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INCOME TAXES (Tables)

12 Months Ended

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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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.

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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.

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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.

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Tabular disclosure of the change in unrecognized tax benefits.

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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.

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