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Income Taxes (Tables)
 12 Months Ended
Jun. 30, 2022
Income Tax Disclosure [Abstract]  
Schedule of (Loss) Income from Continuing Operations Before Income Tax Expense (Benefit) Attributable to Jurisdictions
Income (loss) before income tax expense was attributable to the following jurisdictions:
For the fiscal years ended June 30,
202220212020
(in millions)
U.S.$194 $266 $(310)
Foreign618 184 (1,214)
Income (loss) before income tax expense$812 $450 $(1,524)
Schedule of Components of Income Tax Expense (Benefit)
The significant components of the Company’s income tax expense were as follows:
For the fiscal years ended June 30,
202220212020
(in millions)
Current:
U.S.
Federal$— $5 $(4)
State & Local9 9 3 
Foreign160 133 102 
Total current tax169 147 101 
Deferred:
U.S.
Federal54 (30)(45)
State & Local4 (1)(4)
Foreign(175)(55)(31)
Total deferred tax(117)(86)(80)
Total income tax expense$52 $61 $21 
Effective Income Tax Rate Reconciliation
The reconciliation between the Company’s actual effective tax rate and the statutory U.S. Federal income tax rate was as follows:
For the fiscal years ended June 30,
202220212020
U.S. federal income tax rate21 %21 %21 %
State and local taxes, net1 2 1 
Effect of foreign operations (a)
7 12 (2)
Change in valuation allowance (b)
(19)(16)— 
Non-deductible goodwill and asset impairments (c)
— 1 (22)
Non-deductible compensation and benefits— 4 — 
Remeasurement of deferred tax assets (d)
(2)(7)— 
R&D tax credits(1)(2)1 
Impact of dispositions(2)— — 
Other1 (1)— 
Effective tax rate (e)
6 %14 %(1)%
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(a)The Company’s effective tax rate is impacted by the geographic mix of its pre-tax income. The Company’s foreign operations are located primarily in Australia and the United Kingdom (“U.K.”). Australia has a higher income tax rate than the U.S. and the U.K. has a lower tax rate than the U.S.
(b)For the fiscal year ended June 30, 2022, the Company released valuation allowances of $156 million, including $149 million related to certain Foreign deferred tax assets. For the fiscal year ended June 30, 2021, the Company released $75 million of valuation allowances, including $64 million related to certain U.S. deferred tax assets.
(c)For the fiscal year ended June 30, 2020, the Company recorded non-cash charges of $1,690 million related to the impairment of goodwill and indefinite-lived intangible assets, which reduced the Company’s tax expense by $262 million. These write-downs have an impact on our effective tax rate to the extent a lower tax benefit is recorded.
(d)For the fiscal year ended June 30, 2022, the Company recorded a benefit of $18 million related to the remeasurement of its U.K. deferred tax assets. For the fiscal year ended June 30, 2021, the Company recorded a benefit of $34 million related to the remeasurement of its U.K. deferred tax assets which includes the enacted corporate income tax increase resulting from the Finance Act 2021.
(e)For the fiscal years ended June 30, 2022 and 2021, the effective tax rates of 6% and 14%, respectively, represent income tax expense with regard to consolidated pre-tax book income. For the fiscal year ended June 30, 2020, the effective tax rate of (1)% represents income tax expense with regard to consolidated pre-tax book loss.
Summary of Recognized Deferred Income Taxes in Balance Sheets
The Company recognized deferred income taxes in the Balance Sheets as follows:
As of June 30,
20222021
(in millions)
Deferred income tax assets
$422 $378 
Deferred income tax liabilities
(198)(260)
Net deferred tax assets$224 $118 
Schedule of Components of Deferred Tax Assets and Liabilities
The significant components of the Company’s deferred tax assets and liabilities were as follows:
As of June 30,
20222021
(in millions)
Deferred tax assets:
Accrued liabilities$173 $169 
Capital loss carryforwards1,135 1,126 
Retirement benefit obligations24 34 
Net operating loss carryforwards408 484 
Business tax credits122 115 
Operating lease liabilities278 365 
Other151 153 
Total deferred tax assets2,291 2,446 
Deferred tax liabilities:
Asset basis difference and amortization(163)(161)
Operating lease right-of-use asset(257)(339)
Other(59)(63)
Total deferred tax liabilities(479)(563)
Net deferred tax asset before valuation allowance1,812 1,883 
Less: valuation allowance (See Note 22—Valuation and Qualifying Accounts)
(1,588)(1,765)
Net deferred tax assets$224 $118 
Schedule of Income Tax Net Operating Loss Carryforwards (NOLs) (Gross, Net Uncertain Tax Benefits)
As of June 30, 2022, the Company had income tax net operating loss (“NOL”) carryforwards (gross, net of uncertain tax benefits) in various jurisdictions as follows:
JurisdictionExpirationAmount
(in millions)
U.S. Federal2023 to 2037$149 
U.S. FederalIndefinite435 
U.S. StatesVarious664 
AustraliaIndefinite365 
U.K.Indefinite12 
Other ForeignVarious590 
Change in Unrecognized Tax Benefits, Excluding Interest and Penalties
The following table sets forth the change in the Company’s unrecognized tax benefits, excluding interest and penalties:
For the fiscal years ended June 30,
202220212020
(in millions)
Balance, beginning of period$69 $63 $58 
Additions for prior year tax positions— — 4 
Additions for current year tax positions28 4 8 
Reduction for prior year tax positions(1)(2)(1)
Lapse of the statute of limitations(3)(3)(3)
Settlement—tax attributes— — (2)
Impact of currency translations(7)7 (1)
Balance, end of period$86 $69 $63 
Summary of Major Tax Jurisdictions and Fiscal Years Open to Examination
The following is a summary of major tax jurisdictions for which tax authorities may assert additional taxes based upon tax years currently under audit and subsequent years that could be audited by the respective taxing authorities.
JurisdictionFiscal Years Open to Examination
U.S. federal2018-2021
U.S. statesVarious
Australia2018-2021
U.K.2011-2021