Additional Financial Information

6 Months Ended

Dec. 31, 2014

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 returns and doubtful accounts, which is an estimate of amounts that may not be collectible. In determining the allowance for returns, management analyzes historical returns, current economic trends and changes in customer demand and acceptance of the Company’s products. Based on this information, management reserves a certain portion of revenues that provide the customer with the right of return. 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 December 31, 2014			As of June 30, 2014
	(in millions)
Receivables	$	1,708		$	1,563
Allowances for returns and doubtful accounts		(258	)		(175	)
Receivables, net	$	1,450		$	1,388

The Company’s receivables did not contain significant concentrations of credit risk as of December 31, 2014 or June 30, 2014 due to the wide variety of customers, markets and geographic areas to which the Company’s products and services are sold.

Other Current Assets

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

	As of December 31, 2014		As of June 30, 2014
	(in millions)
Inventory(a)	$	274	$	310
Assets held for sale		2		11
Deferred tax assets		76		76
Prepayments and other current assets		277		274
Total Other current assets	$	629	$	671

^(a)  Inventory at December 31, 2014 and June 30, 2014 was primarily comprised of books, newsprint, printing ink, plate material and programming rights.

Other Non-Current Assets

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

	As of December 31, 2014		As of June 30, 2014
	(in millions)
Royalty advances to authors	$	286	$	267
Notes receivable(a)		76		83
Deferred tax assets		187		146
Other		168		186
Total Other non-current assets	$	717	$	682

^(a)  Notes receivable relates to the Company’s sale of its former U.K. newspaper division headquarters.

Other Current Liabilities

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

	As of December 31, 2014		As of June 30, 2014
	(in millions)
Current tax payable	$	86	$	25
Current deferred income tax		45		36
Royalties and commissions payable		192		168
Other		138		202
Total Other current liabilities	$	461	$	431

Other, net

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

	For the three months ended December 31,					For the six months ended December 31,
	2014		2013			2014		2013
	(in millions)
Foreign tax refund payable to 21st Century Fox(a)	$	—	$	(238	)	$	—	$	(721	)
Gain on third party pension contribution(b)		—		—			—		37
Gain on sale of marketable securities(c)		—		—			29		—
Dividends received from cost method investments		3		—			20		—
Other, net		7		7			9		12
Total Other, net	$	10	$	(231	)	$	58	$	(672	)

^(a)  See Note 12—Income Taxes

^(b)  See Note 11—Pension and Other Postretirement Benefits

^(c)  In August 2014, REA Group completed the sale of a minority interest held in marketable securities for total cash consideration of $104 million. As a result of the sale, REA Group recognized a pre-tax gain of $29 million, which was reclassified out of accumulated other comprehensive income and included in Other, net in the Statement of Operations.