Segment Information

9 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Information

NOTE 13. SEGMENT INFORMATION

The Company manages and reports its businesses in the following five 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 both News America Marketing, a leading provider of free-standing inserts, in-store marketing products and services and digital marketing solutions, including Checkout 51’s mobile application, as well as Unruly, a leading global video advertising distribution platform.

• 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 primarily of the Company’s interests in REA Group and Move. REA Group is a publicly traded company listed on the Australian Securities Exchange (“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 property sites in Europe and Asia. 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.

• 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, selling, general and administrative expenses and the NAM Group settlement charge. Segment EBITDA does not include: Depreciation and amortization; impairment and restructuring charges; equity earnings of affiliates; interest, net; other, net; income tax benefit (expense) 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 (Loss) income from continuing operations.

	For the three months ended March 31,						For the nine months ended March 31,
	2016			2015			2016			2015
	(in millions)
Revenues:
News and Information Services	$	1,231		$	1,353		$	3,921		$	4,327
Book Publishing		358			402			1,213			1,277
Digital Real Estate Services		194			170			593			436
Cable Network Programming		107			116			337			367
Other		1			—			2			—
Total Revenues		1,891			2,041			6,066			6,407
Segment EBITDA:
News and Information Services	$	(187	)	$	113		$	54		$	434
Book Publishing		36			56			135			188
Digital Real Estate Services		39			42			169			156
Cable Network Programming		34			27			101			113
Other		(44	)		(54	)		(136	)		(161	)
Total Segment EBITDA		(122	)		184			323			730
Depreciation and amortization		(126	)		(124	)		(370	)		(375	)
Restructuring charges		(24	)		(10	)		(63	)		(31	)
Equity earnings of affiliates		2			7			25			48
Interest, net		11			12			34			42
Other, net		33			12			32			70
(Loss) income from continuing operations before income tax benefit (expense)		(226	)		81			(19	)		484
Income tax benefit (expense)		98			(25	)		140			(137	)
(Loss) income from continuing operations	$	(128	)	$	56		$	121		$	347

	As of March 31, 2016		As of June 30, 2015
	(in millions)
Total assets:
News and Information Services	$	6,682	$	6,749
Book Publishing		1,971		2,022
Digital Real Estate Services		1,965		1,278
Cable Network Programming		1,227		1,163
Other(a)		1,607		1,352
Investments		2,264		2,379
Assets held for sale		—		92
Total assets	$	15,716	$	15,035

^(a)  The Other segment primarily includes Cash and cash equivalents.

	As of March 31, 2016		As of June 30, 2015
	(in millions)
Goodwill and intangible assets, net:
News and Information Services	$	2,670	$	2,593
Book Publishing		849		896
Digital Real Estate Services		1,482		835
Cable Network Programming		905		938
Other		4		4
Total goodwill and intangible assets, net	$	5,910	$	5,266