Equity-Based Compensation (Tables)

9 Months Ended

Mar. 31, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Target Performance Stock Units and Restricted Stock Units Settled in Stock

The following table summarizes the activity related to target PSUs and RSUs granted to the Company’s employees to be settled in stock (PSUs and RSUs in thousands):

	For the nine months ended March 31, 2019
	Number of shares			Weighted average grant- date fair value(a)
PSUs and RSUs
Unvested units at beginning of the year		10,896		$	29.77
Granted prior to the Distribution		1,565			46.11
Vested		(4,882	)		29.54
Cancelled		(3,121	)		29.73
Net units granted in conversion, as a result of the Separation(b)		1,011		N/A
Subtotal of unvested units after the conversion		5,469			29.17
Granted after the Distribution		2,405			40.14
Unvested units at the end of the period(c)		7,874		$	32.52

^(a) The weighted average grant date fair value prior to the Distribution represents the fair value of awards granted with respect to 21CF Class A Common Stock prior to the conversion of the awards to FOX equity awards. The weighted average grant date fair value of the unvested units after the conversion represents the fair value of awards using the applicable conversion ratio.

^(b) As disclosed above, 21CF RSUs and PSUs scheduled to vest after 2019 were converted into new equity awards of the Company, using a formula designed to preserve the value of the awards immediately prior to the Distribution. In addition, the 50% of the 21CF retention RSUs that were not accelerated and paid out in shares of 21CF class A common stock were converted into new FOX RSUs and Disney RSUs on the same pro rata basis accorded to shareholders of 21CF common stock in the mergers contemplated by the 21CF Disney Merger Agreement.

^(c) The intrinsic value of these unvested RSUs was approximately $290 million as of March 31, 2019.

Assumptions Used for Estimated Fair Value of Stock Option Grants

The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions used for grants during the nine months ended March 31, 2019:

	For the nine months ended March 31, 2019
Expected volatility		26.50	%
Risk-free interest rate		2.41	%
Expected dividend yield		1.12	%
Expected term of stock options	3.84 years

Summary of Equity-Based Compensation

The following table summarizes the Company’s equity-based compensation:

	For the three months ended March 31,				For the nine months ended March 31,
	2019		2018		2019		2018
	(in millions)
Equity-based compensation(a)	$	38	$	41	$	71	$	69
Intrinsic value of all settled equity-based awards	$	130	$	-	$	240	$	31

^(a) Prior to the Distribution, equity-based compensation included allocated expense for both executive directors and corporate executives of 21CF, allocated using a proportional allocation driver, which management has deemed to be reasonable.