Property, Plant and Equipment

12 Months Ended

Jun. 30, 2021

Property, Plant and Equipment [Abstract]

NOTE 7. PROPERTY, PLANT AND EQUIPMENT


	Useful Lives	As of June 30,
		2021		2020
		(in millions)
Land		$	131	$	123
Buildings and leaseholds	3 to 50 years	1,692		1,473
Digital set top units and installations	5 to 10 years	1,151		1,006
Machinery and equipment	2 to 20 years	1,809		1,680
Capitalized software	2 to 13 years	1,632		1,402
Finance lease right-of-use assets	15 years	138		124
		6,553		5,808
Less: accumulated depreciation and amortization(a)		(4,460)		(3,667)
		2,093		2,141
Construction in progress		179		115
Total Property, plant and equipment, net		$	2,272	$	2,256

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(a)Includes accumulated amortization of capitalized software of approximately $1,100 million and $921 million as of June 30, 2021 and 2020, respectively.

Depreciation and amortization related to property, plant and equipment was $568 million, $537 million and $533 million for the fiscal years ended June 30, 2021, 2020 and 2019, respectively. This includes amortization of capitalized software of $250 million, $231 million and $218 million for the fiscal years ended June 30, 2021, 2020 and 2019, respectively.

Fixed Asset Impairments

During the fiscal year ended June 30, 2020, the Company recognized total fixed asset impairment charges of $203 million at News UK and News Corp Australia. As part of the Company’s long-range planning process, the Company reduced its outlook for the U.K. and Australian newspapers due to the impact of adverse print advertising and print circulation trends on the future expected performance of the business, which were accelerated by the COVID-19 pandemic. As a result, the Company recognized non-cash impairment charges of approximately $148 million and $55 million related to the write-down of fixed assets at its U.K. newspapers and Australian newspapers reporting units, respectively. The write-downs were primarily related to print sites, printing presses and print related equipment and capitalized software. Significant unobservable inputs utilized in the income approach valuation method for News UK were a discount rate of 9.5% and a long-term growth rate of (1.0)% and for News Australia were a discount rate of 11.5% and a 0.0% long term growth rate.