Equity-Based Compensation

9 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Equity-Based Compensation

EQUITY-BASED COMPENSATION

The Company has one equity plan, the Fox Corporation 2019 Shareholder Alignment Plan (See Note 12—Equity-Based Compensation in the 2021 Form 10-K).

The following table summarizes the Company’s equity-based compensation:

	For the three months ended March 31,				For the nine months ended March 31,
	2022		2021		2022		2021
	(in millions)
Equity-based compensation	$	28	$	37	$	75	$	112
Intrinsic value of all settled equity-based awards	$	2	$	4	$	96	$	95
Tax benefit on settled equity-based awards	$	—	$	1	$	21	$	17

The Company’s equity-based awards are settled in Class A Common Stock. As of March 31, 2022, the Company’s total estimated compensation cost, not yet recognized, related to non-vested equity awards held by the Company’s employees was approximately $80 million and is expected to be recognized over a weighted average period between one and two years.

As of March 31, 2022 and 2021, the Company had approximately 6 million stock options outstanding.

Awards Vested and Granted

Restricted Stock Units

During the nine months ended March 31, 2022 and 2021, approximately 2.4 million and 3.5 million restricted stock units (“RSUs”) vested and approximately 1.7 million and 2.0 million RSUs were granted, respectively. These RSUs generally vest in equal annual installments over a three-year period subject to the participants’ continued employment with the Company.

Performance-Based Stock Options

During the nine months ended March 31, 2022 and 2021, the Company granted approximately 4.0 million and 5.0 million performance-based stock options, respectively, which will vest in full at the end of a three-year performance period if the market condition is met, and have a term of seven years thereafter.