v3.26.1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Jun. 30, 2026
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 DerivativesLiability Derivatives
Fair Value (1)
Fair Value (1)
June 30,
June 30,
(In millions)Balance Sheet
Location		20262025Balance Sheet
Location		20262025
Derivatives Designated as Hedging Instruments:
Foreign currency forward contractsPrepaid expenses and other current assets$29 $7 Other accrued liabilities$24 $82 
Cross-currency swap contracts(2)
Prepaid expenses and other current assets; Other assets34 50 Other accrued liabilities1 15 
Interest rate contracts
— — Other accrued liabilities118 104 
Total Derivatives Designated as Hedging Instruments63 57 143 201 
Derivatives Not Designated as Hedging Instruments:
Foreign currency forward contractsPrepaid expenses and other current assets11 25 Other accrued liabilities23 15 
Total derivatives$74 $82 $166 $216 
(1)See Note 13 – Fair Value Measurements for further information about how the fair value of derivative assets and liabilities are determined.
(2)Included in the asset derivatives for the cross-currency swap contracts at June 30, 2026 and June 30, 2025 is approximately $17 million and $40 million, respectively, classified within Other assets in the accompanying consolidated balance sheets.
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
Amount of Gain (Loss)
Reclassified from AOCI into
Earnings (Loss)(1)
June 30,
from AOCI into
June 30,
(In millions)20262025Earnings (Loss)2026
2025
Derivatives in Cash Flow Hedging Relationships:
Foreign currency forward contracts$11 $(52)Net sales$(29)$35 
Interest rate contracts
— — Interest expense2 2 
Total cash flow hedges
11 (52)(27)37 
Derivatives in Net Investment Hedging Relationships(2):
Foreign currency forward contracts(3)
13 (63)— — 
Cross-currency swap contracts(4)
42 (15)— — 
Total net investment hedges55 (78)— — 
Total derivatives$66 $(130)$(27)$37 
(1)The amount reclassified into the accompanying consolidated statements of earnings (loss) as a result of the discontinuance of cash flow hedges because it is probable that forecasted transactions will not occur by the end of the original time period was not material.
(2)Included within translation adjustments as a component of AOCI on the Company’s consolidated balance sheets.
(3)During fiscal 2026 and 2025 the gain recognized in the accompanying consolidated statements of earnings (loss) from foreign currency forward contracts related to the amount excluded from effectiveness testing was $12 million and $21 million, respectively.
(4)During fiscal 2026 and 2025 the gain recognized in the accompanying consolidated statements of earnings (loss) from cross-currency swap contracts related to the amount excluded from effectiveness testing was $12 million and $7 million, respectively.

Amount of Gain (Loss)
 Recognized in Earnings (Loss)
on Derivatives
Location of Gain (Loss)
June 30,
(In millions) Recognized in Earnings (Loss) on Derivatives20262025
Derivatives in Fair Value Hedging
Relationships:
Cross-currency swap contracts(1)
Selling, general and administrative$46 $(45)
Interest rate contracts(2)
Interest expense$(14)$42 
(1)Changes in the fair value representing hedge components included in the assessment of effectiveness of the cross-currency swap contracts are exactly offset by the change in the fair value of the underlying intercompany foreign currency denominated debt. The gain recognized in the accompanying consolidated statements of earnings (loss) from cross-currency swap contracts related to the amount excluded from effectiveness testing in each of fiscal 2026 and 2025 was $19 million.
(2)Changes in the fair value of the interest rate contracts 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 the accompanying consolidated statements of earnings (loss) 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 IncludedCarrying Amount of the
Hedged Liability		Cumulative Amount of Fair
Value Hedging Gain (Loss)
Included in the Carrying Amount of the Hedged Liability
June 30, 2026June 30, 2026
Long-term debt$1,472 $(118)
Intercompany debt$— $5 
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:
June 30,
20262025
(In millions)Net SalesSelling, General and AdministrativeInterest ExpenseNet SalesSelling, General and AdministrativeInterest Expense
Total amounts of income and expense line items presented in the consolidated statements of earnings (loss) in which the effects of fair value and cash flow hedges are recorded
$15,049 $9,685 $334 $14,326 $9,456 $357 
The effects of fair value and cash flow hedging relationships:
Gain (loss) on fair value hedge relationships – interest rate contracts:
Hedged itemN/AN/A14 N/AN/A(42)
Derivatives designated as hedging instrumentsN/AN/A(14)N/AN/A42 
Gain (loss) on fair value hedge relationships – cross-currency swap contracts:
Hedged itemN/A(46)N/AN/A45 N/A
Derivatives designated as hedging instrumentsN/A46 N/AN/A(45)N/A
Gain on cash flow hedge relationships – interest rate contracts:
Amount of gain reclassified from AOCIN/AN/A2 N/AN/A2 
Gain (loss) on cash flow hedge relationships – foreign currency forward contracts:
Amount of (loss) gain reclassified from AOCI (29)N/AN/A35 N/AN/A
N/A (Not applicable)
June 30,
2024
(In millions)Net SalesSelling, General and AdministrativeInterest Expense
Total amounts of income and expense line items presented in the consolidated statements of earnings (loss) in which the effects of fair value and cash flow hedges are recorded
$15,608 $9,621 $378 
The effects of fair value and cash flow hedging relationships:
Gain (loss) on fair value hedge relationships – interest rate contracts:
Hedged itemN/AN/A(5)
Derivatives designated as hedging instrumentsN/AN/A5 
Gain (loss) on fair value hedge relationships – cross-currency swap contracts:
Hedged itemN/A(44)N/A
Derivatives designated as hedging instrumentsN/A44 N/A
Gain on cash flow hedge relationships – interest rate contracts:
Amount of gain reclassified from AOCIN/AN/A— 
Gain on cash flow hedge relationships – foreign currency forward contracts:
Amount of gain reclassified from AOCI
50 N/AN/A
N/A (Not applicable)
Schedule of gains and losses related to derivative financial instruments not designated as hedging instruments
The amount of the gains and losses related to the Company’s derivative financial instruments not designated as hedging instruments are presented as follows:
Amount of Gain (Loss)
Recognized in Earnings (Loss) on Derivatives
Location of Gain (Loss) June 30,
(In millions)Recognized in Earnings (Loss) on Derivatives20262025
Derivatives Not Designated as Hedging Instruments:
Foreign currency forward contractsSelling, general and administrative$(8)$(22)
Schedule of Offsetting Liabilities The following table provides information as if the Company had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria in the event of default or termination as stipulated by the terms of netting arrangements with each of the counterparties:
As of June 30, 2026
As of June 30, 2025
(In millions)Gross Amounts of Assets / (Liabilities) Presented in Balance SheetContracts Subject to NettingNet Amounts of Assets / (Liabilities)Gross Amounts of Assets / (Liabilities) Presented in Balance SheetContracts Subject to NettingNet Amounts of Assets / (Liabilities)
Derivative Financial Instruments
Derivative assets$74 $(40)$34 $82 $(60)$22 
Derivative liabilities(166)40 (126)(216)60 (156)
Total derivatives
$(92)$— $(92)$(134)$— $(134)
Schedule of Offsetting Assets The following table provides information as if the Company had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria in the event of default or termination as stipulated by the terms of netting arrangements with each of the counterparties:
As of June 30, 2026
As of June 30, 2025
(In millions)Gross Amounts of Assets / (Liabilities) Presented in Balance SheetContracts Subject to NettingNet Amounts of Assets / (Liabilities)Gross Amounts of Assets / (Liabilities) Presented in Balance SheetContracts Subject to NettingNet Amounts of Assets / (Liabilities)
Derivative Financial Instruments
Derivative assets$74 $(40)$34 $82 $(60)$22 
Derivative liabilities(166)40 (126)(216)60 (156)
Total derivatives
$(92)$— $(92)$(134)$— $(134)