NOTE 10. 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 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.

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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 is responsible for identifying 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. Segment EBITDA does not include: depreciation and amortization, impairment and restructuring charges, equity losses 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 three months ended						For the six months ended
	December 31,						December 31,
	2017			2016			2017			2016
	(in millions)

Revenues:
News and Information Services	$	1,298		$	1,303		$	2,539		$	2,525
Book Publishing		469			466			870			855
Digital Real Estate Services		292			242			563			468
Cable Network Programming		120			104			265			232
Other		1			1			1			1

Total revenues	$	2,180		$	2,116		$	4,238		$	4,081

Segment EBITDA:
News and Information Services	$	140		$	142		$	213		$	188
Book Publishing		80			75			130			123
Digital Real Estate Services		119			95			214			162
Cable Network Programming		33			51			60			65
Other		(43	)		(38	)		(39	)		(83	)
Depreciation and amortization		(100	)		(120	)		(197	)		(240	)
Impairment and restructuring charges		(12	)		(356	)		(27	)		(376	)
Equity losses of affiliates		(18	)		(238	)		(28	)		(253	)
Interest, net		1			15			7			22
Other, net		(31	)		123			(23	)		140

Income (loss) before income tax (expense) benefit		169			(251	)		310			(252	)
Income tax (expense) benefit		(235	)		32			(289	)		33

Net income (loss)	$	(66	)	$	(219	)	$	21		$	(219	)


	As of		As of
	December 31, 2017		June 30, 2017
	(in millions)
Total assets:
News and Information Services	$	6,065	$	6,142
Book Publishing		1,907		1,845
Digital Real Estate Services		2,166		2,307
Cable Network Programming		1,216		1,194
Other^(a)		986		1,037
Investments		2,019		2,027

Total assets	$	14,359	$	14,552

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


	As of		As of
	December 31, 2017		June 30, 2017
	(in millions)
Goodwill and intangible assets, net:
News and Information Services	$	2,957	$	2,952
Book Publishing		837		835
Digital Real Estate Services		1,489		1,420
Cable Network Programming		915		912
Other		—		—

Total goodwill and intangible assets, net	$	6,198	$	6,119