DEBT (Tables)

12 Months Ended

Jun. 30, 2018

DEBT

Schedule of current and long-term debt and available financing

	Debt at June 30						Available financing at June 30, 2018
(In millions)	2018			2017			Committed		Uncommitted
4.15% Senior Notes, due March 15, 2047 (“2047 Senior Notes”)	$	494		$	493		$	—	$	—
4.375% Senior Notes, due June 15, 2045 (“2045 Senior Notes”)	455			455			—		—
3.70% Senior Notes, due August 15, 2042 (“2042 Senior Notes”)	247			247			—		—
6.00% Senior Notes, due May 15, 2037 (“2037 Senior Notes”)	294			294			—		—
5.75% Senior Notes, due October 15, 2033 (“2033 Senior Notes”)	197			197			—		—
3.15% Senior Notes, due March 15, 2027 (“2027 Senior Notes”)	497			497			—		—
2.35% Senior Notes, due August 15, 2022 (“2022 Senior Notes”)	242			252			—		—
1.70% Senior Notes, due May 10, 2021 (“2021 Senior Notes”)	433			445			—		—
1.80% Senior Notes, due February 7, 2020 (“2020 Senior Notes”)	495			498			—		—
Commercial paper that matured through July 2018 and 2017 (2.00% and 1.07% average interest rate, respectively)	170			170			—		1,330
Other long-term borrowings	7			5			—		—
Other current borrowings	13			19			—		152
Revolving credit facility	—			—			1,500		—
	3,544			3,572			$	1,500	$	1,482
Less current debt including current maturities	(183		)	(189		)
	$	3,361		$	3,383

Schedule of long-term debt

As of June 30, 2018, the Company’s long-term debt consisted of the following:

Notes	Issue Date	Price		Yield		Principal		Unamortized Debt (Discount) Premium			Interest rate swap adjustments			Debt Issuance Costs			Semi-annual interest payments
($ in millions)
2047 Senior Notes(1),(8)	February 2017	99.739	%	4.165	%	$	500	$	(1	)	$	—		$	(5	)	March 15/September 15
2045 Senior Notes(2),(8)	June 2015	97.999		4.497		300		(6		)	—			(3		)	June 15/December 15
2045 Senior Notes(2),(8)	May 2016	110.847		3.753		150		16			—			(2		)	June 15/December 15
2042 Senior Notes(8)	August 2012	99.567		3.724		250		(1		)	—			(2		)	February 15/August 15
2037 Senior Notes(3),(8)	May 2007	98.722		6.093		300		(3		)	—			(3		)	May 15/November 15
2033 Senior Notes(4)	September 2003	98.645		5.846		200		(2		)	—			(1		)	April 15/October 15
2027 Senior Notes(5),(8)	February 2017	99.963		3.154		500		—			—			(3		)	March 15/September 15
2022 Senior Notes(6),(8)	August 2012	99.911		2.360		250		—			(7		)	(1		)	February 15/August 15
2021 Senior Notes(6),(7),(8)	May 2016	99.976		1.705		450		—			(15		)	(2		)	May 10/November 10
2020 Senior Notes(6),(8)	February 2017	99.986		1.805		500		—			(4		)	(1		)	February 7/August 7

(1) In November 2016, in anticipation of the issuance of the 2047 Senior Notes, the Company entered into a series of treasury lock agreements on a notional amount totaling $350 million at a weighted-average all-in rate of 3.01%.  The treasury lock agreements were settled upon the issuance of the new debt, and the Company recognized a gain in OCI of $3 million that is being amortized against interest expense over the life of the 2047 Senior Notes.  As a result of the treasury lock agreements, the debt discount and debt issuance costs, the effective interest rate on the 2047 Senior Notes will be 4.17% over the life of the debt.

(2) In April and May 2015, in anticipation of the issuance of the 2045 Senior Notes in June 2015, the Company entered into a series of forward-starting interest rate swap agreements on a notional amount totaling $300 million at a weighted-average all-in rate of 2.38%.  The forward-starting interest rate swap agreements were settled upon the issuance of the new debt and the Company recognized a gain in OCI of $18 million that will be amortized against interest expense over the life of the 2045 Senior Notes.  As a result of the forward-starting interest rate swap agreements, the debt discount and debt issuance costs, the effective interest rate on the 2045 Senior Notes will be 4.216% over the life of the debt.  In May 2016, the Company reopened this offering with the same terms and issued an additional $150 million for an aggregate amount outstanding of $450 million of 2045 Senior Notes.

(3) In April 2007, in anticipation of the issuance of the 2037 Senior Notes, the Company entered into a series of forward-starting interest rate swap agreements on a notional amount totaling $210 million at a weighted-average all-in rate of 5.45%.  The forward-starting interest rate swap agreements were settled upon the issuance of the new debt and the Company recognized a loss in OCI of $1 million that is being amortized to interest expense over the life of the 2037 Senior Notes.  As a result of the forward-starting interest rate swap agreements, the debt discount and debt issuance costs, the effective interest rate on the 2037 Senior Notes will be 6.181% over the life of the debt.

(4) In May 2003, in anticipation of the issuance of the 2033 Senior Notes, the Company entered into a series of treasury lock agreements on a notional amount totaling $195 million at a weighted-average all-in rate of 4.53%.  The treasury lock agreements were settled upon the issuance of the new debt and the Company received a payment of $15 million that is being amortized against interest expense over the life of the 2033 Senior Notes.  As a result of the treasury lock agreements, the debt discount and debt issuance costs, the effective interest rate on the 2033 Senior Notes will be 5.395% over the life of the debt.

(5) In November 2016, in anticipation of the issuance of the 2027 Senior Notes, the Company entered into a series of treasury lock agreements on a notional amount totaling $450 million at a weighted-average all-in rate of 2.37%.  The treasury lock agreements were settled upon the issuance of the new debt, and the Company recognized a gain in OCI of $2 million that is being amortized against interest expense over the life of the 2027 Senior Notes.  As a result of the treasury lock agreements, the debt discount and debt issuance costs, the effective interest rate on the 2027 Senior Notes will be 3.18% over the life of the debt.

(6) The Company entered into interest rate swap agreements with a notional amount totaling $250 million, $450 million and $250 million to effectively convert the fixed rate interest on its outstanding 2020 Senior Notes, 2021 Senior Notes and 2022 Senior Notes, respectively, to variable interest rates based on three-month LIBOR plus a margin.

(7) In April 2016, in anticipation of the issuance of the 2021 Senior Notes, the Company entered into a series of treasury lock agreements on a notional amount totaling $400 million at a weighted-average all-in rate of 1.27%.  The treasury lock agreements were settled upon the issuance of the new debt and the Company made a payment of $1 million that is being amortized to interest expense over the life of the 2021 Senior Notes.  As a result of the treasury lock agreements, the debt discount and debt issuance costs, the effective interest rate on the 2021 Senior Notes will be 1.844% over the life of the debt.

(8) The Senior Notes contain certain customary incurrence-based covenants, including limitations on indebtedness secured by liens.