INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Provision for Income Taxes on Continuing Operations by Tax Jurisdiction

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

	2020		2019		2018
Current
Federal	$	171	$	166	$	177
State	32		24		34
Foreign	45		34		43
Total current	248		224		254
Deferred
Federal	13		(22)		(24)
State	(5)		(1)		3
Foreign	(10)		3		(2)
Total deferred	(2)		(20)		(23)
Total	$	246	$	204	$	231

Earnings from Continuing Operations before Income Taxes, by Tax Jurisdiction

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

	2020		2019		2018
United States	$	1,041	$	912	$	963
Foreign	144		112		91
Total	$	1,185	$	1,024	$	1,054

Tax Rate Reconciliation

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

	2020		2019		2018
Statutory federal tax rate	21.0	%	21.0	%	28.1	%
State taxes (net of federal tax benefits)	1.7		1.7		2.4
Tax differential on foreign earnings	0.9		1.0		1.2
Federal domestic manufacturing deduction	—		—		(1.8)
Federal excess tax benefits	(2.4)		(2.3)		(1.7)
Reversals of deferred taxes related to foreign unremitted earnings	—		—		(2.6)
Remeasurement of deferred taxes	—		0.1		(3.1)
Other differences	(0.4)		(1.7)		(0.7)
Effective tax rate	20.8	%	19.8	%	21.8	%

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:

	2020		2019
Deferred tax assets
Compensation and benefit programs	$	119	$	100
Net operating loss and tax credit carryforwards	84		87
Operating and finance lease liabilities	75		—
Accruals and reserves	38		41
Basis difference related to the Venture Agreement	19		19
Inventory costs	16		22
Other	18		21
Subtotal	369		290
Valuation allowance	(38)		(44)
Total deferred tax assets	331		246
Deferred tax liabilities
Fixed and intangible assets	(256)		(236)
Lease right-of-use assets	(68)		—
Low-income housing partnerships	(9)		(13)
Other	(24)		(18)
Total deferred tax liabilities	(357)		(267)
Net deferred tax assets (liabilities)	$	(26)	$	(21)

Summary of Changes in Deferred Tax Asset Valuation Allowance

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

	2020		2019		2018
Valuation allowance at beginning of year	$	(44)	$	(43)	$	(40)
Net decrease/(increase) for other foreign deferred tax assets	1		—		—
Net decrease/(increase) for foreign net operating loss carryforwards and tax credits	5		(1)		(3)
Valuation allowance at end of year	$	(38)	$	(44)	$	(43)

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:

	2020		2019		2018
Unrecognized tax benefits at beginning of year	$	31	$	47	$	40
Gross increases - tax positions in prior periods	1		2		2
Gross decreases - tax positions in prior periods	(11)		(20)		(1)
Gross increases - current period tax positions	4		6		8
Gross decreases - current period tax positions	—		—		—
Lapse of applicable statute of limitations	(1)		(3)		(2)
Settlements	(2)		(1)		—
Unrecognized tax benefits at end of year	$	22	$	31	$	47