Financial Instruments and Fair Value Measurements (Tables)

3 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Summary of Assets and Liabilities Measured At Fair Value on Recurring Basis

The following table summarizes those assets and liabilities measured at fair value on a recurring basis:

	As of September 30, 2019								As of June 30, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(in millions)
Assets:
Foreign currency derivatives - cash flow hedges	$	—	$	—	$	—	$	—	$	—	$	1	$	—	$	1
Cross currency interest rate derivatives - fair value hedges		—		23		—		23		—		29		—		29
Cross currency interest rate derivatives - economic hedges		—		—		—		—		—		12		—		12
Cross currency interest rate derivatives - cash flow hedges		—		93		—		93		—		116		—		116
Equity securities(a)		77		—		112		189		74		—		113		187
Total assets	$	77	$	116	$	112	$	305	$	74	$	158	$	113	$	345
Liabilities:
Interest rate derivatives - cash flow hedges	$	—	$	19	$	—	$	19	$	—	$	20	$	—	$	20
Mandatorily redeemable noncontrolling interests		—		—		—		—		—		—		11		11
Cross currency interest rate derivatives - cash flow hedges		—		19		—		19		—		18		—		18
Total liabilities	$	—	$	38	$	—	$	38	$	—	$	38	$	11	$	49

(a) See Note 4 —Investments.

Summary of Equity Securities Classified as Level 3

A rollforward of the Company’s equity securities classified as Level 3 is as follows:

	For the three months ended September 30,
	2019			2018
	(in millions)
Balance - beginning of period(a)	$	113		$	127
Purchases		—			5
Sales		—			(10	)
Foreign exchange and other		(1	)		(7	)
Balance - end of period	$	112		$	115

(a) As a result of the adoption of ASU 2016-01 during the first quarter of fiscal 2019, the cumulative net unrealized gains (losses) for these investments contained within Accumulated other comprehensive loss were reclassified through Accumulated deficit as of July 1, 2018.

Summary of Mandatorily Redeemable Noncontrolling Interest Liabilities Classified Level 3

A rollforward of the Company’s mandatorily redeemable noncontrolling interest liabilities classified as Level 3 is as follows:

	For the three months ended September 30,
	2019			2018
	(in millions)
Balance - beginning of period	$	12		$	12
Payments(a)		(11	)		—
Other		(1	)		—
Balance - end of period	$	—		$	12

(a) In July 2019, REA Group acquired the remaining 19.7% interest in Smartline Home Loans Pty Limited for approximately $11 million, increasing REA Group’s ownership to 100%.

Summary of Hedges Classified as Current or Non-Current in Balance Sheets Based on Maturity Dates

Hedges are classified as current or non-current in the Balance Sheets based on their maturity dates. Refer to the table below for further details:

	Balance Sheet Location	As of September 30, 2019			As of June 30, 2019
		(in millions)
Foreign currency derivatives - cash flow hedges	Other current assets	$	—		$	1
Cross currency interest rate derivatives - fair value hedges	Other current assets		—			8
Cross currency interest rate derivatives - economic hedges	Other current assets		—			12
Cross currency interest rate derivatives - cash flow hedges	Other current assets		—			33
Cross currency interest rate derivatives - fair value hedges	Other non-current assets		23			21
Cross currency interest rate derivatives - cash flow hedges	Other non-current assets		93			83
Interest rate derivatives - cash flow hedges	Other current liabilities		(1	)		(2	)
Interest rate derivatives - cash flow hedges	Other non-current liabilities		(18	)		(18	)
Cross currency interest rate derivatives - cash flow hedges	Other non-current liabilities		(19	)		(18	)

Schedule of FairValue Hedging Relationship By Balance Sheet

The following sets forth the effect of fair value hedging relationships on hedged items in the Balance Sheets as of September 30, 2019:

	As of September 30, 2019
	(in millions)
Borrowings:
Carrying amount of hedged item	$	69
Cumulative hedging adjustments included in the carrying amount		(3	)

Financial Instruments and Fair Value Measurements - Summary of Derivative Instruments Designated as Cash Flow Hedges

The following tables present the impact that changes in the fair values of derivatives designated as cash flow hedges had on Accumulated other comprehensive loss and the Statement of Operations during the three months ended September 30, 2019 and 2018.

	Gain (loss) recognized in Accumulated						(Gain) loss reclassified from Accumulated
	other comprehensive loss for the three months ended September 30,						other comprehensive loss for the three months ended September 30,						Income statement location
	2019			2018			2019			2018
	(in millions)
Derivative instruments designated as cash flow hedges:
Foreign currency derivatives - cash flow hedges	$	(1	)	$	2		$	(2	)	$	(1	)	Operating expenses
Cross currency interest rate derivatives - cash flow hedges		5			(14	)		(9	)		14		Interest income (expense), net
Interest rate derivatives - cash flow hedges		(4	)		(1	)		(6	)		2		Interest income (expense), net
Total	$	—		$	(13	)	$	(17	)	$	15