Earnings Per Share

6 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 8. EARNINGS PER SHARE

Basic earnings per share for the Class A Common Stock and Class B Common Stock is calculated by dividing Net income available to News Corporation stockholders by the weighted average number of shares of Class A Common Stock and Class B Common Stock outstanding. Diluted earnings per share for Class A Common Stock and Class B Common Stock is calculated similarly, except that the calculation includes the dilutive effect of the assumed issuance of shares issuable under the Company’s equity-based compensation plans.

On the Distribution Date, approximately 579 million shares of News Corporation common stock were distributed to 21st Century Fox stockholders as of the Record Date. This share amount is being utilized for the calculation of both basic and diluted earnings per share for the three and six months ended December 31, 2012 as no News Corporation common stock or equity-based awards were outstanding prior to June 28, 2013.

The dilutive effect of the Company’s equity-based awards issued in connection with the Separation is included in the computation of diluted earnings per share in the period subsequent to the Separation.

	For the three months ended December 31,					For the six months ended December 31,
	2013			2012		2013			2012
	(in millions, except per share amounts)
Net income attributable to News Corporation stockholders	$	151		$	1,399	$	178		$	1,307
Less: Adjustments to Net income attributable to News Corporation stockholders
Redeemable preferred stock dividends (a)		(1	)		—		(1	)		—
Net income available to News Corporation stockholders—basic and diluted	$	150		$	1,399	$	177		$	1,307
Weighted-average number of shares of common stock outstanding—basic		578.9			578.8		578.8			578.8
Add: Effect of dilutive securities
Equity awards		0.7			—		0.8			—
Weighted-average number of shares of common stock outstanding—diluted		579.6			578.8		579.6			578.8
Net income per share available to News Corporation stockholders—basic	$	0.26		$	2.42	$	0.31		$	2.26
Net income per share available to News Corporation stockholders—diluted	$	0.26		$	2.42	$	0.31		$	2.26

^(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 pays dividends at a rate of 9.5% per annum, payable quarterly. The preferred stock is callable by the Company at any time after the fifth year and is puttable at the option of the holder after 10 years.