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

9 Months Ended

Mar. 31, 2020

Related Party Transactions [Abstract]

Schedule of Net Revenue from Related Parties

The following table sets forth the net revenue from related parties included in the Statements of Operations for the three and nine months ended March 31, 2019:

	For the three months ended March 31, 2019			For the nine months ended March 31, 2019
	(in millions)
Related party revenue	$	111		$	289
Related party expense		(33	)		(67	)
Related party revenue, net of expense	$	78		$	222

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

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

	For the three months ended March 31, 2019			For the nine months ended March 31, 2019
	(in millions)
Cash pooling, general financing activities and other(a)	$	(1,523	)	$	(1,537	)
Corporate allocations		111			291
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 in Twenty-First Century Fox, Inc. investment	$	(2,285	)	$	(2,119	)

^(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.

^(b) For purposes of the Company’s financial statements for the periods prior to the Distribution, the income tax expense in the 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 in the 2019 Form 10-K under the heading “Basis of Presentation”) and other deferred tax adjustments recorded as of the date of the Distribution.