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Income Taxes (Tables) | 12 Months Ended
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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.

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