Income Taxes (Tables)

12 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Schedule of Income Before Income Tax, Domestic and Foreign

The following table summarizes earnings/(loss) before income taxes:

(in millions)	2023		2022		2021
U.S. operations	$	291	$	(1,000)	$	(47)
Non-U.S. operations	347		231		370
Earnings/(loss) before income taxes	$	638	$	(769)	$	323

Schedule of Components of Income Tax Expense (Benefit), Current and Deferred

The following table summarizes the components of provision for/(benefit from) income taxes:

(in millions)	2023		2022		2021
Current:
Federal	$	254	$	34	$	(989)
State and local	69		29		92
Non-U.S.	84		93		112
Total current	$	407	$	156	$	(785)
Deferred:
Federal	$	(8)	$	30	$	539
State and local	13		(22)		(28)
Non-U.S.	(36)		(1)		(15)
Total deferred	$	(31)	$	7	$	496
Provision for/(benefit from) income taxes	$	376	$	163	$	(289)

Schedule of Effective Income Tax Rate Reconciliation

The following table presents a reconciliation of the provision based on the federal statutory income tax rate to our effective income tax rate:

	2023		2022		2021
Provision at Federal statutory rate	21.0	%	21.0	%	21.0	%
State and local income taxes, net of federal benefit	6.6		2.2		3.2
Tax effect of foreign operations	(4.2)		3.5		0.7
Nondeductible/nontaxable items	(1.1)		1.2		1.6
Impact of Divestitures	—		(4.9)		7.0
Withholding Taxes	1.0		(1.1)		9.0
Change in Valuation Allowances	(5.3)		3.5		(1.4)
US Taxes on International Income (2)	(0.7)		3.2		(6.7)
Impact of Resolutions with IRS and other related matters	5.8		(0.6)		(13.6)
Opioid litigation	0.1		(0.5)		17.7
Goodwill Impairment	36.9		(49.5)		—
Loss Carryback Claims	—		—		(129.9)
Other	(1.2)		0.8		1.7
Effective income tax rate	58.9	%	(21.2)	%	(89.7)	%

(1)    This table reflects fiscal 2023 pretax income with tax expense, fiscal 2022 pretax loss with tax expense and fiscal 2021 pretax income with tax benefit.

(2)    Includes the tax impact of Global Intangible Low-Taxed Income ("GILTI") tax, the Foreign-Derived Intangible Income deduction and other foreign income that is taxable under the U.S. tax code.

Schedule of Deferred Tax Assets and Liabilities

The following table presents the components of the deferred income tax assets and liabilities at June 30:

(in millions)	2023		2022
Deferred income tax assets:
Receivable basis difference	$	44	$	41
Accrued liabilities	704		675
Share-based compensation	29		34
Loss and tax credit carryforwards	671		778
Deferred tax assets related to uncertain tax positions	39		33
Other	53		23
Total deferred income tax assets	1,540		1,584
Valuation allowance for deferred income tax assets	(421)		(468)
Net deferred income tax assets	$	1,119	$	1,116
Deferred income tax liabilities:
Inventory basis differences	$	(1,229)	$	(1,164)
Property-related	(336)		(288)
Goodwill and other intangibles	(624)		(683)
Self-Insurance	(975)		(975)
Total deferred income tax liabilities	$	(3,164)	$	(3,110)
Net deferred income tax liability	$	(2,045)	$	(1,994)

Schedule of Deferred Tax Assets and Liabilities after Netting by Tax Jurisdiction

Deferred income tax assets and liabilities in the preceding table, after netting by taxing jurisdiction and for uncertain tax positions, are in the following captions in the consolidated balance sheets at June 30:

(in millions)	2023		2022
Noncurrent deferred income tax asset (1)	$	53	$	36
Noncurrent deferred income tax liability (2)	(2,096)		(2,030)
Noncurrent deferred income tax liability transferred to held for sale	(2)		—
Net deferred income tax liability	$	(2,045)	$	(1,994)

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

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

Schedule of Unrecognized Tax Benefits Roll Forward

The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits:

(in millions)	2023		2022		2021
Balance at beginning of fiscal year	$	943	$	932	$	998
Additions for tax positions of the current year	25		7		121
Additions for tax positions of prior years	133		39		223
Reductions for tax positions of prior years	(16)		(19)		(138)
Settlements with tax authorities	(73)		(12)		(271)
Expiration of the statute of limitations	(2)		(4)		(1)
Balance at end of fiscal year	$	1,010	$	943	$	932