Fair Value (Tables)

6 Months Ended

Dec. 31, 2021

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, 2021
	Total		Level 1			Level 2		Level 3
	(in millions)
Assets
Investments in equity securities	$	689	$	689	(a)	$	—	$	—
Redeemable noncontrolling interests	(172)		—			—		(172)		(b)
Total	$	517	$	689		$	—	$	(172)


	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)


(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 2021 Form 10-K under the heading “Flutter” for additional information).


(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.

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,
	2021		2020		2021		2020
	(in millions)
Beginning of period	$	(302)	$	(310)	$	(261)	$	(305)
Acquisitions(a)	(13)		—		(58)		—
Net loss (income)	3		(4)		4		(8)
Redemption of noncontrolling interests(b)	—		135		—		135
Distributions	—		5		3		11
Accretion and other(c)	140		(28)		140		(35)
End of period	$	(172)	$	(202)	$	(172)	$	(202)


(a)			The increase for the six months ended December 31, 2021 was primarily due to the acquisition of an entertainment production company.
(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. 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 the sports network minority shareholder's final put right during the three months ended December 31, 2021, approximately $110 million was reclassified into equity.