Property, Plant and Equipment

12 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

NOTE 7. PROPERTY, PLANT AND EQUIPMENT

	Original Useful Lives	As of June 30,
		2022		2021
		(in millions)
Land		$	120	$	131
Buildings and leaseholds	3 to 50 years	1,478		1,692
Digital set top units and installations	5 to 10 years	1,109		1,151
Machinery and equipment	2 to 20 years	1,278		1,809
Capitalized software	2 to 15 years	1,707		1,632
Finance lease right-of-use assets	15 years	124		138
		5,816		6,553
Less: accumulated depreciation and amortization(a)		(3,933)		(4,460)
		1,883		2,093
Construction in progress		220		179
Total Property, plant and equipment, net		$	2,103	$	2,272

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(a)Includes accumulated amortization of capitalized software of approximately $1,135 million and $1,100 million as of June 30, 2022 and 2021, respectively.

Depreciation and amortization related to property, plant and equipment was $548 million, $568 million and $537 million for the fiscal years ended June 30, 2022, 2021 and 2020, respectively. This includes amortization of capitalized software of $263 million, $250 million and $231 million for the fiscal years ended June 30, 2022, 2021 and 2020, respectively.

Fixed Asset Impairments

During the fiscal year ended June 30, 2022, the Company recognized non-cash impairment charges of $15 million related to the write-down of fixed assets associated with the shutdown and anticipated sale of certain U.S. printing facilities at the Dow Jones segment.

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.