Fair Value (Tables)

3 Months Ended

Sep. 30, 2022

The following tables present information about financial assets and redeemable noncontrolling interests carried at fair value on a recurring basis:


	Fair value measurements
	As of September 30, 2022
	Total		Level 1			Level 2		Level 3
	(in millions)
Investments in equity securities	$	505	$	505	(a)	$	—	$	—
Redeemable noncontrolling interests	(193)		—			—		(193)		(b)
Total	$	312	$	505		$	—	$	(193)


	Fair value measurements
	As of June 30, 2022
	Total		Level 1			Level 2		Level 3
	(in millions)
Investments in equity securities	$	435	$	435	(a)	$	—	$	—
Redeemable noncontrolling interests	(188)		—			—		(188)		(b)
Total	$	247	$	435		$	—	$	(188)


(a)			The investments categorized as Level 1 primarily represent 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 2022 Form 10-K under the heading “Flutter” for additional information).


(b)			The Company utilizes both the market and income approach valuation techniques 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 redeemable noncontrolling interests. 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 September 30,
	2022		2021
	(in millions)
Beginning of period	$	(188)	$	(261)
Acquisitions(a)	—		(45)
Net loss	5		1
Distributions	—		3
Accretion and other	(10)		—
End of period	$	(193)	$	(302)


(a)			The increase for the three months ended September 30, 2021 was primarily due to the acquisition of an entertainment production company.