XML 26 R11.htm IDEA: XBRL DOCUMENT v3.21.2
Revenues
 12 Months Ended
Jun. 30, 2021
Revenue from Contract with Customer [Abstract]  
Revenues
NOTE 3. REVENUES
On July 1, 2018, the Company adopted ASC 606 “Revenue from Contracts with Customers” (“ASC 606”) on a modified retrospective basis for all contracts which were not completed as of the adoption date. Under ASC 606, revenue is recognized when or as the Company satisfies its respective performance obligations under each contract. The Company recorded a $20 million decrease to Accumulated deficit as of July 1, 2018 to reflect the cumulative impact of its adoption of ASC 606.
Disaggregated revenue
The following tables present the Company’s disaggregated revenues by type and segment for the fiscal years ended June 30, 2021, 2020 and 2019:
For the fiscal year ended June 30, 2021
Digital Real
Estate
Services
Subscription
Video
Services
Dow Jones
Book
Publishing
News Media
Other
Total
Revenues
(in millions)
Revenues:
Circulation and subscription
$25 $1,825 $1,296 $— $1,060 $— $4,206 
Advertising
126 210 373 — 885 — 1,594 
Consumer
— — — 1,908 — — 1,908 
Real estate
1,153 — — — — — 1,153 
Other
89 37 33 77 260 1 497 
Total Revenues
$1,393 $2,072 $1,702 $1,985 $2,205 $1 $9,358 
For the fiscal year ended June 30, 2020
Digital Real
Estate
Services
Subscription
Video
Services
Dow Jones
Book
Publishing
News Media
Other
Total
Revenues
(in millions)
Revenues:
Circulation and subscription
$36 $1,673 $1,191 $— $956 $1 $3,857 
Advertising
98 174 359 — 1,562 — 2,193 
Consumer
— — — 1,593 — — 1,593 
Real estate
862 — — — — — 862 
Other
69 37 40 73 283 1 503 
Total Revenues
$1,065 $1,884 $1,590 $1,666 $2,801 $2 $9,008 
For the fiscal year ended June 30, 2019
Digital Real
Estate
Services
Subscription
Video
Services
Dow Jones
Book
Publishing
News Media
Other
Total
Revenues
(in millions)
Revenues:
Circulation and subscription
$49 $1,926 $1,120 $— $1,008 $1 $4,104 
Advertising
122 215 393 — 2,007 1 2,738 
Consumer
— — — 1,679 — — 1,679 
Real estate
908 — — — — — 908 
Other
80 61 36 75 392 1 645 
Total Revenues
$1,159 $2,202 $1,549 $1,754 $3,407 $3 $10,074 
Contract liabilities and assets
The Company’s deferred revenue balance primarily relates to amounts received from customers for subscriptions paid in advance of the services being provided. The following table presents changes in the deferred revenue balance for the fiscal years ended June 30, 2021 and 2020:
For the fiscal year ended June 30,
20212020
(in millions)
Beginning balance$398 $428 
Deferral of revenue
3,152 3,091 
Recognition of deferred revenue (a)
(3,109)(3,064)
Other (b)
32 (57)
Ending balance$473 $398 
________________________
(a)For the fiscal years ended June 30, 2021 and 2020, the Company recognized approximately $381 million and $384 million, respectively, of revenue which was included in the opening deferred revenue balance.
(b)For the fiscal year ended June 30, 2021, includes $16 million of deferred revenue acquired as a result of the acquisition of IBD. For the fiscal year ended June 30, 2020, the Company disposed of $51 million of deferred revenue in connection with the sale of News America Marketing. See Note 4—Acquisitions, Disposals and Other Transactions.
Contract assets were immaterial for disclosure as of June 30, 2021 and 2020.
Other revenue disclosures
The Company typically expenses sales commissions incurred to obtain a customer contract as those amounts are incurred as the amortization period is 12 months or less. These costs are recorded within Selling, general and administrative in the Statements of Operations. The Company also does not capitalize significant financing components when the transfer of the good or service is paid within 12 months or less, or the receipt of consideration is received within 12 months or less of the transfer of the good or service.
During the fiscal year ended June 30, 2021, the Company recognized approximately $392 million in revenues related to performance obligations that were satisfied or partially satisfied in a prior reporting period. The remaining transaction price related to unsatisfied performance obligations as of June 30, 2021 was approximately $820 million, of which approximately $302 million is expected to be recognized during fiscal 2022, $244 million is expected to be recognized in fiscal 2023 and $169 million is expected to be recognized in fiscal 2024, with the remainder to be recognized thereafter. These amounts do not include (i) contracts with an expected duration of one year or less, (ii) contracts for which variable consideration is determined based on the customer’s subsequent sale or usage and (iii) variable consideration allocated to performance obligations accounted for under the series guidance that meets the allocation objective under ASC 606.