DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Dec. 31, 2021

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	December 31 2021		June 30 2021		Balance Sheet Location	December 31 2021		June 30 2021
Derivatives Designated as Hedging Instruments:
Foreign currency cash flow hedges	Prepaid expenses and other current assets	$	19	$	12	Other accrued liabilities	$	17	$	20
Net investment hedges	Prepaid expenses and other current assets	49		34		Other accrued liabilities	—		—
Interest rate-related derivatives	Prepaid expenses and other current assets	6		15		Other accrued liabilities	7		—
Total Derivatives Designated as Hedging Instruments		74		61			24		20
Derivatives Not Designated as Hedging Instruments:
Foreign currency forward contracts	Prepaid expenses and other current assets	16		6		Other accrued liabilities	46		36
Total derivatives		$	90	$	67		$	70	$	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 December 31					Three Months Ended December 31
(In millions)	2021		2020			2021		2020
Derivatives in Cash Flow Hedging Relationships:
Foreign currency forward contracts	$	(8)	$	(34)	Net sales	$	(2)	$	(5)
Interest rate-related derivatives	—		3		Interest expense	(1)		—
	(8)		(31)			(3)		(5)
Derivatives in Net Investment Hedging Relationships(2):
Foreign currency forward contracts(3)	34		(79)			—		—
Total derivatives	$	26	$	(110)		$	(3)	$	(5)

(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 December 31, 2021 and 2020, 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)
	Six Months Ended December 31					Six Months Ended December 31
(In millions)	2021		2020			2021		2020
Derivatives in Cash Flow Hedging Relationships:
Foreign currency forward contracts	$	7	$	(65)	Net sales	$	(8)	$	(4)
Interest rate-related derivatives	—		3		Interest expense	(1)		(1)
	7		(62)			(9)		(5)
Derivatives in Net Investment Hedging Relationships(2):
Foreign currency forward contracts(3)	70		(142)			—		—
Total derivatives	$	77	$	(204)		$	(9)	$	(5)

(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 six months ended December 31, 2021 and 2020, the gain recognized in earnings from net investment hedges related to the amount excluded from effectiveness testing was $5 million and $10 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 December 31				Six Months Ended December 31
(In millions)		2021		2020		2021		2020
Derivatives in Fair Value Hedging Relationships:
Interest rate swap contracts	Interest expense	$	(6)	$	(3)	$	(16)	$	(5)

(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
	December 31, 2021		December 31, 2021
Current debt	$	253	$	3
Long-term debt	988		(4)
Total debt	$	1,241	$	(1)

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 December 31
	2021				2020
(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	$	5,539	$	42	$	4,853	$	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		6		Not applicable		3
Derivatives designated as hedging instruments	Not applicable		(6)		Not applicable		(3)
Gain (loss) on cash flow hedge relationships – interest rate contracts:
Amount of loss reclassified from AOCI into earnings	Not applicable		(1)		Not applicable		—
Gain (loss) on cash flow hedge relationships – foreign currency forward contracts:
Amount of gain reclassified from AOCI into earnings	(2)		Not applicable		(5)		Not applicable

	Six Months Ended December 31
	2021				2020
(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	$	9,931	$	84	$	8,415	$	88
The effects of fair value and cash flow hedging relationships:
Gain (loss) on fair value hedge relationships – interest rate contracts:
Hedged item	Not applicable		16		Not applicable		5
Derivatives designated as hedging instruments	Not applicable		(16)		Not applicable		(5)
Gain (loss) on cash flow hedge relationships – interest rate contracts:
Amount of loss reclassified from AOCI into earnings	Not applicable		(1)		Not applicable		(1)
Gain (loss) on cash flow hedge relationships – foreign currency forward contracts:
Amount of gain reclassified from AOCI into earnings	(8)		Not applicable		(4)		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 December 31				Six Months Ended December 31
(In millions)		2021		2020		2021		2020
Derivatives Not Designated as Hedging Instruments:
Foreign currency forward contracts	Selling, general and administrative	$	(38)	$	42	$	(49)	$	63