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Income Taxes (Tables)
 12 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
Schedule of (Loss) Income from Continuing Operations Before Income Tax Expense (Benefit) Attributable to Jurisdictions
Income before income tax expense was attributable to the following jurisdictions:
For the fiscal years ended June 30,
202420232022
(in millions)
U.S.$148 $74 $194 
Foreign398 256 618 
Income before income tax expense$546 $330 $812 
Schedule of Components of Income Tax Expense (Benefit)
The significant components of the Company’s income tax expense were as follows:
For the fiscal years ended June 30,
202420232022
(in millions)
Current
U.S.
Federal$1 $1 $— 
State & Local10 15 9 
Foreign165 125 160 
Total current tax176 141 169 
Deferred
U.S.
Federal22 (10)54 
State & Local3 — 4 
Foreign(9)12 (175)
Total deferred tax16 2 (117)
Total income tax expense$192 $143 $52 
Effective Income Tax Rate Reconciliation
The reconciliation between the Company’s actual effective tax rate and the statutory U.S. Federal income tax rate was as follows:
For the fiscal years ended June 30,
202420232022
U.S. federal income tax rate21 %21 %21 %
State and local taxes, net2 4 1 
Effect of foreign operations (a)
13 15 7 
Change in valuation allowance (b)
— 1 (19)
Non-deductible goodwill and asset impairments2 4 — 
Non-deductible compensation and benefits2 3 — 
Remeasurement of deferred tax assets (c)
— — (2)
R&D tax credits(3)(3)(1)
Impact of dispositions(1)— (2)
Other(1)(2)1 
Effective tax rate35 %43 %6 %
(a)The Company’s effective tax rate is impacted by the geographic mix of its income. The Company’s foreign operations are located primarily in Australia and the U.K., which have a higher statutory income tax rate than the U.S. The U.K. had a lower tax rate than the U.S. through the fiscal year ended June 30, 2023.
(b)For the fiscal year ended June 30, 2022, the Company released valuation allowances of $156 million, including $149 million related to certain foreign deferred tax assets.
(c)For the fiscal year ended June 30, 2022, the Company recorded a benefit of $18 million related to the remeasurement of its U.K. deferred tax assets.
Summary of Recognized Deferred Income Taxes in Balance Sheets
The Company recognized deferred income taxes in the Balance Sheets as follows:
As of June 30,
20242023
(in millions)
Deferred income tax assets
$332 $393 
Deferred income tax liabilities
(119)(163)
Net deferred tax assets$213 $230 
Schedule of Components of Deferred Tax Assets and Liabilities
The significant components of the Company’s deferred tax assets and liabilities were as follows:
As of June 30,
20242023
(in millions)
Deferred tax assets
Accrued liabilities$167 $150 
Capital loss carryforwards1,161 1,163 
Net operating loss carryforwards321 360 
Business tax credits147 131 
Operating lease liabilities284 309 
Other164 138 
Total deferred tax assets2,244 2,251 
Deferred tax liabilities
Asset basis difference and amortization(91)(79)
Operating lease right-of-use asset(266)(287)
Other(15)(9)
Total deferred tax liabilities(372)(375)
Net deferred tax asset before valuation allowance1,872 1,876 
Less: valuation allowance (See Note 22—Valuation and Qualifying Accounts)
(1,659)(1,646)
Net deferred tax assets$213 $230 
Schedule of Income Tax Net Operating Loss Carryforwards (NOLs) (Gross, Net Uncertain Tax Benefits)
As of June 30, 2024, the Company had income tax net operating loss (“NOL”) carryforwards (gross, net of uncertain tax benefits) in various jurisdictions as follows:
JurisdictionExpirationAmount
(in millions)
U.S. Federal2025 to 2034$89 
U.S. FederalIndefinite249 
U.S. StatesVarious548 
AustraliaIndefinite246 
U.K.Indefinite72 
Other ForeignVarious583 
Change in Unrecognized Tax Benefits, Excluding Interest and Penalties
The following table sets forth the change in the Company’s unrecognized tax benefits, excluding interest and penalties:
For the fiscal years ended June 30,
202420232022
(in millions)
Balance, beginning of period$105 $86 $69 
Additions for prior year tax positions— 14 — 
Additions for current year tax positions2 17 28 
Reduction for prior year tax positions(3)— (1)
Lapse of the statute of limitations(3)(2)(3)
Settlement—tax attributes— (14)— 
Impact of currency translations(1)4 (7)
Balance, end of period$100 $105 $86 
Summary of Major Tax Jurisdictions and Fiscal Years Open to Examination
The following is a summary of major tax jurisdictions for which tax authorities may assert additional taxes based upon tax years currently under audit and subsequent years that could be audited by the respective taxing authorities.
JurisdictionFiscal Years Open to Examination
U.S. Federal
2021-2023
U.S. States
Various
Australia
2016-2023
U.K.
2011-2023