Income Taxes (Tables)

12 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Schedule of (Loss) Income from Continuing Operations Before Income Tax Expense (Benefit) Attributable to Jurisdictions

Income before income tax expense was attributable to the following jurisdictions:

	For the fiscal years ended June 30,
	2023		2022		2021
	(in millions)
U.S.	$	74	$	194	$	266
Foreign	256		618		184
Income before income tax expense	$	330	$	812	$	450

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,
	2023		2022		2021
	(in millions)
Current:
U.S.
Federal	$	1	$	—	$	5
State & Local	15		9		9
Foreign	125		160		133
Total current tax	141		169		147
Deferred:
U.S.
Federal	(10)		54		(30)
State & Local	—		4		(1)
Foreign	12		(175)		(55)
Total deferred tax	2		(117)		(86)
Total income tax expense	$	143	$	52	$	61

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,
	2023		2022		2021
U.S. federal income tax rate	21	%	21	%	21	%
State and local taxes, net	4		1		2
Effect of foreign operations (a)	15		7		12
Change in valuation allowance (b)	1		(19)		(16)
Non-deductible goodwill and asset impairments	4		—		1
Non-deductible compensation and benefits	3		—		4
Remeasurement of deferred tax assets (c)	—		(2)		(7)
R&D tax credits	(3)		(1)		(2)
Impact of dispositions	—		(2)		—
Other	(2)		1		(1)
Effective tax rate	43	%	6	%	14	%

________________________

(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. through the fiscal year ended June 30, 2023.

(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, 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.

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,
	2023		2022
	(in millions)
Deferred income tax assets	$	393	$	422
Deferred income tax liabilities	(163)		(198)
Net deferred tax assets	$	230	$	224

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,
	2023		2022
	(in millions)
Deferred tax assets:
Accrued liabilities	$	150	$	181
Capital loss carryforwards	1,163		1,135
Net operating loss carryforwards	360		408
Business tax credits	131		122
Operating lease liabilities	309		278
Other	138		116
Total deferred tax assets	2,251		2,240
Deferred tax liabilities:
Asset basis difference and amortization	(79)		(163)
Operating lease right-of-use asset	(287)		(257)
Other	(9)		(8)
Total deferred tax liabilities	(375)		(428)
Net deferred tax asset before valuation allowance	1,876		1,812
Less: valuation allowance (See Note 22—Valuation and Qualifying Accounts)	(1,646)		(1,588)
Net deferred tax assets	$	230	$	224

Schedule of Income Tax Net Operating Loss Carryforwards (NOLs) (Gross, Net Uncertain Tax Benefits)

As of June 30, 2023, the Company had income tax net operating loss (“NOL”) carryforwards (gross, net of uncertain tax benefits) in various jurisdictions as follows:

Jurisdiction	Expiration	Amount (in millions)
U.S. Federal	2024 to 2037	$	116
U.S. Federal	Indefinite	333
U.S. States	Various	730
Australia	Indefinite	319
U.K.	Indefinite	28
Other Foreign	Various	568

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,
	2023		2022		2021
	(in millions)
Balance, beginning of period	$	86	$	69	$	63
Additions for prior year tax positions	14		—		—
Additions for current year tax positions	17		28		4
Reduction for prior year tax positions	—		(1)		(2)
Lapse of the statute of limitations	(2)		(3)		(3)
Settlement—tax attributes	(14)		—		—
Impact of currency translations	4		(7)		7
Balance, end of period	$	105	$	86	$	69

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.

Jurisdiction	Fiscal Years Open to Examination
U.S. federal	2018, 2020-2022
U.S. states	Various
Australia	2015-2022
U.K.	2011-2022