Additional Financial Information

9 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Additional Financial Information

NOTE 14. ADDITIONAL FINANCIAL INFORMATION

Receivables, net

Receivables are presented net of an allowance for doubtful accounts, which is an estimate of amounts that may not be collectible. 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 March 31, 2019			As of June 30, 2018
	(in millions)
Receivables	$	1,681		$	1,829
Allowance for sales returns(a)		—			(171	)
Allowance for doubtful accounts		(50	)		(46	)
Receivables, net	$	1,631		$	1,612

(a) As a result of the adoption of the new revenue recognition standard during the first quarter of fiscal 2019, the Company reclassified the allowance for sales returns from Receivables, net to Other current liabilities. See Note 2—Revenues.

Other Non-Current Assets

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

	As of March 31, 2019		As of June 30, 2018
	(in millions)
Royalty advances to authors	$	340	$	312
Retirement benefit assets		155		135
Inventory(a)		123		143
Other		295		241
Total Other non-current assets	$	913	$	831

(a) Primarily consists of the non-current portion of programming rights.

Other Current Liabilities

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

	As of		As of
	March 31, 2019		June 30, 2018
	(in millions)
Royalties and commissions payable	$	241	$	187
Allowance for sales returns		198		—
Current tax payable		15		17
Other		291		168
Total Other current liabilities	$	745	$	372

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,
	2019			2018			2019			2018
	(in millions)
Dividends received from equity security investments	$	1		$	—		$	24		$	—
Remeasurement of equity securities(a)		6			—			(23	)		—
Write-down of available-for-sale securities(b)		—			(3	)		—			(33	)
Gain on sale of Australian property		2			—			14			—
Gain on sale of SEEKAsia(c)		—			32			—			32
Other, net(d)		(6	)		1			15			10
Total Other, net	$	3		$	30		$	30		$	9

(a) As a result of the adoption of ASU 2016-01 during the first quarter of fiscal 2019, the Company has included the impact from the remeasurement of equity securities in Other, net in the Statement of Operations for the three and nine months ended March 31, 2019. During the three and nine months ended March 31, 2018, the impact from the remeasurement of equity securities was included in Accumulated other comprehensive loss in the Balance Sheets.

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

(c) 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 in the Statements of Operations.

(d) As a result of the adoption of ASU 2017-07 during the first quarter of fiscal 2019, the Company has included the other non-service cost components of net periodic benefit cost (income) in Other, net in the Statements of Operations for the three and nine months ended March 31, 2019 and 2018.

Supplemental Cash Flow Information

The following table sets forth the Company’s cash paid for taxes and interest:

	For the nine months ended March 31,
	2019		2018
	(in millions)
Cash paid for interest	$	67	$	8
Cash paid for taxes		107		116