Financial Instruments and Fair Value Measurements (Tables)

12 Months Ended

Jun. 30, 2020

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:

	June 30, 2020								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	—		24		—		24		—		29		—		29
Cross-currency interest rate derivatives—economic hedges	—		—		—		—		—		12		—		12
Cross-currency interest rate derivatives—cash flow hedges	—		98		—		98		—		116		—		116
Equity securities(a)	54		—		123		177		74		—		113		187
Total assets	$	54	$	122	$	123	$	299	$	74	$	158	$	113	$	345
Liabilities:
Foreign currency derivatives—cash flow hedges	$	—	$	3	$	—	$	3	$	—	$	—	$	—	$	—
Interest rate derivatives—cash flow hedges	—		16		—		16		—		20		—		20
Mandatorily redeemable noncontrolling interests	—		—		—		—		—		—		11		11
Cross-currency interest rate derivatives—cash flow hedges	—		18		—		18		—		18		—		18
Total liabilities	$	—	$	37	$	—	$	37	$	—	$	38	$	11	$	49

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(a)See Note 6—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 fiscal year ended June 30,
	2020		2019
	(in millions)
Balance—beginning of year (a)	113		127
Additions (b)	19		8
Sales	—		(10)
Measurement adjustments	(4)		(2)
Foreign exchange and other	(5)		(10)
Balance—end of year	$	123	$	113

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(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.

(b)Includes purchases of equity securities as well as the equity securities received as consideration for the sale of Unruly to Tremor in the third quarter of fiscal 2020.

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 fiscal year ended June 30,
	2020		2019
	(in millions)
Balance—beginning of year	$	11	$	12
Payments (a)	(11)		—
Measurement adjustments	—		(4)
Accretion	—		4
Foreign exchange movements	—		(1)
Balance—end of year	$	—	$	11

________________________

(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:

		Fair value as of June 30,
	Balance Sheet Location	2020		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	24		21
Cross-currency interest rate derivatives—cash flow hedges	Other non-current assets	98		83
Foreign-currency derivatives—cash flow hedges	Other current liabilities	(3)		—
Interest rate derivatives—cash flow hedges	Other current liabilities	—		(2)
Interest rate derivatives—cash flow hedges	Other non-current liabilities	(16)		(18)
Cross-currency interest rate derivatives—cash flow hedges	Other non-current liabilities	(18)		(18)

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

The following table presents the impact that changes in the fair values of derivatives designated as cash flow hedges had on Accumulated other comprehensive loss and the Statements of Operations during the fiscal years ended June 30, 2020, 2019 and 2018.

	Gain (loss) recognized in Accumulated Other Comprehensive Loss for the fiscal year ended June 30,						Income statement location
	2020		2019		2018
	(in millions)
Derivative instruments designated as cash flow hedges:
Foreign currency derivatives—cash flow hedges	$	(2)	$	2	$	3	Operating expenses
Cross-currency interest rate derivatives—cash flow hedges	—		9		8		Interest expense, net
Interest rate derivatives—cash flow hedges	(7)		(9)		—		Interest expense, net
Total	$	(9)	$	2	$	11

	(Gain) loss reclassified from Accumulated Other Comprehensive Loss for the fiscal year ended June 30,						Income statement location
	2020		2019		2018
	(in millions)
Derivative instruments designated as cash flow hedges:
Foreign currency derivatives—cash flow hedges	$	(2)	$	(3)	$	1	Operating expenses
Cross-currency interest rate derivatives—cash flow hedges	3		(4)		(9)		Interest expense, net
Interest rate derivatives—cash flow hedges	(3)		8		1		Interest expense, net
Total	$	(2)	$	1	$	(7)

Schedule of Effects of Fair Value Hedging Relationships in Financial Position

The following sets forth the effect of fair value hedging relationships on hedged items in the Balance Sheets as of June 30, 2020:

	As of June 30, 2020
Borrowings:	(in millions)
Carrying amount of hedged item	$	71
Cumulative hedging adjustments included in the carrying amount	$	6