Income Taxes (Tables)

12 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Provision for Income Taxes

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

	For the years ended June 30,
	2022		2021		2020
	(in millions)
U.S.
Federal	$	88	$	181	$	110
State, local and other	31		2		9
Total current	119		183		119
Deferred	342		534		283
Provision for income taxes	$	461	$	717	$	402

Effective Income Tax Rate Reconciliation

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

	For the years ended June 30,
	2022		2021		2020
U.S. federal income tax rate	21	%	21	%	21	%
State and local taxes	4		4		4
Nondeductible compensation	1		1		2
Valuation allowance movements	—		—		1
Adjustments for tax matters, net	—		(1)		(1)
Return to accrual(a)	2		—		—
Other	(1)		—		—
Effective tax rate	27	%	25	%	27	%

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,
	2022		2021
	(in millions)
Deferred tax assets
Basis difference(a)	$	3,371	$	3,676
Operating lease liabilities	123		121
Pension benefit obligations	34		64
Equity-based compensation	30		33
Accrued liabilities	—		37
Net operating loss carryforwards	31		18
Other	104		117
Total deferred tax assets	3,693		4,066
Deferred tax liabilities
Operating lease ROU assets	(116)		(114)
Accrued liabilities	(2)		—
Sports rights contracts	(108)		(108)
Total deferred tax liabilities	(226)		(222)
Net deferred tax asset before valuation allowance	3,467		3,844
Less: valuation allowance	(34)		(24)
Total net deferred tax assets(b)	$	3,433	$	3,820

(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 $7 million and $2 million deferred tax liability recorded in Other liabilities on the Consolidated Balance Sheet as of June 30, 2022 and 2021, respectively.

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,
	2022			2021			2020
	(in millions)
Balance, beginning of year	$	30		$	73		$	94
Additions for prior year tax positions	1			—			1
Additions for current year tax positions	2			2			2
Reduction for prior year tax positions	(5)		(a)	(45)		(a)	(24)		(a)
Balance, end of year	$	28		$	30		$	73

(a) The reduction for prior year tax positions in fiscal 2022 of $5 million is primarily from the expiration of statutes of limitations. 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.