NOTE 20. 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, the Company’s suite of professional information products, including Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires and DJX and its live journalism events. The Company also owns, among other publications, The Australian, The Daily Telegraph, Herald Sun, The Courier Mail and The Advertiser 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 global video advertising marketplace, 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 61.6% interest in REA Group and 80% interest in Move. The remaining 20% interest in Move is held by REA Group. REA Group is a market-leading digital media business specializing in property and is listed on the Australian Securities Exchange (“ASX”) (ASX: REA). REA Group advertises property and property-related services on its websites and mobile applications across Australia and Asia, including Australia’s leading residential and commercial property websites, realestate.com.au and realcommercial.com.au, and property portals in Asia. In addition, REA Group provides property-related data to the financial sector and financial services through an end-to-end digital property search and financing experience and a mortgage broking offering.

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.

•

Subscription Video Services—The Company’s Subscription Video Services segment provides video sports, entertainment and news services to pay-TV subscribers and other commercial licensees, primarily via cable, satellite and Internet Protocol, or IP, distribution, and consists of (i) its 65% interest in new Foxtel and (ii) Australian News Channel Pty Ltd (“ANC”). The remaining 35% interest in new Foxtel is held by Telstra, an ASX-listed telecommunications company. New Foxtel is the largest pay-TV provider in Australia, with over 200 channels covering sports, general entertainment, movies, documentaries, music, children’s programming and news and broadcast rights to live sporting events in Australia including: National Rugby League, Australian Football League, Cricket Australia, the domestic football league, the Australian Rugby Union and various motorsports programming.

ANC operates the SKY NEWS network, Australia’s 24-hour multi-channel, multi-platform news service. ANC channels are distributed throughout Australia and New Zealand and available on Foxtel and Sky Network Television NZ. 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 Group and costs related to the U.K. Newspaper Matters. The Company’s Strategy Group identifies new products and services across its businesses to increase revenues and profitability and targets and assesses potential acquisitions, investments and dispositions.

Segment EBITDA is defined as revenues less operating expenses and selling, general and administrative expenses and excluding the NAM Group and Zillow legal settlements. 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 fiscal years ended June 30,
	2018			2017			2016
	(in millions)
Revenues:
News and Information Services	$	5,119		$	5,069		$	5,338
Book Publishing		1,758			1,636			1,646
Digital Real Estate Services		1,141			938			822
Subscription Video Services		1,004			494			484
Other		2			2			2

Total Revenues	$	9,024		$	8,139		$	8,292

Segment EBITDA:
News and Information Services	$	392		$	414		$	214
Book Publishing		244			199			185
Digital Real Estate Services		401			324			344
Subscription Video Services		173			123			124
Other		(138	)		(175	)		(183	)
Depreciation and amortization		(472	)		(449	)		(505	)
Impairment and restructuring charges		(351	)		(927	)		(89	)
Equity (losses) earnings of affiliates		(1,006	)		(295	)		30
Interest, net		(7	)		39			43
Other, net		(325	)		132			18

(Loss) income from continuing operations before income tax (expense) benefit		(1,089	)		(615	)		181
Income tax (expense) benefit		(355	)		(28	)		54

Net (loss) income from continuing operations	$	(1,444	)	$	(643	)	$	235


	For the fiscal years ended June 30,
	2018		2017		2016
	(in millions)
Depreciation and amortization:
News and Information Services	$	223	$	283	$	347
Book Publishing		52		52		55
Digital Real Estate Services		87		78		69
Subscription Video Services		107		32		29
Other		3		4		5

Total Depreciation and amortization	$	472	$	449	$	505


	For the fiscal years ended June 30,
	2018		2017		2016
	(in millions)
Capital expenditures:
News and Information Services	$	173	$	165	$	174
Book Publishing		17		11		9
Digital Real Estate Services		78		66		64
Subscription Video Services		81		14		8
Other		15		—		1

Total Capital expenditures	$	364	$	256	$	256


	As of June 30,
	2018		2017
	(in millions)
Total assets:
News and Information Services	$	6,039	$	6,142
Book Publishing		1,898		1,845
Digital Real Estate Services		2,171		2,307
Subscription Video Services		4,738		1,194
Other^(a)		1,107		1,037
Investments		393		2,027

Total assets	$	16,346	$	14,552

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


	As of June 30,
	2018		2017
	(in millions)
Goodwill and intangible assets, net:
News and Information Services	$	2,730	$	2,952
Book Publishing		804		835
Digital Real Estate Services		1,502		1,420
Subscription Video Services		2,853		912
Other		—		—

Total Goodwill and intangible assets, net	$	7,889	$	6,119

Geographic Segments


	For the fiscal years ended June 30,
	2018		2017		2016
	(in millions)
Revenues:^(a)
U.S. and Canada^(b)	$	3,998	$	3,880	$	3,920
Europe^(c)		1,766		1,671		1,873
Australasia and Other^(d)		3,260		2,588		2,499

Total Revenues	$	9,024	$	8,139	$	8,292

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

^(b)	Revenues include approximately $3.9 billion for fiscal 2018, $3.7 billion for fiscal 2017 and $3.8 billion for fiscal 2016 from customers in the U.S.

^(c)	Revenues include approximately $1.4 billion for fiscal 2018, $1.3 billion for fiscal 2017 and $1.5 billion for fiscal 2016 from customers in the U.K.

^(d)	Revenues include approximately $2.9 billion for fiscal 2018, $2.3 billion for fiscal 2017 and $2.3 billion for fiscal 2016 from customers in Australia.


	As of June 30,
	2018		2017
	(in millions)
Long-lived assets:^(a)
U.S. and Canada	$	937	$	960
Europe		682		560
Australasia and Other		1,772		546

Total long-lived assets	$	3,391	$	2,066

^(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.