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DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Mar. 31, 2022

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 Derivatives																		Liability Derivatives
												Fair Value (1)																		Fair Value (1)
(In millions)						Balance Sheet Location						March 31, 2022						June 30, 2021						Balance Sheet Location						March 31, 2022						June 30, 2021
Derivatives Designated as Hedging Instruments:
Foreign currency cash flow hedges						Prepaid expenses and other current assets						$	21					$	12					Other accrued liabilities						$	22					$	20
Net investment hedges						Prepaid expenses and other current assets						15						34						Other accrued liabilities						—						—
Interest rate-related derivatives						Prepaid expenses and other current assets						10						15						Other accrued liabilities						71						—
Total Derivatives Designated as Hedging Instruments												46						61												93						20
Derivatives Not Designated as Hedging Instruments:
Foreign currency forward contracts						Prepaid expenses and other current assets						23						6						Other accrued liabilities						25						36
Total derivatives												$	69					$	67											$	118					$	56

(1)See Note 6 – Fair Value Measurements for further information about how the fair value of derivative assets and liabilities are determined.

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 from AOCI into Earnings						Amount of Gain (Loss) Reclassified from AOCI into Earnings(1)
						Three Months Ended March 31																		Three Months Ended March 31
(In millions)						2022						2021												2022						2021
Derivatives in Cash Flow Hedging Relationships:
Foreign currency forward contracts						$	(2)					$	22					Net sales						$	3					$	(7)
Interest rate-related derivatives						10						11						Interest expense						—						(1)
						8						33												3						(8)
Derivatives in Net Investment Hedging Relationships(2):
Foreign currency forward contracts(3)						17						125												—						—
Total derivatives						$	25					$	158											$	3					$	(8)

(1)The amount reclassified into earnings as a result of the discontinuance of cash flow hedges because probable forecasted transactions will no longer occur by the end of the original time period was not material.

(2)During the three months ended March 31, 2022 and 2021, the gain recognized in earnings from net investment hedges related to the amount excluded from effectiveness testing was $3 million and $5 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 OCI on Derivatives												Location of Gain (Loss) Reclassified from AOCI into Earnings						Amount of Gain (Loss) Reclassified from AOCI into Earnings(1)
						Nine Months Ended March 31																		Nine Months Ended March 31
(In millions)						2022						2021												2022						2021
Derivatives in Cash Flow Hedging Relationships:
Foreign currency forward contracts						$	5					$	(43)					Net sales						$	(5)					$	(11)
Interest rate-related derivatives						10						14						Interest expense						(1)						(2)
						15						(29)												(6)						(13)
Derivatives in Net Investment Hedging Relationships(2):
Foreign currency forward contracts(3)						87						(17)												—						—
Total derivatives						$	102					$	(46)											$	(6)					$	(13)

(1)The amount reclassified into earnings as a result of the discontinuance of cash flow hedges because probable forecasted transactions will no longer occur by the end of the original time period was not material.

(2)During the nine months ended March 31, 2022 and 2021, the gain recognized in earnings from net investment hedges related to the amount excluded from effectiveness testing was $8 million and $15 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 (1)
						Location of Gain (Loss) Recognized in Earnings on Derivatives
												Three Months Ended March 31												Nine Months Ended March 31
(In millions)												2022						2021						2022						2021
Derivatives in Fair Value Hedging Relationships:
Interest rate swap contracts						Interest expense						$	(69)					$	(18)					$	(85)					$	(23)

(1)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 Included						Carrying Amount of the Hedged Liabilities						Cumulative Amount of Fair Value Hedging Gain (Loss) Included in the Carrying Amount of the Hedged Liability
						March 31, 2022						March 31, 2022
Current debt						$	251					$	1
Long-term debt						921						(71)
Total debt						$	1,172					$	(70)

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:

						Three Months Ended March 31
						2022												2021
(In millions)						Net Sales						Interest Expense						Net Sales						Interest 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						$	4,245					$	41					$	3,864					$	43
The effects of fair value and cash flow hedging relationships:
Gain (loss) on fair value hedge relationships – interest rate contracts:
Hedged item						Not applicable						69						Not applicable						18
Derivatives designated as hedging instruments						Not applicable						(69)						Not applicable						(18)
Gain (loss) on cash flow hedge relationships – interest rate contracts:
Amount of loss reclassified from AOCI into earnings						Not applicable						—						Not applicable						(1)
Gain (loss) on cash flow hedge relationships – foreign currency forward contracts:
Amount of gain reclassified from AOCI into earnings						3						Not applicable						(7)						Not applicable

						Nine Months Ended March 31
						2022												2021
(In millions)						Net Sales						Interest Expense						Net Sales						Interest 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						$	14,176					$	125					$	12,279					$	131
The effects of fair value and cash flow hedging relationships:
Gain (loss) on fair value hedge relationships – interest rate contracts:
Hedged item						Not applicable						85						Not applicable						23
Derivatives designated as hedging instruments						Not applicable						(85)						Not applicable						(23)
Gain (loss) on cash flow hedge relationships – interest rate contracts:
Amount of loss reclassified from AOCI into earnings						Not applicable						(1)						Not applicable						(2)
Gain (loss) on cash flow hedge relationships – foreign currency forward contracts:
Amount of gain reclassified from AOCI into earnings						(5)						Not applicable						(11)						Not applicable

Schedule of gains and losses related to derivative financial instruments not designated as hedging instruments

The amount of 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) Recognized in Earnings on Derivatives						Three Months Ended March 31												Nine Months Ended March 31
(In millions)												2022						2021						2022						2021
Derivatives Not Designated as Hedging Instruments:
Foreign currency forward contracts						Selling, general and administrative						$	17					$	(97)					$	(32)					$	(34)

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