DEBT

12 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

DEBT

DEBT

Short-term borrowings

Notes and loans payable are borrowings that mature in less than one year, primarily consisting of U.S. commercial paper issued by the Company and borrowings under the Company's revolving credit agreements. Notes and loans payable were $4 and $50 as of June 30, 2024 and 2023, respectively.

The weighted average interest rates incurred on average outstanding notes and loans payable during the fiscal years ended June 30, 2024, 2023 and 2022, including fees associated with the Company’s revolving credit agreements, were 4.77%, 3.48% and 0.54% respectively.

Long-term borrowings

Long-term debt, carried at face value net of unamortized discounts, premiums and debt issuance costs, included the following as of June 30:

	2024		2023
Senior unsecured notes and debentures:
3.10%, $400 due October 2027	$	399	$	398
3.90%, $500 due May 2028	498		497
4.40%, $500 due May 2029	495		495
1.80%, $500 due May 2030	495		494
4.60%, $600 due May 2032	594		593
Total	2,481		2,477
Less: Current maturities of long-term debt	—		—
Long-term debt	$	2,481	$	2,477

In May 2022, the Company issued $1,100 in senior notes, which included $500 of senior notes with an annual fixed interest rate of 4.40%, payable semi-annually in May and November, final maturity in May 2029 that carry an effective rate of 3.89% (May 2029 senior notes), which includes the impact from the settlement of interest rate contracts in May 2022, and $600 of senior notes with an annual fixed rate of 4.60%, payable semi-annually in May and November, final maturity in May 2032 that carry an effective rate of 3.25% (May 2032 senior notes), which includes the impact from the settlement of interest rate contracts in May 2022. The notes rank equally with all of the Company's existing senior indebtedness. Proceeds from the senior notes were used to redeem prior to maturity $600 of senior notes with an annual fixed interest rate of 3.05% due in September 2022 and $500 of senior notes with an annual fixed interest rate of 3.50% due in December 2024, which were redeemed in June 2022 prior to their maturities, and for general corporate purposes. In connection with the redemption prior to maturity of the $500 of senior notes due in December 2024, the Company recorded a loss on the early extinguishment of debt of $13, which is included in Interest expense in the Consolidated Statements of Earnings, representing the difference paid in cash between the redemption price and the carrying amount of the debt extinguished of $5 and the accelerated amortization of losses on settlement of interest rate contracts and issuance costs associated with the debt extinguished of $8.

In November 2021, $300 of the Company’s senior notes with annual fixed interest rate of 3.80% became due and were repaid using commercial paper borrowings.

The weighted average interest rates incurred on average outstanding long-term debt during the fiscal years ended June 30, 2024, 2023 and 2022, were 3.25%, 3.25% and 3.25%, respectively. The weighted average effective interest rates on long-term debt balances as of both June 30, 2024 and 2023 were 3.25% and 3.25%, respectively.

Long-term debt maturities as of June 30, 2024, were $0 in fiscal years 2025 through 2027, $900 in fiscal year 2028, $500 in fiscal year 2029 and $1,100 thereafter.

Credit arrangements

As of June 30, 2023, the Company maintained a $1,200 revolving credit agreement (the Credit Agreement) that matures in March 2027. There were no borrowings under the Credit Agreement as of June 30, 2024 and June 30, 2023, respectively, and the Company believes that borrowings under the Credit Agreement will continue to be available for general corporate purposes. The Credit Agreement includes certain restrictive covenants and limitations consistent with the previous agreement, with which the Company was in compliance as of June 30, 2024 and June 30, 2023.

The Company’s borrowing capacity under the revolving credit agreements and other financing arrangements as of June 30 was as follows:

	2024		2023
Revolving credit facility	$	1,200	$	1,200
Foreign and other credit lines	34		35
Total	$	1,234	$	1,235

Of the $34 of foreign and other credit lines as of June 30, 2024, $9 was outstanding and the remainder of $25 was available for borrowing. Of the $35 of foreign and other credit lines as of June 30, 2023, $5 was outstanding and the remainder of $30 was available for borrowing.