XML 33 R21.htm IDEA: XBRL DOCUMENT v3.5.0.2
Additional Financial Information
 3 Months Ended
Sep. 30, 2016
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     As of  
     September 30, 2016     June 30, 2016  
     (in millions)  

Receivables

    $ 1,511      $ 1,442   

Allowances for doubtful accounts

      (175 )      (170 ) 

Allowance for sales returns

      (42 )      (43 ) 
  

 

 

    

 

 

  

Receivables, net

    $ 1,294      $ 1,229   
  

 

 

    

 

 

  

The Company’s receivables did not contain significant concentrations of credit risk as of September 30, 2016 or June 30, 2016 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
September 30, 2016		      As of
June 30, 2016		  
       
     (in millions)  

Inventory(a)

    $ 233       $ 218   

Amounts due from 21st Century Fox(b)

      58         55   

Prepayments and other current assets

      244         240   
  

 

 

     

 

 

  

Total Other current assets

    $ 535       $ 513   
  

 

 

     

 

 

  

 

(a)

Inventory at September 30, 2016 and June 30, 2016 was primarily comprised of books, newsprint and programming rights.
(b)

Relates to costs incurred in connection with the U.K. Newspaper Matters which will be indemnified by 21st Century Fox.

Other Non-Current Assets

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

 

     As of
September 30, 2016		      As of
June 30, 2016		  
       
     (in millions)  

Royalty advances to authors

    $ 317       $ 311   

Other

      90         85   
  

 

 

     

 

 

  

Total Other non-current assets

    $ 407       $ 396   
  

 

 

     

 

 

  

Other Current Liabilities

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

 

     As of
September 30, 2016		      As of
June 30, 2016		  
       
     (in millions)  

Current tax payable

    $ 44       $ 33   

Royalties and commissions payable

      196         179   

Other

      270         254   
  

 

 

     

 

 

  

Total Other current liabilities

    $ 510       $ 466   
  

 

 

     

 

 

  

Other, net

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

 

     For the three months ended
September 30,		  
         2016              2015      
     (in millions)  

Gain on sale of available-for-sale securities

    $ 6       $   —   

Gain on sale of equity method investments

      6         —   

Gain on sale of cost method investments

      4         —   

Other, net

      1         5   
  

 

 

     

 

 

  

Total Other, net

    $ 17       $ 5