Income Taxes (Tables)

12 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

Schedule of Income Before Income Tax, Domestic and Foreign

The following table summarizes earnings before income taxes:

(in millions)	2025		2024		2023
U.S. operations	$	1,715	$	892	$	316
Non-U.S. operations	386		309		347
Earnings before income taxes	$	2,101	$	1,201	$	663

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

The following table summarizes the components of provision for/(benefit from) income taxes:

(in millions)	2025		2024		2023
Current:
Federal	$	135	$	305	$	219
State and local	72		68		69
Non-U.S.	82		79		84
Total current	$	289	$	452	$	372
Deferred:
Federal	$	205	$	(89)	$	(23)
State and local	39		12		11
Non-U.S.	(1)		(27)		(28)
Total deferred	$	243	$	(104)	$	(40)
Provision for income taxes	$	532	$	348	$	332

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:

	2025		2024		2023
Provision at Federal statutory rate	21.0	%	21.0	%	21.0	%
State and local income taxes, net of federal benefit	4.0		3.1		6.5
Tax effect of foreign operations	0.2		(1.6)		(5.4)
Nondeductible/nontaxable items	0.7		(0.1)		(1.1)
Impact of Divestitures	—		—		(1.9)
Withholding Taxes	0.3		1.0		1.0
Change in Valuation Allowances	0.1		(1.1)		(5.1)
US Taxes on International Income (1)	(1.3)		(2.1)		0.6
Impact of Resolutions with IRS and other related matters	(0.1)		0.4		0.3
Opioid litigation	0.2		1.0		0.1
Goodwill Impairment	—		8.7		33.8
Specialty Alliance Share-based Compensation	1.4		—		—
Other	(1.2)		(1.4)		0.2
Effective income tax rate	25.3	%	28.9	%	50.0	%

(1) Includes the tax impact of the Foreign-Derived Intangible Income ("FDII") deduction offset by Global Intangible Low-Taxed Income ("GILTI") tax, and other foreign income that is taxable under the U.S. tax code.

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)	2025		2024
Deferred income tax assets:
Receivable basis difference	$	26	$	81
Accrued liabilities	651		749
Share-based compensation	23		28
Loss and tax credit carryforwards	386		512
Deferred tax assets related to uncertain tax positions	47		45
Other	97		76
Total deferred income tax assets	1,230		1,491
Valuation allowance for deferred income tax assets	(254)		(300)
Net deferred income tax assets	$	976	$	1,191
Deferred income tax liabilities:
Inventory basis differences	$	(1,103)	$	(1,122)
Property-related	(358)		(350)
Goodwill and other intangibles	(834)		(710)
Self-Insurance	(981)		(981)
Total deferred income tax liabilities	$	(3,276)	$	(3,163)
Net deferred income tax liability	$	(2,300)	$	(1,972)

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 and for uncertain tax positions, are in the following captions in the consolidated balance sheets at June 30:

(in millions)	2025		2024
Noncurrent deferred income tax asset (1)	$	64	$	72
Noncurrent deferred income tax liability (2)	(2,364)		(2,044)
Net deferred income tax liability	$	(2,300)	$	(1,972)

(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

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

(in millions)	2025		2024		2023
Balance at beginning of fiscal year	$	981	$	1,015	$	948
Additions for tax positions of the current year	8		30		25
Additions for tax positions of prior years	15		28		133
Reductions for tax positions of prior years	(101)		(87)		(16)
Settlements with tax authorities	(22)		(3)		(73)
Expiration of the statute of limitations	(2)		(2)		(2)
Balance at end of fiscal year	$	879	$	981	$	1,015