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Income Taxes - Effective Income Tax Rate Reconciliation (Detail)
12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2013
Income Taxes Disclosure [Line Items]      
U.S. federal income tax rate 35.00% 35.00% 35.00%
State and local taxes, net 12.00% 1.00% (2.00%)
Foreign operations at lower tax rates [1] (23.00%) 17.00% (35.00%)
Foreign tax refund received [2]   182.00%  
Non-deductible goodwill on asset impairment [3] 201.00%   87.00%
Non-deductible compensation and benefits 7.00%    
Other, net [4] 7.00% 3.00% 2.00%
Effective tax rate [5] 239.00% 174.00% (216.00%)
SKY Network Television Ltd. [Member]      
Income Taxes Disclosure [Line Items]      
Non-taxable gain on SKY Network Television Ltd. [6]     (56.00%)
21st Century Fox [Member]      
Income Taxes Disclosure [Line Items]      
Foreign tax refund received [2]   (64.00%)  
Consolidated Media Holdings Ltd. [Member]      
Income Taxes Disclosure [Line Items]      
Impact of CMH transaction [7]     (247.00%)
[1] The Company's foreign operations are located primarily in Australia and the United Kingdom ("UK") which have lower income tax rates than the U.S. For the fiscal years ended June 30, 2015 and June 30, 2013, the effect of foreign operations at lower tax rates decreased the Company's effective tax rate 23% and 35%, respectively, as the Company recorded an overall pre-tax book income on a consolidated basis. Furthermore, the impact of foreign operations at lower tax rates had a greater percentage impact on the Company's effective tax rate in those years due to jurisdictional income mix and the comparatively low amount of consolidated pre-tax book income in those years. For the year ended June 30, 2014, the effect of foreign operations at lower tax rates increased the Company's effective tax rate 17% as the company recorded an overall pre-tax book loss on a consolidated basis. The significant amount of pre-tax income from foreign jurisdictions in fiscal 2013 disclosed in the table of jurisdictional earnings above is primarily attributable to non-recurring gains from our operations in Australia, including the CMH transaction, and gain from the sale of the Company's investment in SKY Network Television Ltd. which are discussed in footnotes (c) and (d) below.
[2] The Company recorded a tax benefit, net of applicable taxes on interest, of $721 million for the fiscal year ended June 30, 2014 to Income tax benefit in the Statements of Operations related to certain foreign tax refunds received. See the discussion of Foreign Tax Refund above. The tax benefit related to these refunds increased our effective tax rate 182%. These foreign tax refunds received were remitted to 21st Century Fox, net of applicable taxes on interest, in accordance with the terms of the Tax Sharing and Indemnification Agreement. Accordingly, for the fiscal year ended June 30, 2014, the Company recorded an expense to Other, net of approximately $721 million for the payment to 21st Century Fox in the Statements of Operations. This expense is a non-deductible item the tax effect of which is approximately $252 million and reflected as a decrease of approximately 64% in our effective tax rate.
[3] The Company recorded non-cash charges related to the impairment of Goodwill. To the extent these expenses are non-deductible they have an impact on our effective tax rate. (See Note 7-Goodwill and Other Intangible Assets).
[4] Other effective tax rate reconciliation items include non-deductible expenses are comparable year-over-year; however the impact appears more significant for the year-ended June 30, 2015 due to lower pre-tax book income.
[5] For the fiscal year ended June 30, 2015, the effective tax rate of 239% represents an income tax expense when compared to consolidated pre-tax book income. For the fiscal year ended June 30, 2014, the effective tax rate of 174% represents an income tax benefit when compared to consolidated pre-tax book loss. As a result, certain reconciling items between the U.S. federal income tax rate and the Company's effective tax rate may have the opposite impact. For the fiscal year ended June 30, 2013, the negative effective tax rate results from the Company's total tax benefit when compared to pre-tax book income. Further, reconciling items for the fiscal years ended June 30, 2015 and June 30, 2013, have a greater percentage impact on the Company's effective tax rate due to the comparatively low amount of consolidated pre-tax book income.
[6] In March 2013, the Company sold its 44% equity interest in SKY Network Television Ltd. and recorded a non-taxable gain of approximately $321 million which was included in Other, net in the Statements of Operations for the fiscal year ended June 30, 2013. (See Note 5-Investments).
[7] The Company recognized a non-recurring pre-tax gain of approximately $1.3 billion associated with the acquisition of CMH resulting in a 247% reduction in our effective tax rate in the fiscal year ended June 30, 2013. The gain recognized on the acquisition of CMH does not give rise to taxable income and was a result of revaluing the Company's non-controlling interest to fair value as of the acquisition date in addition to the reversal of the historic deferred tax liability related to the consolidation of FOX SPORTS Australia. (See Note 3-Acquisitions, Disposals and Other Transactions for further information).