Equity Based Compensation

9 Months Ended

Mar. 31, 2014

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

NOTE 7. EQUITY BASED COMPENSATION

Prior to the Separation from 21st Century Fox, the Company’s employees participated in 21st Century Fox’s equity-based compensation plans. The equity-based compensation expense recorded by the Company in the three and nine months ended March 31, 2013 included the expense associated with the employees historically attributable to the Company, as well as the expense associated with the allocation of equity-based compensation expense for 21st Century Fox corporate employees which did not recur in periods subsequent to the Separation.

In connection with the Separation, restricted stock units (“RSUs”) and performance stock units (“PSUs”) that vested after December 31, 2013 and stock option awards that expired after December 31, 2013 were converted into new equity awards of the Company using a formula designed to preserve the value of the awards immediately prior to the Separation. Such awards have the same terms and features as the original awards. In addition to the awards converted, the Company has the ability to award up to 30 million shares under the terms of the News Corporation 2013 Long-Term Incentive Plan (the “2013 LTIP”).

The following table summarizes the Company’s equity-based compensation expense:


	For the three months ended March 31,				For the nine months ended March 31,
	2014		2013		2014		2013
	(in millions)
News Corporation’s employees	$	3	$	11	$	23	$	32
Allocated		—		1		—		7

Total	$	3	$	12	$	23	$	39

During the nine months ended March 31, 2014, the Company granted 4.3 million PSUs, of which 2.7 million will be settled in Class A Common Stock of the Company with the remaining, having been granted to executive directors and to employees in certain foreign locations, being settled in cash. Cash settled awards are marked to market each reporting period. In addition, the Company granted 0.1 million RSUs during the nine months ended March 31, 2014, which will be settled in Class A Common Stock of the Company.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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