Additional Financial Information

9 Months Ended

Mar. 31, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Additional Financial Information

NOTE 12. ADDITIONAL FINANCIAL INFORMATION

Other, net

The following table sets forth the components of Other, net included in the Unaudited Consolidated and Combined Statements of Operations:

	For the three months ended March 31,						For the nine months ended March 31,
	2019			2018			2019			2018
	(in millions)
Acquisition related and other transaction costs(a)	$	(106	)	$	(13	)	$	(184	)	$	(45	)
Unrealized gains on investments(b)		204			-			132			-
U.K. Newspaper Matters Indemnity(c)		(15	)		(22	)		(45	)		(19	)
Settlement loss related to pension plans(d)		-			(1	)		-			(51	)
Shareholder litigation settlement(e)		-			68			-			68
Other		1			(9	)		(19	)		(28	)
Total other, net	$	84		$	23		$	(116	)	$	(75	)

^(a) The acquisition related and other transaction costs for the three and nine months ended March 31, 2019 and 2018 are related to the Separation and the Distribution which includes retention related costs.

^(b) Represents the unrealized gains related to changes in fair value of the Company’s investment in Roku which are recognized in net income in accordance with ASU 2016-01 (See Note 1 – Description of Business and Basis of Presentation under the heading “Recently Adopted and Recently Issued Accounting Guidance and U.S. Tax Reform”).

^(c) See Note 9 – Commitments and Contingencies.

^(d) The settlement loss was primarily related to the Shared Plans (See Note 12 – Pension and Other Postretirement Benefits in the Form 10).

^(e) See Note 11 – Commitments and Contingencies under the heading “Shareholder Litigation” in the Form 10.

Receivables, net

Receivables are presented net of an allowance for doubtful accounts, which is an estimate of amounts that may not be collectible. Allowances for doubtful accounts as of March 31, 2019 and June 30, 2018 were $35 million and $28 million, respectively.

Income Taxes

The following table illustrates the overall changes in the Company’s net deferred tax (liabilities) assets for the nine months ended March 31, 2019.

	Net deferred tax (liabilities) assets
	(in millions)
Balance, June 30, 2018	$	(1,071	)
Tax basis step-up(a)		5,515
Other(b)		(759	)
Balance, March 31, 2019	$	3,685

^(a) As a result of the Separation and the Distribution, FOX obtained a tax basis in its assets equal to their respective fair market values. This amount represents the additional estimated deferred tax asset recorded as a result of the increased tax basis (See Note 1 – Description of Business and Basis of Presentation under the heading “Basis of Presentation”).

^(b) Includes other deferred tax adjustments recorded as of the date of the Distribution (See Note 8 – Related Party Transactions and Twenty-First Century Fox, Inc. Investment under the heading “Corporate Allocations and Twenty-First Century Fox, Inc. Investment”) and current year activity for the nine months ended March 31, 2019.

Other Non-Current Assets

The following table sets forth the components of Other non-current assets included in the Consolidated and Combined Balance Sheets:

	As of March 31, 2019		As of June 30, 2018
	(in millions)
Investments(a)	$	493	$	275
Inventories, net		221		121
Other(b)		462		363
Total other non-current assets	$	1,176	$	759

^(a) Includes an investment with a readily determinable fair value of $389 million and $257 million as of March 31, 2019 and June 30, 2018, respectively (See Note 4 – Fair Value). See Note 2 - Acquisitions, Disposals and Other Transactions for information on recent investments.

^(b) Other includes $243 million and $265 million as of March 31, 2019 and June 30, 2018, respectively, related to the Trust (as defined in Note 12 – Pension and Other Postretirement Benefits in the Form 10).

Accounts Payable, Accrued Expenses and Other Current Liabilities

The following table sets forth the components of Accounts payable, accrued expenses and other current liabilities included in the Consolidated and Combined Balance Sheets:

	As of March 31, 2019		As of June 30, 2018
	(in millions)
Accrued expenses	$	598	$	530
Program rights payable		404		380
Deferred revenue		103		147
Income taxes payable(a)		-		553
Other current liabilities		192		149
Total accounts payable, accrued expenses and other current liabilities	$	1,297	$	1,759

^(a) As discussed in Note 1 – Description of Business and Basis of Presentation, income tax items have been calculated as if the Company filed a separate return and was operating as a standalone business for purposes of the Company’s financial statements for the period prior to the Distribution. Therefore, tax balances reflected in the Consolidated and Combined Financial Statements may not be reflective of the Company’s actual tax balances prior to or subsequent to the Distribution. The amount of income taxes payable, for periods subsequent to the Distribution, represents the actual tax liabilities rather than the separate tax return methodology.

Other Liabilities

The following table sets forth the components of Other liabilities included in the Consolidated and Combined Balance Sheets:

	As of March 31, 2019		As of June 30, 2018
	(in millions)
Accrued noncurrent pension/postretirement liabilities(a)	$	479	$	244
Other noncurrent liabilities		384		178
Total other liabilities	$	863	$	422

^(a) The increase in accrued noncurrent pension/postretirement liabilities was related to the pension and other postretirement benefit assets and liabilities of the Shared Plans allocable to the Company’s employees transferred to the Company (See Note 10 – Pension and Other Postretirement Benefits).