DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Jun. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of fair values of the derivative financial instruments included in the consolidated balance sheets

The fair values of the Company’s derivative financial instruments included in the consolidated balance sheets are presented as follows:

	Asset Derivatives					Liability Derivatives
		Fair Value (1)					Fair Value (1)
		June 30					June 30
(In millions)	Balance Sheet Location	2024		2023		Balance Sheet Location	2024		2023
Derivatives Designated as Hedging Instruments:
Foreign currency cash flow hedges(2)	Prepaid expenses and other current assets; Other assets	$	34	$	56	Other accrued liabilities	$	4	$	16
Cross-currency swap contracts(3)	Prepaid expenses and other current assets; Other assets	80		22			—		—
Net investment hedges	Prepaid expenses and other current assets	15		—		Other accrued liabilities	—		13
Interest rate-related derivatives		—		—		Other accrued liabilities	145		150
Total Derivatives Designated as Hedging Instruments		129		78			149		179
Derivatives Not Designated as Hedging Instruments:
Foreign currency forward contracts	Prepaid expenses and other current assets	19		20		Other accrued liabilities	17		20
Total derivatives		$	148	$	98		$	166	$	199

(1)See Note 14 – Fair Value Measurements for further information about how the fair value of derivative assets and liabilities are determined.

(2)Included in the asset derivatives for the foreign currency cash flow hedges at June 30, 2024 is approximately $2 million, classified within Other assets in the accompanying consolidated balance sheets.

(3)Included in the asset derivatives for the cross-currency swap contracts at June 30, 2024 is approximately $70 million, classified within Other assets in the accompanying consolidated balance sheets.

Schedule of gains and losses related to derivative financial instruments designated as hedging instruments that are included in the assessment of effectiveness

The amounts of the gains and losses related to the Company’s derivative financial instruments designated as hedging instruments that are included in the assessment of effectiveness are as follows:

	Amount of Gain (Loss) Recognized in OCI on Derivatives				Location of Gain (Loss) Reclassified	Amount of Gain (Loss) Reclassified from AOCI into Earnings(1)
	June 30				from AOCI into	June 30
(In millions)	2024		2023		Earnings	2024		2023
Derivatives in Cash Flow Hedging Relationships:
Foreign currency forward contracts	$	47	$	57	Net sales	$	50	$	71
Interest rate-related derivatives	—		2		Interest expense	—		(1)
	47		59			50		70
Derivatives in Net Investment Hedging Relationships(2):
Foreign currency forward contracts(3)	1		(35)			—		—
Total derivatives	$	48	$	24		$	50	$	70

(1)The amount reclassified into earnings as a result of the discontinuance of cash flow hedges because it is probable that forecasted transactions will not occur by the end of the original time period was not material.

(2)During fiscal 2024 and 2023 the gain recognized in earnings from net investment hedges related to the amount excluded from effectiveness testing was $17 million and $26 million, respectively.

(3)Included within translation adjustments as a component of AOCI on the Company’s consolidated balance sheets.

		Amount of Gain (Loss) Recognized in Earnings on Derivatives
	Location of Gain (Loss)	June 30
(In millions)	Recognized in Earnings on Derivatives	2024		2023
Derivatives in Fair Value Hedging Relationships:
Cross-currency swap contracts(1)	Selling, general and administrative	$	44	$	42
Interest rate swap contracts(2)	Interest expense	$	5	$	(36)

(1)Changes in the fair value representing hedge components included in the assessment of effectiveness of the cross-currency swap contracts are exactly offset by the change in the fair value of the underlying intercompany foreign currency denominated debt. The gain recognized in earnings from cross-currency swap contracts related to the amount excluded from effectiveness testing in fiscal 2024 and 2023 was $19 million and $9 million, respectively.

(2)Changes in the fair value of the interest rate swap agreements are exactly offset by the change in the fair value of the underlying long-term debt.

Schedule of cumulative amount of fair value hedging adjustments for designated and qualifying hedged items

Additional information regarding the cumulative amount of fair value hedging gain (loss) recognized in earnings for items designated and qualifying as hedged items in fair value hedges is as follows:

(In millions)
Line Item in the Consolidated Balance Sheets in Which the Hedged Item is Included	Carrying Amount of the Hedged Liabilities		Cumulative Amount of Fair Value Hedging Gain (Loss) Included in the Carrying Amount of the Hedged Liability
	June 30, 2024		June 30, 2024
Long-term debt	$	849	$	(145)
Intercompany debt	$	—	$	87

Schedule of effects of fair value and cash flow hedging relationships for designated and qualified hedging instruments

Additional information regarding the effects of fair value and cash flow hedging relationships for derivatives designated and qualifying as hedging instruments is as follows:

June 30

2024

2023

(In millions)

Net Sales

Selling, General and Administrative

Interest Expense

Net Sales

Selling, General and Administrative

Interest Expense

Total amounts of income and expense line items presented in the consolidated statements of earnings in which the effects of fair value and cash flow hedges are recorded

$

15,608

$

9,621

$

378

$

15,910

$

9,575

$

255

The effects of fair value and cash flow hedging relationships:

Gain (loss) on fair value hedge relationships – interest rate contracts:

Hedged item

N/A

N/A

(5)

N/A

N/A

36

Derivatives designated as hedging instruments

N/A

N/A

5

N/A

N/A

(36)

Gain (loss) on fair value hedge relationships – cross-currency swap contracts:

Hedged item

N/A

(44)

N/A

N/A

(42)

N/A

Derivatives designated as hedging instruments

N/A

44

N/A

N/A

42

N/A

Loss on cash flow hedge relationships – interest rate contracts:

Amount of loss reclassified from AOCI into earnings

N/A

N/A

—

N/A

N/A

(1)

Gain on cash flow hedge relationships – foreign currency forward contracts:

Amount of gain reclassified from AOCI into earnings

50

N/A

N/A

71

N/A

N/A

N/A (Not applicable)

	June 30
		2022
(In millions)		Net Sales		Selling, General and Administrative		Interest Expense
Total amounts of income and expense line items presented in the consolidated statements of earnings in which the effects of fair value and cash flow hedges are recorded		$	17,737	$	9,888	$	167
The effects of fair value and cash flow hedging relationships:
Gain (loss) on fair value hedge relationships – interest rate contracts:
Hedged item		N/A		N/A		130
Derivatives designated as hedging instruments		N/A		N/A		(130)
Gain (loss) on fair value hedge relationships – cross-currency swap contracts:
Hedged item		N/A		—		N/A
Derivatives designated as hedging instruments		N/A		—		N/A
Loss on cash flow hedge relationships – interest rate contracts:
Amount of loss reclassified from AOCI into earnings		N/A		N/A		(1)
Gain on cash flow hedge relationships – foreign currency forward contracts:
Amount of gain reclassified from AOCI into earnings		3		N/A		N/A

N/A (Not applicable)

Schedule of gains and losses related to derivative financial instruments not designated as hedging instruments

The amount of the gains and losses related to the Company’s derivative financial instruments not designated as hedging instruments are presented as follows:

		Amount of Gain (Loss) Recognized in Earnings on Derivatives
	Location of Gain (Loss)	June 30
(In millions)	Recognized in Earnings on Derivatives	2024		2023
Derivatives Not Designated as Hedging Instruments:
Foreign currency forward contracts	Selling, general and administrative	$	62	$	(10)

Schedule of Offsetting Liabilities

The following table provides information as if the Company had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria in the event of default or termination as stipulated by the terms of netting arrangements with each of the counterparties:

	As of June 30, 2024						As of June 30, 2023
(In millions)	Gross Amounts of Assets / (Liabilities) Presented in Balance Sheet		Contracts Subject to Netting		Net Amounts of Assets / (Liabilities)		Gross Amounts of Assets / (Liabilities) Presented in Balance Sheet		Contracts Subject to Netting		Net Amounts of Assets / (Liabilities)
Derivative Financial Contracts
Derivative assets	$	148	$	(49)	$	99	$	98	$	(53)	$	45
Derivative liabilities	(166)		49		(117)		(199)		53		(146)
Total	$	(18)	$	—	$	(18)	$	(101)	$	—	$	(101)

Schedule of Offsetting Assets

The following table provides information as if the Company had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria in the event of default or termination as stipulated by the terms of netting arrangements with each of the counterparties:

	As of June 30, 2024						As of June 30, 2023
(In millions)	Gross Amounts of Assets / (Liabilities) Presented in Balance Sheet		Contracts Subject to Netting		Net Amounts of Assets / (Liabilities)		Gross Amounts of Assets / (Liabilities) Presented in Balance Sheet		Contracts Subject to Netting		Net Amounts of Assets / (Liabilities)
Derivative Financial Contracts
Derivative assets	$	148	$	(49)	$	99	$	98	$	(53)	$	45
Derivative liabilities	(166)		49		(117)		(199)		53		(146)
Total	$	(18)	$	—	$	(18)	$	(101)	$	—	$	(101)