Financial Instruments and Fair Value Measurements (Tables)

6 Months Ended

Dec. 31, 2022

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, 2022								As of June 30, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(in millions)
Assets:
Interest rate derivatives - cash flow hedges	$	—	$	43	$	—	$	43	$	—	$	24	$	—	$	24
Foreign currency derivatives - cash flow hedges	—		1		—		1		—		1		—		1
Cross-currency interest rate derivatives - fair value hedges	—		8		—		8		—		19		—		19
Cross-currency interest rate derivatives	—		34		—		34		—		79		—		79
Equity securities(a)	98		—		132		230		109		—		103		212
Total assets	$	98	$	86	$	132	$	316	$	109	$	123	$	103	$	335
Total liabilities	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

(a)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,
	2022		2021
	(in millions)
Balance - beginning of period	$	103	$	116
Additions(a)	30		15
Sales	(2)		—
Returns of capital	(1)		(33)
Measurement adjustments	1		28
Foreign exchange and other(b)	1		(23)
Balance - end of period	$	132	$	103

(a)    Primarily relates to Dow Jones’ investment in an artificial intelligence-focused data analytics company during the three months ended December 31, 2022.

(b)     During the six months ended December 31, 2021, the Company reclassified its investment in an equity security from Level 3 to Level 1 within the fair value hierarchy as the investment became publicly traded in the first quarter of fiscal 2022.

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, 2022		As of June 30, 2022
		(in millions)
Foreign currency derivatives - cash flow hedges	Other current assets	$	1	$	1
Cross currency interest rate derivatives - fair value hedges	Other current assets	—		11
Interest rate derivatives - cash flow hedges	Other current assets	14		4
Cross currency interest rate derivatives	Other current assets	—		46
Interest rate derivatives - cash flow hedges	Other non-current assets	29		20
Cross-currency interest rate derivatives - fair value hedges	Other non-current assets	8		8
Cross-currency interest rate derivatives	Other non-current assets	34		33

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, 2022 and 2021 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
	2022		2021		2022		2021
	(in millions)
Foreign currency derivatives - cash flow hedges	$	(2)	$	—	$	1	$	—	Operating expenses
Cross-currency interest rate derivatives	—		—		(1)		(1)		Interest expense, net
Interest rate derivatives - cash flow hedges	(1)		4		(3)		(1)		Interest expense, net
Total	$	(3)	$	4	$	(3)	$	(2)

	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
	2022		2021		2022		2021
	(in millions)
Foreign currency derivatives - cash flow hedges	$	(1)	$	1	$	—	$	—	Operating expenses
Cross-currency interest rate derivatives	—		—		(1)		(2)		Interest expense, net
Interest rate derivatives - cash flow hedges	21		6		(3)		(2)		Interest expense, net
Total	$	20	$	7	$	(4)	$	(4)

Schedule of Fair Value 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, 2022 and June 30, 2022:

	As of December 31, 2022		As of June 30, 2022
	(in millions)
Borrowings:
Carrying amount of hedged item	$	28	$	68
Cumulative hedging adjustments included in the carrying amount	—		2