v3.25.3
Fair Value
 3 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value FAIR VALUE
Fair 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, 2025
Total Level 1Level 2Level 3
(in millions)
Investments in equity securities$1,118 $1,118 
(a)
$— $— 
Redeemable noncontrolling interests(53)— — (53)
(b)
Total$1,065 $1,118 $— $(53)
Fair value measurements
As of June 30, 2025
Total Level 1 Level 2Level 3
(in millions)
Investments in equity securities$1,249 $1,249 
(a)
$— $— 
Redeemable noncontrolling interests(261)— — (261)
(b)
Total$988 $1,249 $— $(261)
(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.
(b)
See Note 11—Additional Financial Information. 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.
Financial Instruments
The carrying value of the Company’s financial instruments exclusive of borrowings, such as cash and cash equivalents, receivables and payables approximates fair value.
The following table sets forth the fair value and carrying value of the Company’s Borrowings:
As of
September 30,
2025
As of
June 30,
2025
(in millions)
Borrowings
Fair value$6,746 $6,625 
Carrying value$6,603 $6,602 
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, 2025 and June 30, 2025, the Company had no individual customers that accounted for 10% or more of the Company’s receivables.