Investments (Tables)

6 Months Ended

Dec. 31, 2018

Investments Schedule [Abstract]

Schedule of Investments

The Company’s investments were comprised of the following:

	Ownership Percentage as of December 31, 2018		As of December 31, 2018		As of June 30, 2018
			(in millions)
Equity method investments(a)		various	$	164	$	173
Equity securities(b)		various		181		220
Total Investments			$	345	$	393

(a) Equity method investments are primarily comprised of Elara Technologies Pte. Ltd., which operates PropTiger.com, Makaan.com. and Housing.com and new Foxtel’s investment in Nickelodeon Australia Joint Venture.

(b) Equity securities are primarily comprised of the Company’s investment in HT&E Limited, which operates a portfolio of Australian radio and outdoor media assets and certain investments in China.

Schedule of Total Gains and Losses on Equity Securities

The Company has equity securities with quoted prices in active markets as well as equity securities without readily determinable fair market values. Equity securities without readily determinable fair market values are valued at cost, less any impairment, plus or minus changes in fair value resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. The components comprising total gains and losses on equity securities are set forth below:

	For the three months ended December 31,						For the six months ended December 31,
	2018			2017			2018			2017
	(in millions)						(in millions)
Total (losses) gains recognized on equity securities	$	(44	)	$	2		$	(29	)	$	(17	)
Less: Losses recognized on equity securities sold or impaired		—			(30	)		—			(24	)
Unrealized (losses) gains recognized on equity securities held at end of period	$	(44	)	$	32		$	(29	)	$	7

Schedule of Losses of Equity Affiliates

The Company’s share of the (losses) earnings of its equity affiliates was as follows:

	For the three months ended December 31,						For the six months ended December 31,
	2018			2017			2018			2017
	(in millions)						(in millions)
Foxtel(a)	$	—		$	1		$	—		$	(4	)
Other equity affiliates, net(b)		(6	)		(19	)		(9	)		(24	)
Total Equity losses of affiliates	$	(6	)	$	(18	)	$	(9	)	$	(28	)

(a) Following completion of the Transaction in April 2018, News Corp ceased accounting for Foxtel as an equity method investment and began consolidating its results in the fourth quarter of fiscal 2018. See Note 3— Acquisitions, Disposals and Other Transactions.

In accordance with ASC 350, the Company amortized $15 million and $32 million related to excess cost over the Company’s proportionate share of its investment’s underlying net assets allocated to finite-lived intangible assets during the three and six months ended December 31, 2017. Such amortization is reflected in Equity losses of affiliates in the Statement of Operations. 

(b) Other equity affiliates, net for the three and six months ended December 31, 2018 include losses primarily from the Company’s interest in Elara. During the three months ended December 31, 2017, the Company recognized $13 million in non-cash write-downs of certain equity method investments’ carrying values to fair value. The write-downs are reflected in Equity losses of affiliates in the Statements of Operations for the three and six months ended December 31, 2017.

Schedule of Summarized Financial Information

Summarized financial information for Foxtel, presented in accordance with U.S. GAAP, was as follows:

	For the six months ended December 31,
	2018(a)		2017
	(in millions)
Revenues	$	—	$	1,231
Operating income(b)		—		120
Net income		—		56

(a) The Company began consolidating the results of Foxtel in the fourth quarter of fiscal 2018 as a result of the Transaction.

(b) Includes Depreciation and amortization of $118 million for the six months ended December 31, 2017. Operating income before depreciation and amortization was $238 million for the six months ended December 31, 2017.