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Goodwill and Other Intangible Assets (Tables)
 12 Months Ended
Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Carrying Values of Intangible Assets and Related Accumulated Amortization

The carrying values of the Company’s intangible assets and related accumulated amortization for the fiscal years ended June 30, 2018 and June 30, 2017 were as follows:

 

     As of June 30,  
     2018      2017  
     (in millions)  

Intangible Assets Not Subject to Amortization

      

Trademarks and tradenames

    $ 441      $ 179  

Newspaper mastheads

      298        299  

Distribution networks

      308        390  

Imprints

      239        237  

Radio broadcast licenses

      188        185  
  

 

 

     

 

 

  

Total intangible assets not subject to amortization

      1,474        1,290  
  

 

 

     

 

 

  

Intangible Assets Subject to Amortization

      

Channel distribution agreements(a)

      —        335  

Publishing rights(b)

      299        329  

Customer relationships(c)

      849        310  

Other(d)

      49        17  
  

 

 

     

 

 

  

Total intangible assets subject to amortization, net

      1,197        991  
  

 

 

     

 

 

  

Total Intangible assets, net

    $ 2,671      $ 2,281  
  

 

 

     

 

 

  

 

(a) 

Net of accumulated amortization of $76 million as of June 30, 2017. As a result of the Transaction, the Company settled the pre-existing contractual arrangement between FOX SPORTS Australia and Foxtel. The settlement resulted in a write-off of the channel distribution agreement intangible asset, which was reflected in Other, net in the Statements of Operations. See Note 3—Acquisition, Disposals and Other Transactions.
(b)

Net of accumulated amortization of $213 million and $181 million as of June 30, 2018 and 2017, respectively. The useful lives of publishing rights range from 4 to 30 years primarily based on the weighted-average remaining contractual terms of the underlying publishing contracts and the Company’s estimates of the period within those terms that the asset is expected to generate a majority of its future cash flows.
(c)

Net of accumulated amortization of $447 million and $399 million as of June 30, 2018 and 2017, respectively. The useful lives of customer relationships range from 2 to 25 years. The useful lives of these assets are estimated by applying historical attrition rates and determining the resulting period over which a majority of the accumulated undiscounted cash flows related to the customer relationships are expected to be generated.
(d)

Net of accumulated amortization of $87 million and $83 million as of June 30, 2018 and 2017, respectively. The useful lives of other intangible assets range from 2 to 15 years. The useful lives represent the periods over which these intangible assets are expected to contribute directly or indirectly to the Company’s future cash flows. During fiscal 2018, New America Marketing’s FSI media distribution network was determined to no longer have an indefinite life due to the impact of changes from print circulation trends within the newspaper industry which is expected to continue to contract in the future, as consumers move to more digital products.
Schedule of Changes in Carrying Value of Goodwill, by Segment

The changes in the carrying value of goodwill, by segment, are as follows:

 

     News and
Information
Services		     Book
Publishing		     Digital Real
Estate
Services		     Subscription
Video Services		     Other     Total
Goodwill		  
     (in millions)  

Balance, June 30, 2016

    $ 1,765     $ 260     $ 1,209     $ 476     $ 4     $ 3,714  

Acquisitions

      136       10       2       11       —       159  

Impairments(a)

      (20 )      —       (24 )      —       (4 )      (48 ) 

Dispositions(b)

      —       —       (20 )      —       —       (20 ) 

Foreign currency movements

      3       1       16       13       —       33  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance, June 30, 2017

    $ 1,884     $ 271     $ 1,183     $ 500     $ —     $ 3,838  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Acquisitions(c)

      2       —       123       1,574       —       1,699  

Impairments(d)

      (158 )      —       (19 )      (41 )      —       (218 ) 

Dispositions

      —       —       —       —       —       —  

Foreign currency movements

      2       (4 )      (26 )      (73 )      —       (101 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance, June 30, 2018

    $ 1,730     $ 267     $ 1,261     $ 1,960     $ —     $ 5,218  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

In the News and Information Services segment, the write-down of goodwill primarily relates to a reporting unit in the U.K. In the Digital Real Estate Services segment, the write-down of goodwill relates to the Company’s DIAKRIT reporting unit.
(b)

Relates to REA Group’s sale of its European business.
(c)

Primarily relates to the Transaction in the Subscription Video Services segment and the acquisition of Smartline and Hometrack in the Digital Real Estate Services segment.
(d)

In the News and Information Services segment, the write-down of goodwill primarily relates to the News America Marketing reporting unit, and in the Subscription Video Services segment the write-down primarily relates to the FOX SPORTS Australia reporting unit. In the Digital Real Estate Services segment, the write-down of goodwill relates to the Company’s DIAKRIT reporting unit.