Equity-Based Compensation (Tables)

12 Months Ended

Jun. 30, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Restricted Stock Units and Target Performance Stock Units Granted to be Settled in Stock

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

	Fiscal 2020					Fiscal 2019						Fiscal 2018
	Number of shares			Weighted average grant- date fair value		Number of shares				Weighted average grant- date fair value(a)		Number of shares				Weighted average grant- date fair value(a)
RSUs and PSUs
Unvested units at beginning of    the year		7,660		$	32.27		10,896			$	29.77		7,102			$	28.62
Granted		2,499			32.44		1,565		(b)		46.11		5,698		(c)		32.21
Vested		(1,862	)		43.07		(5,070	)	(d)		30.07		(1,112	)			34.59
Cancelled		(254	)		27.14		(3,166	)			29.72		(792	)			30.28
Net units granted in conversion    as a result of the Separation		-			-		1,011		(b), (c)	N/A			-				-
Granted after conversion		-			-		2,424				40.11		-				-
Unvested units at the end of the    year(e)		8,043		$	29.98		7,660			$	32.27		10,896			$	29.77

^{(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 in fiscal 2019 represents the fair value of awards using the applicable conversion ratio.}

^{(b) In fiscal 2019, 21CF’s Compensation Committee granted approximately 1.6 million 21CF RSUs to certain employees of the Company that converted into FOX RSUs that will generally vest in August 2021.}

^{(c) In fiscal 2018, 21CF’s Compensation Committee granted approximately 3.1 million 21CF PSUs to certain employees of the Company that converted into FOX RSUs that will vest in August 2020. In addition, 21CF’s Compensation Committee made a special grant of approximately 2.6 million 21CF restricted stock units (“Retention RSUs”) to certain of the Company’s senior executives, including 21CF named executive officers. Approximately 50% of the Retention RSUs were paid out in shares of 21CF class A common stock and the remaining 50% 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 and vested in fiscal 2020.}

^{(d) The 21CF PSUs scheduled to vest in 2019 were accelerated and paid out and 50% of the Retention RSUs were paid out in shares of 21CF class A common stock in connection with the Distribution.}

^{(e) The intrinsic value of unvested RSUs and target PSUs as of June 30, 2020 was approximately $215 million.}

Summary of Stock Options Granted under SAP

The following table summarizes information about the Company’s stock options granted under the SAP during fiscal 2020 and 2019 (options in thousands).

	Fiscal 2020						Fiscal 2019
	Number of options				Weighted average exercise price		Number of options				Weighted average exercise price
Outstanding at the beginning of the year		3,113			$	40.25		-			$	-
Granted		3,838		(a)		30.87		3,118		(b)		40.25
Cancelled		(142	)			33.37		(5	)			40.26
Outstanding at the end of the year(c)		6,809			$	35.11		3,113			$	40.25
Exercisable at the end of the year(d)		1,626			$	39.30		-			$	-
Weighted average grant-date fair value of options    granted					$	6.87					$	8.67
Weighted average remaining contractual term of    options outstanding at the end of the year					5.98 years						6.72 years
Weighted average remaining contractual term of    options exercisable at the end of the year					5.50 years						N/A

^{(a) The stock options granted in fiscal 2020 generally have a term of seven years and vest in equal annual installments over a three-year period subject to the participants’ continued employment with the Company.}

^{(b) In connection with the Distribution, the Compensation Committee granted stock options in March 2019. Approximately 50% of the stock options vested on June 15, 2020 and 50% will vest on June 15, 2021 subject to a service requirement through the vesting date. The options will expire approximately seven years from the grant date.}

^{(c) The intrinsic value of options outstanding as of June 30, 2020 and 2019 was $2.8 million and nil, respectively.}

^(d) The intrinsic value of options exercisable as of June 30, 2020 and 2019 was $0.7 million and nil, respectively.

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 2020 and 2019:

	For the years ended June 30,
	2020			2019
Expected volatility		26.66	%		26.50	%
Risk-free interest rate		1.43	%		2.41	%
Expected dividend yield		1.46	%		1.12	%
Expected term of stock options	3.83 years			3.84 years

Summary of Equity-Based Compensation

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

	For the years ended June 30,
	2020		2019		2018
	(in millions)
Equity-based compensation(a)	$	156	$	103	$	100
Intrinsic value of all settled equity-based awards	$	47	$	247	$	31
Tax benefit on settled equity-based awards	$	6	$	47	$	9

^(a) Prior to the Distribution in March 2019, 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.