Segment Information

3 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment Information

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, respectively, 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, net, 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, 2021 and 2020:

	For the three months ended September 30,
	2021		2020
	(in millions)
Revenues
Cable Network Programming	$	1,416	$	1,325
Television	1,581		1,350
Other, Corporate and Eliminations	48		42
Total revenues	$	3,045	$	2,717
Segment EBITDA
Cable Network Programming	$	774	$	781
Television	359		457
Other, Corporate and Eliminations	(69)		(72)
Amortization of cable distribution investments	(5)		(5)
Depreciation and amortization	(79)		(68)
Impairment and restructuring charges	—		(35)
Interest expense, net	(97)		(98)
Other, net	69		519
Income before income tax expense	952		1,479
Income tax expense	(244)		(362)
Net income	708		1,117
Less: Net income attributable to noncontrolling interests	(7)		(11)
Net income attributable to Fox Corporation stockholders	$	701	$	1,106

Revenues by Segment by Component

	For the three months ended September 30,
	2021		2020
	(in millions)
Cable Network Programming
Affiliate fee	$	1,026	$	973
Advertising	311		299
Other	79		53
Total Cable Network Programming revenues	1,416		1,325
Television
Advertising	819		670
Affiliate fee	641		560
Other	121		120
Total Television revenues	1,581		1,350
Other, Corporate and Eliminations	48		42
Total revenues	$	3,045	$	2,717

Future Performance Obligations

As of September 30, 2021, approximately $4.5 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 three months ended September 30,
	2021		2020
	(in millions)
Depreciation and amortization
Cable Network Programming	$	10	$	13
Television	26		25
Other, Corporate and Eliminations	43		30
Total depreciation and amortization	$	79	$	68

	As of September 30, 2021		As of June 30, 2021
	(in millions)
Assets
Cable Network Programming	$	2,557	$	2,577
Television	8,162		7,305
Other, Corporate and Eliminations	11,444		12,145
Investments	998		899
Total assets	$	23,161	$	22,926