Income Taxes (Tables)

12 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Provision for Income Taxes

Income before income tax (expense) benefit was attributable to the U.S. jurisdiction. Significant components of the Company’s provision for income taxes were as follows:

	For the years ended June 30,
	2019		2018			2017
	(in millions)
U.S.
Federal	$	127	$	481		$	638
State, local and other		68		64			102
		-
Total current		195		545			740
Deferred		386		(603	)		92
Provision for income taxes	$	581	$	(58	)	$	832

Effective Income Tax Rate Reconciliation

The reconciliation of income tax computed at the statutory rate to income tax (expense) benefit was:

	For the years ended June 30,
	2019			2018				2017
U.S. federal income tax rate		21	%		28		%		35		%
Impact of U.S. tax reform(a)		-			(28	)			-
State and local taxes		4			4				4
Adjustments for tax matters, net		-			(1	)			-
Valuation allowance movements		-			(3	)			1
Domestic production activities deduction		-			(2	)			(3	)
Other		1			(1	)			-
Effective tax rate		26	%		(3	)	%		37		%

^(a) See Note 2—Summary of Significant Accounting Policies under the heading “U.S. Tax Reform.”

Schedule of Components of Deferred Tax Assets and Liabilities

The following is a summary of the components of the deferred tax accounts:

	As of June 30,
	2019			2018
	(in millions)
Deferred tax assets
Basis difference(a)	$	4,574		$	-
Net operating loss carryforwards		107			11
Accrued liabilities		5			44
Pension benefit obligations		50			61
Equity-based compensation		17			44
Other		68			65
Total deferred tax assets		4,821			225
Deferred tax liabilities
Basis difference(a)		-			(773	)
Sports rights contracts		(164	)		(478	)
Total deferred tax liabilities		(164	)		(1,251	)
Net deferred tax asset (liability) before valuation allowance		4,657			(1,026	)
Less: valuation allowance		(6	)		(45	)
Total net deferred tax assets (liabilities)	$	4,651		$	(1,071	)

^(a) As a result of the Separation and the Distribution, which was a taxable transaction for which the estimated tax liability of $5.8 billion was included in the Transaction Tax paid by the Company, FOX obtained a tax basis in its assets equal to their respective fair market values. This amount includes the additional estimated deferred tax asset recorded as a result of the increased tax basis (See Note 1—Description of Business and Basis of Presentation under the heading “Basis of Presentation”).

Change in the Accrual for Uncertain Tax Positions

The following table sets forth the change in the uncertain tax positions, excluding interest and penalties:

	For the years ended June 30,
	2019			2018			2017
	(in millions)
Balance, beginning of year	$	91		$	110		$	102
Additions for prior year tax positions		7			1			7
Additions for current year tax positions		9			-			11
Reduction for prior year tax positions		(13	)		(20	)		(10	)
Balance, end of year	$	94		$	91		$	110