Segment Information

3 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Information

NOTE 10. SEGMENT INFORMATION

The Company is a news, sports and entertainment company, which manages and reports its businesses in the following segments:

• Cable Network Programming, which principally consists of the production and licensing of news and sports content distributed primarily through traditional cable television systems, direct broadcast satellite operators and telecommunication companies (“traditional MVPDs”) and online multi-channel video programming distributors (“digital MVPDs”), primarily in the U.S.

• Television, which principally consists of the acquisition, marketing and distribution of broadcast network programming nationally under the FOX brand and the operation of 29 full power broadcast television stations, including 11 duopolies, in the U.S. Of these stations, 18 are affiliated with the FOX Network, 10 are affiliated with MyNetworkTV and one is an independent station. The Television segment also includes Tubi, Inc., a free advertising-supported video-on-demand (“AVOD”) service.

• Other, Corporate and Eliminations, which principally consists of the FOX Studio Lot, Credible, corporate overhead costs and intracompany eliminations. The FOX Studio Lot, located in Los Angeles, California, provides television and film production services along with office space, studio operation services and includes all operations of the facility. Credible is a U.S. consumer finance marketplace.

The Company’s operating segments have been determined in accordance with the Company’s internal management structure, which is organized based on operating activities. The Company evaluates performance based upon several factors, of which the primary financial measure is segment operating income before depreciation and amortization, or Segment EBITDA. Due to the integrated nature of these operating segments, estimates and judgments are made in allocating certain assets, revenues and expenses.

Segment EBITDA is defined as Revenues less Operating expenses and Selling, general and administrative expenses. Segment EBITDA does not include: Amortization of cable distribution investments, Depreciation and amortization, Impairment and restructuring charges, Interest expense, Interest income, Other, net and Income tax expense. Management believes that Segment EBITDA is an appropriate measure for evaluating the operating performance of the Company’s business segments because it is the primary measure used by the Company’s chief operating decision maker to evaluate the performance of and allocate resources to the Company’s businesses.

The following tables set forth the Company’s Revenues and Segment EBITDA for the three months ended September 30, 2020 and 2019:

	For the three months ended September 30,
	2020			2019
	(in millions)
Revenues
Cable Network Programming	$	1,325		$	1,285
Television		1,350			1,356
Other, Corporate and Eliminations		42			26
Total revenues	$	2,717		$	2,667
Segment EBITDA
Cable Network Programming	$	781		$	684
Television		457			251
Other, Corporate and Eliminations		(72	)		(79	)
Amortization of cable distribution investments		(5	)		(9	)
Depreciation and amortization		(68	)		(50	)
Impairment and restructuring charges		(35	)		(9	)
Interest expense		(99	)		(90	)
Interest income		1			17
Other, net		519			(15	)
Income before income tax expense		1,479			700
Income tax expense		(362	)		(187	)
Net income		1,117			513
Less: Net income attributable to noncontrolling interests		(11	)		(14	)
Net income attributable to Fox Corporation stockholders	$	1,106		$	499

Revenues by Segment by Component

	For the three months ended September 30,
	2020		2019
	(in millions)
Cable Network Programming
Affiliate fee	$	973	$	939
Advertising		299		254
Other		53		92
Total Cable Network Programming revenues		1,325		1,285
Television
Advertising		670		787
Affiliate fee		560		455
Other		120		114
Total Television revenues		1,350		1,356
Other, Corporate and Eliminations		42		26
Total revenues	$	2,717	$	2,667

Future Performance Obligations

As of September 30, 2020, approximately $5.1 billion of revenues are expected to be recognized primarily over the next one to three years. The Company’s most significant remaining performance obligations relate to affiliate contracts and content licensing contracts with fixed fees. The amount disclosed does not include (i) revenues related to performance obligations that are part of a contract whose original expected duration is one year or less, (ii) revenues that

are in the form of sales- or usage-based royalties and (iii) revenues related to performance obligations for which the Company elects to recognize revenue in the amount it has a right to invoice.

	For the three months ended September 30,
	2020		2019
	(in millions)
Depreciation and amortization
Cable Network Programming	$	13	$	13
Television		25		15
Other, Corporate and Eliminations		30		22
Total depreciation and amortization	$	68	$	50

	As of September 30, 2020		As of June 30, 2020
	(in millions)
Assets
Cable Network Programming	$	2,622	$	2,591
Television		7,703		7,054
Other, Corporate and Eliminations		11,417		11,487
Investments		755		618
Total assets	$	22,497	$	21,750