INCOME TAXES

12 Months Ended

Jun. 30, 2026

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 19. INCOME TAXES

Income taxes are recognized for the amount of taxes payable for the current year and for the impact of deferred tax assets and liabilities, which represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. Deferred tax assets and liabilities are established using the enacted statutory tax rates and are adjusted for any changes in such rates in the period of change.

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

	For the fiscal years ended June 30,
	2026		2025		2024
	(in millions)
U.S.	$	350	$	213	$	148
Foreign	696		710		437
Income before income tax expense from continuing operations	$	1,046	$	923	$	585

The significant components of the Company’s income tax expense were as follows:

	For the fiscal years ended June 30,
	2026		2025		2024
	(in millions)
Current
U.S.
Federal	$	4	$	—	$	1
State & Local	12		12		10
Foreign	246		180		165
Total current tax	262		192		176
Deferred
U.S.
Federal	26		29		22
State & Local	7		9		3
Foreign	8		45		5
Total deferred tax	41		83		30
Total income tax expense	$	303	$	275	$	206

The reconciliation between the Company’s actual effective tax rate and the statutory U.S. Federal income tax rate for the fiscal year ended June 30, 2026 was as follows:

	For the fiscal year ended June 30,
	2026
	(in millions, except %)
U.S. federal statutory tax rate	$	220	21.0	%
State and local income taxes, net of federal income tax effect(a)	18		1.7
Foreign tax effects(b)
Australia
Statutory rate differential	58		5.5
Other	1		0.1
U.K.	15		1.4
Other foreign jurisdictions	23		2.2
Tax credits:
U.S. foreign tax credits	(18)		(1.8)
U.S. research and development tax credits	(9)		(0.8)
Nontaxable or nondeductible items	12		1.2
Changes in unrecognized tax benefits	(19)		(1.8)
Other adjustments	2		0.2
Effective tax rate	$	303	28.9	%

(a)State taxes in New York, Illinois, New York City, Massachusetts, New Jersey and Texas make up the majority (greater than 50 percent) of the tax effects in this category.

(b)The Company’s effective tax rate is impacted by the geographic mix of its income. The Company’s foreign operations are located primarily in Australia and the U.K., which have higher statutory income tax rates than the U.S.

The reconciliation between the Company’s actual effective tax rate and the statutory U.S. Federal income tax rate for the fiscal years ended June 30, 2025 and 2024 was as follows:

	For the fiscal years ended June 30,
		2025		2024
U.S. federal income tax rate		21	%	21	%
State and local taxes, net		2		2
Effect of foreign operations (a)		10		12
Non-deductible goodwill and asset impairments		—		1
Non-deductible compensation and benefits		1		2
R&D tax credits		(1)		(3)
Impact of dispositions		(3)		—
Effective tax rate		30	%	35	%

(a)The Company’s effective tax rate is impacted by the geographic mix of its income. The Company’s foreign operations are located primarily in Australia and the U.K., which have a higher statutory income tax rate than the U.S.

The Company recognized deferred income taxes in the Balance Sheets as follows:

	As of June 30,
	2026		2025
	(in millions)
Deferred income tax assets	$	251	$	254
Deferred income tax liabilities	(108)		(57)
Net deferred tax assets	$	143	$	197

The significant components of the Company’s deferred tax assets and liabilities were as follows:

	As of June 30,
	2026		2025
	(in millions)
Deferred tax assets
Accrued liabilities	$	136	$	137
Capital loss carryforwards	1,787		1,723
Net operating loss carryforwards	213		222
Business tax credits	124		122
Operating lease liabilities	237		244
Other	239		217
Total deferred tax assets	2,736		2,665
Deferred tax liabilities
Asset basis difference and amortization	(230)		(135)
Operating lease right-of-use asset	(217)		(224)
Other	(25)		(21)
Total deferred tax liabilities	(472)		(380)
Net deferred tax asset before valuation allowance	2,264		2,285
Less: valuation allowance (See Note 22—Valuation and Qualifying Accounts)	(2,121)		(2,088)
Net deferred tax assets	$	143	$	197

Significant judgment is applied in determining the ability to realize the Company’s deferred tax assets. Management assesses available positive and negative evidence, including historical results and future income forecasts, to determine whether deferred tax assets will be realized. Based on its assessment, management has concluded that it is more likely than not that certain deferred tax assets may not be realized and therefore, a valuation allowance has been established against those tax assets. Certain of the Company’s businesses may incur losses in the future resulting in additional valuation allowances being recorded.

As of June 30, 2026, 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	2034	$	34
U.S. States	Various	467
Australia	Indefinite	175
U.K.	Indefinite	15
Other Foreign	Various	566

Utilization of the NOLs is dependent on generating sufficient taxable income from the Company’s operations in each of the respective jurisdictions to which the NOLs relate, while taking into account tax filing groups and limitations and/or restrictions on its ability to use them. Certain of the Company’s U.S. federal NOLs were acquired as part of the acquisition of Move and are subject to limitations as promulgated under Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”). Section 382 of the Code limits the amount of NOLs that the Company can use on an annual basis to offset consolidated U.S. taxable income. The NOLs are also subject to review by relevant tax authorities in the jurisdictions to which they relate.

The Company recorded a deferred tax asset of $213 million and $222 million associated with its NOLs (net of approximately $63 million and $77 million, respectively, of uncertain tax benefits recorded against deferred tax assets) as of June 30, 2026 and 2025, respectively.

Valuation allowances of $126 million and $136 million have been established to reduce the deferred tax asset associated with the Company’s NOLs to an amount that will more likely than not be realized as of June 30, 2026 and 2025, respectively.

As of June 30, 2026, the Company had approximately $3.7 billion, $1.6 billion and $1.1 billion of capital loss carryforwards in Australia, the U.K. and the U.S., respectively. The Australia and U.K. capital losses may be carried forward indefinitely. The U.S. capital loss expires in the fiscal year ending June 30, 2030. The capital loss carryforwards are also subject to review by relevant tax authorities in the jurisdictions to which they relate. Realization of the Company’s capital losses is dependent on generating capital gain taxable income and satisfying certain continuity of ownership and/or business requirements. The Company recorded a deferred tax asset of $1.8 billion and $1.7 billion as of June 30, 2026 and 2025, respectively, for these capital loss carryforwards. It is more likely than not that the Company will not generate capital gain income in the normal course of business in these jurisdictions, and accordingly, valuation allowances of $1.8 billion and $1.7 billion have been established to reduce the capital loss carryforward deferred tax asset to an amount that will more likely than not be realized as of June 30, 2026 and 2025, respectively.

As of June 30, 2026, the Company had approximately $108 million of U.S. federal tax credit carryforwards which includes $31 million of foreign tax credits and $77 million of general business credits, which begin to expire in 2032 and 2037, respectively.

As of June 30, 2026, the Company had approximately $8 million of non-U.S. tax credit carryforwards which expire in various amounts beginning in 2027 and $8 million of state tax credit carryforwards (net of U.S. federal benefit), which expire in various amounts beginning in 2026.

A valuation allowance of $31 million has been established to reduce the deferred tax asset associated with the Company’s U.S. federal tax credits, non-U.S. tax credits and state tax credit carryforwards to an amount that will more likely than not be realized as of June 30, 2026.

Uncertain Tax Positions

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,
	2026		2025		2024
	(in millions)
Balance, beginning of period	$	103	$	100	$	105
Additions for prior year tax positions	—		2		—
Additions for current year tax positions	3		2		2
Reduction for prior year tax positions	(22)		(4)		(3)
Reduction for current year tax positions	(1)		(1)		—
Lapse of the statute of limitations	(8)		(3)		(3)
Impact of currency translations	(2)		7		(1)
Balance, end of period	$	73	$	103	$	100

The Company recognizes interest and penalty charges related to unrecognized tax benefits as income tax expense (benefit), which is consistent with the recognition in prior reporting periods. For the fiscal year ended June 30, 2026, the Company recognized a net benefit related to interest and penalties of $5 million, primarily reflecting write-downs of previously accrued interest and the effect of settlements of certain uncertain tax positions during the period, and an expense related to interest and penalties of $3 million and $1 million for the fiscal years ended June 30, 2025 and 2024, respectively. The Company recorded liabilities for accrued interest and penalties of approximately $4 million, $10 million and $7 million as of June 30, 2026, 2025 and 2024, respectively.

The Company’s tax returns are subject to on-going review and examination by various tax authorities. Tax authorities may not agree with the treatment of items reported in the Company’s tax returns, and therefore the outcome of tax reviews and examinations can be unpredictable. The Company is currently undergoing audits with the U.S. Internal Revenue Service for the year ended June 30, 2024 as well as certain U.S. states and foreign jurisdictions for various years. The Company believes it has appropriately accrued for the expected outcome of uncertain tax matters and believes such liabilities represent a reasonable provision for taxes ultimately expected to be paid. However, the Company may need to accrue additional income tax expense and its liability may need to be adjusted as new information becomes known and as these tax examinations continue to progress, or as settlements or litigations occur.

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	2023-2025
U.S. States	Various
Australia	2021-2025
U.K.	2000, 2003, 2005 and 2012-2025

It is reasonably possible that uncertain tax positions may increase or decrease in the next fiscal year, however, actual developments in this area could differ from those currently expected. As of June 30, 2026, approximately $13 million would affect the Company’s effective income tax rate, if and when recognized in future fiscal years.

Other

On July 4, 2025, H.R. 1 - One Big Beautiful Bill Act (“OBBBA”) was enacted into law. The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act (“Tax Act”), including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation. Certain provisions of OBBBA are effective for fiscal 2026, while others will take effect beginning in fiscal 2027. ASC 740 requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted. The OBBBA maintains the U.S. Federal income tax rate of 21%. The Company does not expect OBBBA to materially impact its effective tax rate, however the Company continues to assess the impact of OBBBA including future expected guidance from the U.S. Treasury Department and States.

The Organization for Economic Cooperation and Development (“OECD”) has proposed a global minimum tax of 15% of reported profits (“Pillar 2”) that has been agreed upon in principle by over 140 countries. Following an executive order issued by the United States in January 2025 announcing opposition to aspects of these rules, the G7 issued a statement on June 28, 2025 acknowledging that U.S. parented groups would be exempt from certain aspects of Pillar 2 in recognition of existing U.S. minimum tax rules to which they are subject. On January 5, 2026, the OECD announced a political and technical agreement by the Inclusive Framework on a comprehensive package for a “side-by-side arrangement” (the “Package”). The Package, in the form of administrative guidance, includes a new Simplified Effective Tax Rate Safe Harbour, a one-year extension of the Transitional Country-by-Country Reporting Safe Harbour, a new Substance-based Tax Incentive Safe Harbour and two Safe Harbours related to a Side-by-Side System. This administrative guidance will be incorporated into the Commentary to the Global Anti-Base Erosion Model Rules. The Company does not expect the Package to materially impact its effective tax rate, however the Company continues to assess the impact of the Package, including future expected guidance from the OECD.

Prior to the enactment of the Tax Cuts and Jobs Act (“Tax Act”), the Company’s undistributed foreign earnings were considered permanently reinvested and as such, United States federal and state income taxes were not previously recorded on these earnings. As a result of the Tax Act, substantially all of the Company’s earnings in foreign subsidiaries generated prior to the enactment of the Tax Act were deemed to have been repatriated and taxed accordingly. As of June 30, 2026, the Company has approximately $1.2 billion of undistributed foreign earnings generated after the Tax Act that it intends to reinvest permanently. It is not practicable to estimate the amount of tax that might be payable if these earnings were repatriated. The Company may repatriate future earnings of certain foreign subsidiaries in which case the Company may be required to accrue and pay additional taxes, including any applicable foreign withholding taxes and income taxes.

The following table sets forth the significant components of the Company’s cash paid for taxes, net of refunds received for the fiscal year ended June 30, 2026:

	For the fiscal year ended June 30,
	2026
	(in millions)
U.S. Federal	$	1
U.S. States	15
Foreign:
Australia	185
U.K.	54
Other	17
Total Foreign	256
Total net cash paid for taxes(a)	$	272

(a)Includes income tax refunds received of $2 million for the fiscal year ended June 30, 2026.

During the fiscal years ended June 30, 2025 and 2024, the Company paid gross income taxes of $208 million and $156 million, respectively, and received income tax refunds of $4 million and $17 million, respectively.