Income Taxes (Tables)

12 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Earnings before income taxes and discontinued operations are:

(in millions)	2014		2013		2012
U.S. Operations	$	1,665	$	651	$	1,514
Non-U.S. Operations	133		237		184
Earnings before income taxes and discontinued operations	$	1,798	$	888	$	1,698

Schedule of Components of Income Tax Expense (Benefit), Current and Deferred

The provision for income taxes from continuing operations consists of the following:

(in millions)	2014			2013			2012
Current:
Federal	$	521		$	451		$	430
State and local	51			62			27
Non-U.S.	37			19			13
Total current	$	609		$	532		$	470
Deferred:
Federal	$	24		$	28		$	124
State and local	3			(5		)	28
Non-U.S.	(1		)	(2		)	6
Total deferred	26			21			158
Provision for income taxes	$	635		$	553		$	628

Schedule of Effective Income Tax Rate Reconciliation

The following table presents a reconciliation of the provision based on the federal statutory income tax rate to our effective income tax rate from continuing operations:

	2014		2013		2012
Provision at Federal statutory rate	35.0	%	35.0	%	35.0	%
State and local income taxes, net of federal benefit	2.2		2.5		2.3
Foreign tax rate differential	(1.2	)	(4.0	)	(2.2	)
Nondeductible/nontaxable items	(0.2	)	(0.5	)	—
Nondeductible goodwill impairment	—		33.2		—
Change in measurement of an uncertain tax position and impact of IRS settlements	(0.4	)	(5.7	)	0.9
Other	(0.1	)	1.8		1.0
Effective income tax rate	35.3	%	62.3	%	37.0	%

Schedule of Deferred Tax Assets and Liabilities

The following table presents the components of the deferred income tax assets and liabilities at June 30:

(in millions)	2014			2013
Deferred income tax assets:
Receivable basis difference	$	59		$	50
Accrued liabilities	111			115
Share-based compensation	51			66
Loss and tax credit carryforwards	191			158
Deferred tax assets related to uncertain tax positions	84			127
Other	42			82
Total deferred income tax assets	538			598
Valuation allowance for deferred income tax assets	(94		)	(88		)
Net deferred income tax assets	$	444		$	510
Deferred income tax liabilities:
Inventory basis differences	$	(1,164	)	$	(1,160	)
Property-related	(142		)	(173		)
Goodwill and other intangibles	(340		)	(299		)
Other	(7		)	(6		)
Total deferred income tax liabilities	(1,653		)	(1,638		)
Net deferred income tax liability	$	(1,209	)	$	(1,128	)

Schedule of deferred tax assets and liabilities after netting by tax jurisdiction

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

(in millions)	2014			2013
Current deferred income tax asset (1)	$	18		$	15
Noncurrent deferred income tax asset (2)	15			17
Current deferred income tax liability (3)	(918		)	(908		)
Noncurrent deferred income tax liability (4)	(324		)	(252		)
Net deferred income tax liability	$	(1,209	)	$	(1,128	)

(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 Unrecognized Tax Benefits Roll Forward

The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits:

(in millions)	2014			2013			2012
Balance at beginning of fiscal year	$	650		$	654		$	747
Additions for tax positions of the current year	16			22			16
Additions for tax positions of prior years	94			97			68
Reductions for tax positions of prior years	(40		)	(30		)	(3		)
Settlements with tax authorities	(210		)	(93		)	(172		)
Expiration of the statute of limitations	—			—			(2		)
Balance at end of fiscal year	$	510		$	650		$	654