be null and void with no further action required on the part of either party.

2. Assignment. Assignor hereby irrevocably assigns, conveys and transfers to Assignee all of Assignor’s rights, benefits, privileges, interests, burdens, obligations and liabilities under the News Corp Separation Agreement (i) to the extent related to the FOX Assets and/or the FOX Liabilities (whether occurring on, before or after the Effective Time) and (ii) set forth in Section 5.09 of the News Corp Separation Agreement (collectively, the “Assigned Rights and Obligations”), including, without limitation:

(a)    the rights, benefits, privileges and interests to the extent related to any Remainco Asset that is a FOX Asset;

(b)    the right to enforce for Assignee’s benefit any of the covenants, agreements or undertakings of News Corp or News Corp UK & Ireland under the News Corp Separation Agreement, to the extent related to the FOX Assets and/or the FOX Liabilities, including, without limitation, to the extent related to the FOX Assets and/or the FOX Liabilities, Assignor’s rights, benefits, privileges and interests under Article IV (Survival and Indemnification; Mutual Releases), Section 2.02 (The Separation and Related Transactions), Section 5.01 (Further Assurances), Section 5.02(b) (Certain Business Matters) and Section 6.04 (Record Retention), in each case, of the News Corp Separation Agreement;

(c)    the burdens, obligations and liabilities of Assignor pursuant to any covenants, agreements or undertakings of Assignor under the News Corp Separation Agreement to the extent related to the FOX Assets and/or the FOX Liabilities, including, without limitation, to the extent related to the FOX Assets and/or the FOX Liabilities, Assignor’s burdens, obligations and liabilities under Article IV (Survival and Indemnification; Mutual Releases) (other than with respect to the U.K. Newspaper Matters set forth in Section 4.06 of the News Corp Separation Agreement), Section 2.02 (The Separation and Related Transactions), Section 5.01 (Further Assurances), Section 5.02(b) (Certain Business Matters) and Section 6.04 (Record Retention), in each case, of the News Corp Separation Agreement;

(d)    the burdens, obligations and liabilities to the extent related to any Remainco Liability (other than with respect to the U.K. Newspaper Matters set forth in Section 4.06 of the News Corp Separation Agreement) that is a FOX Liability; and

(e)    all burdens, obligations and liabilities of Assignor with respect to the U.K. Newspaper Matters set forth in Section 4.06 of the News Corp Separation Agreement (other than with respect to any Liabilities related to Assignor’s securities filings,

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maintenance of books and records, corporate compliance and other corporate level actions or oversight and indemnification obligations to current and former directors and officers of Assignor) (the burdens, obligations and liabilities set forth in clauses (ii)(c), (d), and (e) the “Assumed Obligations”).

3. Acceptance and Assumption. Assignee unconditionally accepts the assignment, conveyance and transfer of the Assigned Rights and Obligations and, without limiting the foregoing, assumes and agrees to satisfy, pay, perform and discharge, as and when due, all of the Assumed Obligations (whether occurring on, before or after the Effective Time).

4. Remainco Indemnified Parties. Assignor, Assignee, News Corp and News Corp UK & Ireland acknowledge and agree that the term “Remainco Indemnified Parties” in the News Corp Separation Agreement shall be amended so as to include each member of the FOX Group and their respective current and former directors, officers, agents and employees, and each of their heirs, executors, successors and assigns.

5. Novation.

(a)    News Corp, on behalf of itself and the New News Corporation Indemnified Parties, hereby discharges and releases Assignor from all obligations and Liabilities arising out of or in any way connected to the News Corp Separation Agreement that constitute Assigned Rights and Obligations (whether occurring on, before or after the Effective Time).

(b)    News Corp UK & Ireland hereby discharges and releases Assignor from all obligations and Liabilities arising out of or in any way connected to the News Corp Separation Agreement that constitute Assigned Rights and Obligations (whether occurring on, before or after the Effective Time).

(c)    Assignor, on behalf of itself and the Remainco Indemnified Parties (other than each member of the FOX Group and their respective current and former directors, officers, agents and employees, and each of their heirs, executors, successors and assigns), hereby discharges and releases News Corp and News Corp UK & Ireland from all obligations and Liabilities arising out of or in any way connected to the News Corp Separation Agreement that constitute Assigned Rights and Obligations (whether occurring on, before or after the Effective Time).

(d)    The parties intend that this Agreement is a novation of the Assigned Rights and Obligations and that Assignee be substituted for Assignor with respect to the Assigned Rights and Obligations of the News Corp Separation Agreement. News Corp and News Corp UK & Ireland recognize Assignee as Assignor’s successor-in-interest in and to the Assigned Rights and Obligations and agree that Assignee shall, solely with respect to the Assigned Rights and Obligations, be treated as if it were a party to the News Corp Separation Agreement.

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(e)    For avoidance of doubt, nothing in this Section 5 shall affect any rights, Liabilities, or obligations (i) of Assignor arising out of or in any way connected to the News Corp Separation Agreement that do not constitute Assigned Rights and Obligations, (ii) of News Corp and News Corp UK & Ireland arising out of or in any way connected to the News Corp Separation Agreement that do not constitute Assigned Rights and Obligations, (iii) of News Corp and News Corp UK & Ireland arising out of or in any way connected to the News Corp Separation Agreement with respect to the Assigned Rights and Obligations as they relate to Assignee as a result of the provisions of Section 2, Section 3 and Section 4 of this Agreement, (iv) of Assignee and its current and former directors, officers, agents and employees and each of their heirs, executors, successors and assigns arising out of or in any way connected to the News Corp Separation Agreement with respect to the Assigned Rights and Obligations as a result of the provisions of Section 2, Section 3 and Section 4 of this Agreement and (v) of Assignor or Assignee pursuant to the FOX Separation Agreement (as defined below).

6. Notices. Assignor, Assignee, News Corp and News Corp UK & Ireland acknowledge and agree that (i) any notice sent by Assignee with respect to any portion of the News Corp Separation Agreement that has been assigned to it by this Agreement shall be deemed properly delivered under the News Corp Separation Agreement (as if sent by Assignor) if sent in accordance with the requirements of Section 9.04 of the News Corp Separation Agreement and (ii) any notice sent by News Corp or News Corp UK to Assignor shall be deemed delivered to Assignee to the extent sent in accordance with Section 9.04 of the News Corp Separation Agreement and related to any portion of the News Corp Separation Agreement assigned to Assignee pursuant to this Agreement. Assignor shall promptly after becoming aware thereof refer, forward or otherwise deliver any notice received by it from News Corp or News Corp UK that relates to any portion of the News Corp Separation Agreement assigned to Assignee pursuant to this Agreement, to Assignee at the Address.

7. Certain Definitions.

(a)    “Address” shall mean:

Fox Corporation

10201 W. Pico Blvd.,

Los Angeles, California 90067

Attention: Chief Legal and Policy Officer

Email: Viet.Dinh@fox.com

(b)    “FOX Assets” shall have the meaning as set forth in the Separation and Distribution Agreement, dated on or about of March 19, 2019, by and between Twenty-First Century Fox, Inc. and Fox Corporation (the “FOX Separation Agreement”).

(c)    “FOX Group” shall have the meaning as set forth in the FOX Separation Agreement.

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(d)    “FOX Liabilities” shall have the meaning as set forth in the FOX Separation Agreement.

8. Miscellaneous.

(a)    Further Assurances. Each of the parties shall use its commercially reasonable efforts, on and after the Effective Time, to take, or cause to be taken, all actions, and to do, or cause to be done, all things, reasonably necessary, proper or advisable under applicable laws, regulations and agreements to consummate and make effective the transactions contemplated by this Agreement.

(b)    Entire Agreement. This Agreement, including any exhibits and schedules hereto, the FOX Separation Agreement (solely with respect to Assignee and Assignor), and the News Corp Separation Agreement contain all of the terms, conditions and representations and warranties agreed upon or made by the parties relating to the subject matter of this Agreement and supersede all prior and contemporaneous agreements, negotiations, correspondence, undertakings and communications of the parties or their representatives, oral or written, respecting such subject matter.

(c)    Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. If any provision of this Agreement, or the application thereof to any person or any circumstance, is invalid or unenforceable, (i) a suitable and equitable provision negotiated in good faith by the parties hereto shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (ii) the remainder of this Agreement and the application of such provision to other persons or circumstances shall not, subject to clause (i) above, be affected by such invalidity or unenforceability, except as a result of such substitution, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application thereof, in any other jurisdiction.

(d)    Amendment and Modification. No amendment to or rescission, termination, or discharge of this Agreement is effective unless it is in writing and signed by an authorized representative of each party to this Agreement (other than as set forth in Section 1).

(e)    Counterparts. This Agreement may be executed in any number of counterparts (including by facsimile or by attachment to electronic mail in portable document format (PDF)), each such counterpart being deemed to be an original instrument, and all such counterparts shall together constitute the same agreement, and shall become effective when one or more counterparts have been signed by each of the parties hereto and delivered to the other parties hereto.

(f)    Third Party Beneficiaries. Except for those provisions related to the Remainco Indemnified Parties and the New News Corporation Indemnified Parties, this Agreement

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is solely for the benefit of each party hereto and its respective affiliates, successors or permitted assigns, and it is not the intention of the parties to confer third party beneficiary rights upon any other person, and should not be deemed to confer upon any third party any remedy, claim, liability, reimbursement, proceedings or other right in excess of those existing without reference to this Agreement.

[Signature page follows. The remainder of this page is intentionally left blank.]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Time.

ASSIGNOR
Twenty-First Century Fox, Inc.
By:	/s/ Janet Nova
Name:	Janet Nova
Title:	Executive Vice President and Deputy Group General Counsel

ASSIGNEE
Fox Corporation
By:	/s/ John Nallen
Name:	John Nallen
Title:	Chief Operating Officer

NEWS CORP
News Corporation
By:	/s/ Michael Bunder
Name:	Michael Bunder
Title:	Senior Vice President, Deputy General Counsel and Corporate Secretary

NEWS CORP UK & IRELAND
News Corp Holdings UK & Ireland
By:	/s/ Christopher Longcroft
Name:	Christopher Longcroft
Title:	Director

[Signature Page to Partial Assignment and Assumption Agreement]

EX-10.1

Exhibit 10.1

NEWS CORP

RESTORATION PLAN

Amended and restated as of February 11, 2019

NEWS CORP

RESTORATION PLAN

Table of Contents

		Page
ARTICLE 1.	DEFINITIONS		1
1.1.	“Account”		1
1.2.	“Additional Compensation”		1
1.3.	“Affiliated Entity”		2
1.4.	“Beneficiary”		2
1.5.	“Board of Directors”		2
1.6.	“Code”		2
1.7.	“Committee”		2
1.8.	“Company”		2
1.9.	“Compensation”		2
1.10.	“Compensation Limit”		3
1.10A.	“Contribution Limit”		3
1.11.	“Disability”		3
1.11A.	“Discretionary Credit”		3
1.12.	“Reserved”		3
1.13.	“Earnings Credit”		3
1.14.	“Eligible Employee”		3
1.15.	“Employee”		3
1.16.	“Employer”		3
1.17.	“Employer Credit”		4
1.18.	“Investment Committee”		4
1.19.	“News Corp 401(k) Savings Plan”		4
1.20.	“Participant”		4
1.21.	“Plan”		4
1.22.	“Plan Year”		4
1.23.	“Separation from Service”		4
1.24.	“Termination of Employment”		5
1.25.	“Transition Credit”		5

ARTICLE 2.	PARTICIPATION, EMPLOYER CREDITS, TRANSITION CREDITS, DISCRETIONARY CREDITS AND VESTING	5
2.1.	Participation.	5
2.2.	Employer Credits.	5
2.3.	Transition Credits.	6
2.4.	Discretionary Credits.	6
2.5.	Vesting.	7
ARTICLE 3.	EARNINGS CREDITS	7
3.1.	Earnings Credits.	7
3.2.	Determination of Earnings Credits.	7
ARTICLE 4.	TERMINATION AND DISTRIBUTION	8
4.1.	Termination of Active Participation.	8
4.2.	Distribution of Account.	8
ARTICLE 5.	ADMINISTRATION OF PLAN	10
5.1.	Committee Action and Delegation.	10
5.2.	Effect of Committee’s Action.	10
ARTICLE 6.	CLAIMS PROCEDURE	11
6.1.	Claims.	11
ARTICLE 7.	MISCELLANEOUS	12
7.1.	Amendment or Termination of the Plan.	12
7.2.	No Contract for Employment.	12
7.3.	Payments to Persons under Legal Disability.	12
7.4.	Unclaimed Benefits.	12
7.5.	Multiple Claims for Benefits.	13
7.6.	Construction.	13
7.7.	Funding.	13
7.8.	Participant’s Interest.	13
7.9.	Withholding.	14
7.10.	Severability.	14
7.11.	Governing Law.	14

NEWS CORP

RESTORATION PLAN

The purpose of this News Corp Restoration Plan is (i) to provide participants with supplemental retirement benefits in addition to the benefits payable from the Company’s or an Affiliated Entity’s qualified retirement plans and Social Security, (ii) to provide participants, on an unfunded basis, with those retirement benefits which would have become payable under the News Corp 401(k) Savings Plan but for the limitations directly or indirectly imposed by the Code on the contributions which could have been provided under such plans with respect to employee participants, and (iii) to provide the Company and its Affiliated Entities with a method of rewarding and retaining its management and highly compensated employees. The Plan, which was originally adopted effective July 1, 2013 as the NC Transaction, Inc. Restoration Plan and subsequently amended, is further amended and restated in its entirety as set forth herein, effective February 11, 2019.

This Plan is intended to qualify as a plan solely for the benefit of a select group of management and highly compensated employees of the Company and certain of its subsidiary and affiliated business entities under the Employee Retirement Income Security Act of 1974, as amended, and shall be administered and interpreted in a manner consistent with such intent.

ARTICLE 1. DEFINITIONS

When used in this document, capitalized words and phrases will have the following meanings unless the context clearly requires a different meaning:

1.1. “Account”

means the account established on the Company’s books and records for each Participant which reflects the deferred amounts which the Company promises to pay to the Participant under the terms and conditions of this Plan. Each Participant’s Account may be subdivided into multiple subaccounts as necessary or convenient to reflect (i) the source of amounts credited to the subaccount or (ii) Earnings Credits accrued pursuant to the Plan. References to a Participant’s “Account” shall refer to the Account in the aggregate, or any subaccount, as the context may dictate.

1.2. “Additional Compensation”

means the amount of a Participant’s Compensation for the Plan Year, determined pursuant to Section 1.9, in excess of the Compensation Limit. In addition, the Committee, in its sole and absolute discretion, may elect to include other amounts in the Additional Compensation of an individual Participant.

For the 2013 Plan Year, the Plan shall take into account Compensation earned by a Participant from January 1, 2013 through December 31, 2013 for the sole purpose of determining when a Participant has exceeded the Compensation Limit for the Plan Year; however, only Compensation earned by a Participant from July 1, 2013 through December 31, 2013 shall be eligible to be Additional Compensation hereunder. For example, Participant X earns $650,000 during the 2013 calendar year. As of June 30, 2013, Participant X has earned $325,000 and has exceeded the Compensation Limit of $255,000 for the 2013 calendar year. Participant X’s Additional Compensation for the 2013 Plan Year equals $325,000, which represents the amount of Participant X’s Compensation earned July 1, 2013 through December 31, 2013 in excess of the Compensation Limit. As an additional example, Participant Y earns $400,000 during the 2013 calendar year. As of June 30, 2013, Participant Y has earned $200,000 and has not yet exceeded the Compensation Limit of $255,000 for the 2013 calendar year. Participant Y’s Additional Compensation for the 2013 Plan Year equals $145,000, which represents the amount of Participant Y’s Compensation earned July 1, 2013 through December 31, 2013 in excess of the Compensation Limit.

1.3. “Affiliated Entity”

means any corporation, limited liability company, partnership, or other business entity or division or department of an entity having employees to whom the Board of Directors has extended (with the acceptance of such entity) the benefits of this Plan, or any successor entities of such an entity.

1.4. “Beneficiary”

means the person or persons designated as such by a Participant pursuant to Section 4.2(c) hereof to receive any amounts payable under this Plan with respect to such Participant following the Participant’s death or, if applicable, the contingent or default Beneficiary determined pursuant to Section 4.2(c).

1.5. “Board of Directors”

means the Board of Directors of NC Transaction, Inc.

1.6. “Code”

means the Internal Revenue Code of 1986, as amended from time to time.

1.7. “Committee”

means the News Corp Administrative Committee (or its successor).

1.8. “Company”

means NC Transaction, Inc., or its successors.

1.9. “Compensation”

means a Participant’s “Compensation” as defined under the News Corp 401(k) Savings Plan for the Plan Year. For the avoidance of doubt, a Participant’s Compensation for the 2013 Plan Year shall only include Compensation earned by such Participant from July 1, 2013 through December 31, 2013. Notwithstanding the foregoing, Compensation for a Plan Year in excess of the following amounts shall not be taken into account for purposes of this Plan:

(i) for (x) the Company’s Chief Executive Officer, Chief Financial Officer and General Counsel, (y) Employees who are chief executive officers or presidents of the Company’s operating companies, business units or segments who report directly to the Company’s Chief Executive Officer and (z) Employees of the Executive Leadership team who report directly to the Company’s Chief Executive Officer, Compensation in excess of $5 million; and

(ii) for all Employees not covered by the preceding clause (i), Compensation in excess of $500,000.

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1.10. “Compensation Limit”

means an amount determined and adjusted pursuant to Code section 401(a)(17) and the guidance issued thereunder that sets forth the maximum annual Compensation that may be taken into account under the News Corp 401(k) Savings Plan.

1.10A. “Contribution Limit”

means an amount determined and adjusted pursuant to Code section 415(c) and the guidance issued thereunder that sets forth the maximum annual amount that may be contributed to the account of any participant in the News Corp 401(k) Savings Plan.

1.11. “Disability”

means a condition under which a Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months.

1.11A. “Discretionary Credit”

means the amount that the Company or an Affiliated Entity credits to a Participant’s Account pursuant to Section 2.4 of the Plan with respect to any Plan Year.

1.12. “Reserved”

1.13 “Earnings Credit”

means the amount credited to a Participant’s Account pursuant to Section 3.1 and determined pursuant to Section 3.2.

1.14. “Eligible Employee”

means an Employee who is (i) an active participant in the News Corp 401(k) Savings Plan; (ii) is not actively accruing benefits under any of the Company’s or an Affiliated Entity’s defined benefit pension plans; and (iii) is not currently receiving “RAP Contributions” under the News Corp 401(k) Savings Plan (the “HarperCollins Retirement Account Sub-Plan” or “RAP”).

1.15. “Employee”

means any person employed by an Employer (but only while the Employer is, or was, the Company or an Affiliated Entity, unless otherwise provided in this Plan). Employee shall include an individual who would be an Employee but who is on an approved leave of absence. Employee shall not include, however, any director of the Company or an Affiliated Entity not otherwise employed as an Employee.

1.16. “Employer”

means the Company or any Affiliated Entity that employs management or other highly compensated Employees who are Eligible Employees.

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1.17. “Employer Credit”

means the amount that the Company or an Affiliated Entity credits to a Participant’s Account pursuant to Section 2.2 of the Plan with respect to any Plan Year.

1.18. “Investment Committee”

means the News Corp U.S. Defined Contribution Plans Investment Committee.

1.19 “News Corp 401(k) Savings Plan”

means the News Corp 401(k) Savings Plan, effective January 1, 2016, as amended (formerly known as the NC Transaction, Inc. Savings Plan (“NCTI Savings Plan”).

1.20. “Participant”

means an Eligible Employee to whose Account the Company or an Affiliated Entity credits an Employer Credit, Transition Credit or Discretionary Credit under the terms of this Plan.

1.21. “Plan”

means the News Corp Restoration Plan as set forth in this document and as amended from time to time.

1.22. “Plan Year”

means the twelve-month period beginning January 1 and ending December 31. Notwithstanding the foregoing, for 2013 only, the Plan Year means the 6-month period beginning on July 1, 2013 and ending December 31, 2013.

1.23. “Separation from Service”

means the Participant’s death, retirement, or other termination of employment with the Company or an Affiliated Entity, whether voluntary or involuntary, and shall be construed in accordance with Treasury Regulation Section 1.409A-1(h). For purposes of this Plan, a Separation from Service shall include the date as of which a person recovers from a Disability and does not return to employment with the Company or any Affiliated Entity and shall not mean a leave of absence as a result of military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed six months, or if longer, so long as the Participant’s right to reemployment with the Company is provided either by statute or by contract and there is a reasonable expectation that the Participant will return to perform services for the Company or an Affiliated Entity. For a Participant who is employed by an Affiliated Entity, unless otherwise provided by the Committee, in its sole and absolute discretion, a Separation from Service hereunder shall also be deemed to occur as of the date that such Participant’s Employer ceases to be within the Company’s controlled group, determined pursuant to Code Sections 414(b), (c), or (m), whether by merger, sale, exchange, or other transaction, if such Participant remains employed by such Affiliated Entity as of and after such transaction.

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1.24. “Termination of Employment”

means the later to occur of (i) a Participant’s termination of employment with the Company or an Affiliated Entity, for any reason, whether voluntary or involuntary, or (ii) a Participant’s Separation from Service as an Employee. References to “termination of employment” shall be deemed to refer to a “separation from service” within the meaning of Code Section 409A.

1.25. “Transition Credit”

means the amount that the Company or an Affiliated Entity credits to a Participant’s Account pursuant to Section 2.3 of the Plan.

For participants in the News Corp 401(k) Savings Plan, words and phrases defined in the News Corp 401(k) Savings Plan shall have the same meanings when used herein unless expressly provided to the contrary herein.

ARTICLE 2. PARTICIPATION, EMPLOYER CREDITS, TRANSITION CREDITS, DISCRETIONARY CREDITS AND VESTING

2.1. Participation.

(a) Participation in the Plan. Participation in the Plan shall be limited to each Eligible Employee with respect to whom (i) allocations of employer contributions under the News Corp 401(k) Savings Plan are reduced or limited as a result of the Compensation Limit or (ii) any contributions under the News Corp 401(k) Savings Plan are reduced or limited as a result of the Contribution Limit. Notwithstanding the foregoing or anything herein to the contrary, no Eligible Employee under this Plan who is currently receiving RAP Contributions (as defined in the RAP) under the News Corp 401(k) Savings Plan (the “HarperCollins Retirement Account Sub-Plan” or “RAP”) may participate in the Plan, until the Plan Year following the Plan Year in which such Eligible Employee ceases receiving RAP Contributions. Moreover, for the Plan Year ending December 31, 2016, any Eligible Employee of HarperCollins Publishers Inc. shall only be eligible to receive a Discretionary Credit under the Plan (as described in Section 2.4) and will not be eligible for an Employer Credit (as described in Section 2.2) or Transition Credit (as described in Section 2.3).

(b) Becoming a Participant. An Eligible Employee shall become a Participant upon his having an amount credited to his Account as an Employer Credit, Transition Credit or Discretionary Credit by the Company or an Affiliated Entity.

2.2. Employer Credits.

(a) Determination of Employer Credits. A Participant in the Plan shall be eligible to receive an Employer Credit equal to the sum of: (i) 5.5% of such Participant’s Additional Compensation for a Plan Year; plus (ii) the excess, if any of (A) the amount that would have been contributed to the Participant’s account under the News Corp 401(k) Savings Plan for the Plan Year but for the Contribution Limit, over (B) the amount actually contributed to the Participant’s account under the News Corp 401(k) Savings Plan for such Plan Year, provided that, for purposes of this Section 2.2, the amount that would have been contributed to the Participant’s account under the News Corp 401(k) Savings Plan for a Plan Year shall be determined as if the Participant contributed the maximum elective deferrals under the News Corp 401(k) Savings Plan, subject to the limitations under Section 402(g) of the Code, and made no after-tax contributions to the News Corp 401(k) Savings Plan.

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(b) Crediting of Employer Credits. An Employer Credit shall be credited to the Account under the Plan of a Participant who satisfies the requirements of Section 2.1(a) with respect to each pay period during the Plan Year in which the Participant has received Additional Compensation for such Plan Year, and otherwise within 90 days after the last day of such Plan Year provided that such Participant is employed by an Employer on the first business day after the close of such Plan Year.

2.3. Transition Credits.

(a) Determination of Transition Credits. A Participant in the Plan who (i) was a participant earning benefits in the NC Transaction, Inc. Supplemental Executive Retirement Plan (the “NCTI SERP”) as of February 28, 2014, and (ii) is age 40 or older as of December 31, 2014, shall be eligible to receive a Transition Credit based on the chart below:

Age as of December 31, 2014	% of Participant’s Additional Compensation for  a Plan Year
Age 40 or older, but younger than age 45	1%
Age 45 or older, but younger than age 50	3%
Age 50 or older, but younger than age 55	6%
Age 55 or older, but younger than age 60	8%
Age 60 or older	10%

(b) Crediting of Transition Credits. A Transition Credit shall be credited to the Account under the Plan of a Participant who satisfies the requirements of Section 2.3(a) with respect to each pay period during the Plan Year in which the Participant has received Additional Compensation for such Plan Year. Transition Credits will only be credited with respect to pay periods between March 1, 2014 and February 28, 2019. Notwithstanding the foregoing, the following rules apply for Transition Credits made for pay periods in 2014 and 2019:

i. For Transition Credits made from March 1, 2014 through December 31, 2014, the Transition Credit each pay period will be equal to 10/12 (representing the 10 eligible months in 2014) of the applicable percentage in the chart in Section 2.3(a).

ii. For Transition Credits made from January 1, 2019 through February 28, 2019, the Transition Credit each pay period will be equal to 2/12 (representing the 2 eligible months in 2019) of the applicable percentage in the chart in Section 2.3(a).

2.4. Discretionary Credits.

(a) Determination of Discretionary Credits. The Company or an Affiliated Entity may, in its sole discretion, elect to contribute a Discretionary Credit in any amount it so chooses to any Participant for a Plan Year.

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(b) Crediting of Discretionary Credits. Any Discretionary Credit shall be credited to the Account under the Plan of a Participant for whom the Company or an Affiliated Entity has elected to make such contribution for the Plan Year as soon as administratively practicable following the end of the applicable Plan Year.

2.5. Vesting.

Any amount credited to a Participant’s Account, including Employer Credits, Transition Credits, Discretionary Credits and Earnings Credits on such amounts pursuant to Section 3.1 hereof, will fully (100%) vest upon the Participant’s attainment of two (2) years of service (determined in the same manner as Vesting Service is determined under the News Corp 401(k) Savings Plan).

ARTICLE 3. EARNINGS CREDITS

3.1. Earnings Credits.

Each Participant’s Account shall be credited with Earnings Credits, determined pursuant to Section 3.2, which will be allocated to each Participant’s Account based on the dividends and interests applicable to each Benchmark Fund(s) (as defined in Section 3.2).

3.2. Determination of Earnings Credits.

The Investment Committee will select a number of investment vehicles such as mutual funds, index funds, or investment portfolios which will serve as benchmarks for investment of Participants’ Accounts (the “Benchmark Funds”). These Benchmark Funds will be used solely as hypothetical measuring devices to determine the Earnings Credits to be credited to each Participant’s Account.

Effective March 4, 2014, each Participant may direct that his or her Account be allocated among one or more subaccounts, and each of which will be adjusted in an amount equal to the earnings, expenses, gains or losses attributable to the Benchmark Fund(s) selected by the Participant.

Except as otherwise determined by the Committee, a Participant may change the allocation of his or her Account among the Benchmark Funds effective on any business day. The Committee may establish reasonable rules for notice and cutoff times or other restrictions for reallocations among the Benchmark Funds.

If a Participant fails to specify a different allocation, all amounts credited to his or her Account will be deemed allocated to the applicable Fidelity Freedom K^® Fund, or such Benchmark Fund as shall be determined by the Investment Committee from time to time.

The Investment Committee will establish the number of Benchmark Funds to be available for Participants’ Accounts and may add additional Benchmark Funds, eliminate any Benchmark Fund, or designate another investment vehicle to be used as the measuring device for any Benchmark Fund. The Investment Committee may limit the allocation of amounts to any Benchmark Fund to selected Participants.

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ARTICLE 4. TERMINATION AND DISTRIBUTION

4.1. Termination of Active Participation.

(a) Direction by Committee. The Committee may direct that a Participant’s active participation in this Plan be terminated at any time regardless of whether the Participant’s employment with the Company and/or Affiliated Entities has terminated (provided, however, that Employer Credits, Transition Credits and Discretionary Credits shall cease for any Plan Year only to the extent such cessation would not violate Section 409A of the Code). If a Participant’s active participation in the Plan is terminated and he continues in employment with the Company or an Affiliated Entity, the Participant will not be eligible to receive Employer Credits, Transition Credits or Discretionary Credits, but his Account will continue to be deferred and will be credited with Earnings Credits until distributed following his Separation from Service.

(b) Termination of Employment. Each Participant’s active participation in this Plan will terminate automatically upon his Termination of Employment.

4.2. Distribution of Account.

A Participant’s Account shall only be distributed upon such Participant’s Separation from Service and shall be distributed pursuant to this Section 4.2.

(a) Form of Distributions. Upon a Participant’s Separation from Service, the amounts credited to his Account will be paid to the Participant or, in the event of the Participant’s death, to his beneficiary, as provided herein.

(1) If the Participant’s Separation from Service occurs prior to his attainment of age fifty-five (55), then:

(A) if the Participant’s Separation from Service is as a result of death, the balance of the Participant’s Account will be distributed in a single lump-sum payment in the first (1^st) month of the calendar quarter following the effective date of such Separation from Service, or

(B) if the Participant’s Separation from Service is for any reason other than death, then the balance of all amounts in the Participant’s Account will be distributed in a single lump-sum payment as soon as administratively practicable following six (6) months after such Participant’s Separation from Service.

(2) If the Participant’s Separation from Service occurs on or after his attainment of age fifty-five (55), then distribution will be made in ten (10) consecutive annual installments. Installments will be calculated in the manner described in Section 4.2(b).

(A) If the Participant’s Separation from Service is as a result of death, the first of any installment payments shall be made in the first (1^st) month of the calendar quarter following the effective date of such Separation from Service, and any subsequent installments shall be made on the anniversary date of the previous installment payment (or as soon as administratively practicable thereafter).

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(B) If a Participant’s Separation from Service is for any reason other than death, then the first of any installment payments attributable to all amounts in the Participant’s Account shall be made as soon as administratively practicable following six (6) months after such Participant’s Separation from Service, and any subsequent installments shall be made on the anniversary date of the previous installment payment (or as soon as administratively practicable thereafter).

(b) Calculation of Installments. If a distribution is paid in annual installments, each installment payment (except the last) will equal the balance in the Participant’s Account on the last business day preceding the date of payment divided by the number of remaining installments (including the installment being paid). The final installment will be equal to the balance in the Participant’s Account on the date of payment.

(c) Beneficiary Designation. Each Participant will have the revocable right to make a written designation of one or more Beneficiaries and one or more contingent Beneficiaries. The designation of a Beneficiary and/or contingent Beneficiary, and any revocation and new designation, will be effective when received by the Committee.

(1) In the event of a Participant’s death prior to the payment of all amounts in his Account, remaining amounts will be paid to the Participant’s Beneficiary or Beneficiaries. If the Participant is predeceased by his designated Beneficiary or Beneficiaries, all remaining amounts will be paid to the Participant’s contingent Beneficiary or Beneficiaries. If no Beneficiary is designated, or if all designated Beneficiaries and contingent Beneficiaries have predeceased the Participant, any unpaid amounts will be paid to the executor or other legal representative of the Participant’s estate.

(2) If distribution of the Participant’s Account has begun in installments prior to his death, the remaining installments will be paid when due to his Beneficiary, contingent Beneficiary, or estate, as the case may be, as determined in subsection (c)(1) above. If distribution has not yet begun, the Participant’s Account will be distributed to his Beneficiary, contingent Beneficiary, or estate, as the case may be, in accordance with Section 4.2(a).

(d) De Minimis Amounts. In accordance with Treasury Regulation Section 1.409A-3(j)(4)(v), the Committee may permit the acceleration of the time or schedule of any payment of an Account balance, provided that (i) the Account balance is not greater than the applicable dollar amount under Section 402(g)(1)(B) of the Code; and (ii) at the time the payment is made the amount constitutes the Participant’s entire interest under the Plan and all other plans that are aggregated with the Plan under Treasury Regulation Section 1.409A-1(c)(2). The Committee shall establish guidelines and procedures by which to review Account balances to determine if the payment of any Account balances may be accelerated and distributed in a single-lump sum payment.

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ARTICLE 5. ADMINISTRATION OF PLAN

5.1. Committee Action and Delegation.

(a) Committee Action. The action of the Committee will be determined by the vote or other affirmative expression of a majority of its members. Action may be taken by the Committee at a meeting or in writing without a meeting. The members of the Committee will elect one of their number as chairman and will select a secretary who may (but need not) be a member of the Committee. The secretary will keep a record of all meetings and acts of the Committee and will have custody of all records and documents pertaining to its operations. Any member or the secretary may execute any certificate or other written direction on behalf of the Committee.

(b) Delegation of Duties. The Committee may delegate all or any portion of its duties to a member of the Committee or another person selected to be Plan Administrator. The Committee may retain an independent record keeper for purposes of Plan administration and delegate to the record keeper the responsibility for maintaining Participants’ Accounts and distributions.

5.2. Effect of Committee’s Action.

(a) Interpretation of Plan. The Plan will be interpreted by the Committee in accordance with the terms of the Plan and their intended meanings. However, the Committee will have the authority to make any findings of fact needed in the administration of the Plan and will have the discretion to interpret or construe ambiguous, unclear, or implied (but omitted) terms in any fashion it deems to be appropriate in its sole and absolute discretion. The validity of any such finding of fact, interpretation, construction, or decision will not be given de novo review if challenged in court or in any other forum and will be upheld unless clearly arbitrary and capricious.

(b) Discretionary Authority. To the extent the Committee or any Committee delegate has been granted discretionary authority under the Plan, the prior exercise of such authority will not obligate it to exercise such authority in a like fashion thereafter.

(c) Corrective Amendments. If, due to errors in drafting, any Plan provision does not accurately reflect its intended meaning, as demonstrated by consistent interpretations or other evidence of intent, or as determined by the Committee in its sole and exclusive judgment, the provision will be considered ambiguous and will be interpreted by the Committee in a fashion consistent with its intent, as determined by the Committee. The Committee will amend the Plan retroactively to cure any such ambiguity, notwithstanding anything in the Plan to the contrary.

(d) Committee Actions Binding. This Section 5.2 may not be invoked by any person to require the Plan to be interpreted in a manner which is inconsistent with its interpretation by the Committee. All actions taken and all determinations made in good faith by the Committee will be final and binding upon all persons claiming any interest in or under the Plan.

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ARTICLE 6. CLAIMS PROCEDURE

6.1. Claims.

(a) Claims for Benefits. Any claim for benefits by a Participant or anyone claiming through a Participant under the Plan (the “Claimant”) shall be delivered in writing (or in such electronic form as designated by the Committee) by the Claimant to the Committee. The claim shall identify the benefits being requested and shall include a statement of the reasons why the benefits should be granted. The Committee shall grant or deny the claim. If the claim is denied in whole or in part, the Committee shall give written (or in such electronic form as designated by the Committee) notice to the Claimant setting forth: (a) the reasons for the denial, (b) specific reference to pertinent Plan provisions on which the denial is based, (c) a description of any additional material or information necessary to request a review of the claim and an explanation of why such material or information is necessary, (d) an explanation of the Plan’s claims review procedure, including the right to bring a civil action under Section 502(a) of ERISA following exhaustion of such claims review procedures, (e) a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, or other information relevant (as defined by Department of Labor Regulation Section 2560.503-1(m)) to the claim. The notice shall be furnished to the Claimant within a period of time not exceeding ninety (90) days (or forty-five (45) days in the event of a claim involving a Disability determination) after receipt of the claim, except that such period of time may be extended, if special circumstances should require, for an additional ninety (90) days (or thirty (30) days in the case of a Disability determination) commencing at the end of the initial ninety (90)-day (or, as applicable, forty-five (45)-day) period. In the case of a claim involving a Disability determination, the Committee may extend this period for an additional thirty (30) days if the Claimant is notified of the extension before the end of the initial thirty (30)-day extension. Written (or in such electronic form as designated by the Committee) notice of any such extension shall be given to the Claimant before the expiration of the initial period and shall indicate the special circumstances requiring the extension and the date by which the final decision is expected to be rendered.

(b) Appeals Procedure. A Claimant who has been denied a claim for benefits, in whole or in part, may, within a period of sixty (60) days (or one hundred and eighty (180) days in the case of a claim involving a Disability determination) following his receipt of the denial, request a review of such denial by filing a written (or in such electronic form as designated by the Committee) notice of appeal with the Committee. If the written request for review is not made within the specified sixty (60)-day (or, as applicable, one hundred and eighty (180)-day) period, the Claimant will waive the right to review by the Committee. In connection with an appeal, the Claimant (or his authorized representative) may review, free of charge, pertinent documents and may submit evidence and arguments in writing (or in such electronic form as designated by the Committee) to the Committee, regardless of whether or not such information was considered in connection with the initial benefits determination. The Committee may decide the questions presented by the appeal, either with or without holding a hearing, and shall issue to the Claimant a written (or in such electronic form as designated by the Committee) notice setting forth: (a) the specific reasons for the decision, (b) specific reference to the pertinent Plan provisions on which the decision is based, (c) a statement that, upon written request and free of charge, the claimant will be provided reasonable access to, and copies of, all documents, records, and other information relevant to his claim for benefits, and (d) a statement of the claimant’s right to bring a civil action under ERISA Section 502(a). The notice shall be issued within a period of time not exceeding sixty (60) days (or forty-five (45) days in the event of a claim involving a Disability determination) after receipt of the request for review; except that such period of time may be extended, if special circumstances (including, but not limited to, the need to hold a hearing) should require, for an additional sixty (60) days commencing at the end of the initial sixty (60)-day (or, as applicable, forty-five (45)-day) period. Written (or in such electronic form as designated by the Committee) notice of any such extension shall be provided to the Claimant prior to the expiration of the initial sixty (60)-day (or, as applicable, forty-five (45)-day) period. The decision of the Committee shall be final and conclusive.

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(c) Exhaustion of Remedies. The procedures under this Section 6.1 shall be the exclusive procedures for claiming benefits under the Plan. No legal or equitable action for benefits under the Plan shall be brought unless and until the Claimant (i) has submitted a written (or in such electronic form as designated by the Committee) application for benefits in accordance with Section 6.1(a), (ii) has been notified by the Committee that the application is denied, (iii) has filed a written request for a review of the application in accordance with Section 6.1(b), and (iv) has been notified in writing that the Committee has affirmed the denial of the application; provided, that legal action may be brought after the Committee has failed to take any action on the claim within the time periods prescribed in Section 6.1(b).

(d) Limitation on Commencing Actions. In no event may any legal or equitable action for benefits under the Plan be brought in a court of law or equity with respect to any claim for benefits more than one (1) year after the final denial (or deemed final denial) of the claim by the Committee.

ARTICLE 7. MISCELLANEOUS

7.1. Amendment or Termination of the Plan.

The Company reserves the right to amend or terminate this Plan at any time, provided that no amendment or termination will adversely affect the right of any Participant or Beneficiary to a payment under the Plan or reduce any Participant’s Account. Amendment or termination will be by written instrument executed by the Company. Notwithstanding the foregoing, upon any termination of this Plan, the Company may, in its sole and absolute discretion, accelerate the payment of amounts under all Accounts upon termination of this Plan to the extent permissible under Section 409A of the Code without the imposition of the additional tax set forth in Section 409A(a)(1)(B) of the Code.

7.2. No Contract for Employment.

Nothing in the Plan shall confer upon a Participant the right to continue in the employ of the Company or an Affiliated Entity or shall limit or restrict the right of the Company or any Affiliated Entity to terminate the employment of a Participant at any time with or without cause.

7.3. Payments to Persons under Legal Disability.

If any benefit payment hereunder becomes payable to a Participant determined by the Committee to be under any legal incapacity, payments under this Plan shall be made instead to the guardian or legal representative of such person and such payment shall constitute a full and complete discharge of all obligations under the Plan to the Participant.

7.4. Unclaimed Benefits.

Each Participant shall keep the Committee informed of his current address and the current address of his Beneficiary(ies). The Committee shall not be obligated to search for the whereabouts of any Participant or Beneficiary, and if such person cannot be located within three (3) years from the date any payment hereunder is first due to be made, then there shall be no further obligation to pay any benefits under this Plan to such Participant or Beneficiary, and such benefit shall be irrevocably forfeited.

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7.5. Multiple Claims for Benefits.

If multiple claims are received by the Committee with respect to any benefits payable under this Plan, payment by the Committee to such person or persons as the Committee determines to be entitled to receive such payment shall constitute a full and complete discharge of all obligations under this Plan with respect to such payment. Benefit payments under this Plan may be suspended by the Committee pending resolution of multiple claims to the satisfaction of the Committee.

7.6. Construction.

Unless the contrary is plainly required by the context, wherever any words are used herein in the masculine gender, they shall be construed as though they were also used in the female gender, and vice versa, and wherever any words are used herein in the singular form, they shall be construed as though they were also used in the plural form, and vice versa. The section and other headings contained in this Plan are for reference purposes only and will not control or affect the construction of this Plan or its interpretation in any respect. Section and subsection references are to this Plan unless otherwise specified.

7.7. Funding.

(a) This Plan is an unfunded plan of deferred compensation which is not intended to meet the qualification requirements of Section 401 of the Code. Each Participant’s Account represents the unsecured contractual obligation of the Company.

(b) Although not obligated to do so, the Company may choose to set aside funds or other assets to assist in funding its obligations under this Plan. Such funds or assets may be placed in trust with a trustee selected by the Investment Committee subject to such agreement as the Investment Committee may approve. The Investment Committee will direct the investment of any such funds in a manner designed to assist the Company in meeting its obligations. The principal and any earnings on funds set aside in trust will be used exclusively to assist the Company in meeting its obligations under this Plan, but Participants and any Beneficiaries will have no preferred claim on, or any beneficial ownership in, any assets of the trust prior to the time any such assets are paid to the Participants or Beneficiaries as benefits. All assets in the trust will be subject to the claims of the Company’s general creditors under state and federal law in the event of insolvency or bankruptcy of the Company.

(c) No Participant will have any right, title, or interest in or to any investments which the Company may make to aid in meeting its obligations under this Plan. Nothing contained in this document and no action taken pursuant to its provisions will create, or be construed to create, a trust of any kind or a fiduciary relationship between the Company or the Committee and a Participant or any other person. To the extent that any person acquires a right to receive payments from the Company pursuant to this Plan, such rights will be no greater than the right of an unsecured creditor of the Company.

7.8. Participant’s Interest.

Except in accordance with a Beneficiary designation made by a Participant in accordance with the terms and conditions of this Plan, no right or benefit of a Participant under this Plan will be subject to transfer, anticipation, alienation, sale, assignment, pledge, encumbrance or charge, and any attempt to transfer, anticipate, alienate, sell, assign, pledge, encumber or charge such right or benefit will be void. Further, no such right or benefit under this Plan will in any manner be liable for or subject to the debts, liabilities, or torts of a Participant. By way of illustration, and without limiting the foregoing, a Participant’s benefits under this Plan shall not be transferable by domestic relations order.

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7.9. Withholding.

The Company or any Affiliated Entity may withhold or cause to be withheld from any amounts payable under the Plan, or to the extent permitted pursuant to Section 409A of the Code, from any amounts otherwise to be credited to the Participant’s Account under the Plan, all federal, state, local and other taxes as shall be legally required to be withheld. Further, the Company and any applicable Affiliated Entity shall have the right to (a) require a Participant to pay or provide for payment of the amount of any taxes that may be required to be withheld with respect to amounts payable under the Plan or credited to a Participant’s Account under the Plan, or (b) deduct from any other amount of then payable in cash to the Participant the amount of any taxes that the Company or any Affiliated Entity may be required to withhold with respect to amounts payable under the Plan or credited to a Participant’s Account under the Plan.

7.10. Severability.

If any provision in the Plan is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force and effect without being impaired or invalidated in any way.

7.11. Governing Law.

This Plan and all rights thereunder, and any controversies or disputes arising with respect thereto, shall be governed by and construed and interpreted in accordance with the laws of the State of New York, applicable to agreements made and to be performed entirely within such State, without regard to conflict of laws provisions thereof that would apply the law of any other jurisdiction.

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EX-10.2

Exhibit 10.2

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”), dated as of May 9, 2019 (the “Effective Date”), between News Corporation, a Delaware corporation (the “Company”), located at 1211 Avenue of the Americas, New York, NY 10036, and Mr. Robert Thomson, residing at the address that is on file with the Company (the “Executive”).

W I T N E S S E T H:

WHEREAS, the Executive is currently employed as the Chief Executive Officer of the Company pursuant to an amended and restated employment agreement among the Company, NC Transaction, Inc., a Delaware corporation and wholly owned subsidiary of the Company, and the Executive dated as of March 9, 2016 (the “Prior Agreement”); and

WHEREAS, the Company and the Executive desire to amend and restate the Prior Agreement.

NOW, THEREFORE, in consideration of the premises and mutual agreements hereinafter contained, the parties hereto agree as follows:

1. Duties.

(a) The Company agrees to continue to employ the Executive and the Executive agrees to continue to be employed by the Company for the Term of Employment (hereinafter defined). During the Term of Employment, the Executive shall (i) have the title and the duties of Chief Executive Officer of the Company; and (ii) report directly to the Board of Directors of the Company.

(b) If the Executive is elected or appointed as a member of any office or board of the Company or any of its subsidiaries or affiliates, the Executive agrees to serve in such a capacity or capacities without any additional compensation. During the Term of Employment the Executive shall devote substantially all of his business time and attention and give his best efforts and skill to furthering the business and interests of the Company and to the performance of his duties as the Chief Executive Officer of the Company.

2. Term. “Term of Employment” as used herein shall mean the period from the Effective Date through June 30, 2023 (the “Term End Date”); provided, however, if the Term of Employment is terminated earlier, as hereinafter set forth, the Term of Employment shall mean the period from the Effective Date through the effective date of such earlier termination. The Term of Employment shall be terminated earlier only in accordance with Sections 8 and 9 hereof.

3. Location. The Executive shall be based and essentially render services in the New York City metropolitan area at the principal office maintained by the Company in such area. The Executive will travel as reasonably required to perform his functions hereunder.

4. Compensation.

(a) Base Salary. As compensation for his services, the Executive shall receive a base salary at an annual rate of $3,000,000 (the “Base Salary”) to be paid in the same manner as other senior executives of the Company are paid.

(b) Annual Bonus. In addition, the Executive will be eligible to receive an annual bonus (the “Annual Bonus”) with a target of $5,000,000 (the “Annual Bonus Target”) based on the achievement of performance metrics and targets established and approved by the Compensation Committee of the Board of Directors. Any Annual Bonus granted shall be paid in cash at the same time as other senior executives of the Company are paid, and in all events no later than March 15 of the calendar year following the calendar year in which the applicable fiscal year ends. For the avoidance of doubt, any bonus payments received by the Executive shall be subject to the Company’s claw-back policies.

(c) Long-Term Incentive. The Executive shall also be eligible to receive an annual award under the Company’s 2013 Long-Term Incentive Plan, as amended and restated, or any other Company performance-based long-term equity-based incentive program (the “Plan”), in accordance with the terms and conditions of the Plan, that has a target of $7,000,000 (the “Equity Bonus”); provided that at least $1,000,000 of the Equity Bonus target shall be solely based on the achievement of relative total stockholder return. The Equity Bonus shall be in a form and subject to such other terms and conditions, including claw-back provisions, as determined by the Company and consistent with those of equity awards to the most senior executives of the Company. If the Term of Employment expires on the Term End Date and the Executive is not offered an extension or renewal on similar or better terms, the Executive shall be eligible to continue to vest in any Equity Bonus awarded during the Term of Employment.

5. Other Benefits. The Executive shall be entitled to the following benefits (collectively, the “Benefits”):

(a) The Executive shall be eligible to participate in all of the incentive or benefit plans or arrangements presently in effect or hereafter adopted by the Company or its applicable affiliates and to such other perquisites as are applicable to other senior executives of the Company of equal rank including, but not limited to, any profit-sharing, pension, group medical, dental, disability and life insurance or other similar benefit plans.

(b) The Executive shall be entitled to paid vacation annually, in such amount as provided to other senior executives of the Company.

6. Business Expenses. During the Term of Employment, the Company shall pay, or reimburse the Executive for, all expenses reasonably and necessarily incurred by him in connection with his performance of his duties hereunder, including, without limitation, up to $15,000 of reimbursable expenses for legal fees incurred during the negotiation of his Employment Agreement. Such business expenses shall be reimbursed as provided in Section 23(f).

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7. Confidentiality; Restriction on Competition.

(a) The Executive shall hold all of the Company’s Confidential Information (as hereinafter defined) in strictest confidence, and will not, directly or indirectly, take, publish, use or disclose any of the Company’s Confidential Information at any time after the termination of the Executive’s employment, for any reason, except as may be required by law, provided that upon learning of any such legal requirement, the Executive shall promptly provide the Company with written notice to the Company of any such legal requirement in enough time for it to try to obtain an appropriate protective order or other remedy. For purposes of this Agreement, the phrase “Confidential Information” means personal information regarding past and present executives of the Company and its affiliates, including their family members, all trade secrets and information on costs, pricing, and materials, supplier information, customer lists and customer information, vendor lists and vendor information, employee lists and employee information, market share reports, customer contract terms and rates, account management, financial information, audit information, research, development, marketing plans, promotion plans and/or compilations of information that was disclosed to or acquired by the Executive during or in the course of the Executive’s employment that relates to the business of the Company and is not generally available to the public or generally known in the Company’s industry.

(b) Confidential Information does not include that information which the Executive can affirmatively prove by clear and convincing evidence: (i) is, at the time of disclosure, in the public domain other than as a result of disclosure (whether by act or omission) by the Executive or by other persons to whom the Executive has disclosed such information; (ii) was available to the Executive without an obligation of confidentiality prior to the Executive’s employment with the Company; (iii) is independently developed by the Executive having had no access to any Confidential Information and without the use of any such information; or (iv) becomes available to the Executive without an obligation of confidentiality from a source, other than the Company, having the legal right to disclose such information.

(c) All papers, books, records, files, proposals or other documents, and all computer software, software applications, files, databases and the like relating to the business and affairs of the Company or which contain Confidential Information, whether prepared by the Executive or otherwise coming into the Executive’s possession, shall remain the exclusive property of the Company and shall not be removed from its premises except as necessary for the performance of the Executive’s responsibilities and in furtherance of the interests of the Company. Upon the termination of the Executive’s employment for any reason, the Executive will immediately surrender and turn over to the Company any property of the Company which the Executive may have in the Executive’s possession, custody or control, no matter where located, and whether in electronic, paper or other format, including, but not limited to, records, files, drawings, documents, models, disks, computers and other equipment, and the Executive shall not keep any copies or portions thereof, including any material contained on the Executive’s personal computer which is currently located at the Executive’s residence, if any, including any files the Executive may have saved or downloaded from the Company’s computer system.

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(d) While the Executive is employed by the Company and after the Executive’s employment terminates for whatever reason, the Executive agrees not to publicly criticize the Company, its corporate affiliates, or subsidiaries, and their respective officers, directors, stockholders or employees and agrees further not to cause harm to the Company by speaking of the Company, its affiliates, officers, stockholders or employees in an unflattering way. This requirement will not prohibit the Executive from providing truthful testimony if required by law, and subject to the Executive’s obligation to provide the Company prior notice of such legal requirement pursuant to Section 7(a). In addition, nothing in this Agreement or in any other agreement between the Executive and the Company will prohibit the Executive from reporting to any governmental agency or governmental entity information concerning possible violations of law or regulation.

(e) In order to protect the Company’s goodwill with its clients, vendors and employees, during the Term of Employment and for one (1) year following termination of the Executive’s employment for any reason, the Executive shall not, directly or indirectly, either personally or on behalf of any other entity (whether as a director, stockholder, owner, partner, consultant, principal, employee, agent or otherwise), engage in any of the following conduct: (a) canvass, solicit or accept any business on behalf of any of the Company’s competitors from any business or organization that had interacted with the Company during the last three (3) years of the Executive’s employment; (b) solicit or recruit for employment, hire, employ, attempt to employ, or engage or attempt to engage as a contractor or consultant any individual employed by the Company or its affiliates, or entice or suggest to such individual to terminate his or her employment with the Company; or (c) take any action which is intended, or would reasonably be expected to, adversely affect the Company, its subsidiaries, or their respective businesses, reputation, or relationship with their clients, business partners or vendors.

(f) During the Term of Employment, the Executive shall not engage, and shall not solicit any employees of the Company or its affiliates to engage, in any other commercial activities that may in any way interfere with the performance of the Executive’s duties or responsibilities to the Company. During the Term of Employment, without the prior written consent of the Company, the Executive shall have no interest, directly or indirectly, in any business or prospective business (whether conducted by a natural person, partnership, corporation or other entity) whose products, services or activities materially compete or seek to compete, in whole or in part, with business conducted by the Company and the Executive shall perform no services, directly or indirectly, for any person, partnership, corporation or other entity engaged in any such business.

(g) The Executive shall at all times be subject to, comply with and carry out such rules, regulations, policies, directions and restrictions applicable to employees of the Company generally, as the Company may from time to time implement or establish, including, without limitation, the Company’s Standards of Business Conduct and claw-back policies, as well as those imposed by law. The Executive acknowledges that he has received copies of such policies, has reviewed them and understands them.

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(h) The Executive acknowledges that the relationship between the Executive and the Company is exclusively that of employer and employee and that the Company’s obligations to the Executive are exclusively contractual in nature. The Company shall be the sole owner of all the fruits and proceeds of the Executive’s services hereunder, including, but not limited to, all ideas, concepts, formats, suggestions, developments, arrangements, designs, packages, programs, promotions and other intellectual properties which the Executive may create in connection with and during the Term of Employment, free and clear of any claims by the Executive (or anyone claiming under the Executive) of any kind or character whatsoever (other than the Executive’s right to compensation hereunder). The Executive shall, at the request of the Company, execute such assignments, certificates or other instruments as the Company may from time to time deem necessary or desirable to evidence, establish, maintain, perfect, protect, enforce or defend its right, title and interest in or to any such properties.

(i) The Company shall have the right to use the Executive’s name, biography and likeness in connection with its business, including in advertising its products and services, and may grant this right to others, but not for use as a direct endorsement.

8. Termination by the Company. The Executive’s employment hereunder may be terminated by the Company without any breach of this Agreement only under the following circumstances:

(a) The Executive’s employment hereunder shall terminate upon his death.

(b) If, as a result of the Executive’s incapacity and disability due to physical or mental illness, the Executive fails to perform his duties hereunder for a period of 365 consecutive days during the Term of Employment, the Company may terminate the Executive’s employment hereunder.

(c) The Company may terminate the Executive’s employment hereunder for “cause” as defined herein. For purposes of this Agreement, “cause” shall mean: (i) the Executive is convicted of, or pleads guilty or nolo contendere to, a felony or crime involving moral turpitude; (ii) the Executive engages in conduct that constitutes willful neglect or willful misconduct in carrying out the Executive’s duties under this Agreement, and such breach remains uncured following fifteen (15) days prior written notice given by the Company to the Executive specifying such breach, provided such breach is capable of being cured; (iii) the Executive has breached any material representation, warranty, covenant or term of this Agreement, including among other things, a breach of written Company policy, and such breach remains uncured following twenty-one (21) days prior written notice specifying such breach given by the Company to the Executive, provided such breach is capable of being cured; (iv) the Executive’s act of fraud or dishonesty in the performance of the Executive’s job duties; (v) the Executive intentionally engages in conduct which impacts negatively and materially on the reputation or image of the Company, its affiliates, or any of their respective products; and/or (vi) the Executive’s use of or addiction to illegal drugs.

(d) The Company may terminate the Executive’s employment other than for cause, death or disability, subject to Section 10(d) hereof.

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(e) Any termination of the Executive’s employment by the Company (other than termination pursuant to Section 8 (a)) shall be communicated by a written Notice of Termination to the Executive. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in full detail the facts and circumstances claimed to provide the basis for termination of the Executive’s employment under the provision so indicated.

(f) “Date of Termination” shall mean (i) if the Executive’s employment is terminated by his death, the date of this death; (ii) if the Executive’s employment is terminated by the Company pursuant to Sections 8(b), (c) or (d) or by the Executive pursuant to Section 9, the date specified in the Notice of Termination.

9. Termination by the Executive.

(a) At his option, and provided the following occurrences satisfy the “Good Reason” safe harbor within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and Section 1.409A-1(n)(2)(ii) of the Treasury Regulations promulgated thereunder, the Executive may terminate his employment without any breach of this Agreement only under the following circumstances:

(i) In the event of a material breach of the Agreement by the Company, which breach, if curable, is not cured within thirty (30) days after the Company’s Chief Human Resources Officer and General Counsel each receive written notice specifying such breach;

(ii) If the Executive is required to be based and essentially render services in other than the New York City metropolitan area at the principal office of the Company in such area; or

(iii) A material diminution in the Executive’s job description, title, authority, duties or responsibility (other than during a period of Executive’s mental or physical incapacity).

(b) Any Good Reason termination of his employment by the Executive shall be communicated by a written Notice of Termination to the Company within ninety (90) days of the condition giving rise to such Good Reason first occurring, and the Company shall have thirty (30) days from such notice to cure the condition giving rise to such Good Reason, as set forth in Section 1.409A-1(n)(2)(C) of the Treasury Regulations.

(c) In addition, the Executive may voluntarily terminate his employment other than for Good Reason by a Notice of Termination specifying the Date of Termination at least sixty (60) days in advance.

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10. Compensation Upon Termination.

(a) If the employment of the Executive is terminated pursuant to Section 8(a) hereof, by reason of his death, the Company agrees to pay directly to his surviving spouse (or to another recipient designated in writing by the Executive from time to time), or if his spouse shall not survive him, then to the legal representative of his estate, (i) for a period of twelve (12) months (commencing with the Date of Termination) an amount equal to and payable at the same rate as his then current Base Salary; (ii) any Annual Bonus payable but not yet paid with respect to any fiscal year ended prior to the Date of Termination, payable no later than the time specified in Section 4(b) (the “Unpaid Prior Year Bonus”), (iii) a pro rata portion of the Annual Bonus Executive would have earned for the fiscal year of termination had no termination occurred (calculated based on the Annual Bonus Target and the number of days the Executive was employed by the Company in the fiscal year during which the Date of Termination occurs compared to the total number of days in such fiscal year), payable no later than the time specified in Section 4(b) (the “Pro-rated Current Year Bonus”); and (iv) with respect to Equity Bonus awards or awards under the Plan, vesting, payment and other terms as provided for under the terms of the applicable Plan documents. The foregoing payments shall be in addition to what the Executive’s spouse, beneficiaries or estate may be entitled to receive pursuant to any employee benefit plan or life insurance policy then provided to the Executive or maintained by the Company. The payments provided for in this Section 10(a) shall fully discharge the obligations of the Company and its affiliates hereunder and the Company and its affiliates shall be under no obligation to provide any further compensation to the Executive, his surviving spouse or the legal representative of his estate, except as otherwise required in this Agreement.

(b) During any period that the Executive fails to perform his duties hereunder as a result of incapacity and disability due to physical or mental illness, the Company shall continue to pay to the Executive his full Base Salary and the Benefits until the Executive returns to his duties or until twelve (12) months after the Executive’s employment is terminated pursuant to Section 8(b) hereof. In addition, if the Executive’s employment is terminated pursuant to Section 8(b), the Executive shall receive: (A) any Unpaid Prior Year Bonus; (B) the Pro-rated Current Year Bonus; and (C) with respect to Equity Bonus awards or awards under the Plan, vesting, payment and other terms as provided for under the terms of the applicable Plan documents. The foregoing payments shall be in addition to what the Executive may be entitled to receive pursuant to any disability benefit plan then provided to the Executive or maintained by the Company. The payments provided for in this Section 10(b) shall fully discharge the obligations of the Company and its affiliates hereunder and the Company and its affiliates shall be under no obligation to provide any further compensation to the Executive.

(c) If the Executive’s employment shall be terminated for cause pursuant to Section 8(c) or if the Executive shall resign other than for Good Reason pursuant to Section 9(c), the Company shall pay the Executive his full Base Salary through the Date of Termination and the Unpaid Prior Year Bonus, if any. The payments provided for in this Section 10(c) shall fully discharge the obligations of the Company and its affiliates hereunder and the Company and its affiliates shall be under no obligation to provide any further compensation to the Executive.

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(d) If the Company shall terminate the Executive’s employment pursuant to Section 8(d) hereof, or if the Executive shall terminate his employment hereunder for Good Reason pursuant to Sections 9(a)-(b) hereof, the Executive shall receive: (i) each of his Base Salary and Annual Bonus paid in the same manner as though the Executive continued to be employed hereunder for two (2) years following the Date of Termination, with each Annual Bonus payment based on the then current Annual Bonus Target; (ii) any Unpaid Prior Year Bonus; (iii) the Pro-rated Current Year Bonus; and (iv) continued vesting of any Equity Bonus awards or awards under the Plan that were granted prior to the Date of Termination in the same manner as though the Executive continued to be employed hereunder for two (2) years following the Date of Termination, with payments made at the same times they would have been made had the Executive continued to be employed through such date (and, for the avoidance of doubt, any Equity Bonus awards that would not have been payable but for continued employment through a date after such date shall be forfeited). The payments provided for in this Section 10(d) shall fully discharge the obligations of the Company and its affiliates hereunder and the Company and its affiliates shall be under no obligation to provide any further compensation to the Executive.

(e) A precondition to the Company’s obligation to pay compensation and provide benefits to the Executive (or the Executive’s surviving spouse or the legal representative of the Executive’s estate) pursuant to this Section 10 (other than accrued but unpaid base salary) shall be the execution and non-revocation by the Executive, or as the case may be, the Executive’s surviving spouse or the legal representative of the Executive’s estate, of the Company’s then-standard separation agreement and general release and the continued compliance with the terms, conditions and covenants set forth therein.

(f) For the avoidance of doubt, any post-employment bonus payments or equity grants that vest or remain eligible for vesting will remain subject to the Company’s claw-back policies and terms and conditions of the applicable Plan documents.

(g) Without duplicating any benefits set forth in this Section 10, upon any termination of employment, the Executive (or his spouse, beneficiaries or estate) will be entitled to any unreimbursed business expenses approved in accordance with the Company’s policy and due the Executive through termination and to receive any benefits vested, and to make all elections and receive all payments and rights under all employee benefit, pension, insurance and other plans in which the Executive participated in accordance with the terms and conditions of the plan concerned. Such business expenses shall be reimbursed as provided in Section 23(f).

(h) The Executive shall have no duty to mitigate his damages hereunder and any income earned by the Executive following his termination without cause (as defined in Section 8(c) hereof) or his resignation for Good Reason pursuant to Sections 9(a)-(b) hereof shall not reduce the compensation payable to the Executive hereunder.

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11. Survival of Agreement. This Agreement shall inure to the benefit of the Company and any other successors and general assigns of the Company or any other corporation or entity which is a parent, subsidiary or affiliate of the Company to which this Agreement is assigned, and any other corporation or entity into which the Company may be merged or with which it may be consolidated. For purposes of clarity, the Company may assign this Agreement in the event of an asset or stock sale of all or a majority of the Company to the controlling corporation or entity surviving or resulting from such asset or stock sale. The terms, conditions, promises and covenants set forth in Sections 7 through 23 shall survive the termination of this Agreement and the Executive’s employment (in accordance with their respective terms) for any reason.

12. Indemnity; Cooperation.

(a) The Company will indemnify and defend the Executive in accordance with the formation documents, charters, bylaws or applicable insurance policies of the Company, and in accordance with any other law or statute affording the Executive a right of indemnification and defense, including but not limited to Section 145 of Title 8 of the Delaware Chancery Code, for any acts or omissions made by the Executive in good faith in the course of the Executive’s employment with the Company.

(b) During the Term of Employment and for a period of three (3) years after the termination of the Executive’s employment, and during all reasonable times thereafter, the Executive will (i) fully cooperate with the Company in providing truthful testimony as a witness or a declarant in connection with any present or future litigation, administrative or arbitral proceeding involving the Company or any of its affiliates with respect to which the Executive may have relevant information and (ii) assist the Company during the investigatory and discovery phases (or prior thereto) of any judicial, administrative, internal, arbitral or grievance proceeding involving the Company or any of its affiliates and with respect to which the Executive may have relevant information. The Company will, within thirty (30) days of the Executive producing receipts satisfactory to the Company, reimburse the Executive for any reasonable and necessary expenses incurred by the Executive in connection with such cooperation.

(c) Without limiting any other provision of this Agreement, this Section 12 shall survive the termination or expiration of this Agreement for any reason whatsoever.

13. Notices. All notices, requests, demands or other communications provided for hereby shall be in writing and shall be deemed to have been duly given (a) when delivered personally, (b) one day after having been sent by telegram, telecopy or similar electronic means, or by overnight courier service against receipt, or (c) four days after having been sent within the continental United States by first-class certified mail, return receipt requested, postage prepaid, to the other party. Any notices to the Company shall be sent to the principal executive offices of the Company. Any notices to the Executive shall be sent to the last known address of the Executive on record with the Company.

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14. Governing Law. This Agreement shall be enforced, governed by and construed in accordance with the laws of the State of New York. Each party hereby submits to the exclusive jurisdiction of the Supreme Court of the State of New York, and the United States District Court for the Southern District of New York, for the purpose of enforcement of this Agreement and waives, and agrees not to assert, as a defense in any such action or proceeding, that such party was not subject to the personal jurisdiction of any such court or that venue is improper for lack of residence, inconvenient forum or otherwise. The parties also agree that service of process (the method by which a party may be served with any such court papers) may be made by overnight mail at the applicable address set forth in Section 13. The Company may also have other rights and remedies it may have at any time against the Executive, whether by law or under this Agreement.

15. Construction. Each party acknowledges that such party has participated with, at its option, the advice of counsel, in the preparation of this Agreement. The language of all provisions of this Agreement shall in all cases be construed as a whole, extending to it its fair meaning, and not strictly for or against either of the parties. The parties agree that they have jointly prepared and approved the language of the provisions of this Agreement and that should any dispute arise concerning the interpretation of any provision hereof, neither party shall be deemed the drafter nor shall any such language be presumptively construed in favor of or against either party.

16. Severability. The conditions and provisions herein set forth shall be severable, and if any condition or provision or portion thereof shall be held invalid or unenforceable, then said condition or provision shall not in any manner affect any other condition or provision and the remainder of this Agreement and every section thereof construed without regard to said invalid condition or provision, shall continue in full force and effect.

17. Assignment. Neither party shall have the right, subject to Section 11 hereof, to assign the Executive’s rights and obligations with respect to his actual employment duties without the prior consent of the other party.

18. Entire Agreement. This Agreement constitutes the entire understanding between the parties hereto with respect to the subject matter hereof, and this Agreement supersedes and renders null and void any and all prior oral or written agreements, understandings or commitments pertaining to the subject matter hereof, including, without limitation, the Prior Agreement. No waiver or modification of the terms or provisions hereof shall be valid unless in writing signed by the party so to be charged thereby and then only to the extent therein set forth.

19. Withholding and Payroll Practices. All salary, severance payments, bonuses or benefits provided by the Company under this Agreement shall be net of any tax or other amounts required to be withheld by the Company under applicable law and shall be paid in the ordinary course pursuant to the Company’s then existing payroll practices or as otherwise specified in this Agreement.

20. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.

21. Headings. Headings in this Agreement are for reference only and shall not be deemed to have any substantive effect.

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22. Section 280G.

(a) Notwithstanding any other provisions of this Agreement to the contrary, in the event that it shall be determined that any payment or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (the “Payments”), would constitute an “excess parachute payment” within the meaning of Section 280G of the Code, the Company shall reduce (but not below zero) the aggregate present value of the Payments under the Agreement to the Reduced Amount (as hereinafter defined), if reducing the Payments under this Agreement will provide the Executive with a greater net after-tax amount than would be the case if no such reduction was made. The Payments shall be reduced as described in the preceding sentence only if (1) the net amount of the Payments, as so reduced (and after subtracting the net amount of federal, state and local income and payroll taxes on the reduced Payments), is greater than or equal to (2) the net amount of the Payments without such reduction (but after subtracting the net amount of federal, state and local income and payroll taxes on the Payments and the amount of Excise Tax (as hereinafter defined) to which the Executive would be subject with respect to the unreduced Payments). Any reduction shall be made in accordance with Section 409A of the Code.

(b) The “Reduced Amount” shall be an amount expressed in present value that maximizes the aggregate present value of Payments without causing any Payment under this Agreement to be subject to the Excise Tax, determined in accordance with Section 280G(d)(4) of the Code. The term “Excise Tax” means the excise tax imposed under Section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax.

(c) All determinations to be made under this Section 22 shall be made by an independent registered public accounting firm or consulting firm selected by the Company immediately prior to a change in control, which shall provide its determinations and any supporting calculations both to the Company and the Executive within ten (10) days of the change in control. Any such determination by such firm shall be binding upon the Company and the Executive. All fees and expenses of the accounting or consulting firm in performing the determinations referred to in this Section 22 shall be borne solely by the Company.

23. Section 409A.

(a) This Agreement is intended to comply with Section 409A of the Code, and will be interpreted accordingly. References under this Agreement to the Executive’s termination of employment shall be deemed to refer to the date upon which the Executive has experienced a “separation from service” within the meaning of Section 409A of the Code.

(b) Notwithstanding anything herein to the contrary, (i) if at the time of the Executive’s separation from service with the Company, the Executive is a “specified employee” as defined in Section 409A of the Code (and any related regulations or other pronouncements thereunder) and the deferral of the commencement of any payments or benefits otherwise payable hereunder or payable under any other compensatory arrangement between the Executive and the Company, or any of its affiliates as a result of such separation from service is necessary in order to prevent any accelerated or additional tax under Section 409A of the Code, then the Company

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will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to the Executive) until the date that is six months following the Executive’s separation from service (or the earliest date as is permitted under Section 409A of the Code), at which point all payments deferred pursuant to this Section shall be paid to the Executive in a lump sum and (ii) if any other payments of money or other benefits due to the Executive hereunder could cause the application of an accelerated or additional tax under Section 409A of the Code, such payments or other benefits shall be deferred if deferral will make such payment or other benefits compliant under Section 409A of the Code, or otherwise such payment or other benefits shall be restructured, to the extent possible, in a manner that does not cause such an accelerated or additional tax. Any payments deferred pursuant to the preceding sentence shall be paid together with interest thereon at a rate equal to the applicable Federal rate for short-term instruments.

(c) To the extent any reimbursements or in-kind benefits due to the Executive under this Agreement constitute “deferred compensation” under Section 409A of the Code, any such reimbursements or in-kind benefits shall be paid to the Executive in a manner consistent with Treas. Reg. Section 1.409A-3(i)(1)(iv). Additionally, to the extent that the Executive’s receipt of any in-kind benefits from the Company or its affiliates must be delayed pursuant to this Section due to his status as a “specified employee”, the Executive may elect to instead purchase and receive such benefits during the period in which the provision of benefits would otherwise be delayed by paying the Company (or its affiliates) for the fair market value of such benefits (as determined by the Company in good faith) during such period. Any amounts paid by the Executive pursuant to the preceding sentence shall be reimbursed to the Executive (with interest thereon) as described above on the date that is six months following his separation from service.

(d) Each payment made under this Agreement shall be designated as a “separate payment” within the meaning of Section 409A of the Code.

(e) The Company shall consult with the Executive in good faith regarding the implementation of the provisions of this Section. Without limiting the generality of the foregoing, the Executive shall notify the Company if he believes that any provision of this Agreement (or of any award of compensation, including equity compensation, or benefits) would cause the Executive to incur any additional tax under Code Section 409A and, if the Company concurs with such belief after good faith review or the Company independently makes such determination, then the Company shall, after consulting with the Executive, use reasonable best efforts to reform such provision to comply with Code Section 409A through good faith modifications to the minimum extent reasonably appropriate to conform with Code Section 409A.

(f) Any amount that the Executive is entitled to be reimbursed for any business-related expenses borne by the Executive under this Agreement will be reimbursed to the Executive as promptly as practicable and in any event not later than the last day of the calendar year after the calendar year in which the expenses are incurred, and the amount of expenses eligible for reimbursement during any calendar year will not affect the amount of expenses eligible for reimbursement in any other calendar year.

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(g) Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made within thirty (30) days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company.

(h) Unless this Agreement provides a specified and objectively determinable payment schedule to the contrary, to the extent that any payment of base salary or other compensation is to be paid for a specified continuing period of time beyond the Executive’s termination of employment in accordance with the Company’s payroll practices (or other similar term), the payments of such base salary or other compensation shall be made on a monthly basis.

(i) To the extent that severance payments or benefits pursuant to this Agreement are conditioned upon the execution and delivery by the Executive of a separation agreement and general release (and the expiration of any revocation rights provided therein) which could become effective in one of two (2) taxable years of the Executive depending on when the Executive executes and delivers such separation agreement and general release, any deferred compensation payment (which is subject to Code Section 409A) that is conditioned on execution of the separation agreement and general release shall be made within ten (10) days after the separation agreement and general release becomes effective and such revocation rights have lapsed, but not earlier than the first business day of the later of such taxable years.

24. Representations. The Company represents that the Company’s execution and delivery of this Agreement and the performance of its obligations hereunder: (a) has been authorized by all required corporate action on the part of the Company; and (b) will not conflict with, result in any breach of, or constitute a default under, any contract, agreement or arrangement to which the Company is a party. The Executive represents that the Executive’s execution and delivery of this Agreement and the performance of the Executive’s obligations hereunder will not conflict with, result in any breach of, or constitute a default under, any contract, agreement or arrangement to which the Executive is a party.

[Signature page follows]

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IN WITNESS WHEREOF, the parties hereto have affixed their signatures as of the day and year first above written.

NEWS CORPORATION		ROBERT THOMSON
By:	/s/ Dana Ritzcovan	/s/ Robert Thomson
Name: Dana Ritzcovan
Title: Chief Human Resources Officer

EX-31.1

Exhibit 31.1

Chief Executive Officer Certification

Required by Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as amended

I, Robert J. Thomson, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of News Corporation;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

May 10, 2019

By:	/s/ Robert J. Thomson
	Robert J. Thomson
	Chief Executive Officer and Director

EX-31.2

Exhibit 31.2

Chief Financial Officer Certification

Required by Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as amended

I, Susan Panuccio, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of News Corporation;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

May 10, 2019

By:	/s/ Susan Panuccio
	Susan Panuccio
	Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of News Corporation on Form 10-Q for the fiscal quarter ended March 31, 2019, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), we, the undersigned officers of News Corporation, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that, to the best of our knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of News Corporation.

May 10, 2019

By:	/s/ Robert J. Thomson
	Robert J. Thomson
	Chief Executive Officer and Director
By:	/s/ Susan Panuccio
	Susan Panuccio
	Chief Financial Officer

XML

Document And Entity Information - shares	9 Months Ended
	Mar. 31, 2019	May 03, 2019
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Registrant Name	NEWS CORP
Entity Central Index Key	0001564708
Current Fiscal Year End Date	--06-30
Entity Filer Category	Large Accelerated Filer
Trading Symbol	NWS
Entity Emerging Growth Company	false
Entity Small Business	false
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		385,531,724
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		199,630,240

XML

Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Revenues:
Total Revenues	$ 2,457	$ 2,093	$ 7,608	$ 6,331
Operating expenses	(1,400)	(1,151)	(4,224)	(3,439)
Selling, general and administrative	(810)	(761)	(2,409)	(2,135)
Depreciation and amortization	(168)	(100)	(494)	(297)
Impairment and restructuring charges	(34)	(246)	(71)	(273)
Equity losses of affiliates	(4)	(974)	(13)	(1,002)
Interest (expense) income, net	(14)	2	(45)	9
Other, net	3	30	30	9
Income (loss) before income tax expense	30	(1,107)	382	(797)
Income tax expense	(7)	(3)	(112)	(292)
Net income (loss)	23	(1,110)	270	(1,089)
Less: Net income attributable to noncontrolling interests	(13)	(18)	(64)	(54)
Net income (loss) attributable to News Corporation stockholders	$ 10	$ (1,128)	$ 206	$ (1,143)
Basic and diluted earnings (loss) per share:
Net income (loss) available to News Corporation stockholders per share	$ 0.02	$ (1.94)	$ 0.35	$ (1.96)
Circulation and Subscription [Member]
Revenues:
Total Revenues	$ 1,025	$ 659	$ 3,088	$ 1,947
Advertising [Member]
Revenues:
Total Revenues	670	702	2,052	2,101
Consumer [Member]
Revenues:
Total Revenues	403	381	1,281	1,220
Real Estate [Member]
Revenues:
Total Revenues	218	208	693	633
Other [Member]
Revenues:
Total Revenues	$ 141	$ 143	$ 494	$ 430

XML

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income (loss)		$ 23	$ (1,110)	$ 270	$ (1,089)
Other comprehensive income (loss):
Foreign currency translation adjustments		75	10	(182)	144
Net change in the fair value of cash flow hedges	[1]	(5)	0	2	0
Unrealized holding gains on securities, net	[2]	0	0	0	5
Benefit plan adjustments, net	[3]	(3)	(9)	10	(14)
Share of other comprehensive income from equity affiliates, net	[4]	0	0	0	1
Other comprehensive income (loss)		67	1	(170)	136
Comprehensive income (loss)		90	(1,109)	100	(953)
Less: Net income attributable to noncontrolling interests		(13)	(18)	(64)	(54)
Less: Other comprehensive (income) loss attributable to noncontrolling interests		(10)	2	46	(1)
Comprehensive income (loss) attributable to News Corporation stockholders		$ 67	$ (1,125)	$ 82	$ (1,008)

[1] Net of income tax expense of nil and $1 million for the three and nine months ended March 31, 2019, respectively.

[2] Net of income tax expense of $1 million and $3 million for the three and nine months ended March 31, 2018, respectively.

[3] Net of income tax benefit of $1 million and $2 million for the three months ended March 31, 2019 and 2018, respectively, and income tax expense (benefit) of $2 million and ($4) million for the nine months ended March 31, 2019 and 2018, respectively.

[4] Net of income tax expense of nil for the three and nine months ended March 31, 2019 and 2018, respectively.

XML

Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net change in the fair value of cash flow hedges, income tax expense	$ 0		$ 1
Unrealized holding gains on securities, income tax expense		$ 1		$ 3
Benefit plan adjustments, income tax expense (benefit)	(1)	(2)	2	(4)
Share of other comprehensive income from equity affiliates, income tax expense	$ 0	$ 0	$ 0	$ 0

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2019	Jun. 30, 2018
Current assets:
Cash and cash equivalents	$ 1,648	$ 2,034
Receivables, net	1,631	1,612
Inventory, net	404	376
Other current assets	564	372
Total current assets	4,247	4,394
Non-current assets:
Investments	347	393
Property, plant and equipment, net	2,557	2,560
Intangible assets, net	2,514	2,671
Goodwill	5,223	5,218
Deferred income tax assets	257	279
Other non-current assets	913	831
Total assets	16,058	16,346
Current liabilities:
Accounts payable	432	605
Accrued expenses	1,364	1,340
Deferred revenue	460	516
Current borrowings	678	462
Other current liabilities	745	372
Total current liabilities	3,679	3,295
Non-current liabilities:
Borrowings	868	1,490
Retirement benefit obligations	237	245
Deferred income tax liabilities	321	389
Other non-current liabilities	495	430
Commitments and contingencies
Equity
Additional paid-in capital	12,229	12,322
Accumulated deficit	(1,927)	(2,163)
Accumulated other comprehensive loss	(1,019)	(874)
Total News Corporation stockholders' equity	9,289	9,291
Noncontrolling interests	1,169	1,186
Total equity	10,458	10,477
Total liabilities and equity	16,058	16,346
Redeemable Preferred Stock [Member]
Equity
Redeemable preferred stock	0	20
Class A Common Stock [Member]
Equity
Common stock	4	4
Class B Common Stock [Member]
Equity
Common stock	$ 2	$ 2

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2019	Jun. 30, 2018
Class A Common Stock [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,500,000,000	1,500,000,000
Common stock, shares issued, net of treasury stock	385,444,822	383,385,353
Common stock outstanding, net of treasury stock	385,444,822	383,385,353
Common stock, treasury shares	27,368,413	27,368,413
Class B Common Stock [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	750,000,000	750,000,000
Common stock, shares issued, net of treasury stock	199,630,240	199,630,240
Common stock outstanding, net of treasury stock	199,630,240	199,630,240
Common stock, treasury shares	78,430,424	78,430,424

XML

Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating activities:
Net income (loss)	$ 270	$ (1,089)
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation and amortization	494	297
Equity losses of affiliates	13	1,002
Cash distributions received from affiliates	30	2
Impairment charges	9	225
Other, net	(30)	(9)
Deferred income taxes and taxes payable	22	182
Change in operating assets and liabilities, net of acquisitions:
Receivables and other assets	37	(86)
Inventories, net	(74)	(14)
Accounts payable and other liabilities	(110)	(45)
Net cash provided by operating activities	661	465
Investing activities:
Capital expenditures	(417)	(200)
Acquisitions, net of cash acquired	(187)	(62)
Investments in equity affiliates and other	(36)	(42)
Proceeds from property, plant and equipment and other asset dispositions	99	137
Other, net	18	23
Net cash used in investing activities	(523)	(144)
Financing activities:
Borrowings	450	0
Repayment of borrowings	(801)	(93)
Dividends paid	(102)	(99)
Other, net	(48)	(42)
Net cash used in financing activities	(501)	(234)
Net change in cash and cash equivalents	(363)	87
Cash and cash equivalents, beginning of period	2,034	2,016
Exchange movement on opening cash balance	(23)	9
Cash and cash equivalents, end of period	$ 1,648	$ 2,112

XML

Description of Business and Basis of Presentation

9 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Description of Business and Basis of Presentation

NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

News Corporation (together with its subsidiaries, “News Corporation,” “News Corp,” the “Company,” “we,” or “us”) is a global diversified media and information services company comprised of businesses across a range of media, including: news and information services, subscription video services in Australia, book publishing and digital real estate services.

In April 2018, News Corp and Telstra Corporation Limited (“Telstra”) combined their respective 50% interests in Foxtel and News Corp’s 100% interest in FOX SPORTS Australia into a new company, which the Company refers to as “new Foxtel” (the “Transaction”). Following the completion of the Transaction, News Corp owns a 65% interest in the combined business, with Telstra owning the remaining 35%. Consequently, the Company began consolidating Foxtel in the fourth quarter of fiscal 2018. See Note 3—Acquisitions, Disposals and Other Transactions; Note 5—Investments; Note 6—Borrowings; and Note 9—Financial Instruments and Fair Value Measurements.

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, 2019. The preparation of the Company’s Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts that are reported in the Consolidated Financial Statements and accompanying disclosures. Actual results could differ from those estimates.

Intercompany transactions and balances have been eliminated. Equity investments in which the Company exercises significant influence but does not exercise control and is not the primary beneficiary are accounted for using the equity method. In accordance with ASU 2016-01, 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, 2018 as filed with the Securities and Exchange Commission (the “SEC”) on August 15, 2018 (the “2018 Form 10-K”).

Certain reclassifications have been made to the prior period consolidated financial statements to conform to the current year presentation. Specifically, in the first quarter of fiscal 2019, the Company reclassified Conference Sponsorship revenues at its Dow Jones reporting unit and Merchandising revenues at News America Marketing from Other revenues to Advertising revenues as the Company believes that the reclassification more accurately reflects the nature of those revenue streams. These revenue reclassifications totaled $15 million and $42 million for the three and nine months ended March 31, 2018, respectively, and $57 million for the fiscal year ended June 30, 2018.

The Company’s fiscal year ends on the Sunday closest to June 30. Fiscal 2019 and fiscal 2018 include 52 weeks. All references to the three and nine months ended March 31, 2019 and 2018 relate to the three and nine months ended March 31, 2019 and April 1, 2018, respectively. For convenience purposes, the Company continues to date its Consolidated Financial Statements as of March 31.

Recently Issued Accounting Pronouncements

Adopted

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which amended the FASB Accounting Standards Codification by creating Topic 606, “Revenue from Contracts with Customers” (“ASC 606”). ASU 2014-09 removes inconsistencies and differences in revenue recognition requirements between GAAP and International Financial Reporting Standards and requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company adopted ASU 2014-09 on a modified retrospective basis as of July 1, 2018. As a result, the Company recorded a $20 million decrease to Accumulated deficit as of July 1, 2018 to reflect the cumulative impact of its adoption of ASC 606. See Note 2—Revenues.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The amendments in ASU 2016-01 address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 is effective for the Company for annual and interim reporting periods beginning July 1, 2018. The Company adopted the guidance on a cumulative-effect basis for its investments with readily determinable fair values effective July 1, 2018. In accordance with ASU 2016-01, the cumulative net unrealized gains (losses) for these investments contained within Accumulated other comprehensive loss were reclassified through Accumulated deficit as of July 1, 2018, and the Company recorded a $22 million decrease to Accumulated deficit. The Company has elected to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. There was no financial statement impact upon adoption for these investments. See Note 5—Investments and Note 14—Additional Financial Information.

In March 2017, the FASB issued ASU 2017-07, “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”). The amendments in ASU 2017-07 require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic benefit cost (income) as defined in paragraphs 715-30-35-4 and 715-60-35-9 are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. ASU 2017-07 allows for a practical expedient that permits a company to use the amounts disclosed in its pension and other postretirement benefit plans note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. ASU 2017-07 is effective for the Company for annual and interim reporting periods beginning July 1, 2018. The Company adopted ASU 2017-07 utilizing the practical expedient. The other components of net periodic benefit cost (income) are included in Other, net in the Statements of Operations. The adoption did not have a material impact on the Company’s Consolidated Financial Statements.

In June 2018, the FASB issued ASU 2018-07, “Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting” (“ASU 2018-07”). The amendments in ASU 2018-07 expanded the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. As permitted by ASU 2018-07, the Company early-adopted this standard and the adoption did not have a material impact on the Company’s Consolidated Financial Statements.

In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)” (“ASU 2018-15”). The amendments in ASU 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). As permitted by ASU 2018-15, the Company early-adopted this standard on a prospective basis. The adoption did not have a material impact on the Company’s Consolidated Financial Statements.

Issued

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). The amendments in ASU 2016-02 require lessees to recognize all leases on the balance sheet by recording a right-of-use asset and a lease liability, and lessor accounting has been updated to align with the new requirements for lessees. The new standard also provides changes to the existing sale-leaseback guidance. ASU 2016-02 is effective for the Company for annual and interim reporting periods beginning July 1, 2019. The FASB has also issued additional standards which provide additional clarification and implementation guidance on the previously issued ASU 2016-02 and have the same effective date as the original standard. The Company plans to apply this guidance on a modified retrospective basis at the beginning of the period of adoption through a cumulative-effect adjustment to retained earnings, with no restatement of prior periods. The Company has selected its lease management system and is in the process of completing its inventory of its lease contracts and implementing processes and controls to enable the preparation of the required financial information for this standard. The Company is currently evaluating the impact ASU 2016-02 will have on its consolidated financial statements.

In June 2016, the FASB issued 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. ASU 2016-13 is effective for the Company for annual and interim reporting periods beginning July 1, 2020. The Company is currently evaluating the impact ASU 2016-13 will have on its consolidated financial statements.

In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”). The amendments in ASU 2017-12 more closely align the results of cash flow and fair value hedge accounting with risk management activities through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements. The amendments address specific limitations in current GAAP by expanding hedge accounting for both nonfinancial and financial risk components and by refining the measurement of hedge results to better reflect an entity’s hedging strategies. ASU 2017-12 is effective for the Company for annual and interim reporting periods beginning July 1, 2019. The Company is currently evaluating the impact ASU 2017-12 will have on its consolidated financial statements.

In February 2018, the FASB issued ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”). The amendments in ASU 2018-02 provide a reclassification from Accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act (as defined below). See Note 12— Income Taxes. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statement users. ASU 2018-02 is effective for the Company for annual and interim reporting periods beginning July 1, 2019. The Company is currently evaluating the impact ASU 2018-02 will have on its consolidated financial statements.

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. ASU 2018-13 is effective for the Company for annual and interim reporting periods beginning July 1, 2020. The Company is currently evaluating the impact ASU 2018-13 will have on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans” (“ASU 2018-14”). The amendments in ASU 2018-14 modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. ASU 2018-14 eliminates the disclosures for amounts in Accumulated other comprehensive loss expected to be recognized as a component of net periodic benefit cost (income) and the effect of a percentage change in health care cost trend rate. ASU 2018-14 is effective for the Company for annual and interim reporting periods beginning July 1, 2021. The Company will comply with the new disclosure requirements in ASU 2018-14 beginning with its Annual Report on Form 10-K for the fiscal year ending June 30, 2019.  

XML

Revenues

9 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenues

NOTE 2. REVENUES

On July 1, 2018, the Company adopted ASC 606 on a modified retrospective basis for all contracts which were not completed as of the adoption date. Results for reporting periods beginning after July 1, 2018 are presented under ASC 606 while prior periods have not been restated. Under ASC 606, revenue is recognized when or as the Company satisfies its respective performance obligations under each contract. The Company recorded a $20 million decrease to Accumulated deficit as of July 1, 2018 to reflect the cumulative impact of its adoption of ASC 606.

When implementing ASC 606, the Company applied the practical expedient to reflect the aggregate effect of all contract modifications occurring before the beginning of the earliest period presented when identifying satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations.

The adoption of ASC 606 primarily resulted in the following changes related to the Company’s revenue recognition policies:

• Reclassification of certain payments to customers

For certain revenue streams within the Subscription Video Services, Book Publishing and News and Information Services segments, the Company previously recorded certain marketing and sales incentive payments to customers within Operating expenses and Selling, general and administrative expenses. In accordance with ASC 606, such payments are now recorded as a reduction of revenue. For the three and nine months ended March 31, 2019, revenues were $22 million and $84 million lower, respectively, as a result of this reclassification, with no impact on the Company’s net income.

• Deferred installation revenues in the Subscription Video Services segment

Under ASC 606, each customer subscription sold is accounted for as a distinct performance obligation. Installation services are not accounted for as a distinct performance obligation and are instead included within the overall services being provided. Therefore, installation revenues are deferred and recognized over the respective customer contract term. Historically, installation revenues were deferred and recognized over the estimated customer life. For the three and nine months ended March 31, 2019, revenues were $5 million and $18 million higher, respectively, as a result of the adoption of ASC 606.

• Acceleration of revenue associated with REA Group’s financial services business

The Company has historically delayed the recognition of trailing commission revenue associated with REA Group’s financial services business until such amounts became fixed or determinable. Under ASC 606, trailing commission revenue is recognized when the related mortgage loan is established. As a result, the Company established a commission receivable of $121 million and a broker commission payable of $94 million as of July 1, 2018. The current portion of the commission receivable and broker commission payable are classified in Receivables, net and Other current liabilities, respectively, with the non-current portion of each classified within Other non-current assets and liabilities, respectively, in the Balance Sheets. The change in accounting for trailing commission revenue did not have a material impact on the Statement of Operations.

The Company’s revenues and expenses for the three and nine months ended March 31, 2019 and the opening balance sheet as of July 1, 2018 under both ASC 606 and the prior standard, ASC 605 are as follows:

	For the three months ended March 31, 2019
	ASC 605			Effects of Adoption			ASC 606
	(in millions)
Revenue:
Circulation and subscription	$	1,019		$	6		$	1,025
Advertising		673			(3	)		670
Consumer		420			(17	)		403
Real estate		218			—			218
Other		144			(3	)		141
Total Revenues	$	2,474		$	(17	)	$	2,457
Operating expenses and Selling, general and administrative	$	(2,228	)	$	18		$	(2,210	)
Net income	$	22		$	1		$	23

	For the nine months ended March 31, 2019
	ASC 605			Effects of Adoption			ASC 606
	(in millions)
Revenue:
Circulation and subscription	$	3,076		$	12		$	3,088
Advertising		2,055			(3	)		2,052
Consumer		1,328			(47	)		1,281
Real estate		693			—			693
Other		510			(16	)		494
Total Revenues	$	7,662		$	(54	)	$	7,608
Operating expenses and Selling, general and administrative	$	(6,706	)	$	73		$	(6,633	)
Net income	$	256		$	14		$	270

	As of July 1, 2018
	ASC 605			Effects of Adoption			ASC 606
	(in millions)
Assets:
Receivables, net	$	1,612		$	200		$	1,812
Other current assets		372			(4	)		368
Deferred income tax assets		279			2			281
Other non-current assets		831			92			923
Liabilities and Equity:
Deferred revenue	$	516		$	(6	)	$	510
Other current liabilities		372			194			566
Deferred income tax liabilities		389			11			400
Other non-current liabilities		430			71			501
Accumulated deficit		(2,163	)		20			(2,143	)

Disaggregated revenue

The following table presents revenue by type and segment for the three and nine months ended March 31, 2019:

	For the three months ended March 31, 2019
	News and Information Services		Subscription Video Services		Book Publishing		Digital Real Estate Services		Other		Total Revenues
	(in millions)
Revenues:
Circulation and subscription	$	538	$	474	$	—	$	12	$	1	$	1,025
Advertising		593		50		—		27		—		670
Consumer		—		—		403		—		—		403
Real estate		—		—		—		218		—		218
Other		93		15		18		15		—		141
Total Revenues	$	1,224	$	539	$	421	$	272	$	1	$	2,457

	For the nine months ended March 31, 2019
	News and Information Services		Subscription Video Services		Book Publishing		Digital Real Estate Services		Other		Total Revenues
	(in millions)
Revenues:
Circulation and subscription	$	1,593	$	1,455	$	—	$	39	$	1	$	3,088
Advertising		1,801		162		—		89		—		2,052
Consumer		—		—		1,281		—		—		1,281
Real estate		—		—		—		693		—		693
Other		335		49		54		55		1		494
Total Revenues	$	3,729	$	1,666	$	1,335	$	876	$	2	$	7,608

Disclosures regarding the nature, timing and uncertainty of the Company’s revenue streams across its segments are as follows:

Circulation and subscription revenues

Circulation and subscription revenues include single-copy newspaper, newspaper subscription, information services subscription and pay television broadcast subscription revenues. Circulation revenues are based on the number of copies of the printed newspaper (through home-delivery subscriptions and single-copy sales) and/or digital subscriptions sold, and the associated rates charged to the customers. Single-copy revenue is recognized at a point in time on the date the newspapers are sold to distribution outlets, net of provisions for related returns.

Revenues from home delivery and digital subscriptions are recognized over the subscription term as the newspapers and/or digital subscriptions are delivered. Information services subscription revenues are recognized over time as the subscriptions are delivered. Payments from subscribers are generally due at the beginning of the month and are recorded as deferred revenue. Such amounts are recognized as revenue as the associated subscription is delivered.

Revenue generated from subscriptions to receive pay television broadcast services, broadband and home phone services for residential and commercial subscribers is recognized over time on a monthly basis as the services are provided. Payment is generally received monthly in advance of providing services, and is deferred upon receipt. Such amounts are recognized as revenue as the related services are provided.

 Advertising revenues

Revenue from print advertising is recognized at the point in time the print advertisement is circulated. Broadcast advertising revenue is recognized over the time that the broadcast advertisement is aired. For impressions-based digital advertising, revenues are recognized as impressions are delivered over the term of the arrangement, while revenue from non-impressions-based digital advertising is recognized over the period that the advertisements are displayed. Such amounts are recognized net of agency commissions and provisions for estimated sales incentives, including rebates, rate adjustments or discounts.

Advertising revenues earned from integrated marketing services are recognized at the point in time when free-standing inserts are published. Revenues earned from in-store marketing services are partially recognized upon installation, with the remaining revenue recognized over the in-store campaign.

Billings to clients and payments received in advance of performance of services or delivery of products are recorded as deferred revenue until the services are performed or the product is delivered. Payment for advertising services is typically due shortly after the Company has satisfied its performance obligation to print, broadcast or place the advertising specified in the contract. For advertising campaigns that extend beyond one month, the Company generally invoices the advertiser in arrears based on the number of advertisements that were printed, broadcast or placed, or impressions delivered during the month.

Consumer revenues

Revenue from the sale of physical books and electronic books (“e-books”) is recognized at the point in time of physical receipt by the customer or electronic delivery. Such amounts are recorded net of provisions for returns and payments to customers when a distinct good or service is not received. If the Company prohibits its customer from selling a physical book until a future date, it recognizes revenue when that restriction lapses.

Revenue is recognized net of any amounts billed to customers for taxes remitted to government authorities. Payments for the sale of physical books and e-books are generally collected within one to three months of sale or delivery and are based on the number of physical books or e-books sold.

Real Estate revenues

Real estate revenues are derived from the sale of online real estate listing products and advanced client management and reporting products, as well as services to agents, brokers and developers. Revenue is typically recognized over the contractual period during which the services are provided. Payments are generally due monthly over the subscription term.

Other revenues

Other revenues are recognized when the related services are performed or the product has been delivered.

Areas of judgment

Contracts with multiple performance obligations

The Company has certain revenue contracts which contain multiple performance obligations such as print and digital advertising bundles and bundled video service subscriptions. Revenues derived from sales contracts that contain multiple products and services are allocated based on the relative standalone selling price of each performance obligation to be delivered. Standalone selling price is typically determined based on prices charged to customers for the same or similar goods or services on a standalone basis. If observable standalone prices are not available, the Company estimates standalone selling price by maximizing the use of observable inputs to most accurately reflect the price of each individual performance obligation. Revenue is recognized as each performance obligation included in the contract is satisfied.

Identification of a customer and gross versus net revenue recognition

In the normal course of business, the Company acts as or uses an intermediary or agent in executing transactions with third parties. When the intermediary or agent is determined to be the Company’s customer, the Company records revenue based on the amount it expects to receive from the agent or intermediary.

In other circumstances, the determination of whether revenue should be reported on a gross or net basis is based on an assessment of whether the Company is acting as the principal or an agent in the transaction. If the Company is acting as a principal in a transaction, the Company reports revenue on a gross basis. If the Company is acting as an agent in a transaction, the Company reports revenue on a net basis. The determination of whether the Company is acting as a principal or an agent in a transaction involves judgment and is based on an evaluation of the terms of the arrangement. The Company serves as the principal in transactions in which it controls the goods or services prior to being transferred to the ultimate customer.

Sales returns

Certain of the Company’s products, such as books and newspapers, are sold with the right of return. The Company records the estimated impact of such returns as a reduction of revenue. To estimate product sales that will be returned and the related products that are expected to be placed back into inventory, the Company analyzes historical returns, current economic trends, changes in customer demand and acceptance of the Company’s products. Based on this information, the Company reserves a percentage of each dollar of product sales that provide the customer with the right of return. As a result of the adoption of ASC 606, the Company reclassified its sales returns reserve from Receivables, net to Other current liabilities.

Contract liabilities and assets

The Company’s deferred revenue balance primarily relates to amounts received from customers for subscriptions paid in advance of the services being provided. The following table presents changes in the deferred revenue balance for the three and nine months ended March 31, 2019:

	For the three months ended March 31, 2019			For the nine months ended March 31, 2019
	(in millions)			(in millions)
Balance, beginning of period	$	430		$	510
Deferral of revenue		934			2,271
Recognition of deferred revenue(a)		(883	)		(2,300	)
Other		(21	)		(21	)
Balance, end of period	$	460		$	460

(a) For the three and nine months ended March 31, 2019, the Company recognized approximately $241 million and $461 million, respectively, of revenue which was included in the opening deferred revenue balance for each of the respective periods.

Contract assets were immaterial for disclosure as of March 31, 2019.

Practical expedients and other revenue disclosures

The Company typically expenses sales commissions incurred to obtain a customer contract as those amounts are incurred as the amortization period is twelve months or less. These costs are recorded within Selling, general and administrative in the Statements of Operations. The Company also applies the practical expedient for significant financing components when the transfer of the good or service is paid within twelve months or less, or the receipt of consideration is received within twelve months or less of the transfer of the good or service.

During the three and nine months ended March 31, 2019, the Company recognized approximately $75 million and $227 million, respectively, in revenues related to performance obligations that were satisfied or partially satisfied in a prior reporting period. The remaining transaction price related to unsatisfied performance obligations as of March 31, 2019 was approximately $297 million, of which approximately $39 million is expected to be recognized over the remainder of fiscal 2019, approximately $133 million is expected to be recognized in fiscal 2020, $98 million is expected to be recognized in fiscal 2021, with the remainder to be recognized thereafter. These amounts do not include (i) contracts with an expected duration of one year or less, (ii) contracts for which variable consideration is determined based on the customer’s subsequent sale or usage and (iii) variable consideration allocated to performance obligations accounted for under the series guidance that meets the allocation objective under ASC 606.

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Acquisitions, Disposals and Other Transactions

9 Months Ended

Mar. 31, 2019

Business Combinations [Abstract]

Acquisitions, Disposals and Other Transactions

NOTE 3. ACQUISITIONS, DISPOSALS AND OTHER TRANSACTIONS

Opcity

In October 2018, the Company acquired Opcity Inc. (“Opcity”), a market-leading real estate technology platform that matches qualified home buyers and sellers with real estate professionals in real time. The total transaction value was approximately $210 million, consisting of approximately $182 million in cash, net of $7 million of cash acquired, and approximately $28 million in deferred payments and restricted stock unit awards for Opcity’s founders and qualifying employees, which is being recognized as compensation expense over the three years following the closing. Included in the cash amount was approximately $20 million that is being held back for approximately 18 months after closing. The acquisition broadens realtor.com®’s lead generation product portfolio, allowing real estate professionals to choose between traditional lead products or a concierge-based model that provides highly vetted, transaction-ready leads. Opcity is a subsidiary of Move, and its results are included within the Digital Real Estate Services segment.

Under the acquisition method of accounting, the total consideration was first allocated to net tangible assets and identifiable intangible assets based upon their fair values as of the date of completion of the acquisition. As a result of the acquisition, the Company recorded approximately $73 million of assets, of which $49 million primarily related to the Opcity technology and data platform with a weighted average useful life of 12 years and $24 million primarily related to intangible assets resulting from previously acquired leads and customer relationships with a weighted average useful life of 9 years. In accordance with ASC 350, “Intangibles – Goodwill and Other” (“ASC 350”) the excess of the total consideration over the fair values of the net tangible and intangible assets of approximately $124 million was recorded as goodwill on the transaction. 

New Foxtel

In April 2018, News Corp and Telstra combined their respective 50% interests in Foxtel and News Corp’s 100% interest in FOX SPORTS Australia into a new company. Following the completion of the Transaction, News Corp owns a 65% interest in the combined business, with Telstra owning the remaining 35%. Consequently, the Company began consolidating Foxtel in the fourth quarter of fiscal 2018. The combination allows Foxtel and FOX SPORTS Australia to leverage their media platforms and content to improve services for consumers and advertisers. The results of new Foxtel are reported within the Subscription Video Services segment (formerly the Cable Network Programming segment), and new Foxtel is considered a separate reporting unit for purposes of the Company’s annual goodwill impairment review.

The Transaction was accounted for in accordance with ASC 805 “Business Combinations” (“ASC 805”) which requires the Company to re-measure its previously held equity interest in Foxtel at its Transaction completion date fair value. The carrying amount of the Company’s previously held equity interest in Foxtel was equal to its fair value as of the Transaction completion date, as the Company wrote its investment in Foxtel down to fair value during the third quarter of fiscal 2018. In accordance with ASC 805, as the Company did not relinquish control of its investment in FOX SPORTS Australia, the reduction in the Company’s ownership interest to 65% was accounted for as a common control transaction on a carryover basis. See Note 5—Investments.

The total aggregate purchase price associated with the Transaction at the completion date is set forth below (in millions):

Consideration transferred(a)	$	331
Fair value of News Corp previously held equity interest in Foxtel		631
Fair value of noncontrolling interest(b)		578
Fair value of net assets	$	1,540

a) Primarily represents the fair value of 35% of FOX SPORTS Australia exchanged as consideration in the Transaction and has been included in noncontrolling interest.

b) Primarily represents the fair value of 35% of Foxtel, which includes the impact of certain market participant synergies.

Under the acquisition method of accounting, the aggregate purchase price, based on a valuation of 100% of Foxtel, was allocated to net tangible and intangible assets based upon their fair value as of the date of completion of the Transaction. The excess of the aggregate purchase price over the fair value of the net tangible and intangible assets acquired was recorded as goodwill. The allocation is as follows (in millions):

Assets acquired:
Cash	$	78
Current assets		492
Property, plant and equipment		967
Intangible assets		861
Goodwill		1,559
Other non-current assets		268
Total assets acquired	$	4,225
Liabilities assumed:
Current liabilities	$	611
Long-term borrowings		1,751
Other non-current liabilities		323
Total liabilities assumed		2,685
Net assets acquired	$	1,540

As a result of the Transaction, the Company recorded net tangible assets of approximately $871 million, excluding long-term borrowings, primarily consisting of property, plant and equipment, which mainly relate to digital set top units and installations and technical equipment, as well as accounts receivable, inventory, accounts payable and accruals at their estimated fair values at the completion date of the Transaction. The Company recorded outstanding borrowings of approximately $1.8 billion as a result of the Transaction. See Note 6—Borrowings.

In addition, the Company recorded approximately $0.9 billion of intangible assets of which $468 million has been allocated to subscriber relationships with a weighted-average useful life of 10 years, $270 million has been allocated to the tradenames which have an indefinite life and approximately $123 million has been allocated to advertiser relationships with a weighted-average useful life of 15 years. In accordance with ASC 350, the excess of the purchase price over the fair values of the net tangible and intangible assets of approximately $1.6 billion was recorded as goodwill on the transaction. 

As a result of the Transaction, the Company recognized a $337 million loss in Other, net in the fourth quarter of fiscal 2018, primarily related to the Company’s settlement of its pre-existing contractual arrangement between Foxtel and FOX SPORTS Australia which resulted in a $317 million write-off of its channel distribution agreement intangible asset at the time of the Transaction.

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Impairment and Restructuring Charges

9 Months Ended

Mar. 31, 2019

Restructuring and Related Activities [Abstract]

Impairment and Restructuring Charges

NOTE 4. IMPAIRMENT AND RESTRUCTURING CHARGES

Fiscal 2019

During the three and nine months ended March 31, 2019, the Company recorded restructuring charges of $25 million and $62 million, respectively, of which $23 million and $55 million, respectively, related to the News and Information Services segment. The restructuring charges recorded in fiscal 2019 were for employee termination benefits.

Fiscal 2018

During the three and nine months ended March 31, 2018, the Company recorded restructuring charges of $21 million and $48 million, respectively, of which $13 million and $38 million, respectively, related to the News and Information Services segment. The restructuring charges recorded in fiscal 2018 were primarily for employee termination benefits.

During the three and nine months ended March 31, 2018, the Company recognized non-cash impairment charges of $225 million primarily related to the impairment of goodwill and intangible assets at the News America Marketing reporting unit and impairment of goodwill at the FOX SPORTS Australia reporting unit.

The Company recognized a $165 million non-cash impairment of goodwill and indefinite-lived intangible assets at its News America Marketing reporting unit. Due to the impact of adverse trends on the future expected performance of the business, the Company revised its future outlook which resulted in a reduction in expected future cash flows. Based on the revised projections, the Company determined that the fair value of the reporting unit was less than its carrying value. The assumptions utilized in the income approach valuation method were discount rates (ranging from 12.5%-14%), long-term growth rates (ranging from (1.9%)-0.9%) and a royalty rate of 2.5%.

The Company recognized a $41 million non-cash impairment of goodwill at its FOX SPORTS Australia reporting unit. As a result of lower-than-expected revenues at Foxtel, the Company revised its future outlook for FOX SPORTS Australia whose revenues are heavily predicated on Foxtel subscribers. Based on the revised projections, the Company determined that the fair value of the reporting unit was less than its carrying value. The assumptions utilized in the income approach valuation method were a discount rate of 9.5% and a long-term growth rate of 2.0%. See Note 5—Investments.

Changes in restructuring program liabilities were as follows:

	For the three months ended March 31,
	2019											2018
	One time employee termination benefits			Facility related costs		Other costs			Total			One time employee termination benefits			Facility related costs		Other costs		Total
	(in millions)
Balance, beginning of period	$	20		$	2	$	11		$	33		$	22		$	4	$	10	$	36
Additions		25			—		—			25			21			—		—		21
Payments		(17	)		—		(1	)		(18	)		(22	)		—		—		(22	)
Other		—			—		—			—			3			—		—		3
Balance, end of period	$	28		$	2	$	10		$	40		$	24		$	4	$	10	$	38

	For the nine months ended March 31,
	2019											2018
	One time employee termination benefits			Facility related costs		Other costs			Total			One time employee termination benefits			Facility related costs			Other costs			Total
	(in millions)
Balance, beginning of period	$	29		$	2	$	11		$	42		$	33		$	6		$	10		$	49
Additions		62			—		—			62			47			—			1			48
Payments		(61	)		—		(2	)		(63	)		(60	)		(1	)		(1	)		(62	)
Other		(2	)		—		1			(1	)		4			(1	)		—			3
Balance, end of period	$	28		$	2	$	10		$	40		$	24		$	4		$	10		$	38

As of March 31, 2019, restructuring liabilities of approximately $30 million were included in the Balance Sheets in Other current liabilities and $10 million were included in Other non-current liabilities. 

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Investments

9 Months Ended

Mar. 31, 2019

Investments Schedule [Abstract]

Investments

NOTE 5. INVESTMENTS

The Company’s investments were comprised of the following:

	Ownership Percentage as of March 31, 2019		As of March 31, 2019		As of June 30, 2018
			(in millions)
Equity method investments(a)		various	$	160	$	173
Equity securities(b)		various		187		220
Total Investments			$	347	$	393

(a) Equity method investments are primarily comprised of new Foxtel’s investment in Nickelodeon Australia Joint Venture and Elara Technologies Pte. Ltd., which operates PropTiger.com, Makaan.com. and Housing.com.

(b) Equity securities are primarily comprised of certain investments in China and the Company’s investment in HT&E Limited, which operates a portfolio of Australian radio and outdoor media assets.

The Company has equity securities with quoted prices in active markets as well as equity securities without readily determinable fair market values. Equity securities without readily determinable fair market values are valued at cost, less any impairment, plus or minus changes in fair value resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. The components comprising total gains and losses on equity securities are set forth below:

	For the three months ended March 31,				For the nine months ended March 31,
	2019		2018		2019			2018
	(in millions)				(in millions)
Total gains (losses) recognized on equity securities	$	6	$	30	$	(23	)	$	13
Less: Net gains recognized on equity securities sold or impaired		—		29		—			5
Unrealized gains (losses) recognized on equity securities held at end of period	$	6	$	1	$	(23	)	$	8

 Equity Losses of Affiliates

The Company’s share of the losses of its equity affiliates was as follows:

	For the three months ended March 31,						For the nine months ended March 31,
	2019			2018			2019			2018
	(in millions)						(in millions)
Foxtel(a)	$	—		$	(970	)	$	—		$	(974	)
Other equity affiliates, net(b)		(4	)		(4	)		(13	)		(28	)
Total Equity losses of affiliates	$	(4	)	$	(974	)	$	(13	)	$	(1,002	)

(a) Following completion of the Transaction in April 2018, News Corp ceased accounting for Foxtel as an equity method investment and began consolidating its results in the fourth quarter of fiscal 2018. See Note 3— Acquisitions, Disposals and Other Transactions.

During the three and nine months ended March 31, 2018, the Company recognized a $957 million non-cash write-down of the carrying value of its investment in Foxtel. In the third quarter of fiscal 2018, the Company assessed the long-term prospects for Foxtel, on both a stand-alone and combined basis. As a result of lower-than-expected revenues from certain products and broadcast subscribers at Foxtel, the Company revised its outlook for Foxtel, which resulted in a reduction in expected future cash flows. Based on the revised projections, the Company concluded that the fair value of its investment in Foxtel declined below its carrying value. The assumptions utilized in the income approach valuation method were a discount rate of 10.25% and a long-term growth rate of 2.0%. The write-down was reflected in Equity losses of affiliates in the Statements of Operations for the three and nine months ended March 31, 2018.

In accordance with ASC 350, the Company amortized $17 million and $49 million related to excess cost over the Company’s proportionate share of its investment’s underlying net assets allocated to finite-lived intangible assets during the three and nine months ended March 31, 2018, respectively. Such amortization was reflected in Equity losses of affiliates in the Statement of Operations.

(b) Other equity affiliates, net for the three and nine months ended March 31, 2019 include losses primarily from the Company’s interest in Elara. During the nine months ended March 31, 2018, the Company recognized $13 million in non-cash write-downs of certain equity method investments’ carrying values. The write-downs were reflected in Equity losses of affiliates in the Statements of Operations for the nine months ended March 31, 2018.

Summarized financial information for Foxtel, presented in accordance with U.S. GAAP, was as follows:

	For the nine months ended March 31,
	2018
	(in millions)
Revenues	$	1,818
Operating income(a)		155
Net income		64

(a) Includes Depreciation and amortization of $187 million for the nine months ended March 31, 2018. Operating income before depreciation and amortization was $342 million for the nine months ended March 31, 2018.

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Borrowings

9 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Borrowings

NOTE 6. BORROWINGS

The Company’s total borrowings consist of the following:

	Interest rate at March 31, 2019			Due date at March 31, 2019		As of March 31, 2019			As of June 30, 2018
						(in millions)
Foxtel Group
Credit facility 2013(a)(b)		3.55	%		Apr 7, 2019	$	—		$	222
Credit facility 2014 — tranche 1(a)		3.55	%		May 30, 2019		142			148
Credit facility 2014 — tranche 2(a)		3.65	%		Jan 31, 2020		142			148
Credit facility 2015(a)		3.70	%		Jul 31, 2020		284			296
Credit facility 2016(a)(c)		4.25	%		Sept 11, 2021		53			108
Working capital facility 2017(a)(c)		3.85	%		Jul 3, 2020		57			59
US private placement 2009 — tranche 3		6.20	%		Sept 24, 2019		74			75
US private placement 2012 — USD portion — tranche 1(d)		3.68	%		Jul 25, 2019		150			150
US private placement 2012 — USD portion — tranche 2(d)		4.27	%		Jul 25, 2022		198			196
US private placement 2012 — USD portion — tranche 3(d)		4.42	%		Jul 25, 2024		148			146
US private placement 2012 — AUD portion		7.04	%		Jul 25, 2022		78			83
REA Group
Credit facility 2016 — tranche 2(e)(f)		—			Dec 31, 2018		—			89
Credit facility 2016 — tranche 3(e)(f)		3.01	%		Dec 31, 2019		170			178
Credit facility 2018(e)		2.71	%		Apr 27, 2021		50			54
Total borrowings							1,546			1,952
Less: current portion(g)							(678	)		(462	)
Long-term borrowings						$	868		$	1,490

(a) Borrowings under these facilities bear interest at a floating rate of Australian BBSY plus an applicable margin of between 1.10% and 2.70% per annum payable quarterly.

(b) During the three and nine months ended March 31, 2019, the Foxtel Group repaid its A$300 million (approximately $216 million) facility maturing in April 2019 using A$300 million of shareholder loans provided by the Company.

(c)	As of March 31, 2019, the Foxtel Group has undrawn commitments of $241 million under these facilities for which it pays a commitment fee in the range of 40% to 45% of the applicable margin.
(d)	The carrying value of the borrowings include any fair value adjustments related to the Company’s fair value hedges. See Note 9 —Financial Instruments and Fair Value Measurements.

(e) Borrowings under these facilities bear interest at a floating rate of the Australian BBSY plus a margin of between 0.85% and 1.45% depending on REA Group’s net leverage ratio. As of March 31, 2019, REA Group was paying a margin of between 0.85% and 1.05%.

(f) During the nine months ended March 31, 2019, REA Group repaid A$120 million (approximately $87 million) of the A$480 million revolving loan facility. Remaining borrowings under the facility of A$240 million (approximately $170 million) will mature in fiscal 2020.

(g) The Company classifies the current portion of long term debt as non-current liabilities on the Balance Sheets when it has the intent and ability to refinance the obligation on a long-term basis, in accordance with ASC 470-50 “Debt.”

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Redeemable Preferred Stock

9 Months Ended

Mar. 31, 2019

Text Block [Abstract]

Redeemable Preferred Stock

NOTE 7. REDEEMABLE PREFERRED STOCK

In connection with the Company’s separation of its businesses (the “Separation”) from Twenty-First Century Fox, Inc. (“21st Century Fox”) on June 28, 2013 (the “Distribution Date”), 21st Century Fox sold 4,000 shares of cumulative redeemable preferred stock with a par value of $5,000 per share of a newly formed U.S. subsidiary of the Company. The preferred stock paid dividends at a rate of 9.5% per annum, payable quarterly, in arrears. The preferred stock was callable by the Company at any time after the fifth year and puttable at the option of the holder after 10 years. In July 2018, the Company exercised its call option and redeemed 100% of the outstanding redeemable preferred stock.

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Equity

9 Months Ended

Mar. 31, 2019

Stockholders' Equity Note [Abstract]

Equity

NOTE 8. EQUITY

The following tables summarize changes in equity for the three and nine months ended March 31, 2019 and 2018:

	For the three months ended March 31, 2019
															Accumulated
	Class A				Class B				Additional						Other			Total News
	Common Stock				Common Stock				Paid-in			Accumulated			Comprehensive			Corporation			Noncontrolling			Total
	Shares		Amount		Shares		Amount		Capital			Deficit			Loss			Equity			Interests			Equity
	(in millions)
Balance, December 31, 2018		385	$	4		200	$	2	$	12,271		$	(1,937	)	$	(1,076	)	$	9,264		$	1,170		$	10,434
Net income		—		—		—		—		—			10			—			10			13			23
Other comprehensive income		—		—		—		—		—			—			57			57			10			67
Dividends		—		—		—		—		(58	)		—			—			(58	)		(20	)		(78	)
Other		—		—		—		—		16			—			—			16			(4	)		12
Balance, March 31, 2019		385	$	4		200	$	2	$	12,229		$	(1,927	)	$	(1,019	)	$	9,289		$	1,169		$	10,458

	For the three months ended March 31, 2018
															Accumulated
	Class A				Class B				Additional						Other			Total News
	Common Stock				Common Stock				Paid-in			Accumulated			Comprehensive			Corporation			Noncontrolling			Total
	Shares		Amount		Shares		Amount		Capital			Deficit			Loss			Equity			Interests			Equity
	(in millions)
Balance, December 31, 2017		383	$	4		200	$	2	$	12,350		$	(664	)	$	(832	)	$	10,860		$	298		$	11,158
Net (loss) income		—		—		—		—		—			(1,128	)		—			(1,128	)		18			(1,110	)
Other comprehensive income (loss)		—		—		—		—		—			—			3			3			(2	)		1
Dividends		—		—		—		—		(59	)		—			—			(59	)		(19	)		(78	)
Other		—		—		—		—		19			—			—			19			1			20
Balance, March 31, 2018		383	$	4		200	$	2	$	12,310		$	(1,792	)	$	(829	)	$	9,695		$	296		$	9,991

	For the nine months ended March 31, 2019
	Class A				Class B				Additional						Accumulated Other			Total News
	Common Stock				Common Stock				Paid-in			Accumulated			Comprehensive			Corporation			Noncontrolling			Total
	Shares		Amount		Shares		Amount		Capital			Deficit			Loss			Equity			Interests			Equity
	(in millions)
Balance, June 30, 2018		383	$	4		200	$	2	$	12,322		$	(2,163	)	$	(874	)	$	9,291		$	1,186		$	10,477
Cumulative impact from adoption of new accounting standards		—		—		—		—		—			32			(22	)		10			10			20
Net income		—		—		—		—		—			206			—			206			64			270
Other comprehensive loss		—		—		—		—		—			—			(124	)		(124	)		(46	)		(170	)
Dividends		—		—		—		—		(117	)		—			—			(117	)		(43	)		(160	)
Other		2		—		—		—		24			(2	)		1			23			(2	)		21
Balance, March 31, 2019		385	$	4		200	$	2	$	12,229		$	(1,927	)	$	(1,019	)	$	9,289		$	1,169		$	10,458

	For the nine months ended March 31, 2018
															Accumulated
	Class A				Class B				Additional						Other			Total News
	Common Stock				Common Stock				Paid-in			Accumulated			Comprehensive			Corporation			Noncontrolling			Total
	Shares		Amount		Shares		Amount		Capital			Deficit			Loss			Equity			Interests			Equity
	(in millions)
Balance, June 30, 2017		382	$	4		200	$	2	$	12,395		$	(648	)	$	(964	)	$	10,789		$	284		$	11,073
Net (loss) income		—		—		—		—		—			(1,143	)		—			(1,143	)		54			(1,089	)
Other comprehensive income		—		—		—		—		—			—			135			135			1			136
Dividends		—		—		—		—		(118	)		—			—			(118	)		(40	)		(158	)
Other		1		—		—		—		33			(1	)		—			32			(3	)		29
Balance, March 31, 2018		383	$	4		200	$	2	$	12,310		$	(1,792	)	$	(829	)	$	9,695		$	296		$	9,991

Stock Repurchases

In May 2013, the Company’s Board of Directors (the “Board of Directors”) authorized the Company to repurchase up to an aggregate of $500 million of its Class A Common Stock. No stock repurchases were made during the nine months ended March 31, 2019. Through May 3, 2019, the Company cumulatively repurchased approximately 5.2 million shares of Class A Common Stock for an aggregate cost of approximately $71 million. The remaining authorized amount under the stock repurchase program as of May 3, 2019 was approximately $429 million. All decisions regarding any future stock repurchases are at the sole discretion of a duly appointed committee of the Board of Directors and management. The committee’s decisions regarding future stock repurchases will be evaluated from time to time in light of many factors, including the Company’s financial condition, earnings, capital requirements and debt facility covenants, other contractual restrictions, as well as legal requirements, regulatory constraints, industry practice, market volatility and other factors that the committee may deem relevant. The stock repurchase authorization may be modified, extended, suspended or discontinued at any time by the Board of Directors and the Board of Directors cannot provide any assurances that any additional shares will be repurchased.

Dividends

In February 2019, the Board of Directors declared a semi-annual cash dividend of $0.10 per share for Class A Common Stock and Class B Common Stock. This dividend was paid on April 17, 2019 to stockholders of record at the close of business on March 13, 2019. The timing, declaration, amount and payment of future dividends to stockholders, if any, is within the discretion of the Board of Directors. The Board of Directors’ decisions regarding the payment of future dividends will depend on many factors, including the Company’s financial condition, earnings, capital requirements and debt facility covenants, other contractual restrictions, as well as legal requirements, regulatory constraints, industry practice, market volatility and other factors that the Board of Directors deems relevant.

The following table sets forth the cash dividend declared per share for the three and nine months ended March 31, 2019 and 2018:

	For the three months ended March 31,				For the nine months ended March 31,
	2019		2018		2019		2018
Cash dividend declared per share	$	0.10	$	0.10	$	0.20	$	0.20

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Financial Instruments and Fair Value Measurements

9 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Financial Instruments and Fair Value Measurements

NOTE 9. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

In accordance with ASC 820, “Fair Value Measurements” (“ASC 820”) fair value measurements are required to be disclosed using a three-tiered fair value hierarchy which distinguishes market participant assumptions into the following categories:

• Level 1 — Quoted prices in active markets for identical assets or liabilities.

• Level 2 — Observable inputs other than quoted prices included in Level 1. The Company could value assets and liabilities included in this level using dealer and broker quotations, certain pricing models, bid prices, quoted prices for similar assets and liabilities in active markets, or other inputs that are observable or can be corroborated by observable market data.

• Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. For the Company, this primarily includes the use of forecasted financial information and other valuation related assumptions such as discount rates and long term growth rates in the income approach as well as the market approach which utilizes certain market and transaction multiples.

Under ASC 820, certain assets and liabilities are required to be remeasured to fair value at the end of each reporting period. The following table summarizes those assets and liabilities measured at fair value on a recurring basis:

	As of March 31, 2019								As of June 30, 2018
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(in millions)
Assets:
Foreign currency derivatives - cash flow hedges	$	—	$	3	$	—	$	3	$	—	$	3	$	—	$	3
Cross currency interest rate derivatives - fair value hedges		—		27		—		27		—		29		—		29
Cross currency interest rate derivatives - economic hedges		—		12		—		12		—		10		—		10
Cross currency interest rate derivatives - cash flow hedges		—		107		—		107		—		76		—		76
Equity securities(a)		72		—		115		187		93		—		—		93
Total assets	$	72	$	149	$	115	$	336	$	93	$	118	$	—	$	211
Liabilities:
Interest rate derivatives - cash flow hedges	$	—	$	19	$	—	$	19	$	—	$	20	$	—	$	20
Mandatorily redeemable noncontrolling interests		—		—		12		12		—		—		12		12
Cross currency interest rate derivatives - cash flow hedges		—		15		—		15		—		12		—		12
Total liabilities	$	—	$	34	$	12	$	46	$	—	$	32	$	12	$	44

(a) See Note 5 —Investments.

There have been no transfers between levels of the fair value hierarchy during the periods presented.

Equity securities

The fair values of equity securities with quoted prices in active markets are determined based on the closing price at the end of each reporting period. These securities are classified as Level 1 in the fair value hierarchy outlined above. The fair values of equity securities without readily determinable fair market values are determined based on cost, less any impairment, plus or minus changes in fair value resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. These securities are classified as Level 3 in the fair value hierarchy outlined above.

A rollforward of the Company’s equity securities classified as Level 3 is as follows:

	For the nine months ended March 31, 2019
	(in millions)
Balance - beginning of period(a)	$	127
Purchases		7
Sales		(10	)
Foreign exchange and other		(9	)
Balance - end of period	$	115

(a) Includes impact from the adoption of ASU 2016-01. See Note 1—Description of Business and Basis of Presentation.

Mandatorily redeemable noncontrolling interests

The Company has liabilities recorded in its Balance Sheets for its mandatorily redeemable noncontrolling interests. These liabilities represent management’s best estimate of the amounts expected to be paid in accordance with the contractual terms of the underlying acquisition agreements. The fair values of these liabilities are based on the contractual payout formulas included in the acquisition agreements taking into account the expected performance of the business. Any remeasurements or accretion related to the Company’s mandatorily redeemable noncontrolling interests are recorded through Interest (expense) income, net in the Statements of Operations. As the fair value does not rely on observable market inputs, the Company classifies these liabilities as Level 3 in the fair value hierarchy.

A rollforward of the Company’s mandatorily redeemable noncontrolling interest liabilities classified as Level 3 is as follows:

	For the nine months ended March 31,
	2019			2018
	(in millions)
Balance - beginning of period	$	12		$	79
Additions		—			12
Accretion		1			2
Foreign exchange movements		(1	)		(1	)
Balance - end of period	$	12		$	92

Derivative Instruments

The Company is directly and indirectly affected by risks associated with changes in certain market conditions. When deemed appropriate, the Company uses derivative instruments to mitigate the potential impact of these market risks. The primary market risks managed by the Company through the use of derivative instruments include:

• foreign currency exchange rate risk: arising primarily through Foxtel Group borrowings denominated in U.S. dollars and payments for license fees; and

• interest rate risk: arising from fixed and floating rate Foxtel Group borrowings.

 The Company formally designates qualifying derivatives as hedge relationships (“hedges”) and applies hedge accounting when considered appropriate. For economic hedges where no hedge relationship has been designated, changes in fair value are included as a component of net income in each reporting period within Other, net in the Statements of Operations. The Company does not use derivative financial instruments for trading or speculative purposes.

Hedges are classified as current or non-current in the Balance Sheets based on their maturity dates. Refer to the table below for further details:

			Fair value as of
	Balance Sheet Location		March 31, 2019			June 30, 2018
			(in millions)
Foreign currency derivatives - cash flow hedges		Other current assets	$	3		$	3
Cross currency interest rate derivatives - fair value hedges		Other current assets		8			—
Cross currency interest rate derivatives - economic hedges		Other current assets		12			—
Cross currency interest rate derivatives - cash flow hedges		Other current assets		32			—
Cross currency interest rate derivatives - fair value hedges		Other non-current assets		19			29
Cross currency interest rate derivatives - cash flow hedges		Other non-current assets		75			76
Cross currency interest rate derivatives - economic hedges		Other non-current assets		—			10
Interest rate derivatives - cash flow hedges		Other current liabilities		(3	)		—
Interest rate derivatives - cash flow hedges		Other non-current liabilities		(16	)		(20	)
Cross currency interest rate derivatives - cash flow hedges		Other non-current liabilities		(15	)		(12	)

Cash flow hedges

The Company utilizes a combination of foreign currency derivatives, interest rate derivatives and cross currency interest rate derivatives to mitigate currency exchange and interest rate risk in relation to payments for license fees and future interest payments.

The total notional value of foreign currency contract derivatives designated for hedging was $34 million as of March 31, 2019. The maximum hedged term over which the Company is hedging exposure to foreign currency fluctuations is to June 2019. As of March 31, 2019, the Company estimates that approximately $3 million of net derivative gains related to its foreign currency contract derivative cash flow hedges included in Accumulated other comprehensive loss will be reclassified into the Statement of Operations within the next 12 months.

The total notional value of interest rate swap derivatives designated as cash flow hedges was approximately A$700 million as of March 31, 2019. The maximum hedged term over which the Company is hedging exposure to variability in interest payments is to September 2022. As of March 31, 2019, the Company estimates that approximately $4 million of net derivative gains related to its interest rate swap derivative cash flow hedges included in Accumulated other comprehensive loss will be reclassified into the Statement of Operations within the next 12 months.

The total notional value of the cross currency interest rate swaps that were designated as cash flow hedges was approximately A$400 million as of March 31, 2019. The maximum hedged term over which the Company is hedging exposure to variability in interest payments is to July 2024. As of March 31, 2019, the Company estimates that approximately $1 million of net derivative gains related to its cross currency interest rate swap derivative cash flow hedges included in Accumulated other comprehensive loss will be reclassified into the Statement of Operations within the next 12 months.

The following tables present the impact that changes in the fair values of derivatives designated as cash flow hedges had on Accumulated other comprehensive loss and the Statement of Operations during the three and nine months ended March 31, 2019. The Company did not have any such hedges in the three and nine months ended March 31, 2018.

	(Gain) loss recognized in Accumulated Other Comprehensive Loss for the three months ended				Gain (loss) reclassified from Accumulated Other Comprehensive Loss for the three months ended					Income statement
	March 31,				March 31,					location
	2019		2018		2019			2018
	(in millions)
Derivative instruments designated as cash flow hedges:
Foreign currency derivatives - cash flow hedges	$	2	$	—	$	—		$	—	Operating expenses
Cross currency interest rate derivatives - cash flow hedges		9		—		(7	)		—	Interest (expense) income, net
Interest rate derivatives - cash flow hedges		4		—		(2	)		—	Interest (expense) income, net
Total	$	15	$	—	$	(9	)	$	—

	(Gain) loss recognized in Accumulated Other Comprehensive Loss for the nine months ended					Gain (loss) reclassified from Accumulated Other Comprehensive Loss for the nine months ended					Income statement
	March 31,					March 31,					location
	2019			2018		2019			2018
	(in millions)
Derivative instruments designated as cash flow hedges:
Foreign currency derivatives - cash flow hedges	$	(2	)	$	—	$	2		$	—	Operating expenses
Cross currency interest rate derivatives - cash flow hedges		(7	)		—		5			—	Interest (expense) income, net
Interest rate derivatives - cash flow hedges		6			—		(6	)		—	Interest (expense) income, net
Total	$	(3	)	$	—	$	1		$	—

During the three and nine months ended March 31, 2019 the amount recognized in the Statement of Operations for the ineffective portion of derivative instruments designated as cash flow hedges was approximately $2 million and $3 million, respectively, and the Company did not exclude any component of the changes in fair value of the derivative instruments from the assessment of hedge effectiveness.

Fair value hedges

The Company’s primary interest rate risk arises from its borrowings acquired as a part of the Transaction. Borrowings issued at fixed rates and in U.S. dollars expose new Foxtel to fair value interest rate risk and currency exchange rate risk. The Company manages fair value interest rate risk and currency exchange rate risk through the use of cross currency interest rate swaps under which the Company exchanges fixed interest payments equivalent to the interest payments on the U.S. dollar denominated debt for floating rate Australian dollar denominated interest payments. The changes in fair value of derivatives designated as fair value hedges and the offsetting changes in fair value of the hedged items are recognized in Other, net. As of March 31, 2019, such adjustments increased the carrying value of borrowings by approximately $3 million.

The total notional value of the fair value hedges was approximately A$100 million as of March 31, 2019. The maximum hedged term over which the Company is hedging exposure to variability in interest payments is to July 2024.

During the three and nine months ended March 31, 2019, the amount recognized in the Statement of Operations on derivative instruments designated as fair value hedges related to the ineffective portion was nil and the Company did not exclude any component of the changes in fair value of the derivative instruments from the assessment of hedge effectiveness.

Economic (non-designated) hedges

In addition to derivative instruments that are designated and qualify for hedge accounting, the Company also uses certain derivatives not designated as accounting hedges to mitigate currency exchange and interest rate risk. These are referred to as economic hedges. The changes in fair value of economic hedges are immediately recognized in the Statement of Operations. The total notional value of these cross currency interest rate derivatives was $75 million as of March 31, 2019, which relate to the U.S. private placement 2009 debt.

Nonrecurring Fair Value Measurements

In addition to assets and liabilities that are remeasured at fair value on a recurring basis, the Company has certain assets, primarily goodwill, intangible assets, equity method investments and property, plant and equipment, that are not required to be remeasured to fair value at the end of each reporting period. On an ongoing basis, the Company monitors whether events occur or circumstances change that would more likely than not reduce the fair values of these assets below their carrying amounts. If the Company determines that these assets are impaired, the Company would write down these assets to fair value. These nonrecurring fair value measurements are considered to be Level 3 in the fair value hierarchy.

In the third quarter of fiscal 2018, the Company recognized a $957 million non-cash write-down of the carrying value of its equity method investment in Foxtel from $1,588 million to $631 million. In the second quarter of fiscal 2018, the Company recognized non-cash write-downs of certain equity method investments of approximately $13 million. The carrying value of these equity method investments decreased from $136 million to $123 million. See Note 5 – Investments.

In the third quarter of fiscal 2018, the Company recognized non-cash impairment charges of $120 million and $45 million related to goodwill and intangible assets, respectively, at the News America Marketing reporting unit. The carrying value of goodwill at News America Marketing decreased from $301 million to $181 million and the carrying value of intangible assets decreased from $391 million to $346 million. See Note 4 – Impairment and Restructuring Charges.

In the third quarter of fiscal 2018, the Company recognized a $41 million non-cash impairment charge related to goodwill at the FOX SPORTS Australia reporting unit. The carrying value of goodwill at FOX SPORTS Australia decreased from $490 million to $449 million. See Note 4 – Impairment and Restructuring Charges.

Other Fair Value Measurements

As of March 31, 2019, the carrying value of the Company’s outstanding borrowings approximates the fair value and is classified as Level 3 in the fair value hierarchy.

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Earnings (Loss) Per Share

9 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

NOTE 10. EARNINGS (LOSS) PER SHARE

The following tables set forth the computation of basic and diluted earnings (loss) per share under ASC 260, “Earnings per Share”:

	For the three months ended March 31,						For the nine months ended March 31,
	2019			2018			2019			2018
	(in millions, except per share amounts)
Net income (loss)	$	23		$	(1,110	)	$	270		$	(1,089	)
Less: Net income attributable to noncontrolling interests		(13	)		(18	)		(64	)		(54	)
Less: Redeemable preferred stock dividends(a)		—			—			—			(1	)
Net income (loss) available to News Corporation stockholders	$	10		$	(1,128	)	$	206		$	(1,144	)
Weighted-average number of shares of common stock outstanding - basic		585.0			582.8			584.6			582.6
Dilutive effect of equity awards(b)		3.8			—			2.6			—
Weighted-average number of shares of common stock outstanding - diluted		588.8			582.8			587.2			582.6
Net income (loss) available to News Corporation stockholders per share - basic and diluted	$	0.02		$	(1.94	)	$	0.35		$	(1.96	)

(a) In connection with the Separation, 21st Century Fox sold 4,000 shares of cumulative redeemable preferred stock with a par value of $5,000 per share of a newly formed U.S. subsidiary of the Company. The preferred stock paid dividends at a rate of 9.5% per annum, payable quarterly, in arrears. The preferred stock was callable by the Company at any time after the fifth year and puttable at the option of the holder after 10 years. In July 2018, the Company exercised its call option and redeemed 100% of the outstanding redeemable preferred stock.

(b) The dilutive impact of the Company’s performance stock units, restricted stock units and stock options has been excluded from the calculation of diluted loss per share for the three and nine months ended March 31, 2018 because their inclusion would have an antidilutive effect on the net loss per share.

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Commitments and Contingencies

9 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

NOTE 11. COMMITMENTS AND CONTINGENCIES

Commitments

The Company has commitments under certain firm contractual arrangements (“firm commitments”) to make future payments. These firm commitments secure the future rights to various assets and services to be used in the normal course of operations. The Company’s commitments as of March 31, 2019 have not changed significantly from the disclosures included in the 2018 Form 10-K.

Contingencies

The Company routinely is involved in various legal proceedings, claims and governmental inspections or investigations, including those discussed below. The outcome of these matters and claims is subject to significant uncertainty, and the Company often cannot predict what the eventual outcome of pending matters will be or the timing of the ultimate resolution of these matters. Fees, expenses, fines, penalties, judgments or settlement costs which might be incurred by the Company in connection with the various proceedings could adversely affect its results of operations and financial condition.

The Company establishes an accrued liability for legal claims when it determines that a loss is both probable and the amount of the loss can be reasonably estimated. Once established, accruals are adjusted from time to time, as appropriate, in light of additional information. The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be higher or lower than the amounts accrued for such matters. Legal fees associated with litigation and similar proceedings are expensed as incurred. Except as otherwise provided below, for the contingencies disclosed for which there is at least a reasonable possibility that a loss may be incurred, the Company was unable to estimate the amount of loss or range of loss. The Company recognizes gain contingencies when the gain becomes realized or realizable.

Valassis Communications, Inc.

On November 8, 2013, Valassis Communications, Inc. (“Valassis”) filed a complaint in the U.S. District Court for the Eastern District of Michigan (the “District Court”) against News America Incorporated, News America Marketing FSI L.L.C., News America Marketing In-Store Services L.L.C. and News Corporation (together, the “NAM Group”) alleging violations of federal and state antitrust laws and common law business torts. The complaint sought treble damages, injunctive relief and attorneys’ fees and costs. On December 19, 2013, the NAM Group filed a motion to dismiss the complaint, and on March 30, 2016, the District Court ordered that Valassis’s bundling and tying claims be dismissed and that all remaining claims in the NAM Group’s motion to dismiss be referred to a panel of antitrust experts (the “Antitrust Expert Panel”) appointed in connection with a prior action brought by Valassis against certain members of the NAM Group. The Antitrust Expert Panel was convened and, on February 8, 2017, recommended that the NAM Group’s counterclaims in the action be dismissed with leave to replead three of the four counterclaims. The NAM Group filed an amended counterclaim on February 27, 2017. Valassis subsequently filed motions with the District Court seeking either to re-open the case in the District Court or to transfer the case to the U.S. District Court for the Southern District of New York (the “N.Y. District Court”). On September 25, 2017, the District Court granted Valassis’s motions and transferred the case to the N.Y. District Court. On April 13, 2018, the NAM Group filed a motion for summary judgment dismissing the case with the N.Y. District Court, and on February 21, 2019, the N.Y. District Court granted the NAM Group’s motion in part and denied it in part. The N.Y. District Court found that the NAM Group’s bidding practices were lawful but denied the NAM Group’s motion with respect to claims arising out of certain other alleged contracting practices. Valassis also ceased to pursue its claims relating to free-standing insert products, and those claims were dismissed. While it is not possible at this time to predict with any degree of certainty the ultimate outcome of this action, the NAM Group believes it has been compliant with applicable laws and intends to defend itself vigorously.

U.K. Newspaper Matters

Civil claims have been brought against the Company with respect to, among other things, voicemail interception and inappropriate payments to public officials at the Company’s former publication, The News of the World, and at The Sun, and related matters (the “U.K. Newspaper Matters”). The Company has admitted liability in many civil cases and has settled a number of cases. The Company also settled a number of claims through a private compensation scheme which was closed to new claims after April 8, 2013.

In connection with the Separation, the Company and 21st Century Fox agreed in the Separation and Distribution Agreement that 21st Century Fox would indemnify the Company for payments made after the Distribution Date arising out of civil claims and investigations relating to the U.K. Newspaper Matters as well as legal and professional fees and expenses paid in connection with the previously concluded criminal matters, other than fees, expenses and costs relating to employees (i) who are not directors, officers or certain designated employees or (ii) with respect to civil matters, who are not co-defendants with the Company or 21st Century Fox. 21st Century Fox’s indemnification obligations with respect to these matters are settled on an after-tax basis. In March 2019, as part of the separation of Fox Corporation (“FOX”) from 21st Century Fox, the Company, News Corp Holdings UK & Ireland, 21st Century Fox and FOX entered into a Partial Assignment and Assumption Agreement, pursuant to which, among other things, 21st Century Fox assigned, conveyed and transferred to FOX all of its indemnification obligations with respect to the U.K. Newspaper Matters.

The net expense (benefit) related to the U.K. Newspaper Matters in Selling, general and administrative was $2 million for each of  the three months ended March 31, 2019 and 2018 and $8 million and ($38) million for the nine months ended March 31, 2019 and 2018, respectively. As of March 31, 2019, the Company has provided for its best estimate of the liability for the claims that have been filed and costs incurred, including liabilities associated with employment taxes, and has accrued approximately $54 million. The amount to be indemnified by  FOX of approximately $51 million was recorded as a receivable in Other current assets on the Balance Sheet as of March 31, 2019. The net benefit for the nine months ended March 31, 2018 reflects a $46 million impact from the reversal of a portion of the Company’s previously accrued liability and the corresponding receivable as the result of an agreement reached with the relevant tax authority with respect to certain employment taxes. It is not possible to estimate the liability or corresponding receivable for any additional claims that may be filed given the information that is currently available to the Company. If more claims are filed and additional information becomes available, the Company will update the liability provision and corresponding receivable for such matters.

The Company is not able to predict the ultimate outcome or cost of the civil claims. It is possible that these proceedings and any adverse resolution thereof could damage its reputation, impair its ability to conduct its business and adversely affect its results of operations and financial condition.

Other

The Company’s tax returns are subject to on-going review and examination by various tax authorities. Tax authorities may not agree with the treatment of items reported in the Company’s tax returns, and therefore the outcome of tax reviews and examinations can be unpredictable.

The Company believes it has appropriately accrued for the expected outcome of uncertain tax matters and believes such liabilities represent a reasonable provision for taxes ultimately expected to be paid; however, these liabilities may need to be adjusted as new information becomes known and as tax examinations continue to progress, or as settlements or litigations occur.

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Income Taxes

9 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 12. INCOME TAXES

At the end of each interim period, the Company estimates the annual effective tax rate and applies that rate to its ordinary quarterly earnings. The tax expense or benefit related to significant, unusual or extraordinary items that will be separately reported or reported net of their related tax effect are individually computed and recognized in the interim period in which those items occur. In addition, the effects of changes in enacted tax laws or rates or tax status are recognized in the interim period in which the change occurs.

For the three months ended March 31, 2019, the Company recorded income tax expense of $7 million on pre-tax income of $30 million resulting in an effective tax rate that was higher than the U.S. statutory tax rate. The higher tax rate was primarily due to valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses and the impact from foreign operations which are subject to higher tax rates.

For the nine months ended March 31, 2019, the Company recorded income tax expense of $112 million on pre-tax income of $382 million resulting in an effective tax rate that was higher than the U.S. statutory tax rate. The higher tax rate was primarily due to valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses and the impact from foreign operations which are subject to higher tax rates.

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act includes significant changes to the U.S. corporate income tax system including, among other things, lowering the U.S. statutory federal tax rate to 21%. The reduction of the U.S. corporate tax rate caused the Company to adjust its U.S. deferred tax assets and liabilities to the lower federal rate of 21% at the fiscal year ended June 30, 2018. The Tax Act also added many new provisions, including a one-time repatriation tax on deemed repatriation of historical earnings of foreign subsidiaries (“transition tax”), changes to bonus depreciation, limits on deductions for executive compensation and interest expense, a tax on global intangible low-taxed income (“GILTI”), the base erosion anti-abuse tax (“BEAT”) and a deduction for foreign-derived intangible income. The Company has elected to account for the tax on GILTI and BEAT as a period cost and thus has not adjusted any net deferred tax assets of its foreign subsidiaries for the new tax. However, the Company has considered the potential impact of GILTI and BEAT on its U.S. federal net operating loss (“NOL”) carryforward and determined that the projected tax benefit to be received from its NOL carryforward may be reduced due to these provisions.

The changes included in the Tax Act are broad and complex. The SEC issued Staff Accounting Bulletin No. 118 (SAB 118), as amended by ASU 2018-05, which provides guidance for companies related to the Tax Act. ASU 2018-05 allows for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. The Company’s accounting for the tax effects of the Tax Act were completed in the second quarter of fiscal 2019. Although the Company believes the effects of the Tax Act have been appropriately recorded, it will continue to monitor, among other things, changes in interpretations of the Tax Act, any legislative action arising because of the Tax Act and any changes in accounting standards for income taxes or related interpretations in response to the Tax Act. The Company intends to monitor and assess the impact of any future changes in legislative interpretations or standards and adjust its provision as new information becomes available. In accordance with SAB 118, the Company has made reasonable estimates related to (1) the remeasurement of its U.S. deferred tax balances for the reduction in the statutory tax rate, (2) the liability for the transition tax and (3) the partial valuation allowance recorded against its federal NOL carryforward due to the impact of the GILTI and BEAT provisions. As a result, the Company recognized a net provisional income tax expense of $237 million associated with these items in the fiscal year ended June 30, 2018. In the second quarter of fiscal 2019, the Company determined that there were no material changes to the provisional amounts recorded as of June 30, 2018.

Management assesses available evidence to determine whether sufficient future taxable income will be generated to permit the use of existing deferred tax assets. Based on management’s assessment of available evidence, it has been determined that it is more likely than not that certain deferred tax assets in U.S. Federal, State and foreign jurisdictions may not be realized and therefore, a valuation allowance has been established against those tax assets.

For the three months ended March 31, 2018, the Company recorded income tax expense of $3 million on a pre-tax loss of $1,107 million, resulting in an effective tax rate that was lower than the U.S. statutory tax rate. The lower tax rate was primarily due to a lower net tax benefit on the non-cash write-down of assets and investments in Australia and the U.S., and valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses.

For the nine months ended March 31, 2018, the Company recorded income tax expense of $292 million on a pre-tax loss of $797 million, resulting in an effective tax rate that was lower than the U.S. statutory tax rate. The lower tax rate was primarily due to a lower net tax benefit on the non-cash write-down of assets and investments in Australia and the U.S., valuation allowances being recorded against tax benefits in certain foreign jurisdictions with operating losses and the tax charge resulting from the enactment of the Tax Act which caused an increase in income tax expense of $174 million.

The Company’s tax returns are subject to on-going review and examination by various tax authorities. Tax authorities may not agree with the treatment of items reported in our tax returns, and therefore the outcome of tax reviews and examinations can be unpredictable. The Company is currently undergoing tax examinations by the Internal Revenue Service (“IRS”), various U.S. state and foreign jurisdictions. During the fiscal year ended June 30, 2018, the IRS commenced an audit of the Company for the fiscal year ended June 30, 2014. The Company believes it has appropriately accrued for the expected outcome of uncertain tax matters and believes such liabilities represent a reasonable provision for taxes ultimately expected to be paid. However, the Company may need to accrue additional income tax expense and its liability may need to be adjusted as new information becomes known and as these tax examinations continue to progress, or as settlements or litigations occur.

The Company paid gross income taxes of $107 million and $116 million during the nine months ended March 31, 2019 and 2018, respectively, and received tax refunds of $17 million and $6 million, respectively.

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Segment Information

9 Months Ended

Mar. 31, 2019

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 Barron’s Group, which includes Barron’s and MarketWatch, the Company’s suite of professional information products, including Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires and DJX, and its live journalism events. The Company also owns, among other publications, The Australian, The Daily Telegraph, Herald Sun, The Courier Mail and The Advertiser 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 global video advertising marketplace, Wireless Group, operator of talkSPORT, the leading sports radio network in the U.K., and Storyful, a social media content agency.

• Subscription Video Services—The Company’s Subscription Video Services segment provides video sports, entertainment and news services to pay-TV subscribers and other commercial licensees, primarily via cable, satellite and Internet Protocol, or IP, distribution, and consists of (i) its 65% interest in new Foxtel and (ii) Australian News Channel Pty Ltd (“ANC”). The remaining 35% interest in new Foxtel is held by Telstra, an Australian Securities Exchange (“ASX”)-listed telecommunications company. New Foxtel is the largest pay-TV provider in Australia, with over 200 channels covering sports, general entertainment, movies, documentaries, music, children’s programming and news and broadcast rights to live sporting events in Australia including: National Rugby League, Australian Football League, Cricket Australia, the domestic football league, the Australian Rugby Union and various motorsports programming. New Foxtel also operates Kayo Sports, a sports-only streaming service.

ANC operates the SKY NEWS network, Australia’s 24-hour multi-channel, multi-platform news service. ANC channels are distributed throughout Australia and New Zealand and available on Foxtel and Sky Network Television NZ. ANC also owns and operates the international Australia Channel IPTV service and offers content across a variety of digital media platforms, including mobile, podcasts and social media websites.

• Book Publishing—The Book Publishing segment consists of HarperCollins, the second largest consumer book publisher in the world, with operations in 17 countries and particular strengths in general fiction, nonfiction, children’s and religious publishing. HarperCollins owns more than 120 branded publishing imprints, including Harper, William Morrow, HarperCollins Children’s Books, Avon, Harlequin and Christian publishers Zondervan and Thomas Nelson, and publishes works by well-known authors such as Harper Lee, Chip and Joanna Gaines, Rick Warren, Sarah Young and Agatha Christie and popular titles such as The Hobbit, Goodnight Moon, To Kill a Mockingbird, Jesus Calling and Hillbilly Elegy.

• Digital Real Estate Services—The Digital Real Estate Services segment consists of the Company’s 61.6% interest in REA Group and 80% interest in Move. The remaining 20% interest in Move is held by REA Group. REA Group is a market-leading digital media business specializing in property and is listed on the ASX (ASX: REA). REA Group advertises property and property-related services on its websites and mobile applications across Australia and Asia, including Australia’s leading residential and commercial property websites, realestate.com.au and realcommercial.com.au, and property portals in Asia. In addition, REA Group provides property-related data to the financial sector and financial services through an end-to-end digital property search and financing experience and a mortgage broking offering.

Move is a leading provider of 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 ConnectionsSM Plus and AdvantageSM Pro products as well as its Opcity performance-based product. Move also offers a number of professional software and services products, including Top Producer®, FiveStreet® and ListHubTM.

• Other—The Other segment consists primarily of general corporate overhead expenses, the corporate Strategy Group and costs related to the U.K. Newspaper Matters. The Company’s Strategy Group identifies new products and services across its businesses to increase revenues and profitability and targets and assesses 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 of affiliates, interest (expense) income, net, other, net and income tax (expense) benefit. Segment EBITDA may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what items should be included in the calculation of Segment EBITDA.

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

Segment information is summarized as follows:

	For the three months ended						For the nine months ended
	March 31,						March 31,
	2019			2018			2019			2018
	(in millions)
Revenues:
News and Information Services	$	1,224		$	1,286		$	3,729		$	3,825
Subscription Video Services		539			129			1,666			394
Book Publishing		421			398			1,335			1,268
Digital Real Estate Services		272			279			876			842
Other		1			1			2			2
Total revenues	$	2,457		$	2,093		$	7,608		$	6,331
Segment EBITDA:
News and Information Services	$	73		$	87		$	309		$	302
Subscription Video Services		98			16			295			76
Book Publishing		53			41			209			167
Digital Real Estate Services		74			88			300			302
Other		(51	)		(51	)		(138	)		(90	)
Depreciation and amortization		(168	)		(100	)		(494	)		(297	)
Impairment and restructuring charges		(34	)		(246	)		(71	)		(273	)
Equity losses of affiliates		(4	)		(974	)		(13	)		(1,002	)
Interest (expense) income, net		(14	)		2			(45	)		9
Other, net		3			30			30			9
Income (loss) before income tax expense		30			(1,107	)		382			(797	)
Income tax expense		(7	)		(3	)		(112	)		(292	)
Net income (loss)	$	23		$	(1,110	)	$	270		$	(1,089	)

	As of March 31, 2019		As of June 30, 2018
	(in millions)
Total assets:
News and Information Services	$	5,840	$	6,039
Subscription Video Services		4,495		4,738
Book Publishing		2,073		1,898
Digital Real Estate Services		2,209		2,171
Other(a)		1,094		1,107
Investments		347		393
Total assets	$	16,058	$	16,346

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

	As of March 31, 2019		As of June 30, 2018
	(in millions)
Goodwill and intangible assets, net:
News and Information Services	$	2,695	$	2,730
Subscription Video Services		2,662		2,853
Book Publishing		778		804
Digital Real Estate Services		1,602		1,502
Total Goodwill and intangible assets, net	$	7,737	$	7,889

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Additional Financial Information

9 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Additional Financial Information

NOTE 14. ADDITIONAL FINANCIAL INFORMATION

Receivables, net

Receivables are presented net of an allowance for doubtful accounts, which is an estimate of amounts that may not be collectible. The allowance for doubtful accounts is estimated based on historical experience, receivable aging, current economic trends and specific identification of certain receivables that are at risk of not being collected.

Receivables, net consist of:

	As of March 31, 2019			As of June 30, 2018
	(in millions)
Receivables	$	1,681		$	1,829
Allowance for sales returns(a)		—			(171	)
Allowance for doubtful accounts		(50	)		(46	)
Receivables, net	$	1,631		$	1,612

(a) As a result of the adoption of the new revenue recognition standard during the first quarter of fiscal 2019, the Company reclassified the allowance for sales returns from Receivables, net to Other current liabilities. See Note 2—Revenues.

Other Non-Current Assets

The following table sets forth the components of Other non-current assets:

	As of March 31, 2019		As of June 30, 2018
	(in millions)
Royalty advances to authors	$	340	$	312
Retirement benefit assets		155		135
Inventory(a)		123		143
Other		295		241
Total Other non-current assets	$	913	$	831

(a) Primarily consists of the non-current portion of programming rights.

Other Current Liabilities

The following table sets forth the components of Other current liabilities:

	As of		As of
	March 31, 2019		June 30, 2018
	(in millions)
Royalties and commissions payable	$	241	$	187
Allowance for sales returns		198		—
Current tax payable		15		17
Other		291		168
Total Other current liabilities	$	745	$	372

Other, net

The following table sets forth the components of Other, net:

	For the three months ended						For the nine months ended
	March 31,						March 31,
	2019			2018			2019			2018
	(in millions)
Dividends received from equity security investments	$	1		$	—		$	24		$	—
Remeasurement of equity securities(a)		6			—			(23	)		—
Write-down of available-for-sale securities(b)		—			(3	)		—			(33	)
Gain on sale of Australian property		2			—			14			—
Gain on sale of SEEKAsia(c)		—			32			—			32
Other, net(d)		(6	)		1			15			10
Total Other, net	$	3		$	30		$	30		$	9

(a) As a result of the adoption of ASU 2016-01 during the first quarter of fiscal 2019, the Company has included the impact from the remeasurement of equity securities in Other, net in the Statement of Operations for the three and nine months ended March 31, 2019. During the three and nine months ended March 31, 2018, the impact from the remeasurement of equity securities was included in Accumulated other comprehensive loss in the Balance Sheets.

(b) For the three and nine months ended March 31, 2018, the write-downs of available-for-sale securities were reclassified out of Accumulated other comprehensive loss and included in Other, net in the Statements of Operations.

(c) During the three months ended March 31, 2018, the Company sold its investment in SEEKAsia for $122 million in cash and recognized a $32 million gain in Other, net in the Statements of Operations.

(d) As a result of the adoption of ASU 2017-07 during the first quarter of fiscal 2019, the Company has included the other non-service cost components of net periodic benefit cost (income) in Other, net in the Statements of Operations for the three and nine months ended March 31, 2019 and 2018.

Supplemental Cash Flow Information

The following table sets forth the Company’s cash paid for taxes and interest:

	For the nine months ended March 31,
	2019		2018
	(in millions)
Cash paid for interest	$	67	$	8
Cash paid for taxes		107		116

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Description of Business and Basis of Presentation (Policies)

9 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements of the Company, which are referred to herein as the “Consolidated Financial Statements,” have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments consisting only of normal recurring adjustments necessary for a fair presentation have been reflected in these Consolidated Financial Statements. Operating results for the interim period presented are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2019. The preparation of the Company’s Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts that are reported in the Consolidated Financial Statements and accompanying disclosures. Actual results could differ from those estimates.

Intercompany transactions and balances have been eliminated. Equity investments in which the Company exercises significant influence but does not exercise control and is not the primary beneficiary are accounted for using the equity method. In accordance with ASU 2016-01, 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, 2018 as filed with the Securities and Exchange Commission (the “SEC”) on August 15, 2018 (the “2018 Form 10-K”).

Certain reclassifications have been made to the prior period consolidated financial statements to conform to the current year presentation. Specifically, in the first quarter of fiscal 2019, the Company reclassified Conference Sponsorship revenues at its Dow Jones reporting unit and Merchandising revenues at News America Marketing from Other revenues to Advertising revenues as the Company believes that the reclassification more accurately reflects the nature of those revenue streams. These revenue reclassifications totaled $15 million and $42 million for the three and nine months ended March 31, 2018, respectively, and $57 million for the fiscal year ended June 30, 2018.

The Company’s fiscal year ends on the Sunday closest to June 30. Fiscal 2019 and fiscal 2018 include 52 weeks. All references to the three and nine months ended March 31, 2019 and 2018 relate to the three and nine months ended March 31, 2019 and April 1, 2018, respectively. For convenience purposes, the Company continues to date its Consolidated Financial Statements as of March 31.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

Adopted

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which amended the FASB Accounting Standards Codification by creating Topic 606, “Revenue from Contracts with Customers” (“ASC 606”). ASU 2014-09 removes inconsistencies and differences in revenue recognition requirements between GAAP and International Financial Reporting Standards and requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company adopted ASU 2014-09 on a modified retrospective basis as of July 1, 2018. As a result, the Company recorded a $20 million decrease to Accumulated deficit as of July 1, 2018 to reflect the cumulative impact of its adoption of ASC 606. See Note 2—Revenues.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The amendments in ASU 2016-01 address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 is effective for the Company for annual and interim reporting periods beginning July 1, 2018. The Company adopted the guidance on a cumulative-effect basis for its investments with readily determinable fair values effective July 1, 2018. In accordance with ASU 2016-01, the cumulative net unrealized gains (losses) for these investments contained within Accumulated other comprehensive loss were reclassified through Accumulated deficit as of July 1, 2018, and the Company recorded a $22 million decrease to Accumulated deficit. The Company has elected to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. There was no financial statement impact upon adoption for these investments. See Note 5—Investments and Note 14—Additional Financial Information.

In March 2017, the FASB issued ASU 2017-07, “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”). The amendments in ASU 2017-07 require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic benefit cost (income) as defined in paragraphs 715-30-35-4 and 715-60-35-9 are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. ASU 2017-07 allows for a practical expedient that permits a company to use the amounts disclosed in its pension and other postretirement benefit plans note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. ASU 2017-07 is effective for the Company for annual and interim reporting periods beginning July 1, 2018. The Company adopted ASU 2017-07 utilizing the practical expedient. The other components of net periodic benefit cost (income) are included in Other, net in the Statements of Operations. The adoption did not have a material impact on the Company’s Consolidated Financial Statements.

In June 2018, the FASB issued ASU 2018-07, “Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting” (“ASU 2018-07”). The amendments in ASU 2018-07 expanded the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. As permitted by ASU 2018-07, the Company early-adopted this standard and the adoption did not have a material impact on the Company’s Consolidated Financial Statements.

In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)” (“ASU 2018-15”). The amendments in ASU 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). As permitted by ASU 2018-15, the Company early-adopted this standard on a prospective basis. The adoption did not have a material impact on the Company’s Consolidated Financial Statements.

Issued

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). The amendments in ASU 2016-02 require lessees to recognize all leases on the balance sheet by recording a right-of-use asset and a lease liability, and lessor accounting has been updated to align with the new requirements for lessees. The new standard also provides changes to the existing sale-leaseback guidance. ASU 2016-02 is effective for the Company for annual and interim reporting periods beginning July 1, 2019. The FASB has also issued additional standards which provide additional clarification and implementation guidance on the previously issued ASU 2016-02 and have the same effective date as the original standard. The Company plans to apply this guidance on a modified retrospective basis at the beginning of the period of adoption through a cumulative-effect adjustment to retained earnings, with no restatement of prior periods. The Company has selected its lease management system and is in the process of completing its inventory of its lease contracts and implementing processes and controls to enable the preparation of the required financial information for this standard. The Company is currently evaluating the impact ASU 2016-02 will have on its consolidated financial statements.

In June 2016, the FASB issued 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. ASU 2016-13 is effective for the Company for annual and interim reporting periods beginning July 1, 2020. The Company is currently evaluating the impact ASU 2016-13 will have on its consolidated financial statements.

In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”). The amendments in ASU 2017-12 more closely align the results of cash flow and fair value hedge accounting with risk management activities through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements. The amendments address specific limitations in current GAAP by expanding hedge accounting for both nonfinancial and financial risk components and by refining the measurement of hedge results to better reflect an entity’s hedging strategies. ASU 2017-12 is effective for the Company for annual and interim reporting periods beginning July 1, 2019. The Company is currently evaluating the impact ASU 2017-12 will have on its consolidated financial statements.

In February 2018, the FASB issued ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”). The amendments in ASU 2018-02 provide a reclassification from Accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act (as defined below). See Note 12— Income Taxes. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statement users. ASU 2018-02 is effective for the Company for annual and interim reporting periods beginning July 1, 2019. The Company is currently evaluating the impact ASU 2018-02 will have on its consolidated financial statements.

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. ASU 2018-13 is effective for the Company for annual and interim reporting periods beginning July 1, 2020. The Company is currently evaluating the impact ASU 2018-13 will have on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans” (“ASU 2018-14”). The amendments in ASU 2018-14 modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. ASU 2018-14 eliminates the disclosures for amounts in Accumulated other comprehensive loss expected to be recognized as a component of net periodic benefit cost (income) and the effect of a percentage change in health care cost trend rate. ASU 2018-14 is effective for the Company for annual and interim reporting periods beginning July 1, 2021. The Company will comply with the new disclosure requirements in ASU 2018-14 beginning with its Annual Report on Form 10-K for the fiscal year ending June 30, 2019.  

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Revenues (Tables)

9 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Summary of Cumulative Effect and Impact of Adoption of ASC 606 on Consolidated Statement of Operations and Consolidated Balance Sheets

The Company’s revenues and expenses for the three and nine months ended March 31, 2019 and the opening balance sheet as of July 1, 2018 under both ASC 606 and the prior standard, ASC 605 are as follows:

	For the three months ended March 31, 2019
	ASC 605			Effects of Adoption			ASC 606
	(in millions)
Revenue:
Circulation and subscription	$	1,019		$	6		$	1,025
Advertising		673			(3	)		670
Consumer		420			(17	)		403
Real estate		218			—			218
Other		144			(3	)		141
Total Revenues	$	2,474		$	(17	)	$	2,457
Operating expenses and Selling, general and administrative	$	(2,228	)	$	18		$	(2,210	)
Net income	$	22		$	1		$	23

	For the nine months ended March 31, 2019
	ASC 605			Effects of Adoption			ASC 606
	(in millions)
Revenue:
Circulation and subscription	$	3,076		$	12		$	3,088
Advertising		2,055			(3	)		2,052
Consumer		1,328			(47	)		1,281
Real estate		693			—			693
Other		510			(16	)		494
Total Revenues	$	7,662		$	(54	)	$	7,608
Operating expenses and Selling, general and administrative	$	(6,706	)	$	73		$	(6,633	)
Net income	$	256		$	14		$	270

	As of July 1, 2018
	ASC 605			Effects of Adoption			ASC 606
	(in millions)
Assets:
Receivables, net	$	1,612		$	200		$	1,812
Other current assets		372			(4	)		368
Deferred income tax assets		279			2			281
Other non-current assets		831			92			923
Liabilities and Equity:
Deferred revenue	$	516		$	(6	)	$	510
Other current liabilities		372			194			566
Deferred income tax liabilities		389			11			400
Other non-current liabilities		430			71			501
Accumulated deficit		(2,163	)		20			(2,143	)

Summary of Disaggregated Revenue by Type and Segment

Disaggregated revenue

The following table presents revenue by type and segment for the three and nine months ended March 31, 2019:

	For the three months ended March 31, 2019
	News and Information Services		Subscription Video Services		Book Publishing		Digital Real Estate Services		Other		Total Revenues
	(in millions)
Revenues:
Circulation and subscription	$	538	$	474	$	—	$	12	$	1	$	1,025
Advertising		593		50		—		27		—		670
Consumer		—		—		403		—		—		403
Real estate		—		—		—		218		—		218
Other		93		15		18		15		—		141
Total Revenues	$	1,224	$	539	$	421	$	272	$	1	$	2,457

	For the nine months ended March 31, 2019
	News and Information Services		Subscription Video Services		Book Publishing		Digital Real Estate Services		Other		Total Revenues
	(in millions)
Revenues:
Circulation and subscription	$	1,593	$	1,455	$	—	$	39	$	1	$	3,088
Advertising		1,801		162		—		89		—		2,052
Consumer		—		—		1,281		—		—		1,281
Real estate		—		—		—		693		—		693
Other		335		49		54		55		1		494
Total Revenues	$	3,729	$	1,666	$	1,335	$	876	$	2	$	7,608

Summary of Deferred Revenue from Contracts with Customers

The following table presents changes in the deferred revenue balance for the three and nine months ended March 31, 2019:

	For the three months ended March 31, 2019			For the nine months ended March 31, 2019
	(in millions)			(in millions)
Balance, beginning of period	$	430		$	510
Deferral of revenue		934			2,271
Recognition of deferred revenue(a)		(883	)		(2,300	)
Other		(21	)		(21	)
Balance, end of period	$	460		$	460

(a) For the three and nine months ended March 31, 2019, the Company recognized approximately $241 million and $461 million, respectively, of revenue which was included in the opening deferred revenue balance for each of the respective periods.

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Acquisitions, Disposals and Other Transactions (Tables) - New Foxtel [Member]

9 Months Ended

Mar. 31, 2019

Schedule of Total Aggregate Purchase Price Transaction Value/ Fair Value of Acquisition

The total aggregate purchase price associated with the Transaction at the completion date is set forth below (in millions):

Consideration transferred(a)	$	331
Fair value of News Corp previously held equity interest in Foxtel		631
Fair value of noncontrolling interest(b)		578
Fair value of net assets	$	1,540

a) Primarily represents the fair value of 35% of FOX SPORTS Australia exchanged as consideration in the Transaction and has been included in noncontrolling interest.

b) Primarily represents the fair value of 35% of Foxtel, which includes the impact of certain market participant synergies.

Schedule of Fair Value of Assets Acquired and Liabilities Assumed

Under the acquisition method of accounting, the aggregate purchase price, based on a valuation of 100% of Foxtel, was allocated to net tangible and intangible assets based upon their fair value as of the date of completion of the Transaction. The excess of the aggregate purchase price over the fair value of the net tangible and intangible assets acquired was recorded as goodwill. The allocation is as follows (in millions):

Assets acquired:
Cash	$	78
Current assets		492
Property, plant and equipment		967
Intangible assets		861
Goodwill		1,559
Other non-current assets		268
Total assets acquired	$	4,225
Liabilities assumed:
Current liabilities	$	611
Long-term borrowings		1,751
Other non-current liabilities		323
Total liabilities assumed		2,685
Net assets acquired	$	1,540

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Impairment and Restructuring Charges (Tables)

9 Months Ended

Mar. 31, 2019

Restructuring and Related Activities [Abstract]

Schedule of Changes in Restructuring Program Liabilities

Changes in restructuring program liabilities were as follows:

	For the three months ended March 31,
	2019											2018
	One time employee termination benefits			Facility related costs		Other costs			Total			One time employee termination benefits			Facility related costs		Other costs		Total
	(in millions)
Balance, beginning of period	$	20		$	2	$	11		$	33		$	22		$	4	$	10	$	36
Additions		25			—		—			25			21			—		—		21
Payments		(17	)		—		(1	)		(18	)		(22	)		—		—		(22	)
Other		—			—		—			—			3			—		—		3
Balance, end of period	$	28		$	2	$	10		$	40		$	24		$	4	$	10	$	38

	For the nine months ended March 31,
	2019											2018
	One time employee termination benefits			Facility related costs		Other costs			Total			One time employee termination benefits			Facility related costs			Other costs			Total
	(in millions)
Balance, beginning of period	$	29		$	2	$	11		$	42		$	33		$	6		$	10		$	49
Additions		62			—		—			62			47			—			1			48
Payments		(61	)		—		(2	)		(63	)		(60	)		(1	)		(1	)		(62	)
Other		(2	)		—		1			(1	)		4			(1	)		—			3
Balance, end of period	$	28		$	2	$	10		$	40		$	24		$	4		$	10		$	38

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Investments (Tables)

9 Months Ended

Mar. 31, 2019

Investments Schedule [Abstract]

Schedule of Investments

The Company’s investments were comprised of the following:

	Ownership Percentage as of March 31, 2019		As of March 31, 2019		As of June 30, 2018
			(in millions)
Equity method investments(a)		various	$	160	$	173
Equity securities(b)		various		187		220
Total Investments			$	347	$	393

(a) Equity method investments are primarily comprised of new Foxtel’s investment in Nickelodeon Australia Joint Venture and Elara Technologies Pte. Ltd., which operates PropTiger.com, Makaan.com. and Housing.com.

(b) Equity securities are primarily comprised of certain investments in China and the Company’s investment in HT&E Limited, which operates a portfolio of Australian radio and outdoor media assets.

Schedule of Total Gains and Losses on Equity Securities

The Company has equity securities with quoted prices in active markets as well as equity securities without readily determinable fair market values. Equity securities without readily determinable fair market values are valued at cost, less any impairment, plus or minus changes in fair value resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. The components comprising total gains and losses on equity securities are set forth below:

	For the three months ended March 31,				For the nine months ended March 31,
	2019		2018		2019			2018
	(in millions)				(in millions)
Total gains (losses) recognized on equity securities	$	6	$	30	$	(23	)	$	13
Less: Net gains recognized on equity securities sold or impaired		—		29		—			5
Unrealized gains (losses) recognized on equity securities held at end of period	$	6	$	1	$	(23	)	$	8

Schedule of Losses of Equity Affiliates

The Company’s share of the losses of its equity affiliates was as follows:

	For the three months ended March 31,						For the nine months ended March 31,
	2019			2018			2019			2018
	(in millions)						(in millions)
Foxtel(a)	$	—		$	(970	)	$	—		$	(974	)
Other equity affiliates, net(b)		(4	)		(4	)		(13	)		(28	)
Total Equity losses of affiliates	$	(4	)	$	(974	)	$	(13	)	$	(1,002	)

(a) Following completion of the Transaction in April 2018, News Corp ceased accounting for Foxtel as an equity method investment and began consolidating its results in the fourth quarter of fiscal 2018. See Note 3— Acquisitions, Disposals and Other Transactions.

During the three and nine months ended March 31, 2018, the Company recognized a $957 million non-cash write-down of the carrying value of its investment in Foxtel. In the third quarter of fiscal 2018, the Company assessed the long-term prospects for Foxtel, on both a stand-alone and combined basis. As a result of lower-than-expected revenues from certain products and broadcast subscribers at Foxtel, the Company revised its outlook for Foxtel, which resulted in a reduction in expected future cash flows. Based on the revised projections, the Company concluded that the fair value of its investment in Foxtel declined below its carrying value. The assumptions utilized in the income approach valuation method were a discount rate of 10.25% and a long-term growth rate of 2.0%. The write-down was reflected in Equity losses of affiliates in the Statements of Operations for the three and nine months ended March 31, 2018.

In accordance with ASC 350, the Company amortized $17 million and $49 million related to excess cost over the Company’s proportionate share of its investment’s underlying net assets allocated to finite-lived intangible assets during the three and nine months ended March 31, 2018, respectively. Such amortization was reflected in Equity losses of affiliates in the Statement of Operations.

(b) Other equity affiliates, net for the three and nine months ended March 31, 2019 include losses primarily from the Company’s interest in Elara. During the nine months ended March 31, 2018, the Company recognized $13 million in non-cash write-downs of certain equity method investments’ carrying values. The write-downs were reflected in Equity losses of affiliates in the Statements of Operations for the nine months ended March 31, 2018.

Schedule of Summarized Financial Information

Summarized financial information for Foxtel, presented in accordance with U.S. GAAP, was as follows:

	For the nine months ended March 31,
	2018
	(in millions)
Revenues	$	1,818
Operating income(a)		155
Net income		64

(a) Includes Depreciation and amortization of $187 million for the nine months ended March 31, 2018. Operating income before depreciation and amortization was $342 million for the nine months ended March 31, 2018.

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Borrowings (Tables)

9 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Schedule of Borrowings

The Company’s total borrowings consist of the following:

	Interest rate at March 31, 2019			Due date at March 31, 2019		As of March 31, 2019			As of June 30, 2018
						(in millions)
Foxtel Group
Credit facility 2013(a)(b)		3.55	%		Apr 7, 2019	$	—		$	222
Credit facility 2014 — tranche 1(a)		3.55	%		May 30, 2019		142			148
Credit facility 2014 — tranche 2(a)		3.65	%		Jan 31, 2020		142			148
Credit facility 2015(a)		3.70	%		Jul 31, 2020		284			296
Credit facility 2016(a)(c)		4.25	%		Sept 11, 2021		53			108
Working capital facility 2017(a)(c)		3.85	%		Jul 3, 2020		57			59
US private placement 2009 — tranche 3		6.20	%		Sept 24, 2019		74			75
US private placement 2012 — USD portion — tranche 1(d)		3.68	%		Jul 25, 2019		150			150
US private placement 2012 — USD portion — tranche 2(d)		4.27	%		Jul 25, 2022		198			196
US private placement 2012 — USD portion — tranche 3(d)		4.42	%		Jul 25, 2024		148			146
US private placement 2012 — AUD portion		7.04	%		Jul 25, 2022		78			83
REA Group
Credit facility 2016 — tranche 2(e)(f)		—			Dec 31, 2018		—			89
Credit facility 2016 — tranche 3(e)(f)		3.01	%		Dec 31, 2019		170			178
Credit facility 2018(e)		2.71	%		Apr 27, 2021		50			54
Total borrowings							1,546			1,952
Less: current portion(g)							(678	)		(462	)
Long-term borrowings						$	868		$	1,490

(a) Borrowings under these facilities bear interest at a floating rate of Australian BBSY plus an applicable margin of between 1.10% and 2.70% per annum payable quarterly.

(b) During the three and nine months ended March 31, 2019, the Foxtel Group repaid its A$300 million (approximately $216 million) facility maturing in April 2019 using A$300 million of shareholder loans provided by the Company.

(c)	As of March 31, 2019, the Foxtel Group has undrawn commitments of $241 million under these facilities for which it pays a commitment fee in the range of 40% to 45% of the applicable margin.
(d)	The carrying value of the borrowings include any fair value adjustments related to the Company’s fair value hedges. See Note 9 —Financial Instruments and Fair Value Measurements.

(e) Borrowings under these facilities bear interest at a floating rate of the Australian BBSY plus a margin of between 0.85% and 1.45% depending on REA Group’s net leverage ratio. As of March 31, 2019, REA Group was paying a margin of between 0.85% and 1.05%.

(f) During the nine months ended March 31, 2019, REA Group repaid A$120 million (approximately $87 million) of the A$480 million revolving loan facility. Remaining borrowings under the facility of A$240 million (approximately $170 million) will mature in fiscal 2020.

(g) The Company classifies the current portion of long term debt as non-current liabilities on the Balance Sheets when it has the intent and ability to refinance the obligation on a long-term basis, in accordance with ASC 470-50 “Debt.”

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Equity (Tables)

9 Months Ended

Mar. 31, 2019

Stockholders' Equity Note [Abstract]

Summary of Changes in Equity

The following tables summarize changes in equity for the three and nine months ended March 31, 2019 and 2018:

	For the three months ended March 31, 2019
															Accumulated
	Class A				Class B				Additional						Other			Total News
	Common Stock				Common Stock				Paid-in			Accumulated			Comprehensive			Corporation			Noncontrolling			Total
	Shares		Amount		Shares		Amount		Capital			Deficit			Loss			Equity			Interests			Equity
	(in millions)
Balance, December 31, 2018		385	$	4		200	$	2	$	12,271		$	(1,937	)	$	(1,076	)	$	9,264		$	1,170		$	10,434
Net income		—		—		—		—		—			10			—			10			13			23
Other comprehensive income		—		—		—		—		—			—			57			57			10			67
Dividends		—		—		—		—		(58	)		—			—			(58	)		(20	)		(78	)
Other		—		—		—		—		16			—			—			16			(4	)		12
Balance, March 31, 2019		385	$	4		200	$	2	$	12,229		$	(1,927	)	$	(1,019	)	$	9,289		$	1,169		$	10,458

	For the three months ended March 31, 2018
															Accumulated
	Class A				Class B				Additional						Other			Total News
	Common Stock				Common Stock				Paid-in			Accumulated			Comprehensive			Corporation			Noncontrolling			Total
	Shares		Amount		Shares		Amount		Capital			Deficit			Loss			Equity			Interests			Equity
	(in millions)
Balance, December 31, 2017		383	$	4		200	$	2	$	12,350		$	(664	)	$	(832	)	$	10,860		$	298		$	11,158
Net (loss) income		—		—		—		—		—			(1,128	)		—			(1,128	)		18			(1,110	)
Other comprehensive income (loss)		—		—		—		—		—			—			3			3			(2	)		1
Dividends		—		—		—		—		(59	)		—			—			(59	)		(19	)		(78	)
Other		—		—		—		—		19			—			—			19			1			20
Balance, March 31, 2018		383	$	4		200	$	2	$	12,310		$	(1,792	)	$	(829	)	$	9,695		$	296		$	9,991

	For the nine months ended March 31, 2019
	Class A				Class B				Additional						Accumulated Other			Total News
	Common Stock				Common Stock				Paid-in			Accumulated			Comprehensive			Corporation			Noncontrolling			Total
	Shares		Amount		Shares		Amount		Capital			Deficit			Loss			Equity			Interests			Equity
	(in millions)
Balance, June 30, 2018		383	$	4		200	$	2	$	12,322		$	(2,163	)	$	(874	)	$	9,291		$	1,186		$	10,477
Cumulative impact from adoption of new accounting standards		—		—		—		—		—			32			(22	)		10			10			20
Net income		—		—		—		—		—			206			—			206			64			270
Other comprehensive loss		—		—		—		—		—			—			(124	)		(124	)		(46	)		(170	)
Dividends		—		—		—		—		(117	)		—			—			(117	)		(43	)		(160	)
Other		2		—		—		—		24			(2	)		1			23			(2	)		21
Balance, March 31, 2019		385	$	4		200	$	2	$	12,229		$	(1,927	)	$	(1,019	)	$	9,289		$	1,169		$	10,458

	For the nine months ended March 31, 2018
															Accumulated
	Class A				Class B				Additional						Other			Total News
	Common Stock				Common Stock				Paid-in			Accumulated			Comprehensive			Corporation			Noncontrolling			Total
	Shares		Amount		Shares		Amount		Capital			Deficit			Loss			Equity			Interests			Equity
	(in millions)
Balance, June 30, 2017		382	$	4		200	$	2	$	12,395		$	(648	)	$	(964	)	$	10,789		$	284		$	11,073
Net (loss) income		—		—		—		—		—			(1,143	)		—			(1,143	)		54			(1,089	)
Other comprehensive income		—		—		—		—		—			—			135			135			1			136
Dividends		—		—		—		—		(118	)		—			—			(118	)		(40	)		(158	)
Other		1		—		—		—		33			(1	)		—			32			(3	)		29
Balance, March 31, 2018		383	$	4		200	$	2	$	12,310		$	(1,792	)	$	(829	)	$	9,695		$	296		$	9,991

Summary of dividends declared per share

The following table sets forth the cash dividend declared per share for the three and nine months ended March 31, 2019 and 2018:

	For the three months ended March 31,				For the nine months ended March 31,
	2019		2018		2019		2018
Cash dividend declared per share	$	0.10	$	0.10	$	0.20	$	0.20

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Financial Instruments and Fair Value Measurements (Tables)

9 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Summary of Assets and Liabilities Measured At Fair Value on Recurring Basis

The following table summarizes those assets and liabilities measured at fair value on a recurring basis:

	As of March 31, 2019								As of June 30, 2018
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(in millions)
Assets:
Foreign currency derivatives - cash flow hedges	$	—	$	3	$	—	$	3	$	—	$	3	$	—	$	3
Cross currency interest rate derivatives - fair value hedges		—		27		—		27		—		29		—		29
Cross currency interest rate derivatives - economic hedges		—		12		—		12		—		10		—		10
Cross currency interest rate derivatives - cash flow hedges		—		107		—		107		—		76		—		76
Equity securities(a)		72		—		115		187		93		—		—		93
Total assets	$	72	$	149	$	115	$	336	$	93	$	118	$	—	$	211
Liabilities:
Interest rate derivatives - cash flow hedges	$	—	$	19	$	—	$	19	$	—	$	20	$	—	$	20
Mandatorily redeemable noncontrolling interests		—		—		12		12		—		—		12		12
Cross currency interest rate derivatives - cash flow hedges		—		15		—		15		—		12		—		12
Total liabilities	$	—	$	34	$	12	$	46	$	—	$	32	$	12	$	44

(a) See Note 5 —Investments.

Summary of Equity Securities Classified as Level 3

A rollforward of the Company’s equity securities classified as Level 3 is as follows:

	For the nine months ended March 31, 2019
	(in millions)
Balance - beginning of period(a)	$	127
Purchases		7
Sales		(10	)
Foreign exchange and other		(9	)
Balance - end of period	$	115

(a) Includes impact from the adoption of ASU 2016-01. See Note 1—Description of Business and Basis of Presentation.

Summary of Mandatorily Redeemable Noncontrolling Interest Liabilities Classified Level 3

A rollforward of the Company’s mandatorily redeemable noncontrolling interest liabilities classified as Level 3 is as follows:

	For the nine months ended March 31,
	2019			2018
	(in millions)
Balance - beginning of period	$	12		$	79
Additions		—			12
Accretion		1			2
Foreign exchange movements		(1	)		(1	)
Balance - end of period	$	12		$	92

Summary of Hedges Classified as Current or Non-Current in Balance Sheets Based on Maturity Dates

Hedges are classified as current or non-current in the Balance Sheets based on their maturity dates. Refer to the table below for further details:

			Fair value as of
	Balance Sheet Location		March 31, 2019			June 30, 2018
			(in millions)
Foreign currency derivatives - cash flow hedges		Other current assets	$	3		$	3
Cross currency interest rate derivatives - fair value hedges		Other current assets		8			—
Cross currency interest rate derivatives - economic hedges		Other current assets		12			—
Cross currency interest rate derivatives - cash flow hedges		Other current assets		32			—
Cross currency interest rate derivatives - fair value hedges		Other non-current assets		19			29
Cross currency interest rate derivatives - cash flow hedges		Other non-current assets		75			76
Cross currency interest rate derivatives - economic hedges		Other non-current assets		—			10
Interest rate derivatives - cash flow hedges		Other current liabilities		(3	)		—
Interest rate derivatives - cash flow hedges		Other non-current liabilities		(16	)		(20	)
Cross currency interest rate derivatives - cash flow hedges		Other non-current liabilities		(15	)		(12	)

Financial Instruments and Fair Value Measurements - Summary of Derivative Instruments Designated as Cash Flow Hedges

The following tables present the impact that changes in the fair values of derivatives designated as cash flow hedges had on Accumulated other comprehensive loss and the Statement of Operations during the three and nine months ended March 31, 2019. The Company did not have any such hedges in the three and nine months ended March 31, 2018.

	(Gain) loss recognized in Accumulated Other Comprehensive Loss for the three months ended				Gain (loss) reclassified from Accumulated Other Comprehensive Loss for the three months ended					Income statement
	March 31,				March 31,					location
	2019		2018		2019			2018
	(in millions)
Derivative instruments designated as cash flow hedges:
Foreign currency derivatives - cash flow hedges	$	2	$	—	$	—		$	—	Operating expenses
Cross currency interest rate derivatives - cash flow hedges		9		—		(7	)		—	Interest (expense) income, net
Interest rate derivatives - cash flow hedges		4		—		(2	)		—	Interest (expense) income, net
Total	$	15	$	—	$	(9	)	$	—

	(Gain) loss recognized in Accumulated Other Comprehensive Loss for the nine months ended					Gain (loss) reclassified from Accumulated Other Comprehensive Loss for the nine months ended					Income statement
	March 31,					March 31,					location
	2019			2018		2019			2018
	(in millions)
Derivative instruments designated as cash flow hedges:
Foreign currency derivatives - cash flow hedges	$	(2	)	$	—	$	2		$	—	Operating expenses
Cross currency interest rate derivatives - cash flow hedges		(7	)		—		5			—	Interest (expense) income, net
Interest rate derivatives - cash flow hedges		6			—		(6	)		—	Interest (expense) income, net
Total	$	(3	)	$	—	$	1		$	—

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Earnings (Loss) Per Share (Tables)

9 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings (Loss) per Share

The following tables set forth the computation of basic and diluted earnings (loss) per share under ASC 260, “Earnings per Share”:

	For the three months ended March 31,						For the nine months ended March 31,
	2019			2018			2019			2018
	(in millions, except per share amounts)
Net income (loss)	$	23		$	(1,110	)	$	270		$	(1,089	)
Less: Net income attributable to noncontrolling interests		(13	)		(18	)		(64	)		(54	)
Less: Redeemable preferred stock dividends(a)		—			—			—			(1	)
Net income (loss) available to News Corporation stockholders	$	10		$	(1,128	)	$	206		$	(1,144	)
Weighted-average number of shares of common stock outstanding - basic		585.0			582.8			584.6			582.6
Dilutive effect of equity awards(b)		3.8			—			2.6			—
Weighted-average number of shares of common stock outstanding - diluted		588.8			582.8			587.2			582.6
Net income (loss) available to News Corporation stockholders per share - basic and diluted	$	0.02		$	(1.94	)	$	0.35		$	(1.96	)

(a) In connection with the Separation, 21st Century Fox sold 4,000 shares of cumulative redeemable preferred stock with a par value of $5,000 per share of a newly formed U.S. subsidiary of the Company. The preferred stock paid dividends at a rate of 9.5% per annum, payable quarterly, in arrears. The preferred stock was callable by the Company at any time after the fifth year and puttable at the option of the holder after 10 years. In July 2018, the Company exercised its call option and redeemed 100% of the outstanding redeemable preferred stock.

(b) The dilutive impact of the Company’s performance stock units, restricted stock units and stock options has been excluded from the calculation of diluted loss per share for the three and nine months ended March 31, 2018 because their inclusion would have an antidilutive effect on the net loss per share.

XML

Segment Information (Tables)

9 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Reconciliation of Revenue and Segment EBITDA from Segments to Consolidated

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

Segment information is summarized as follows:

	For the three months ended						For the nine months ended
	March 31,						March 31,
	2019			2018			2019			2018
	(in millions)
Revenues:
News and Information Services	$	1,224		$	1,286		$	3,729		$	3,825
Subscription Video Services		539			129			1,666			394
Book Publishing		421			398			1,335			1,268
Digital Real Estate Services		272			279			876			842
Other		1			1			2			2
Total revenues	$	2,457		$	2,093		$	7,608		$	6,331
Segment EBITDA:
News and Information Services	$	73		$	87		$	309		$	302
Subscription Video Services		98			16			295			76
Book Publishing		53			41			209			167
Digital Real Estate Services		74			88			300			302
Other		(51	)		(51	)		(138	)		(90	)
Depreciation and amortization		(168	)		(100	)		(494	)		(297	)
Impairment and restructuring charges		(34	)		(246	)		(71	)		(273	)
Equity losses of affiliates		(4	)		(974	)		(13	)		(1,002	)
Interest (expense) income, net		(14	)		2			(45	)		9
Other, net		3			30			30			9
Income (loss) before income tax expense		30			(1,107	)		382			(797	)
Income tax expense		(7	)		(3	)		(112	)		(292	)
Net income (loss)	$	23		$	(1,110	)	$	270		$	(1,089	)

Reconciliation of Assets from Segments to Consolidated

	As of March 31, 2019		As of June 30, 2018
	(in millions)
Total assets:
News and Information Services	$	5,840	$	6,039
Subscription Video Services		4,495		4,738
Book Publishing		2,073		1,898
Digital Real Estate Services		2,209		2,171
Other(a)		1,094		1,107
Investments		347		393
Total assets	$	16,058	$	16,346

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

Reconciliation of Goodwill and Intangible Assets from Segments to Consolidated

	As of March 31, 2019		As of June 30, 2018
	(in millions)
Goodwill and intangible assets, net:
News and Information Services	$	2,695	$	2,730
Subscription Video Services		2,662		2,853
Book Publishing		778		804
Digital Real Estate Services		1,602		1,502
Total Goodwill and intangible assets, net	$	7,737	$	7,889

XML

Additional Financial Information (Tables)

9 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Components of Receivables, Net

Receivables, net consist of:

	As of March 31, 2019			As of June 30, 2018
	(in millions)
Receivables	$	1,681		$	1,829
Allowance for sales returns(a)		—			(171	)
Allowance for doubtful accounts		(50	)		(46	)
Receivables, net	$	1,631		$	1,612

(a) As a result of the adoption of the new revenue recognition standard during the first quarter of fiscal 2019, the Company reclassified the allowance for sales returns from Receivables, net to Other current liabilities. See Note 2—Revenues.

Components of Other Non-Current Assets

The following table sets forth the components of Other non-current assets:

	As of March 31, 2019		As of June 30, 2018
	(in millions)
Royalty advances to authors	$	340	$	312
Retirement benefit assets		155		135
Inventory(a)		123		143
Other		295		241
Total Other non-current assets	$	913	$	831

(a) Primarily consists of the non-current portion of programming rights.

Components of Other Current Liabilities

The following table sets forth the components of Other current liabilities:

	As of		As of
	March 31, 2019		June 30, 2018
	(in millions)
Royalties and commissions payable	$	241	$	187
Allowance for sales returns		198		—
Current tax payable		15		17
Other		291		168
Total Other current liabilities	$	745	$	372

Components of Other, Net

The following table sets forth the components of Other, net:

	For the three months ended						For the nine months ended
	March 31,						March 31,
	2019			2018			2019			2018
	(in millions)
Dividends received from equity security investments	$	1		$	—		$	24		$	—
Remeasurement of equity securities(a)		6			—			(23	)		—
Write-down of available-for-sale securities(b)		—			(3	)		—			(33	)
Gain on sale of Australian property		2			—			14			—
Gain on sale of SEEKAsia(c)		—			32			—			32
Other, net(d)		(6	)		1			15			10
Total Other, net	$	3		$	30		$	30		$	9

(a) As a result of the adoption of ASU 2016-01 during the first quarter of fiscal 2019, the Company has included the impact from the remeasurement of equity securities in Other, net in the Statement of Operations for the three and nine months ended March 31, 2019. During the three and nine months ended March 31, 2018, the impact from the remeasurement of equity securities was included in Accumulated other comprehensive loss in the Balance Sheets.

(b) For the three and nine months ended March 31, 2018, the write-downs of available-for-sale securities were reclassified out of Accumulated other comprehensive loss and included in Other, net in the Statements of Operations.

(c) During the three months ended March 31, 2018, the Company sold its investment in SEEKAsia for $122 million in cash and recognized a $32 million gain in Other, net in the Statements of Operations.

(d) As a result of the adoption of ASU 2017-07 during the first quarter of fiscal 2019, the Company has included the other non-service cost components of net periodic benefit cost (income) in Other, net in the Statements of Operations for the three and nine months ended March 31, 2019 and 2018.

Summary of Supplemental Cash Flow Information

The following table sets forth the Company’s cash paid for taxes and interest:

	For the nine months ended March 31,
	2019		2018
	(in millions)
Cash paid for interest	$	67	$	8
Cash paid for taxes		107		116

XML

Description of Business and Basis of presentation (Detail) - USD ($) $ in Millions		1 Months Ended	3 Months Ended	9 Months Ended	12 Months Ended
	Jul. 02, 2018	Apr. 30, 2018	Mar. 31, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2019
Type of Revenue [Extensible List]				us-gaap:AdvertisingMember
Fiscal period duration						364 days
Scenario, Forecast [Member]
Fiscal period duration					364 days
Advertising [Member]
Revenue reclassifications			$ 15	$ 42		$ 57
Other [Member]
Revenue reclassifications			$ (15)	$ (42)		$ (57)
New Foxtel [Member]
Ownership interest							65.00%
Accounting Standards Update 2014-09 [Member]
Adjustment to retained earnings	$ 20
Accounting Standards Update 2016-01 [Member]
Adjustment to retained earnings	$ 22
FOX SPORTS Australia [Member]
Company ownership percentage		100.00%
Telstra [Member] | New Foxtel [Member]
Ownership interest held by minority interest							35.00%
Foxtel [Member]
Equity method investment, ownership percentage		50.00%

XML

Revenues - Additional Information (Detail) - USD ($)		3 Months Ended		9 Months Ended
	Jul. 02, 2018	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue		$ 2,457,000,000	$ 2,093,000,000	$ 7,608,000,000	$ 6,331,000,000
Revenue from performance obligation		75,000,000		227,000,000
Revenue from remaining performance obligation		297,000,000		297,000,000
Impact on net income		23,000,000	(1,110,000,000)	270,000,000	(1,089,000,000)
Accounting Standards Update 2014-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Adjustment to retained earnings	$ 20,000,000
ASC 606 [Member] | Accounting Standards Update 2014-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue		(17,000,000)		(54,000,000)
Impact on net income		1,000,000		14,000,000
Subscription Video Services [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue		539,000,000	$ 129,000,000	1,666,000,000	$ 394,000,000
Reclassification of Marketing and Sales Incentive Payments [Member] | Subscription Video Services, Book Publishing and News and Information Services [Member] | ASC 606 [Member] | Accounting Standards Update 2014-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue		(22,000,000)		(84,000,000)
Impact on net income		0		0
Installation Operations [Member] | Subscription Video Services [Member] | ASC 606 [Member] | Accounting Standards Update 2014-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue		$ 5,000,000		$ 18,000,000
Financial Services [Member] | REA Group Inc [Member] | Accounting Standards Update 2014-09 [Member] | Commission Receivable [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Commission receivable	121,000,000
Financial Services [Member] | REA Group Inc [Member] | Accounting Standards Update 2014-09 [Member] | Commission Payable [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Commission payable	$ 94,000,000

XML

Revenues - Practical expedients and other revenue disclosures (Detail) $ in Millions	Mar. 31, 2019 USD ($)
Revenue from remaining performance obligation	$ 297
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01
Revenue from remaining performance obligation	$ 39
Expected period of performance obligation to be recognized	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01
Revenue from remaining performance obligation	$ 133
Expected period of performance obligation to be recognized	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01
Revenue from remaining performance obligation	$ 98
Expected period of performance obligation to be recognized	1 year

XML

Revenues - Summary of Cumulative Effect and Impact of Adoption ASC 606 and ASC 605 (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Jul. 01, 2018	Jun. 30, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Revenues	$ 2,457	$ 2,093	$ 7,608	$ 6,331
Operating expenses and Selling, general and administrative	(2,210)		(6,633)
Net income	23	(1,110)	270	(1,089)
Receivables, net	1,631		1,631		$ 1,812	$ 1,612
Other current assets	564		564		368	372
Deferred income tax assets	257		257		281	279
Other non-current assets	913		913		923	831
Deferred revenue	460		460		510	516
Other current liabilities	745		745		566	372
Deferred income tax liabilities	321		321		400	389
Other non-current liabilities	495		495		501	430
Accumulated deficit	(1,927)		(1,927)		(2,143)	$ (2,163)
Circulation and Subscription [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Revenues	1,025	659	3,088	1,947
Advertising [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Revenues	670	702	2,052	2,101
Consumer [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Revenues	403	381	1,281	1,220
Real Estate [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Revenues	218	208	693	633
Other [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Revenues	141	$ 143	494	$ 430
ASC 605 [Member] | Accounting Standards Update 2014-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Revenues	2,474		7,662
Operating expenses and Selling, general and administrative	(2,228)		(6,706)
Net income	22		256
Receivables, net					1,612
Other current assets					372
Deferred income tax assets					279
Other non-current assets					831
Deferred revenue					516
Other current liabilities					372
Deferred income tax liabilities					389
Other non-current liabilities					430
Accumulated deficit					(2,163)
ASC 605 [Member] | Accounting Standards Update 2014-09 [Member] | Circulation and Subscription [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Revenues	1,019		3,076
ASC 605 [Member] | Accounting Standards Update 2014-09 [Member] | Advertising [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Revenues	673		2,055
ASC 605 [Member] | Accounting Standards Update 2014-09 [Member] | Consumer [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Revenues	420		1,328
ASC 605 [Member] | Accounting Standards Update 2014-09 [Member] | Real Estate [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Revenues	218		693
ASC 605 [Member] | Accounting Standards Update 2014-09 [Member] | Other [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Revenues	144		510
ASC 606 [Member] | Accounting Standards Update 2014-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Revenues	(17)		(54)
Operating expenses and Selling, general and administrative	18		73
Net income	1		14
Receivables, net					200
Other current assets					(4)
Deferred income tax assets					2
Other non-current assets					92
Deferred revenue					(6)
Other current liabilities					194
Deferred income tax liabilities					11
Other non-current liabilities					71
Accumulated deficit					$ 20
ASC 606 [Member] | Accounting Standards Update 2014-09 [Member] | Circulation and Subscription [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Revenues	6		12
ASC 606 [Member] | Accounting Standards Update 2014-09 [Member] | Advertising [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Revenues	(3)		(3)
ASC 606 [Member] | Accounting Standards Update 2014-09 [Member] | Consumer [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Revenues	(17)		(47)
ASC 606 [Member] | Accounting Standards Update 2014-09 [Member] | Real Estate [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Revenues	0		0
ASC 606 [Member] | Accounting Standards Update 2014-09 [Member] | Other [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Revenues	$ (3)		$ (16)

XML

Revenues - Summary of Disaggregated Revenue by Type and by Segment (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Disaggregation of Revenue [Line Items]
Revenues	$ 2,457	$ 2,093	$ 7,608	$ 6,331
Circulation and Subscription [Member]
Disaggregation of Revenue [Line Items]
Revenues	1,025	659	3,088	1,947
Advertising [Member]
Disaggregation of Revenue [Line Items]
Revenues	670	702	2,052	2,101
Consumer [Member]
Disaggregation of Revenue [Line Items]
Revenues	403	381	1,281	1,220
Real Estate [Member]
Disaggregation of Revenue [Line Items]
Revenues	218	208	693	633
Other [Member]
Disaggregation of Revenue [Line Items]
Revenues	141	143	494	430
News and Information Services [Member]
Disaggregation of Revenue [Line Items]
Revenues	1,224	1,286	3,729	3,825
News and Information Services [Member] | Circulation and Subscription [Member]
Disaggregation of Revenue [Line Items]
Revenues	538		1,593
News and Information Services [Member] | Advertising [Member]
Disaggregation of Revenue [Line Items]
Revenues	593		1,801
News and Information Services [Member] | Consumer [Member]
Disaggregation of Revenue [Line Items]
Revenues	0		0
News and Information Services [Member] | Real Estate [Member]
Disaggregation of Revenue [Line Items]
Revenues	0		0
News and Information Services [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Revenues	93		335
Subscription Video Services [Member]
Disaggregation of Revenue [Line Items]
Revenues	539	129	1,666	394
Subscription Video Services [Member] | Circulation and Subscription [Member]
Disaggregation of Revenue [Line Items]
Revenues	474		1,455
Subscription Video Services [Member] | Advertising [Member]
Disaggregation of Revenue [Line Items]
Revenues	50		162
Subscription Video Services [Member] | Consumer [Member]
Disaggregation of Revenue [Line Items]
Revenues	0		0
Subscription Video Services [Member] | Real Estate [Member]
Disaggregation of Revenue [Line Items]
Revenues	0		0
Subscription Video Services [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Revenues	15		49
Book Publishing [Member]
Disaggregation of Revenue [Line Items]
Revenues	421	398	1,335	1,268
Book Publishing [Member] | Circulation and Subscription [Member]
Disaggregation of Revenue [Line Items]
Revenues	0		0
Book Publishing [Member] | Advertising [Member]
Disaggregation of Revenue [Line Items]
Revenues	0		0
Book Publishing [Member] | Consumer [Member]
Disaggregation of Revenue [Line Items]
Revenues	403		1,281
Book Publishing [Member] | Real Estate [Member]
Disaggregation of Revenue [Line Items]
Revenues	0		0
Book Publishing [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Revenues	18		54
Digital Real Estate Services [Member]
Disaggregation of Revenue [Line Items]
Revenues	272	$ 279	876	$ 842
Digital Real Estate Services [Member] | Circulation and Subscription [Member]
Disaggregation of Revenue [Line Items]
Revenues	12		39
Digital Real Estate Services [Member] | Advertising [Member]
Disaggregation of Revenue [Line Items]
Revenues	27		89
Digital Real Estate Services [Member] | Consumer [Member]
Disaggregation of Revenue [Line Items]
Revenues	0		0
Digital Real Estate Services [Member] | Real Estate [Member]
Disaggregation of Revenue [Line Items]
Revenues	218		693
Digital Real Estate Services [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Revenues	15		55
Other Services [Member]
Disaggregation of Revenue [Line Items]
Revenues	1		2
Other Services [Member] | Circulation and Subscription [Member]
Disaggregation of Revenue [Line Items]
Revenues	1		1
Other Services [Member] | Advertising [Member]
Disaggregation of Revenue [Line Items]
Revenues	0		0
Other Services [Member] | Consumer [Member]
Disaggregation of Revenue [Line Items]
Revenues	0		0
Other Services [Member] | Real Estate [Member]
Disaggregation of Revenue [Line Items]
Revenues	0		0
Other Services [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 0		$ 1

XML

Revenues - Summary of Deferred Revenue from Contract with Customers (Detail) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2019
Deferred Revenue [Abstract]
Balance, beginning of period	$ 430	$ 510
Deferral of revenue	934	2,271
Recognition of deferred revenue	(883)	(2,300)
Other	(21)	(21)
Balance, end of period	$ 460	$ 460

XML

Revenues - Summary of Deferred Revenue from Contract with Customers (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2019
Deferred Revenue Arrangement [Line Items]
Recognition of deferred revenue	$ 883	$ 2,300
Deferred Revenue [Member]
Deferred Revenue Arrangement [Line Items]
Recognition of deferred revenue	$ 241	$ 461

XML

Acquisitions, Disposals and Other Transactions - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended		3 Months Ended	9 Months Ended
	Oct. 31, 2018	Apr. 30, 2018	Jun. 30, 2018	Mar. 31, 2019
Schedule Of Business Acquisitions And Divestitures [Line Items]
Goodwill			$ 5,218	$ 5,223
New Foxtel [Member]
Schedule Of Business Acquisitions And Divestitures [Line Items]
Cash acquired		$ 78
Goodwill		$ 1,559
Ownership interest				65.00%
Percentage of the entity that the excess purchase price valuation is based on		100.00%
Business acquisition purchase price allocation, tangible assets		$ 871
Business acquisition purchase price allocation, Outstanding borrowings		1,751
Business acquisition purchase price allocation, amortizable and indefinite-lived intangible assets		861
Business Assets Acquired		4,225
Business acquisition, purchased technology amount		$ 967
Opcity [Member]
Schedule Of Business Acquisitions And Divestitures [Line Items]
Total transaction value	$ 210
Payment to acquire business	182
Cash acquired	7
Cash held back after closing	20
Deferred compensation related to business acquisition	$ 28
Acquisition cost recognized as compensation expense, period for recognition	3 years
Goodwill	$ 124
Business Assets Acquired	$ 73
Opcity [Member] | Purchased technology
Schedule Of Business Acquisitions And Divestitures [Line Items]
Purchased technology, weighted average useful life	12 years
Business acquisition, purchased technology amount	$ 49
Opcity [Member] | Leads and Customer Relationships [Member]
Schedule Of Business Acquisitions And Divestitures [Line Items]
Business acquisition purchase price allocation, amortizable intangible assets	$ 24
Finite lived intangible assets, weighted average useful life	9 years
Foxtel [Member]
Schedule Of Business Acquisitions And Divestitures [Line Items]
Equity method investment, ownership percentage		50.00%
FOX SPORTS Australia [Member]
Schedule Of Business Acquisitions And Divestitures [Line Items]
Company ownership percentage		100.00%
Write-off of channel distribution agreement intangible asset			317
FOX SPORTS Australia [Member] | Nonoperating Income (Expense) [Member]
Schedule Of Business Acquisitions And Divestitures [Line Items]
Loss on transactions			$ (337)
FOX SPORTS Australia [Member] | New Foxtel [Member]
Schedule Of Business Acquisitions And Divestitures [Line Items]
Company ownership percentage				65.00%
Subscriber Relationships [Member] | New Foxtel [Member]
Schedule Of Business Acquisitions And Divestitures [Line Items]
Business acquisition purchase price allocation, amortizable intangible assets		$ 468
Finite lived intangible assets, weighted average useful life		10 years
Trade Names [Member] | New Foxtel [Member]
Schedule Of Business Acquisitions And Divestitures [Line Items]
Business acquisition purchase price allocation, indefinite-lived intangible assets		$ 270
Customer Relationships [Member] | New Foxtel [Member]
Schedule Of Business Acquisitions And Divestitures [Line Items]
Finite lived intangible assets, weighted average useful life		15 years
Business acquisition purchase price allocation, amortizable and indefinite-lived intangible assets		$ 123
Telstra [Member] | New Foxtel [Member]
Schedule Of Business Acquisitions And Divestitures [Line Items]
Ownership interest held by minority interest				35.00%

XML

Acquisitions, Disposals and Other Transactions - Schedule of Total Aggregate Purchase Price Transaction Value/ Fair Value of Acquisition (Detail) - New Foxtel [Member] $ in Millions	1 Months Ended
	Apr. 30, 2018 USD ($)
Business Acquisition [Line Items]
Consideration transferred	$ 331
Fair value of News Corp previously held equity interest in Foxtel	631
Fair value of noncontrolling interest	578
Fair value of net assets	$ 1,540

XML

Acquisitions, Disposals and Other Transactions - Schedule of Total Aggregate Purchase Price Transaction Value/ Fair Value of Acquisition (Parenthetical) (Detail)	1 Months Ended
	Apr. 30, 2018
FOX SPORTS Australia [Member]
Business Acquisition [Line Items]
Percentage of fair value	35.00%
Foxtel [Member]
Business Acquisition [Line Items]
Percentage of fair value	35.00%

XML

Acquisitions, Disposals and Other Transactions - Schedule of Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions	Mar. 31, 2019	Jun. 30, 2018	Apr. 30, 2018
Assets acquired:
Goodwill	$ 5,223	$ 5,218
New Foxtel [Member]
Assets acquired:
Cash			$ 78
Current assets			492
Property, plant and equipment			967
Intangible assets			861
Goodwill			1,559
Other non-current assets			268
Total assets acquired			4,225
Liabilities assumed:
Current liabilities			611
Long-term borrowings			1,751
Other non-current liabilities			323
Total liabilities assumed			2,685
Net assets acquired			$ 1,540

XML

Impairment and Restructuring Charges - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 25	$ 21	$ 62	$ 48
Non-cash impairment charge		225		225
News and Information Services [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	23	13	55	38
News America Marketing [Member]
Restructuring Cost and Reserve [Line Items]
Non-cash impairment charge		$ 165		$ 165
News America Marketing [Member] | Measurement Input, Discount Rate [Member] | Valuation, Income Approach [Member] | Maximum [Member]
Restructuring Cost and Reserve [Line Items]
Rate used to measure goodwill and intangible assets		14.00%		14.00%
News America Marketing [Member] | Measurement Input, Discount Rate [Member] | Valuation, Income Approach [Member] | Minimum [Member]
Restructuring Cost and Reserve [Line Items]
Rate used to measure goodwill and intangible assets		12.50%		12.50%
News America Marketing [Member] | Measurement Input, Long-term Revenue Growth Rate [Member] | Valuation, Income Approach [Member] | Maximum [Member]
Restructuring Cost and Reserve [Line Items]
Rate used to measure goodwill and intangible assets		0.90%		0.90%
News America Marketing [Member] | Measurement Input, Long-term Revenue Growth Rate [Member] | Valuation, Income Approach [Member] | Minimum [Member]
Restructuring Cost and Reserve [Line Items]
Rate used to measure goodwill and intangible assets		(1.90%)		(1.90%)
News America Marketing [Member] | Measurement Input Royalty Rate [Member] | Valuation, Income Approach [Member]
Restructuring Cost and Reserve [Line Items]
Rate used to measure goodwill and intangible assets		2.50%		2.50%
Fox Sports Australia [Member]
Restructuring Cost and Reserve [Line Items]
Non-cash impairment charge		$ 41		$ 41
Fox Sports Australia [Member] | Measurement Input, Discount Rate [Member] | Valuation, Income Approach [Member]
Restructuring Cost and Reserve [Line Items]
Rate used to measure goodwill and intangible assets		9.50%		9.50%
Fox Sports Australia [Member] | Measurement Input Royalty Rate [Member] | Valuation, Income Approach [Member]
Restructuring Cost and Reserve [Line Items]
Rate used to measure goodwill and intangible assets		2.00%		2.00%
Other Current Liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring liabilities, current	30		30
Other Non-Current Liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring liabilities, non-current	$ 10		$ 10

XML

Impairment and Restructuring Charges - Schedule of Changes in Restructuring Program Liabilities (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Restructuring Cost and Reserve [Line Items]
Restructuring Liabilities, Beginning Balance	$ 33	$ 36	$ 42	$ 49
Additions	25	21	62	48
Payments	(18)	(22)	(63)	(62)
Other	0	3	(1)	3
Restructuring Liabilities, Ending Balance	40	38	40	38
One Time Employee Termination Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Liabilities, Beginning Balance	20	22	29	33
Additions	25	21	62	47
Payments	(17)	(22)	(61)	(60)
Other	0	3	(2)	4
Restructuring Liabilities, Ending Balance	28	24	28	24
Facility Related Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Liabilities, Beginning Balance	2	4	2	6
Additions	0	0	0	0
Payments	0	0	0	(1)
Other	0	0	0	(1)
Restructuring Liabilities, Ending Balance	2	4	2	4
Other Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Liabilities, Beginning Balance	11	10	11	10
Additions	0	0	0	1
Payments	(1)	0	(2)	(1)
Other	0	0	1	0
Restructuring Liabilities, Ending Balance	$ 10	$ 10	$ 10	$ 10

XML

Investments - Schedule of Investments (Detail) - USD ($) $ in Millions	Mar. 31, 2019	Jun. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Investments Schedule [Abstract]
Equity method investments	$ 160	$ 173	$ 123	$ 136
Equity securities	187	220
Total Investments	$ 347	$ 393

XML

Investments - Schedule of Total Gains and Losses on Equity Securities (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Investments Schedule [Abstract]
Total gains (losses) recognized on equity securities	$ 6	$ 30	$ (23)	$ 13
Less: Net gains recognized on equity securities sold or impaired	0	29	0	5
Unrealized gains (losses) recognized on equity securities held at end of period	$ 6	$ 1	$ (23)	$ 8

XML

Investments - Schedule of Losses of Equity Affiliates (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Schedule of Equity Method Investments [Line Items]
Equity losses of affiliates	$ (4)	$ (974)	$ (13)	$ (1,002)
Foxtel [Member]
Schedule of Equity Method Investments [Line Items]
Equity losses of affiliates	0	(970)	0	(974)
Other Equity Affiliates, Net [Member]
Schedule of Equity Method Investments [Line Items]
Equity losses of affiliates	$ (4)	$ (4)	$ (13)	$ (28)

XML

Investments - Schedule of Losses of Equity Affiliates (Parenthetical) (Detail) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Mar. 31, 2018 USD ($)
Schedule of Equity Method Investments [Line Items]
Impairments of investment		$ 13
Valuation, Income Approach [Member] | Measurement Input, Discount Rate [Member]
Schedule of Equity Method Investments [Line Items]
Equity method investment measurement input	0.1025		0.1025
Valuation, Income Approach [Member] | Measurement Input, Long-term Revenue Growth Rate [Member]
Schedule of Equity Method Investments [Line Items]
Equity method investment measurement input	0.020		0.020
Foxtel [Member]
Schedule of Equity Method Investments [Line Items]
Impairments of investment	$ 957		$ 957
Other Equity Affiliates, Net [Member]
Schedule of Equity Method Investments [Line Items]
Impairments of investment			13
Equity Losses of Affiliates [Member] | Foxtel [Member]
Schedule of Equity Method Investments [Line Items]
Amortization of excess basis allocated to finite-lived intangible assets	$ 17		$ 49

XML

Investments - Schedule of Summarized Financial Information (Detail) - Foxtel [Member] $ in Millions	9 Months Ended
	Mar. 31, 2018 USD ($)
Schedule of Equity Method Investments [Line Items]
Revenues	$ 1,818
Operating income	155
Net income	$ 64

XML

Investments - Schedule of Summarized Financial Information (Parenthetical) (Detail) - Foxtel [Member] $ in Millions	9 Months Ended
	Mar. 31, 2018 USD ($)
Schedule of Equity Method Investments [Line Items]
Depreciation and amortization	$ 187
Operating income before depreciation and amortization	$ 342

XML

Borrowings - Schedule of Borrowings (Detail) - USD ($) $ in Millions	9 Months Ended
	Mar. 31, 2019	Jun. 30, 2018
Debt and Financial Instruments [Line Items]
Total borrowings	$ 1,546	$ 1,952
Less: current portion	(678)	(462)
Long-term borrowings	868	1,490
Credit Facility 2013 [Member] | New Foxtel [Member]
Debt and Financial Instruments [Line Items]
Total borrowings	$ 0	222
Interest rate	3.55%
Due date	Apr. 07, 2019
Credit Facility 2014 Tranche 1 [Member] | New Foxtel [Member]
Debt and Financial Instruments [Line Items]
Total borrowings	$ 142	148
Interest rate	3.55%
Due date	May 30, 2019
Working Capital Facility 2017 [Member] | New Foxtel [Member]
Debt and Financial Instruments [Line Items]
Total borrowings	$ 57	59
Interest rate	3.85%
Due date	Jul. 03, 2020
Credit Facility 2014 Tranche 2 [Member] | New Foxtel [Member]
Debt and Financial Instruments [Line Items]
Total borrowings	$ 142	148
Interest rate	3.65%
Due date	Jan. 31, 2020
Credit Facility 2015 [Member] | New Foxtel [Member]
Debt and Financial Instruments [Line Items]
Total borrowings	$ 284	296
Interest rate	3.70%
Due date	Jul. 31, 2020
Credit Facility 2016 [Member] | New Foxtel [Member]
Debt and Financial Instruments [Line Items]
Total borrowings	$ 53	108
Interest rate	4.25%
Due date	Sep. 11, 2021
US Private Placement 2009 Tranche 3 [Member] | New Foxtel [Member]
Debt and Financial Instruments [Line Items]
Total borrowings	$ 74	75
Interest rate	6.20%
Due date	Sep. 24, 2019
US Private Placement 2012 USD Portion Tranche 1 [Member] | New Foxtel [Member]
Debt and Financial Instruments [Line Items]
Total borrowings	$ 150	150
Interest rate	3.68%
Due date	Jul. 25, 2019
US Private Placement 2012 USD Portion Tranche 2 [Member] | New Foxtel [Member]
Debt and Financial Instruments [Line Items]
Total borrowings	$ 198	196
Interest rate	4.27%
Due date	Jul. 25, 2022
US Private Placement 2012 USD Portion Tranche 3 [Member] | New Foxtel [Member]
Debt and Financial Instruments [Line Items]
Total borrowings	$ 148	146
Interest rate	4.42%
Due date	Jul. 25, 2024
US Private Placement 2012 AUD Portion [Member] | New Foxtel [Member]
Debt and Financial Instruments [Line Items]
Total borrowings	$ 78	83
Interest rate	7.04%
Due date	Jul. 25, 2022
Credit Facility Fiscal 2016 Tranche 2 [Member] | REA Group Inc [Member]
Debt and Financial Instruments [Line Items]
Total borrowings	$ 0	89
Due date	Dec. 31, 2018
Credit Facility Fiscal 2016 Tranche 3 [Member] | REA Group Inc [Member]
Debt and Financial Instruments [Line Items]
Total borrowings	$ 170	178
Interest rate	3.01%
Due date	Dec. 31, 2019
Credit Facility Fiscal 2018 [Member] | REA Group Inc [Member]
Debt and Financial Instruments [Line Items]
Total borrowings	$ 50	$ 54
Interest rate	2.71%
Due date	Apr. 27, 2021

XML

Borrowings - Schedule of Borrowings (Parenthetical) (Detail) $ in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2019 USD ($)	Mar. 31, 2019 AUD ($)	Mar. 31, 2019 USD ($)	Mar. 31, 2019 AUD ($)	Mar. 31, 2019 AUD ($)
Minimum [Member] | Australian BBSY [Member]
Debt and Financial Instruments [Line Items]
Interest rate margin			1.10%	1.10%
Maximum [Member] | Australian BBSY [Member]
Debt and Financial Instruments [Line Items]
Interest rate margin			2.70%	2.70%
REA Group [Member]
Debt and Financial Instruments [Line Items]
Maximum borrowing capacity under the revolving loan facility					$ 480
REA Group [Member] | Minimum [Member]
Debt and Financial Instruments [Line Items]
Interest rate margin			0.85%	0.85%
REA Group [Member] | Minimum [Member] | Australian BBSY [Member]
Debt and Financial Instruments [Line Items]
Interest rate margin			0.85%	0.85%
REA Group [Member] | Maximum [Member]
Debt and Financial Instruments [Line Items]
Interest rate margin			1.05%	1.05%
REA Group [Member] | Maximum [Member] | Australian BBSY [Member]
Debt and Financial Instruments [Line Items]
Interest rate margin			1.45%	1.45%
New Foxtel [Member]
Debt and Financial Instruments [Line Items]
Undrawn commitments	$ 241		$ 241
New Foxtel [Member] | Minimum [Member]
Debt and Financial Instruments [Line Items]
Percentage of applicable margin payable as commitment fee			40.00%	40.00%
New Foxtel [Member] | Maximum [Member]
Debt and Financial Instruments [Line Items]
Percentage of applicable margin payable as commitment fee			45.00%	45.00%
Credit Facility Fiscal 2016 Tranche 2 [Member] | REA Group [Member]
Debt and Financial Instruments [Line Items]
Amounts drawn under credit facility	170		$ 170		$ 240
Repayments of lines of credit			87	$ 120
Credit Facility 2013 [Member] | New Foxtel [Member]
Debt and Financial Instruments [Line Items]
Repayments of lines of credit	$ 216	$ 300	$ 216	300
Proceeds from shareholder loans		$ 300		$ 300

XML

Redeemable Preferred Stock - Additional Information (Detail) - Redeemable Preferred Stock [Member] - $ / shares		1 Months Ended
	Jun. 28, 2013	Jul. 31, 2018
Class of Stock [Line Items]
Preferred stock sold	4,000
Preferred stock, par value	$ 5,000
Preferred stock dividend rate	9.50%
Company exercised its call option and redeemed		100.00%
Call Option [Member]
Class of Stock [Line Items]
Preferred stock redemption period	5 years
Put Option [Member]
Class of Stock [Line Items]
Preferred stock redemption period	10 years

XML

Equity - Summary of Changes in Equity (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Changes In Equity [Line Items]
Balance, beginning of period	$ 10,434	$ 11,158	$ 10,477	$ 11,073
Cumulative impact from adoption of new accounting standards			20
Net income (loss)	23	(1,110)	270	(1,089)
Other comprehensive income (loss)	67	1	(170)	136
Dividends	(78)	(78)	(160)	(158)
Other	12	20	21	29
Balance, end of period	$ 10,458	9,991	$ 10,458	9,991
Class A Common Stock [Member]
Changes In Equity [Line Items]
Balance, beginning of period, Shares			383,385,353
Balance, end of period, Shares	385,444,822		385,444,822
Class B Common Stock [Member]
Changes In Equity [Line Items]
Balance, beginning of period, Shares			199,630,240
Balance, end of period, Shares	199,630,240		199,630,240
Common Stock [Member] | Class A Common Stock [Member]
Changes In Equity [Line Items]
Balance, beginning of period	$ 4	$ 4	$ 4	$ 4
Balance, beginning of period, Shares	385,000,000	383,000,000	383,000,000	382,000,000
Cumulative impact from adoption of new accounting standards			$ 0
Net income (loss)	$ 0	$ 0	0	$ 0
Other comprehensive income (loss)	0	0	0	0
Dividends	0	0	0	0
Other	0	0	$ 0	$ 0
Other, Shares			2,000,000	1,000,000
Balance, end of period	$ 4	$ 4	$ 4	$ 4
Balance, end of period, Shares	385,000,000	383,000,000	385,000,000	383,000,000
Common Stock [Member] | Class B Common Stock [Member]
Changes In Equity [Line Items]
Balance, beginning of period	$ 2	$ 2	$ 2	$ 2
Balance, beginning of period, Shares	200,000,000	200,000,000	200,000,000	200,000,000
Cumulative impact from adoption of new accounting standards			$ 0
Net income (loss)	$ 0	$ 0	0	$ 0
Other comprehensive income (loss)	0	0	0	0
Dividends	0	0	0	0
Other	0	0	0	0
Balance, end of period	$ 2	$ 2	$ 2	$ 2
Balance, end of period, Shares	200,000,000	200,000,000	200,000,000	200,000,000
Additional Paid-in Capital [Member]
Changes In Equity [Line Items]
Balance, beginning of period	$ 12,271	$ 12,350	$ 12,322	$ 12,395
Cumulative impact from adoption of new accounting standards			0
Net income (loss)	0	0	0	0
Other comprehensive income (loss)	0	0	0	0
Dividends	(58)	(59)	(117)	(118)
Other	16	19	24	33
Balance, end of period	12,229	12,310	12,229	12,310
Accumulated Deficit [Member]
Changes In Equity [Line Items]
Balance, beginning of period	(1,937)	(664)	(2,163)	(648)
Cumulative impact from adoption of new accounting standards			32
Net income (loss)	10	(1,128)	206	(1,143)
Other comprehensive income (loss)	0	0	0	0
Dividends	0	0	0	0
Other	0	0	(2)	(1)
Balance, end of period	(1,927)	(1,792)	(1,927)	(1,792)
Accumulated Other Comprehensive Loss [Member]
Changes In Equity [Line Items]
Balance, beginning of period	(1,076)	(832)	(874)	(964)
Cumulative impact from adoption of new accounting standards			(22)
Net income (loss)	0	0	0	0
Other comprehensive income (loss)	57	3	(124)	135
Dividends	0	0	0	0
Other	0	0	1	0
Balance, end of period	(1,019)	(829)	(1,019)	(829)
Total News Corporation Equity
Changes In Equity [Line Items]
Balance, beginning of period	9,264	10,860	9,291	10,789
Cumulative impact from adoption of new accounting standards			10
Net income (loss)	10	(1,128)	206	(1,143)
Other comprehensive income (loss)	57	3	(124)	135
Dividends	(58)	(59)	(117)	(118)
Other	16	19	23	32
Balance, end of period	9,289	9,695	9,289	9,695
Noncontrolling Interest [Member]
Changes In Equity [Line Items]
Balance, beginning of period	1,170	298	1,186	284
Cumulative impact from adoption of new accounting standards			10
Net income (loss)	13	18	64	54
Other comprehensive income (loss)	10	(2)	(46)	1
Dividends	(20)	(19)	(43)	(40)
Other	(4)	1	(2)	(3)
Balance, end of period	$ 1,169	$ 296	$ 1,169	$ 296

XML

Equity - Summary of Dividends Declared Per Share (Detail) - $ / shares	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Cash dividend declared per share	$ 0.10	$ 0.10	$ 0.20	$ 0.20

XML

Equity - Additional Information (Detail) - USD ($)		1 Months Ended	3 Months Ended		9 Months Ended
	May 03, 2019	Feb. 28, 2019	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	May 31, 2013
Class of Stock [Line Items]
Cash dividends declared per share of common stock			$ 0.10	$ 0.10	$ 0.20	$ 0.20
Cash dividends per common share, date of dividend payable		Apr. 17, 2019
Cash dividends per common share, date of record for dividend		Mar. 13, 2019
Class A Common Stock [Member]
Class of Stock [Line Items]
Aggregate amount of shares authorized to be repurchased							$ 500,000,000
Number of shares repurchased					0
Cash dividends declared per share of common stock		$ 0.10
Class A Common Stock [Member] | Subsequent Event [Member]
Class of Stock [Line Items]
Number of shares repurchased	5,200,000
Remaining authorized amount under stock repurchase program	$ 429,000,000
Aggregate cost of shares repurchased	$ 71,000,000
Class B Common Stock [Member]
Class of Stock [Line Items]
Cash dividends declared per share of common stock		$ 0.10

XML

Financial Instruments and Fair Value Measurements - Summary of Assets and Liabilities Measured At Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions	Mar. 31, 2019	Jun. 30, 2018
Assets:
Equity securities	$ 187	$ 93
Total assets	336	211
Liabilities:
Mandatorily redeemable noncontrolling interests	12	12
Total liabilities	46	44
Foreign Currency Derivatives [Member] | Cash Flow Hedging [Member]
Assets:
Derivative assets	3	3
Cross Currency Interest Rate Derivatives [Member] | Fair Value Hedging [Member]
Assets:
Derivative assets	27	29
Cross Currency Interest Rate Derivatives [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member]
Assets:
Derivative assets	12	10
Cross Currency Interest Rate Derivatives [Member] | Cash Flow Hedging [Member]
Assets:
Derivative assets	107	76
Liabilities:
Derivative liabilities	15	12
Interest Rate Contract [Member] | Cash Flow Hedging [Member]
Liabilities:
Derivative liabilities	19	20
Level 1 [Member]
Assets:
Equity securities	72	93
Total assets	72	93
Liabilities:
Mandatorily redeemable noncontrolling interests	0	0
Total liabilities	0	0
Level 1 [Member] | Foreign Currency Derivatives [Member] | Cash Flow Hedging [Member]
Assets:
Derivative assets	0	0
Level 1 [Member] | Cross Currency Interest Rate Derivatives [Member] | Fair Value Hedging [Member]
Assets:
Derivative assets	0	0
Level 1 [Member] | Cross Currency Interest Rate Derivatives [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member]
Assets:
Derivative assets	0	0
Level 1 [Member] | Cross Currency Interest Rate Derivatives [Member] | Cash Flow Hedging [Member]
Assets:
Derivative assets	0	0
Liabilities:
Derivative liabilities	0	0
Level 1 [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member]
Liabilities:
Derivative liabilities	0	0
Level 2 [Member]
Assets:
Equity securities	0	0
Total assets	149	118
Liabilities:
Mandatorily redeemable noncontrolling interests	0	0
Total liabilities	34	32
Level 2 [Member] | Foreign Currency Derivatives [Member] | Cash Flow Hedging [Member]
Assets:
Derivative assets	3	3
Level 2 [Member] | Cross Currency Interest Rate Derivatives [Member] | Fair Value Hedging [Member]
Assets:
Derivative assets	27	29
Level 2 [Member] | Cross Currency Interest Rate Derivatives [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member]
Assets:
Derivative assets	12	10
Level 2 [Member] | Cross Currency Interest Rate Derivatives [Member] | Cash Flow Hedging [Member]
Assets:
Derivative assets	107	76
Liabilities:
Derivative liabilities	15	12
Level 2 [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member]
Liabilities:
Derivative liabilities	19	20
Level 3 [Member]
Assets:
Equity securities	115	0
Total assets	115	0
Liabilities:
Mandatorily redeemable noncontrolling interests	12	12
Total liabilities	12	12
Level 3 [Member] | Foreign Currency Derivatives [Member] | Cash Flow Hedging [Member]
Assets:
Derivative assets	0	0
Level 3 [Member] | Cross Currency Interest Rate Derivatives [Member] | Fair Value Hedging [Member]
Assets:
Derivative assets	0	0
Level 3 [Member] | Cross Currency Interest Rate Derivatives [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member]
Assets:
Derivative assets	0	0
Level 3 [Member] | Cross Currency Interest Rate Derivatives [Member] | Cash Flow Hedging [Member]
Assets:
Derivative assets	0	0
Liabilities:
Derivative liabilities	0	0
Level 3 [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member]
Liabilities:
Derivative liabilities	$ 0	$ 0

XML

Financial Instruments and Fair Value Measurements - Summary of Equity Securities Classified as Level 3 (Detail) - Equity Securities [Member] $ in Millions	9 Months Ended
	Mar. 31, 2019 USD ($)
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance—beginning of period	$ 127
Purchases	7
Sales	(10)
Foreign exchange and other	(9)
Balance—end of period	$ 115

XML

Financial Instruments and Fair Value Measurements - Summary of Mandatorily Redeemable Noncontrolling Interest Liabilities Classified Level 3 (Detail) - Financial Instruments Subject To Mandatory Redemption Settlement Terms Share Value [Member] - USD ($) $ in Millions	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance—beginning of period	$ 12	$ 79
Additions	0	12
Accretion	1	2
Foreign exchange movements	(1)	(1)
Balance—end of period	$ 12	$ 92

XML

Financial Instruments and Fair Value Measurements - Summary of Hedges Classified as Current or Non-Current in Balance Sheets Based on Maturity Dates (Detail) - USD ($) $ in Millions	Mar. 31, 2019	Jun. 30, 2018
Foreign Currency Derivatives [Member] | Cash Flow Hedging [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives, reported under other current assets	$ 3	$ 3
Cross Currency Interest Rate Derivatives [Member] | Cash Flow Hedging [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives, reported under other current assets	32	0
Derivatives, reported under other non-current assets	75	76
Derivatives, reported under other non-current liabilities	(15)	(12)
Cross Currency Interest Rate Derivatives [Member] | Fair Value Hedging [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives, reported under other current assets	8	0
Derivatives, reported under other non-current assets	19	29
Cross Currency Interest Rate Derivatives [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives, reported under other current assets	12	0
Derivatives, reported under other non-current assets	0	10
Interest Rate Contract [Member] | Cash Flow Hedging [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives, reported under other current liabilities	(3)	0
Derivatives, reported under other non-current liabilities	$ (16)	$ (20)

XML

Financial Instruments and Fair Value Measurements - Additional Information (Detail) $ in Millions, $ in Millions	3 Months Ended			9 Months Ended
	Mar. 31, 2019 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Mar. 31, 2019 USD ($)	Mar. 31, 2018 USD ($)	Mar. 31, 2019 AUD ($)	Jun. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimates of net derivative gains related to cash flow hedges included in Accumulated other comprehensive loss	$ 3			$ 3
Equity method investment carrying value	160		$ 123	160			$ 173	$ 136
Non-cash impairments of equity method investment			13
Goodwill carrying value	5,223			5,223			$ 5,218
News America Marketing [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-cash impairment charge of goodwill		$ 120
Non-cash impairment charge for indefinite-lived intangible assets		45
Goodwill carrying value		181	301		$ 181
Indefinite-lived intangible assets carrying value		346	391		346
Fox Sports Australia Reporting Unit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-cash impairment charge of goodwill		41
Goodwill carrying value		449	490		449
Foxtel [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity method investment carrying value		631	$ 1,588		631
Non-cash impairments of equity method investment		$ 957			$ 957
Cross Currency Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimates of net derivative gains related to cash flow hedges included in Accumulated other comprehensive loss	1			1
Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimates of net derivative gains related to cash flow hedges included in Accumulated other comprehensive loss	4			4
Cash Flow Hedging [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amount recognized in earnings for ineffective portion of derivative instruments designated as cash flow hedges	2			3
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional value of derivative	34			34
Cash Flow Hedging [Member] | Cross Currency Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional value of derivative						$ 400
Cash Flow Hedging [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional value of derivative						700
Fair Value Hedging [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional value of derivative						$ 100
Adjustments increased the carrying value of long-term debt	3			3
Not Designated as Hedging Instrument, Economic Hedge [Member] | Cross Currency Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional value of derivative	$ 75			$ 75

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Financial Instruments and Fair Value Measurements - Summary of Derivative Instruments Designated as Cash Flow Hedges (Detail) - Cash Flow Hedging [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
(Gain) loss recognized in Accumulated Other Comprehensive Income	$ 15	$ 0	$ (3)	$ 0
Gain (loss) reclassified from Accumulated Other Comprehensive Income	(9)	0	1	0
Foreign Currency Derivatives [Member] | Operating Expense [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
(Gain) loss recognized in Accumulated Other Comprehensive Income	2	0	(2)	0
Gain (loss) reclassified from Accumulated Other Comprehensive Income	0	0	2	0
Cross Currency Interest Rate Derivatives [Member] | Interest (Expense) Income, Net [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
(Gain) loss recognized in Accumulated Other Comprehensive Income	9	0	(7)	0
Gain (loss) reclassified from Accumulated Other Comprehensive Income	(7)	0	5	0
Interest Rate Contract [Member] | Interest (Expense) Income, Net [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
(Gain) loss recognized in Accumulated Other Comprehensive Income	4	0	6	0
Gain (loss) reclassified from Accumulated Other Comprehensive Income	$ (2)	$ 0	$ (6)	$ 0

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Earnings (Loss) Per Share - Computation of Basic and Diluted Earnings (Loss) per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share [Abstract]
Net income (loss)	$ 23	$ (1,110)	$ 270	$ (1,089)
Less: Net income attributable to noncontrolling interests	(13)	(18)	(64)	(54)
Less: Redeemable preferred stock dividends	0	0	0	(1)
Net income (loss) available to News Corporation stockholders	$ 10	$ (1,128)	$ 206	$ (1,144)
Weighted-average number of shares of common stock outstanding—basic	585.0	582.8	584.6	582.6
Dilutive effect of equity awards	3.8		2.6
Weighted-average number of shares of common stock outstanding—diluted	588.8	582.8	587.2	582.6
Net income (loss) available to News Corporation stockholders per share - basic and diluted	$ 0.02	$ (1.94)	$ 0.35	$ (1.96)

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Earnings (Loss) Per Share - Computation of Basic and Diluted Earnings (Loss) per Share (Parenthetical) (Detail) - Redeemable Preferred Stock [Member] - $ / shares		1 Months Ended
	Jun. 28, 2013	Jul. 31, 2018
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Preferred stock sold	4,000
Preferred stock, par value	$ 5,000
Preferred stock dividend rate	9.50%
Company exercised its call option and redeemed		100.00%
Call Option [Member]
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Preferred stock redemption period	5 years
Put Option [Member]
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Preferred stock redemption period	10 years

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Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Jul. 01, 2018	Jun. 30, 2018
Loss Contingencies [Line Items]
Other current assets	$ 564		$ 564		$ 368	$ 372
U.K. Newspaper Matters [Member]
Loss Contingencies [Line Items]
Selling, general and administrative expenses (benefit), net	2	$ 2	8	$ (38)
Litigation liability accrued	54		54
Impact due to reversal of previous accrued liability due to settlement with tax authority				$ 46
U.K. Newspaper Matters Indemnification [Member] | FOX [Member]
Loss Contingencies [Line Items]
Other current assets	$ 51		$ 51

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Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Jun. 30, 2018
Income Tax Contingency [Line Items]
Income tax expense	$ 7	$ 3	$ 112	$ 292
Income (loss) before income tax (expense) benefit	$ 30	$ (1,107)	382	(797)
Provisional charges recorded			174
Gross income tax paid			107	116
Income tax refunds			$ 17	$ 6
U.S. Tax Cuts and Jobs Act [Member]
Income Tax Contingency [Line Items]
Income tax expense					$ 237
US Statutory Federal Tax Rate [Member]
Income Tax Contingency [Line Items]
U.S. statutory federal tax rate					21.00%

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Segment Information - Additional Information (Detail)	9 Months Ended
	Mar. 31, 2019 Segment Item Brand Country
Segment Reporting Information [Line Items]
Number of reportable segments | Segment	5
New Foxtel [Member]
Segment Reporting Information [Line Items]
Company ownership percentage	65.00%
New Foxtel [Member] | Telstra [Member]
Segment Reporting Information [Line Items]
Ownership interest held by minority interest	35.00%
Digital Real Estate Services [Member] | Move Inc [Member]
Segment Reporting Information [Line Items]
Company ownership percentage	80.00%
Digital Real Estate Services [Member] | Move Inc [Member] | REA Group Inc [Member]
Segment Reporting Information [Line Items]
Ownership interest held by minority interest	20.00%
Digital Real Estate Services [Member] | REA Group Inc [Member]
Segment Reporting Information [Line Items]
Company ownership percentage	61.60%
Book Publishing [Member]
Segment Reporting Information [Line Items]
Number of countries | Country	17
Book Publishing [Member] | Minimum [Member]
Segment Reporting Information [Line Items]
Number of branded publishing imprints | Brand	120
Subscription Video Services [Member] | New Foxtel [Member]
Segment Reporting Information [Line Items]
Company ownership percentage	65.00%
Subscription Video Services [Member] | New Foxtel [Member] | Telstra [Member]
Segment Reporting Information [Line Items]
Ownership interest held by minority interest	35.00%
Subscription Video Services [Member] | Minimum [Member] | New Foxtel [Member]
Segment Reporting Information [Line Items]
Number of channels | Item	200

XML

Segment Information - Reconciliation of Revenue and Segment EBITDA from Segments to Consolidated (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting Information [Line Items]
Revenues	$ 2,457	$ 2,093	$ 7,608	$ 6,331
Depreciation and amortization	(168)	(100)	(494)	(297)
Impairment and restructuring charges	(34)	(246)	(71)	(273)
Equity losses of affiliates	(4)	(974)	(13)	(1,002)
Interest (expense) income, net	(14)	2	(45)	9
Other, net	3	30	30	9
Income (loss) before income tax expense	30	(1,107)	382	(797)
Income tax expense	(7)	(3)	(112)	(292)
Net income (loss)	23	(1,110)	270	(1,089)
News and Information Services [Member]
Segment Reporting Information [Line Items]
Revenues	1,224	1,286	3,729	3,825
Total Segment EBITDA	73	87	309	302
Subscription Video Services [Member]
Segment Reporting Information [Line Items]
Revenues	539	129	1,666	394
Total Segment EBITDA	98	16	295	76
Book Publishing [Member]
Segment Reporting Information [Line Items]
Revenues	421	398	1,335	1,268
Total Segment EBITDA	53	41	209	167
Digital Real Estate Services [Member]
Segment Reporting Information [Line Items]
Revenues	272	279	876	842
Total Segment EBITDA	74	88	300	302
Other [Member]
Segment Reporting Information [Line Items]
Revenues	1	1	2	2
Total Segment EBITDA	$ (51)	$ (51)	$ (138)	$ (90)

XML

Segment Information - Reconciliation of Assets from Segments to Consolidated (Detail) - USD ($) $ in Millions	Mar. 31, 2019	Jun. 30, 2018
Segment Reporting, Asset Reconciling Item [Line Items]
Investments	$ 347	$ 393
Total assets	16,058	16,346
News and Information Services [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	5,840	6,039
Subscription Video Services [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	4,495	4,738
Book Publishing [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	2,073	1,898
Digital Real Estate Services [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	2,209	2,171
Other [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 1,094	$ 1,107

XML

Segment Information - Reconciliation of Goodwill and Intangible Assets from Segments to Consolidated (Detail) - USD ($) $ in Millions	Mar. 31, 2019	Jun. 30, 2018
Segment Reporting Information [Line Items]
Total Goodwill and intangible assets, net	$ 7,737	$ 7,889
News and Information Services [Member]
Segment Reporting Information [Line Items]
Total Goodwill and intangible assets, net	2,695	2,730
Subscription Video Services [Member]
Segment Reporting Information [Line Items]
Total Goodwill and intangible assets, net	2,662	2,853
Book Publishing [Member]
Segment Reporting Information [Line Items]
Total Goodwill and intangible assets, net	778	804
Digital Real Estate Services [Member]
Segment Reporting Information [Line Items]
Total Goodwill and intangible assets, net	$ 1,602	$ 1,502

XML

Additional Financial Information - Components of Receivables, Net (Detail) - USD ($) $ in Millions	Mar. 31, 2019	Jul. 01, 2018	Jun. 30, 2018
Receivables [Abstract]
Receivables	$ 1,681		$ 1,829
Allowance for sales returns	0		(171)
Allowance for doubtful accounts	(50)		(46)
Receivables, net	$ 1,631	$ 1,812	$ 1,612

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Additional Financial Information - Components of Other Non-Current Assets (Detail) - USD ($) $ in Millions	Mar. 31, 2019	Jul. 01, 2018	Jun. 30, 2018
Assets, Noncurrent [Abstract]
Royalty advances to authors	$ 340		$ 312
Retirement benefit assets	155		135
Inventory	123		143
Other	295		241
Total Other non-current assets	$ 913	$ 923	$ 831

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Additional Financial Information - Components of Other Current Liabilities (Detail) - USD ($) $ in Millions	Mar. 31, 2019	Jul. 01, 2018	Jun. 30, 2018
Other Current Liabilities [Line Items]
Total Other current liabilities	$ 745	$ 566	$ 372
Other Current Liabilities [Member]
Other Current Liabilities [Line Items]
Royalties and commissions payable	241		187
Allowance for sales returns	198		0
Current tax payable	15		17
Other	291		168
Total Other current liabilities	$ 745		$ 372

XML

Additional Financial Information - Components of Other, Net (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Other Income and Expenses [Line Items]
Remeasurement of equity securities	$ 6	$ 30	$ (23)	$ 13
Gain on sale of SEEKAsia		32
Total Other, net	3	30	30	9
Nonoperating Income (Expense) [Member]
Other Income and Expenses [Line Items]
Dividends received from equity security investments	1	0	24	0
Remeasurement of equity securities	6	0	(23)	0
Write-down of available-for-sale securities	0	(3)	0	(33)
Gain on sale of Australian property	2	0	14	0
Gain on sale of SEEKAsia	0	32	0	32
Other, net	(6)	1	15	10
Total Other, net	$ 3	$ 30	$ 30	$ 9

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Additional Financial Information - Components of Other, Net (Parenthetical) (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)
Other Income and Expenses [Abstract]
Investments sold out for cash	$ 122
Gain on sale of investment	$ 32

XML

Additional Financial Information - Summary of Supplemental Cash Flow Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Supplemental Cash Flow Information [Abstract]
Cash paid for interest	$ 67	$ 8
Cash paid for taxes	$ 107	$ 116