Segment Information

12 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Information

NOTE 17. 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 production, acquisition, marketing and distribution of broadcast network programming and free advertising-supported video-on-demand (“AVOD”) services under the FOX and Tubi brands, respectfully, 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.

• 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 fiscal 2021, 2020 and 2019:

	For the years ended June 30,
	2021			2020			2019
	(in millions)
Revenues
Cable Network Programming	$	5,683		$	5,492		$	5,381
Television		7,048			6,661			5,979
Other, Corporate and Eliminations		178			150			29
Total revenues	$	12,909		$	12,303		$	11,389
Segment EBITDA
Cable Network Programming	$	2,876		$	2,706		$	2,495
Television		555			430			470
Other, Corporate and Eliminations		(344	)		(357	)		(284	)
Amortization of cable distribution investments		(22	)		(24	)		(38	)
Depreciation and amortization		(300	)		(258	)		(212	)
Impairment and restructuring charges		(35	)		(451	)		(26	)
Interest expense		(395	)		(369	)		(203	)
Interest income		4			35			41
Other, net		579			(248	)		(19	)
Income before income tax expense		2,918			1,464			2,224
Income tax expense		(717	)		(402	)		(581	)
Net income		2,201			1,062			1,643
Less: Net income attributable to noncontrolling interests		(51	)		(63	)		(48	)
Net income attributable to Fox Corporation stockholders	$	2,150		$	999		$	1,595

Revenues by Segment by Component

	For the years ended June 30,
	2021		2020		2019
	(in millions)
Cable Network Programming
Affiliate fee	$	3,995	$	3,870	$	3,804
Advertising		1,337		1,164		1,184
Other		351		458		393
Total Cable Network Programming revenues		5,683		5,492		5,381
Television
Advertising		4,094		4,169		3,872
Affiliate fee		2,440		2,038		1,708
Other		514		454		399
Total Television revenues		7,048		6,661		5,979
Other, Corporate and Eliminations		178		150		29
Total revenues	$	12,909	$	12,303	$	11,389

For fiscal 2021 and 2020, the Company had no individual customers that accounted for 10% or more of Revenues. For fiscal 2019, the Company had one customer that represented approximately 11% of Revenues.

Future Performance Obligations

As of June 30, 2021, approximately $5 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 years ended June 30,
	2021		2020		2019
	(in millions)
Depreciation and amortization
Cable Network Programming	$	55	$	59	$	48
Television		104		73		96
Other, Corporate and Eliminations		141		126		68
Total depreciation and amortization	$	300	$	258	$	212

	For the years ended June 30,
	2021		2020		2019
	(in millions)
Capital expenditures
Cable Network Programming	$	53	$	43	$	83
Television		100		72		71
Other, Corporate and Eliminations		331		244		81
Total capital expenditures	$	484	$	359	$	235

	As of June 30,
	2021		2020
	(in millions)
Assets
Cable Network Programming	$	2,577	$	2,591
Television		7,305		7,054
Other, Corporate and Eliminations		12,145		11,487
Investments		899		618
Total assets	$	22,926	$	21,750

	As of June 30,
	2021		2020
	(in millions)
Goodwill and intangible assets, net
Cable Network Programming	$	1,324	$	1,287
Television		4,582		4,630
Other, Corporate and Eliminations		683		690
Total goodwill and intangible assets, net	$	6,589	$	6,607