Fair Value Measurements

12 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

9. Fair Value Measurements

The following tables present the fair values for assets and liabilities measured on a recurring basis at June 30:

	2023
(in millions)	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents	$	1,253	$	—	$	—	$	1,253
Other investments (1)	101		—		—		101
Liabilities:
Forward contracts (2)	—		(73)		—		(73)

	2022
(in millions)	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents	$	2,425	$	—	$	—	$	2,425
Other investments (1)	97		—		—		97
Forward contracts (2)	—		15		—		15

(1)The other investments balance includes investments in mutual funds, which offset fluctuations in deferred compensation liabilities. These mutual funds invest in the equity securities of companies with both large and small market capitalization and high-quality fixed income debt securities. The fair value of these investments is determined using quoted market prices.

(2)The fair value of interest rate swaps, foreign currency contracts and net investment hedges is determined based on the present value of expected future cash flows considering the risks involved, including non-performance risk, and using discount rates appropriate for the respective maturities. Observable Level 2 inputs are used to determine the present value of expected future cash flows. The fair value of these derivative contracts, which are subject to master netting arrangements under certain circumstances, is presented on a gross basis in prepaid expenses and other, other assets, other accrued liabilities and deferred income taxes and other liabilities within the consolidated balance sheets.

Fair Value Disclosures

9. Fair Value Measurements

The following tables present the fair values for assets and liabilities measured on a recurring basis at June 30:

	2023
(in millions)	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents	$	1,253	$	—	$	—	$	1,253
Other investments (1)	101		—		—		101
Liabilities:
Forward contracts (2)	—		(73)		—		(73)

	2022
(in millions)	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents	$	2,425	$	—	$	—	$	2,425
Other investments (1)	97		—		—		97
Forward contracts (2)	—		15		—		15

(1)The other investments balance includes investments in mutual funds, which offset fluctuations in deferred compensation liabilities. These mutual funds invest in the equity securities of companies with both large and small market capitalization and high-quality fixed income debt securities. The fair value of these investments is determined using quoted market prices.

(2)The fair value of interest rate swaps, foreign currency contracts and net investment hedges is determined based on the present value of expected future cash flows considering the risks involved, including non-performance risk, and using discount rates appropriate for the respective maturities. Observable Level 2 inputs are used to determine the present value of expected future cash flows. The fair value of these derivative contracts, which are subject to master netting arrangements under certain circumstances, is presented on a gross basis in prepaid expenses and other, other assets, other accrued liabilities and deferred income taxes and other liabilities within the consolidated balance sheets.