Segment Information

6 Months Ended

Dec. 31, 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 and six months ended December 31, 2020 and 2019:

	For the three months ended December 31,						For the six months ended December 31,
	2020			2019			2020			2019
	(in millions)
Revenues
Cable Network Programming	$	1,488		$	1,469		$	2,813		$	2,754
Television		2,556			2,266			3,906			3,622
Other, Corporate and Eliminations		43			43			85			69
Total revenues	$	4,087		$	3,778		$	6,804		$	6,445
Segment EBITDA
Cable Network Programming	$	571		$	556		$	1,352		$	1,240
Television		(185	)		(214	)		272			37
Other, Corporate and Eliminations		(81	)		(81	)		(153	)		(160	)
Amortization of cable distribution investments		(6	)		(5	)		(11	)		(14	)
Depreciation and amortization		(70	)		(57	)		(138	)		(107	)
Impairment and restructuring charges		-			-			(35	)		(9	)
Interest expense		(99	)		(90	)		(198	)		(180	)
Interest income		2			8			3			25
Other, net		172			302			691			287
Income before income tax expense		304			419			1,783			1,119
Income tax expense		(74	)		(105	)		(436	)		(292	)
Net income		230			314			1,347			827
Less: Net income attributable to noncontrolling interests		(6	)		(14	)		(17	)		(28	)
Net income attributable to Fox Corporation stockholders	$	224		$	300		$	1,330		$	799

Revenues by Segment by Component

	For the three months ended December 31,				For the six months ended December 31,
	2020		2019		2020		2019
	(in millions)
Cable Network Programming
Affiliate fee	$	928	$	957	$	1,901	$	1,896
Advertising		441		337		740		591
Other		119		175		172		267
Total Cable Network Programming revenues		1,488		1,469		2,813		2,754
Television
Advertising		1,841		1,673		2,511		2,460
Affiliate fee		590		479		1,150		934
Other		125		114		245		228
Total Television revenues		2,556		2,266		3,906		3,622
Other, Corporate and Eliminations		43		43		85		69
Total revenues	$	4,087	$	3,778	$	6,804	$	6,445

Future Performance Obligations

As of December 31, 2020, approximately $5.4 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, sports advertising 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 December 31,				For the six months ended December 31,
	2020		2019		2020		2019
	(in millions)
Depreciation and amortization
Cable Network Programming	$	12	$	16	$	25	$	29
Television		26		14		51		29
Other, Corporate and Eliminations		32		27		62		49
Total depreciation and amortization	$	70	$	57	$	138	$	107

	As of December 31, 2020		As of June 30, 2020
	(in millions)
Assets
Cable Network Programming	$	2,681	$	2,591
Television		8,140		7,054
Other, Corporate and Eliminations		10,927		11,487
Investments		1,006		618
Total assets	$	22,754	$	21,750