Segment Information

3 Months Ended

Sep. 30, 2022

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 produces and licenses news and sports content distributed through traditional cable television systems, direct broadcast satellite operators and telecommunication companies (“traditional MVPDs”), virtual multi-channel video programming distributors (“virtual MVPDs”) and other digital platforms, primarily in the U.S.

•Television, which produces, acquires, markets and distributes programming through the FOX broadcast network, advertising supported video-on-demand (“AVOD”) service TUBI, 29 full power broadcast television stations, including 11 duopolies, and other digital platforms, primarily in the U.S. Eighteen of the broadcast television stations 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, 2022 and 2021:

	For the three months ended September 30,
	2022		2021
	(in millions)
Revenues
Cable Network Programming	$	1,431	$	1,416
Television	1,714		1,581
Other, Corporate and Eliminations	47		48
Total revenues	$	3,192	$	3,045
Segment EBITDA
Cable Network Programming	$	742	$	774
Television	409		359
Other, Corporate and Eliminations	(59)		(69)
Amortization of cable distribution investments	(4)		(5)
Depreciation and amortization	(99)		(79)
Interest expense, net	(68)		(97)
Other, net	(76)		69
Income before income tax expense	845		952
Income tax expense	(232)		(244)
Net income	613		708
Less: Net income attributable to noncontrolling interests	(8)		(7)
Net income attributable to Fox Corporation stockholders	$	605	$	701

Revenues by Segment by Component

	For the three months ended September 30,
	2022		2021
	(in millions)
Cable Network Programming
Affiliate fee	$	1,029	$	1,026
Advertising	316		311
Other	86		79
Total Cable Network Programming revenues	1,431		1,416
Television
Advertising	905		819
Affiliate fee	682		641
Other	127		121
Total Television revenues	1,714		1,581
Other, Corporate and Eliminations	47		48
Total revenues	$	3,192	$	3,045

	For the three months ended September 30,
	2022		2021
	(in millions)
Depreciation and amortization
Cable Network Programming	$	17	$	10
Television	29		26
Other, Corporate and Eliminations	53		43
Total depreciation and amortization	$	99	$	79

	As of September 30, 2022		As of June 30, 2022
	(in millions)
Assets
Cable Network Programming	$	2,692	$	2,682
Television	8,448		7,915
Other, Corporate and Eliminations	10,635		11,010
Investments	649		578
Total assets	$	22,424	$	22,185