Fair Value (Tables)

12 Months Ended

Jun. 30, 2021

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 June 30, 2021
	Total			Level 1			Level 2		Level 3
	(in millions)
Assets
Investments in equity securities	$	788		$	788	(a)	$	-	$	-
Redeemable noncontrolling interests		(261	)		-			-		(261	)	(b)
Total	$	527		$	788		$	-	$	(261	)

	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 with a readily determinable fair value (See Note 3—Acquisitions, Disposals and Other Transactions 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 years ended June 30,
	2021			2020			2019
	(in millions)
Beginning of year	$	(305	)	$	(189	)	$	(275	)
Acquisitions(a)		-			(109	)		-
Net income		(25	)		(33	)		(33	)
Redemption of noncontrolling interests(b)		135			-			-
Distributions		15			24			32
Accretion and other(c)		(81	)		2			87
End of year	$	(261	)	$	(305	)	$	(189	)

^(a) See Note 3—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 fiscal 2021, approximately $135 million was reclassified out of Redeemable noncontrolling interests into equity. At closing, the Company paid half of the purchase price in cash and delivered a three-year promissory note for the remaining balance, which was recorded in Non-current liabilities on 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 fiscal 2020 and 2019, approximately $120 million and $200 million, respectively, were reclassified into equity.

Schedule of Fair Value and Carrying Value of Borrowings

	As of June 30,
	2021		2020
	(in millions)
Borrowings
Fair value	$	9,474	$	9,746
Carrying value	$	7,951	$	7,946