Income Taxes (Tables)

12 Months Ended

Jun. 30, 2017

Income Tax Disclosure [Abstract]

Schedule of Income Before Income Tax, Domestic and Foreign

The following table summarizes earnings from continuing operations before income taxes:

(in millions)	2017		2016		2015
U.S. operations	$	1,772	$	2,050	$	1,733
Non-U.S. operations	152		226		234
Earnings from continuing operations before income taxes	$	1,924	$	2,276	$	1,967

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

The following table summarizes the components of provision for income taxes from continuing operations:

(in millions)	2017			2016			2015
Current:
Federal	$	273		$	633		$	424
State and local	10			52			83
Non-U.S.	56			73			29
Total current	$	339		$	758		$	536
Deferred:
Federal	$	258		$	96		$	196
State and local	37			12			24
Non-U.S.	(4		)	(21		)	(1		)
Total deferred	291			87			219
Provision for income taxes	$	630		$	845		$	755

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:

	2017		2016		2015
Provision at federal statutory rate	35.0	%	35.0	%	35.0	%
State and local income taxes, net of federal benefit	1.0		1.5		4.1
Foreign tax rate differential	(0.2	)	(0.6	)	(2.4	)
Nondeductible/nontaxable items	0.2		1.0		0.7
Other	(3.3	)	0.2		1.0
Effective income tax rate	32.7	%	37.1	%	38.4	%

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)	2017			2016
Deferred income tax assets:
Receivable basis difference	$	42		$	44
Accrued liabilities	125			133
Share-based compensation	53			56
Loss and tax credit carryforwards	378			193
Deferred tax assets related to uncertain tax positions	51			95
Other	43			46
Total deferred income tax assets	692			567
Valuation allowance for deferred income tax assets	(237		)	(93		)
Net deferred income tax assets	$	455		$	474
Deferred income tax liabilities:
Inventory basis differences	$	(1,578	)	$	(1,351	)
Property-related	(183		)	(172		)
Goodwill and other intangibles	(570		)	(607		)
Total deferred income tax liabilities	$	(2,331	)	$	(2,130	)
Net deferred income tax liability	$	(1,876	)	$	(1,656	)

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)	2017			2016
Noncurrent deferred income tax asset (1)	73			42
Noncurrent deferred income tax liability (2)	(1,949		)	(1,698		)
Net deferred income tax liability	$	(1,876	)	$	(1,656	)

(1) Included in other assets in the consolidated balance sheets.

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

Schedule of Unrecognized Tax Benefits Roll Forward

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

(in millions)	2017			2016			2015
Balance at beginning of fiscal year	$	527		$	542		$	510
Additions for tax positions of the current year	29			22			15
Additions for tax positions of prior years	23			42			69
Reductions for tax positions of prior years	(8		)	(48		)	(42		)
Settlements with tax authorities	(154		)	(30		)	(10		)
Expiration of the statute of limitations	—			(1		)	—
Balance at end of fiscal year	$	417		$	527		$	542