Equity-Based Compensation (Tables)

12 Months Ended

Jun. 30, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Target Performance Stock Units and Restricted Stock Units Granted to be 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):

	Fiscal 2019					Fiscal 2018					Fiscal 2017
	Number of shares			Weighted average grant- date fair value(a)		Number of shares			Weighted average grant- date fair value(a)		Number of shares			Weighted average grant- date fair value(a)
PSUs and RSUs
Unvested units at beginning of the year		10,896		$	29.77		7,102		$	28.62		6,125		$	32.96
Granted prior to the Distribution		1,565			46.11		5,698			32.21		3,312			24.49
Vested		(5,070	)		30.07		(1,112	)		34.59		(1,297	)		34.91
Cancelled		(3,166	)		29.72		(792	)		30.28		(1,038	)		33.18
Net units granted in conversion, as a result of the Separation(b)		1,011		N/A			-			-		-			-
Granted after the Distribution		2,424			40.11		-			-		-			-
Unvested units at the end of the year(c)		7,660		$	32.27		10,896		$	29.77		7,102		$	28.62

^(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 and certain 21CF RSUs that were scheduled to vest during 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 Retention RSUs that were not paid out in shares of 21CF class A common stock were converted into 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 $280 million as of June 30, 2019.

Summary of Stock Options Granted under SAP

The following table summarizes information about the Company’s stock options granted under the SAP (options in thousands).

	Fiscal 2019
	Number of options			Weighted average exercise price
Outstanding at the beginning of the year		-		$	-
Granted		3,118			40.25
Cancelled		(5	)		40.26
Outstanding at the end of the year(a)		3,113		$	40.25
Weighted average grant-date fair value of options granted				$	8.67
Weighted average remaining contractual term of options outstanding at the end of the year				6.72 years

^(a) The intrinsic value of options outstanding at June 30, 2019 was nil.

Weighted Average 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 weighted average assumptions used for grants during fiscal 2019:

	For the year ended June 30, 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 years ended June 30,
	2019		2018		2017
	(in millions)
Equity-based compensation(a)	$	103	$	100	$	57
Intrinsic value of all settled equity-based awards	$	247	$	31	$	38
Tax benefit on vested equity-based awards	$	47	$	9	$	14

^(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.