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

12 Months Ended

Jun. 30, 2020

The following table sets forth the net revenue from related parties included in the Statements of Operations:

	For the years ended June 30,
	2019			2018
	(in millions)
Related party revenue	$	302		$	254
Related party expense		(57	)		(108	)
Related party revenue, net of expense	$	245		$	146

For the year ended June 30, 2020, the related party revenue and expense were not material (See Note 10—Leases for information related to office facilities that have been subleased to News Corporation).

The following table sets forth the amounts due to related parties on the Balance Sheets:

	As of June 30,
	2020		2019
	(in millions)
Due to related parties	$	67	$	50

Schedule of Components of Net (Decrease) Increase in 21CF Investment

The following table summarizes the components of the net (decrease) increase in the Twenty-First Century Fox, Inc. investment for fiscal 2019 and 2018:

	For the years ended June 30,
	2019			2018
	(in millions)
Cash pooling, general financing activities and other^(a)	$	(1,502	)	$	961
Corporate allocations		291			334
Net dividend paid to Twenty-First Century Fox, Inc.		(6,500	)		-
Taxes payable^(b)		821			-
Deferred taxes on step-up^(c)		5,836			-
Other deferred taxes^(c)		90			-
Net (decrease) increase in Twenty-First Century Fox, Inc. investment	$	(964	)	$	1,295

^(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 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.