Segment Information

6 Months Ended

Dec. 31, 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 and six months ended December 31, 2023 and 2022:

	For the three months ended December 31,				For the six months ended December 31,
	2023		2022		2023		2022
	(in millions)
Revenues
Cable Network Programming	$	1,658	$	1,632	$	3,045	$	3,063
Television	2,542		2,934		4,322		4,648
Other, Corporate and Eliminations	34		39		74		86
Total revenues	$	4,234	$	4,605	$	7,441	$	7,797
Segment EBITDA
Cable Network Programming	$	564	$	353	$	1,171	$	1,095
Television	(138)		256		213		665
Other, Corporate and Eliminations	(76)		(78)		(165)		(137)
Amortization of cable distribution investments	(4)		(4)		(8)		(8)
Depreciation and amortization	(97)		(103)		(193)		(202)
Interest expense, net	(72)		(60)		(114)		(128)
Other, net	(46)		73		(212)		(3)
Income before income tax expense	131		437		692		1,282
Income tax expense	(16)		(116)		(162)		(348)
Net income	115		321		530		934
Less: Net income attributable to noncontrolling interests	(6)		(8)		(14)		(16)
Net income attributable to Fox Corporation stockholders	$	109	$	313	$	516	$	918

Revenues by Segment by Component

	For the three months ended December 31,				For the six months ended December 31,
	2023		2022		2023		2022
	(in millions)
Cable Network Programming
Affiliate fee	$	1,031	$	1,026	$	2,036	$	2,055
Advertising	348		451		638		767
Other	279		155		371		241
Total Cable Network Programming revenues	1,658		1,632		3,045		3,063
Television
Advertising	1,654		2,052		2,564		2,957
Affiliate fee	756		686		1,491		1,368
Other	132		196		267		323
Total Television revenues	2,542		2,934		4,322		4,648
Other, Corporate and Eliminations	34		39		74		86
Total revenues	$	4,234	$	4,605	$	7,441	$	7,797

	For the three months ended December 31,				For the six months ended December 31,
	2023		2022		2023		2022
	(in millions)
Depreciation and amortization
Cable Network Programming	$	19	$	17	$	37	$	34
Television	28		30		57		59
Other, Corporate and Eliminations	50		56		99		109
Total depreciation and amortization	$	97	$	103	$	193	$	202

	As of December 31, 2023		As of June 30, 2023
	(in millions)
Assets
Cable Network Programming	$	2,832	$	2,658
Television	9,059		7,803
Other, Corporate and Eliminations	10,117		10,371
Investments	838		1,034
Total assets	$	22,846	$	21,866