v3.26.1
Income Taxes (Tables)
 12 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Schedule of Income Before Income Taxes
Income before income taxes was derived from the following sources:
For the years ended June 30,202620252024
United States$2,891 $2,514 $2,120 
Foreign1,672 1,593 1,475 
Total$4,563 $4,107 $3,595 
Schedule of (Benefit) Provision for Income Taxes
Income tax expense (benefit) consisted of the following:
For the years ended June 30,202620252024
Current:
Federal$415 $424 $328 
State and local76 81 34 
Foreign427 374 356 
Total918 879 718 
Deferred:
Federal26 (98)11 
State and local(11)(52)6 
Foreign(19)(154)15 
Total(4)(304)32 
Total expense (benefit)$914 $575 $750 
Schedule of Reconciliation of Effective Income Tax Rate to Statutory Federal Rate
Reconciliation of the statutory federal income tax rate to the effective income tax rate after the adoption of ASU 2023-09 follows:
2026
For the year ended June 30,Amount Percent
Statutory federal income tax$958 21.0 %
State and local income taxes net of federal benefit (1)
51 1.1 
Foreign tax effects48 1.0 
Effect of cross-border tax laws:
Foreign derived intangible income deduction(50)(1.1)
Other(2)0.0 
Tax credits (39)(0.9)
Changes in valuation allowances(1)0.0 
Nontaxable or nondeductible items:
Share-based compensation(72)(1.6)
Other7 0.2 
Worldwide changes in unrecognized tax benefits6 0.1 
Other reconciling items8 0.2 
Total expense (benefit) and effective rate$914 20.0 %
(1) State taxes in California, Connecticut, Illinois, and Minnesota comprised greater than 50% of the tax effect in this category.
Reconciliation of the statutory federal income tax rate to the effective income tax rate prior to the adoption of ASU 2023-09 follows:
For the years ended June 30,20252024
Statutory federal income tax rate21.0 %21.0 %
State and local income taxes0.6 0.9 
Tax related to international activities(2.8)2.3 
Cash surrender value of life insurance(0.1)(0.1)
Foreign derived intangible income deduction(1.3)(1.5)
Research tax credit(0.4)(0.6)
Share-based compensation(1.2)(1.2)
Other(1.8)0.1 
Effective income tax rate14.0 %20.9 %
Schedule of Differences Comprising the Net Deferred Taxes The differences comprising the net deferred taxes shown on the Consolidated Balance Sheets were as follows:
June 30,20262025
Deferred Tax Assets
Capitalized research and development$124 $172 
Inventory78 70 
Long-term contracts48 41 
Loss carryforwards108 114 
Other liabilities and reserves184 189 
Retirement benefits— 27 
Stock-based compensation43 38 
Tax credit carryforwards45 45 
Unrealized currency exchange gains and losses3 5 
Total deferred tax assets633 701 
Valuation allowance(139)(141)
Net deferred tax assets494 560 
Deferred Tax Liabilities
Depreciation and amortization(1,827)(1,748)
Retirement benefits(18)— 
Undistributed foreign earnings(41)(32)
Total deferred tax (liabilities)(1,886)(1,780)
Net deferred tax (liability)$(1,392)$(1,220)
Schedule of Changes in Deferred Tax Asset Valuation Allowance
As of June 30, 2026, we have the following net operating losses, capital losses, tax credits, other loss carryforwards and related valuation allowances:
Tax loss and credit carryforwardsDeferred AssetsValuation AllowanceExpiration
Federal net operating losses$1 $1 2028-2029
Federal credits40 12 2029-2036
State net operating losses2 — 2027-2042
State credits5 — 2027-Unlimited
Foreign net operating losses22 18 2027-Unlimited
Foreign capital and other losses83 83 Unlimited
Total$153 $114 
The following schedule presents the changes in deferred tax asset valuation allowance as follows:

Beginning
Balance		(Reductions)/Additions
Charged to Income Statement
Other
(Reductions)/
Additions(1)
Ending
Balance
Year ended June 30, 2024
$1,078 $(10)$2 $1,070 
Year ended June 30, 2025
1,070 (929)— 141 
Year ended June 30, 2026
$141 $(2)$— $139 
(1) The balance primarily represents adjustments due to acquisitions.
Schedule of Income Taxes Paid, Net
Income taxes paid (net of refunds received) including related interest, penalties, and purchased credits, consisted of the following:
For the year ended June 30,2026
Federal$469 
State and local67 
Foreign:
China86 
Switzerland70 
United Kingdom101 
Other271 
Total foreign528 
Net income tax, related interest, penalties, and purchased credits$1,064 
Schedule of Reconciliation of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
202620252024
Balance at July 1$104 $102 $114 
Additions for tax positions related to current year4 6 6 
Additions for tax positions of prior years18 19 — 
Additions for acquisitions3 — 4 
Reductions for tax positions of prior years(5)— (5)
Reductions for settlements(17)— — 
Reductions for expiration of statute of limitations(5)(27)(15)
Effect of foreign currency translation(3)4 (2)
Balance at June 30$99 $104 $102