v3.26.1
INCOME TAXES (Tables)
 12 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
Earnings before income taxes consisted of the following:
Fiscal years ended June 30202620252024
United States$13,728 $13,911 $12,246 
International6,649 6,256 6,515 
TOTAL$20,377 $20,167 $18,761 
Schedule of Components of Income Tax Expense (Benefit) Income taxes consisted of the following:
Fiscal years ended June 30202620252024
CURRENT TAX EXPENSE
U.S. federal$2,105 $2,215 $1,954 
International1,700 1,330 1,708 
U.S. state and local378 407 368 
TOTAL4,182 3,953 4,031 
DEFERRED TAX EXPENSE/(BENEFIT)
U.S. federal(27)9 (133)
International98 146 (85)
U.S. state and local(21)(5)(26)
TOTAL51 149 (244)
TOTAL TAX EXPENSE$4,233 $4,102 $3,787 
Schedule of Cash Flow, Supplemental Disclosures
Cash payments for income taxes, net of refunds, consisted of the following:
Fiscal years ended June 30202620252024
U.S. federal$3,057 $2,993 $2,554 
International1,257 1,187 1,408 
U.S. state and local365 373 402 
TOTAL$4,678 $4,554 $4,363 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the U.S. federal statutory income tax rate to our actual effective income tax rate is provided below:
Fiscal years ended June 30202620252024
U.S. federal statutory income tax rate$4,279 21.0 %$4,235 21.0 %$3,940 21.0 %
Effect of cross-border tax laws, net of foreign tax credits
Foreign-derived intangible income(235)(1.2)%(163)(0.8)%(201)(1.1)%
Other41 0.2 %(2)— %64 0.3 %
Tax credits
Foreign tax credits from foreign withholding taxes(222)(1.1)%(180)(0.9)%(240)(1.3)%
Other(42)(0.2)%(36)(0.2)%(42)(0.2)%
Non-taxable or non-deductible items
Excess tax benefits from the exercise of stock options(82)(0.4)%(189)(0.9)%(186)(1.0)%
Domestic state and local income taxes, net of federal effect (1)
277 1.4 %334 1.7 %333 1.8 %
Foreign tax effects344 1.7 %137 0.7 %91 0.5 %
Worldwide changes in unrecognized tax benefits (2)
(50)(0.2)%87 0.4 %189 1.0 %
Other(76)(0.4)%(121)(0.6)%(160)(0.9)%
TOTAL$4,233 20.8 %$4,102 20.3 %$3,787 20.2 %
(1)State taxes in California, Illinois, New York, and New Jersey made up the majority of the tax effect in this category.
(2)The company has elected to present this category on a global aggregated basis and includes the effect of current year increases into unrecognized tax benefits.
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending liability for uncertain tax positions is as follows:
Fiscal years ended June 30202620252024
BEGINNING OF YEAR$634 $582 $515 
Increases in tax positions for prior years59 240 157 
Decreases in tax positions for prior years(96)(181)(133)
Increases in tax positions for current year40 57 160 
Settlements with taxing authorities(73)(65)(100)
Lapse in statute of limitations(13)(6)(9)
Currency translation(4)7 (8)
END OF YEAR$547 $634 $582 
Schedule of Deferred Tax Assets and Liabilities
Deferred income tax assets and liabilities were comprised of the following:
As of June 3020262025
DEFERRED TAX ASSETS
Capitalized research & development$1,439 $1,251 
Loss and other carryforwards769 857 
Accrued marketing and promotion548 497 
Stock-based compensation466 445 
Pension and other retiree benefits388 601 
Fixed assets266 230 
Advance payments206 — 
Lease liabilities198 212 
Unrealized loss on financial and foreign exchange transactions144 358 
Other832 758 
Valuation allowances(330)(293)
TOTAL$4,927 $4,915 
DEFERRED TAX LIABILITIES
Goodwill and other intangible assets$5,443 $5,475 
Fixed assets1,606 1,547 
Other retiree benefits888 1,102 
Lease right-of-use assets194 209 
Unrealized gain on financial and foreign exchange transactions187 96 
Foreign withholding tax on earnings to be repatriated158 131 
Other630 492 
TOTAL$9,106 $9,052