NOTE 7. LOSS PER SHARE

The following tables set forth the computation of basic and diluted loss per share under ASC 260, “Earnings per Share”:


	For the three months ended December 31,						For the six months ended December 31,
	2017			2016			2017			2016
	(in millions, except per share amounts)
Net (loss) income	$	(66	)	$	(219	)	$	21		$	(219	)
Less: Net income attributable to noncontrolling interests		(17	)		(70	)		(36	)		(85	)
Less: Redeemable preferred stock dividends^(a)		(1	)		(1	)		(1	)		(1	)

Net loss available to News Corporation stockholders	$	(84	)	$	(290	)	$	(16	)	$	(305	)


Weighted-average number of shares of common stock outstanding - basic		582.7			581.4			582.5			581.1
Dilutive effect of equity awards^(b)		—			—			—			—

Weighted-average number of shares of common stock outstanding - diluted		582.7			581.4			582.5			581.1

Net loss available to News Corporation stockholders per share - basic	$	(0.14	)	$	(0.50	)	$	(0.03	)	$	(0.52	)
Net loss available to News Corporation stockholders per share - diluted	$	(0.14	)	$	(0.50	)	$	(0.03	)	$	(0.52	)

(a)

In connection with the Separation, as defined in Note 8, Twenty-First Century Fox, Inc. (“21st Century Fox”) sold 4,000 shares of cumulative redeemable preferred stock with a par value of $5,000 per share of a newly formed U.S. subsidiary of the Company. The preferred stock pays dividends at a rate of 9.5% per annum, payable quarterly. The preferred stock is callable by the Company at any time after the fifth year and is puttable at the option of the holder after 10 years.

(b)

The dilutive impact of the Company’s PSUs, RSUs and stock options has been excluded from the calculation of diluted loss per share for the three and six months ended December 31, 2017 and the three and six months ended December 31, 2016 because their inclusion would have an antidilutive effect on the net loss per share.