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Fair Value (Tables)
 3 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
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:

 

 

 

Fair value measurements

 

 

 

As of September 30, 2020

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(in millions)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in equity securities

 

$

640

 

 

$

640

(a)

 

$

-

 

 

$

-

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

(4

)

 

 

-

 

 

 

-

 

 

 

(4)

(b)

Redeemable noncontrolling interests

 

 

(310

)

 

 

-

 

 

 

-

 

 

 

(310)

(b)

Total

 

$

326

 

 

$

640

 

 

$

-

 

 

$

(314)

 

 

 

 

Fair value measurements

 

 

 

As of June 30, 2020

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(in millions)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in equity securities

 

$

531

 

 

$

531

(a)

 

$

-

 

 

$

-

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

(6

)

 

 

-

 

 

 

-

 

 

 

(6)

(b)

Redeemable noncontrolling interests

 

 

(305

)

 

 

-

 

 

 

-

 

 

 

(305)

(b)

Total

 

$

220

 

 

$

531

 

 

$

-

 

 

$

(311)

 

 

(a)

The investment categorized as Level 1 represents an investment in equity securities of Flutter Entertainment plc (“Flutter”) with a readily determinable fair value (See Note 3—Acquisitions, Disposals and Other Transactions in the 2020 Form 10-K under the heading “Flutter” for further discussion).

(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

September 30,

 

 

 

2020

 

 

2019

 

 

 

(in millions)

 

Beginning of period

 

$

(305

)

 

$

(189

)

Net income

 

 

(4

)

 

 

(9

)

Distributions

 

 

6

 

 

 

8

 

Accretion

 

 

(7

)

 

 

(17

)

End of period

 

$

(310

)

 

$

(207

)

 
Schedule of Fair Value and Carrying Value of Borrowings

 

 

As of

September 30,

2020

 

 

As of

June 30,

2020

 

 

 

(in millions)

 

Borrowings

 

 

 

 

 

 

 

 

Fair value

 

$

9,709

 

 

$

9,746

 

Carrying value

 

$

7,947

 

 

$

7,946