Revenues (Tables)

9 Months Ended

Mar. 31, 2019

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 nine months ended March 31, 2019 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 March 31, 2019
	ASC 605			Effects of Adoption			ASC 606
	(in millions)
Revenue:
Circulation and subscription	$	1,019		$	6		$	1,025
Advertising		673			(3	)		670
Consumer		420			(17	)		403
Real estate		218			—			218
Other		144			(3	)		141
Total Revenues	$	2,474		$	(17	)	$	2,457
Operating expenses and Selling, general and administrative	$	(2,228	)	$	18		$	(2,210	)
Net income	$	22		$	1		$	23

	For the nine months ended March 31, 2019
	ASC 605			Effects of Adoption			ASC 606
	(in millions)
Revenue:
Circulation and subscription	$	3,076		$	12		$	3,088
Advertising		2,055			(3	)		2,052
Consumer		1,328			(47	)		1,281
Real estate		693			—			693
Other		510			(16	)		494
Total Revenues	$	7,662		$	(54	)	$	7,608
Operating expenses and Selling, general and administrative	$	(6,706	)	$	73		$	(6,633	)
Net income	$	256		$	14		$	270

	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 nine months ended March 31, 2019:

	For the three months ended March 31, 2019
	News and Information Services		Subscription Video Services		Book Publishing		Digital Real Estate Services		Other		Total Revenues
	(in millions)
Revenues:
Circulation and subscription	$	538	$	474	$	—	$	12	$	1	$	1,025
Advertising		593		50		—		27		—		670
Consumer		—		—		403		—		—		403
Real estate		—		—		—		218		—		218
Other		93		15		18		15		—		141
Total Revenues	$	1,224	$	539	$	421	$	272	$	1	$	2,457

	For the nine months ended March 31, 2019
	News and Information Services		Subscription Video Services		Book Publishing		Digital Real Estate Services		Other		Total Revenues
	(in millions)
Revenues:
Circulation and subscription	$	1,593	$	1,455	$	—	$	39	$	1	$	3,088
Advertising		1,801		162		—		89		—		2,052
Consumer		—		—		1,281		—		—		1,281
Real estate		—		—		—		693		—		693
Other		335		49		54		55		1		494
Total Revenues	$	3,729	$	1,666	$	1,335	$	876	$	2	$	7,608

Summary of Deferred Revenue from Contracts with Customers

The following table presents changes in the deferred revenue balance for the three and nine months ended March 31, 2019:

	For the three months ended March 31, 2019			For the nine months ended March 31, 2019
	(in millions)			(in millions)
Balance, beginning of period	$	430		$	510
Deferral of revenue		934			2,271
Recognition of deferred revenue(a)		(883	)		(2,300	)
Other		(21	)		(21	)
Balance, end of period	$	460		$	460

(a) For the three and nine months ended March 31, 2019, the Company recognized approximately $241 million and $461 million, respectively, of revenue which was included in the opening deferred revenue balance for each of the respective periods.