v3.23.2
Financial Instruments and Fair Value Measurements (Tables)
 12 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Summary of Assets and Liabilities Measured At Fair Value on Recurring Basis The following table summarizes those assets and liabilities measured at fair value on a recurring basis:
June 30, 2023June 30, 2022
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
(in millions)
Assets:
Interest rate derivatives - cash flow hedges$— $41 $— $41 $— $24 $— $24 
Foreign currency derivatives - cash flow hedges— 2 — 2 — 1 — 1 
Cross-currency interest rate derivatives - fair value hedges— 9 — 9 — 19 — 19 
Cross-currency interest rate derivatives — 37 — 37 — 79 — 79 
Equity securities(a)
105 — 130 235 109 — 103 212 
Total assets
$105 $89 $130 $324 $109 $123 $103 $335 
Liabilities:


Cross-currency interest rate derivatives - fair value hedges— (1)— (1)— — — — 
Cross-currency interest rate derivatives — (2)— (2)— — — — 
Total liabilities
$— $(3)$— $(3)$— $— $— $— 
________________________
(a)See Note 6—Investments.
Summary of Equity Securities Classified as Level 3
A rollforward of the Company’s equity securities classified as Level 3 is as follows:
For the fiscal year ended June 30,
20232022
(in millions)
Balance—beginning of year$103 $116 
Additions(a)
31 28 
Sales
(3)— 
Returns of capital(6)(45)
Measurement adjustments
1 23 
Foreign exchange and other (b)
4 (19)
Balance—end of year$130 $103 
________________________
(a)Primarily relates to Dow Jones’ investment in an artificial intelligence-focused data analytics company during the fiscal year ended June 30, 2023.
(b)During the fiscal year ended June 30, 2022, the Company reclassified its investment in an equity security from Level 3 to Level 1 within the fair value hierarchy as the investment became publicly traded in the first quarter of fiscal 2022.
Summary of Hedges Classified as Current or Non-Current in Balance Sheets Based on Maturity Dates
Derivatives are classified as current or non-current in the Balance Sheets based on their maturity dates. Refer to the table below for further details:
Fair value as of June 30,
Balance Sheet Location20232022
(in millions)
Interest rate derivatives - cash flow hedgesOther current assets$21 $4 
Foreign currency derivatives - cash flow hedgesOther current assets2 1 
Cross-currency interest rate derivatives - fair value hedgesOther current assets— 11 
Cross-currency interest rate derivativesOther current assets1 46 
Interest rate derivatives - cash flow hedgesOther non-current assets20 20 
Cross-currency interest rate derivatives - fair value hedgesOther non-current assets9 8 
Cross-currency interest rate derivativesOther non-current assets36 33 
Cross-currency interest rate derivatives - fair value hedgesOther current liabilities(1)— 
Cross-currency interest rate derivativesOther current liabilities(2)— 
Financial Instruments and Fair Value Measurements - Summary of Derivative Instruments Designated as Cash Flow Hedges
The following tables present the impact that changes in the fair values had on Accumulated other comprehensive loss and the Statements of Operations during the fiscal years ended June 30, 2023, 2022 and 2021 for both derivatives designated as cash flow hedges that continue to be highly effective and derivatives initially designated as cash flow hedges but for which hedge accounting was discontinued as of December 31, 2020:
Gain (loss) recognized in Accumulated Other Comprehensive Loss for the fiscal year ended June 30,Income statement location
202320222021
(in millions)
Foreign currency derivatives—cash flow hedges
$— $2 $3 
Operating expenses
Cross-currency interest rate derivatives— — (15)Interest expense, net
Interest rate derivatives—cash flow hedges
29 30 — Interest expense, net
Total
$29 $32 $(12)
(Gain) loss reclassified from Accumulated Other Comprehensive Loss for the fiscal year ended June 30,Income statement location
202320222021
(in millions)
Foreign currency derivatives—cash flow hedges
$— $— $(1)
Operating expenses
Cross-currency interest rate derivatives(1)(4)11 Interest expense, net
Interest rate derivatives—cash flow hedges
(12)(2)5 Interest expense, net
Total
$(13)$(6)$15 
Schedule of Effects of Fair Value Hedging Relationships in Financial Position
The following sets forth the effect of fair value hedging relationships on hedged items in the Balance Sheets as of June 30, 2023 and 2022:
As of June 30,
20232022
Borrowings:(in millions)
Carrying amount of hedged item$28 $68 
Cumulative hedging adjustments included in the carrying amount— 2