v3.25.2
INCOME TAXES (Tables)
 12 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Schedule of (Loss) Income from Continuing Operations Before Income Tax Expense Attributable to Jurisdictions
Income before income tax expense from continuing operations was attributable to the following jurisdictions:
For the fiscal years ended June 30,
202520242023
(in millions)
U.S.$213 $148 $74 
Foreign710 437 306 
Income before income tax expense from continuing operations$923 $585 $380 
Schedule of Components of Income Tax Expense (Benefit)
The significant components of the Company’s income tax expense were as follows:
For the fiscal years ended June 30,
202520242023
(in millions)
Current
U.S.
Federal$— $1 $1 
State & Local12 10 15 
Foreign180 165 125 
Total current tax192 176 141 
Deferred
U.S.
Federal29 22 (10)
State & Local9 3 — 
Foreign45 5 21 
Total deferred tax83 30 11 
Total income tax expense$275 $206 $152 
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,
202520242023
U.S. federal income tax rate21 %21 %21 %
State and local taxes, net2 2 3 
Effect of foreign operations (a)
10 12 15 
Change in valuation allowance
— — 1 
Non-deductible goodwill and asset impairments— 1 2 
Non-deductible compensation and benefits1 2 2 
R&D tax credits(1)(3)(2)
Impact of dispositions(3)— — 
Other— — (2)
Effective tax rate30 %35 %40 %
(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.
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,
20252024
(in millions)
Deferred income tax assets
$254 $332 
Deferred income tax liabilities
(57)(21)
Net deferred tax assets$197 $311 
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,
20252024
(in millions)
Deferred tax assets
Accrued liabilities$137 $121 
Capital loss carryforwards1,723 1,161 
Net operating loss carryforwards222 295 
Business tax credits122 147 
Operating lease liabilities244 241 
Other217 227 
Total deferred tax assets2,665 2,192 
Deferred tax liabilities
Asset basis difference and amortization(135)(99)
Operating lease right-of-use asset(224)(220)
Other(21)(21)
Total deferred tax liabilities(380)(340)
Net deferred tax asset before valuation allowance2,285 1,852 
Less: valuation allowance (See Note 22—Valuation and Qualifying Accounts)
(2,088)(1,541)
Net deferred tax assets$197 $311 
Schedule of Income Tax Net Operating Loss Carryforwards (NOLs) (Gross, Net Uncertain Tax Benefits)
As of June 30, 2025, 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. Federal2026 to 2035$61 
U.S. StatesVarious516 
AustraliaIndefinite154 
U.K.Indefinite11 
Other ForeignVarious602 
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,
202520242023
(in millions)
Balance, beginning of period$100 $105 $86 
Additions for prior year tax positions2 — 14 
Additions for current year tax positions2 2 17 
Reduction for prior year tax positions(4)(3)— 
Reduction for current year tax positions(1)— — 
Lapse of the statute of limitations(3)(3)(2)
Settlement—tax attributes— — (14)
Impact of currency translations7 (1)4 
Balance, end of period$103 $100 $105 
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
2022-2024
U.S. States
Various
Australia
2021-2024
U.K.
2000, 2003, 2005 and 2012-2024