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Fair Value (Tables)

9 Months Ended

Mar. 31, 2019

Fair Value of Financial Assets (Liabilities) and the Level Used to Measure Them

The following tables present information about financial assets and liabilities carried at fair value on a recurring basis. As of March 31, 2019 and June 30, 2018, there were no assets or liabilities in the Level 2 category.

	Fair value measurements
	As of March 31, 2019
	Total			Level 1		Level 3
	(in millions)
Assets
Investments^(a)	$	389		$	389	$	-
Redeemable noncontrolling interests^(b)		(136	)		-		(136	)

Total	$	253		$	389	$	(136	)

	As of June 30, 2018
	Total			Level 1		Level 3
	(in millions)
Assets
Investments^(a)	$	257		$	257	$	-
Redeemable noncontrolling interests^(b)		(275	)		-		(275	)

Total	$	(18	)	$	257	$	(275	)

^(a)	Represents an investment in equity securities of Roku, Inc. (“Roku”) with a readily determinable fair value.

^(b)

The Company utilizes the market approach valuation technique for its Level 3 fair value measures. Inputs to such measures could include observable market data obtained from independent sources such as broker quotes and recent market transactions for similar assets. It is the Company’s policy to maximize the use of observable inputs in the measurement of its Level 3 fair value measurements. To the extent observable inputs are not available, the Company utilizes unobservable inputs based upon the assumptions market participants would use in valuing the liability. Examples of utilized unobservable inputs are future cash flows and long term growth rates.

Changes in Fair Value of Financial Liabilities on a Recurring Basis Using Level 3

The changes in redeemable noncontrolling interests classified as Level 3 measurements were as follows:

	For the three months ended March 31,						For the nine months ended March 31,
	2019			2018			2019				2018
	(in millions)
Beginning of period	$	(106	)	$	(195	)	$	(275	)		$	(154	)
Net income		(6	)		(9	)		(27	)			(32	)
Distributions		6			10			25				29
Accretion and other		(30	)		(32	)		141		^(a)		(69	)
					-
End of period	$	(136	)	$	(226	)	$	(136	)		$	(226	)

^(a)	As a result of the expiration of a portion of the minority shareholder’s put right, approximately $200 million was reclassified into equity.

Schedule of Fair Value and Carrying Value of Borrowings

	As of March 31, 2019		As of June 30, 2018
	(in millions)
Borrowings

Fair value	$	7,320	$	-

Carrying value	$	6,750	$	-