XML 34 R23.htm IDEA: XBRL DOCUMENT v3.22.1

ACQUISITION OF BUSINESSES (Tables)

9 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Summary of total consideration transferred

A summary of the total consideration transferred, including immaterial measurement period adjustments as of March 31, 2022, is as follows:

(In millions)																		March 31, 2022
Cash paid																		$	1,095
Fair value of DECIEM stock options liability																		104
Fair value of net Put (Call) Option																		233
Total consideration for the acquired ownership interest (approximately 47.9%)																		1,432
Fair value of previously held equity method investment (approximately 30.5%)																		913
Fair value of redeemable noncontrolling interest (approximately 21.6%)																		647
Total consideration transferred (100%)																		$	2,992

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 the stock options were calculated using the following key assumptions into the Monte Carlo Method:

						March 31, 2022						June 30, 2021						May 18, 2021
Risk-free rate						1.80%						0.50%						0.50%
Term to mid of last twelve-month period						1.67 years						2.42 years						2.54 years
Operating leverage adjustment						0.45						0.45						0.45
Net sales discount rate						5.00%						3.40%						3.30%
EBITDA discount rate						8.90%						6.90%						6.80%
EBITDA volatility						34.00%						37.70%						38.30%
Net sales volatility						15.30%						17.00%						17.20%

Rollforward of final allocation of total consideration

The final allocation of the total consideration transferred, including immaterial measurement period adjustments as of March 31, 2022, has been recorded as follows:

(In millions)						March 31, 2022
Cash						$	35
Accounts receivable						64
Inventory						190
Other current assets						33
Property, plant and equipment						40
Operating lease right-of-use assets						40
Intangible assets						1,917
Goodwill						1,296
Deferred income taxes						8
Total assets acquired						3,623
Accounts payable						21
Operating lease liabilities						8
Other accrued liabilities						78
Deferred income taxes						479
Long-term operating lease liabilities						45
Total liabilities assumed						631
Total consideration transferred						$	2,992

X

- References

No definition available.

+ Details

Name:	us-gaap_BusinessCombinationAndAssetAcquisitionAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- 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

Name:	us-gaap_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- 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

Name:	us-gaap_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- 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

Name:	us-gaap_ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration