Fair Value (Tables)

6 Months Ended

Dec. 31, 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 December 31, 2020
	Total			Level 1			Level 2		Level 3
	(in millions)
Assets
Investments in equity securities	$	894		$	894	(a)	$	-	$	-
Liabilities
Other		(4	)		-			-		(4)	(b)
Redeemable noncontrolling interests		(202	)		-			-		(202)	(b)
Total	$	688		$	894		$	-	$	(206)

	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). In December 2020, the Company made an additional investment of approximately $55 million in Flutter.

^(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 December 31,						For the six months ended December 31,
	2020			2019			2020			2019
	(in millions)
Beginning of period	$	(310	)	$	(207	)	$	(305	)	$	(189	)
Acquisitions(a)		-			(109	)		-			(109	)
Net income		(4	)		(3	)		(8	)		(12	)
Redemption of noncontrolling interests(b)		135			-			135			-
Distributions		5			5			11			13
Accretion and other(c)		(28	)		98			(35	)		81
End of period	$	(202	)	$	(216	)	$	(202	)	$	(216	)

^(a) See Note 2—Acquisitions, Disposals and Other Transactions under the heading “Credible Acquisition.”

^(b) As a result of the exercise of a portion of the put rights held by the sports network minority shareholder during the three months ended December 31, 2020, approximately $135 million was reclassified out of Redeemable noncontrolling interests. The Company will pay half of the purchase price in cash at closing and deliver a three-year promissory note for the balance. The Company recorded $67 million in Current liabilities and the remaining balance in Non-current liabilities in the Balance Sheet.

^(c) As a result of the expiration of a portion of the put rights held by the sports network minority shareholder during the three months ended December 31, 2019, approximately $120 million was reclassified into equity.

Schedule of Fair Value and Carrying Value of Borrowings

	As of December 31, 2020		As of June 30, 2020
	(in millions)
Borrowings
Fair value	$	9,905	$	9,746
Carrying value	$	7,949	$	7,946