Investments (Tables)

12 Months Ended

Jun. 30, 2020

The Company’s investments were comprised of the following:


	Ownership Percentage as of June 30, 2020	As of June 30,
				2020		2019
		(in millions)
Equity method investments^(a)	various	$	120	$	148
Equity securities^(b)	various	177		187
Total Investments		$	297	$	335

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

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

Schedule of Total Gains and Losses on Equity Securities

The components comprising total gains and losses on equity securities are set forth below:


	For the fiscal year ended June 30,
	2020		2019		2018
	(in millions)
Total (losses) gains recognized on equity securities	$	(21)	$	(23)	$	35
Less: Net (losses) gains recognized on equity securities sold or impaired	—		—		7
Unrealized (losses) gains recognized on equity securities held at end of period	$	(21)	$	(23)	$	28

Schedule of Losses of Equity Affiliates

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


	For the fiscal year ended June 30,
	2020		2019		2018
	(in millions)
Foxtel^(a)	$	—	$	—	$	(974)
Other equity affiliates, net^(b)	(47)		(17)		(32)
Total Equity losses of affiliates	$	(47)	$	(17)	$	(1,006)

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(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 4—Acquisitions, Disposals and Other Transactions.

During the third quarter of fiscal 2018, the Company recognized a $957 million non-cash write-down of the carrying value of its investment in Foxtel. In the third quarter of fiscal 2018, the Company assessed the long-term prospects for Foxtel, on both a stand-alone and combined basis. As a result of lower-than-expected revenues from certain products and broadcast subscribers at Foxtel, the Company revised its outlook for Foxtel, which resulted in a reduction in expected future cash flows. Based on the revised projections, the Company concluded that the fair value of its investment in Foxtel declined below its carrying value. The assumptions utilized in the income approach valuation method were a discount rate of 10.25% and a long-term growth rate of 2.0%. The write-down was reflected in Equity losses of affiliates in the Statement of Operations for the fiscal year ended June 30, 2018.

During the fiscal year ended June 30, 2018, the Company amortized $49 million in accordance with ASC 350 related to excess cost over the Company’s proportionate share of its investment’s underlying net assets allocated to finite-lived intangible assets.

(b)Other equity affiliates, net for the fiscal years ended June 30, 2020, 2019 and 2018 include losses primarily from the Company’s interest in Elara. Additionally, during the fiscal years ended June 30, 2020 and 2018, the Company recognized non-cash write-downs of $32 million and $13 million, respectively, on certain equity method investments. The write-downs are reflected in Equity losses of affiliates in the Statements of Operations.

Schedule of Summarized Financial Information

Summarized financial information for Foxtel for fiscal 2018 through April 2, 2018, presented in accordance with U.S. GAAP, was as follows (in millions):


Revenues	$	1,818
Operating income^(a)	155
Net income	64

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(a)Includes Depreciation and amortization of $187 million for the period ended April 2, 2018. Operating income before depreciation and amortization was $342 million for the period ended April 2, 2018.