INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2016

Income Tax Disclosure [Abstract]

Provision for Income Taxes on Continuing Operations by Tax Jurisdiction

The provision for income taxes on continuing operations, by tax jurisdiction, consisted of the following for the fiscal years ended June 30:

	2016			2015			2014
Current
Federal	$	254		$	265		$	247
State		31			28			34
Foreign		45			38			45
Total current		330			331			326
Deferred
Federal		11			(13	)		(19	)
State		1			(1	)		2
Foreign		(7	)		(2	)		(4	)
Total deferred		5			(16	)		(21	)
Total	$	335		$	315		$	305

Earnings from Continuing Operations before Income Taxes, by Tax Jurisdiction

The components of earnings from continuing operations before income taxes, by tax jurisdiction, consisted of the following for the fiscal years ended June 30:

	2016		2015		2014
United States	$	900	$	829	$	754
Foreign		83		92		130
Total	$	983	$	921	$	884

Effective Income Tax Rate Reconciliation

A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate on continuing operations follows for the fiscal years ended June 30:

	2016		2015		2014
Statutory federal tax rate	35.0	%	35.0	%	35.0	%
State taxes (net of federal tax benefits)	2.1		2.1		2.6
Tax differential on foreign earnings	0.5		(0.3	)	(0.3	)
Domestic manufacturing deduction	(2.4	)	(2.1	)	(2.3	)
Change in valuation allowance	0.5		0.6		0.6
Other differences	(1.6	)	(1.1	)	(1.0	)
Effective tax rate	34.1	%	34.2	%	34.6	%

Components of Net Deferred Tax Assets (Liabilities)

The components of net deferred tax assets (liabilities) as of June 30 are shown below:

	2016			2015
Deferred tax assets (a)
Compensation and benefit programs	$	193		$	191
Basis difference related to Venture Agreement		30			30
Accruals and reserves		34			43
Inventory costs		21			19
Net operating loss and tax credit carryforwards		48			41
Other		54			61
Subtotal		380			385
Valuation allowance		(37	)		(34	)
Total deferred tax assets		343			351
Deferred tax liabilities (a)
Fixed and intangible assets		(325	)		(277	)
Low-income housing partnerships		(23	)		(22	)
Unremitted foreign earnings		(16	)		(7	)
Other		(25	)		(24	)
Total deferred tax liabilities		(389	)		(330	)
Net deferred tax assets (liabilities)	$	(46	)	$	21

^(a) The Company prospectively adopted ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes," requiring all deferred tax assets and liabilities to be classified as noncurrent. See Note 1 for further details.

Summary of Changes in Deferred Tax Asset Valuation Allowance

Details of the valuation allowance were as follows as of June 30:

	2016			2015
Valuation allowance at beginning of year	$	(34	)	$	(51	)
Net decrease/(increase) for other foreign deferred tax assets		3			15
Net decrease/(increase) for foreign net operating loss carryforwards and tax credits		(6	)		2
Valuation allowance at end of year	$	(37	)	$	(34	)

Reconciliation of Gross Unrecognized Tax Benefits

The following is a reconciliation of the beginning and ending amounts of the Company’s gross unrecognized tax benefits:

	2016			2015			2014
Unrecognized tax benefits at beginning of year	$	38		$	71		$	69
Gross increases - tax positions in prior periods		3			3			3
Gross decreases - tax positions in prior periods		(3	)		(8	)		(5	)
Gross increases - current period tax positions		8			6			7
Gross decreases - current period tax positions		-			-			-
Lapse of applicable statute of limitations		(4	)		(34	)		(1	)
Settlements		(5	)		-			(2	)
Unrecognized tax benefits at end of year	$	37		$	38		$	71