NOTE 19. 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 the Dow Jones Media Group, which includes Barron’s and MarketWatch, as well as the Company’s suite of professional information products, including Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, Dow Jones PEVC 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 home-delivered shopper media, 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 owns more than 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, Sarah Young and Agatha Christie and popular titles such as The Hobbit, Goodnight Moon, To Kill a Mockingbird, Jesus Calling 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: REA) that advertises property and property-related services on websites and mobile applications across Australia, Europe and Asia. REA Group operates Australia’s leading residential and commercial property websites, realestate.com.au and realcommercial.com.au. 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, 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.

Segment EBITDA is defined as revenues less operating expenses, and selling, general and administrative expenses and excluding the impact from the NAM Group and Zillow legal settlements. 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. Segment EBITDA may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what items should be included in the calculation of Segment EBITDA.

Segment EBITDA is the primary measure used by the Company’s chief operating decision maker to evaluate the performance of and allocate resources within the Company’s businesses. Segment EBITDA provides management, investors and equity analysts with a measure to analyze the operating performance of each of the Company’s business segments and its enterprise value against historical data and competitors’ data, although historical results may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences). The Company believes that information about Segment EBITDA allows users of its Consolidated Financial Statements to evaluate changes in the operating results of the Company’s portfolio of businesses separate from non-operational factors that affect net income (loss), 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 income (loss), 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. The following table reconciles Total Segment EBITDA to income from continuing operations.


	For the fiscal years ended June 30,
	2016			2015			2014
	(in millions)
Revenues:
News and Information Services	$	5,338		$	5,731		$	6,153
Book Publishing		1,646			1,667			1,434
Digital Real Estate Services		822			625			408
Cable Network Programming		484			500			491
Other		2			1			—

Total Revenues		8,292			8,524			8,486

Segment EBITDA:
News and Information Services	$	214		$	603		$	665
Book Publishing		185			221			197
Digital Real Estate Services		344			201			214
Cable Network Programming		124			135			128
Other		(183	)		(215	)		(241	)

Total Segment EBITDA		684			945			963

Depreciation and amortization		(505	)		(498	)		(552	)
Impairment and restructuring charges		(89	)		(84	)		(94	)
Equity earnings of affiliates		30			58			90
Interest, net		43			56			68
Other, net		18			75			(653	)

Income (loss) from continuing operations before income tax benefit (expense)		181			552			(178	)
Income tax benefit (expense)		54			(185	)		614

Income from continuing operations	$	235		$	367		$	436


	For the fiscal years ended June 30,
	2016		2015		2014
	(in millions)
Depreciation and amortization:
News and Information Services	$	347	$	365	$	458
Book Publishing		55		52		36
Digital Real Estate Services		69		44		20
Cable Network Programming		29		33		36
Other		5		4		2

Total Depreciation and amortization	$	505	$	498	$	552


	For the fiscal years ended June 30,
	2016		2015		2014
	(in millions)
Capital expenditures:
News and Information Services	$	174	$	238	$	268
Book Publishing		9		12		52
Digital Real Estate Services		64		45		24
Cable Network Programming		8		7		7
Other		1		6		7

Total Capital expenditures	$	256	$	308	$	358


	As of June 30,
	2016		2015
	(in millions)
Total assets:
News and Information Services	$	6,728	$	6,749
Book Publishing		1,855		2,022
Digital Real Estate Services		2,158		1,278
Cable Network Programming		1,101		1,163
Other^(a)		1,371		1,352
Investments		2,270		2,379
Assets held for sale		—		92

Total assets	$	15,483	$	15,035

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


	As of June 30,
	2016		2015
	(in millions)
Goodwill and intangible assets, net:
News and Information Services	$	2,651	$	2,593
Book Publishing		869		896
Digital Real Estate Services		1,499		835
Cable Network Programming		898		938
Other		4		4

Total goodwill and intangible assets, net	$	5,921	$	5,266

Geographic Segments


	For the fiscal years ended June 30,
	2016		2015		2014
	(in millions)
Revenues:^(a)
U.S. and Canada^(b)	$	3,920	$	3,808	$	3,631
Europe^(c)		1,873		1,982		2,045
Australasia and Other^(d)		2,499		2,734		2,810

Total revenues	$	8,292	$	8,524	$	8,486

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

^(b)	Revenues include approximately $3.8 billion for fiscal 2016, $3.6 billion for fiscal 2015 and $3.5 billion for fiscal 2014 from customers in the U.S.

^(c)	Revenues include approximately $1.5 billion for fiscal 2016, $1.6 billion for fiscal 2015 and $1.8 billion for fiscal 2014 from customers in the U.K.

^(d)	Revenues include approximately $2.3 billion for fiscal 2016, $2.3 billion for fiscal 2015 and $2.6 billion for fiscal 2014 from customers in Australia.


	As of June 30,
	2016		2015
	(in millions)
Long-lived assets:^(a)
U.S. and Canada	$	1,058	$	1,097
Europe		939		1,201
Australasia and Other		804		859

Total long-lived assets	$	2,801	$	3,157

^(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.