Financial Instruments (Tables)

12 Months Ended

Jun. 30, 2012

Fair Value of Assets and Liabilities Related to Derivative Financial Instruments

The following table summarizes the fair value of our assets and liabilities related to derivative financial instruments, and the respective line items in which they were recorded in the consolidated balance sheets as of June 30, 2012 and 2011:

(in millions)	June 30, 2012		June 30, 2011
Assets:
Derivatives designated as hedging instruments:
Pay-floating interest rate swaps (1)	$	49	$	32
Foreign currency contracts (1)	2		1
Commodity contracts (1)	—		3
Total assets	$	51	$	36
Liabilities:
Derivatives designated as hedging instruments:
Foreign currency contracts (2)	$	1	$	3
Derivatives not designated as hedging instruments:
Commodity contracts (3)	1		1
Total liabilities	$	2	$	4

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

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

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

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following table summarizes the gain/(loss) recognized in earnings for interest rate swaps designated as fair value hedges for fiscal 2012, 2011 and 2010:

(in millions)	2012			2011			2010
Pay-floating interest rate swaps (1)	$	38		$	36		$	47
Fixed-rate debt (1)	(38		)	(36		)	(47		)

(1) Included in Interest expense, net on the consolidated statements of earnings.

Gain/(Loss) Recognized in OCI for Derivative Instruments Designated as Cash Flow Hedges

The following table summarizes the accumulated gain/(loss) included in OCI for derivative instruments designated as cash flow hedges as of June 30, 2012 and 2011:

(in millions)	2012			2011
Foreign currency contracts	$	—		$	(2	)
Commodity contracts	(1		)	2

Gain/(Loss) Reclassified from Accumulated OCI into Earnings for Derivative Instruments Designated as Cash Flow Hedges

The following table summarizes the gain/(loss) reclassified from accumulated OCI into earnings for derivative instruments designated as cash flow hedges for fiscal 2012, 2011 and 2010: 

(in millions)	2012			2011			2010
Pay-fixed interest rate swaps (1)	$	—		$	—		$	(2	)
Foreign currency contracts (2)	1			—			—
Foreign currency contracts (3)	(1		)	(3		)	(11		)
Foreign currency contracts (4)	(1		)	3			1
Commodity contracts (4)	2			2			—

(1) Included in Interest expense, net on the consolidated statements of earnings.

(2) Included in Revenue on the consolidated statements of earnings.

(3) Included in Cost of products sold on the consolidated statements of earnings.

(4) Included in SG&A expenses on the consolidated statements of earnings.

Gain/(Loss) Recognized in Earnings for Economic (Non-Designated) Derivative Instruments

The following table summarizes the gain/(loss) recognized in earnings for economic (non-designated) derivative instruments for fiscal 2012, 2011 and 2010:

(in millions)	2012			2011			2010
Foreign currency contracts (1)	$	(39	)	$	36		$	24
Commodity contracts (1)	(1		)	(1		)	—

(1) Included in Other income, net on the consolidated statements of earnings.

Summary of Estimated Fair Value of Our Long-Term Obligations and Other Short-Term Borrowings

The following table summarizes the estimated fair value of our long-term obligations and other short-term borrowings compared to the respective carrying amounts at June 30, 2012 and 2011:

(in millions)	2012		2011
Long-term obligations and other short-term borrowings	$	3,075	$	2,619
Carrying amount	2,894		2,502

Summary of Fair Value Gain/(Loss) of Derivative Instruments

The following is a summary of the fair value gain/(loss) of our derivative instruments, based upon the estimated amount that we would receive (or pay) to terminate the contracts as of June 30, 2012 and 2011. The fair values are based on quoted market prices for the same or similar instruments. See Note 12 for further information regarding fair value measurements.

	June 30, 2012					June 30, 2011
(in millions)	Notional Amount		Fair Value Gain/(Loss)			Notional Amount		Fair Value Gain/(Loss)
Interest rate swaps	$	773	$	49		$	1,256	$	32
Foreign currency contracts	658		1			555		(2		)
Commodity contracts	23		(1		)	32		2

Swap

Schedule of Derivative Instruments

The following tables summarize the interest rate swaps designated as fair value hedges outstanding as of June 30, 2012 and 2011:

	June 30, 2012
(in millions)	Notional Amount		Maturity Date
Pay-floating interest rate swaps	$	773	Jun 2013	-	Jun 2022

	June 30, 2011
(in millions)	Notional Amount		Maturity Date
Pay-floating interest rate swaps	$	1,256	Jun 2012	-	Dec 2020

Forward Contracts

Schedule of Derivative Instruments

The following tables summarize the outstanding cash flow hedges as of June 30, 2012 and 2011:

	June 30, 2012
(in millions)	Notional Amount		Maturity Date
Foreign currency contracts	$	158	Jul 2012	-	Jun 2013
Commodity contracts	23		Jul 2012	-	Mar 2015

	June 30, 2011
(in millions)	Notional Amount		Maturity Date
Foreign currency contracts	$	163	Jul 2011	-	Jun 2012
Commodity contracts	22		Jul 2011	-	Mar 2014

Not Designated as Hedging Instrument

Schedule of Derivative Instruments

The following tables summarize the economic (non-designated) derivative instruments outstanding as of June 30, 2012 and 2011:

	June 30, 2012
(in millions)	Notional Amount		Maturity Date
Foreign currency contracts	$	500	Jul 2012	-	Sep 2012

	June 30, 2011
(in millions)	Notional Amount		Maturity Date
Foreign currency contracts	$	392	Jul 2011
Commodity contracts	10		Jul 2011	-	Jun 2012