INCOME TAXES (TABLES)

12 Months Ended

Jun. 30, 2011

Notes to Financial Statements [Abstract]

Earnings from Continuing Operations Before Income Taxes

Earnings from continuing operations before income taxes (adjusted for net earnings attributable to noncontrolling interests) consisted of the following:

Years ended June 30	2011		2010		2009
United States	$	8,983	$	8,368	$	8,409
International	6,206		6,679		6,004
TOTAL	15,189		15,047		14,413

Schedule of Components of Income Tax Expense (Benefit)

Income taxes on continuing operations (adjusted for net earnings attributable to noncontrolling interests) consisted of the following:

Years ended June 30	2011			2010			2009
CURRENT TAX EXPENSE
U.S. federal	$	1,809		$	2,154		$	1,619
International	1,188			1,616			1,268
U.S. state and local	266			295			229
	3,263			4,065			3,116
DEFERRED TAX EXPENSE
U.S. federal	205			253			595
International and other	(76		)	(217		)	22
	129			36			617
TOTAL TAX EXPENSE	3,392			4,101			3,733

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the U.S. federal statutory income tax rate to our actual income tax rate on continuing operations (adjusted for net earnings attributable to noncontrolling interests) is provided below:

Years ended June 30	2011		2010		2009
U.S. federal statutory income tax rate	35.0	%	35.0	%	35.0	%
Country mix impacts of foreign operations	(8.0	)%	(7.5	)%	(7.1	)%
Changes in uncertain tax positions	(3.5	)%	(0.4	)%	(1.3	)%
Patient Protection and Affordable Care Act	0.0	%	1.0	%	0.0	%
Other	(1.2	)%	(0.8	)%	(0.7	)%
EFFECTIVE INCOME TAX RATE	22.3	%	27.3	%	25.9	%

Reconciliation of the Beginning and Ending Liability for Unrecognized Tax Benefits

A reconciliation of the beginning and ending liability for uncertain tax positions is as follows:

	2011			2010			2009
BEGINNING OF YEAR	$	1,797		$	2,003		$	2,582
Increases in tax positions for prior years	323			128			116
Decreases in tax positions for prior years	(388		)	(146		)	(485		)
Increases in tax positions for current year	222			193			225
Settlements with taxing authorities	(168		)	(216		)	(172		)
Lapse in statute of limitations	(94		)	(45		)	(68		)
Currency translation	156			(120		)	(195		)
END OF YEAR	1,848			1,797			2,003

Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities were comprised of the following:

June 30	2011			2010
DEFERRED TAX ASSETS
Pension and postretirement benefits	$	1,406		$	1,717
Stock-based compensation	1,284			1,257
Loss and other carryforwards	874			595
Goodwill and other intangible assets	298			312
Accrued marketing and promotion	217			216
Fixed assets	111			102
Unrealized loss on financial and foreign exchange transactions	770			88
Accrued interest and taxes	28			88
Inventory	52			35
Other	834			773
Valuation allowances	(293		)	(120		)
TOTAL	5,581			5,063
DEFERRED TAX LIABILITIES
Goodwill and other intangible assets	12,206			11,760
Fixed assets	1,742			1,642
Other	211			269
TOTAL	14,159			13,671