Impairment and Restructuring Charges

6 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Impairment and Restructuring Charges

NOTE 3. IMPAIRMENT AND RESTRUCTURING CHARGES

Fiscal 2020

During the three months ended December 31, 2019, the Company recognized a non-cash impairment charge of $19 million related to a reporting unit in the News and Information Services segment.  

During the six months ended December 31, 2019, the Company recognized non-cash impairment charges of $292 million, primarily related to the impairment of goodwill and indefinite-lived intangible assets at the News America Marketing reporting unit. As a result of the Company’s continued review of strategic options for the News America Marketing business, and other market indicators, the Company determined that the fair value of the reporting unit was less than its carrying value. As a result, the Company recorded a $122 million non-cash impairment charge to goodwill and a $113 million non-cash impairment charge to intangible assets. The assumptions utilized in the income approach valuation method for News America Marketing were discount rates (ranging from 17.0%-18.5%) and long-term growth rates (ranging from 0.6%-1.5%).

During the three and six months ended December 31, 2019, the Company recorded restructuring charges of $10 million and $34 million, respectively, of which $7 million and $26 million, respectively, related to the News and Information Services segment. The restructuring charges recorded in fiscal 2020 were for employee termination benefits.

Fiscal 2019

During the three and six months ended December 31, 2018, the Company recorded restructuring charges of $19 million and $37 million, respectively, of which $15 million and $32 million, respectively, related to the News and Information Services segment. The restructuring charges recorded in fiscal 2019 were for employee termination benefits.

Changes in restructuring program liabilities were as follows:

	For the three months ended December 31,
	2019											2018
	One time											One time
	employee			Facility								employee			Facility
	termination			related								termination			related
	benefits			costs		Other costs			Total			benefits			costs		Other costs		Total
	(in millions)
Balance, beginning of period	$	22		$	—	$	10		$	32		$	23		$	2	$	11	$	36
Additions		10			—		—			10			19			—		—		19
Payments		(17	)		—		(1	)		(18	)		(21	)		—		—		(21	)
Other		1			—		—			1			(1	)		—		—		(1	)
Balance, end of period	$	16		$	—	$	9		$	25		$	20		$	2	$	11	$	33

	For the six months ended December 31,
	2019												2018
	One time												One time
	employee			Facility									employee			Facility
	termination			related									termination			related
	benefits			costs			Other costs			Total			benefits			costs		Other costs			Total
	(in millions)
Balance, beginning of period	$	28		$	2		$	10		$	40		$	29		$	2	$	11		$	42
Additions		34			—			—			34			37			—		—			37
Payments		(46	)		—			(1	)		(47	)		(44	)		—		(1	)		(45	)
Other		—			(2	)		—			(2	)		(2	)		—		1			(1	)
Balance, end of period	$	16		$	—		$	9		$	25		$	20		$	2	$	11		$	33

As of December 31, 2019, restructuring liabilities of approximately $16 million were included in the Balance Sheet in Other current liabilities and $9 million were included in Other non-current liabilities.