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Fair Value | 3 Months Ended
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Sep. 30, 2022
Fair Value Disclosures [Abstract] |
Fair Value | FAIR VALUEFair value measurements are required to be disclosed using a three-tiered fair value hierarchy which distinguishes market participant assumptions into the following categories: (i) inputs that are quoted prices in active markets (“Level 1”); (ii) inputs other than quoted prices included within Level 1 that are observable, including quoted prices for similar assets or liabilities (“Level 2”); and (iii) inputs that require the entity to use its own assumptions about market participant assumptions (“Level 3”). 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.
Redeemable Noncontrolling Interests The redeemable noncontrolling interests recorded are put rights held by minority shareholders in Credible Labs Inc. (“Credible”) and an entertainment production company. 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.
The Credible minority put right will become exercisable in fiscal 2025. The put right held by the entertainment production company’s minority shareholder will become exercisable in fiscal 2027. Financial Instruments The carrying value of the Company’s financial instruments exclusive of borrowings, such as cash and cash equivalents, receivables, payables and investments, accounted for using the measurement alternative method, approximates fair value.
| As of September 30, 2022 |  | As of June 30, 2022
| (in millions)
Borrowings |  |  |
Fair value | $ | 6,580 |  |  | $ | 7,084 |
Carrying value | $ | 7,207 |  |  | $ | 7,206 |
Fair value is generally determined by reference to market values resulting from trading on a national securities exchange or in an over-the-counter market (a Level 1 measurement). Concentrations of Credit Risk Cash and cash equivalents are maintained with several financial institutions. The Company has deposits held with banks that exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions of reputable credit and, therefore, bear minimal credit risk. Generally, the Company does not require collateral to secure receivables. As of September 30, 2022 and June 30, 2022, the Company had no customers that accounted for 10% or more of the Company’s receivables.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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