Equity Based Compensation

3 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Equity Based Compensation

NOTE 7. EQUITY BASED COMPENSATION

Employees of the Company participate in the News Corporation 2013 Long-Term Incentive Plan (the “2013 LTIP”) under which equity-based compensation, including stock options, performance stock units (“PSUs”), restricted stock, restricted stock units (“RSUs”) and other types of awards can be granted. The Company has the ability to award up to 30 million shares under the terms of the 2013 LTIP. The Company recognized $12 million and $8 million of equity-based compensation expense for the three months ended September 30, 2014 and 2013, respectively.

Performance Stock Units

During the three months ended September 30, 2014, the Company granted 3.1 million PSUs at target, of which 2.0 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.

During the three months ended September 30, 2014, approximately 2.0 million PSUs vested, of which approximately 1.5 million were settled in shares of Class A Common Stock before statutory tax withholdings. The remaining 0.5 million PSUs settled during the three months ended September 30, 2014 were settled in cash for approximately $8.2 million before statutory tax withholdings.

Restricted Stock Units

During the three months ended September 30, 2014, approximately 0.4 million RSUs vested, of which approximately 0.3 million were settled in shares of Class A Common Stock before statutory tax withholdings. The remaining 0.1 million RSUs settled during the three months ended September 30, 2014 were settled in cash for approximately $0.9 million before statutory tax withholdings.