Liabilities for accrued interest related to uncertain tax benefits

  
FOX CORPORATIONNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSThe net increase in the valuation allowance to $34 million as of June 30, 2022 was primarily due to the additional valuation allowance required on net operating loss carryforwards not expected to be utilized, partially offset by the release from the utilization of a capital loss carryforward.The following table sets forth the change in the uncertain tax positions, excluding interest and penalties:

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|  | 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  |  |  |



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| (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. |

The Company recognizes interest and penalty charges related to uncertain tax positions as income tax (expense) benefit. The Company recorded liabilities for accrued interest of $11 million as of June 30, 2022 and 2021 and the amounts of interest income/expense recorded in each of fiscal 2022, 2021 and 2020 were not material.The Company is subject to tax primarily in various domestic jurisdictions and, as a matter of ordinary course, the Company is regularly audited by federal and state tax authorities. The Company believes it has appropriately accrued for the expected outcome of all pending tax matters and does not anticipate that the resolution of these pending tax matters will have a material adverse effect on its consolidated financial condition, future results of operations or liquidity. The net decrease to the balance of uncertain tax positions in fiscal 2022 is primarily attributable to state matters. The Company does not expect significant changes to these positions over the next 12 months. As of June 30, 2022 and 2021, $22 million and $24 million, respectively, would affect the Company's effective income tax rate if the Company's position with respect to the uncertainties is sustained.NOTE 17. SEGMENT INFORMATIONThe Company is a news, sports and entertainment company, which manages and reports its businesses in the following segments:•Cable Network Programming, which produces and licenses news and sports content distributed through traditional cable television systems, direct broadcast satellite operators and telecommunication companies ("traditional MVPDs"), virtual multi-channel video programming distributors ("virtual MVPDs") and other digital platforms, primarily in the U.S.•Television, which produces, acquires, markets and distributes programming through the FOX broadcast network, advertising supported video-on-demand ("AVOD") service TUBI, 29 full power broadcast television stations, including 11 duopolies, and other digital platforms, primarily in the U.S. Eighteen of the broadcast television stations are affiliated with the FOX Network, 10 are affiliated with MyNetworkTV and one is an independent station.•Other, Corporate and Eliminations, which principally consists of the FOX Studio Lot, Credible, corporate overhead costs and intracompany eliminations. The FOX Studio Lot, located in Los Angeles, California, provides television and film production services along with office space, studio operation services and includes all operations of the facility. Credible is a U.S. consumer finance marketplace.102
