Revenues (Tables)

6 Months Ended

Dec. 31, 2018

Revenue from Contract with Customer [Abstract]

Summary of Cumulative Effect and Impact of Adoption of ASC 606 on Consolidated Statement of Operations and Consolidated Balance Sheets

The Company’s revenues and expenses for the three and six months ended December 31, 2018 and the opening balance sheet as of July 1, 2018 under both ASC 606 and the prior standard, ASC 605 are as follows:

	For the three months ended December 31, 2018
	ASC 605			Effects of Adoption			ASC 606
	(in millions)
Revenue:
Circulation and subscription	$	1,025		$	4		$	1,029
Advertising		718			—			718
Consumer		496			(18	)		478
Real estate		248			—			248
Other		160			(6	)		154
Total Revenues	$	2,647		$	(20	)	$	2,627
Operating expenses and Selling, general and administrative	$	(2,288	)	$	31		$	(2,257	)
Net income	$	111		$	8		$	119
	For the six months ended December 31, 2018
	ASC 605			Effects of Adoption			ASC 606
	(in millions)
Revenue:
Circulation and subscription	$	2,057		$	6		$	2,063
Advertising		1,382			—			1,382
Consumer		908			(30	)		878
Real estate		475			—			475
Other		366			(13	)		353
Total Revenues	$	5,188		$	(37	)	$	5,151
Operating expenses and Selling, general and administrative	$	(4,478	)	$	55		$	(4,423	)
Net income	$	234		$	13		$	247
	As of July 1, 2018
	ASC 605			Effects of Adoption			ASC 606
	(in millions)
Assets:
Receivables, net	$	1,612		$	200		$	1,812
Other current assets		372			(4	)		368
Deferred income tax assets		279			2			281
Other non-current assets		831			92			923
Liabilities and Equity:
Deferred revenue	$	516		$	(6	)	$	510
Other current liabilities		372			194			566
Deferred income tax liabilities		389			11			400
Other non-current liabilities		430			71			501
Accumulated deficit		(2,163	)		20			(2,143	)

Summary of Disaggregated Revenue by Type and Segment

Disaggregated revenue

The following table presents revenue by type and segment for the three and six months ended December 31, 2018:

	For the three months ended December 31, 2018
	News and Information Services		Subscription Video Services		Book Publishing		Digital Real Estate Services		Other		Total Revenues
	(in millions)
Revenues:
Circulation and subscription	$	526	$	490	$	—	$	13	$	—	$	1,029
Advertising		632		55		—		31		—		718
Consumer		—		—		478		—		—		478
Real estate		—		—		—		248		—		248
Other		99		17		18		19		1		154
Total Revenues	$	1,257	$	562	$	496	$	311	$	1	$	2,627

	For the six months ended December 31, 2018
	News and Information Services		Subscription Video Services		Book Publishing		Digital Real Estate Services		Other		Total Revenues
	(in millions)
Revenues:
Circulation and subscription	$	1,055	$	981	$	—	$	27	$	—	$	2,063
Advertising		1,208		112		—		62		—		1,382
Consumer		—		—		878		—		—		878
Real estate		—		—		—		475		—		475
Other		242		34		36		40		1		353
Total Revenues	$	2,505	$	1,127	$	914	$	604	$	1	$	5,151

Summary of Deferred Revenue from Contracts with Customers

The following table presents changes in the deferred revenue balance for the three and six months ended December 31, 2018:

	For the three months ended December 31, 2018			For the six months ended December 31, 2018
	(in millions)			(in millions)
Balance, beginning of period	$	436		$	510
Deferral of revenue		742			1,337
Recognition of deferred revenue(a)		(747	)		(1,417	)
Other		(1	)		—
Balance, end of period	$	430		$	430

(a) For the three and six months ended December 31, 2018, the Company recognized approximately $267 million and $421 million, respectively, of revenue which was included in the opening deferred revenue balance for each of the respective periods.