Segment Information

3 Months Ended

Sep. 30, 2023

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, virtual multi-channel video programming distributors 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 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. The segment also includes various production companies that produce content for the Company and third parties.

•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, 2023 and 2022:

	For the three months ended September 30,
	2023		2022
	(in millions)
Revenues
Cable Network Programming	$	1,387	$	1,431
Television	1,780		1,714
Other, Corporate and Eliminations	40		47
Total revenues	$	3,207	$	3,192
Segment EBITDA
Cable Network Programming	$	607	$	742
Television	351		409
Other, Corporate and Eliminations	(89)		(59)
Amortization of cable distribution investments	(4)		(4)
Depreciation and amortization	(96)		(99)
Interest expense, net	(42)		(68)
Other, net	(166)		(76)
Income before income tax expense	561		845
Income tax expense	(146)		(232)
Net income	415		613
Less: Net income attributable to noncontrolling interests	(8)		(8)
Net income attributable to Fox Corporation stockholders	$	407	$	605

Revenues by Segment by Component

	For the three months ended September 30,
	2023		2022
	(in millions)
Cable Network Programming
Affiliate fee	$	1,005	$	1,029
Advertising	290		316
Other	92		86
Total Cable Network Programming revenues	1,387		1,431
Television
Advertising	910		905
Affiliate fee	735		682
Other	135		127
Total Television revenues	1,780		1,714
Other, Corporate and Eliminations	40		47
Total revenues	$	3,207	$	3,192

	For the three months ended September 30,
	2023		2022
	(in millions)
Depreciation and amortization
Cable Network Programming	$	18	$	17
Television	29		29
Other, Corporate and Eliminations	49		53
Total depreciation and amortization	$	96	$	99

	As of September 30, 2023		As of June 30, 2023
	(in millions)
Assets
Cable Network Programming	$	2,662	$	2,658
Television	8,267		7,803
Other, Corporate and Eliminations	9,843		10,371
Investments	877		1,034
Total assets	$	21,649	$	21,866