NOTE 19. SEGMENT INFORMATION

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

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News and Information Services—The News and Information Services segment includes the Company’s global print, digital and broadcast radio media platforms. These product offerings include the global print and digital versions 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 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, Wireless Group, operator of talkSPORT, the leading sports radio network in the U.K., and Storyful, a social media content agency.

•

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 Harper, William Morrow, HarperCollins Children’s Books, Avon, Harlequin and Christian publishers Zondervan and Thomas Nelson, and publishes works by well-known authors such as Harper Lee, Patricia Cornwell, Chip and Joanna Gaines, Rick Warren, Sarah Young and Agatha Christie and popular titles such as The Hobbit, Goodnight Moon, To Kill a Mockingbird, Jesus Calling and Hillbilly Elegy.

•

Digital Real Estate Services—The Digital Real Estate Services segment consists of the Company’s interests in REA Group, Move and DIAKRIT. REA Group is a publicly traded company listed on the Australian Securities Exchange (ASX: REA) that advertises property and property-related services on its websites and mobile applications across Australia and Asia, including iProperty.com. 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 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 offers real estate advertising solutions to agents and brokers, including its Connections^SM for Buyers and Advantage^SM Pro products. Move also offers a number of professional software and services products, including Top Producer^®, FiveStreet^® 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 and Australian News Channel Pty Ltd (“ANC”). FOX SPORTS Australia is the leading sports programming provider in Australia, with eight 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, Australian Rugby Union and various motorsports programming.

ANC, acquired in December 2016, operates the SKY NEWS network, Australia’s 24-hour multi-channel, multi-platform news service. ANC channels are broadcast throughout Australia and New Zealand and available on Foxtel and Sky Television. ANC also owns and operates the international Australia Channel IPTV service and offers content across a variety of digital media platforms, including mobile, podcasts and social media websites.

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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, investments and dispositions.

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 (losses) earnings of affiliates, interest, net, other, net, income tax (expense) benefit 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).


	For the fiscal years ended June 30,
	2017			2016			2015
	(in millions)
Revenues:
News and Information Services	$	5,069		$	5,338		$	5,731
Book Publishing		1,636			1,646			1,667
Digital Real Estate Services		938			822			625
Cable Network Programming		494			484			500
Other		2			2			1

Total Revenues		8,139			8,292			8,524

Segment EBITDA:
News and Information Services	$	414		$	214		$	603
Book Publishing		199			185			221
Digital Real Estate Services		324			344			201
Cable Network Programming		123			124			135
Other		(175	)		(183	)		(215	)
Depreciation and amortization		(449	)		(505	)		(498	)
Impairment and restructuring charges		(927	)		(89	)		(84	)
Equity (losses) earnings of affiliates		(295	)		30			58
Interest, net		39			43			56
Other, net		132			18			75

(Loss) income from continuing operations before income tax (expense) benefit		(615	)		181			552
Income tax (expense) benefit		(28	)		54			(185	)

(Loss) income from continuing operations	$	(643	)	$	235		$	367


	For the fiscal years ended June 30,
	2017		2016		2015
	(in millions)
Depreciation and amortization:
News and Information Services	$	283	$	347	$	365
Book Publishing		52		55		52
Digital Real Estate Services		78		69		44
Cable Network Programming		32		29		33
Other		4		5		4

Total Depreciation and amortization	$	449	$	505	$	498


	For the fiscal years ended June 30,
	2017		2016		2015
	(in millions)
Capital expenditures:
News and Information Services	$	165	$	174	$	238
Book Publishing		11		9		12
Digital Real Estate Services		66		64		45
Cable Network Programming		14		8		7
Other		—		1		6

Total Capital expenditures	$	256	$	256	$	308


	As of June 30,
	2017		2016
	(in millions)
Total assets:
News and Information Services	$	6,142	$	6,728
Book Publishing		1,845		1,855
Digital Real Estate Services		2,307		2,158
Cable Network Programming		1,194		1,101
Other^(a)		1,037		1,371
Investments		2,027		2,270

Total assets	$	14,552	$	15,483

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


	As of June 30,
	2017		2016
	(in millions)
Goodwill and intangible assets, net:
News and Information Services	$	2,952	$	2,651
Book Publishing		835		869
Digital Real Estate Services		1,420		1,499
Cable Network Programming		912		898
Other		—		4

Total Goodwill and intangible assets, net	$	6,119	$	5,921

Geographic Segments


	For the fiscal years ended June 30,
	2017		2016		2015
	(in millions)
Revenues:^(a)
U.S. and Canada^(b)	$	3,880	$	3,920	$	3,808
Europe^(c)		1,671		1,873		1,982
Australasia and Other^(d)		2,588		2,499		2,734

Total Revenues	$	8,139	$	8,292	$	8,524

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

^(b)	Revenues include approximately $3.7 billion for fiscal 2017, $3.8 billion for fiscal 2016 and $3.6 billion for fiscal 2015 from customers in the U.S.

^(c)	Revenues include approximately $1.3 billion for fiscal 2017, $1.5 billion for fiscal 2016 and $1.6 billion for fiscal 2015 from customers in the U.K.

^(d)	Revenues include approximately $2.3 billion for fiscal 2017, $2.3 billion for fiscal 2016 and $2.3 billion for fiscal 2015 from customers in Australia.


	As of June 30,
	2017		2016
	(in millions)
Long-lived assets:^(a)
U.S. and Canada	$	960	$	1,058
Europe		560		939
Australasia and Other		546		804

Total long-lived assets	$	2,066	$	2,801

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