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STOCK PROGRAMS (Tables)

12 Months Ended

Jun. 30, 2023

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)						2023						2022						2021
Compensation expense(1)						$	267					$	331					$	327
Income tax benefit						$	52					$	51					$	50

(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, 2023 and activity during the fiscal year then ended:

(Shares in thousands)						Shares						Weighted- Average Exercise Price Per Share						Aggregate Intrinsic Value(1) (in millions)						Weighted-Average Contractual Life Remaining in Years
Outstanding at June 30, 2022						7,171.8						$	169.20
Granted at fair value						1,234.8						246.01
Exercised						(739.0)						119.56
Expired						(41.4)						283.87
Forfeited						(129.1)						268.04
Outstanding at June 30, 2023						7,497.1						184.41						$	318					6.0
Vested and expected to vest at June 30, 2023						7,440.5						183.78						$	318					6.0
Exercisable at June 30, 2023						5,398.4						151.96						$	318					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, 2023 and changes during the fiscal year then ended:

(Shares in thousands)						Shares						Weighted- Average Exercise Price Per Share						Aggregate Intrinsic Value(1) (in millions)						Weighted-Average Contractual Life Remaining in Years
Outstanding at June 30, 2022						94.1						$	60.11
Granted at fair value						—						—
Exercised						—
Expired						—
Forfeited						—
Outstanding at June 30, 2023						94.1						58.48						$	104					0.92
Vested at June 30, 2023						94.1						58.48						$	104					0.92
Exercisable at June 30, 2023						—						—						$	—					—

(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.

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)						2023						2022						2021
Per-share weighted-average grant date fair value of stock options granted						$	79.09					$	85.56					$	54.83
Intrinsic value of stock options exercised						$	93					$	276					$	407

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
						2023						2022						2021
Per-share weighted-average grant date fair value of stock options granted						$	—					$	—					$	1,557
Intrinsic value of stock options exercised						$	—					$	—					$	—

Schedule of fair value option-pricing assumptions

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 grants were estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions:

						Year Ended June 30
						2023						2022						2021
Weighted-average expected stock-price volatility						30.8%						27.3%						26.1%
Weighted-average expected option life						6 years						6 years						8 years
Average risk-free interest rate						3.4%						0.9%						0.5%
Average dividend yield						0.8%						0.7%						1.0%

The fair value of the stock options 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:

						June 30, 2023						June 30, 2022			June 30, 2021
Risk-free rate						4.90%						3.20%			0.50%
Term to mid of last twelve-month period						0.46 years						1.42 years			2.42 years
Operating leverage adjustment						0.45						0.45			0.45
Net sales discount rate						7.80%						6.00%			3.40%
EBITDA discount rate						11.30%						9.40%			6.90%
EBITDA volatility						32.00%						33.90%			37.70%
Net sales volatility						14.40%						15.30%			17.00%

Summary of restricted stock units (RSUs)

The following is a summary of the status of the Company’s RSUs as of June 30, 2023 and activity during the fiscal year then ended:

(Shares in thousands)						Shares						Weighted-Average Grant Date Fair Value Per Share
Nonvested at June 30, 2022						1,517.9						$	272.26
Granted						1,129.2						246.20
Dividend equivalents						17.5						266.01
Vested						(744.9)						250.41
Forfeited						(129.8)						269.67
Nonvested at June 30, 2023						1,789.9						265.04

Summary of performance share units (PSUs)

The following is a summary of the status of the Company’s PSUs as of June 30, 2023 and activity during the fiscal year then ended:

(Shares in thousands)						Shares						Weighted-Average Grant Date Fair Value Per Share
Nonvested at June 30, 2022						728.9						$	188.49
Granted						142.5						237.79
Vested and issued						(155.9)						199.17
Forfeited						(350.3)						128.30
Nonvested at June 30, 2023(1)						365.2						260.90

(1) Includes approximately 0.1 million PSUs with a performance period ended June 30, 2023 expected to be issued in August 2023.

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 Period

Performance Period for Stock Price Goal

Performance Period for Cumulative Operating Income Goal

Share Delivery Date

First tranche

27,457

$

323.03

March 11, 2021 - June 30, 2024

March 11, 2021 - June 30, 2024

July 1, 2021 - June 30, 2025

September 2, 2025

Second tranche

28,598

$

333.21

March 11, 2021 - June 30, 2024

March 11, 2021 - June 30, 2024

July 1, 2021 - June 30, 2025

September 2, 2025

Third tranche

29,872

$

343.61

March 11, 2021 - June 30, 2024

March 11, 2021 - June 30, 2024

July 1, 2021 - June 30, 2025

September 2, 2025

Total shares

85,927

Schedule of assumptions used for award

The significant assumptions used for this award were as follows:

Expected volatility						31.8		%
Dividend yield						0.8		%
Risk-free interest rate						0.4		%
Expected term						3.3 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, 2023 and activity during the fiscal year then ended:

(Shares in thousands)						Shares						Weighted-Average Grant Date Fair Value Per Share
Outstanding at June 30, 2022						121.9						$	78.01
Granted						5.4						233.46
Dividend equivalents						1.3						229.16
Converted						(15.9)						73.57
Outstanding at June 30, 2023						112.7						87.84

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