XML 84 R42.htm IDEA: XBRL DOCUMENT v3.10.0.1
COMMITMENTS AND CONTINGENCIES (Tables)
12 Months Ended
Jun. 30, 2018
COMMITMENTS AND CONTINGENCIES  
Summary of scheduled maturities of contractual obligations for which cash flows are fixed and determinable

 

The following table summarizes scheduled maturities of the Company’s contractual obligations for which cash flows are fixed and determinable as of June 30, 2018:

 

 

 

 

 

Payments Due in Fiscal

 

 

 

(In millions)

 

Total

 

2019

 

2020

 

2021

 

2022

 

2023

 

Thereafter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt service (1)

 

$

5,679

 

$

301

 

$

624

 

$

558

 

$

101

 

$

348

 

$

3,747

 

Operating lease commitments (2)

 

3,320

 

397

 

368

 

322

 

300

 

297

 

1,636

 

Unconditional purchase obligations (3)

 

5,514

 

1,695

 

689

 

630

 

605

 

694

 

1,201

 

Gross unrecognized tax benefits and interest – current (4) 

 

4

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total contractual obligations

 

$

14,517

 

$

2,397

 

$

1,681

 

$

1,510

 

$

1,006

 

$

1,339

 

$

6,584

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Includes long-term and current debt and the related projected interest costs, and to a lesser extent, capital lease commitments.  Interest costs on long-term and current debt in fiscal 2019, 2020, 2021, 2022, 2023 and thereafter are projected to be $118 million, $117 million, $108 million, $101 million, $98 million and $1,547 million, respectively.  Projected interest costs on variable rate instruments were calculated using market rates at June 30, 2018.

 

(2)

Minimum operating lease commitments only include base rent.  Certain leases provide for contingent rents that are not measurable at inception and primarily include rents based on a percentage of sales in excess of stipulated levels, as well as common area maintenance.  These amounts are excluded from minimum operating lease commitments and are included in the determination of total rent expense when it is probable that the expense has been incurred and the amount is reasonably measurable.  Such amounts have not been material to total rent expense.  Total rental expense included in the accompanying consolidated statements of earnings was $489 million, $457 million and $442 million in fiscal 2018, 2017 and 2016, respectively.

 

(3)

Unconditional purchase obligations primarily include: inventory commitments, contingent consideration which resulted from the fiscal 2016 and 2015 acquisitions, earn-out payments related to the acquisition of Bobbi Brown, royalty payments pursuant to license agreements, advertising commitments, capital improvement commitments and non-discretionary planned funding of pension and other post-retirement benefit obligations.  Future contingent consideration, earn-out payments and royalty and advertising commitments were estimated based on planned future sales for the term that was in effect at June 30, 2018, without consideration for potential renewal periods.

 

(4)

Refer to Note 8 – Income Taxes for information regarding unrecognized tax benefits.  As of June 30, 2018, the noncurrent portion of the Company’s unrecognized tax benefits, including related accrued interest and penalties was $58 million.  At this time, the settlement period for the noncurrent portion of the unrecognized tax benefits, including related accrued interest and penalties, cannot be determined and therefore was not included.