Income Taxes (Tables)

12 Months Ended

Jun. 30, 2021

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,
	2021		2020		2019
	(in millions)
U.S.
Federal	$	181	$	110	$	127
State, local and other		2		9		68
Total current		183		119		195
Deferred		534		283		386
Provision for income taxes	$	717	$	402	$	581

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,
	2021				2020				2019
U.S. federal income tax rate		21		%		21		%		21	%
State and local taxes		4				4				4
Nondeductible compensation		1				2				-
Valuation allowance movements		-				1				-
Adjustments for tax matters, net		(1	)			(1	)			-
Other		-				-				1
Effective tax rate		25		%		27		%		26	%

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,
	2021			2020
	(in millions)
Deferred tax assets
Basis difference(a)	$	3,676		$	4,176
Operating lease liabilities		121			140
Pension benefit obligations		64			93
Equity-based compensation		33			31
Accrued liabilities		37			31
Net operating loss carryforwards		18			28
Other		117			120
Total deferred tax assets		4,066			4,619
Deferred tax liabilities
Operating lease ROU assets		(114	)		(133	)
Sports rights contracts		(108	)		(110	)
Total deferred tax liabilities		(222	)		(243	)
Net deferred tax asset before valuation allowance		3,844			4,376
Less: valuation allowance		(24	)		(20	)
Total net deferred tax assets(b)	$	3,820		$	4,356

^(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”).

^(b) Includes a $2 million deferred tax liability recorded in Other liabilities on the Consolidated Balance Sheet as of June 30, 2021 and 2020.

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,
	2021				2020				2019
	(in millions)
Balance, beginning of year	$	73			$	94			$	91
Additions for prior year tax positions		-				1				7
Additions for current year tax positions		2				2				9
Reduction for prior year tax positions		(45	)	(a)		(24	)	(a)		(13	)
Balance, end of year	$	30			$	73			$	94

^(a) The reduction for prior year tax positions in fiscal 2021 includes $31 million from the settlement of audits and $14 million from the expiration of statutes of limitations. The reduction for prior year tax positions in fiscal 2020 includes $21 million from the expiration of statutes of limitations.