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ACQUISITION OF BUSINESSES (Tables) | 12 Months Ended
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Jun. 30, 2021
Business Combination and Asset Acquisition [Abstract] |
Summary of total consideration transferred | A summary of the total consideration transferred is as follows:
(In millions) |  | May 18, 2021
Cash paid |  | $ | 1,092 |
Fair value of DECIEM stock options liability |  | 103 |
Fair value of net Put (Call) Option |  | 234 |
Total consideration for the acquired ownership interest (approximately 47.9%) |  | 1,429 |
Fair value of previously held equity method investment (approximately 30.5%) |  | 912 |
Fair value of redeemable noncontrolling interest (approximately 21.6%) |  | 647 |
Total consideration transferred (100%) |  | $ | 2,988 |
Schedule of key assumptions used for acquisition date fair value | The acquisition-date fair values of the DECIEM stock options and the net Put (Call) Option were calculated by incorporating significant assumptions including the starting equity value, revenue growth rates and EBITDA and the following key assumptions into the Monte Carlo Method:
|  | May 18, 2021
Risk-free rate |  | 0.50%
Term to mid of last twelve-month period |  | 2.54 years
Operating leverage adjustment |  | 0.45
Net sales discount rate |  | 3.30%
EBITDA discount rate |  | 6.80%
EBITDA volatility |  | 38.30%
Net sales volatility |  | 17.20%
The fair value of each of the Company's option grant was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions:
|  | Year Ended June 30
|  | 2021 |  | 2020 |  | 2019
Weighted-average expected stock-price volatility |  | 26.1% |  | 25.1% |  | 24.5%
Weighted-average expected option life |  | 8 years |  | 7 years |  | 7 years
Average risk-free interest rate |  | 0.5% |  | 1.5% |  | 2.8%
Average dividend yield |  | 1.0% |  | 1.0% |  | 1.1%
The fair value of the stock options were calculated using the following key assumptions into the Monte Carlo Method:
|  | May 18, 2021 |  | June 30, 2021
Risk-free rate |  | 0.50% |  | 0.50%
Term to mid of last twelve-month period |  | 2.54 years |  | 2.42 years
Operating leverage adjustment |  | 0.45 |  | 0.45
Net sales discount rate |  | 3.30% |  | 3.40%
EBITDA discount rate |  | 6.80% |  | 6.90%
EBITDA volatility |  | 38.30% |  | 37.70%
Net sales volatility |  | 17.20% |  | 17.00%
Rollforward of final allocation of total consideration | The preliminary allocation of the total consideration transferred has been recorded as follows:
(In millions) |  | May 18, 2021
Cash |  | $ | 35 |
Accounts receivable |  | 64 |
Inventory |  | 203 |
Other current assets |  | 30 |
Property, plant and equipment |  | 40 |
Operating lease right-of-use assets |  | 40 |
Intangible assets |  | 1,917 |
Goodwill |  | 1,283 |
Total assets acquired |  | 3,612 |
Accounts payable |  | 21 |
Operating lease liabilities |  | 8 |
Other accrued liabilities |  | 67 |
Deferred income taxes |  | 483 |
Long-term operating lease liabilities |  | 45 |
Total liabilities assumed |  | 624 |
Total consideration transferred |  | $ | 2,988 |

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- Definition Tabular disclosure of a material business combination completed during the period, including background, timing, and recognized assets and liabilities. This table does not include leveraged buyouts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1486-128463 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 + Details
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- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=123413009&loc=d3e4845-128472 + Details
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- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 + Details
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