NOTE 12. ADDITIONAL FINANCIAL INFORMATION

Receivables, net

Receivables are presented net of an allowance for returns and doubtful accounts, which is an estimate of amounts that may not be collectible. In determining the allowance for returns, management analyzes historical returns, current economic trends and changes in customer demand and acceptance of the Company’s products. Based on this information, management reserves a certain portion of revenues that provide the customer with the right of return. The allowance for doubtful accounts is estimated based on historical experience, receivable aging, current economic trends and specific identification of certain receivables that are at risk of not being collected.

Receivables, net consist of:


	As of			As of
	March 31, 2018			June 30, 2017
	(in millions)
Receivables	$	1,532		$	1,484
Allowance for sales returns		(165	)		(166	)
Allowances for doubtful accounts		(39	)		(42	)

Receivables, net	$	1,328		$	1,276

The Company’s receivables did not contain significant concentrations of credit risk as of March 31, 2018 or June 30, 2017 due to the wide variety of customers, markets and geographic areas to which the Company’s products and services are sold.

Other Current Assets

The following table sets forth the components of Other current assets:


	As of		As of
	March 31, 2018		June 30, 2017
	(in millions)
Inventory^(a)	$	224	$	208
Amounts due from 21st Century Fox		59		82
Prepayments and other current assets		263		233

Total Other current assets	$	546	$	523

^(a)	Inventory at March 31, 2018 and June 30, 2017 was primarily comprised of books, newsprint, printing ink and programming rights.

Other Non-Current Assets

The following table sets forth the components of Other non-current assets:


	As of		As of
	March 31, 2018		June 30, 2017
	(in millions)
Royalty advances to authors	$	319	$	298
Other		148		144

Total Other non-current assets	$	467	$	442

Other Current Liabilities

The following table sets forth the components of Other current liabilities:


	As of		As of
	March 31, 2018		June 30, 2017
	(in millions)
Current tax payable	$	40	$	39
Royalties and commissions payable		187		152
Current portion of long-term debt		92		103
Other		247		306

Total Other current liabilities	$	566	$	600

Other, net

The following table sets forth the components of Other, net:


	For the three months ended						For the nine months ended
	March 31,						March 31,
	2018			2017			2018			2017
	(in millions)
Gain on sale of SEEKAsia^(a)	$	32		$	—		$	32		$	—
Gain on sale of REA Group’s European business		—			(13	)		—			107
Write-down of available-for-sale securities^(b)		(3	)		—			(33	)		(21	)
Gain on sale of other businesses		—			—			—			11
Gain on sale of equity method investments		—			—			—			17
Other, net		—			—			7			13

Total Other, net	$	29		$	(13	)	$	6		$	127

^(a)	During the three months ended March 31, 2018, the Company sold its investment in SEEKAsia for $122 million in cash and recognized a $32 million gain in Other, net.

^(b)	For the three and nine months ended March 31, 2018 and for the nine months ended March 31, 2017, the write-downs of available-for-sale securities were reclassified out of accumulated other comprehensive loss and included in Other, net in the Statement of Operations.