INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2021

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:

	2021		2020		2019
Current
Federal	$	146	$	171	$	166
State	26		32		24
Foreign	41		45		34
Total current	$	213	$	248	$	224
Deferred
Federal	$	(26)	$	13	$	(22)
State	(9)		(5)		(1)
Foreign	3		(10)		3
Total deferred	(32)		(2)		(20)
Total	$	181	$	246	$	204

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:

	2021		2020		2019
United States	$	696	$	1,041	$	912
Foreign	204		144		112
Total	$	900	$	1,185	$	1,024

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:

	2021		2020		2019
Statutory federal tax rate	21.0	%	21.0	%	21.0	%
State taxes (net of federal tax benefits)	1.5		1.7		1.7
Tax differential on foreign earnings	0.2		0.9		1.0
Federal excess tax benefits	(2.7)		(2.4)		(2.3)
Other differences	0.1		(0.4)		(1.6)
Effective tax rate	20.1	%	20.8	%	19.8	%

Components of Net Deferred Tax Assets (Liabilities)

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

	2021		2020
Deferred tax assets
Compensation and benefit programs	$	104	$	119
Net operating loss and tax credit carryforwards	85		84
Operating and finance lease liabilities	100		75
Accruals and reserves	39		38
Basis difference related to the Venture Agreement	19		19
Inventory costs	18		16
Other	15		18
Subtotal	380		369
Valuation allowance	(42)		(38)
Total deferred tax assets	$	338	$	331
Deferred tax liabilities
Fixed and intangible assets	$	(232)	$	(256)
Lease right-of-use assets	(94)		(68)
Low-income housing partnerships	—		(9)
Other	(41)		(24)
Total deferred tax liabilities	(367)		(357)
Net deferred tax assets (liabilities)	$	(29)	$	(26)

Summary of Changes in Deferred Tax Asset Valuation Allowance

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

	2021		2020		2019
Valuation allowance at beginning of year	$	(38)	$	(44)	$	(43)
Net decrease/(increase) for other foreign deferred tax assets	(1)		1		—
Net decrease/(increase) for foreign net operating loss carryforwards and tax credits	(3)		5		(1)
Valuation allowance at end of year	$	(42)	$	(38)	$	(44)

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:

	2021		2020		2019
Unrecognized tax benefits at beginning of year	$	22	$	31	$	47
Gross increases - tax positions in prior periods	1		1		2
Gross decreases - tax positions in prior periods	(5)		(11)		(20)
Gross increases - current period tax positions	3		4		6
Gross decreases - current period tax positions	—		—		—
Lapse of applicable statute of limitations	—		(1)		(3)
Settlements	—		(2)		(1)
Unrecognized tax benefits at end of year	$	21	$	22	$	31