v3.24.2.u1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of fair values of the derivative financial instruments included in the consolidated balance sheets
The fair values of the Company’s derivative financial instruments included in the consolidated balance sheets are presented as follows:
Asset DerivativesLiability Derivatives
Fair Value (1)
Fair Value (1)
June 30June 30
(In millions)Balance Sheet
Location		20242023Balance Sheet
Location		20242023
Derivatives Designated as Hedging Instruments:
Foreign currency cash flow hedges(2)
Prepaid expenses and other current assets; Other assets
$34 $56 Other accrued liabilities$4 $16 
Cross-currency swap contracts(3)
Prepaid expenses and other current assets; Other assets
80 22 — — 
Net investment hedgesPrepaid expenses and other current assets15 — Other accrued liabilities— 13 
Interest rate-related derivatives— — Other accrued liabilities145 150 
Total Derivatives Designated as Hedging Instruments129 78 149 179 
Derivatives Not Designated as Hedging Instruments:
Foreign currency forward contractsPrepaid expenses and other current assets19 20 Other accrued liabilities17 20 
Total derivatives$148 $98 $166 $199 
(1)See Note 14 – Fair Value Measurements for further information about how the fair value of derivative assets and liabilities are determined.
(2)Included in the asset derivatives for the foreign currency cash flow hedges at June 30, 2024 is approximately $2 million, classified within Other assets in the accompanying consolidated balance sheets.
(3)Included in the asset derivatives for the cross-currency swap contracts at June 30, 2024 is approximately $70 million, classified within Other assets in the accompanying consolidated balance sheets.
Schedule of gains and losses related to derivative financial instruments designated as hedging instruments that are included in the assessment of effectiveness
The amounts of the gains and losses related to the Company’s derivative financial instruments designated as hedging instruments that are included in the assessment of effectiveness are as follows:
Amount of Gain (Loss)
Recognized in OCI on Derivatives		Location of Gain
(Loss) Reclassified
Amount of Gain (Loss)
Reclassified from AOCI into
Earnings(1)
June 30from AOCI intoJune 30
(In millions)20242023Earnings2024
2023
Derivatives in Cash Flow Hedging Relationships:
Foreign currency forward contracts$47 $57 Net sales$50 $71 
Interest rate-related derivatives— 2 Interest expense— (1)
47 59 50 70 
Derivatives in Net Investment Hedging Relationships(2):
Foreign currency forward contracts(3)
1 (35)— — 
Total derivatives$48 $24 $50 $70 
(1)The amount reclassified into earnings as a result of the discontinuance of cash flow hedges because it is probable that forecasted transactions will not occur by the end of the original time period was not material.
(2)During fiscal 2024 and 2023 the gain recognized in earnings from net investment hedges related to the amount excluded from effectiveness testing was $17 million and $26 million, respectively.
(3)Included within translation adjustments as a component of AOCI on the Company’s consolidated balance sheets.

  Amount of Gain (Loss) Recognized in Earnings on Derivatives
 Location of Gain (Loss)June 30
(In millions) Recognized in Earnings on Derivatives20242023
Derivatives in Fair Value Hedging
Relationships:		   
Cross-currency swap contracts(1)
Selling, general and administrative$44 $42 
Interest rate swap contracts(2)
Interest expense$5 $(36)
(1)Changes in the fair value representing hedge components included in the assessment of effectiveness of the cross-currency swap contracts are exactly offset by the change in the fair value of the underlying intercompany foreign currency denominated debt. The gain recognized in earnings from cross-currency swap contracts related to the amount excluded from effectiveness testing in fiscal 2024 and 2023 was $19 million and $9 million, respectively.
(2)Changes in the fair value of the interest rate swap agreements are exactly offset by the change in the fair value of the underlying long-term debt.
Schedule of cumulative amount of fair value hedging adjustments for designated and qualifying hedged items
Additional information regarding the cumulative amount of fair value hedging gain (loss) recognized in earnings for items designated and qualifying as hedged items in fair value hedges is as follows:
(In millions)
Line Item in the Consolidated Balance Sheets in Which the Hedged Item is IncludedCarrying Amount of the
Hedged Liabilities		Cumulative Amount of Fair
Value Hedging Gain (Loss)
Included in the Carrying Amount of the Hedged Liability
June 30, 2024June 30, 2024
Long-term debt$849 $(145)
Intercompany debt$— $87 
Schedule of effects of fair value and cash flow hedging relationships for designated and qualified hedging instruments
Additional information regarding the effects of fair value and cash flow hedging relationships for derivatives designated and qualifying as hedging instruments is as follows:
June 30
 20242023
(In millions)Net SalesSelling, General and AdministrativeInterest ExpenseNet SalesSelling, General and AdministrativeInterest Expense
Total amounts of income and expense line items presented in the consolidated statements of earnings in which the effects of fair value and cash flow hedges are recorded$15,608 $9,621 $378 $15,910 $9,575 $255 
The effects of fair value and cash flow hedging relationships:
Gain (loss) on fair value hedge relationships – interest rate contracts:
Hedged itemN/AN/A(5)N/AN/A36 
Derivatives designated as hedging instrumentsN/AN/A5 N/AN/A(36)
Gain (loss) on fair value hedge relationships – cross-currency swap contracts:
Hedged itemN/A(44)N/AN/A(42)N/A
Derivatives designated as hedging instrumentsN/A44 N/AN/A42 N/A
Loss on cash flow hedge relationships – interest rate contracts:
Amount of loss reclassified from AOCI into earningsN/AN/A— N/AN/A(1)
Gain on cash flow hedge relationships – foreign currency forward contracts:
Amount of gain reclassified from AOCI into earnings50 N/AN/A71 N/AN/A
N/A (Not applicable)
June 30
 2022
(In millions)Net SalesSelling, General and AdministrativeInterest Expense
Total amounts of income and expense line items presented in the consolidated statements of earnings in which the effects of fair value and cash flow hedges are recorded$17,737 $9,888 $167 
The effects of fair value and cash flow hedging relationships:
Gain (loss) on fair value hedge relationships – interest rate contracts:
Hedged itemN/AN/A130 
Derivatives designated as hedging instrumentsN/AN/A(130)
Gain (loss) on fair value hedge relationships – cross-currency swap contracts:
Hedged itemN/A— N/A
Derivatives designated as hedging instrumentsN/A— N/A
Loss on cash flow hedge relationships – interest rate contracts:
Amount of loss reclassified from AOCI into earningsN/AN/A(1)
Gain on cash flow hedge relationships – foreign currency forward contracts:
Amount of gain reclassified from AOCI into earnings3 N/AN/A
N/A (Not applicable)
Schedule of gains and losses related to derivative financial instruments not designated as hedging instruments
The amount of the gains and losses related to the Company’s derivative financial instruments not designated as hedging instruments are presented as follows:
  Amount of Gain (Loss)
Recognized in Earnings on Derivatives
 Location of Gain (Loss) June 30
(In millions)Recognized in Earnings on Derivatives20242023
Derivatives Not Designated as Hedging Instruments:   
Foreign currency forward contractsSelling, general and administrative$62 $(10)
Schedule of Offsetting Liabilities The following table provides information as if the Company had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria in the event of default or termination as stipulated by the terms of netting arrangements with each of the counterparties:
As of June 30, 2024As of June 30, 2023
(In millions)Gross Amounts of Assets / (Liabilities) Presented in Balance SheetContracts Subject to NettingNet Amounts of Assets / (Liabilities)Gross Amounts of Assets / (Liabilities) Presented in Balance SheetContracts Subject to NettingNet Amounts of Assets / (Liabilities)
Derivative Financial Contracts
Derivative assets$148 $(49)$99 $98 $(53)$45 
Derivative liabilities(166)49 (117)(199)53 (146)
Total$(18)$— $(18)$(101)$— $(101)
Schedule of Offsetting Assets The following table provides information as if the Company had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria in the event of default or termination as stipulated by the terms of netting arrangements with each of the counterparties:
As of June 30, 2024As of June 30, 2023
(In millions)Gross Amounts of Assets / (Liabilities) Presented in Balance SheetContracts Subject to NettingNet Amounts of Assets / (Liabilities)Gross Amounts of Assets / (Liabilities) Presented in Balance SheetContracts Subject to NettingNet Amounts of Assets / (Liabilities)
Derivative Financial Contracts
Derivative assets$148 $(49)$99 $98 $(53)$45 
Derivative liabilities(166)49 (117)(199)53 (146)
Total$(18)$— $(18)$(101)$— $(101)