Related Party Transactions and Twenty-First Century Fox, Inc. Investment (Tables)

9 Months Ended

Mar. 31, 2019

Schedule of Net Revenue from Related Parties

The following table sets forth the net revenue from related parties 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)
Related party revenue	$	111		$	42		$	289		$	174
Related party expense		(33	)		(18	)		(67	)		(67	)

Related party revenue, net of expense	$	78		$	24		$	222		$	107

Schedule of Components of Net (Decrease) Increase in Twenty-First Century Fox, Inc. Investment

The following table summarizes the components of the net (decrease) increase in the Twenty-First Century Fox, Inc. investment for the three and nine months ended March 31, 2019 and 2018:

	For the three months ended March 31,					For the nine months ended March 31,
	2019			2018		2019			2018
	(in millions)
Cash pooling, general financing activities and other^(a)	$	(1,523	)	$	607	$	(1,537	)	$	928
Corporate allocations		111			93		291			230
Net dividend paid to Twenty-First Century Fox, Inc.		(6,500	)		-		(6,500	)		-
Taxes payable^(b)		593			-		593			-
Deferred taxes on step-up^(c)		5,515			-		5,515			-
Other deferred taxes⁽^c⁾		(481	)		-		(481	)		-

Net (decrease) increase in Twenty-First Century Fox, Inc. investment	$	(2,285	)	$	700	$	(2,119	)	$	1,158

^(a)

The nature of activities included in the line item ‘Cash pooling, general financing activities and other’ includes financing activities, capital transfers, cash sweeps, other treasury services and Direct Corporate Expenses. As part of this activity and prior to December 31, 2017, the majority of the cash balances were swept to 21CF on a daily basis and the Company received capital from 21CF for the Company’s cash needs. Effective January 1, 2018, the Company ceased participating in 21CF’s capital and cash management accounts.

^(b)

For purposes of the Company’s financial statements for the periods prior to the Distribution, the income tax (expense) benefit in the Unaudited Consolidated and Combined Statements of Operations has been calculated as if FOX filed a separate tax return and was operating as a standalone business. This amount represents the difference between the separate tax return methodology and the actual tax liabilities attributed to the Company, in accordance with applicable tax law, as of the date of the Distribution.

^(c)

As a result of the Separation and the Distribution, FOX obtained an additional tax basis in its assets equal to their respective fair market values. These amounts represent 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”) and other deferred tax adjustments recorded as of the date of the Distribution.