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INCOME TAXES (Tables) | 12 Months Ended
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Jun. 30, 2025
Income Tax Disclosure [Abstract] |
Provision for income taxes | The provision for income taxes is comprised of the following:
|  | Year Ended June 30,
(In millions) |  | 2025 |  | 2024 |  | 2023
Current: |  |  |  |  |  |
Federal |  | $ | 149 |  |  | $ | 185 |  |  | $ | 141 |
Foreign |  | 323 |  |  | 426 |  |  | 424 |
State and local |  | 17 |  |  | 17 |  |  | 8 |
Total current provision for income taxes |  | 489 |  |  | 628 |  |  | 573 |
Deferred: |  |  |  |  |  |
Federal |  | (235) |  |  | (147) |  |  | (105) |
Foreign |  | (146) |  |  | (111) |  |  | (77) |
State and local |  | (15) |  |  | (7) |  |  | (4) |
Total deferred benefit for income taxes |  | (396) |  |  | (265) |  |  | (186) |
Total provision for income taxes |  | $ | 93 |  |  | $ | 363 |  |  | $ | 387 |
Reconciliation of the U.S. federal statutory income tax rate and actual effective tax rate on earnings before income taxes | A reconciliation of the U.S. federal statutory income tax rate to the Company’s actual effective tax rate on (loss) earnings before income taxes is as follows:
|  | Year Ended June 30,
|  | 2025 |  | 2024 |  | 2023
Provision for income taxes at statutory rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increase (decrease) due to(1): |  |  |  |  |  |
State and local income taxes, net of federal tax benefit |  | (0.2) |  |  | 1.1 |  |  | 0.3 |
Stock-based compensation arrangements – excess tax expense (benefits), net |  | (3.4) |  |  | 3.0 |  |  | (0.8) |
Taxation of foreign operations |  | (10.4) |  |  | 15.9 |  |  | 8.6 |
Income tax reserve adjustments |  | 0.3 |  |  | (0.4) |  |  | (0.1) |
Nondeductible goodwill impairment charges |  | (0.1) |  |  | 7.9 |  |  | — |
U.S. research and development tax credit |  | 1.2 |  |  | (2.2) |  |  | (0.9) |
Changes in valuation allowance |  | (16.5) |  |  | — |  |  | — |
Other, net |  | (0.8) |  |  | 0.7 |  |  | (0.4) |
Effective tax rate(2) |  | (8.9) | % |  | 47.0 | % |  | 27.7 | %
(1)In fiscal 2025, as a result of the loss before income taxes, all reconciling items that are income tax expenses are presented as decreases to the rate, and all reconciling items that are income tax benefits are presented as increases to the rate. (2)For fiscal 2025 and fiscal 2024, the reconciling items between the Company's U.S. federal statutory income tax rate and the Company's actual effective tax rate were materially impacted by the decrease in earnings before income taxes from fiscal 2024 to fiscal 2025 and from fiscal 2023 to fiscal 2024, respectively.
Significant components of deferred income tax assets and liabilities | Significant components of the Company’s deferred tax assets and liabilities were as follows:
|  | June 30,
(In millions) |  | 2025 |  | 2024
Deferred tax assets: |  |  |  |
Compensation-related expenses |  | $ | 201 |  |  | $ | 198 |
Inventory obsolescence and other inventory related reserves |  | 101 |  |  | 103 |
Retirement benefit obligations |  | 45 |  |  | 45 |
Various accruals not currently deductible |  | 340 |  |  | 228 |
Net operating loss, credit and other carryforwards |  | 615 |  |  | 405 |
Unrecognized state tax benefits and accrued interest |  | 11 |  |  | 13 |
Lease liabilities |  | 511 |  |  | 462 |
Research-related expenses |  | 276 |  |  | 248 |
Other differences between tax and financial statement values |  | 120 |  |  | 103 |
|  | 2,220 |  |  | 1,805 |
Valuation allowance for deferred tax assets |  | (454) |  |  | (238) |
Total deferred tax assets |  | 1,766 |  |  | 1,567 |
Deferred tax liabilities: |  |  |  |
Fixed assets and intangibles |  | (353) |  |  | (614) |
ROU assets |  | (464) |  |  | (422) |
Other differences between tax and financial statement values |  | (36) |  |  | (32) |
Total deferred tax liabilities |  | (853) |  |  | (1,068) |
Total net deferred tax assets |  | $ | 913 |  |  | $ | 499 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
|  | June 30,
(In millions) |  | 2025 |  | 2024 |  | 2023
Balance of gross unrecognized tax benefits, beginning of year |  | $ | 65 |  |  | $ | 63 |  |  | $ | 61 |
Gross amounts of increases as a result of tax positions taken during a prior period |  | 83 |  |  | 4 |  |  | 9 |
Gross amounts of decreases as a result of tax positions taken during a prior period |  | (9) |  |  | (4) |  |  | (5) |
Gross amounts of increases as a result of tax positions taken during the current period |  | 7 |  |  | 5 |  |  | 4 |
Amounts of decreases in unrecognized tax benefits relating to settlements with taxing authorities |  | (2) |  |  | (1) |  |  | (4) |
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statutes of limitations |  | (4) |  |  | (2) |  |  | (2) |
Balance of gross unrecognized tax benefits, end of year |  | $ | 140 |  |  | $ | 65 |  |  | $ | 63 |
Tax years that remain subject to examination vary by the major tax jurisdictions | The tax years subject to examination vary depending on the tax jurisdiction. As of June 30, 2025, the following tax years remain subject to examination by the major tax jurisdictions indicated:
Major Jurisdiction |  | Open Fiscal Years
Belgium |  | 2019 – 2025
Canada |  | 2020 – 2025
China |  | 2022 – 2025
France |  | 2019 – 2025
Germany |  | 2017 – 2025
Hong Kong |  | 2019 – 2025
India |  | 2013 – 2018, 2020 – 2025
Italy |  | 2020 – 2025
Japan |  | 2020 – 2025
Korea |  | 2021 – 2025
Spain |  | 2018 – 2025
Switzerland |  | 2024 – 2025
United Kingdom |  | 2024 – 2025
United States |  | 2024 – 2025
State of California |  | 2020 – 2025
State and City of New York |  | 2019 – 2025

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-2 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12A -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12A Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 + Details
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- Definition Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-15 + Details
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