INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Provision for Income Taxes on Continuing Operations by Tax Jurisdiction

The provision for income taxes on continuing operations, by tax jurisdiction, consisted of the following for the fiscal years ended June 30:

	2019			2018			2017
Current
Federal	$	166		$	177		$	291
State	24			34			36
Foreign	34			43			38
Total current	224			254			365
Deferred
Federal	(22		)	(24		)	(29		)
State	(1		)	3			(2		)
Foreign	3			(2		)	(4		)
Total deferred	(20		)	(23		)	(35		)
Total	$	204		$	231		$	330

Earnings from Continuing Operations before Income Taxes, by Tax Jurisdiction

The components of earnings from continuing operations before income taxes, by tax jurisdiction, consisted of the following for the fiscal years ended June 30:

	2019		2018		2017
United States	$	912	$	963	$	927
Foreign	112		91		106
Total	$	1,024	$	1,054	$	1,033

Tax Rate Reconciliation

A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate on continuing operations follows for the fiscal years ended June 30:

	2019		2018		2017
Statutory federal tax rate	21.0	%	28.1	%	35.0	%
State taxes (net of federal tax benefits)	1.7		2.4		2.2
Tax differential on foreign earnings	1.0		1.2		(0.6	)
Federal domestic manufacturing deduction	—		(1.8	)	(2.6	)
Change in valuation allowance	0.1		0.3		0.2
Federal excess tax benefits	(2.3	)	(1.7	)	(2.0	)
Reversals of deferred taxes related to foreign unremitted earnings	—		(2.6	)	—
Remeasurement of deferred taxes	0.1		(3.1	)	—
Other differences	(1.8	)	(1.0	)	(0.3	)
Effective tax rate	19.8	%	21.8	%	31.9	%

Schedule Of Impact From Change In Tax Rate

During the second quarter of fiscal year 2018, the Company made reasonable estimates of the impacts of the Tax Act and initially recorded total benefits of $81 as provisional, as defined in Staff Accounting Bulletin No. 118, as follows:

	Adjustments
One-time net deferred tax liability reduction	$	60
One-time transition tax	(7		)
Net total one-time tax benefit	53
Beneficial year-to-date current taxable income impact	28
Total tax benefits	$	81

Components of Net Deferred Tax Assets (Liabilities)

The components of net deferred tax assets (liabilities) as of June 30 are shown below:

	2019			2018
Deferred tax assets
Compensation and benefit programs	$	100		$	103
Net operating loss and tax credit carryforwards	87			86
Accruals and reserves	41			28
Basis difference related to Venture Agreement	19			19
Inventory costs	22			16
Other	21			25
Subtotal	290			277
Valuation allowance	(44		)	(43		)
Total deferred tax assets	246			234
Deferred tax liabilities
Fixed and intangible assets	(236		)	(232		)
Low-income housing partnerships	(13		)	(17		)
Other	(18		)	(19		)
Total deferred tax liabilities	(267		)	(268		)
Net deferred tax assets (liabilities)	$	(21	)	$	(34	)

Summary of Changes in Deferred Tax Asset Valuation Allowance

Details of the valuation allowance were as follows as of June 30:

	2019			2018			2017
Valuation allowance at beginning of year	$	(43	)	$	(40	)	$	(37	)
Net decrease/(increase) for other foreign deferred tax assets	—			—			—
Net decrease/(increase) for foreign net operating loss carryforwards and tax credits	(1		)	(3		)	(3		)
Valuation allowance at end of year	$	(44	)	$	(43	)	$	(40	)

Reconciliation of Gross Unrecognized Tax Benefits

The following is a reconciliation of the beginning and ending amounts of the Company’s gross unrecognized tax benefits:

	2019			2018			2017
Unrecognized tax benefits at beginning of year	$	47		$	40		$	37
Gross increases - tax positions in prior periods	2			2			1
Gross decreases - tax positions in prior periods	(20		)	(1		)	(6		)
Gross increases - current period tax positions	6			8			9
Gross decreases - current period tax positions	—			—			—
Lapse of applicable statute of limitations	(3		)	(2		)	(1		)
Settlements	(1		)	—			—
Unrecognized tax benefits at end of year	$	31		$	47		$	40