LEASES

12 Months Ended

Jun. 30, 2024

Leases [Abstract]

LEASES

LEASES

The Company leases various property, plant and equipment, including office, warehousing, manufacturing and research and development facilities and equipment. These leases have remaining lease terms of up to 33 years, inclusive of renewal or termination options that the Company is reasonably certain to exercise. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Supplemental balance sheet information related to the Company’s leases as of June 30 was as follows:

	Balance sheet classification	2024		2023
Operating leases
Right-of-use assets	Operating lease right-of-use assets	$	360	$	346
Current lease liabilities	Current operating lease liabilities	$	84	$	87
Non-current lease liabilities	Long-term operating lease liabilities	334		310
Total operating lease liabilities		$	418	$	397
Finance leases
Right-of-use assets	Other assets	$	33	$	29
Current lease liabilities	Accounts payable and accrued liabilities	$	13	$	9
Non-current lease liabilities	Other liabilities	21		21
Total finance lease liabilities		$	34	$	30

Components of lease cost were as follows for the fiscal years ended June 30:

	2024		2023
Operating lease cost	$	97	$	89
Finance lease cost:
Amortization of right-of-use assets	$	11	$	9
Interest on lease liabilities	1		1
Total finance lease cost	$	12	$	10
Variable lease cost	$	94	$	87
Short term lease cost	$	3	$	4

Supplemental cash flow information and noncash activity related to the Company’s leases were as follows during fiscal years ended June 30:

	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases, net	$	97	$	88
Operating cash flows from finance leases	1		1
Financing cash flows from finance leases	11		8
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	113	$	84
Finance leases	17		21

Weighted-average remaining lease term and discount rate for the Company’s leases were as follows as of fiscal year ended June 30:

	2024
Weighted-average remaining lease term:
Operating leases	5 years
Finance leases	3 years
Weighted-average discount rate:
Operating leases	3.6	%
Finance leases	5.1	%

Maturities of lease liabilities by fiscal year for the Company’s leases as of June 30, 2024 were as follows:

Year	Operating leases		Finance leases
2025	$	97	$	14
2026	94		12
2027	84		7
2028	69		2
2029	56		1
Thereafter	61		—
Total lease payments	$	461	$	36
Less: Imputed interest	43		2
Total lease liabilities	$	418	$	34

Operating and finance lease payments presented in the table above exclude $2 and $3, respectively, of minimum lease payments signed but not yet commenced as of June 30, 2024.

On December 14, 2023, the Company completed an asset sale-leaseback transaction on a warehouse in Fairfield, California. The Company received proceeds of $19, net of selling costs. The asset had a carrying value of $3 and the transaction resulted in a $16 gain, which was recognized in Other (income) expense, net in the Health and Wellness segment. The leaseback is accounted for as an operating lease. The term of the lease is 8 years with options to extend the lease for two 5 year periods.

On May 25, 2022, the Company completed an asset sale-leaseback transaction on a plant in Ontario, Canada. The Company received proceeds of $16, net of selling costs. The asset had a carrying value of $2, and the transaction resulted in a $14 gain, which was recognized in Other (income) expense, net, in Corporate and Other. The leaseback is accounted for as an operating lease. The term of the lease at inception date is 10 years, with the option to terminate the lease at 7 years.

LEASES

LEASES

The Company leases various property, plant and equipment, including office, warehousing, manufacturing and research and development facilities and equipment. These leases have remaining lease terms of up to 33 years, inclusive of renewal or termination options that the Company is reasonably certain to exercise. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Supplemental balance sheet information related to the Company’s leases as of June 30 was as follows:

	Balance sheet classification	2024		2023
Operating leases
Right-of-use assets	Operating lease right-of-use assets	$	360	$	346
Current lease liabilities	Current operating lease liabilities	$	84	$	87
Non-current lease liabilities	Long-term operating lease liabilities	334		310
Total operating lease liabilities		$	418	$	397
Finance leases
Right-of-use assets	Other assets	$	33	$	29
Current lease liabilities	Accounts payable and accrued liabilities	$	13	$	9
Non-current lease liabilities	Other liabilities	21		21
Total finance lease liabilities		$	34	$	30

Components of lease cost were as follows for the fiscal years ended June 30:

	2024		2023
Operating lease cost	$	97	$	89
Finance lease cost:
Amortization of right-of-use assets	$	11	$	9
Interest on lease liabilities	1		1
Total finance lease cost	$	12	$	10
Variable lease cost	$	94	$	87
Short term lease cost	$	3	$	4

Supplemental cash flow information and noncash activity related to the Company’s leases were as follows during fiscal years ended June 30:

	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases, net	$	97	$	88
Operating cash flows from finance leases	1		1
Financing cash flows from finance leases	11		8
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	113	$	84
Finance leases	17		21

Weighted-average remaining lease term and discount rate for the Company’s leases were as follows as of fiscal year ended June 30:

	2024
Weighted-average remaining lease term:
Operating leases	5 years
Finance leases	3 years
Weighted-average discount rate:
Operating leases	3.6	%
Finance leases	5.1	%

Maturities of lease liabilities by fiscal year for the Company’s leases as of June 30, 2024 were as follows:

Year	Operating leases		Finance leases
2025	$	97	$	14
2026	94		12
2027	84		7
2028	69		2
2029	56		1
Thereafter	61		—
Total lease payments	$	461	$	36
Less: Imputed interest	43		2
Total lease liabilities	$	418	$	34

Operating and finance lease payments presented in the table above exclude $2 and $3, respectively, of minimum lease payments signed but not yet commenced as of June 30, 2024.

On December 14, 2023, the Company completed an asset sale-leaseback transaction on a warehouse in Fairfield, California. The Company received proceeds of $19, net of selling costs. The asset had a carrying value of $3 and the transaction resulted in a $16 gain, which was recognized in Other (income) expense, net in the Health and Wellness segment. The leaseback is accounted for as an operating lease. The term of the lease is 8 years with options to extend the lease for two 5 year periods.

On May 25, 2022, the Company completed an asset sale-leaseback transaction on a plant in Ontario, Canada. The Company received proceeds of $16, net of selling costs. The asset had a carrying value of $2, and the transaction resulted in a $14 gain, which was recognized in Other (income) expense, net, in Corporate and Other. The leaseback is accounted for as an operating lease. The term of the lease at inception date is 10 years, with the option to terminate the lease at 7 years.