Financial Instruments and Fair Value Measurements (Tables)

9 Months Ended

Mar. 31, 2023

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 March 31, 2023								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	$	—	$	33	$	—	$	33	$	—	$	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	—		35		—		35		—		79		—		79
Equity securities(a)	97		—		130		227		109		—		103		212
Total assets	$	97	$	77	$	130	$	304	$	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 nine months ended March 31,
	2023		2022
	(in millions)
Balance - beginning of period	$	103	$	116
Additions(a)	31		17
Sales	(2)		—
Returns of capital	(5)		(33)
Measurement adjustments	1		23
Foreign exchange and other(b)	2		(18)
Balance - end of period	$	130	$	105

(a)    Primarily relates to Dow Jones’ investment in an artificial intelligence-focused data analytics company during the nine months ended March 31, 2023.

(b)    During the nine months ended March 31, 2022, 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 March 31, 2023		As of June 30, 2022
		(in millions)
Interest rate derivatives - cash flow hedges	Other current assets	$	17	$	4
Foreign currency derivatives - cash flow hedges	Other current assets	1		1
Cross currency interest rate derivatives - fair value hedges	Other current assets	—		11
Cross currency interest rate derivatives	Other current assets	—		46
Interest rate derivatives - cash flow hedges	Other non-current assets	16		20
Cross-currency interest rate derivatives - fair value hedges	Other non-current assets	8		8
Cross-currency interest rate derivatives	Other non-current assets	35		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 nine months ended March 31, 2023 and 2022 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 March 31,				(Gain) loss reclassified from Accumulated Other Comprehensive Loss for the three months ended March 31,				Income statement location
	2023		2022		2023		2022
	(in millions)
Foreign currency derivatives - cash flow hedges	$	—	$	(1)	$	1	$	—	Operating expenses
Cross-currency interest rate derivatives	—		—		—		(1)		Interest expense, net
Interest rate derivatives - cash flow hedges	(6)		11		(5)		(1)		Interest expense, net
Total	$	(6)	$	10	$	(4)	$	(2)

	Gain (loss) recognized in Accumulated Other Comprehensive Loss for the nine months ended March 31,				(Gain) loss reclassified from Accumulated Other Comprehensive Loss for the nine months ended March 31,				Income statement location
	2023		2022		2023		2022
	(in millions)
Foreign currency derivatives - cash flow hedges	$	(1)	$	—	$	1	$	—	Operating expenses
Cross-currency interest rate derivatives	—		—		(1)		(3)		Interest expense, net
Interest rate derivatives - cash flow hedges	15		17		(8)		(3)		Interest expense, net
Total	$	14	$	17	$	(8)	$	(6)

Summary 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 March 31, 2023 and June 30, 2022:

	As of March 31, 2023		As of June 30, 2022
	(in millions)
Borrowings:
Carrying amount of hedged item	$	28	$	68
Cumulative hedging adjustments included in the carrying amount	—		2