Income Taxes (Tables)

12 Months Ended

Jun. 30, 2012

Schedule of Earnings Before Income Taxes and Discontinued Operations

Earnings before income taxes and discontinued operations are as follows for fiscal 2012, 2011 and 2010:



(in millions)	2012		2011		2010
U.S. Operations	$	1,514	$	1,299	$	980
Non-U.S. Operations	184		219		232
Earnings before income taxes and discontinued operations	$	1,698	$	1,518	$	1,212

Schedule of Income Taxes Current and Deferred

The provision for income taxes from continuing operations consists of the following for fiscal 2012, 2011 and 2010:



(in millions)	2012		2011		2010
Current:
Federal	$	430	$	387	$	430
State and local	27		20		63
Non-U.S.	13		17		12
Total current	$	470	$	424	$	505
Deferred:
Federal	124		92		103
State and local	28		29		18
Non-U.S.	6		7		(1		)
Total deferred	$	158	$	128	$	120
Provision for income taxes	$	628	$	552	$	625

Schedule of Reconciliation of Federal Statutory Income Tax Rate

A reconciliation of the provision based on the federal statutory income tax rate to our effective income tax rate from continuing operations is as follows for fiscal 2012, 2011 and 2010:



	2012		2011		2010
Provision at Federal statutory rate	35.0	%	35.0	%	35.0	%
State and local income taxes, net of federal benefit	2.3		2.6		4.2
Foreign tax rate differential	(2.3	)	(2.5	)	(3.3	)
Nondeductible/nontaxable items	—		0.6		0.2
Change in measurement of an uncertain tax position and an IRS settlement	0.9		2.4		1.3
Valuation allowances	0.1		(0.6	)	(2.3	)
Unremitted foreign earnings	(0.2	)	(0.1	)	13.9
Other	1.2		(1.0	)	2.6
Effective income tax rate	37.0	%	36.4	%	51.6	%

Schedule of Deferred Income Tax Assets and Liabilities

The components of the deferred income tax assets and liabilities as of June 30, 2012 and 2011 are as follows:



(in millions)	2012			2011
Deferred income tax assets:
Receivable basis difference	$	46		$	46
Accrued liabilities	107			105
Share-based compensation	90			97
Loss and tax credit carryforwards	120			199
Deferred tax assets related to uncertain tax positions	118			157
Other	85			97
Total deferred income tax assets	$	566		$	701
Valuation allowance for deferred income tax assets	(86		)	(158		)
Net deferred income tax assets	$	480		$	543
Deferred income tax liabilities:
Inventory basis differences	$	(1,067	)	$	(980	)
Property-related	(180		)	(159		)
Goodwill and other intangibles	(146		)	(70		)
Unremitted foreign earnings	(64		)	(140		)
Other	(5		)	(3		)
Total deferred income tax liabilities	$	(1,462	)	$	(1,352	)
Net deferred income tax liability	$	(982	)	$	(809	)

Schedule of Deferred Tax Assets and Liabilities after Netting by Tax Jurisdiction

Deferred tax assets and liabilities in the preceding table, after netting by taxing jurisdiction, are in the following captions in the consolidated balance sheet at June 30, 2012 and 2011:



(in millions)	2012			2011
Current deferred income tax asset (1)	$	27		$	29
Noncurrent deferred income tax asset (2)	6			10
Current deferred income tax liability (3)	(858		)	(763		)
Noncurrent deferred income tax liability (4)	(157		)	(85		)
Net deferred income tax liability	$	(982	)	$	(809	)


(1)	Included in Prepaid expenses and other in the consolidated balance sheets.


(2)	Included in Other assets in the consolidated balance sheets.


(3)	Included in Other accrued liabilities in the consolidated balance sheets.


(4)	Included in Deferred income taxes and other liabilities in the consolidated balance sheets.

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits for fiscal 2012, 2011 and 2010 is as follows:



(in millions)	2012			2011			2010
Balance at beginning of fiscal year	$	747		$	731		$	849
Additions for tax positions of the current year	16			16			43
Additions for tax positions of prior years	68			58			90
Reductions for tax positions of prior years	(3		)	(20		)	(240		)
Settlements with tax authorities	(172		)	(36		)	(10		)
Expiration of the statute of limitations	(2		)	(2		)	(1		)
Balance at end of fiscal year	$	654		$	747		$	731