Additional Financial Information

12 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Additional Financial Information

NOTE 21. ADDITIONAL FINANCIAL INFORMATION

Other Non-Current Assets

The following table sets forth the components of Other non-current assets included in the Balance Sheets:

	As of June 30,
	2019		2018
	(in millions)
Royalty advances to authors	$	343	$	312
Retirement benefit assets		117		135
Inventory(a)		155		143
Other		315		241
Total Other non-current assets	$	930	$	831

(a) Primarily consists of the non-current portion of programming rights.

Other Current Liabilities

The following table sets forth the components of Other current liabilities:

	As of June 30,
	2019		2018
	(in millions)
Royalties and commissions payable	$	211	$	187
Allowance for sales returns(a)		192		—
Current tax payable		22		17
Other		299		168
Total Other current liabilities	$	724	$	372

(a) As a result of the adoption of the new revenue recognition standard during the first quarter of fiscal 2019, the Company reclassified the allowance for sales returns from Receivables, net to Other current liabilities. See Note 2—Summary of Significant Accounting Policies.

Other, net

The following table sets forth the components of Other, net included in the Statements of Operations:

	For the fiscal years ended June 30,
	2019			2018			2017
	(in millions)
Dividends received from equity security investments	$	24		$	—		$	—
Remeasurement of equity securities(a)		(23	)		—			—
Loss on the Transaction(b)		—			(337	)		—
Impairment of marketable securities and cost method investments(c)		—			(33	)		(21	)
Gain on sale of SEEKAsia(d)		—			32			—
Gain on sale of Australian property		16			—			—
Gain on sale of REA Group’s European business(e)		—			—			107
Other(f)		16			14			49
Total Other, net	$	33		$	(324	)	$	135

(a) As a result of the adoption of ASU 2016-01 during the first quarter of fiscal 2019, the Company has included the impact from the remeasurement of equity securities in Other, net in the Statement of Operations for the fiscal year ended June 30, 2019. During the fiscal year ended June 30, 2018, the impact from the remeasurement of equity securities was included in Accumulated other comprehensive loss in the Balance Sheets.

(b) See Note 4—Acquisitions, Disposals and Other Transactions.

(c) For the fiscal year ended June 30, 2018 and 2017, the write-downs of available-for-sale securities were reclassified out of Accumulated other comprehensive loss and included in Other, net in the Statements of Operations. See Note 6—Investment.

(d) During the third quarter of fiscal 2018, the Company sold its investment in SEEKAsia for $122 million in cash and recognized a $32 million gain in Other, net in the Statements of Operations.

(e) The Company recognized a pre-tax gain of $107 million for the fiscal year ended June 30, 2017 related to REA Group’s sale of its European business. See Note 4—Acquisitions, Disposals and Other Transactions.

(f) As a result of the adoption of ASU 2017-07 during the first quarter of fiscal 2019, the Company has included the other non-service cost components of net periodic benefit (income) cost in Other, net in the Statements of Operations for the fiscal years ended June 30, 2019, 2018 and 2017.

Supplemental Cash Flow Information

The following table sets forth the Company’s gross cash paid for taxes and interest: 

	For the fiscal years ended June 30,
	2019		2018		2017
	(in millions)
Cash paid for interest	$	82	$	29	$	12
Cash paid for taxes		144		160		132

Accumulated Other Comprehensive Loss

The components of Accumulated other comprehensive loss were as follows:

	For the fiscal years ended June 30,
	2019			2018			2017
	(in millions)
Accumulated other comprehensive loss, net of tax:
Unrealized holding gains (losses) on securities:
Balance, beginning of year	$	22		$	(5	)	$	20
Fiscal year activity(a)		(22	)		27			(25	)
Balance, end of year		—			22			(5	)
Cash flow hedge adjustments:
Balance, beginning of year		4			—			—
Fiscal year activity(b)		2			4			—
Balance, end of year		6			4			—
Benefit Plan Adjustments:
Balance, beginning of year		(309	)		(437	)		(445	)
Fiscal year activity(c)		(43	)		128			8
Balance, end of year		(352	)		(309	)		(437	)
Foreign currency translation adjustments:
Balance, beginning of year		(591	)		(510	)		(585	)
Fiscal year activity(d)		(189	)		(81	)		75
Balance, end of year		(780	)		(591	)		(510	)
Share of other comprehensive income from equity affiliates, net:
Balance, beginning of year		—			(12	)		(16	)
Fiscal year activity(e)		—			12			4
Balance, end of year		—			—			(12	)
Total accumulated other comprehensive loss, net of tax:
Balance, beginning of year		(874	)		(964	)		(1,026	)
Fiscal year activity, net of income taxes		(252	)		90			62
Balance, end of year	$	(1,126	)	$	(874	)	$	(964	)

(a) Net of income tax expense (benefit) of $1 million and ($10) million for the fiscal years ended June 30, 2018 and 2017, respectively. Upon adoption of ASU 2016-01, the Company recorded a $22 million decrease to Accumulated deficit to reclassify the cumulative net unrealized gains (losses) for these investments as of July 1, 2018.

(b) Net of income tax expense of $1 million, $2 million and nil for the fiscal years ended June 30, 2019, 2018 and 2017 respectively.

(c) Net of income tax (benefit) expense of ($10) million, $28 million and $8 million for the fiscal years ended June 30, 2019, 2018 and 2017, respectively.

(d) Excludes ($58) million, ($42) million and $9 million relating to noncontrolling interests for the fiscal years ended June 30, 2019, 2018 and 2017, respectively.

(e) Net of income tax expense of nil, $5 million, and $2 million for the fiscal years ended June 30, 2019, 2018 and 2017, respectively.