v3.24.2.u1
STOCK PROGRAMS (Tables)
 12 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of stock-based compensation expense
Total net stock-based compensation expense is attributable to the granting of and the remaining requisite service periods of stock options, RSUs, PSUs, long-term PSUs and share units. Compensation expense attributable to net stock-based compensation is as follows:
Year Ended June 30
(In millions)202420232022
Compensation expense(1)
$325 $267 $331 
Income tax benefit$58 $52 $51 
(1)Excludes compensation expense relating to liability-classified awards, including DECIEM stock options discussed below.
Summary of stock option programs
The following is a summary of the status of the Company’s stock options as of June 30, 2024 and activity during the fiscal year then ended:
(Shares in thousands)SharesWeighted-
Average
Exercise
Price Per Share
Aggregate
Intrinsic
Value(1)
(in millions)
Weighted-Average
Contractual Life
Remaining in Years
Outstanding at June 30, 2023
7,497.1 $184.41 
Granted at fair value1,780.6 155.92 
Exercised(480.7)81.57 
Expired(161.3)240.00 
Forfeited(140.0)199.73 
Outstanding at June 30, 2024
8,495.7 182.95 $32 6.0
Vested and expected to vest at June 30, 2024
8,415.7 182.95 $32 6.0
Exercisable at June 30, 2024
5,842.7 175.76 $32 5.0
(1)The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option.
The following is a summary of the DECIEM stock option program as of June 30, 2024 and changes during the fiscal year then ended:
(Shares in thousands)SharesWeighted-
Average
Exercise
Price Per Share
Outstanding at June 30, 2023
94.1 $58.48 
Granted at fair value— — 
Exercised94.1 56.65 
Expired— — 
Forfeited— — 
Outstanding at June 30, 2024
— — 
Summary of weighted-average grant date fair value and intrinsic value of stock options exercised
The following is a summary of the per-share weighted-average grant date fair value of stock options granted and total intrinsic value of stock options exercised:
Year Ended June 30
(In millions, except per share data)202420232022
Per-share weighted-average grant date fair value of stock options granted$52.83 $79.09 $85.56 
Intrinsic value of stock options exercised$31 $93 $276 
Schedule of fair value option-pricing assumptions
The fair value of each of the Company's option grants were estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions:
 Year Ended June 30
 202420232022
Weighted-average expected stock-price volatility33.8%30.8%27.3%
Weighted-average expected option life6 years6 years6 years
Average risk-free interest rate4.3%3.4%0.9%
Average dividend yield1.5%0.8%0.7%
The following key assumptions were also used in the Monte Carlo Method:
 June 30, 2023June 30, 2022
Risk-free rate4.90%3.20%
Term to mid of last twelve-month period0.46 years1.42 years
Operating leverage adjustment0.450.45
Net sales discount rate7.80%6.00%
EBITDA discount rate11.30%9.40%
EBITDA volatility32.00%33.90%
Net sales volatility14.40%15.30%
Summary of restricted stock units (RSUs)
The following is a summary of the status of the Company’s RSUs as of June 30, 2024 and activity during the fiscal year then ended:
(Shares in thousands)SharesWeighted-Average
Grant Date
Fair Value Per Share
Nonvested at June 30, 2023
1,789.9 $265.04 
Granted1,606.1 155.82 
Dividend equivalents45.0 200.19 
Vested(1)
(849.7)262.76 
Forfeited(148.8)201.52 
Nonvested at June 30, 2024
2,442.5 196.69 
1) The total fair value of RSUs vested during fiscal 2024, 2023 and 2022 was $91.6 million, $155.5 million, and $307.4 million, respectively.
Summary of performance share units (PSUs)
The following is a summary of the status of the Company’s PSUs as of June 30, 2024 and activity during the fiscal year then ended:
(Shares in thousands)SharesWeighted-Average
Grant Date
Fair Value Per Share
Nonvested at June 30, 2023
365.2 $260.90 
Granted164.5 156.39 
Vested and issued(1)
(44.8)218.12 
Forfeited(111.0)217.85 
Nonvested at June 30, 2024
373.9 232.83 

(1) The total fair value of PSUs vested and issued during fiscal 2024, 2023 and 2022 was $7.3 million, $66.6 million, and $108.9 million, respectively.
Schedule of long-term price vested units
The number of shares subject to each tranche of the price-vested unit award, as well as the stock price goals, service periods, performance periods and share delivery dates for each tranche are as follows:
Number
of
Shares
per
Tranche		Stock Price Goal
(per Share)		Service PeriodPerformance Period for Stock Price GoalPerformance Period for Cumulative Operating Income GoalShare Delivery Date
First tranche27,457 $323.03 March 11, 2021 - June 30, 2024March 11, 2021 - June 30, 2024July 1, 2021 - June 30, 2025September 2, 2025
Second tranche28,598 $333.21 March 11, 2021 - June 30, 2024March 11, 2021 - June 30, 2024July 1, 2021 - June 30, 2025September 2, 2025
Third tranche29,872 $343.61 March 11, 2021 - June 30, 2024March 11, 2021 - June 30, 2024July 1, 2021 - June 30, 2025September 2, 2025
Total shares85,927 
Schedule of assumptions used for award The significant assumptions used for this award were as follows:
Expected volatility31.8 %
Dividend yield0.8 %
Risk-free interest rate0.4 %
Expected term3.3 years
Summary of status of share units
The following is a summary of the status of the Company’s share units as of June 30, 2024 and activity during the fiscal year then ended:
(Shares in thousands)SharesWeighted-Average
Grant Date
Fair Value Per Share
Outstanding at June 30, 2023112.7 $87.84 
Granted8.7 123.81 
Dividend equivalents2.2 139.11 
Converted (1)
(10.0)105.78 
Outstanding at June 30, 2024113.6 90.02 
(1) The total intrinsic value of share units converted during fiscal 2024, 2023 and 2022 was $1.5 million, $4.1 million, and $8.5 million, respectively.