News Corp B NWS · USD

NOTE 20. SEGMENT INFORMATIONThe Company manages and reports its businesses in the following five segments:•Dow Jones—The Dow Jones segment consists of Dow Jones, a global provider of news and business information whose products target individual consumers and enterprise customers and are distributed through a variety of media channels including websites, mobile apps, newspapers, newswires, newsletters, magazines, proprietary databases, live journalism, video and podcasts. Dow Jones’s consumer products include premier brands such as The Wall Street Journal, Barron’s, MarketWatch and Investor’s Business Daily. Dow Jones’s professional information products, which target enterprise customers, include Dow Jones Risk & Compliance, a leading provider of data and other solutions to help customers identify and manage regulatory, corporate, geopolitical, security and reputational risk with tools focused on financial crime, sanctions, trade and other risks and compliance requirements, Dow Jones Energy, a leading provider of pricing data, news, insights, analysis and other information for energy commodities and key base chemicals, Factiva, a leading provider of global business content, and Dow Jones Newswires, which distributes real-time business news, information and analysis to financial professionals and investors.•Digital Real Estate Services—The Digital Real Estate Services segment consists of the Company’s 61.4% interest in REA Group and 80% interest in Move. The remaining 20% interest in Move is held by REA Group. REA Group is a market-leading digital media business specializing in property and is listed on the Australian Securities Exchange (“ASX”) (ASX: REA). REA Group advertises property and property-related services on its websites and mobile apps, including Australia’s leading residential, commercial and share property websites, realestate.com.au, realcommercial.com.au and Flatmates.com.au, property.com.au and property portals in India. In addition, REA Group provides property-related data to the financial sector and financial services through a digital property search and financing experience and a mortgage broking offering.Move is a leading provider of digital real estate services in the U.S. and primarily operates Realtor.com®, a premier real estate information, advertising and services platform.

NOTE 4. REVENUESDisaggregated RevenueThe following tables present the Company’s disaggregated revenues by type and segment for the fiscal years ended June 30, 2025, 2024 and 2023: For the fiscal year ended June 30, 2025Dow JonesDigital Real Estate ServicesBook PublishingNews MediaOtherTotal Revenues(in millions)Revenues:Circulation and subscription$1,884 $7 $— $1,118 $— $3,009 Advertising396 151 — 820 — 1,367 Consumer— — 2,047 — — 2,047 Real estate— 1,410 — — — 1,410 Other51 234 102 232 — 619 Total Revenues$2,331 $1,802 $2,149 $2,170 $— $8,452 For the fiscal year ended June 30, 2024Dow JonesDigital Real Estate ServicesBook PublishingNews MediaOtherTotal Revenues(in millions)Revenues:Circulation and subscription$1,771 $10 $— $1,128 $— $2,909 Advertising405 136 — 859 — 1,400 Consumer— — 2,000 — — 2,000 Real estate— 1,284 — — — 1,284 Other55 228 93 283 — 659 Total Revenues$2,231 $1,658 $2,093 $2,270 $— $8,252 For the fiscal year ended June 30, 2023Dow JonesDigital Real Estate ServicesBook PublishingNews MediaOtherTotal Revenues(in millions)Revenues:Circulation and subscription$1,689 $12 $— $1,117 $— $2,818 Advertising413 140 — 920 — 1,473 Consumer— — 1,899 — — 1,899 Real estate— 1,189 — — — 1,189 Other51 198 80 304 — 633 Total Revenues$2,153 $1,539 $1,979 $2,341 $— $8,012 Contract Liabilities and AssetsThe Company’s deferred revenue balance primarily relates to amounts received from customers for subscriptions paid in advance of the services being provided. The following table presents changes in the deferred revenue balance for the fiscal years ended June 30, 2025 and 2024:For the fiscal years ended June 30,20252024(in millions)Beginning balance$483 $554 Deferral of revenue3,198 2,953 Recognition of deferred revenue(a)(3,197)(3,019)Other14 (5)Ending balance$498 $483 (a)For the fiscal years ended June 30, 2025 and 2024, the Company recognized approximately $451 million and $504 million, respectively, of revenue which was included in the opening deferred revenue balance.The Company had contract assets of $53 million and $7 million as of June 30, 2025 and 2024, respectively.Other Revenue DisclosuresThe Company typically expenses sales commissions to obtain a customer contract as incurred as the amortization period is twelve months or less. These costs are recorded within Selling, general and administrative in the Statements of Operations.

NOTE 16. COMMITMENTS AND CONTINGENCIESCommitmentsThe Company has commitments under certain firm contractual arrangements to make future payments. These firm commitments secure the current and future rights to various assets and services to be used in the normal course of operations. The following table summarizes the Company’s material firm commitments as of June 30, 2025:As of June 30, 2025Payments Due by PeriodLess than 1 year1-3 years3-5 yearsMore than 5 yearsTotal(in millions)Purchase obligations(a)$415 $437 $88 $94 $1,034 Operating leases(b)117 208 146 860 1,331 Borrowings(c)25 450 1,000 500 1,975 Interest payments on borrowings(d)81 144 90 51 366 Total commitments and contractual obligations$638 $1,239 $1,324 $1,505 $4,706 (a)The Company has commitments under purchase obligations related to technology infrastructure services, marketing agreements, content licensing costs and other legally binding commitments.(b)The Company leases office facilities, warehouse facilities, printing plants and equipment. These leases, which are classified as operating leases, are expected to be paid at certain dates through fiscal 2048. Amounts reflected represent only the Company’s lease obligations for which it has firm commitments. (c)See Note 9—Borrowings.(d)Reflects the Company’s expected future interest payments based on borrowings outstanding and interest rates applicable at June 30, 2025. Such rates are subject to change in future periods. See Note 9—Borrowings.ContingenciesThe Company routinely is involved in various legal proceedings, claims and governmental inspections or investigations, including those discussed below. The outcome of these matters and claims is subject to significant uncertainty, and the Company often cannot predict what the eventual outcome of pending matters will be or the timing of the ultimate resolution of these matters. Fees, expenses, fines, penalties, judgments or settlement costs which might be incurred by the Company in connection with the various proceedings could adversely affect its results of operations and financial condition.The Company establishes an accrued liability for legal claims when it determines that a loss is probable and the amount of the loss can be reasonably estimated. Once established, accruals are adjusted from time to time, as appropriate, in light of additional information.

NOTE 19. INCOME TAXESIncome taxes are recognized for the amount of taxes payable for the current year and for the impact of deferred tax assets and liabilities, which represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. Deferred tax assets and liabilities are established using the enacted statutory tax rates and are adjusted for any changes in such rates in the period of change.Income before income tax expense from continuing operations was attributable to the following jurisdictions:For the fiscal years ended June 30,202520242023(in millions)U.S.$213 $148 $74 Foreign710 437 306 Income before income tax expense from continuing operations$923 $585 $380 The significant components of the Company’s income tax expense were as follows:For the fiscal years ended June 30,202520242023(in millions)CurrentU.S.Federal$— $1 $1 State & Local12 10 15 Foreign180 165 125 Total current tax192 176 141 DeferredU.S.Federal29 22 (10)State & Local9 3 — Foreign45 5 21 Total deferred tax83 30 11 Total income tax expense$275 $206 $152 The reconciliation between the Company’s actual effective tax rate and the statutory U.S. Federal income tax rate was as follows:For the fiscal years ended June 30,202520242023U.S. federal income tax rate21 %21 %21 %State and local taxes, net2 2 3 Effect of foreign operations (a)10 12 15 Change in valuation allowance— — 1 Non-deductible goodwill and asset impairments— 1 2 Non-deductible compensation and benefits1 2 2 R&D tax credits(1)(3)(2)Impact of dispositions(3)— — Other— — (2)Effective tax rate30 %35 %40 %(a)The Company’s effective tax rate is impacted by the geographic mix of its income. The Company’s foreign operations are located primarily in Australia and the U.K., which have a higher statutory income tax rate than the U.S. The U.K. had a lower tax rate than the U.S. through the fiscal year ended June 30, 2023.

NOTE 10. LEASESSummary of LeasesThe Company’s operating leases primarily consist of real estate, including office space, warehouse space and printing facilities, and generally include options to extend the lease term or terminate the lease. Such options do not impact the Company’s lease term assessment until the Company is reasonably certain that the option will be exercised.Certain of the Company’s leases include rent adjustments which may be indexed to various metrics, including the consumer price index or other inflationary indexes. As a general matter, the Company’s real estate lease arrangements typically require adjustments resulting from changes in real estate taxes and other costs to operate the leased asset.The total lease cost for operating leases included in the Statements of Operations was as follows:For the fiscal years ended June 30,202520242023Income Statement Location(in millions)Operating lease costsSelling, general and administrative$106 $104 $110 Operating lease costsOperating expenses10 10 9 Short term lease costsOperating expenses23 21 16 Variable lease costsSelling, general and administrative27 24 22 Total lease costs$166 $159 $157 Additional information related to the Company’s operating leases under ASC 842, Leases:As of June 30,20252024Weighted-average remaining lease term13.5 years14.1 yearsWeighted-average incremental borrowing rate5.32 %5.

As a high-profile global media and information services company with a wide array of digital products and services, the Company is subject to risks associated with cybersecurity threats. The Company has developed and implemented a cybersecurity program designed to manage these threats, including the assessment, identification and management of cybersecurity risks, and related protection, response, mitigation and recovery efforts. The program is overseen and monitored by a dedicated internal global cybersecurity organization, led by the Company’s Chief Information Security Officer (“CISO”), who reports directly to the Company’s Chief Technology Officer (“CTO”), and supported by designated business information security officers at the Company’s business units. The Company’s cybersecurity program is informed in part by the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework and leverages a defense-in-depth approach to managing cybersecurity risk. The governance, principles and framework for the program are set forth in the Company’s Global Cybersecurity Governance Principles Framework and are complemented by a set of global cybersecurity policies designed to promote secure cyber and data practices among Company personnel. The Company reinforces a culture of secure behavior through annual cybersecurity and privacy awareness trainings, quarterly phishing exercises and regular delivery of other security awareness content via an online training system, steering committees, newsletters, departmental meetings and periodic campaigns, as well as specialized secure development training for product development teams. In addition, the Company employs various technical measures and processes to address the cybersecurity threats it faces, which may include reporting, monitoring and alert tools, identity and access management, multi-factor authentication, encryption, endpoint detection and response, email, application and cloud security tools, vulnerability scanning tools, threat intelligence monitoring and application resilience measures, as well as threat modeling, architecture design reviews and code reviews performed by its product security team.

NOTE 9. BORROWINGSThe Company’s total borrowings consist of the following:Interest rate at June 30,2025Maturity at June 30,2025As of June 30, 2025As of June 30, 2024(in millions)News Corporation2022 Term loan A(a)5.774 %Mar 31, 2027475 484 2022 Senior notes5.125 %Feb 15, 2032494 493 2021 Senior notes3.875 %May 15, 2029993 991 REA Group(b)2024 REA credit facility — tranche 1(c)5.10 %Sep 15, 2028— — 2024 REA credit facility — tranche 2(d)N/AN/A— 79 2024 Subsidiary facility(e)N/AN/A— 55 Total borrowings1,962 2,102 Less: current portion(f)(25)(9)Long-term borrowings1,937 2,093 (a)The Company entered into an interest rate swap derivative to fix the floating rate interest component of its Term A Loans at 2.083%. For the three months ended June 30, 2025, the Company was paying interest at an effective interest rate of 3.458%. See Note 11—Financial Instruments and Fair Value Measurements.(b)These borrowings were incurred by REA Group and certain of its subsidiaries (REA Group and certain of its subsidiaries, the “REA Debt Group”), consolidated but non wholly-owned subsidiaries of News Corp, and are only guaranteed by the REA Debt Group and are non-recourse to News Corp.(c)As of June 30, 2025, REA Group had total undrawn commitments of A$400 million available under this facility.(d)This facility was terminated by REA Group during the fiscal year ended June 30, 2025, with the amount outstanding repaid using proceeds from the sale of REA Group’s interest in PropertyGuru. See Note 6—Investments. (e)This facility was terminated by REA Group during the fiscal year ended June 30, 2025, with the amount outstanding repaid using capacity available under the 2024 REA Credit Facility.(f)The current portion of long term debt relates to required principal repayments on the 2022 Term Loan A.News Corporation BorrowingsAs of June 30, 2025, News Corporation had (i) borrowings of $1,962 million, including the current portion, consisting of its outstanding 2021 Senior Notes, 2022 Senior Notes (collectively, the “Senior Notes”) and Term A Loans, and (ii) $750 million of undrawn commitments available under the Revolving Facility. Senior NotesThe Senior Notes are the senior unsecured obligations of the Company and rank equally in right of payment with the Company’s other senior debt, including borrowings under its Term A and Revolving Facilities (as defined below).

NOTE 6. INVESTMENTSThe Company’s investments were comprised of the following:Ownership Percentage as of June 30, 2025As of June 30,20252024(in millions)Equity method investments(a)various$85 $215 Equity and other securities(b)various931 214 Total Investments$1,016 $429 (a)Equity method investments include News UK’s joint venture with DMG Media. In December 2024, REA Group’s interest in PropertyGuru was acquired by a third party. A gain of approximately $87 million was recognized on the sale and recorded in Other, net. See Note 21—Additional Financial Information.(b)Equity and other securities are primarily comprised of the Company’s interest in DAZN, certain investments in China, Nexxen International, Ltd., REA Group’s investment in Athena Home Loans and RipJar Ltd., an artificial intelligence-focused data analytics company. During fiscal 2025, the Company received an equity interest in DAZN of approximately 6%, recorded at $648 million, in connection with the sale of Foxtel. Refer to Note 3—Discontinued Operations for further discussion.The Company has equity securities with quoted prices in active markets as well as equity securities without readily determinable fair market values. Equity securities without readily determinable fair market values are valued at cost, less any impairment, plus or minus changes in fair value resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. The components comprising total gains and losses on equity securities are set forth below:For the fiscal years ended June 30,202520242023(in millions)Total gains (losses) recognized on equity securities$21 $(13)$(9)Less: Net gains (losses) recognized on equity securities sold or impaired— — 2 Unrealized gains (losses) recognized on equity securities held at end of period$21 $(13)$(11)Equity Losses of AffiliatesThe Company’s share of the losses of its equity affiliates was $15 million, $6 million and $127 million for the fiscal years ended June 30, 2025, 2024 and 2023, respectively. In fiscal 2023, the losses primarily reflect the non-cash write-down of REA Group’s investment in PropertyGuru of approximately $81 million and losses from an investment in an Australian sports wagering venture.