INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

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

	2024		2023		2022
Current
Federal	$	132	$	153	$	71
State	18		33		17
Foreign	56		40		43
Total current	$	206	$	226	$	131
Deferred
Federal	$	(99)	$	(120)	$	6
State	(5)		(28)		(2)
Foreign	4		(1)		1
Total deferred	(100)		(149)		5
Total	$	106	$	77	$	136

Schedule of Components of Earnings Before Income Taxes

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

	2024		2023		2022
United States	$	311	$	154	$	483
Foreign	87		84		124
Total	$	398	$	238	$	607

Schedule of Reconciliation of Effective Tax Rate

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:

	2024		2023		2022
Statutory federal tax rate	21.0	%	21.0	%	21.0	%
State taxes (net of federal tax benefits)	2.5		1.6		1.9
Foreign tax rate differential	7.7		8.6		3.1
Federal excess tax benefits	(0.3)		(1.8)		(0.9)
Net U.S. tax on foreign income	(5.2)		(2.3)		(1.7)
Loss on divestiture	10.5		—		—
International legal entity reorganization	(6.1)		—		—
VMS goodwill impairment	—		8.6		—
Federal research and development credits	(1.2)		(2.7)		(0.8)
Other differences	(2.4)		(0.6)		(0.2)
Effective tax rate	26.5	%	32.4	%	22.4	%

Schedule of Components of Net Deferred Tax Assets (Liabilities)

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

	2024		2023
Deferred tax assets
Compensation and benefit programs	$	109	$	123
Loss and tax credit carryforwards	153		94
Operating and finance lease liabilities	111		104
Accruals and reserves	33		46
Capitalized research and development	43		34
Inventory costs	29		32
Other	33		34
Subtotal	511		467
Valuation allowance	(115)		(59)
Total deferred tax assets	$	396	$	408
Deferred tax liabilities
Property, plant and equipment and intangible assets	$	(84)	$	(157)
Lease right-of-use assets	(100)		(96)
Other	(36)		(36)
Total deferred tax liabilities	(220)		(289)
Net deferred tax assets (liabilities)	$	176	$	119
The net deferred tax assets and liabilities included in the consolidated balance sheet at June 30 were as follows:
Net deferred tax assets (1)	$	198	$	147
Net deferred tax liabilities	(22)		(28)
Net deferred tax assets (liabilities)	$	176	$	119

(1)Net deferred tax assets are recorded in Other assets.

Summary of Changes in Valuation Allowance

Changes in the valuation allowance on deferred tax assets were as follows for the years ended June 30:

	2024		2023		2022
Valuation allowance at beginning of year	$	(59)	$	(52)	$	(42)
Net increase/(decrease) for U.S. capital loss carryfowards	(46)		—		—
Net decrease/(increase) for other foreign deferred tax assets	(2)		(1)		(1)
Net decrease/(increase) for foreign and U.S. net operating loss carryforwards and tax credits	(8)		(6)		(9)
Valuation allowance at end of year	$	(115)	$	(59)	$	(52)

Summary of Tax Credit Carryforwards

The Company's carryforwards for capital losses, net operating losses, and tax credits, with related valuation allowances were as follows as of June 30:

	2024
	Carryforwards		Valuation Allowances		Net Carryforwards		Fiscal Year Expiring
Capital losses in U.S. jurisdictions	46		(46)		—		2029
Net operating losses
U.S. jurisdictions	6		(5)		1		2030 - 2042
U.S. jurisdictions (with no expiration)	9		(8)		1		N/A
Foreign jurisdictions	18		(16)		2		2025 - 2044
Foreign jurisdictions (with no expiration)	8		—		8		N/A
Total net operating losses	41		(29)		12
Income tax credits
U.S. jurisdictions	30		—		30		2025 - 2034
U.S. jurisdictions (with no expiration)	2		—		2		N/A
Foreign jurisdictions	30		(30)		—		2026
Foreign jurisdictions (with no expiration)	4		(3)		1		N/A
Total income tax credits	66		(33)		33
Total carryforwards	$	153	$	(108)	$	45

	2023
	Carryforwards		Valuation Allowances		Net Carryforwards		Fiscal Year Expiring
Capital losses in U.S. jurisdictions	—		—		—		N/A
Net operating losses
U.S. jurisdictions	4		(4)		—		2030 - 2042
U.S. jurisdictions (with no expiration)	6		(5)		1		N/A
Foreign jurisdictions	21		(16)		5		2024 - 2040
Foreign jurisdictions (with no expiration)	9		(1)		8		N/A
Total net operating losses	40		(26)		14
Income tax credits
U.S. jurisdictions	23		—		23		2024 - 2033
U.S. jurisdictions (with no expiration)	2		—		2		N/A
Foreign jurisdictions (with no expiration)	29		(28)		1		N/A
Total income tax credits	54		(28)		26
Total carryforwards	$	94	$	(54)	$	40

Summary of Operating Loss Carryforwards

The Company's carryforwards for capital losses, net operating losses, and tax credits, with related valuation allowances were as follows as of June 30:

	2024
	Carryforwards		Valuation Allowances		Net Carryforwards		Fiscal Year Expiring
Capital losses in U.S. jurisdictions	46		(46)		—		2029
Net operating losses
U.S. jurisdictions	6		(5)		1		2030 - 2042
U.S. jurisdictions (with no expiration)	9		(8)		1		N/A
Foreign jurisdictions	18		(16)		2		2025 - 2044
Foreign jurisdictions (with no expiration)	8		—		8		N/A
Total net operating losses	41		(29)		12
Income tax credits
U.S. jurisdictions	30		—		30		2025 - 2034
U.S. jurisdictions (with no expiration)	2		—		2		N/A
Foreign jurisdictions	30		(30)		—		2026
Foreign jurisdictions (with no expiration)	4		(3)		1		N/A
Total income tax credits	66		(33)		33
Total carryforwards	$	153	$	(108)	$	45

	2023
	Carryforwards		Valuation Allowances		Net Carryforwards		Fiscal Year Expiring
Capital losses in U.S. jurisdictions	—		—		—		N/A
Net operating losses
U.S. jurisdictions	4		(4)		—		2030 - 2042
U.S. jurisdictions (with no expiration)	6		(5)		1		N/A
Foreign jurisdictions	21		(16)		5		2024 - 2040
Foreign jurisdictions (with no expiration)	9		(1)		8		N/A
Total net operating losses	40		(26)		14
Income tax credits
U.S. jurisdictions	23		—		23		2024 - 2033
U.S. jurisdictions (with no expiration)	2		—		2		N/A
Foreign jurisdictions (with no expiration)	29		(28)		1		N/A
Total income tax credits	54		(28)		26
Total carryforwards	$	94	$	(54)	$	40

Schedule of 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:

	2024		2023		2022
Unrecognized tax benefits at beginning of year	$	17	$	17	$	21
Gross increases - tax positions in prior periods	—		1		—
Gross decreases - tax positions in prior periods	(4)		(3)		(7)
Gross increases - current period tax positions	9		2		4
Gross decreases - current period tax positions	—		—		—
Lapse of applicable statute of limitations	—		—		(1)
Settlements	—		—		—
Unrecognized tax benefits at end of year	$	22	$	17	$	17