Financial Instruments (Tables)

12 Months Ended

Jun. 30, 2013

Derivative

Schedule of the fair value of assets and liabilities related to derivatives designated as hedging instruments

The following table summarizes the fair value of our assets and liabilities related to derivatives designated as hedging instruments and the respective line items in which they were recorded in the consolidated balance sheets at June 30:

(in millions)	2013		2012
Assets:
Foreign currency contracts (1)	$	4	$	2
Forward interest rate swaps (2)	20		—
Pay-floating interest rate swaps (2)	—		49
Total assets	$	24	$	51
Liabilities:
Foreign currency contracts (3)	$	1	$	1
Commodity contracts (3)	—		1
Pay-floating interest rate swaps (4)	11		—
Total liabilities	$	12	$	2

(1) Included in prepaid expenses and other in the consolidated balance sheets.

(2) Included in other assets in the consolidated balance sheets.

(3) Included in other accrued liabilities in the consolidated balance sheets.

(4) Included in deferred income taxes and other liabilities in the consolidated balance sheets.

Schedule of gain/(loss) recognized in earnigns for interest rate contracts designated as fair value hedges

The following table summarizes the gain/(loss) recognized in earnings for interest rate swaps designated as fair value hedges:

(in millions)	2013			2012			2011
Pay-floating interest rate swaps (1)	$	28		$	38		$	36
Fixed-rate debt (1)	(28		)	(38		)	(36		)

(1) Included in interest expense, net in the consolidated statements of earnings.

Schedule of gain/(loss) included in AOCI for derivative instruments designated as cash flow hedges

The following table summarizes the gain/(loss) included in AOCI for derivative instruments designated as cash flow hedges at June 30:

(in millions)	2013		2012
Forward interest rate swaps	$	20	$	—
Foreign currency contracts	3		—
Commodity contracts	—		(1		)

Schedule of gain/(loss) reclassified from AOCI into earnings for derivative instruments designated as cash flow hedges

The following table summarizes the gain/(loss) reclassified from AOCI into earnings for derivative instruments designated as cash flow hedges:

(in millions)	2013		2012			2011
Foreign currency contracts (1)	$	1	$	1		$	—
Foreign currency contracts (2)	1		(1		)	(3		)
Foreign currency contracts (3)	1		(1		)	3
Commodity contracts (3)	1		2			2
Forward interest rate swaps (4)	1		—			—

(1) Included in revenue in the consolidated statements of earnings.

(2) Included in cost of products sold in the consolidated statements of earnings.

(3) Included in SG&A expenses in the consolidated statements of earnings.

(4) Included in interest expense, net in the consolidated statements of earnings.

Schedule of gain/(loss) recognized in earnings for economic (non-designated) derivative instruments

The following table summarizes the gain/(loss) recognized in earnings for economic (non-designated) derivative instruments:

(in millions)	2013		2012			2011
Foreign currency contracts (1)	$	6	$	(39	)	$	36
Commodity contracts (1)	—		(1		)	(1		)

(1) Included in other income, net in the consolidated statements of earnings.

Summary of estimated fair value of our long-term obligations and other short-term borrowings

The following table summarizes the estimated fair value of our long-term obligations and other short-term borrowings compared to the respective carrying amounts at June 30:

(in millions)	2013		2012
Estimated fair value	$	3,899	$	3,075
Carrying amount	3,854		2,894

Schedule of the notional amount and fair value gain/(loss) of derivative instruments

The following table is a summary of the fair value gain/(loss) of our derivative instruments, based upon the estimated amount that we would receive (or pay) to terminate the contracts at June 30:

	2013					2012
(in millions)	Notional Amount		Fair Value Gain/(Loss)			Notional Amount		Fair Value Gain/(Loss)
Pay-floating interest rate swaps	$	1,138	$	(11	)	$	773	$	49
Foreign currency contracts	643		3			658		1
Forward interest rate swaps	250		20			—		—
Commodity contracts	24		—			23		(1		)

Fair Value Hedging

Derivative

Schedule of outstanding instruments

The following tables summarize the outstanding interest rate swaps designated as fair value hedges at June 30:

	2013
(in millions)	Notional Amount		Maturity Date
Pay-floating interest rate swaps	$	1,138	Jun 2015	-	Jun 2022

	2012
(in millions)	Notional Amount		Maturity Date
Pay-floating interest rate swaps	$	773	Jun 2013	-	Jun 2022

Cash Flow Hedging

Derivative

Schedule of outstanding instruments

The following tables summarize the outstanding cash flow hedges at June 30:

	2013
(in millions)	Notional Amount		Maturity Date
Forward interest rate swaps	$	250	Jun 2025
Foreign currency contracts	164		Jul 2013	-	Jun 2014
Commodity contracts	24		Jul 2013	-	Mar 2016

	2012
(in millions)	Notional Amount		Maturity Date
Foreign currency contracts	$	158	Jul 2012	-	Jun 2013
Commodity contracts	23		Jul 2012	-	Mar 2015

Not Designated as Hedging Instrument

Derivative

Schedule of outstanding instruments

The following tables summarize the outstanding economic (non-designated) derivative instruments at June 30:

	2013
(in millions)	Notional Amount		Maturity Date
Foreign currency contracts	$	479	Jul 2013	-	Sep 2013

	2012
(in millions)	Notional Amount		Maturity Date
Foreign currency contracts	$	500	Jul 2012	-	Sep 2012