NOTE 18. SEGMENT INFORMATION

The Company manages and reports its businesses in the following six segments:

•

News and Information Services—The News and Information Services segment includes the global print and digital product offerings of The Wall Street Journal and Barron’s publications, Marketwatch, and the Company’s suite of professional information products, including Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, Dow Jones Private Markets and DJX.

The Company also owns, among other publications, The Australian, The Daily Telegraph, Herald Sun and The Courier Mail 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 free-standing inserts, in-store marketing products and services and digital marketing solutions. News America Marketing’s customers include many of the largest consumer packaged goods advertisers in the U.S. and Canada.

•

Book Publishing—The Book Publishing segment consists of HarperCollins, the second largest consumer book publisher in the world, with operations in 18 countries and particular strengths in general fiction, nonfiction, children’s and religious publishing. HarperCollins includes over 120 branded publishing imprints, including Avon, Harper, HarperCollins Children’s Books, William Morrow, Harlequin and Christian publishers Zondervan and Thomas Nelson, and publishes works by well-known authors such as Harper Lee, Mitch Albom, Veronica Roth, Rick Warren and Agatha Christie and popular titles such as The Hobbit, Goodnight Moon, To Kill a Mockingbird and the Divergent series.

•

Digital Real Estate Services—The Digital Real Estate Services segment consists of the Company’s interests in REA Group and Move. REA Group is a publicly traded company listed on the ASX (ASX: REA) that is a leading multinational digital advertising business specializing in property. REA Group operates Australia’s leading residential and commercial property websites, realestate.com.au and realcommercial.com.au, as well as European property sites and Chinese property site myfun.com. The Company holds a 61.6% interest in REA Group.

Move, acquired in November 2014, 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 also offers a number of professional software and services products, including Top Producer^®, TigerLead^® and ListHub^TM. The Company owns an 80% interest in Move, with the remaining 20% being held by REA Group.

•

Cable Network Programming—The Cable Network Programming segment consists of FOX SPORTS Australia, the leading sports programming provider in Australia, with seven high definition television channels distributed via cable, satellite and IP, several interactive viewing applications and broadcast rights to live sporting events in Australia including: National Rugby League, the domestic football league, English Premier League, international cricket and Australian Rugby Union.

•

Digital Education—The Company’s Digital Education segment consists of Amplify, the brand for the Company’s digital education business. Amplify’s technology solutions transform the way teachers teach and students learn in two primary areas:

•

Amplify Insight, Amplify’s data and assessment business, which formerly operated under the brand Wireless Generation, Inc., commenced operations in 2000 and was acquired in fiscal 2011. Amplify Insight provides powerful assessment products and services to support teachers and school districts, including student assessment tools and analytic technologies, intervention programs, enterprise education information systems, and professional development and consulting services.

•

Amplify Learning, Amplify’s curriculum business, is developing digital content for K-12 English Language Arts, Math and Science, including software that combines interactive, game-like experiences, rich, immersive media and sophisticated analytics to make the classroom teaching and learning experience more engaging, rigorous, personalized and effective. Amplify Learning’s digital curriculum incorporates the Common Core State Standards adopted by most states in the U.S. and is available for use on multiple platforms.

Amplify also operates Amplify Access, a platform business that delivers a tablet-based distribution system which includes a tablet designed for the K-12 market, instructional software and curated third-party content. The Company has initiated a strategic review of its digital education business. In the fourth quarter of fiscal 2015, the Company determined it would cease actively marketing Amplify’s Access products to new customers; however, it will continue to provide service and support to its existing customers. The Company is reviewing strategic alternatives with respect to the Insight and Learning businesses.

•

Other—The Other segment consists primarily of general corporate overhead expenses, the corporate Strategy and Creative Group, and costs related to the U.K. Newspaper Matters. The Company’s corporate Strategy and Creative Group was formed to identify new products and services across its businesses to increase revenues and profitability and to target and assess potential acquisitions and investments.

The Company has determined its operating segments in accordance with its internal management structure, which is organized based on operating activities, and has aggregated its newspaper and information services business with its integrated marketing services business into one reportable segment due to their similarities. The Company evaluates performance based upon several factors, of which the primary financial measure is Segment EBITDA.

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 earnings of affiliates; interest, net; other, net; income tax (expense) benefit and net income attributable to noncontrolling interests. The Company believes that information about Segment EBITDA assists all users of its Financial Statements by allowing them to evaluate changes in the operating results of the Company’s portfolio of businesses separate from non-operational factors that affect net (loss) income, thus providing insight into both operations and the other factors that affect reported results.

Total Segment EBITDA is a non-GAAP measure and should be considered in addition to, not as a substitute for, net (loss) income, 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.

Management believes that Segment EBITDA is an appropriate measure for evaluating the operating performance of the Company’s business. Segment EBITDA provides management, investors and equity analysts with a measure to analyze operating performance of the Company’s business and its enterprise value against historical data and competitors’ data, although historical results, including Segment EBITDA, may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences). The following table reconciles Total Segment EBITDA to Net (loss) income attributable to News Corporation stockholders.


	For the fiscal years ended June 30,
	2015			2014			2013
	(in millions)
Revenues:
News and Information Services	$	5,731		$	6,153		$	6,731
Book Publishing		1,667			1,434			1,369
Digital Real Estate Services		625			408			345
Cable Network Programming		500			491			324
Digital Education		109			88			102
Other		1			—			20

Total Revenues		8,633			8,574			8,891

Segment EBITDA:
News and Information Services	$	603		$	665		$	795
Book Publishing		221			197			142
Digital Real Estate Services		201			214			168
Cable Network Programming		135			128			63
Digital Education		(93	)		(193	)		(141	)
Other		(215	)		(241	)		(339	)

Total Segment EBITDA		852			770			688

Depreciation and amortization		(530	)		(578	)		(548	)
Impairment and restructuring charges		(455	)		(94	)		(1,737	)
Equity earnings of affiliates		58			90			100
Interest, net		56			68			77
Other, net		75			(653	)		1,593

Income (loss) before income tax (expense) benefit		56			(397	)		173
Income tax (expense) benefit		(134	)		691			374

Net (loss) income		(78	)		294			547
Less: Net income attributable to noncontrolling interests		(69	)		(55	)		(41	)

Net (loss) income attributable to News Corporation	$	(147	)	$	239		$	506


	For the fiscal years ended June 30,
	2015		2014		2013
	(in millions)
Depreciation and amortization:
News and Information Services	$	365	$	458	$	441
Book Publishing		52		36		34
Digital Real Estate Services		44		20		20
Cable Network Programming		33		36		25
Digital Education		32		26		23
Other		4		2		5

Total Depreciation and amortization	$	530	$	578	$	548


	For the fiscal years ended June 30,
	2015		2014		2013
	(in millions)
Capital expenditures:
News and Information Services	$	238	$	268	$	250
Book Publishing		12		52		10
Digital Real Estate Services		45		24		22
Cable Network Programming		7		7		14
Digital Education		70		21		21
Other		6		7		15

Total Capital expenditures	$	378	$	379	$	332


	As of June 30,
	2015		2014
	(in millions)
Total assets:
News and Information Services	$	6,749	$	7,379
Book Publishing		2,022		1,852
Digital Real Estate Services		1,278		438
Cable Network Programming		1,163		1,427
Digital Education		151		481
Other		1,351		2,303
Investments		2,379		2,609

Total assets	$	15,093	$	16,489


	As of June 30,
	2015		2014
	(in millions)
Goodwill and intangible assets, net:
News and Information Services	$	2,593	$	2,646
Book Publishing		896		619
Digital Real Estate Services		835		95
Cable Network Programming		938		1,181
Digital Education		39		378
Other		4		—

Total goodwill and intangible assets, net	$	5,305	$	4,919

Geographic Segments


	For the fiscal years ended June 30,
	2015		2014		2013
	(in millions)
Revenues:^(a)
U.S. and Canada^(b)	$	3,917	$	3,719	$	3,862
Europe^(c)		1,982		2,045		2,048
Australasia and Other^(d)		2,734		2,810		2,981

Total revenues	$	8,633	$	8,574	$	8,891

^(a)	Revenues are attributed to region based on location of customer.

^(b)	Revenues include approximately $3.8 billion for fiscal 2015, $3.5 billion for fiscal 2014 and $3.7 billion for fiscal 2013 from customers in the U.S.

^(c)	Revenues include approximately $1.6 billion for fiscal 2015, and $1.8 billion for each of the fiscal years 2014 and 2013 from customers in the U.K.

^(d)	Revenues include approximately $2.3 billion for fiscal 2015, $2.6 billion for fiscal 2014 and $2.8 billion for fiscal 2013 from customers in Australia.


	As of June 30,
	2015		2014
	(in millions)
Long-lived assets:^(a)
U.S. and Canada	$	1,158	$	1,094
Europe		1,201		1,318
Australasia and Other		859		1,133

Total long-lived assets	$	3,218	$	3,545

^(a)	Reflects total assets less current assets, goodwill, intangible assets, investments and non-current deferred tax assets.

There is no material reliance on any single customer. Revenues are attributed to countries based on location of customers.

Australasia comprises Australia, Asia, Papua New Guinea and New Zealand.