Financial Instruments and Fair Value Measurements (Tables)

6 Months Ended

Dec. 31, 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:

	As of December 31, 2020								As of June 30, 2020
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(in millions)
Assets:
Cross-currency interest rate derivatives - fair value hedges	$	—	$	17	$	—	$	17	$	—	$	24	$	—	$	24
Cross-currency interest rate derivatives - cash flow hedges	—		—		—		—		—		98		—		98
Cross-currency interest rate derivatives (a)	—		69		—		69		—		—		—		—
Equity securities(b)	120		—		117		237		54		—		123		177
Total assets	$	120	$	86	$	117	$	323	$	54	$	122	$	123	$	299
Liabilities:
Foreign currency derivatives - cash flow hedges	$	—	$	3	$	—	$	3	$	—	$	3	$	—	$	3
Interest rate derivatives - cash flow hedges	—		14		—		14		—		16		—		16
Cross-currency interest rate derivatives - cash flow hedges	—		—		—		—		—		18		—		18
Cross-currency interest rate derivatives (a)	—		18		—		18		—		—		—		—
Total liabilities	$	—	$	35	$	—	$	35	$	—	$	37	$	—	$	37

(a)The Company determined that its cross-currency interest rate derivatives are no longer considered highly effective as of December 31, 2020 primarily due to changes in foreign exchange and interest rates.

(b)See Note 5—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 six months ended December 31,
	2020		2019
	(in millions)
Balance - beginning of period	$	123	$	113
Additions	6		1
Measurement adjustments	21		(3)
Foreign exchange and other(a)	(33)		(2)
Balance - end of period	$	117	$	109

(a)During the three months ended December 31, 2020, the Company reclassified its investment in Tremor from Level 3 to Level 1 within the fair value hierarchy, as the sale restrictions are expected to lapse within 12 months.

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

Derivatives 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 December 31, 2020		As of June 30, 2020
		(in millions)
Cross-currency interest rate derivatives - fair value hedges	Other non-current assets	$	17	$	24
Cross-currency interest rate derivatives - cash flow hedges	Other non-current assets	—		98
Cross-currency interest rate derivatives (a)	Other non-current assets	69		—
Foreign currency derivatives - cash flow hedges	Other current liabilities	(3)		(3)
Interest rate derivatives - cash flow hedges	Other non-current liabilities	(14)		(16)
Cross-currency interest rate derivatives - cash flow hedges	Other non-current liabilities	—		(18)
Cross-currency interest rate derivatives (a)	Other non-current liabilities	(18)		—

(a)The Company determined that its cross-currency interest rate derivatives are no longer considered highly effective as of December 31, 2020 primarily due to changes in foreign exchange and interest rates.

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 had on Accumulated other comprehensive loss and the Statements of Operations during the three and six months ended December 31, 2020 and 2019 for both derivatives designated as cash flow hedges that continue to be highly effective and derivatives initially designated as cash flow hedges but for which hedge accounting was discontinued as of December 31, 2020:

	Gain (loss) recognized in Accumulated Other Comprehensive Loss for the three months ended December 31,				(Gain) loss reclassified from Accumulated Other Comprehensive Loss for the three months ended December 31,				Income statement location
	2020		2019		2020		2019
	(in millions)
Foreign currency derivatives - cash flow hedges	$	—	$	(1)	$	(1)	$	—	Operating expenses
Cross-currency interest rate derivatives	—		(13)		—		12		Interest expense, net
Interest rate derivatives - cash flow hedges	(1)		1		2		1		Interest expense, net
Total	$	(1)	$	(13)	$	1	$	13

	Gain (loss) recognized in Accumulated Other Comprehensive Loss for the six months ended December 31,				(Gain) loss reclassified from Accumulated Other Comprehensive Loss for the six months ended December 31,				Income statement location
	2020		2019		2020		2019
	(in millions)
Foreign currency derivatives - cash flow hedges	$	—	$	(2)	$	(1)	$	(2)	Operating expenses
Cross-currency interest rate derivatives	(15)		(8)		13		3		Interest expense, net
Interest rate derivatives - cash flow hedges	(1)		(3)		3		(5)		Interest expense, net
Total	$	(16)	$	(13)	$	15	$	(4)

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 December 31, 2020 and June 30, 2020:

	As of December 31, 2020		As of June 30, 2020
	(in millions)
Borrowings:
Carrying amount of hedged item	$	70	$	71
Cumulative hedging adjustments included in the carrying amount	5		6