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Income Taxes (Tables) | 12 Months Ended
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Jun. 30, 2024
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,
| 2024 |  | 2023 |  | 2022
| (in millions)
U.S. |  |  |  |  |
Federal | $ | 300 |  |  | $ | 127 |  |  | $ | 88 |
State, local and other | 47 |  |  | 35 |  |  | 31 |
Total current | 347 |  |  | 162 |  |  | 119 |
Deferred | 203 |  |  | 321 |  |  | 342 |
Provision for income taxes | $ | 550 |  |  | $ | 483 |  |  | $ | 461 |
Schedule of Effective Income Tax Rate Reconciliation | The following table is a reconciliation of income tax computed at the statutory rate to income tax expense:
| For the years ended June 30,
| 2024 |  | 2023 |  | 2022
U.S. federal income tax rate | 21 | % |  | 21 | % |  | 21 | %
State and local taxes | 4 |  |  | 4 |  |  | 4 |
Effect of enacted tax law changes | (2) |  |  | 1 |  |  | — |
Valuation allowance movement | 2 |  |  | 2 |  |  | — |
Return to accrual(a) | — |  |  | — |  |  | 2 |
Nondeductible compensation | 1 |  |  | — |  |  | 1 |
Other | — |  |  | — |  |  | (1) |
Effective tax rate | 26 | % |  | 28 | % |  | 27 | %
(a) | Primarily attributable to a remeasurement of the Company’s net deferred tax assets associated with changes in the mix of jurisdictional earnings.
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,
| 2024 |  | 2023
| (in millions)
Deferred tax assets |  |  |
Basis difference(a) | $ | 2,645 |  |  | $ | 2,911 |
Operating lease liabilities | 232 |  |  | 241 |
Tax credit carryforwards | 96 |  |  | 9 |
Pension benefit obligations | — |  |  | 14 |
Equity-based compensation | 39 |  |  | 34 |
Net operating loss carryforwards | 38 |  |  | 37 |
Other | 238 |  |  | 179 |
Total deferred tax assets | 3,288 |  |  | 3,425 |
Deferred tax liabilities |  |  |
Operating lease ROU assets | (220) |  |  | (229) |
Accrued liabilities | (24) |  |  | (21) |
Pension benefit obligations | (19) |  |  | — |
Sports rights contracts | (33) |  |  | (19) |
Total deferred tax liabilities | (296) |  |  | (269) |
Net deferred tax asset before valuation allowance | 2,992 |  |  | 3,156 |
Less: valuation allowance | (119) |  |  | (72) |
Total net deferred tax assets(b) | $ | 2,873 |  |  | $ | 3,084 |
(a) | As a result of the Separation and the Transaction, 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 “The Transaction”).
(b) | Includes a $5 million and $6 million deferred tax liability recorded in Other liabilities in the Balance Sheets as of June 30, 2024 and 2023, respectively.
Schedule of 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,
| 2024 |  | 2023 |  | 2022
| (in millions)
Balance, beginning of year | $ | 26 |  |  | $ | 28 |  |  | $ | 30 |
Additions for prior year tax positions(a) | 6 |  |  | 2 |  |  | 1 |
Additions for current year tax positions | — |  |  | 2 |  |  | 2 |
Reduction for prior year tax positions(b) | (6) |  |  | (6) |  |  | (5) |
Balance, end of year | $ | 26 |  |  | $ | 26 |  |  | $ | 28 |
(a) | The additions for prior year tax positions in fiscal 2024 is primarily due to the impact of state tax law changes.
(b) | The reduction for tax positions in fiscal 2024 of $6 million is primarily due to the expiration of statutes of limitations. The reduction for tax positions in fiscal 2023 of $6 million is primarily due to audit settlements and the expiration of statutes of limitations. The reduction for tax positions in fiscal 2022 includes $5 million from the expiration of statutes of limitations.

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
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