INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2015

INCOME TAXES

Provision for income taxes

	Year Ended June 30
(In millions)	2015			2014			2013
Current:
Federal	$	236.8		$	338.2		$	261.7
Foreign	251.2			265.4			241.5
State and local	31.8			20.5			24.3
	519.8			624.1			527.5
Deferred:
Federal	(55.5		)	(41.7		)	(35.2		)
Foreign	2.1			(18.6		)	(41.3		)
State and local	0.8			3.9			0.4
	(52.6		)	(56.4		)	(76.1		)
	$	467.2		$	567.7		$	451.4

Reconciliation of the U.S. federal statutory income tax rate and actual effective tax rate on earnings before income taxes

	Year Ended June 30
	2015		2014		2013
Provision for income taxes at statutory rate	35.0	%	35.0	%	35.0	%
Increase (decrease) due to:
State and local income taxes, net of federal tax benefit	1.1		1.4		1.3
Taxation of foreign operations	(6.8	)	(4.0	)	(4.9	)
Income tax reserve adjustments	0.5		(0.5	)	(1.0	)
Other, net	0.1		0.1		0.2
Effective tax rate	29.9	%	32.0	%	30.6	%

Significant components of deferred income tax assets and liabilities

	June 30
(In millions)	2015			2014
Deferred tax assets:
Compensation related expenses	$	218.5		$	199.1
Inventory obsolescence and other inventory related reserves	82.2			80.1
Retirement benefit obligations	97.4			94.0
Various accruals not currently deductible	167.1			174.5
Net operating loss, credit and other carryforwards	117.5			111.3
Unrecognized state tax benefits and accrued interest	25.8			19.3
Other differences between tax and financial statement values	87.0			83.9
	795.5			762.2
Valuation allowance for deferred tax assets	(120.9		)	(115.2		)
Total deferred tax assets	674.6			647.0
Deferred tax liabilities:
Depreciation and amortization	(279.6		)	(248.0		)
Other differences between tax and financial statement values	(43.9		)	(18.4		)
Total deferred tax liabilities	(323.5		)	(266.4		)
Total net deferred tax assets	$	351.1		$	380.6

Reconciliation of the beginning and ending amount of gross unrecognized tax benefits

	June 30
(In millions)	2015			2014
Beginning of the year balance of gross unrecognized tax benefits	$	58.1		$	64.0
Gross amounts of increases as a result of tax positions taken during a prior period	21.9			5.1
Gross amounts of decreases as a result of tax positions taken during a prior period	(8.1		)	(10.5		)
Gross amounts of increases as a result of tax positions taken during the current period	11.2			10.1
Amounts of decreases in unrecognized tax benefits relating to settlements with taxing authorities	(3.1		)	(6.4		)
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statutes of limitations	(2.2		)	(4.2		)
End of year balance of gross unrecognized tax benefits	$	77.8		$	58.1

Tax years that remain subject to examination by the major tax jurisdictions

Major Jurisdiction	Open Fiscal Years
Belgium	2013 – 2015
Canada	2008 – 2015
China	2011 – 2015
France	2012 – 2015
Germany	2013 – 2015
Hong Kong	2009 – 2015
Japan	2012 – 2015
Korea	2014 – 2015
Russia	2013 – 2015
Spain	2012 – 2015
Switzerland	2011 – 2015
United Kingdom	2014 – 2015
United States	2015
State of California	2012 – 2015
State and City of New York	2011 – 2015