DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Billions | 12 Months Ended | ||
Jun. 30, 2020 | Jul. 31, 2020 | Dec. 31, 2019 | |
Entity Information [Line Items] | |||
Entity Registrant Name | PROCTER & GAMBLE CO | ||
Entity Central Index Key | 0000080424 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Fiscal Year end date | Jun. 30, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Trading Symbol | PG | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Files | No | ||
Entity Common Stock, Shares Outstanding | 2,486,086,692 | ||
Entity Public Float | $ 304 | ||
Entity Address, Address Line One | One Procter & Gamble Plaza | ||
Entity Address, State or Province | Cincinnati | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 45202 | ||
City Area Code | 513 | ||
Local Phone Number | 983-1100 | ||
Entity Tax Identification Number | 31-0411980 | ||
Entity Incorporation, State or Country Code | OH | ||
Entity Shell Company | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 1-434 | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Common Stock | |||
Entity Information [Line Items] | |||
Trading Symbol | PG | ||
Title of 12(b) Security | Common Stock, without Par Value | ||
0.275% Notes due 2020 [Domain] | |||
Entity Information [Line Items] | |||
Trading Symbol | PG20A | ||
Title of 12(b) Security | 4.125% EUR notes due December 2020 | ||
2.000% Notes due 2021 [Domain] | |||
Entity Information [Line Items] | |||
Trading Symbol | PG21 | ||
Title of 12(b) Security | 2.000% notes due 2021 | ||
2.000% Notes due 2022 [Domain] | |||
Entity Information [Line Items] | |||
Trading Symbol | PG22B | ||
Title of 12(b) Security | 2.000% notes due 2022 | ||
1.125% Notes due 2023 [Domain] | |||
Entity Information [Line Items] | |||
Trading Symbol | PG23A | ||
Title of 12(b) Security | 1.125% notes due 2023 | ||
0.500% Notes due 2024 [Domain] | |||
Entity Information [Line Items] | |||
Trading Symbol | PG24A | ||
Title of 12(b) Security | 0.500% notes due 2024 | ||
0.625% Notes due 2024 [Domain] | |||
Entity Information [Line Items] | |||
Trading Symbol | PG24B | ||
Title of 12(b) Security | 0.625% notes due 2024 | ||
1.375% Notes due 2025 [Domain] | |||
Entity Information [Line Items] | |||
Trading Symbol | PG25 | ||
Title of 12(b) Security | 1.375% notes due 2025 | ||
4.875% EUR Notes due May 2027 [Domain] | |||
Entity Information [Line Items] | |||
Trading Symbol | PG27A | ||
Title of 12(b) Security | 4.875% EUR notes due May 2027 | ||
1.200% Notes due 2028 [Domain] | |||
Entity Information [Line Items] | |||
Trading Symbol | PG28 | ||
Title of 12(b) Security | 1.200% notes due 2028 | ||
1.250% Notes due 2029 [Domain] | |||
Entity Information [Line Items] | |||
Trading Symbol | PG29B | ||
Title of 12(b) Security | 1.250% notes due 2029 | ||
1.800% Notes due 2029 [Domain] | |||
Entity Information [Line Items] | |||
Trading Symbol | PG29A | ||
Title of 12(b) Security | 1.800% notes due 2029 | ||
6.250% GBP notes due January 2030 [Domain] | |||
Entity Information [Line Items] | |||
Trading Symbol | PG30 | ||
Title of 12(b) Security | 6.250% GBP notes due January 2030 | ||
5.250% GBP notes due January 2033 [Domain] | |||
Entity Information [Line Items] | |||
Trading Symbol | PG33 | ||
Title of 12(b) Security | 5.250% GBP notes due January 2033 | ||
1.875% Notes due 2038 [Domain] | |||
Entity Information [Line Items] | |||
Trading Symbol | PG38 | ||
Title of 12(b) Security | 1.875% notes due 2038 | ||
NEW YORK STOCK EXCHANGE, INC. | |||
Entity Information [Line Items] | |||
Security Exchange Name | NYSE | ||
NEW YORK STOCK EXCHANGE, INC. | Common Stock | |||
Entity Information [Line Items] | |||
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Millions | 12 Months Ended | |||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||||
Net Sales | $ 70,950 | $ 67,684 | $ 66,832 | |||
Cost of Goods Sold (Deprecated 2018-01-31) | 35,250 | 34,768 | 34,432 | |||
Selling, General and Administrative Expense | 19,994 | 19,084 | 19,037 | |||
Goodwill & Indefinite Lived Intangible Asset Impairment Charges | 0 | 8,345 | 0 | |||
Operating Income | 15,706 | 5,487 | 13,363 | |||
Interest Expense | (465) | (509) | (506) | |||
Investment Income, Interest | 155 | 220 | 247 | |||
Other Nonoperating Income (Expense) | 438 | 871 | 222 | |||
Earnings from Continuing Operations Before Income Taxes | 15,834 | 6,069 | 13,326 | |||
Income Taxes on Continuing Operations | 2,731 | 2,103 | 3,465 | |||
Net Earnings | 13,103 | 3,966 | 9,861 | |||
Net Earnings Attributable to Noncontrolling Interest | 76 | 69 | 111 | |||
Net Income (Loss) Attributable to Parent | [1] | $ 13,027 | $ 3,897 | $ 9,750 | ||
BASIC NET EARNINGS PER COMMON SHARE | ||||||
Earnings Per Share, Basic | [2],[3] | $ 5.13 | $ 1.45 | $ 3.75 | ||
DILUTED NET EARNINGS PER COMMON SHARE | ||||||
Earnings Per Share, Diluted | [2],[3] | $ 4.96 | [4] | $ 1.43 | [4],[5] | $ 3.67 |
[1] | Net earnings attributable to Procter & Gamble in fiscal 2019 was negatively impacted by the impairment charges of $8.3 billion related to Shave Care goodwill and Gillette indefinite-lived intangible assets. | |||||
[2] | Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble. | |||||
[3] | Net earnings per share are calculated on Net earnings attributable to Procter & Gamble. | |||||
[4] | Diluted net earnings/(loss) per share is calculated on Net earnings/(loss) attributable to Procter & Gamble. | |||||
[5] | Diluted net earnings/(loss) per share in each quarter is computed using the weighted average number of shares outstanding during that quarter while Diluted net earnings/(loss) per share for the full year is computed using the weighted average number of shares outstanding during the year. In the quarter ended June 30, 2019, the Company reported a Net loss attributable to P&G, driven by the Shave Care impairment charges discussed in Note 4. This caused certain of our equity instruments to be antidilutive for the full year (preferred shares) and for the quarter ended June 30, 2019 (preferred shares and equity awards). Because these securities were dilutive during the first three quarters of this fiscal year, the sum of the four quarters' Diluted net earnings/(loss) per share will not equal the full-year Diluted net earnings per common share. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net Earnings | $ 13,103 | $ 3,966 | $ 9,861 |
OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (1,083) | (213) | (305) |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | (12) | 184 | (148) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (150) | 169 | 334 |
Other Comprehensive Income (Loss), Net of Tax | (1,245) | 140 | (119) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 11,858 | 4,106 | 9,742 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 60 | 70 | 109 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 11,798 | $ 4,036 | $ 9,633 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | $ 59 | $ 78 | $ (279) |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Tax | (1) | 0 | 0 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ (42) | $ 22 | $ 68 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
CURRENT ASSETS | ||
Available-for-sale Securities | $ 0 | $ 6,048 |
Accounts Receivable, after Allowance for Credit Loss, Current | 4,178 | 4,951 |
INVENTORIES | ||
Inventory, Raw Materials and Supplies, Gross | 1,414 | 1,289 |
Inventory, Work in Process, Gross | 674 | 612 |
Inventory, Finished Goods, Gross | 3,410 | 3,116 |
Inventory, Net | 5,498 | 5,017 |
Prepaid Expense and Other Assets, Current | 2,130 | 2,218 |
Assets, Current | 27,987 | 22,473 |
Property, Plant and Equipment, Net | 20,692 | 21,271 |
Goodwill | 39,901 | 40,273 |
Intangible Assets, Net (Excluding Goodwill) | 23,792 | 24,215 |
Other Assets, Noncurrent | 8,328 | 6,863 |
Assets | 120,700 | 115,095 |
CURRENT LIABILITIES | ||
Accounts Payable, Current | 12,071 | 11,260 |
Accrued Liabilities, Current | 9,722 | 9,054 |
Debt, Current | 11,183 | 9,697 |
Liabilities, Current | 32,976 | 30,011 |
Long-term Debt, Excluding Current Maturities | 23,537 | 20,395 |
Deferred Income Tax Liabilities, Net | 6,199 | 6,899 |
Other Liabilities, Noncurrent | 11,110 | 10,211 |
Liabilities | 73,822 | 67,516 |
SHAREHOLDERS' EQUITY | ||
Common Stock, Value, Issued | 4,009 | 4,009 |
Additional Paid in Capital | 64,194 | 63,827 |
Reserve for ESOP Debt Retirement | (1,080) | (1,146) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (16,165) | (14,936) |
Treasury Stock, Value | (105,573) | (100,406) |
Retained Earnings (Accumulated Deficit) | 100,239 | 94,918 |
Stockholders' Equity Attributable to Noncontrolling Interest | 357 | 385 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 46,878 | 47,579 |
Liabilities and Equity | 120,700 | 115,095 |
Preferred Class A | ||
SHAREHOLDERS' EQUITY | ||
Preferred Stock, Stated Value, Issued | 897 | 928 |
Preferred Class B | ||
SHAREHOLDERS' EQUITY | ||
Preferred Stock, Stated Value, Issued | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Common Stock, Shares Authorized | 10,000 | 10,000 |
Common Stock, Shares, Issued | 4,009.2 | 4,009.2 |
Treasury Stock, Shares | 1,529.5 | 1,504.5 |
Preferred Class A | ||
Preferred Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Preferred Stock, Shares Authorized | 600 | 600 |
Preferred Class B | ||
Preferred Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Preferred Stock, Shares Authorized | 200 | 200 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Preferred Stock | Additional Paid-in Capital | Reserve for ESOP Debt Retirement | AOCI Attributable to Parent | Treasury Stock | Retained Earnings | Noncontrolling Interest |
BEGINNING BALANCE (in shares) at Jun. 30, 2017 | 2,553,297 | ||||||||
BEGINNING BALANCE at Jun. 30, 2017 | $ 55,778 | $ 4,009 | $ 1,006 | $ 63,641 | $ (1,249) | $ (14,632) | $ (93,715) | $ 96,124 | $ 594 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Earnings | 9,861 | 9,750 | 111 | ||||||
Other Comprehensive Income (Loss), Net of Tax | (119) | (117) | (2) | ||||||
Dividends to shareholders: | |||||||||
Dividends, Common Stock | (7,057) | (7,057) | |||||||
Dividends, Preferred Stock | (265) | (265) | |||||||
Treasury Stock, Shares, Acquired | (81,439) | ||||||||
Payments for Repurchase of Common Stock and Stock Receipts | (7,004) | (7,004) | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 21,655 | ||||||||
Proceeds, Issuance of Shares, Share-based Payment Arrangement, Including Option Exercised | 1,668 | 199 | 1,469 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 4,580 | ||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | (39) | 6 | 33 | |||||
ESOP Debt Impacts | 134 | 45 | 89 | ||||||
Noncontrolling Interest, Period Increase (Decrease) | (113) | (113) | |||||||
ENDING BALANCE (in shares) at Jun. 30, 2018 | 2,498,093 | ||||||||
ENDING BALANCE at Jun. 30, 2018 | 52,883 | $ 4,009 | 967 | 63,846 | (1,204) | (14,749) | (99,217) | 98,641 | 590 |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (553) | (326) | (200) | (27) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Earnings | 3,966 | 3,897 | 69 | ||||||
Other Comprehensive Income (Loss), Net of Tax | 140 | 139 | 1 | ||||||
Dividends to shareholders: | |||||||||
Dividends, Common Stock | (7,256) | (7,256) | |||||||
Dividends, Preferred Stock | (263) | (263) | |||||||
Treasury Stock, Shares, Acquired | (53,714) | ||||||||
Payments for Repurchase of Common Stock and Stock Receipts | (5,003) | (5,003) | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 55,734 | ||||||||
Proceeds, Issuance of Shares, Share-based Payment Arrangement, Including Option Exercised | 3,874 | 93 | 3,781 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 4,638 | ||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | (39) | 6 | 33 | |||||
ESOP Debt Impacts | 157 | 58 | 99 | ||||||
Noncontrolling Interest, Period Increase (Decrease) | (366) | (118) | (248) | ||||||
ENDING BALANCE (in shares) at Jun. 30, 2019 | 2,504,751 | ||||||||
ENDING BALANCE at Jun. 30, 2019 | 47,579 | $ 4,009 | 928 | 63,827 | 1,146 | (14,936) | (100,406) | 94,918 | 385 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Earnings | 13,103 | 13,027 | 76 | ||||||
Other Comprehensive Income (Loss), Net of Tax | (1,245) | (1,229) | (16) | ||||||
Dividends to shareholders: | |||||||||
Dividends, Common Stock | (7,551) | (7,551) | |||||||
Dividends, Preferred Stock | (263) | (263) | |||||||
Treasury Stock, Shares, Acquired | (61,346) | ||||||||
Payments for Repurchase of Common Stock and Stock Receipts | (7,405) | (7,405) | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 32,603 | ||||||||
Proceeds, Issuance of Shares, Share-based Payment Arrangement, Including Option Exercised | 2,574 | 362 | 2,212 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 3,738 | ||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | (31) | 5 | 26 | |||||
ESOP Debt Impacts | 174 | 66 | 108 | ||||||
Noncontrolling Interest, Period Increase (Decrease) | (88) | (88) | |||||||
ENDING BALANCE (in shares) at Jun. 30, 2020 | 2,479,746 | ||||||||
ENDING BALANCE at Jun. 30, 2020 | $ 46,878 | $ 4,009 | $ 897 | $ 64,194 | $ (1,080) | $ (16,165) | $ (105,573) | $ 100,239 | $ 357 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 3.0284 | $ 2.8975 | $ 2.7860 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning Balance | $ 4,239 | $ 2,569 | $ 5,569 | |
OPERATING ACTIVITIES | ||||
Net Earnings | 13,103 | 3,966 | 9,861 | |
Depreciation, Depletion and Amortization | 3,013 | 2,824 | 2,834 | |
Gain (Loss) on Extinguishment of Debt | 0 | 0 | 346 | |
Share-based Payment Arrangement, Noncash Expense | 558 | 515 | 395 | |
Deferred Income Tax Expense (Benefit) | (596) | (411) | (1,844) | |
Gain (Loss) on Disposition of Business | 7 | (678) | (176) | |
Goodwill and Indefinite-lived Intangibles Impairment Charges Including Disc Ops | 0 | 8,345 | 0 | |
Increase (Decrease) in Accounts Receivable | 634 | (276) | (177) | |
Increase (Decrease) in Inventories | (637) | (239) | (188) | |
Increase (Decrease) in Accounts Payable and Accrued Liabilities | 1,923 | 1,856 | 1,385 | |
Increase (Decrease) in Other Operating Assets and Liabilities, Net | (710) | (973) | 2,000 | |
Other Noncash Expense | 108 | 313 | 431 | |
Net Cash Provided by (Used in) Operating Activities | 17,403 | 15,242 | 14,867 | |
INVESTING ACTIVITIES | ||||
Payments to Acquire Property, Plant, and Equipment | (3,073) | (3,347) | (3,717) | |
Proceeds from Sale of Productive Assets | 30 | 394 | 269 | |
Payments to Acquire Businesses, Net of Cash Acquired | (58) | (3,945) | (109) | |
Payments to Acquire Short-term Investments | 0 | (158) | (3,909) | |
Proceeds from Sale of Short-term Investments | 6,151 | 3,628 | 3,928 | |
Payments for (Proceeds from) Investments | (5) | (62) | 27 | |
Net Cash Provided by (Used in) Investing Activities | 3,045 | (3,490) | (3,511) | |
FINANCING ACTIVITIES | ||||
Payments of Dividends | (7,789) | (7,498) | (7,310) | |
Proceeds from (Repayments of) Short-term Debt | 2,345 | (2,215) | (3,437) | |
Proceeds from Issuance of Long-term Debt | 4,951 | 2,367 | 5,072 | |
Repayments of Long-term Debt | [1] | (2,447) | (969) | (2,873) |
Payments for Repurchase of Common Stock | (7,405) | (5,003) | (7,004) | |
Proceeds From Stock Options Exercised And Other Financing Activities | 1,978 | 3,324 | 1,177 | |
Net Cash Provided by (Used in) Financing Activities | (8,367) | (9,994) | (14,375) | |
SUPPLEMENTAL DISCLOSURE | ||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 434 | 497 | 529 | |
Income Taxes Paid | 3,550 | 3,064 | 2,830 | |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (139) | (88) | 19 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 11,942 | 1,670 | (3,000) | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Ending Balance | $ 16,181 | $ 4,239 | $ 2,569 | |
[1] | Includes early extinguishment of debt costs of $346 in 2018. |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS - ADDITIONAL INFORMATION - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Gain (Loss) on Extinguishment of Debt | $ 0 | $ 0 | $ (346) |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations The Procter & Gamble Company's (the "Company," "Procter & Gamble," "we" or "us") business is focused on providing branded consumer packaged goods of superior quality and value. Our products are sold in more than 180 countries and territories primarily through mass merchandisers, e-commerce, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, baby stores, specialty beauty stores (including airport duty-free stores), high-frequency stores, pharmacies, electronics stores and professional channels. We have on-the-ground operations in approximately 70 countries. Basis of Presentation The Consolidated Financial Statements include the Company and its controlled subsidiaries. Intercompany transactions are eliminated. Because of a lack of control over Venezuelan subsidiaries caused by a number of currency and other operating controls and restrictions, our Venezuelan subsidiaries are not consolidated for any year presented. We account for those subsidiaries at cost, less impairments, plus or minus observable price changes. Use of Estimates Preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying disclosures. These estimates are based on management's best knowledge of current events and actions the Company may undertake in the future. Estimates are used in accounting for, among other items, consumer and trade promotion accruals, restructuring reserves, pensions, post-employment benefits, stock options, valuation of acquired intangible assets, useful lives for depreciation and amortization of long-lived assets, future cash flows associated with impairment testing for goodwill, indefinite-lived intangible assets and other long-lived assets, deferred tax assets and liabilities, uncertain income tax positions and contingencies. Actual results may ultimately differ from estimates, although management does not generally believe such differences would materially affect the financial statements in any individual year. However, in regard to ongoing impairment testing of goodwill and indefinite-lived intangible assets, significant deterioration in future cash flow projections or other assumptions used in estimating fair values versus those anticipated at the time of the initial valuations, could result in impairment charges that materially affect the financial statements in a given year. Revenue Recognition Our revenue is primarily generated from the sale of finished product to customers. Those sales predominantly contain a single performance obligation and revenue is recognized at a single point in time when ownership, risks and rewards transfer, which can be on the date of shipment or the date of receipt by the customer. A provision for payment discounts and product return allowances is recorded as a reduction of sales in the same period the revenue is recognized. The revenue recorded is presented net of sales and other taxes we collect on behalf of governmental authorities. The revenue includes shipping and handling costs, which generally are included in the list price to the customer. Trade promotions, consisting primarily of customer pricing allowances, merchandising funds and consumer coupons, are offered through various programs to customers and consumers. Sales are recorded net of trade promotion spending, which is recognized as incurred at the time of the sale. Most of these arrangements have terms of approximately one year. Accruals for expected payouts under these programs are included as accrued marketing and promotion in the Accrued and other liabilities line item in the Consolidated Balance Sheets. Cost of Products Sold Cost of products sold is primarily comprised of direct materials and supplies consumed in the manufacturing of product, as well as manufacturing labor, depreciation expense and direct overhead expenses necessary to acquire and convert the purchased materials and supplies into finished products. Cost of products sold also includes the cost to distribute products to customers, inbound freight costs, internal transfer costs, warehousing costs and other shipping and handling activity. Selling, General and Administrative Expense Selling, general and administrative expense (SG&A) is primarily comprised of marketing expenses, selling expenses, research and development costs, administrative and other indirect overhead costs, depreciation and amortization expense on non-manufacturing assets and other miscellaneous operating items. Research and development costs are charged to expense as incurred and were $1.8 billion in 2020, $1.9 billion in 2019 and $1.9 billion in 2018. Advertising costs, charged to expense as incurred, include worldwide television, print, radio, internet and in-store advertising expenses and were $7.3 billion in 2020, $6.8 billion in 2019 and $7.1 billion in 2018. Non-advertising related components of the Company's total marketing spending reported in SG&A include costs associated with consumer promotions, product sampling and sales aids. Other Non-Operating Income, Net Other non-operating income, net primarily includes net acquisition and divestiture gains, net non-service costs related to defined benefit plans, investment income and other non-operating items. Currency Translation Financial statements of operating subsidiaries outside the U.S. generally are measured using the local currency as the functional currency. Adjustments to translate those statements into U.S. dollars are recorded in Other comprehensive income (OCI). For subsidiaries operating in highly inflationary economies, the U.S. dollar is the functional currency. Re-measurement adjustments for financial statements in highly inflationary economies and other transactional exchange gains and losses are reflected in earnings. Cash Flow Presentation The Consolidated Statements of Cash Flows are prepared using the indirect method, which reconciles net earnings to cash flows from operating activities. Cash flows from foreign currency transactions and operations are translated at monthly exchange rates for each period. Cash flows from hedging activities are included in the same category as the items being hedged. Cash flows from derivative instruments designated as net investment hedges are classified as financing activities. Realized gains and losses from non-qualifying derivative instruments used to hedge currency exposures resulting from intercompany financing transactions are also classified as financing activities. Cash flows from other derivative instruments used to manage interest rates, commodity or other currency exposures are classified as operating activities. Cash payments related to income taxes are classified as operating activities. Investments Investment securities have primarily consisted of readily marketable debt securities. Unrealized gains or losses from debt securities classified as trading, if any, are charged to earnings. Unrealized gains or losses on debt securities classified as available-for-sale are recorded in OCI. If an available-for-sale security is other than temporarily impaired, the loss is charged to either earnings or OCI depending on our intent and ability to retain the security until we recover the full cost basis and the extent of the loss attributable to the creditworthiness of the issuer. Debt securities are included as Available-for-sale investment securities and Other noncurrent assets in the Consolidated Balance Sheets. In addition to debt securities, we hold minor equity investments in certain companies over which we exert significant influence, but do not control the financial and operating decisions. These are accounted for as equity method investments. Other equity investments that are not controlled, and over which we do not have the ability to exercise significant influence, and for which there is a readily determinable market value, are recorded at fair value, with gains and losses recorded through net earnings. Equity investments without readily determinable fair values are measured at cost, less impairments, plus or minus observable price changes. Equity investments are included as Other noncurrent assets in the Consolidated Balance Sheets. Inventory Valuation Inventories are valued at the lower of cost or net realizable value. Product-related inventories are maintained on the first-in, first-out method. The cost of spare part inventories is maintained using the average-cost method. Property, Plant and Equipment Property, plant and equipment is recorded at cost reduced by accumulated depreciation. Depreciation expense is recognized over the assets' estimated useful lives using the straight-line method. Machinery and equipment includes office furniture and fixtures (15-year life), computer equipment and capitalized software (3- to 5-year lives) and manufacturing equipment (3- to 20-year lives). Buildings are depreciated over an estimated useful life of 40 years. Estimated useful lives are periodically reviewed and, when appropriate, changes are made prospectively. When certain events or changes in operating conditions occur, asset lives may be adjusted and an impairment assessment may be performed on the recoverability of the carrying amounts. Goodwill and Other Intangible Assets Goodwill and indefinite-lived intangible assets are not amortized, but are evaluated for impairment annually or more often if indicators of a potential impairment are present. Our annual impairment testing of goodwill is performed separately from our impairment testing of indefinite-lived intangible assets. We have acquired brands that have been determined to have indefinite lives. We evaluate a number of factors to determine whether an indefinite life is appropriate, including the competitive environment, market share, brand history, underlying product life cycles, operating plans and the macroeconomic environment of the countries in which the brands are sold. In addition, when certain events or changes in operating conditions occur, an additional impairment assessment is performed and indefinite-lived assets may be adjusted to a determinable life. The cost of intangible assets with determinable useful lives is amortized to reflect the pattern of economic benefits consumed, either on a straight-line or accelerated basis over the estimated periods benefited. Patents, technology and other intangible assets with contractual terms are generally amortized over their respective legal or contractual lives. Customer relationships, brands and other non-contractual intangible assets with determinable lives are amortized over periods generally ranging from 5 to 30 years. When certain events or changes in operating conditions occur, an impairment assessment is performed and remaining lives of intangible assets with determinable lives may be adjusted. For additional details on goodwill and intangible assets see Note 4. Fair Values of Financial Instruments Certain financial instruments are required to be recorded at fair value. Changes in assumptions or estimation methods could affect the fair value estimates; however, we do not believe any such changes would have a material impact on our financial condition, results of operations or cash flows. Other financial instruments, including cash equivalents, certain investments and short-term debt, are recorded at cost, which approximates fair value. The fair values of long-term debt and financial instruments are disclosed in Note 9. New Accounting Pronouncements and Policies On July 1, 2019, we adopted ASU 2016-02, "Leases (Topic 842)." The new accounting standard requires the recognition of right-of-use assets and lease liabilities for all long-term leases, including operating leases, on the balance sheet. We elected the optional transition method and adopted the new guidance on a modified retrospective basis with no restatement of prior period amounts. As allowed under the new accounting standard, we elected to apply practical expedients to carry forward the original lease determinations, lease classifications and accounting of initial direct costs for all asset classes at the time of adoption. The adoption did not have a material impact on our financial statements, resulting in an increase of approximately 1% to each of our total assets and total liabilities on our balance sheet as of July 1, 2019. See Note 12 for further information. In January 2017, the FASB issued ASU 2017-04, "Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The standard simplifies the accounting for goodwill impairment by requiring a goodwill impairment to be measured using a single step impairment model, whereby the impairment equals the difference between the carrying amount and the estimated fair value of the specified reporting units in their entirety. This eliminates the second step of the current impairment model that requires companies to first estimate the fair value of all assets in a reporting unit and measure impairments based on those estimated fair values and a residual measurement approach. The new standard also specifies that any loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. We will adopt the standard effective July 1, 2020. The impact of the new standard will be dependent on the specific facts and circumstances of future individual impairments, if any. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." The amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. We are currently evaluating our contracts and the optional expedients provided by the new standard. No other new accounting pronouncements issued or effective during the fiscal year or in future years had, or are expected to have, a material impact on our Consolidated Financial Statements. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | SEGMENT INFORMATION Under U.S. GAAP, our operating segments are aggregated into five reportable segments: 1) Beauty, 2) Grooming, 3) Health Care, 4) Fabric & Home Care and 5) Baby, Feminine & Family Care. Our five reportable segments are comprised of: • Beauty : Hair Care (Conditioner, Shampoo, Styling Aids, Treatments); Skin and Personal Care (Antiperspirant and Deodorant, Personal Cleansing, Skin Care); • Grooming : Shave Care (Female Blades & Razors, Male Blades & Razors, Pre- and Post-Shave Products, Other Shave Care); Appliances • Health Care : Oral Care (Toothbrushes, Toothpaste, Other Oral Care); Personal Health Care (Gastrointestinal, Rapid Diagnostics, Respiratory, Vitamins/Minerals/Supplements, Pain Relief, Other Personal Health Care); • Fabric & Home Care : Fabric Care (Fabric Enhancers, Laundry Additives, Laundry Detergents); Home Care (Air Care, Dish Care, P&G Professional, Surface Care); and • Baby, Feminine & Family Care : Baby Care (Baby Wipes, Taped Diapers and Pants); Feminine Care (Adult Incontinence, Feminine Care); Family Care (Paper Towels, Tissues, Toilet Paper). While none of our reportable segments are highly seasonal, components within certain reportable segments, such as Appliances (Grooming) and Personal Health Care (Health), are seasonal. The accounting policies of the segments are generally the same as those described in Note 1. Differences between these policies and U.S. GAAP primarily reflect income taxes, which are reflected in the segments using applicable blended statutory rates. Adjustments to arrive at our effective tax rate are included in Corporate, including the impacts from the U.S. Tax Act in fiscal 2018 (see Note 5). Corporate includes certain operating and non-operating activities that are not reflected in the operating results used internally to measure and evaluate the businesses, as well as items to adjust management reporting principles to U.S. GAAP. Operating activities in Corporate include the results of incidental businesses managed at the corporate level. Operating elements also include certain employee benefit costs, the costs of certain restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization, certain significant asset impairment charges and other general Corporate items. The non-operating elements in Corporate primarily include interest expense, certain pension and other postretirement benefit costs, certain acquisition and divestiture gains, interest and investing income and other financing costs. Total assets for the reportable segments include those assets managed by the reportable segment, primarily inventory, fixed assets and intangible assets. Other assets, primarily cash, accounts receivable, investment securities, leased assets and goodwill, are included in Corporate. Our operating segments are comprised of similar product categories. Operating segments that individually accounted for 5% or more of consolidated net sales are as follows: % of Net sales by operating segment (1) Years ended June 30 2020 2019 2018 Fabric Care 22% 22% 22% Baby Care 11% 12% 13% Home Care 11% 10% 10% Skin and Personal Care 10% 10% 9% Hair Care 9% 10% 10% Family Care 9% 9% 8% Oral Care 8% 8% 8% Shave Care 7% 8% 8% Feminine Care 6% 6% 6% Personal Health Care 5% 4% 4% All Other 2% 1% 2% TOTAL 100% 100% 100% (1) % of Net sales by operating segment excludes sales held in Corporate. Net sales and long-lived assets in the United States and internationally were as follows (in billions): Years ended June 30 2020 2019 2018 NET SALES United States $ 31.3 $ 28.6 $ 27.3 International $ 39.7 $ 39.1 $ 39.5 LONG-LIVED ASSETS (1) United States $ 9.9 $ 10.0 $ 9.7 International $ 10.8 $ 11.3 $ 10.9 (1) Long-lived assets consists of property, plant and equipment. No country, other than the United States, exceeds 10% of the consolidated net sales or long-lived assets. Our largest customer, Walmart Inc. and its affiliates, accounted for consolidated net sales of approximately 15% in 2020, 2019 and 2018. No other customer represents more than 10% of our consolidated net sales. Global Segment Results Net Sales Earnings/(Loss) Net Earnings/(Loss) Depreciation Total Capital BEAUTY 2020 $ 13,359 $ 3,437 $ 2,737 $ 320 $ 5,531 $ 397 2019 12,897 3,282 2,637 272 5,362 634 2018 12,406 3,042 2,320 236 4,709 766 GROOMING 2020 6,069 1,613 1,329 406 20,589 305 2019 6,199 1,777 1,529 429 20,882 367 2018 6,551 1,801 1,432 447 22,609 364 HEALTH CARE 2020 9,028 2,156 1,652 350 7,726 338 2019 8,218 1,984 1,519 294 7,708 363 2018 7,857 1,922 1,283 230 5,254 330 FABRIC & HOME CARE 2020 23,735 5,426 4,154 605 7,745 887 2019 22,080 4,601 3,518 557 7,620 984 2018 21,441 4,191 2,708 534 7,295 1,020 BABY, FEMININE & FAMILY CARE 2020 18,364 4,534 3,465 839 8,628 764 2019 17,806 3,593 2,734 861 9,271 819 2018 18,080 3,527 2,251 899 9,682 1,016 CORPORATE (1) 2020 395 (1,332) (234) 493 70,481 382 2019 484 (9,168) (7,971) 411 64,252 180 2018 497 (1,157) (133) 488 68,761 221 TOTAL COMPANY 2020 $ 70,950 $ 15,834 $ 13,103 $ 3,013 $ 120,700 $ 3,073 2019 67,684 6,069 3,966 2,824 115,095 3,347 2018 66,832 13,326 9,861 2,834 118,310 3,717 |
SUPPLEMENTAL FINANCIAL INFORMAT
SUPPLEMENTAL FINANCIAL INFORMATION | 12 Months Ended |
Jun. 30, 2020 | |
Disclosure Text Block [Abstract] | |
Supplemental Balance Sheet Disclosures [Text Block] | SUPPLEMENTAL FINANCIAL INFORMATION The components of property, plant and equipment were as follows: As of June 30 2020 2019 PROPERTY, PLANT AND EQUIPMENT Buildings $ 7,700 $ 7,746 Machinery and equipment 33,260 32,263 Land 777 805 Construction in progress 2,034 2,579 TOTAL PROPERTY, PLANT AND EQUIPMENT 43,771 43,393 Accumulated depreciation (23,079) (22,122) PROPERTY, PLANT AND EQUIPMENT, NET $ 20,692 $ 21,271 Selected components of current and noncurrent liabilities were as follows: As of June 30 2020 2019 ACCRUED AND OTHER LIABILITIES - CURRENT Marketing and promotion $ 3,531 $ 4,299 Compensation expenses 1,921 1,623 Restructuring reserves 472 468 Taxes payable 693 341 Other 3,105 2,323 TOTAL $ 9,722 $ 9,054 OTHER NONCURRENT LIABILITIES Pension benefits $ 6,223 $ 5,622 Other postretirement benefits 965 1,098 U.S. Tax Act transitional tax payable 2,121 2,343 Uncertain tax positions 580 472 Long term operating leases 652 — Other 569 676 TOTAL $ 11,110 $ 10,211 RESTRUCTURING PROGRAM The Company has historically incurred an ongoing annual level of restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization. Before-tax costs incurred under the ongoing program have generally ranged from $250 to $500 annually. In fiscal 2012, the Company initiated an incremental restructuring program (covering fiscal 2012 through 2017) as part of a productivity and cost savings plan to reduce costs in the areas of supply chain, research and development, marketing activities and overhead expenses. The productivity and cost savings plan was designed to accelerate cost reductions by streamlining management decision making, manufacturing and other work processes in order to help fund the Company's growth strategy. In fiscal 2017, the Company announced specific elements of an additional incremental multi-year productivity and cost savings plan to further reduce costs in the areas of supply chain, certain marketing activities and overhead expenses. This program is resulting in incremental targeted enrollment reductions, along with further optimization of the supply chain and other manufacturing processes. Restructuring costs incurred consist primarily of costs to separate employees, asset-related costs to exit facilities and other costs. The Company incurred total restructuring charges of $782 and $754 for the years ended June 30, 2020 and 2019, respectively. Of the charges incurred for fiscal year 2020, $155 were recorded in SG&A, $614 in Costs of products sold, and $13 in Other non-operating income/(expense), net. Of the charges incurred for fiscal year 2019, $213 were recorded in SG&A, $521 in Costs of products sold, and $20 in Other non-operating income/(expense), net. The following table presents restructuring activity for the years ended June 30, 2020 and 2019: Separations Asset-Related Costs Other Total RESERVE JUNE 30, 2018 $ 259 $ — $ 254 $ 513 Charges 260 252 242 754 Cash spent (239) — (308) (547) Charges against assets — (252) — (252) RESERVE JUNE 30, 2019 280 — 188 468 Charges 221 372 189 782 Cash spent (216) — (190) (406) Charges against assets — (372) — (372) RESERVE JUNE 30, 2020 $ 285 $ — $ 187 $ 472 Separation Costs Employee separation charges for the years ended June 30, 2020 and 2019 relate to severance packages for approximately 1,200 and 1,810 employees, respectively. The packages were primarily voluntary and the amounts were calculated based on salary levels and past service periods. Severance costs related to voluntary separations are generally charged to earnings when the employee accepts the offer. Asset-Related Costs Asset-related costs consist of both asset write-downs and accelerated depreciation. Asset write-downs relate to the establishment of a new fair value basis for assets held-for-sale or for disposal. These assets were written down to the lower of their current carrying basis or amounts expected to be realized upon disposal, less minor disposal costs. Charges for accelerated depreciation relate to long-lived assets that will be taken out of service prior to the end of their normal service period. These assets relate primarily to manufacturing consolidations and technology standardizations. The asset-related charges will not have a significant impact on future depreciation charges. Other Costs Other restructuring-type charges are incurred as a direct result of the restructuring program. Such charges primarily include asset removal and termination of contracts related to supply chain optimization. Consistent with our historical policies for ongoing restructuring-type activities, the restructuring program charges are funded by and included within Corporate for both management and segment reporting. Accordingly, all of the charges under the program are included within the Corporate reportable segment. However, for information purposes, the following table summarizes the total restructuring costs related to our reportable segments: Years ended June 30 2020 2019 2018 Beauty $ 54 $ 49 $ 60 Grooming 102 65 38 Health Care 136 23 21 Fabric & Home Care 75 84 115 Baby, Feminine & Family Care 192 226 547 Corporate (1) 223 307 289 Total Company $ 782 $ 754 $ 1,070 (1) Corporate includes costs related to allocated overheads, including charges related to our Enterprise Markets, Global Business Services and Corporate Functions activities. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | GOODWILL AND INTANGIBLE ASSETS The change in the net carrying amount of goodwill by reportable segment was as follows: Beauty Grooming Health Care Fabric & Home Care Baby, Feminine & Family Care Corporate Total Company BALANCE AT JUNE 30, 2018 - NET (1) $ 12,992 $ 19,820 $ 5,929 $ 1,865 $ 4,569 $ — $ 45,175 Acquisitions and divestitures 132 — 2,084 6 57 — 2,279 Goodwill impairment charges — (6,783) — — — — (6,783) Translation and other (139) (156) (41) (16) (46) — (398) BALANCE AT JUNE 30, 2019 - NET (1) 12,985 12,881 7,972 1,855 4,580 — 40,273 Acquisitions and divestitures (1) — (46) — 5 — (42) Translation and other (82) (66) (140) (14) (28) — (330) BALANCE AT JUNE 30, 2020 - NET (1) $ 12,902 $ 12,815 $ 7,786 $ 1,841 $ 4,557 $ — $ 39,901 Goodwill and indefinite-lived intangibles are tested for impairment at least annually by comparing the estimated fair values of our reporting units and underlying indefinite-lived intangible assets to their respective carrying values. We typically use an income method to estimate the fair value of these assets, which is based on forecasts of the expected future cash flows attributable to the respective assets. Significant estimates and assumptions inherent in the valuations reflect a consideration of other marketplace participants, and include the amount and timing of future cash flows (including expected growth rates and profitability). Estimates utilized in the projected cash flows include consideration of macroeconomic conditions, overall category growth rates, competitive activities, cost containment and margin expansion, Company business plans, the underlying product or technology life cycles, economic barriers to entry, a brand's relative market position and the discount rate applied to the cash flows. Unanticipated market or macroeconomic events and circumstances may occur, which could affect the accuracy or validity of the estimates and assumptions. We believe the estimates and assumptions utilized in our impairment testing are reasonable and are comparable to those that would be used by other marketplace participants. However, actual events and results could differ substantially from those used in our valuations. To the extent such factors result in a failure to achieve the level of projected cash flows initially used to estimate fair value for purposes of establishing or subsequently impairing the carrying amount of goodwill and related intangible assets, we may need to record additional non-cash impairment charges in the future. The change in goodwill during fiscal 2020 primarily reflects opening balance sheet adjustments from the prior year acquisition of the over-the-counter (OTC) healthcare business of Merck KGaA (Merck OTC) in the Health Care reportable segment (see Note 14) and currency translation across all reportable segments. During fiscal 2019, we determined that the estimated fair value of our Shave Care reporting unit was less than its carrying value. We also determined that the estimated fair value of the Gillette indefinite-lived intangible asset was less than its carrying value. As a result, we recorded non-cash impairment charges for both assets. These reductions were due in large part to significant currency devaluations in a number of countries relative to the U.S. dollar, a deceleration of category growth caused by changing grooming habits, primarily in the developed markets, and an increased competitive market environment in the U.S. and certain other markets, which collectively resulted in reduced cash flow projections. A non-cash, before and after-tax impairment charge of $6.8 billion was recognized to reduce the carrying amount of goodwill for the Shave Care reporting unit. Additionally, a non-cash, before-tax impairment charge of $1.6 billion ($1.2 billion after-tax) was recognized to reduce the carrying amount of the Gillette indefinite-lived intangible asset to its estimated fair value as of June 30, 2019. During fiscal 2019, the Company completed the acquisition of the healthcare business of Merck OTC, which is included in the Health Care reportable segment (see Note 14), along with other minor acquisitions in the Beauty, the Baby, Feminine & Family Care and the Fabric & Home Care reportable segments. These goodwill increases were partially offset by the divestiture of the Teva portion of the PGT business in the Health Care reportable segment and currency translation in fiscal 2019. Identifiable intangible assets were comprised of: 2020 2019 As of June 30 Gross Accumulated Gross Accumulated INTANGIBLE ASSETS WITH DETERMINABLE LIVES Brands $ 3,820 $ (2,347) $ 3,836 $ (2,160) Patents and technology 2,776 (2,513) 2,776 (2,434) Customer relationships 1,752 (778) 1,787 (691) Other 143 (92) 145 (91) TOTAL $ 8,491 $ (5,730) $ 8,544 $ (5,376) INTANGIBLE ASSETS WITH INDEFINITE LIVES Brands 21,031 — 21,047 — TOTAL $ 29,522 $ (5,730) $ 29,591 $ (5,376) Amortization expense of intangible assets was as follows: Years ended June 30 2020 2019 2018 Intangible asset amortization $ 360 $ 349 $ 302 Estimated amortization expense over the next five fiscal years is as follows: Years ending June 30 2021 2022 2023 2024 2025 Estimated amortization expense $ 310 $ 291 $ 280 $ 268 $ 250 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES Income taxes are recognized for the amount of taxes payable for the current year and for the impact of deferred tax assets and liabilities, which represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. Deferred tax assets and liabilities are established using the enacted statutory tax rates and are adjusted for any changes in such rates in the period of change. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the U.S. Tax Act). The U.S. Tax Act significantly revised the future ongoing U.S. corporate income tax by, among other things, lowering the U.S. corporate income tax rates and implementing a hybrid territorial tax system. As the Company has a June 30 fiscal year-end, the lower corporate income tax rate was phased in, resulting in a U.S. statutory federal rate of approximately 28% for our fiscal year ended June 30, 2018, and 21% for subsequent fiscal years. However, the U.S. Tax Act eliminated the domestic manufacturing deduction and moved to a hybrid territorial system, which also largely eliminated the ability to credit certain foreign taxes that existed prior to enactment of the U.S. Tax Act. There were also certain transitional impacts of the U.S. Tax Act. As part of the transition to the new hybrid territorial tax system, the U.S. Tax Act imposed a one-time repatriation tax on deemed repatriation of historical earnings of foreign subsidiaries. In addition, the reduction of the U.S. corporate tax rate caused us to adjust our U.S. deferred tax assets and liabilities to the lower federal base rate of 21%. These transitional impacts resulted in a provisional net charge of $602 for the fiscal year ended June 30, 2018, comprised of an estimated repatriation tax charge of $3.8 billion (comprised of U.S. repatriation taxes and foreign withholding taxes) and an estimated net deferred tax benefit of $3.2 billion. The transitional impact was finalized during the fiscal year ended June 30, 2019, with no significant impact on income tax expense. Any legislative changes, as well as any other new or proposed Treasury regulations to address questions that arise because of the U.S. Tax Act, may result in additional income tax impacts which could be material in the period any such changes are enacted. The Global Intangible Low-Taxed Income (GILTI) provision of the U.S. Tax Act requires the Company to include in its U.S. Income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary's tangible assets. An accounting policy election is available to account for the tax effects of GILTI either as a current period expense when incurred, or to recognize deferred taxes for book and tax basis differences expected to reverse as GILTI in future years. We have elected to account for the tax effects of GILTI as a current period expense when incurred. Earnings before income taxes consisted of the following: Years ended June 30 2020 2019 2018 United States $ 10,338 $ 1,659 $ 9,277 International 5,496 4,410 4,049 TOTAL $ 15,834 $ 6,069 $ 13,326 Income taxes consisted of the following: Years ended June 30 2020 2019 2018 CURRENT TAX EXPENSE U.S. federal $ 1,266 $ 1,064 $ 3,965 International 1,769 1,259 1,131 U.S. state and local 292 191 213 3,327 2,514 5,309 DEFERRED TAX EXPENSE/(BENEFIT) U.S. federal 39 (296) (1,989) International and other (635) (115) 145 (596) (411) (1,844) TOTAL TAX EXPENSE $ 2,731 $ 2,103 $ 3,465 A reconciliation of the U.S. federal statutory income tax rate to our actual effective income tax rate is provided below: Years ended June 30 2020 2019 2018 U.S. federal statutory income tax rate 21.0 % 21.0 % 28.1 % Country mix impacts of foreign operations (0.1) % (0.5) % (4.7) % State income taxes, net of federal benefit 1.4 % 2.6 % 1.4 % Excess tax benefits from the exercise of stock options (1.6) % (3.8) % (0.4) % Tax benefit from simplification of legal entity structure (1.4) % — % — % Foreign derived intangible income deduction (FDII) (1.0) % (2.2) % — % Changes in uncertain tax positions 0.1 % (0.3) % (0.3) % Goodwill impairment — % 22.8 % — % Net transitional impact of U.S. Tax Act — % — % 4.5 % Other (1.2) % (4.9) % (2.6) % EFFECTIVE INCOME TAX RATE 17.2 % 34.7 % 26.0 % Country mix impacts of foreign operations includes the effects of foreign subsidiaries' earnings taxed at rates other than the U.S. statutory rate, the U.S. tax impacts of non-U.S. earnings repatriation and any net impacts of intercompany transactions. Changes in uncertain tax positions represent changes in our net liability related to prior year tax positions. Excess tax benefits from the exercise of stock options reflect the excess of actual tax benefits received on employee exercises of stock options and other share-based payments (which generally equals the income taxable to the employee) over the amount of tax benefits that were calculated at the grant dates of such instruments. Tax benefits credited to shareholders' equity totaled $18 for the year ended June 30, 2020. This primarily relates to the tax effects of certain adjustments to pension obligations and unrealized foreign exchange losses recorded in stockholders' equity, partially offset by the tax effects of net investment hedges. Tax costs charged to shareholders' equity totaled $80 for the year ended June 30, 2019. This primarily relates to the tax effects of net investment hedges and certain adjustments to pension obligations recorded in stockholders' equity. Prior to the passage of the U.S. Tax Act, the Company asserted that substantially all of the undistributed earnings of its foreign subsidiaries were considered indefinitely invested and accordingly, no deferred taxes were provided. Pursuant to the provisions of the U.S. Tax Act, these earnings were subjected to a one-time transition tax. This charge included taxes for all U.S. income taxes and for the related foreign withholding taxes for the portion of those earnings which are no longer considered indefinitely invested. We have not provided deferred taxes on approximately $19 billion of earnings that are considered permanently reinvested. A reconciliation of the beginning and ending liability for uncertain tax positions is as follows: Years ended June 30 2020 2019 2018 BEGINNING OF YEAR $ 466 $ 470 $ 465 Increases in tax positions for prior years 60 85 26 Decreases in tax positions for prior years (21) (94) (38) Increases in tax positions for current year 82 71 87 Settlements with taxing authorities (83) (37) (45) Lapse in statute of limitations (12) (27) (20) Currency translation (7) (2) (5) END OF YEAR $ 485 $ 466 $ 470 Included in the total liability for uncertain tax positions at June 30, 2020 is $278 that, depending on the ultimate resolution, could impact the effective tax rate in future periods. The Company is present in approximately 70 countries and over 150 taxable jurisdictions and, at any point in time, has 40-50 jurisdictional audits underway at various stages of completion. We evaluate our tax positions and establish liabilities for uncertain tax positions that may be challenged by local authorities and may not be fully sustained, despite our belief that the underlying tax positions are fully supportable. Uncertain tax positions are reviewed on an ongoing basis and are adjusted in light of changing facts and circumstances, including progress of tax audits, developments in case law and the closing of statutes of limitation. Such adjustments are reflected in the tax provision as appropriate. We have tax years open ranging from 2008 and forward. We are generally not able to reliably estimate the ultimate settlement amounts until the close of the audit. Based on information currently available, we anticipate that over the next 12-month period, audit activity could be completed related to uncertain tax positions in multiple jurisdictions for which we have accrued existing liabilities of approximately $60, including interest and penalties. We recognize the additional accrual of any possible related interest and penalties relating to the underlying uncertain tax position in income tax expense. As of June 30, 2020, 2019 and 2018, we had accrued interest of $141, $133 and $99 and accrued penalties of $17, $17 and $15, respectively, which are not included in the above table. During the fiscal years ended June 30, 2020, 2019 and 2018, we recognized $39, $40 and $22 in interest expense and $1, $2 and $5 in penalties expense, respectively. Deferred income tax assets and liabilities were comprised of the following: As of June 30 2020 2019 DEFERRED TAX ASSETS Pension and postretirement benefits $ 1,602 $ 1,591 Loss and other carryforwards 875 1,007 Stock-based compensation 398 421 Accrued marketing and promotion 353 334 Fixed assets 218 232 Lease liabilities 190 — Unrealized loss on financial and foreign exchange transactions 64 73 Inventory 27 41 Accrued interest and taxes 20 15 Other 829 931 Valuation allowances (486) (442) TOTAL $ 4,090 $ 4,203 DEFERRED TAX LIABILITIES Goodwill and intangible assets $ 5,775 $ 6,506 Fixed assets 1,485 1,413 Lease right-of-use assets 185 — Unrealized gain on financial and foreign exchange transactions 169 147 Foreign withholding tax on earnings to be repatriated 118 239 Other 366 351 TOTAL $ 8,098 $ 8,656 Net operating loss carryforwards were $2.9 billion at June 30, 2020 and $3.5 billion at June 30, 2019. If unused, approximately $900 will expire between 2020 and 2039. The remainder, totaling $2.0 billion at June 30, 2020, may be carried forward indefinitely. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | EARNINGS PER SHARE Basic net earnings per common share are calculated by dividing Net earnings attributable to Procter & Gamble less preferred dividends (net of related tax benefits) by the weighted average number of common shares outstanding during the year. For fiscal years 2020 and 2018, Diluted net earnings per common share are calculated by dividing Net earnings attributable to Procter & Gamble by the diluted weighted average number of common shares outstanding during the year. The diluted shares include the dilutive effect of stock options and other stock-based awards based on the treasury stock method (see Note 7) and the assumed conversion of preferred stock (see Note 8). For fiscal year 2019, Diluted net earnings per common share do not include the assumed conversion of preferred stock because to do so would have been antidilutive, due to the lower Net earnings driven by the Shave Care impairment charges (see Note 4). Therefore, Diluted net earnings per common share are calculated by dividing Net earnings attributable to Procter & Gamble less preferred dividends (net of related tax benefit) by the diluted weighted average number of common shares outstanding during the year. The diluted shares include the dilutive effect of stock options and other stock-based awards based on the treasury stock method. Net earnings per share were calculated as follows: Years ended June 30 2020 2019 2018 CONSOLIDATED AMOUNTS Net earnings $ 13,103 $ 3,966 $ 9,861 Less: Net earnings attributable to noncontrolling interests 76 69 111 Net earnings attributable to P&G 13,027 3,897 9,750 Less: Preferred dividends, net of tax 263 263 265 Net earnings attributable to P&G available to common shareholders (Basic) $ 12,764 $ 3,634 $ 9,485 Net earnings attributable to P&G available to common shareholders (Diluted) $ 13,027 $ 3,634 $ 9,750 SHARES IN MILLIONS Basic weighted average common shares outstanding 2,487.1 2,503.6 2,529.3 Add: Effect of dilutive securities Impact of stock options and other unvested equity awards (1) 52.7 35.9 32.5 Conversion of preferred shares (2) 86.0 — 94.9 Diluted weighted average common shares outstanding 2,625.8 2,539.5 2,656.7 NET EARNINGS PER SHARE (3) Basic $ 5.13 $ 1.45 $ 3.75 Diluted $ 4.96 $ 1.43 $ 3.67 (1) Weighted average outstanding stock options of approximately 6 million in 2020, 13 million in 2019 and 48 million in 2018 were not included in the Diluted net earnings per share calculation because the options were out of the money or to do so would have been antidilutive (i.e., the assumed proceeds upon exercise would have exceeded the market value of the underlying common shares). (2) Despite being included in Diluted net earnings per common share, the actual conversion to common stock occurs when the preferred shares are sold. Shares may only be sold after being allocated to the ESOP participants pursuant to the repayment of the ESOP's obligations through 2035. In fiscal year 2019, weighted average outstanding preferred shares of 90 million were not included in the Diluted net earnings per share calculation because to do so would have been antidilutive, due to lower Net earnings driven by the Shave Care impairment charges (see Note 4). (3) Net earnings per share are calculated on Net earnings attributable to Procter & Gamble. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement [Text Block] | STOCK-BASED COMPENSATION The Company has two primary stock-based compensation programs under which we annually grant stock option, restricted stock unit (RSU) and performance stock unit (PSU) awards to key managers and directors. In our main long-term incentive program, key managers can elect to receive options or RSUs. All options vest after three years and have a 10-year life. Exercise prices on options are set equal to the market price of the underlying shares on the date of the grant. Effective in fiscal year 2017, RSUs vest and settle in shares of common stock three years from the grant date. RSUs granted prior to fiscal year 2017 vest and settle in shares of common stock five years from the grant date. Senior-level executives participate in an additional long-term incentive program that awards PSUs, which are paid in shares after the end of a three-year performance period subject to pre-established performance goals. Effective in fiscal year 2019, we added a Relative Total Shareholder Return (R-TSR) modifier to the PSUs, under which the number of shares ultimately granted is also impacted by the Company's actual shareholder return relative to our consumer products competitive peer set. In addition to these long-term incentive programs, we award RSUs to the Company's non-employee directors and make other minor stock option and RSU grants to employees for which the terms are not substantially different from our long-term incentive awards. A total of 150 million shares of common stock were newly authorized for issuance under the stock-based compensation plan approved by shareholders in 2019. Additionally, the number of shares available for award under the 2019 plan includes 37 million previously authorized but not awarded under the shareholders approved plan in 2014 plus any shares of Common Stock subject to outstanding awards under the 2014 Plan that are forfeited, cancelled or otherwise terminated without the issuance of shares of Common Stock as set forth in the 2019 Plan. A total of 166 million shares remain available for grant under the 2019 plan. The Company recognizes stock-based compensation expense based on the fair value of the awards at the date of grant. The fair value is amortized on a straight-line basis over the requisite service period. Awards to employees eligible for retirement prior to the award becoming fully vested are recognized as compensation expense from the grant date through the date the employee first becomes eligible to retire and is no longer required to provide services to earn the award. Stock-based compensation expense is included as part of Cost of products sold and SG&A in the Consolidated Statement of Earnings and includes an estimate of forfeitures, which is based on historical data. Total expense and related tax benefit were as follows: Years ended June 30 2020 2019 2018 Stock options $ 249 $ 246 $ 220 RSUs and PSUs 309 269 175 Total stock-based expense $ 558 $ 515 $ 395 Income tax benefit $ 97 $ 101 $ 87 We utilize an industry standard lattice-based valuation model to calculate the fair value for stock options granted. Assumptions utilized in the model, which are evaluated and revised to reflect market conditions and experience, were as follows: Years ended June 30 2020 2019 2018 Interest rate 1.1 - 1.4 % 2.5 - 2.7 % 1.9 - 2.9 % Weighted average interest rate 1.3 % 2.6 % 2.8 % Dividend yield 2.4 % 3.0 % 3.1 % Expected volatility 17 % 17 % 18 % Expected life in years 9.2 9.2 9.2 Lattice-based option valuation models incorporate ranges of assumptions for inputs and those ranges are disclosed in the preceding table. Expected volatilities are based on a combination of historical volatility of our stock and implied volatilities of call options on our stock. We use historical data to estimate option exercise and employee termination patterns within the valuation model. The expected life of options granted is derived from the output of the option valuation model and represents the average period of time that options granted are expected to be outstanding. The interest rate for periods within the contractual life of the options is based on the U.S. Treasury yield curve in effect at the time of grant. A summary of options outstanding under the plans as of June 30, 2020 and activity during the year then ended is presented below: Options Options (in thousands) Weighted Average Exercise Price Weighted Average Contract-ual Life in Years Aggregate Intrinsic Value Outstanding, beginning of year 164,741 $ 79.59 Granted 14,277 115.01 Exercised (28,722) 70.34 Forfeited/expired (424) 83.23 OUTSTANDING, END OF YEAR 149,872 $ 84.71 5.5 $ 5,241 EXERCISABLE 102,702 $ 79.54 4.2 $ 4,111 The following table provides additional information on stock options: Years ended June 30 2020 2019 2018 Weighted average grant-date fair value of options granted $ 15.60 $ 13.60 $ 11.89 Intrinsic value of options exercised 1,455 1,770 500 Grant-date fair value of options that vested 217 180 209 Cash received from options exercised 2,019 3,381 1,245 Actual tax benefit from options exercised 298 221 127 At June 30, 2020, there was $171 of compensation cost that has not yet been recognized related to stock option grants. That cost is expected to be recognized over a remaining weighted average period of 2.0 years. A summary of non-vested RSUs and PSUs outstanding under the plans as of June 30, 2020 and activity during the year then ended is presented below: RSUs PSUs RSU and PSU awards Units (in thousands) Weighted Average Grant Date Fair Value Units (in thousands) Weighted Average Grant Date Fair Value Non-vested at July 1, 2019 5,493 $ 84.00 1,295 $ 92.98 Granted 1,516 114.44 562 123.52 Vested (2,376) 88.61 (799) 79.64 Forfeited (135) 84.61 (10) 94.94 Non-vested at June 30, 2020 4,498 $ 92.15 1,048 $ 117.02 At June 30, 2020, there was $251 of compensation cost that has not yet been recognized related to RSUs and PSUs. That cost is expected to be recognized over a remaining weighted average period of 1.9 years. The total grant date fair value of shares vested was $264, $205 and $175 in 2020, 2019 and 2018, respectively. The Company settles equity issuances with treasury shares. We have no specific policy to repurchase common shares to |
POSTRETIREMENT BENEFITS AND EMP
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN | 12 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN We offer various postretirement benefits to our employees. Defined Contribution Retirement Plans We have defined contribution plans, which cover the majority of our U.S. employees, as well as employees in certain other countries. These plans are fully funded. We generally make contributions to participants' accounts based on individual base salaries and years of service. Total global defined contribution expense was $317, $272 and $292 in 2020, 2019 and 2018, respectively. The primary U.S. defined contribution plan (the U.S. DC plan) comprises the majority of the expense for the Company's defined contribution plans. For the U.S. DC plan, the contribution rate is set annually. Total contributions for this plan approximated 14% of total participants' annual wages and salaries in 2020, 2019 and 2018. We maintain The Procter & Gamble Profit Sharing Trust (Trust) and Employee Stock Ownership Plan (ESOP) to provide a portion of the funding for the U.S. DC plan and other retiree benefits (described below). Operating details of the ESOP are provided at the end of this Note. The fair value of the ESOP Series A shares allocated to participants reduces our cash contribution required to fund the U.S. DC plan. Defined Benefit Retirement Plans and Other Retiree Benefits We offer defined benefit retirement pension plans to certain employees. These benefits relate primarily to plans outside the U.S. and, to a lesser extent, plans assumed in previous acquisitions covering U.S. employees. We also provide certain other retiree benefits, primarily health care, for the majority of our U.S. employees who become eligible for these benefits when they meet minimum age and service requirements. Generally, the health care plans require cost sharing with retirees and pay a stated percentage of expenses, reduced by deductibles and other coverages. These benefits are primarily funded by ESOP Series B shares and certain other assets contributed by the Company. Obligation and Funded Status . The following provides a reconciliation of benefit obligations, plan assets and funded status of these defined benefit plans: Pension Benefits (1) Other Retiree Benefits (2) Years ended June 30 2020 2019 2020 2019 CHANGE IN BENEFIT OBLIGATION Benefit obligation at beginning of year (3) $ 17,037 $ 15,658 $ 4,964 $ 4,778 Service cost 247 259 100 101 Interest cost 276 339 160 187 Participants' contributions 11 12 74 76 Amendments 3 9 (136) — Net actuarial loss/(gain) 951 1,587 (85) 37 Acquisitions — 49 — — Special termination benefits 11 13 2 8 Currency translation and other (218) (283) (64) 20 Benefit payments (557) (606) (245) (243) BENEFIT OBLIGATION AT END OF YEAR (3) $ 17,761 $ 17,037 $ 4,770 $ 4,964 CHANGE IN PLAN ASSETS Fair value of plan assets at beginning of year $ 11,382 $ 11,267 $ 5,096 $ 3,259 Actual return on plan assets 664 739 595 1,918 Acquisitions — 4 — — Employer contributions 180 178 33 31 Participants' contributions 11 12 74 76 Currency translation and other (196) (212) 2 (1) ESOP debt impacts (4) — — 63 56 Benefit payments (557) (606) (245) (243) FAIR VALUE OF PLAN ASSETS AT END OF YEAR $ 11,484 $ 11,382 $ 5,618 $ 5,096 FUNDED STATUS $ (6,277) $ (5,655) $ 848 $ 132 (1) Primarily non-U.S.-based defined benefit retirement plans. (2) Primarily U.S.-based other postretirement benefit plans. (3) For the pension benefit plans, the benefit obligation is the projected benefit obligation. For other retiree benefit plans, the benefit obligation is the accumulated postretirement benefit obligation. (4) Represents the net impact of ESOP debt service requirements, which is netted against plan assets for other retiree benefits. The underfunding of pension benefits is primarily a function of the different funding incentives that exist outside of the U.S. In certain countries, there are no legal requirements or financial incentives provided to companies to pre-fund pension obligations prior to their due date. In these instances, benefit payments are typically paid directly from the Company's cash as they become due. Pension Benefits Other Retiree Benefits As of June 30 2020 2019 2020 2019 CLASSIFICATION OF NET AMOUNT RECOGNIZED Noncurrent assets $ 12 $ 19 $ 1,843 $ 1,257 Current liabilities (66) (52) (30) (27) Noncurrent liabilities (6,223) (5,622) (965) (1,098) NET AMOUNT RECOGNIZED $ (6,277) $ (5,655) $ 848 $ 132 AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) Net actuarial loss $ 5,662 $ 5,062 $ 572 $ 874 Prior service cost/(credit) 198 214 (511) (424) NET AMOUNTS RECOGNIZED IN AOCI $ 5,860 $ 5,276 $ 61 $ 450 The accumulated benefit obligation for all defined benefit pension plans was $16.5 billion and $15.8 billion as of June 30, 2020 and 2019, respectively. Pension plans with accumulated benefit obligations in excess of plan assets and plans with projected benefit obligations in excess of plan assets consisted of the following: Accumulated Benefit Obligation Projected Benefit Obligation As of June 30 2020 2019 2020 2019 Projected benefit obligation $ 12,095 $ 11,604 $ 17,635 $ 16,304 Accumulated benefit obligation 11,196 10,711 16,377 15,096 Fair value of plan assets 5,994 6,026 11,347 10,630 Net Periodic Benefit Cost . Components of the net periodic benefit cost were as follows: Pension Benefits Other Retiree Benefits Years ended June 30 2020 2019 2018 2020 2019 2018 AMOUNTS RECOGNIZED IN NET PERIODIC BENEFIT COST Service cost $ 247 $ 259 $ 280 $ 100 $ 101 $ 112 Interest cost 276 339 348 160 187 177 Expected return on plan assets (740) (732) (751) (473) (447) (451) Amortization of net actuarial loss 340 225 295 68 66 69 Amortization of prior service cost/(credit) 25 26 28 (48) (48) (41) Amortization of net actuarial loss/prior service cost due to settlements and curtailments 7 9 — — — — Special termination benefits 11 13 8 2 8 7 GROSS BENEFIT COST/(CREDIT) 166 139 208 (191) (133) (127) Dividends on ESOP preferred stock — — — (19) (28) (37) NET PERIODIC BENEFIT COST/(CREDIT) $ 166 $ 139 $ 208 $ (210) $ (161) $ (164) CHANGE IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN AOCI Net actuarial loss/(gain) - current year $ 1,027 $ 1,580 $ (207) $ (1,434) Prior service cost/(credit) - current year 3 9 (136) — Amortization of net actuarial loss (340) (225) (68) (66) Amortization of prior service (cost)/credit (25) (26) 48 48 Amortization of net actuarial loss/prior service costs due to settlements and curtailments (7) (9) — — Currency translation and other (74) (84) (26) 14 TOTAL CHANGE IN AOCI 584 1,245 (389) (1,438) NET AMOUNTS RECOGNIZED IN PERIODIC BENEFIT COST AND AOCI $ 750 $ 1,384 $ (599) $ (1,599) The service cost component of the net periodic benefit cost is included in the Consolidated Statements of Earnings in Cost of products sold and SG&A. All other components are included in the Consolidated Statements of Earnings in Other non-operating income/(expense), net, unless otherwise noted. Amounts expected to be amortized from AOCI into net periodic benefit cost during the year ending June 30, 2021, are as follows: Pension Benefits Other Retiree Benefits Net actuarial loss $ 401 $ 47 Prior service cost/(credit) 25 (59) Assumptions . We determine our actuarial assumptions on an annual basis. These assumptions are weighted to reflect each country that may have an impact on the cost of providing retirement benefits. The weighted average assumptions used to determine benefit obligations recorded on the Consolidated Balance Sheets as of June 30, were as follows: (1) Pension Benefits Other Retiree Benefits As of June 30 2020 2019 2020 2019 Discount rate 1.5 % 1.9 % 3.1 % 3.7 % Rate of compensation increase 2.5 % 2.6 % N/A N/A Health care cost trend rates assumed for next year N/A N/A 6.6 % 6.6 % Rate to which the health care cost trend rate is assumed to decline (ultimate trend rate) N/A N/A 4.9 % 4.9 % Year that the rate reaches the ultimate trend rate N/A N/A 2026 2026 (1) Determined as of end of fiscal year. The weighted average assumptions used to determine net benefit cost recorded on the Consolidated Statement of Earnings for the years ended June 30, were as follows: (1) Pension Benefits Other Retiree Benefits Years ended June 30 2020 2019 2018 2020 2019 2018 Discount rate 1.9 % 2.5 % 2.4 % 3.7 % 4.2 % 3.9 % Expected return on plan assets 6.6 % 6.6 % 6.8 % 8.4 % 8.3 % 8.3 % Rate of compensation increase 2.6 % 2.6 % 3.0 % N/A N/A N/A (1) Determined as of beginning of fiscal year. For plans that make up the majority of our obligation, the Company calculates the benefit obligation and the related impacts on service and interest costs using specific spot rates along the corporate bond yield curve. For the remaining plans, the Company determines these amounts utilizing a single weighted average discount rate derived from the corporate bond yield curve used to measure the plan obligations. Several factors are considered in developing the estimate for the long-term expected rate of return on plan assets. For the defined benefit retirement plans, these factors include historical rates of return of broad equity and bond indices and projected long-term rates of return obtained from pension investment consultants. The expected long-term rates of return for plan assets are 8% - 9% for equities and 5% - 6% for bonds. For other retiree benefit plans, the expected long-term rate of return reflects that the assets are comprised primarily of Company stock. The expected rate of return on Company stock is based on the long-term projected return of 8.5% and reflects the historical pattern of returns. Assumed health care cost trend rates could have a significant effect on the amounts reported for the other retiree benefit plans. A one percentage point change in assumed health care cost trend rates would have the following effects: One-Percentage One-Percentage Effect on the total service and interest cost components $ 56 $ (43) Effect on the accumulated postretirement benefit obligation 669 (543) Plan Assets . Our investment objective for defined benefit retirement plan assets is to meet the plans' benefit obligations and to improve plan self-sufficiency for future benefit obligations. The investment strategies focus on asset class diversification, liquidity to meet benefit payments and an appropriate balance of long-term investment return and risk. Target ranges for asset allocations are determined by assessing different investment risks and matching the actuarial projections of the plans' future liabilities and benefit payments with current as well as expected long-term rates of return on the assets, taking into account investment return volatility and correlations across asset classes. Plan assets are diversified across several investment managers and are generally invested in liquid funds that are selected to track broad market equity and bond indices. Investment risk is carefully controlled with plan assets rebalanced to target allocations on a periodic basis and with continual monitoring of investment managers' performance relative to the investment guidelines established with each investment manager. Our target asset allocation for the year ended June 30, 2020, and actual asset allocation by asset category as of June 30, 2020 and 2019, were as follows: Target Asset Allocation Actual Asset Allocation at June 30 Pension Benefits Other Retiree Pension Benefits Other Retiree Benefits Asset Category 2020 2019 2020 2019 Cash — % 2 % 1 % 1 % 3 % 3 % Debt securities 67 % 3 % 66 % 63 % 2 % 2 % Equity securities 33 % 95 % 33 % 36 % 95 % 95 % TOTAL 100 % 100 % 100 % 100 % 100 % 100 % The following table sets forth the fair value of the Company's plan assets as of June 30, 2020 and 2019 segregated by level within the fair value hierarchy (refer to Note 9 for further discussion on the fair value hierarchy and fair value principles). Investments valued using net asset value as a practical expedient are not valued using the fair value hierarchy, but rather valued using the net asset value reported by the managers of the funds and as supported by the unit prices of actual purchase and sale transactions. Pension Benefits Other Retiree Benefits As of June 30 Fair Value Hierarchy Level 2020 2019 Fair Value Hierarchy Level 2020 2019 ASSETS AT FAIR VALUE Cash and cash equivalents 1 $ 61 $ 47 1 $ 121 $ 111 Company common stock — — 1 217 179 Company preferred stock (1) — — 2 5,139 4,657 Fixed income securities (2) 2 1,991 265 2 12 1 Insurance contracts (3) 3 115 113 — — TOTAL ASSETS IN THE FAIR VALUE HIERARCHY 2,167 425 5,489 4,948 Investments valued at net asset value (4) 9,317 10,957 129 148 TOTAL ASSETS AT FAIR VALUE $ 11,484 11,382 $ 5,618 5,096 (1) Company preferred stock is valued based on the value of Company common stock and is presented net of ESOP debt discussed below. (2) Fixed income securities, classified as Level 2, are estimated by using pricing models or quoted prices of securities with similar characteristics. (3) Fair values of insurance contracts are valued based on either their cash equivalent value or models that project future cash flows and discount the future amounts to a present value using market-based observable inputs, including credit risk and interest rate curves. The activity for Level 3 assets is not significant for all years presented. (4) Investments valued using net asset value as a practical expedient are primarily equity and fixed income collective funds. Cash Flows . Management's best estimate of cash requirements and discretionary contributions for the defined benefit retirement plans and other retiree benefit plans for the year ending June 30, 2021, is $197 and $44, respectively. Expected contributions are dependent on many variables, including the variability of the market value of the plan assets as compared to the benefit obligation and other market or regulatory conditions. In addition, we take into consideration our business investment opportunities and resulting cash requirements. Accordingly, actual funding may differ significantly from current estimates. Total benefit payments expected to be paid to participants, which include payments funded from the Company's assets and payments from the plans are as follows: Years ending June 30 Pension Other Retiree EXPECTED BENEFIT PAYMENTS 2021 $ 559 $ 196 2022 534 205 2023 556 214 2024 573 221 2025 608 225 2026 - 2030 3,258 1,199 Employee Stock Ownership Plan We maintain the ESOP to provide funding for certain employee benefits discussed in the preceding paragraphs. The ESOP borrowed $1.0 billion in 1989 and the proceeds were used to purchase Series A ESOP Convertible Class A Preferred Stock to fund a portion of the U.S. DC plan. Principal and interest requirements of the borrowing were paid by the Trust from dividends on the preferred shares and from advances provided by the Company. The original borrowing of $1.0 billion has been repaid in full, and advances from the Company of $33 remain outstanding at June 30, 2020. Each share is convertible at the option of the holder into one share of the Company's common stock. The dividend for the current year was equal to the common stock dividend of $3.03 per share. The liquidation value is $6.82 per share. In 1991, the ESOP borrowed an additional $1.0 billion. The proceeds were used to purchase Series B ESOP Convertible Class A Preferred Stock to fund a portion of retiree health care benefits. These shares, net of the ESOP's debt, are considered plan assets of the other retiree benefits plan discussed above. Debt service requirements are funded by preferred stock dividends, cash contributions and advances provided by the Company, of which $928 are outstanding at June 30, 2020. Each share is convertible at the option of the holder into one share of the Company's common stock. The dividend for the current year was equal to the common stock dividend of $3.03 per share. The liquidation value is $12.96 per share. Our ESOP accounting practices are consistent with current ESOP accounting guidance, including the permissible continuation of certain provisions from prior accounting guidance. ESOP debt, which is guaranteed by the Company, is recorded as debt (see Note 10) with an offset to the Reserve for ESOP debt retirement, which is presented within Shareholders' equity. Advances to the ESOP by the Company are recorded as an increase in the Reserve for ESOP debt retirement. Interest incurred on the ESOP debt is recorded as Interest expense. Dividends on all preferred shares, net of related tax benefits, are charged to Retained earnings. The series A and B preferred shares of the ESOP are allocated to employees based on debt service requirements. The number of preferred shares outstanding at June 30 was as follows: Shares in thousands 2020 2019 2018 Allocated 29,591 31,600 34,233 Unallocated 2,479 3,259 4,117 TOTAL SERIES A 32,070 34,859 38,350 Allocated 27,894 26,790 25,895 Unallocated 24,418 26,471 28,512 TOTAL SERIES B 52,312 53,261 54,407 |
RISK MANAGEMENT ACTIVITIES AND
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS | 12 Months Ended |
Jun. 30, 2020 | |
Disclosure Text Block [Abstract] | |
Risk Management & Fair Value Measurement [Text Block] | RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS As a multinational company with diverse product offerings, we are exposed to market risks, such as changes in interest rates, currency exchange rates and commodity prices. We evaluate exposures on a centralized basis to take advantage of natural exposure correlation and netting. To the extent we choose to manage volatility associated with the net exposures, we enter into various financial transactions that we account for using the applicable accounting guidance for derivative instruments and hedging activities. These financial transactions are governed by our policies covering acceptable counterparty exposure, instrument types and other hedging practices. If the Company elects to do so and if the instrument meets certain specified accounting criteria, management designates derivative instruments as cash flow hedges, fair value hedges or net investment hedges. We record derivative instruments at fair value and the accounting for changes in the fair value depends on the intended use of the derivative, the resulting designation and the effectiveness of the instrument in offsetting the risk exposure it is designed to hedge. We generally have a high degree of effectiveness between the exposure being hedged and the hedging instrument. Credit Risk Management We have counterparty credit guidelines and normally enter into transactions with investment grade financial institutions, to the extent commercially viable. Counterparty exposures are monitored daily and downgrades in counterparty credit ratings are reviewed on a timely basis. We have not incurred, and do not expect to incur, material credit losses on our risk management or other financial instruments. Substantially all of the Company's financial instruments used in hedging transactions are governed by industry standard netting and collateral agreements with counterparties. If the Company's credit rating were to fall below the levels stipulated in the agreements, the counterparties could demand either collateralization or termination of the arrangements. The aggregate fair value of the instruments covered by these contractual features that are in a net liability position as of June 30, 2020, was not material. The Company has not been required to post collateral as a result of these contractual features. Interest Rate Risk Management Our policy is to manage interest cost using a mixture of fixed-rate and variable-rate debt. To manage this risk in a cost-efficient manner, we enter into interest rate swaps whereby we agree to exchange with the counterparty, at specified intervals, the difference between fixed and variable interest amounts calculated by reference to a notional amount. We designate certain interest rate swaps on fixed rate debt that meet specific accounting criteria as fair value hedges. For fair value hedges, the changes in the fair value of both the hedging instruments and the underlying debt obligations are immediately recognized in earnings. Foreign Currency Risk Management We manufacture and sell our products and finance our operations in a number of countries throughout the world. As a result, we are exposed to movements in foreign currency exchange rates. We leverage the Company’s diversified portfolio of exposures as a natural hedge. In certain cases, we enter into non-qualifying foreign currency contracts to hedge certain balance sheet items subject to revaluation. The change in fair value of these instruments and the underlying exposure are both immediately recognized in earnings. To manage exchange rate risk related to our intercompany financing, we primarily use forward contracts and currency swaps. The change in fair value of these non-qualifying instruments is immediately recognized in earnings, substantially offsetting the foreign currency mark-to-market impact of the related exposure. Net Investment Hedging We hedge certain net investment positions in foreign subsidiaries. To accomplish this, we either borrow directly in foreign currencies and designate all or a portion of the foreign currency debt as a hedge of the applicable net investment position or we enter into foreign currency swaps that are designated as hedges of net investments. Changes in the fair value of these instruments are recognized in the Foreign Currency Translation component of OCI and offset the change in the value of the net investment being hedged. The time value component of the net investment hedge currency swaps is excluded from the assessment of hedge effectiveness. Changes in the fair value of the swap, including changes in the fair value of the excluded time value component, are recognized in OCI and offset the value of the underlying net assets. The time value component is subsequently reported in income on a systematic basis. Commodity Risk Management Certain raw materials used in our products or production processes are subject to price volatility caused by weather, supply conditions, political and economic variables and other unpredictable factors. As of and during the years ended June 30, 2020 and 2019, we did not have any financial commodity hedging activity to manage such exposures. Insurance We self-insure for most insurable risks. However, we purchase insurance for Directors and Officers Liability and certain other coverage where it is required by law or by contract. Fair Value Hierarchy Accounting guidance on fair value measurements for certain financial assets and liabilities requires that financial assets and liabilities carried at fair value be classified and disclosed in one of the following categories: • Level 1: Quoted market prices in active markets for identical assets or liabilities. • Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. • Level 3: Unobservable inputs reflecting the reporting entity's own assumptions or external inputs from inactive markets. When applying fair value principles in the valuation of assets and liabilities, we are required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The Company has not changed its valuation techniques used in measuring the fair value of any financial assets or liabilities during the year. Other investments had a fair value of $67 and $169 as of June 30, 2020 and 2019, respectively, and are presented in Other noncurrent assets. During the year ended June 30, 2020, the Company sold all of its existing U.S. government securities and corporate bond securities. Such securities had fair values of $3.6 billion and $2.4 billion, respectively, and were presented in Available-for-sale investment securities at June 30, 2019. The Company's investments measured at fair value are generally classified as Level 2 within the fair value hierarchy. Cash equivalents were $14.6 billion and $3.0 billion as of June 30, 2020 and 2019, respectively and are classified as Level 1 within the fair value hierarchy. There are no other material investment balances classified as Level 1 or Level 3 within the fair value hierarchy, or using net asset value as a practical expedient. Fair values are generally estimated based upon quoted market prices for similar instruments. The fair value of long-term debt was $29.0 billion and $25.4 billion as of June 30, 2020 and 2019, respectively. This includes the current portion of long-term debt instruments ($2.5 billion and $3.4 billion as of June 30, 2020 and 2019, respectively). Certain long-term debt (debt designated as a fair value hedge) is recorded at fair value. All other long-term debt is recorded at amortized cost, but is measured at fair value for disclosure purposes. We consider our debt to be Level 2 in the fair value hierarchy. Fair values are generally estimated based on quoted market prices for identical or similar instruments. Disclosures about Financial Instruments The notional amounts and fair values of financial instruments used in hedging transactions as of June 30, 2020 and 2019 are as follows: Notional Amount Fair Value Asset Fair Value (Liability) As of June 30 2020 2019 2020 2019 2020 2019 DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS Interest rate contracts $ 7,114 $ 7,721 $ 269 $ 177 $ — $ (1) DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS Foreign currency interest rate contracts $ 3,856 $ 3,157 $ 26 $ 35 $ (41) $ (24) TOTAL DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS $ 10,970 $ 10,878 $ 295 $ 212 $ (41) $ (25) DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS Foreign currency contracts $ 5,986 $ 6,431 $ 23 $ 27 $ (25) $ (20) TOTAL DERIVATIVES AT FAIR VALUE $ 16,956 $ 17,309 $ 318 $ 239 $ (66) $ (45) All derivative assets are presented in Prepaid expenses and other current assets or Other noncurrent assets. All derivative liabilities are presented in Accrued and other liabilities or Other noncurrent liabilities. The fair value of the interest rate derivative asset/liability directly offsets the cumulative amount of the fair value hedging adjustment included in the carrying amount of the underlying debt obligation. The carrying amount of the underlying debt obligation, which includes the unamortized discount or premium and the fair value adjustment, was $7.4 billion and $7.9 billion as of June 30, 2020 and 2019, respectively. In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges. The carrying value of those debt instruments designated as net investment hedges, which includes the adjustment for the foreign currency transaction gain or loss on those instruments, was $16.0 billion and $17.2 billion as of June 30, 2020 and 2019, respectively. All of the Company's derivative assets and liabilities are measured at fair value that is derived from observable market data, including interest rate yield curves and foreign exchange rates, and are classified as Level 2 within the fair value hierarchy. The Company recognizes transfers between levels within the fair value hierarchy, if any, at the end of each quarter. There were no transfers between levels during the periods presented. In addition, there was no significant activity within the Level 3 assets and liabilities during the periods presented. Except for the impairment of the Gillette indefinite-lived intangible asset discussed in Note 4, there were no significant assets or liabilities that were re-measured at fair value on a non-recurring basis during the years ended June 30, 2020 and 2019. Before tax gains/(losses) on our financial instruments in hedging relationships are categorized as follows: Amount of Gain/(Loss) Recognized in OCI on Derivatives Years ended June 30 2020 2019 DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS (1) (2) Foreign currency interest rate contracts $ 66 $ 47 (1) For the derivatives in net investment hedging relationships, the amount of gain/(loss) excluded from effectiveness testing, which was recognized in earnings, was $69 and $70 for the fiscal year ended June 30, 2020 and 2019, respectively. (2) In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges. The amount of gain/(loss) recognized in AOCI for such instruments was $189 and $299, as of June 30, 2020 and 2019, respectively. Amount of Gain/(Loss) Recognized in Earnings Years ended June 30 2020 2019 DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS Interest rate contracts $ 93 $ 104 DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS Foreign currency contracts $ (83) $ 54 |
SHORT-TERM AND LONG-TERM DEBT
SHORT-TERM AND LONG-TERM DEBT | 12 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt Disclosure | SHORT-TERM AND LONG-TERM DEBT As of June 30 2020 2019 DEBT DUE WITHIN ONE YEAR Current portion of long-term debt $ 2,508 $ 3,388 Commercial paper 8,545 6,183 Other 130 126 TOTAL $ 11,183 $ 9,697 Short-term weighted average interest rates (1) 0.7 % 0.5 % (1) Short-term weighted average interest rates include the effects of interest rate swaps discussed in Note 9. As of June 30 2020 2019 LONG-TERM DEBT 1.90% USD note due October 2020 $ 600 $ 600 4.13% EUR note due December 2020 674 682 9.36% ESOP debentures due 2020-2021 (1) 119 228 1.85% USD note due February 2021 600 600 1.70% USD note due November 2021 875 875 2.00% EUR note due November 2021 843 852 2.30% USD note due February 2022 1,000 1,000 2.15% USD note due August 2022 1,250 1,250 2.00% EUR note due August 2022 1,124 1,137 3.10% USD note due August 2023 1,000 1,000 1.13% EUR note due November 2023 1,405 1,421 0.50% EUR note due October 2024 562 568 0.63% EUR note due October 2024 899 909 2.45% USD note due March 2025 750 — 2.70% USD note due February 2026 600 600 2.45% USD note due November 2026 875 875 2.80% USD note due March 2027 500 — 4.88% EUR note due May 2027 1,124 1,137 2.85% USD note due August 2027 750 750 1.20% EUR note due October 2028 899 909 1.25% EUR note due October 2029 562 568 3.00% USD note due March 2030 1,500 — 5.55% USD note due March 2037 763 763 1.88% EUR note due October 2038 562 568 3.55% USD note due March 2040 1,000 — 3.50% USD note due October 2047 600 600 3.60% USD note due March 2050 1,250 — Finance lease obligations — 33 All other long-term debt 3,359 5,858 Current portion of long-term debt (2,508) (3,388) TOTAL $ 23,537 $ 20,395 Long-term weighted average interest rates (2) 2.3 % 2.4 % (1) Debt issued by the ESOP is guaranteed by the Company and is recorded as debt of the Company, as discussed in Note 8. (2) Long-term weighted average interest rates include the effects of interest rate swaps discussed in Note 9. Long-term debt maturities during the next five fiscal years are as follows: Years ending June 30 2021 2022 2023 2024 2025 Debt maturities $2,508 $2,830 $2,425 $2,481 $2,743 The Procter & Gamble Company fully and unconditionally guarantees the registered debt and securities issued by its 100% owned finance subsidiaries. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income/(Loss) [Text Block] | ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) The table below presents the changes in Accumulated other comprehensive income/(loss) attributable to Procter & Gamble (AOCI), including the reclassifications out of AOCI by component: Changes in Accumulated Other Comprehensive Income/(Loss) by Component Investment Securities Post-retirement Benefits Foreign Currency Translation Total AOCI BALANCE at JUNE 30, 2018 $ (173) $ (4,058) $ (10,518) $ (14,749) OCI before reclassifications (1) 167 (43) (213) (89) Amounts reclassified from AOCI into the Consolidated Statement of Earnings (2) 17 212 — 229 Net current period OCI 184 169 (213) 140 Reclassification to retained earnings in accordance with ASU 2018-02 (3) — (308) (18) (326) Less: Other comprehensive income/(loss) attributable to non-controlling interests — 1 — 1 BALANCE at JUNE 30, 2019 11 (4,198) (10,749) (14,936) OCI before reclassifications (4) (10) (453) (1,083) (1,546) Amounts reclassified from AOCI into the Consolidated Statement of Earnings (5) (2) 303 — 301 Net current period OCI (12) (150) (1,083) (1,245) Less: Other comprehensive income/(loss) attributable to non-controlling interests — 2 (18) (16) BALANCE at JUNE 30, 2020 $ (1) $ (4,350) $ (11,814) $ (16,165) (1) Net of tax benefit)/expense of $0, $(44) and $78 for gains/losses on investment securities, postretirement benefit items and foreign currency translation, respectively, for the period ended June 30, 2019. (2) Net of tax (benefit)/expense of $0, $66 and $0 for gains/losses on investment securities, postretirement benefit items and foreign currency translation, respectively, for the period ended June 30, 2019. (3) Adjustment made to early adopt ASU 2018-02: "Reclassification of Certain Effects from Accumulated Other Comprehensive Income." (4) Net of tax (benefit)/expense of $(1) , $(131) and $59 for gains/losses on investment securities, postretirement benefit items and foreign currency translation, respectively, for the period ended June 30, 2020. (5) Net of tax (benefit)/expense of $0, $89 and $0 for gains/losses on investment securities, postretirement benefit items and foreign currency translation, respectively, for the period ended June 30, 2020. The below provides additional details on amounts reclassified from AOCI into the Consolidated Statement of Earnings: • Investment securities: amounts reclassified from AOCI into Other non-operating income, net. • Postretirement benefits: amounts reclassified from AOCI into Other non-operating income, net and included in the computation of net periodic postretirement costs (see Note 8 for additional details). |
LEASES
LEASES | 12 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Lessee, Operating Leases | LEASES The Company determines whether a contract contains a lease at the inception of a contract by determining if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. We lease certain real estate, machinery, equipment, vehicles and office equipment for varying periods. Many of these leases include an option to either renew or terminate the lease. For purposes of calculating lease liabilities, these options are included within the lease term when it has become reasonably certain that the Company will exercise such options. The incremental borrowing rate utilized to calculate our lease liabilities is based on the information available at commencement date, as most of the leases do not provide an implicit borrowing rate. Our operating lease agreements do not contain any material guarantees or restrictive covenants. The Company does not have any material finance leases or sublease activities. The Company incurred lease expense for operating leases of $347, $341 and $340 during the years ended June 30, 2020, 2019 and 2018, respectively. Total cash paid for amounts included in the measurement of lease liabilities during the year ended June 30, 2020 was $271. Short-term leases, defined as leases with initial terms of 12 months or less, are not reflected on the Consolidated Balance Sheets. Lease expense for such short-term leases is not material. The most significant assets in our leasing portfolio relate to real estate and vehicles. For purposes of calculating lease liabilities for such leases, we have combined lease and non-lease components. The right-of-use assets obtained in exchange for new lease liabilities were $126 for the year ended June 30, 2020. Supplemental balance sheet and other information related to leases is as follows: June 30, 2020 Operating leases: Other noncurrent assets $ 850 Accrued and other liabilities 239 Other noncurrent liabilities 652 Total operating lease liabilities $ 891 Weighted average remaining lease term: Operating leases 6.5 years Weighted average discount rate: Operating leases 4.3 % At June 30, 2020, future payments of operating lease liabilities were as follows: Operating Leases June 30, 2020 1 year $ 239 2 years 191 3 years 161 4 years 134 5 years 86 Over 5 years 212 Total lease payments 1,023 Less: Interest (132) Present value of lease liabilities $ 891 As of June 30, 2019, minimum lease payments under non-cancelable operating leases by fiscal year were expected to be: Operating Leases June 30, 2019 2020 $ 263 2021 209 2022 165 2023 141 2024 121 After 2024 244 Total lease payments $ 1,143 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | COMMITMENTS AND CONTINGENCIES Guarantees In conjunction with certain transactions, primarily divestitures, we may provide routine indemnifications (e.g., indemnification for representations and warranties and retention of previously existing environmental, tax and employee liabilities) for which terms range in duration and, in some circumstances, are not explicitly defined. The maximum obligation under some indemnifications is also not explicitly stated and, as a result, the overall amount of these obligations cannot be reasonably estimated. Other than obligations recorded as liabilities at the time of divestiture, we have not made significant payments for these indemnifications. We believe that if we were to incur a loss on any of these matters, the loss would not have a material effect on our financial position, results of operations or cash flows. In certain situations, we guarantee loans for suppliers and customers. The total amount of guarantees issued under such arrangements is not material. Off-Balance Sheet Arrangements We do not have off-balance sheet financing arrangements, including variable interest entities, that have a material impact on our financial statements. Purchase Commitments We have purchase commitments for materials, supplies, services and property, plant and equipment as part of the normal course of business. Commitments made under take-or-pay obligations are as follows: Years ending June 30 2021 2022 2023 2024 2025 There-after Purchase obligations $ 782 $ 257 $ 155 $ 92 $ 53 $ 238 Such amounts represent minimum commitments under take-or-pay agreements with suppliers and are in line with expected usage. These amounts include purchase commitments related to service contracts for information technology, human resources management and facilities management activities that have been outsourced to third- party suppliers. Due to the proprietary nature of many of our materials and processes, certain supply contracts contain penalty provisions for early termination. We do not expect to incur penalty payments under these provisions that would materially affect our financial position, results of operations or cash flows. Litigation We are subject, from time to time, to certain legal proceedings and claims arising out of our business, which cover a wide range of matters, including antitrust and trade regulation, product liability, advertising, contracts, environmental, patent and trademark matters, labor and employment matters and tax. While considerable uncertainty exists, in the opinion of management and our counsel, the ultimate resolution of the various lawsuits and claims will not materially affect our financial position, results of operations or cash flows. We are also subject to contingencies pursuant to environmental laws and regulations that in the future may require us to take action to correct the effects on the environment of prior manufacturing and waste disposal practices. Based on currently available information, we do not believe the ultimate resolution of environmental remediation will materially affect our financial position, results of operations or cash flows. |
ACQUISITION ACQUISITION
ACQUISITION ACQUISITION | 12 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | On November 30, 2018, we completed our acquisition of the OTC healthcare business of Merck OTC for $3.7 billion (based on exchange rates at the time of closing) in an all-cash transaction. This business primarily sells OTC consumer healthcare products, mainly in Europe, Latin America and Asia markets. The results of Merck OTC, which are not material to the Company, are reported in our consolidated financial statements beginning December 1, 2018. During the quarter ended December 31, 2019, we completed the allocation of the purchase price to the individual assets acquired and liabilities assumed. The allocation is based on the final determination of fair values of the assets and liabilities acquired. The following table presents the allocation of purchase price related to the Merck OTC business as of the date of the acquisition: Amounts in millions November 30, 2018 Current assets $ 421 Property, plant and equipment 119 Intangible assets 2,134 Goodwill 2,083 Other non-current assets 209 Total Assets Acquired $ 4,966 Current liabilities $ 232 Deferred income taxes 763 Non-current liabilities 94 Total Liabilities Acquired $ 1,089 Noncontrolling Interest (1) $ 169 Net Assets Acquired $ 3,708 (1) Represents a 48% minority ownership interest in the Merck India company. The acquisition resulted in $2.1 billion in goodwill, of which approximately $180 million was expected to be deductible for tax purposes as of the acquisition date. All of this goodwill was allocated to the Health Care Segment. The purchase price allocation to Merck OTC's identifiable intangible assets and their average useful lives is as follows: Amounts in millions Fair Value Average Intangible Assets with Determinable Lives Brands $ 701 14 Patents and technology 162 10 Customer relationships 325 20 Total $ 1,188 15 Intangible Assets with Indefinite Lives Brands 946 Total Intangible Assets $ 2,134 |
QUARTERLY RESULTS (UNAUDITED)
QUARTERLY RESULTS (UNAUDITED) | 12 Months Ended |
Jun. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | QUARTERLY RESULTS (UNAUDITED) Quarters Ended Sep 30 Dec 31 Mar 31 Jun 30 Total Year NET SALES 2019-2020 $ 17,798 $ 18,240 $ 17,214 $ 17,698 $ 70,950 2018-2019 16,690 17,438 16,462 17,094 67,684 OPERATING INCOME 2019-2020 4,290 4,482 3,453 3,481 15,706 2018-2019 3,554 3,896 3,229 (5,192) 5,487 GROSS MARGIN 2019-2020 51.0 % 51.4 % 49.4 % 49.5 % 50.3 % 2018-2019 49.2 % 48.9 % 48.8 % 47.7 % 48.6 % NET EARNINGS/(LOSS): Net earnings/(loss) 2019-2020 3,617 3,743 2,957 2,786 13,103 2018-2019 3,211 3,216 2,776 (5,237) 3,966 Net earnings/(loss) attributable to Procter & Gamble 2019-2020 3,593 3,717 2,917 2,800 13,027 2018-2019 3,199 3,194 2,745 (5,241) 3,897 DILUTED NET EARNINGS/(LOSS) PER COMMON SHARE (1) (2) 2019-2020 $ 1.36 $ 1.41 $ 1.12 $ 1.07 $ 4.96 2018-2019 1.22 1.22 1.04 (2.12) 1.43 (1) Diluted net earnings/(loss) per share is calculated on Net earnings/(loss) attributable to Procter & Gamble. (2) Diluted net earnings/(loss) per share in each quarter is computed using the weighted average number of shares outstanding during that quarter while Diluted net earnings/(loss) per share for the full year is computed using the weighted average number of shares outstanding during the year. In the quarter ended June 30, 2019, the Company reported a Net loss attributable to P&G, driven by the Shave Care impairment charges discussed in Note 4. This caused certain of our equity instruments to be antidilutive for the full year (preferred shares) and for the quarter ended June 30, 2019 (preferred shares and equity awards). Because these securities were dilutive during the first three quarters of this fiscal year, the sum of the four quarters' Diluted net earnings/(loss) per share will not equal the full-year Diluted net earnings per common share. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations The Procter & Gamble Company's (the "Company," "Procter & Gamble," "we" or "us") business is focused on providing branded consumer packaged goods of superior quality and value. Our products are sold in more than 180 countries and territories primarily through mass merchandisers, e-commerce, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, baby stores, specialty beauty stores (including airport duty-free stores), high-frequency stores, pharmacies, electronics stores and professional channels. We have on-the-ground operations in approximately 70 countries. |
Basis of Presentation | Basis of Presentation The Consolidated Financial Statements include the Company and its controlled subsidiaries. Intercompany transactions are eliminated. Because of a lack of control over Venezuelan subsidiaries caused by a number of currency and other operating controls and restrictions, our Venezuelan subsidiaries are not consolidated for any year presented. We account for those subsidiaries at cost, less impairments, plus or minus observable price changes. |
Use of Estimates | Use of Estimates Preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying disclosures. These estimates are based on management's best knowledge of current events and actions the Company may undertake in the future. Estimates are used in accounting for, among other items, consumer and trade promotion accruals, restructuring reserves, pensions, post-employment benefits, stock options, valuation of acquired intangible assets, useful lives for depreciation and amortization of long-lived assets, future cash flows associated with impairment testing for goodwill, indefinite-lived intangible assets and other long-lived assets, deferred tax assets and liabilities, uncertain income tax positions and contingencies. Actual results may ultimately differ from estimates, although management does not generally believe such differences would materially affect the financial statements in any individual year. However, in regard to ongoing impairment testing of goodwill and indefinite-lived intangible assets, significant deterioration in future cash flow projections or other assumptions used in estimating fair values versus those anticipated at the time of the initial valuations, could result in impairment charges that materially affect the financial statements in a given year. |
Revenue Recognition | Revenue Recognition Our revenue is primarily generated from the sale of finished product to customers. Those sales predominantly contain a single performance obligation and revenue is recognized at a single point in time when ownership, risks and rewards transfer, which can be on the date of shipment or the date of receipt by the customer. A provision for payment discounts and product return allowances is recorded as a reduction of sales in the same period the revenue is recognized. The revenue recorded is presented net of sales and other taxes we collect on behalf of governmental authorities. The revenue includes shipping and handling costs, which generally are included in the list price to the customer. Trade promotions, consisting primarily of customer pricing allowances, merchandising funds and consumer coupons, are offered through various programs to customers and consumers. Sales are recorded net of trade promotion spending, which is recognized as incurred at the time of the sale. Most of these arrangements have terms of approximately one year. Accruals for expected payouts under these programs are included as accrued marketing and promotion in the Accrued and other liabilities line item in the Consolidated Balance Sheets. |
Cost of Products Sold | Cost of Products Sold Cost of products sold is primarily comprised of direct materials and supplies consumed in the manufacturing of product, as well as manufacturing labor, depreciation expense and direct overhead expenses necessary to acquire and convert the purchased materials and supplies into finished products. Cost of products sold also includes the cost to distribute products to customers, inbound freight costs, internal transfer costs, warehousing costs and other shipping and handling activity. |
Selling, General and Administrative Expense | Selling, General and Administrative Expense Selling, general and administrative expense (SG&A) is primarily comprised of marketing expenses, selling expenses, research and development costs, administrative and other indirect overhead costs, depreciation and amortization expense on non-manufacturing assets and other miscellaneous operating items. Research and development costs are charged to expense as incurred and were $1.8 billion in 2020, $1.9 billion in 2019 and $1.9 billion in 2018. Advertising costs, charged to expense as incurred, include worldwide television, print, radio, internet and in-store advertising expenses and were $7.3 billion in 2020, $6.8 billion in 2019 and $7.1 billion in 2018. Non-advertising related components of the Company's total marketing spending reported in SG&A include costs associated with consumer promotions, product sampling and sales aids. |
Other Non-Operating Income/(Expense), Net | Other Non-Operating Income, Net Other non-operating income, net primarily includes net acquisition and divestiture gains, net non-service costs related to defined benefit plans, investment income and other non-operating items. |
Currency Translation | Currency Translation Financial statements of operating subsidiaries outside the U.S. generally are measured using the local currency as the functional currency. Adjustments to translate those |
Cash Flow Presentation | Cash Flow PresentationThe Consolidated Statements of Cash Flows are prepared using the indirect method, which reconciles net earnings to cash flows from operating activities. Cash flows from foreign currency transactions and operations are translated at monthly exchange rates for each period. Cash flows from hedging activities are included in the same category as the items being hedged. Cash flows from derivative instruments designated as net investment hedges are classified as financing activities. Realized gains and losses from non-qualifying derivative instruments used to hedge currency exposures resulting from intercompany financing transactions are also classified as financing activities. Cash flows from other derivative instruments used to manage interest rates, commodity or other currency exposures are classified as operating activities. Cash payments related to income taxes are classified as operating activities. |
Investments | Investments Investment securities have primarily consisted of readily marketable debt securities. Unrealized gains or losses from debt securities classified as trading, if any, are charged to earnings. Unrealized gains or losses on debt securities classified as available-for-sale are recorded in OCI. If an available-for-sale security is other than temporarily impaired, the loss is charged to either earnings or OCI depending on our intent and ability to retain the security until we recover the full cost basis and the extent of the loss attributable to the creditworthiness of the issuer. Debt securities are included as Available-for-sale investment securities and Other noncurrent assets in the Consolidated Balance Sheets. In addition to debt securities, we hold minor equity investments in certain companies over which we exert significant influence, but do not control the financial and operating decisions. These are accounted for as equity method investments. Other equity investments that are not controlled, and over which we do not have the ability to exercise significant influence, and for which there is a readily determinable market value, are recorded at fair value, with gains and losses recorded through net earnings. Equity investments without readily determinable fair values are measured at cost, less impairments, plus or minus observable price changes. Equity investments are included as Other noncurrent assets in the Consolidated Balance Sheets. |
Inventory Valuation | Inventory Valuation Inventories are valued at the lower of cost or net realizable value. Product-related inventories are maintained on the first-in, first-out method. The cost of spare part inventories is maintained using the average-cost method. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is recorded at cost reduced by accumulated depreciation. Depreciation expense is recognized over the assets' estimated useful lives using the straight-line method. Machinery and equipment includes office furniture and fixtures (15-year life), computer equipment and capitalized software (3- to 5-year lives) and manufacturing equipment (3- to 20-year lives). Buildings are depreciated over an estimated useful life of 40 years. Estimated useful lives are periodically reviewed and, when appropriate, changes are made prospectively. When certain events or changes in operating conditions occur, asset lives may be adjusted and an impairment assessment may be performed on the recoverability of the carrying amounts. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and indefinite-lived intangible assets are not amortized, but are evaluated for impairment annually or more often if indicators of a potential impairment are present. Our annual impairment testing of goodwill is performed separately from our impairment testing of indefinite-lived intangible assets. We have acquired brands that have been determined to have indefinite lives. We evaluate a number of factors to determine whether an indefinite life is appropriate, including the competitive environment, market share, brand history, underlying product life cycles, operating plans and the macroeconomic environment of the countries in which the brands are sold. In addition, when certain events or changes in operating conditions occur, an additional impairment assessment is performed and indefinite-lived assets may be adjusted to a determinable life. The cost of intangible assets with determinable useful lives is amortized to reflect the pattern of economic benefits consumed, either on a straight-line or accelerated basis over the estimated periods benefited. Patents, technology and other intangible assets with contractual terms are generally amortized over their respective legal or contractual lives. Customer relationships, brands and other non-contractual intangible assets with determinable lives are amortized over periods generally ranging from 5 to 30 years. When certain events or changes in operating conditions occur, an impairment assessment is performed and remaining lives of intangible assets with determinable lives may be adjusted. For additional details on goodwill and intangible assets see Note 4. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments Certain financial instruments are required to be recorded at fair value. Changes in assumptions or estimation methods could affect the fair value estimates; however, we do not believe any such changes would have a material impact on our financial condition, results of operations or cash flows. Other financial instruments, including cash equivalents, certain investments and short-term debt, are recorded at cost, which approximates fair value. The fair values of long-term debt and financial instruments are disclosed in Note 9. |
New Accounting Pronouncements and Policies | New Accounting Pronouncements and Policies On July 1, 2019, we adopted ASU 2016-02, "Leases (Topic 842)." The new accounting standard requires the recognition of right-of-use assets and lease liabilities for all long-term leases, including operating leases, on the balance sheet. We elected the optional transition method and adopted the new guidance on a modified retrospective basis with no restatement of prior period amounts. As allowed under the new accounting standard, we elected to apply practical expedients to carry forward the original lease determinations, lease classifications and accounting of initial direct costs for all asset classes at the time of adoption. The adoption did not have a material impact on our financial statements, resulting in an increase of approximately 1% to each of our total assets and total liabilities on our balance sheet as of July 1, 2019. See Note 12 for further information. In January 2017, the FASB issued ASU 2017-04, "Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The standard simplifies the accounting for goodwill impairment by requiring a goodwill impairment to be measured using a single step impairment model, whereby the impairment equals the difference between the carrying amount and the estimated fair value of the specified reporting units in their entirety. This eliminates the second step of the current impairment model that requires companies to first estimate the fair value of all assets in a reporting unit and measure impairments based on those estimated fair values and a residual measurement approach. The new standard also specifies that any loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. We will adopt the standard effective July 1, 2020. The impact of the new standard will be dependent on the specific facts and circumstances of future individual impairments, if any. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." The amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. We are currently evaluating our contracts and the optional expedients provided by the new standard. No other new accounting pronouncements issued or effective during the fiscal year or in future years had, or are expected to have, a material impact on our Consolidated Financial Statements. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | 5% or more of consolidated net sales are as follows: % of Net sales by operating segment (1) Years ended June 30 2020 2019 2018 Fabric Care 22% 22% 22% Baby Care 11% 12% 13% Home Care 11% 10% 10% Skin and Personal Care 10% 10% 9% Hair Care 9% 10% 10% Family Care 9% 9% 8% Oral Care 8% 8% 8% Shave Care 7% 8% 8% Feminine Care 6% 6% 6% Personal Health Care 5% 4% 4% All Other 2% 1% 2% TOTAL 100% 100% 100% (1) % of Net sales by operating segment excludes sales held in Corporate. Global Segment Results Net Sales Earnings/(Loss) Net Earnings/(Loss) Depreciation Total Capital BEAUTY 2020 $ 13,359 $ 3,437 $ 2,737 $ 320 $ 5,531 $ 397 2019 12,897 3,282 2,637 272 5,362 634 2018 12,406 3,042 2,320 236 4,709 766 GROOMING 2020 6,069 1,613 1,329 406 20,589 305 2019 6,199 1,777 1,529 429 20,882 367 2018 6,551 1,801 1,432 447 22,609 364 HEALTH CARE 2020 9,028 2,156 1,652 350 7,726 338 2019 8,218 1,984 1,519 294 7,708 363 2018 7,857 1,922 1,283 230 5,254 330 FABRIC & HOME CARE 2020 23,735 5,426 4,154 605 7,745 887 2019 22,080 4,601 3,518 557 7,620 984 2018 21,441 4,191 2,708 534 7,295 1,020 BABY, FEMININE & FAMILY CARE 2020 18,364 4,534 3,465 839 8,628 764 2019 17,806 3,593 2,734 861 9,271 819 2018 18,080 3,527 2,251 899 9,682 1,016 CORPORATE (1) 2020 395 (1,332) (234) 493 70,481 382 2019 484 (9,168) (7,971) 411 64,252 180 2018 497 (1,157) (133) 488 68,761 221 TOTAL COMPANY 2020 $ 70,950 $ 15,834 $ 13,103 $ 3,013 $ 120,700 $ 3,073 2019 67,684 6,069 3,966 2,824 115,095 3,347 2018 66,832 13,326 9,861 2,834 118,310 3,717 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Net sales and long-lived assets in the United States and internationally were as follows (in billions): Years ended June 30 2020 2019 2018 NET SALES United States $ 31.3 $ 28.6 $ 27.3 International $ 39.7 $ 39.1 $ 39.5 LONG-LIVED ASSETS (1) United States $ 9.9 $ 10.0 $ 9.7 International $ 10.8 $ 11.3 $ 10.9 |
SUPPLEMENTAL FINANCIAL INFORM_2
SUPPLEMENTAL FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Disclosure Text Block [Abstract] | |
Property, Plant and Equipment [Table Text Block] | The components of property, plant and equipment were as follows: As of June 30 2020 2019 PROPERTY, PLANT AND EQUIPMENT Buildings $ 7,700 $ 7,746 Machinery and equipment 33,260 32,263 Land 777 805 Construction in progress 2,034 2,579 TOTAL PROPERTY, PLANT AND EQUIPMENT 43,771 43,393 Accumulated depreciation (23,079) (22,122) PROPERTY, PLANT AND EQUIPMENT, NET $ 20,692 $ 21,271 |
Other Liabilities [Table Text Block] | Selected components of current and noncurrent liabilities were as follows: As of June 30 2020 2019 ACCRUED AND OTHER LIABILITIES - CURRENT Marketing and promotion $ 3,531 $ 4,299 Compensation expenses 1,921 1,623 Restructuring reserves 472 468 Taxes payable 693 341 Other 3,105 2,323 TOTAL $ 9,722 $ 9,054 OTHER NONCURRENT LIABILITIES Pension benefits $ 6,223 $ 5,622 Other postretirement benefits 965 1,098 U.S. Tax Act transitional tax payable 2,121 2,343 Uncertain tax positions 580 472 Long term operating leases 652 — Other 569 676 TOTAL $ 11,110 $ 10,211 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table presents restructuring activity for the years ended June 30, 2020 and 2019: Separations Asset-Related Costs Other Total RESERVE JUNE 30, 2018 $ 259 $ — $ 254 $ 513 Charges 260 252 242 754 Cash spent (239) — (308) (547) Charges against assets — (252) — (252) RESERVE JUNE 30, 2019 280 — 188 468 Charges 221 372 189 782 Cash spent (216) — (190) (406) Charges against assets — (372) — (372) RESERVE JUNE 30, 2020 $ 285 $ — $ 187 $ 472 |
Restructuring and Related Costs [Table Text Block] | However, for information purposes, the following table summarizes the total restructuring costs related to our reportable segments: Years ended June 30 2020 2019 2018 Beauty $ 54 $ 49 $ 60 Grooming 102 65 38 Health Care 136 23 21 Fabric & Home Care 75 84 115 Baby, Feminine & Family Care 192 226 547 Corporate (1) 223 307 289 Total Company $ 782 $ 754 $ 1,070 (1) Corporate includes costs related to allocated overheads, including charges related to our Enterprise Markets, Global Business Services and Corporate Functions activities. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The change in the net carrying amount of goodwill by reportable segment was as follows: Beauty Grooming Health Care Fabric & Home Care Baby, Feminine & Family Care Corporate Total Company BALANCE AT JUNE 30, 2018 - NET (1) $ 12,992 $ 19,820 $ 5,929 $ 1,865 $ 4,569 $ — $ 45,175 Acquisitions and divestitures 132 — 2,084 6 57 — 2,279 Goodwill impairment charges — (6,783) — — — — (6,783) Translation and other (139) (156) (41) (16) (46) — (398) BALANCE AT JUNE 30, 2019 - NET (1) 12,985 12,881 7,972 1,855 4,580 — 40,273 Acquisitions and divestitures (1) — (46) — 5 — (42) Translation and other (82) (66) (140) (14) (28) — (330) BALANCE AT JUNE 30, 2020 - NET (1) $ 12,902 $ 12,815 $ 7,786 $ 1,841 $ 4,557 $ — $ 39,901 |
Intangible Assets Disclosure [Text Block] | Identifiable intangible assets were comprised of: 2020 2019 As of June 30 Gross Accumulated Gross Accumulated INTANGIBLE ASSETS WITH DETERMINABLE LIVES Brands $ 3,820 $ (2,347) $ 3,836 $ (2,160) Patents and technology 2,776 (2,513) 2,776 (2,434) Customer relationships 1,752 (778) 1,787 (691) Other 143 (92) 145 (91) TOTAL $ 8,491 $ (5,730) $ 8,544 $ (5,376) INTANGIBLE ASSETS WITH INDEFINITE LIVES Brands 21,031 — 21,047 — TOTAL $ 29,522 $ (5,730) $ 29,591 $ (5,376) |
Schedule of Amortization Expense [Table Text Block] | Amortization expense of intangible assets was as follows: Years ended June 30 2020 2019 2018 Intangible asset amortization $ 360 $ 349 $ 302 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated amortization expense over the next five fiscal years is as follows: Years ending June 30 2021 2022 2023 2024 2025 Estimated amortization expense $ 310 $ 291 $ 280 $ 268 $ 250 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Earnings before income taxes consisted of the following: Years ended June 30 2020 2019 2018 United States $ 10,338 $ 1,659 $ 9,277 International 5,496 4,410 4,049 TOTAL $ 15,834 $ 6,069 $ 13,326 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income taxes consisted of the following: Years ended June 30 2020 2019 2018 CURRENT TAX EXPENSE U.S. federal $ 1,266 $ 1,064 $ 3,965 International 1,769 1,259 1,131 U.S. state and local 292 191 213 3,327 2,514 5,309 DEFERRED TAX EXPENSE/(BENEFIT) U.S. federal 39 (296) (1,989) International and other (635) (115) 145 (596) (411) (1,844) TOTAL TAX EXPENSE $ 2,731 $ 2,103 $ 3,465 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of the U.S. federal statutory income tax rate to our actual effective income tax rate is provided below: Years ended June 30 2020 2019 2018 U.S. federal statutory income tax rate 21.0 % 21.0 % 28.1 % Country mix impacts of foreign operations (0.1) % (0.5) % (4.7) % State income taxes, net of federal benefit 1.4 % 2.6 % 1.4 % Excess tax benefits from the exercise of stock options (1.6) % (3.8) % (0.4) % Tax benefit from simplification of legal entity structure (1.4) % — % — % Foreign derived intangible income deduction (FDII) (1.0) % (2.2) % — % Changes in uncertain tax positions 0.1 % (0.3) % (0.3) % Goodwill impairment — % 22.8 % — % Net transitional impact of U.S. Tax Act — % — % 4.5 % Other (1.2) % (4.9) % (2.6) % EFFECTIVE INCOME TAX RATE 17.2 % 34.7 % 26.0 % |
Summary of Income Tax Contingencies [Table Text Block] | A reconciliation of the beginning and ending liability for uncertain tax positions is as follows: Years ended June 30 2020 2019 2018 BEGINNING OF YEAR $ 466 $ 470 $ 465 Increases in tax positions for prior years 60 85 26 Decreases in tax positions for prior years (21) (94) (38) Increases in tax positions for current year 82 71 87 Settlements with taxing authorities (83) (37) (45) Lapse in statute of limitations (12) (27) (20) Currency translation (7) (2) (5) END OF YEAR $ 485 $ 466 $ 470 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred income tax assets and liabilities were comprised of the following: As of June 30 2020 2019 DEFERRED TAX ASSETS Pension and postretirement benefits $ 1,602 $ 1,591 Loss and other carryforwards 875 1,007 Stock-based compensation 398 421 Accrued marketing and promotion 353 334 Fixed assets 218 232 Lease liabilities 190 — Unrealized loss on financial and foreign exchange transactions 64 73 Inventory 27 41 Accrued interest and taxes 20 15 Other 829 931 Valuation allowances (486) (442) TOTAL $ 4,090 $ 4,203 DEFERRED TAX LIABILITIES Goodwill and intangible assets $ 5,775 $ 6,506 Fixed assets 1,485 1,413 Lease right-of-use assets 185 — Unrealized gain on financial and foreign exchange transactions 169 147 Foreign withholding tax on earnings to be repatriated 118 239 Other 366 351 TOTAL $ 8,098 $ 8,656 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Net earnings per share were calculated as follows: Years ended June 30 2020 2019 2018 CONSOLIDATED AMOUNTS Net earnings $ 13,103 $ 3,966 $ 9,861 Less: Net earnings attributable to noncontrolling interests 76 69 111 Net earnings attributable to P&G 13,027 3,897 9,750 Less: Preferred dividends, net of tax 263 263 265 Net earnings attributable to P&G available to common shareholders (Basic) $ 12,764 $ 3,634 $ 9,485 Net earnings attributable to P&G available to common shareholders (Diluted) $ 13,027 $ 3,634 $ 9,750 SHARES IN MILLIONS Basic weighted average common shares outstanding 2,487.1 2,503.6 2,529.3 Add: Effect of dilutive securities Impact of stock options and other unvested equity awards (1) 52.7 35.9 32.5 Conversion of preferred shares (2) 86.0 — 94.9 Diluted weighted average common shares outstanding 2,625.8 2,539.5 2,656.7 NET EARNINGS PER SHARE (3) Basic $ 5.13 $ 1.45 $ 3.75 Diluted $ 4.96 $ 1.43 $ 3.67 (1) Weighted average outstanding stock options of approximately 6 million in 2020, 13 million in 2019 and 48 million in 2018 were not included in the Diluted net earnings per share calculation because the options were out of the money or to do so would have been antidilutive (i.e., the assumed proceeds upon exercise would have exceeded the market value of the underlying common shares). (2) Despite being included in Diluted net earnings per common share, the actual conversion to common stock occurs when the preferred shares are sold. Shares may only be sold after being allocated to the ESOP participants pursuant to the repayment of the ESOP's obligations through 2035. In fiscal year 2019, weighted average outstanding preferred shares of 90 million were not included in the Diluted net earnings per share calculation because to do so would have been antidilutive, due to lower Net earnings driven by the Shave Care impairment charges (see Note 4). (3) Net earnings per share are calculated on Net earnings attributable to Procter & Gamble. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Activity [Table Text Block] | Total expense and related tax benefit were as follows: Years ended June 30 2020 2019 2018 Stock options $ 249 $ 246 $ 220 RSUs and PSUs 309 269 175 Total stock-based expense $ 558 $ 515 $ 395 Income tax benefit $ 97 $ 101 $ 87 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | Assumptions utilized in the model, which are evaluated and revised to reflect market conditions and experience, were as follows: Years ended June 30 2020 2019 2018 Interest rate 1.1 - 1.4 % 2.5 - 2.7 % 1.9 - 2.9 % Weighted average interest rate 1.3 % 2.6 % 2.8 % Dividend yield 2.4 % 3.0 % 3.1 % Expected volatility 17 % 17 % 18 % Expected life in years 9.2 9.2 9.2 The following table provides additional information on stock options: Years ended June 30 2020 2019 2018 Weighted average grant-date fair value of options granted $ 15.60 $ 13.60 $ 11.89 Intrinsic value of options exercised 1,455 1,770 500 Grant-date fair value of options that vested 217 180 209 Cash received from options exercised 2,019 3,381 1,245 Actual tax benefit from options exercised 298 221 127 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | A summary of options outstanding under the plans as of June 30, 2020 and activity during the year then ended is presented below: Options Options (in thousands) Weighted Average Exercise Price Weighted Average Contract-ual Life in Years Aggregate Intrinsic Value Outstanding, beginning of year 164,741 $ 79.59 Granted 14,277 115.01 Exercised (28,722) 70.34 Forfeited/expired (424) 83.23 OUTSTANDING, END OF YEAR 149,872 $ 84.71 5.5 $ 5,241 EXERCISABLE 102,702 $ 79.54 4.2 $ 4,111 |
Schedule of Nonvested Share Activity [Table Text Block] | A summary of non-vested RSUs and PSUs outstanding under the plans as of June 30, 2020 and activity during the year then ended is presented below: RSUs PSUs RSU and PSU awards Units (in thousands) Weighted Average Grant Date Fair Value Units (in thousands) Weighted Average Grant Date Fair Value Non-vested at July 1, 2019 5,493 $ 84.00 1,295 $ 92.98 Granted 1,516 114.44 562 123.52 Vested (2,376) 88.61 (799) 79.64 Forfeited (135) 84.61 (10) 94.94 Non-vested at June 30, 2020 4,498 $ 92.15 1,048 $ 117.02 |
POSTRETIREMENT BENEFITS AND E_2
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block] | The following provides a reconciliation of benefit obligations, plan assets and funded status of these defined benefit plans: Pension Benefits (1) Other Retiree Benefits (2) Years ended June 30 2020 2019 2020 2019 CHANGE IN BENEFIT OBLIGATION Benefit obligation at beginning of year (3) $ 17,037 $ 15,658 $ 4,964 $ 4,778 Service cost 247 259 100 101 Interest cost 276 339 160 187 Participants' contributions 11 12 74 76 Amendments 3 9 (136) — Net actuarial loss/(gain) 951 1,587 (85) 37 Acquisitions — 49 — — Special termination benefits 11 13 2 8 Currency translation and other (218) (283) (64) 20 Benefit payments (557) (606) (245) (243) BENEFIT OBLIGATION AT END OF YEAR (3) $ 17,761 $ 17,037 $ 4,770 $ 4,964 CHANGE IN PLAN ASSETS Fair value of plan assets at beginning of year $ 11,382 $ 11,267 $ 5,096 $ 3,259 Actual return on plan assets 664 739 595 1,918 Acquisitions — 4 — — Employer contributions 180 178 33 31 Participants' contributions 11 12 74 76 Currency translation and other (196) (212) 2 (1) ESOP debt impacts (4) — — 63 56 Benefit payments (557) (606) (245) (243) FAIR VALUE OF PLAN ASSETS AT END OF YEAR $ 11,484 $ 11,382 $ 5,618 $ 5,096 FUNDED STATUS $ (6,277) $ (5,655) $ 848 $ 132 (1) Primarily non-U.S.-based defined benefit retirement plans. (2) Primarily U.S.-based other postretirement benefit plans. (3) For the pension benefit plans, the benefit obligation is the projected benefit obligation. For other retiree benefit plans, the benefit obligation is the accumulated postretirement benefit obligation. (4) Represents the net impact of ESOP debt service requirements, which is netted against plan assets for other retiree benefits. |
Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | The underfunding of pension benefits is primarily a function of the different funding incentives that exist outside of the U.S. In certain countries, there are no legal requirements or financial incentives provided to companies to pre-fund pension obligations prior to their due date. In these instances, benefit payments are typically paid directly from the Company's cash as they become due. Pension Benefits Other Retiree Benefits As of June 30 2020 2019 2020 2019 CLASSIFICATION OF NET AMOUNT RECOGNIZED Noncurrent assets $ 12 $ 19 $ 1,843 $ 1,257 Current liabilities (66) (52) (30) (27) Noncurrent liabilities (6,223) (5,622) (965) (1,098) NET AMOUNT RECOGNIZED $ (6,277) $ (5,655) $ 848 $ 132 AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) Net actuarial loss $ 5,662 $ 5,062 $ 572 $ 874 Prior service cost/(credit) 198 214 (511) (424) NET AMOUNTS RECOGNIZED IN AOCI $ 5,860 $ 5,276 $ 61 $ 450 |
Schedule of Accumulated and Projected Benefit Obligations [Table Text Block] | Pension plans with accumulated benefit obligations in excess of plan assets and plans with projected benefit obligations in excess of plan assets consisted of the following: Accumulated Benefit Obligation Projected Benefit Obligation As of June 30 2020 2019 2020 2019 Projected benefit obligation $ 12,095 $ 11,604 $ 17,635 $ 16,304 Accumulated benefit obligation 11,196 10,711 16,377 15,096 Fair value of plan assets 5,994 6,026 11,347 10,630 |
Schedule of Net Benefit Costs [Table Text Block] | Components of the net periodic benefit cost were as follows: Pension Benefits Other Retiree Benefits Years ended June 30 2020 2019 2018 2020 2019 2018 AMOUNTS RECOGNIZED IN NET PERIODIC BENEFIT COST Service cost $ 247 $ 259 $ 280 $ 100 $ 101 $ 112 Interest cost 276 339 348 160 187 177 Expected return on plan assets (740) (732) (751) (473) (447) (451) Amortization of net actuarial loss 340 225 295 68 66 69 Amortization of prior service cost/(credit) 25 26 28 (48) (48) (41) Amortization of net actuarial loss/prior service cost due to settlements and curtailments 7 9 — — — — Special termination benefits 11 13 8 2 8 7 GROSS BENEFIT COST/(CREDIT) 166 139 208 (191) (133) (127) Dividends on ESOP preferred stock — — — (19) (28) (37) NET PERIODIC BENEFIT COST/(CREDIT) $ 166 $ 139 $ 208 $ (210) $ (161) $ (164) CHANGE IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN AOCI Net actuarial loss/(gain) - current year $ 1,027 $ 1,580 $ (207) $ (1,434) Prior service cost/(credit) - current year 3 9 (136) — Amortization of net actuarial loss (340) (225) (68) (66) Amortization of prior service (cost)/credit (25) (26) 48 48 Amortization of net actuarial loss/prior service costs due to settlements and curtailments (7) (9) — — Currency translation and other (74) (84) (26) 14 TOTAL CHANGE IN AOCI 584 1,245 (389) (1,438) NET AMOUNTS RECOGNIZED IN PERIODIC BENEFIT COST AND AOCI $ 750 $ 1,384 $ (599) $ (1,599) |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year [Table Text Block] | Amounts expected to be amortized from AOCI into net periodic benefit cost during the year ending June 30, 2021, are as follows: Pension Benefits Other Retiree Benefits Net actuarial loss $ 401 $ 47 Prior service cost/(credit) 25 (59) |
Defined Benefit Plan, Assumptions [Table Text Block] | The weighted average assumptions used to determine benefit obligations recorded on the Consolidated Balance Sheets as of June 30, were as follows: (1) Pension Benefits Other Retiree Benefits As of June 30 2020 2019 2020 2019 Discount rate 1.5 % 1.9 % 3.1 % 3.7 % Rate of compensation increase 2.5 % 2.6 % N/A N/A Health care cost trend rates assumed for next year N/A N/A 6.6 % 6.6 % Rate to which the health care cost trend rate is assumed to decline (ultimate trend rate) N/A N/A 4.9 % 4.9 % Year that the rate reaches the ultimate trend rate N/A N/A 2026 2026 (1) Determined as of end of fiscal year. The weighted average assumptions used to determine net benefit cost recorded on the Consolidated Statement of Earnings for the years ended June 30, were as follows: (1) Pension Benefits Other Retiree Benefits Years ended June 30 2020 2019 2018 2020 2019 2018 Discount rate 1.9 % 2.5 % 2.4 % 3.7 % 4.2 % 3.9 % Expected return on plan assets 6.6 % 6.6 % 6.8 % 8.4 % 8.3 % 8.3 % Rate of compensation increase 2.6 % 2.6 % 3.0 % N/A N/A N/A (1) Determined as of beginning of fiscal year. |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block] | A one percentage point change in assumed health care cost trend rates would have the following effects: One-Percentage One-Percentage Effect on the total service and interest cost components $ 56 $ (43) Effect on the accumulated postretirement benefit obligation 669 (543) |
Schedule of Allocation of Plan Assets [Table Text Block] | Our target asset allocation for the year ended June 30, 2020, and actual asset allocation by asset category as of June 30, 2020 and 2019, were as follows: Target Asset Allocation Actual Asset Allocation at June 30 Pension Benefits Other Retiree Pension Benefits Other Retiree Benefits Asset Category 2020 2019 2020 2019 Cash — % 2 % 1 % 1 % 3 % 3 % Debt securities 67 % 3 % 66 % 63 % 2 % 2 % Equity securities 33 % 95 % 33 % 36 % 95 % 95 % TOTAL 100 % 100 % 100 % 100 % 100 % 100 % |
Pension and Postretirement Plan Assets By Fair Value Hierarchy [Table Text Block] | Investments valued using net asset value as a practical expedient are not valued using the fair value hierarchy, but rather valued using the net asset value reported by the managers of the funds and as supported by the unit prices of actual purchase and sale transactions. Pension Benefits Other Retiree Benefits As of June 30 Fair Value Hierarchy Level 2020 2019 Fair Value Hierarchy Level 2020 2019 ASSETS AT FAIR VALUE Cash and cash equivalents 1 $ 61 $ 47 1 $ 121 $ 111 Company common stock — — 1 217 179 Company preferred stock (1) — — 2 5,139 4,657 Fixed income securities (2) 2 1,991 265 2 12 1 Insurance contracts (3) 3 115 113 — — TOTAL ASSETS IN THE FAIR VALUE HIERARCHY 2,167 425 5,489 4,948 Investments valued at net asset value (4) 9,317 10,957 129 148 TOTAL ASSETS AT FAIR VALUE $ 11,484 11,382 $ 5,618 5,096 (1) Company preferred stock is valued based on the value of Company common stock and is presented net of ESOP debt discussed below. (2) Fixed income securities, classified as Level 2, are estimated by using pricing models or quoted prices of securities with similar characteristics. (3) Fair values of insurance contracts are valued based on either their cash equivalent value or models that project future cash flows and discount the future amounts to a present value using market-based observable inputs, including credit risk and interest rate curves. The activity for Level 3 assets is not significant for all years presented. |
Schedule of Expected Benefit Payments [Table Text Block] | Total benefit payments expected to be paid to participants, which include payments funded from the Company's assets and payments from the plans are as follows: Years ending June 30 Pension Other Retiree EXPECTED BENEFIT PAYMENTS 2021 $ 559 $ 196 2022 534 205 2023 556 214 2024 573 221 2025 608 225 2026 - 2030 3,258 1,199 |
Employee Stock Ownership Plan (ESOP) Disclosures [Table Text Block] | The number of preferred shares outstanding at June 30 was as follows: Shares in thousands 2020 2019 2018 Allocated 29,591 31,600 34,233 Unallocated 2,479 3,259 4,117 TOTAL SERIES A 32,070 34,859 38,350 Allocated 27,894 26,790 25,895 Unallocated 24,418 26,471 28,512 TOTAL SERIES B 52,312 53,261 54,407 |
RISK MANAGEMENT ACTIVITIES AN_2
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - NOTIONAL AMOUNTS AND FAIR VALUES OF QUALIFYING AND NON-QUALIFYING FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments [Table Text Block] | The notional amounts and fair values of financial instruments used in hedging transactions as of June 30, 2020 and 2019 are as follows: Notional Amount Fair Value Asset Fair Value (Liability) As of June 30 2020 2019 2020 2019 2020 2019 DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS Interest rate contracts $ 7,114 $ 7,721 $ 269 $ 177 $ — $ (1) DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS Foreign currency interest rate contracts $ 3,856 $ 3,157 $ 26 $ 35 $ (41) $ (24) TOTAL DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS $ 10,970 $ 10,878 $ 295 $ 212 $ (41) $ (25) DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS Foreign currency contracts $ 5,986 $ 6,431 $ 23 $ 27 $ (25) $ (20) TOTAL DERIVATIVES AT FAIR VALUE $ 16,956 $ 17,309 $ 318 $ 239 $ (66) $ (45) |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Before tax gains/(losses) on our financial instruments in hedging relationships are categorized as follows: Amount of Gain/(Loss) Recognized in OCI on Derivatives Years ended June 30 2020 2019 DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS (1) (2) Foreign currency interest rate contracts $ 66 $ 47 (1) For the derivatives in net investment hedging relationships, the amount of gain/(loss) excluded from effectiveness testing, which was recognized in earnings, was $69 and $70 for the fiscal year ended June 30, 2020 and 2019, respectively. (2) In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges. The amount of gain/(loss) recognized in AOCI for such instruments was $189 and $299, as of June 30, 2020 and 2019, respectively. |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Amount of Gain/(Loss) Recognized in Earnings Years ended June 30 2020 2019 DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS Interest rate contracts $ 93 $ 104 DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS Foreign currency contracts $ (83) $ 54 |
SHORT-TERM AND LONG-TERM DEBT (
SHORT-TERM AND LONG-TERM DEBT (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Maturities of Long-term Debt [Table Text Block] | Long-term debt maturities during the next five fiscal years are as follows: Years ending June 30 2021 2022 2023 2024 2025 Debt maturities $2,508 $2,830 $2,425 $2,481 $2,743 |
Schedule of Short-term Debt | SHORT-TERM AND LONG-TERM DEBT As of June 30 2020 2019 DEBT DUE WITHIN ONE YEAR Current portion of long-term debt $ 2,508 $ 3,388 Commercial paper 8,545 6,183 Other 130 126 TOTAL $ 11,183 $ 9,697 Short-term weighted average interest rates (1) 0.7 % 0.5 % (1) Short-term weighted average interest rates include the effects of interest rate swaps discussed in Note 9. |
Schedule of Long-term Debt Instruments | As of June 30 2020 2019 LONG-TERM DEBT 1.90% USD note due October 2020 $ 600 $ 600 4.13% EUR note due December 2020 674 682 9.36% ESOP debentures due 2020-2021 (1) 119 228 1.85% USD note due February 2021 600 600 1.70% USD note due November 2021 875 875 2.00% EUR note due November 2021 843 852 2.30% USD note due February 2022 1,000 1,000 2.15% USD note due August 2022 1,250 1,250 2.00% EUR note due August 2022 1,124 1,137 3.10% USD note due August 2023 1,000 1,000 1.13% EUR note due November 2023 1,405 1,421 0.50% EUR note due October 2024 562 568 0.63% EUR note due October 2024 899 909 2.45% USD note due March 2025 750 — 2.70% USD note due February 2026 600 600 2.45% USD note due November 2026 875 875 2.80% USD note due March 2027 500 — 4.88% EUR note due May 2027 1,124 1,137 2.85% USD note due August 2027 750 750 1.20% EUR note due October 2028 899 909 1.25% EUR note due October 2029 562 568 3.00% USD note due March 2030 1,500 — 5.55% USD note due March 2037 763 763 1.88% EUR note due October 2038 562 568 3.55% USD note due March 2040 1,000 — 3.50% USD note due October 2047 600 600 3.60% USD note due March 2050 1,250 — Finance lease obligations — 33 All other long-term debt 3,359 5,858 Current portion of long-term debt (2,508) (3,388) TOTAL $ 23,537 $ 20,395 Long-term weighted average interest rates (2) 2.3 % 2.4 % (1) Debt issued by the ESOP is guaranteed by the Company and is recorded as debt of the Company, as discussed in Note 8. (2) Long-term weighted average interest rates include the effects of interest rate swaps discussed in Note 9. |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The table below presents the changes in Accumulated other comprehensive income/(loss) attributable to Procter & Gamble (AOCI), including the reclassifications out of AOCI by component: Changes in Accumulated Other Comprehensive Income/(Loss) by Component Investment Securities Post-retirement Benefits Foreign Currency Translation Total AOCI BALANCE at JUNE 30, 2018 $ (173) $ (4,058) $ (10,518) $ (14,749) OCI before reclassifications (1) 167 (43) (213) (89) Amounts reclassified from AOCI into the Consolidated Statement of Earnings (2) 17 212 — 229 Net current period OCI 184 169 (213) 140 Reclassification to retained earnings in accordance with ASU 2018-02 (3) — (308) (18) (326) Less: Other comprehensive income/(loss) attributable to non-controlling interests — 1 — 1 BALANCE at JUNE 30, 2019 11 (4,198) (10,749) (14,936) OCI before reclassifications (4) (10) (453) (1,083) (1,546) Amounts reclassified from AOCI into the Consolidated Statement of Earnings (5) (2) 303 — 301 Net current period OCI (12) (150) (1,083) (1,245) Less: Other comprehensive income/(loss) attributable to non-controlling interests — 2 (18) (16) BALANCE at JUNE 30, 2020 $ (1) $ (4,350) $ (11,814) $ (16,165) (1) Net of tax benefit)/expense of $0, $(44) and $78 for gains/losses on investment securities, postretirement benefit items and foreign currency translation, respectively, for the period ended June 30, 2019. (2) Net of tax (benefit)/expense of $0, $66 and $0 for gains/losses on investment securities, postretirement benefit items and foreign currency translation, respectively, for the period ended June 30, 2019. (3) Adjustment made to early adopt ASU 2018-02: "Reclassification of Certain Effects from Accumulated Other Comprehensive Income." (4) Net of tax (benefit)/expense of $(1) , $(131) and $59 for gains/losses on investment securities, postretirement benefit items and foreign currency translation, respectively, for the period ended June 30, 2020. (5) Net of tax (benefit)/expense of $0, $89 and $0 for gains/losses on investment securities, postretirement benefit items and foreign currency translation, respectively, for the period ended June 30, 2020. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
asset and liabilities, lessee | Supplemental balance sheet and other information related to leases is as follows: June 30, 2020 Operating leases: Other noncurrent assets $ 850 Accrued and other liabilities 239 Other noncurrent liabilities 652 Total operating lease liabilities $ 891 Weighted average remaining lease term: Operating leases 6.5 years Weighted average discount rate: Operating leases 4.3 % |
Lessee, Operating Lease, Liability, Maturity | At June 30, 2020, future payments of operating lease liabilities were as follows: Operating Leases June 30, 2020 1 year $ 239 2 years 191 3 years 161 4 years 134 5 years 86 Over 5 years 212 Total lease payments 1,023 Less: Interest (132) Present value of lease liabilities $ 891 As of June 30, 2019, minimum lease payments under non-cancelable operating leases by fiscal year were expected to be: Operating Leases June 30, 2019 2020 $ 263 2021 209 2022 165 2023 141 2024 121 After 2024 244 Total lease payments $ 1,143 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Unrecorded Unconditional Purchase Obligations Disclosure [Table Text Block] | Commitments made under take-or-pay obligations are as follows: Years ending June 30 2021 2022 2023 2024 2025 There-after Purchase obligations $ 782 $ 257 $ 155 $ 92 $ 53 $ 238 |
ACQUISITION ACQUISITION - ALLOC
ACQUISITION ACQUISITION - ALLOCATION OF PURCHASE PRICE (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Amounts in millions November 30, 2018 Current assets $ 421 Property, plant and equipment 119 Intangible assets 2,134 Goodwill 2,083 Other non-current assets 209 Total Assets Acquired $ 4,966 Current liabilities $ 232 Deferred income taxes 763 Non-current liabilities 94 Total Liabilities Acquired $ 1,089 Noncontrolling Interest (1) $ 169 Net Assets Acquired $ 3,708 (1) Represents a 48% minority ownership interest in the Merck India company. |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The purchase price allocation to Merck OTC's identifiable intangible assets and their average useful lives is as follows: Amounts in millions Fair Value Average Intangible Assets with Determinable Lives Brands $ 701 14 Patents and technology 162 10 Customer relationships 325 20 Total $ 1,188 15 Intangible Assets with Indefinite Lives Brands 946 Total Intangible Assets $ 2,134 |
QUARTERLY RESULTS (UNAUDITED) (
QUARTERLY RESULTS (UNAUDITED) (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | Quarters Ended Sep 30 Dec 31 Mar 31 Jun 30 Total Year NET SALES 2019-2020 $ 17,798 $ 18,240 $ 17,214 $ 17,698 $ 70,950 2018-2019 16,690 17,438 16,462 17,094 67,684 OPERATING INCOME 2019-2020 4,290 4,482 3,453 3,481 15,706 2018-2019 3,554 3,896 3,229 (5,192) 5,487 GROSS MARGIN 2019-2020 51.0 % 51.4 % 49.4 % 49.5 % 50.3 % 2018-2019 49.2 % 48.9 % 48.8 % 47.7 % 48.6 % NET EARNINGS/(LOSS): Net earnings/(loss) 2019-2020 3,617 3,743 2,957 2,786 13,103 2018-2019 3,211 3,216 2,776 (5,237) 3,966 Net earnings/(loss) attributable to Procter & Gamble 2019-2020 3,593 3,717 2,917 2,800 13,027 2018-2019 3,199 3,194 2,745 (5,241) 3,897 DILUTED NET EARNINGS/(LOSS) PER COMMON SHARE (1) (2) 2019-2020 $ 1.36 $ 1.41 $ 1.12 $ 1.07 $ 4.96 2018-2019 1.22 1.22 1.04 (2.12) 1.43 (1) Diluted net earnings/(loss) per share is calculated on Net earnings/(loss) attributable to Procter & Gamble. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ADDITIONAL INFORMATION (Details) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020USD ($)countries | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | |
Number of Countries in which Entity Operates | countries | 180 | ||
Number of Countries With On The Ground Operations | countries | 70 | ||
Research and Development Expense | $ 1,800 | $ 1,900 | $ 1,900 |
Advertising Expense | $ 7,300 | 6,800 | $ 7,100 |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (553) | ||
Customer Relationships, Brands, and Other Non-Contractual Intangible Assets [Member] | Minimum | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Customer Relationships, Brands, and Other Non-Contractual Intangible Assets [Member] | Maximum | |||
Finite-Lived Intangible Asset, Useful Life | 30 years | ||
Furniture and Fixtures | |||
Property, Plant and Equipment, Useful Life | 15 years | ||
Computer Equipment | Minimum | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Computer Equipment | Maximum | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Machinery and Equipment | Minimum | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Machinery and Equipment | Maximum | |||
Property, Plant and Equipment, Useful Life | 20 years | ||
Buildings | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Leasing Arrangement [Member] | |||
New Accounting Pronouncement Change in Accounting Principle, Effect of Adoption, Quantification | 1.00% |
SEGMENT INFORMATION - ADDITIONA
SEGMENT INFORMATION - ADDITIONAL INFORMATION (Details) - segment | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Number of Reportable Segments | 5 | ||
Wal-Mart Stores Inc and Affiliates | |||
Percentage Of Total Revenues By Customer | 15.00% | 15.00% | 15.00% |
SEGMENT INFORMATION - PERCENT O
SEGMENT INFORMATION - PERCENT OF SALES BY BUSINESS UNIT (Details) | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | [1] | 100.00% | 100.00% | 100.00% |
Fabric Care | ||||
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | [1] | 22.00% | 22.00% | 22.00% |
Baby Care | ||||
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | [1] | 11.00% | 12.00% | 13.00% |
Home Care | ||||
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | [1] | 11.00% | 10.00% | 10.00% |
Skin and Personal Care | ||||
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | [1] | 10.00% | 10.00% | 9.00% |
Hair Care | ||||
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | [1] | 9.00% | 10.00% | 10.00% |
Family Care | ||||
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | [1] | 9.00% | 9.00% | 8.00% |
Oral Care | ||||
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | [1] | 8.00% | 8.00% | 8.00% |
Shave Care | ||||
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | [1] | 7.00% | 8.00% | 8.00% |
Feminine Care | ||||
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | [1] | 6.00% | 6.00% | 6.00% |
All Other | ||||
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | [1] | 2.00% | 1.00% | 2.00% |
Personal Health Care | ||||
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | [1] | 5.00% | 4.00% | 4.00% |
[1] | % of Net sales by operating segment excludes sales held in Corporate. |
SEGMENT INFORMATION SEGMENT INF
SEGMENT INFORMATION SEGMENT INFORMATION - US AND INTERNATIONAL SALES AND ASSETS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Net Sales | $ 17,698 | $ 17,214 | $ 18,240 | $ 17,798 | $ 17,094 | $ 16,462 | $ 17,438 | $ 16,690 | $ 70,950 | $ 67,684 | $ 66,832 | |
Property, Plant and Equipment, Net | 20,692 | 21,271 | 20,692 | 21,271 | ||||||||
UNITED STATES | ||||||||||||
Net Sales | 31,300 | 28,600 | 27,300 | |||||||||
Property, Plant and Equipment, Net | [1] | 9,900 | 10,000 | 9,900 | 10,000 | 9,700 | ||||||
Non-US [Member] | ||||||||||||
Net Sales | 39,700 | 39,100 | 39,500 | |||||||||
Property, Plant and Equipment, Net | [1] | $ 10,800 | $ 11,300 | $ 10,800 | $ 11,300 | $ 10,900 | ||||||
[1] | Long-lived assets consists of property, plant and equipment. |
SEGMENT INFORMATION - GLOBAL SE
SEGMENT INFORMATION - GLOBAL SEGMENT RESULTS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Goodwill and Indefinite-lived Intangibles Impairment Charges Including Disc Ops | $ 0 | $ 8,345 | $ 0 | |||||||||
Net Sales | $ 17,698 | $ 17,214 | $ 18,240 | $ 17,798 | $ 17,094 | $ 16,462 | $ 17,438 | $ 16,690 | 70,950 | 67,684 | 66,832 | |
Earnings/(Loss) from Continuing Operations Before Income Taxes | 15,834 | 6,069 | 13,326 | |||||||||
Net Earnings from Continuing Operations | 13,103 | 3,966 | 9,861 | |||||||||
Depreciation, Depletion and Amortization | 3,013 | 2,824 | 2,834 | |||||||||
Assets | 120,700 | 115,095 | 120,700 | 115,095 | 118,310 | |||||||
Payments to Acquire Property, Plant, and Equipment | 3,073 | 3,347 | 3,717 | |||||||||
Goodwill and Indefinite-lived Intangibles Impairment Charges Including Disc Ops After Tax | 8,000 | |||||||||||
Beauty | ||||||||||||
Net Sales | 13,359 | 12,897 | 12,406 | |||||||||
Earnings/(Loss) from Continuing Operations Before Income Taxes | 3,437 | 3,282 | 3,042 | |||||||||
Net Earnings from Continuing Operations | 2,737 | 2,637 | 2,320 | |||||||||
Depreciation, Depletion and Amortization | 320 | 272 | 236 | |||||||||
Assets | 5,531 | 5,362 | 5,531 | 5,362 | 4,709 | |||||||
Payments to Acquire Property, Plant, and Equipment | 397 | 634 | 766 | |||||||||
Grooming | ||||||||||||
Net Sales | 6,069 | 6,199 | 6,551 | |||||||||
Earnings/(Loss) from Continuing Operations Before Income Taxes | 1,613 | 1,777 | 1,801 | |||||||||
Net Earnings from Continuing Operations | 1,329 | 1,529 | 1,432 | |||||||||
Depreciation, Depletion and Amortization | 406 | 429 | 447 | |||||||||
Assets | 20,589 | 20,882 | 20,589 | 20,882 | 22,609 | |||||||
Payments to Acquire Property, Plant, and Equipment | 305 | 367 | 364 | |||||||||
Health Care | ||||||||||||
Net Sales | 9,028 | 8,218 | 7,857 | |||||||||
Earnings/(Loss) from Continuing Operations Before Income Taxes | 2,156 | 1,984 | 1,922 | |||||||||
Net Earnings from Continuing Operations | 1,652 | 1,519 | 1,283 | |||||||||
Depreciation, Depletion and Amortization | 350 | 294 | 230 | |||||||||
Assets | 7,726 | 7,708 | 7,726 | 7,708 | 5,254 | |||||||
Payments to Acquire Property, Plant, and Equipment | 338 | 363 | 330 | |||||||||
Fabric & Home Care | ||||||||||||
Net Sales | 23,735 | 22,080 | 21,441 | |||||||||
Earnings/(Loss) from Continuing Operations Before Income Taxes | 5,426 | 4,601 | 4,191 | |||||||||
Net Earnings from Continuing Operations | 4,154 | 3,518 | 2,708 | |||||||||
Depreciation, Depletion and Amortization | 605 | 557 | 534 | |||||||||
Assets | 7,745 | 7,620 | 7,745 | 7,620 | 7,295 | |||||||
Payments to Acquire Property, Plant, and Equipment | 887 | 984 | 1,020 | |||||||||
Baby, Feminine & Family Care | ||||||||||||
Net Sales | 18,364 | 17,806 | 18,080 | |||||||||
Earnings/(Loss) from Continuing Operations Before Income Taxes | 4,534 | 3,593 | 3,527 | |||||||||
Net Earnings from Continuing Operations | 3,465 | 2,734 | 2,251 | |||||||||
Depreciation, Depletion and Amortization | 839 | 861 | 899 | |||||||||
Assets | 8,628 | 9,271 | 8,628 | 9,271 | 9,682 | |||||||
Payments to Acquire Property, Plant, and Equipment | 764 | 819 | 1,016 | |||||||||
Corporate | ||||||||||||
Net Sales | [1] | 395 | 484 | 497 | ||||||||
Earnings/(Loss) from Continuing Operations Before Income Taxes | [1] | (1,332) | (9,168) | (1,157) | ||||||||
Net Earnings from Continuing Operations | [1] | (234) | (7,971) | (133) | ||||||||
Depreciation, Depletion and Amortization | [1] | 493 | 411 | 488 | ||||||||
Assets | [1] | $ 70,481 | $ 64,252 | 70,481 | 64,252 | 68,761 | ||||||
Payments to Acquire Property, Plant, and Equipment | [1] | $ 382 | $ 180 | $ 221 | ||||||||
[1] | The Corporate reportable segment includes the $8.3 billion non-cash before-tax ($8.0 billion after-tax) goodwill and intangible asset impairment charge in fiscal 2019. For additional details on goodwill and intangible assets see Note 4. |
SEGMENT INFORMATION Parenthetic
SEGMENT INFORMATION Parenthetical (Details) | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Wal-Mart Stores Inc and Affiliates | |||
Percentage Of Total Revenues By Customer | 15.00% | 15.00% | 15.00% |
SUPPLEMENTAL FINANCIAL INFORM_3
SUPPLEMENTAL FINANCIAL INFORMATION - PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
PROPERTY, PLANT AND EQUIPMENT | ||
Total Property, Plant and Equipment | $ 43,771 | $ 43,393 |
Accumulated Depreciation | 23,079 | 22,122 |
Property, Plant and Equipment, Net | 20,692 | 21,271 |
Buildings | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Total Property, Plant and Equipment | 7,700 | 7,746 |
Machinery and Equipment | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Total Property, Plant and Equipment | 33,260 | 32,263 |
Land | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Total Property, Plant and Equipment | 777 | 805 |
Construction in Progress | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Total Property, Plant and Equipment | $ 2,034 | $ 2,579 |
SUPPLEMENTAL FINANCIAL INFORM_4
SUPPLEMENTAL FINANCIAL INFORMATION - ACCRUED AND OTHER LIABILITIES (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
ACCRUED AND OTHER LIABILITIES - CURRENT | ||
Marketing and Promotion | $ 3,531 | $ 4,299 |
Compensation Expenses | 1,921 | 1,623 |
Restructuring Reserves | 472 | 468 |
Taxes Payable | 693 | 341 |
Other Liabilities | 3,105 | 2,323 |
Accrued Liabilities, Current | 9,722 | 9,054 |
OTHER NONCURRENT LIABILITIES | ||
Pension Benefits | 6,223 | 5,622 |
Other Postretirement Benefits | 965 | 1,098 |
U.S. Tax Act Transitional Tax Payable | 2,121 | 2,343 |
Uncertain Tax Positions | 580 | 472 |
Liabilities, Noncurrent | 569 | 676 |
Other Liabilities, Noncurrent | 11,110 | 10,211 |
Other Noncurrent Liabilities | ||
OTHER NONCURRENT LIABILITIES | ||
Operating Lease, Liability, Noncurrent | $ 652 | $ 0 |
SUPPLEMENTAL FINANCIAL INFORM_5
SUPPLEMENTAL FINANCIAL INFORMATION - ADDITIONAL INFORMATION (Details) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020USD ($)employees | Jun. 30, 2019USD ($)employees | Jun. 30, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 782 | $ 754 | $ 1,070 |
Severance Packages | employees | 1,200 | 1,810 | |
Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 155 | $ 213 | |
Cost of Goods Sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 614 | 521 | |
Other Nonoperating Income (Expense) [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 13 | $ 20 | |
Minimum | |||
Restructuring Cost and Reserve [Line Items] | |||
Historical Restructuring Costs Before Tax | 250 | ||
Maximum | |||
Restructuring Cost and Reserve [Line Items] | |||
Historical Restructuring Costs Before Tax | $ 500 |
SUPPLEMENTAL FINANCIAL INFORM_6
SUPPLEMENTAL FINANCIAL INFORMATION - RESTRUCTURING ACTIVITY (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve Beginning Balance | $ 468 | $ 513 | |
Restructuring Charges | 782 | 754 | $ 1,070 |
Payments for Restructuring | (406) | (547) | |
Charges Against Assets | (372) | (252) | |
Restructuring Reserve Ending Balance | 472 | 468 | 513 |
Separations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve Beginning Balance | 280 | 259 | |
Restructuring Charges | 221 | 260 | |
Payments for Restructuring | (216) | (239) | |
Charges Against Assets | 0 | 0 | |
Restructuring Reserve Ending Balance | 285 | 280 | 259 |
Asset-Related Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve Beginning Balance | 0 | 0 | |
Restructuring Charges | 372 | 252 | |
Payments for Restructuring | 0 | 0 | |
Charges Against Assets | (372) | (252) | |
Restructuring Reserve Ending Balance | 0 | 0 | 0 |
Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve Beginning Balance | 188 | 254 | |
Restructuring Charges | 189 | 242 | |
Payments for Restructuring | (190) | (308) | |
Charges Against Assets | 0 | 0 | |
Restructuring Reserve Ending Balance | $ 187 | $ 188 | $ 254 |
SUPPLEMENTAL FINANCIAL INFORM_7
SUPPLEMENTAL FINANCIAL INFORMATION - OTHER COSTS (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 782 | $ 754 | $ 1,070 | |
Beauty | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 54 | 49 | 60 | |
Grooming | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 102 | 65 | 38 | |
Health Care | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 136 | 23 | 21 | |
Fabric & Home Care | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 75 | 84 | 115 | |
Baby, Feminine & Family Care | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 192 | 226 | 547 | |
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | [1] | $ 223 | $ 307 | $ 289 |
[1] | Corporate includes costs related to allocated overheads, including charges related to our Enterprise Markets, Global Business Services and Corporate Functions activities. |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - GOODWILL BY GLOBAL BUSINESS UNIT (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Goodwill [Line Items] | ||||
Goodwill Acquisitions and Divestitures | $ (42) | $ 2,279 | ||
Goodwill, Impairment Loss | (6,783) | |||
Goodwill, Translation and Purchase Accounting Adjustments | (330) | (398) | ||
Goodwill | 39,901 | 40,273 | $ 45,175 | |
Beauty | ||||
Goodwill [Line Items] | ||||
Goodwill Acquisitions and Divestitures | (1) | 132 | ||
Goodwill, Impairment Loss | 0 | |||
Goodwill, Translation and Purchase Accounting Adjustments | (82) | (139) | ||
Goodwill | 12,902 | 12,985 | 12,992 | |
Grooming | ||||
Goodwill [Line Items] | ||||
Goodwill Acquisitions and Divestitures | 0 | 0 | ||
Goodwill, Impairment Loss | (6,783) | |||
Goodwill, Translation and Purchase Accounting Adjustments | (66) | (156) | ||
Goodwill | [1] | 12,815 | 12,881 | 19,820 |
Health Care | ||||
Goodwill [Line Items] | ||||
Goodwill Acquisitions and Divestitures | (46) | 2,084 | ||
Goodwill, Impairment Loss | 0 | |||
Goodwill, Translation and Purchase Accounting Adjustments | (140) | (41) | ||
Goodwill | 7,786 | 7,972 | 5,929 | |
Fabric & Home Care | ||||
Goodwill [Line Items] | ||||
Goodwill Acquisitions and Divestitures | 0 | 6 | ||
Goodwill, Impairment Loss | 0 | |||
Goodwill, Translation and Purchase Accounting Adjustments | (14) | (16) | ||
Goodwill | 1,841 | 1,855 | 1,865 | |
Baby, Feminine & Family Care | ||||
Goodwill [Line Items] | ||||
Goodwill Acquisitions and Divestitures | (5) | 57 | ||
Goodwill, Impairment Loss | 0 | |||
Goodwill, Translation and Purchase Accounting Adjustments | (28) | (46) | ||
Goodwill | 4,557 | 4,580 | 4,569 | |
Corporate | ||||
Goodwill [Line Items] | ||||
Goodwill Acquisitions and Divestitures | 0 | 0 | ||
Goodwill, Impairment Loss | 0 | |||
Goodwill, Translation and Purchase Accounting Adjustments | 0 | 0 | ||
Goodwill | $ 0 | $ 0 | $ 0 | |
[1] | Grooming goodwill balance is net of $1.2 billion accumulated impairment losses as of June 30, 2018 and $7.9 billion as of June 30, 2019 and 2020. |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - GOODWILL BY GLOBAL BUSINESS UNIT - ADDITIONAL INFORMATION (Details) - USD ($) $ in Billions | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 |
Grooming | |||
Goodwill [Line Items] | |||
Goodwill, Impaired, Accumulated Impairment Loss | $ 7.9 | $ 7.9 | $ 1.2 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - ADDITIONAL INFORMATION (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2019USD ($) | |
Goodwill [Line Items] | |
Goodwill, Impairment Loss | $ 6,783 |
Grooming | |
Goodwill [Line Items] | |
Goodwill, Impairment Loss | 6,783 |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 1,600 |
Intangible Asset Impairment Charges After Tax | $ 1,200 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 8,491 | $ 8,544 |
Finite-Lived Intangible Assets, Accumulated Amortization | 5,730 | 5,376 |
Intangible Assets, Gross (Excluding Goodwill) | 29,522 | 29,591 |
Brands | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 3,820 | 3,836 |
Finite-Lived Intangible Assets, Accumulated Amortization | 2,347 | 2,160 |
Patents and Developed Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 2,776 | 2,776 |
Finite-Lived Intangible Assets, Accumulated Amortization | 2,513 | 2,434 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,752 | 1,787 |
Finite-Lived Intangible Assets, Accumulated Amortization | 778 | 691 |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 143 | 145 |
Finite-Lived Intangible Assets, Accumulated Amortization | 92 | 91 |
Brands | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 21,031 | $ 21,047 |
GOODWILL AND INTANGIBLE ASSET_6
GOODWILL AND INTANGIBLE ASSETS - AMORTIZATION OF INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangible Asset Amortization | $ 360 | $ 349 | $ 302 |
GOODWILL AND INTANGIBLE ASSET_7
GOODWILL AND INTANGIBLE ASSETS - ESTIMATED AMORTIZATION EXPENSE (Details) $ in Millions | Jun. 30, 2020USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 310 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 291 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 280 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 268 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 250 |
INCOME TAXES - EARNINGS FROM CO
INCOME TAXES - EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract] | |||
Income Loss From Continuing Operations Before Income Taxes Adjusted for Net Earnings Attributable to Noncontrolling Interests | $ 15,834 | $ 6,069 | $ 13,326 |
Income (Loss) from Continuing Operations before Income Taxes, US | 10,338 | 1,659 | 9,277 |
Income (Loss) from Continuing Operations before Income Taxes, International | $ 5,496 | $ 4,410 | $ 4,049 |
INCOME TAXES - PROVISION FOR IN
INCOME TAXES - PROVISION FOR INCOME TAXES ON CONTINUING OPERATIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
CURRENT TAX EXPENSE | |||
Current Federal Tax Expense (Benefit) | $ 1,266 | $ 1,064 | $ 3,965 |
Current Foreign Tax Expense (Benefit) | 1,769 | 1,259 | 1,131 |
Current State and Local Tax Expense (Benefit) | 292 | 191 | 213 |
Current Income Tax Expense (Benefit) | 3,327 | 2,514 | 5,309 |
DEFERRED TAX EXPENSE | |||
Deferred Federal Income Tax Expense (Benefit) | 39 | (296) | (1,989) |
Deferred Foreign Income Tax Expense (Benefit) | (635) | (115) | 145 |
Deferred Income Tax Expense (Benefit) Continuing Operations | (596) | (411) | (1,844) |
Income Tax Expense | $ 2,731 | $ 2,103 | $ 3,465 |
INCOME TAXES - INCOME TAX RATE
INCOME TAXES - INCOME TAX RATE RECONCILIATION (Details) | 12 Months Ended | ||
Jun. 30, 2020Rate | Jun. 30, 2019Rate | Jun. 30, 2018Rate | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 28.10% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | (0.10%) | (0.50%) | (4.70%) |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 1.40% | 2.60% | 1.40% |
Effective Income Tax Rate Reconciliation, Tax Expense (Benefit), Share-based Payment Arrangement, Percent | (1.60%) | (3.80%) | (0.40%) |
Effective Income Tax Rate Reconciliation, Tax benefit from simplification of legal entity structure, percent | (1.40%) | 0.00% | 0.00% |
Effective Income Tax Rate Reconciliation, Deduction, Percent | (1.00%) | (2.20%) | 0.00% |
Effective Income Tax Rate Reconciliation, Tax Contingency, Other, Percent | 0.10% | (0.30%) | (0.30%) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Percent | 0.00% | 22.80% | 0.00% |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 0.00% | 0.00% | 4.50% |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | (1.20%) | (4.90%) | (2.60%) |
Effective Income Tax Rate Reconciliation, Percent | 17.20% | 34.70% | 26.00% |
INCOME TAXES - UNRECOGNIZED TAX
INCOME TAXES - UNRECOGNIZED TAX BENEFITS RECONCILIATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
BEGINNING OF YEAR | $ 466 | $ 470 | $ 465 |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 60 | 85 | 26 |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (21) | (94) | (38) |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 82 | 71 | 87 |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | (83) | (37) | (45) |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | (12) | (27) | (20) |
Unrecognized Tax Benefits, Increases (Decreases) Resulting From Currency Translation | (7) | (2) | (5) |
END OF YEAR | $ 485 | $ 466 | $ 470 |
INCOME TAXES - ADDITIONAL INFOR
INCOME TAXES - ADDITIONAL INFORMATION (Details) $ in Millions | 12 Months Ended | ||||
Jun. 30, 2020USD ($)auditcountries | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2037USD ($) | Jan. 01, 2018 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 28.10% | ||
Income Tax Expense (Benefit) | $ 2,731 | $ 2,103 | $ 3,465 | ||
Deferred Federal Income Tax Expense (Benefit) | 39 | (296) | (1,989) | ||
Income Tax Effects Allocated Directly to Equity | 18 | 80 | |||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 19,000 | ||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 278 | ||||
Number of Countries With On The Ground Operations | countries | 70 | ||||
Number of Income Tax Jurisdiction | countries | 150 | ||||
Open Tax Year | 2008 | ||||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | $ 83 | 37 | 45 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 141 | 133 | 99 | ||
Unrecognized Tax Benefits, Income Tax Penalties Accrued | 17 | 17 | 15 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 39 | 40 | 22 | ||
Unrecognized Tax Benefits, Income Tax Penalties Expense | 1 | 2 | $ 5 | ||
Operating Loss Carryforwards | $ 2,900 | $ 3,500 | |||
Minimum | |||||
Number of Jurisdictional Audits | audit | 40 | ||||
Maximum | |||||
Number of Jurisdictional Audits | audit | 50 | ||||
U.S. Tax Cuts and Jobs Act, Effective 2018 | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 28.00% | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Base Rate, Percent | 21.00% | ||||
Income Tax Expense (Benefit) | $ 602 | ||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 3,800 | ||||
Deferred Federal Income Tax Expense (Benefit) | $ 3,200 | ||||
Net Operating Loss, Expiring Within 20 Years | Minimum | |||||
Operating Loss Carryforwards | $ 900 | ||||
Net Operating Loss, Indefinite Life | Maximum | |||||
Operating Loss Carryforwards | $ 2,000 | ||||
Subsequent Event | Net Operating Loss, Expiring Within 20 Years | Maximum | |||||
Operating Loss Carryforwards | $ 900 |
INCOME TAXES - DEFERRED INCOME
INCOME TAXES - DEFERRED INCOME TAX ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
DEFERRED TAX ASSETS | ||
Deferred Tax Assets Pension And Postretirement Benefits | $ 1,602 | $ 1,591 |
Deferred Tax Assets, Other Tax Carryforwards | 875 | 1,007 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 398 | 421 |
Deferred Tax Assets, Property, Plant and Equipment | 218 | 232 |
Deferred Tax Assets Accrued Marketing And Promotion Expense | 353 | 334 |
Deferred Tax Assets, Unrealized Losses on Trading Securities | 64 | 73 |
Deferred Tax Assets, Inventory | 27 | 41 |
Deferred Tax Assets Accrued Interest And Taxes | 20 | 15 |
Deferred Tax Assets, Other | 829 | 931 |
Deferred Tax Assets, Valuation Allowance | (486) | (442) |
Deferred Tax Assets, Net of Valuation Allowance | 4,090 | 4,203 |
DEFERRED TAX LIABILITIES | ||
Deferred Tax Liabilities, Goodwill and Intangible Assets | 5,775 | 6,506 |
Deferred Tax Liabilities, Property, Plant and Equipment | 1,485 | 1,413 |
Deferred Tax Liabilities, Foreign Withholding Tax on Earnings to be Repatriated | 118 | 239 |
Deferred Tax Liabilities, Unrealized Gains on Trading Securities | 169 | 147 |
Deferred Tax Liabilities, Other | 366 | 351 |
Deferred Tax Liabilities, Net | 8,098 | 8,656 |
Deferred Tax Liabilities, Leasing Arrangements | 185 | 0 |
Deferred Tax Assets, Lease Liabilities | $ 190 | $ 0 |
INCOME TAXES - ADDITIONAL INF_2
INCOME TAXES - ADDITIONAL INFORMATION OTHER (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2037 | Jun. 30, 2019 | |
Operating Loss Carryforwards | $ 2,900 | $ 3,500 | |
Liability for uncertain tax position | $ 60 | ||
Subsequent Event | Net Operating Loss, Expiring Within 20 Years | Maximum | |||
Operating Loss Carryforwards | $ 900 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |||||||||||||
Net Earnings | $ 13,103 | $ 3,966 | $ 9,861 | ||||||||||||||||||||
Net Earnings Attributable to Noncontrolling Interest | 76 | 69 | 111 | ||||||||||||||||||||
Net Income (Loss) Attributable to Parent | $ 2,800 | $ 2,917 | $ 3,717 | $ 3,593 | $ (5,241) | $ 2,745 | $ 3,194 | $ 3,199 | 13,027 | [1] | 3,897 | [1] | 9,750 | [1] | |||||||||
Dividends, Preferred Stock | 263 | 263 | 265 | ||||||||||||||||||||
Net Income (Loss) Available to Common Stockholders, Basic | 12,764 | 3,634 | 9,485 | ||||||||||||||||||||
Net Income (Loss) Available to Common Stockholders, Diluted | $ 13,027 | $ 3,634 | $ 9,750 | ||||||||||||||||||||
Weighted Average Number of Shares Outstanding, Basic | 2,487.1 | 2,503.6 | 2,529.3 | ||||||||||||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | [2] | 52.7 | 35.9 | 32.5 | |||||||||||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock | [3] | 86 | 0 | 94.9 | |||||||||||||||||||
Weighted Average Number of Shares Outstanding, Diluted | 2,625.8 | 2,539.5 | 2,656.7 | ||||||||||||||||||||
Earnings Per Share, Basic | [4],[5] | $ 5.13 | $ 1.45 | $ 3.75 | |||||||||||||||||||
Earnings Per Share, Diluted | $ 1.07 | [6] | $ 1.12 | [6] | $ 1.41 | [6] | $ 1.36 | [6] | $ (2.12) | [6],[7] | $ 1.04 | [6],[7] | $ 1.22 | [6],[7] | $ 1.22 | [6],[7] | $ 4.96 | [4],[5],[6] | $ 1.43 | [4],[5],[6],[7] | $ 3.67 | [4],[5] | |
[1] | Net earnings attributable to Procter & Gamble in fiscal 2019 was negatively impacted by the impairment charges of $8.3 billion related to Shave Care goodwill and Gillette indefinite-lived intangible assets. | ||||||||||||||||||||||
[2] | Weighted average outstanding stock options of approximately 6 million in 2020, 13 million in 2019 and 48 million in 2018 were not included in the Diluted net earnings per share calculation because the options were out of the money or to do so would have been antidilutive (i.e., the assumed proceeds upon exercise would have exceeded the market value of the underlying common shares). | ||||||||||||||||||||||
[3] | Despite being included in Diluted net earnings per common share, the actual conversion to common stock occurs when the preferred shares are sold. Shares may only be sold after being allocated to the ESOP participants pursuant to the repayment of the ESOP's obligations through 2035. In fiscal year 2019, weighted average outstanding preferred shares of 90 million were not included in the Diluted net earnings per share calculation because to do so would have been antidilutive, due to lower Net earnings driven by the Shave Care impairment charges (see Note 4). | ||||||||||||||||||||||
[4] | Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble. | ||||||||||||||||||||||
[5] | Net earnings per share are calculated on Net earnings attributable to Procter & Gamble. | ||||||||||||||||||||||
[6] | Diluted net earnings/(loss) per share is calculated on Net earnings/(loss) attributable to Procter & Gamble. | ||||||||||||||||||||||
[7] | Diluted net earnings/(loss) per share in each quarter is computed using the weighted average number of shares outstanding during that quarter while Diluted net earnings/(loss) per share for the full year is computed using the weighted average number of shares outstanding during the year. In the quarter ended June 30, 2019, the Company reported a Net loss attributable to P&G, driven by the Shave Care impairment charges discussed in Note 4. This caused certain of our equity instruments to be antidilutive for the full year (preferred shares) and for the quarter ended June 30, 2019 (preferred shares and equity awards). Because these securities were dilutive during the first three quarters of this fiscal year, the sum of the four quarters' Diluted net earnings/(loss) per share will not equal the full-year Diluted net earnings per common share. |
EARNINGS PER SHARE - ANTIDILUTI
EARNINGS PER SHARE - ANTIDILUTIVE SECURITIES (Details) - shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Employee Stock Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 6 | 13 | 48 |
Convertible Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 90 |
STOCK-BASED COMPENSATION - SHAR
STOCK-BASED COMPENSATION - SHARE-BASED COMPENSATION ACTIVITY (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Payment Arrangement, Noncash Expense | $ 558 | $ 515 | $ 395 |
Continuing and Discontinued Operations | |||
Stock or Unit Option Plan Expense | 249 | 246 | 220 |
Other Stock-Based Compensation Expense | 309 | 269 | 175 |
Share-based Payment Arrangement, Noncash Expense | 558 | 515 | 395 |
Share-based Payment Arrangement, Expense, Tax Benefit | $ 97 | $ 101 | $ 87 |
STOCK-BASED COMPENSATION - ASSU
STOCK-BASED COMPENSATION - ASSUMPTIONS UTIILIZED IN THE BINOMIAL LATTICE-BASED VALUATION MODEL (Details) | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 1.10% | 2.50% | 1.90% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 1.40% | 2.70% | 2.90% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.30% | 2.60% | 2.80% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 2.40% | 3.00% | 3.10% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 17.00% | 17.00% | 18.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 9 years 2 months 12 days | 9 years 2 months 12 days | 9 years 2 months 12 days |
STOCK-BASED COMPENSATION - OPTI
STOCK-BASED COMPENSATION - OPTIONS OUTSTANDING (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Jun. 30, 2020USD ($)$ / sharesshares | |
Options | |
Outstanding, Beginning of Year | shares | 164,741 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | shares | 14,277 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | shares | (28,722) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | shares | (424) |
Outstanding, End of Year | shares | 149,872 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares | 102,702 |
Weighted Average Exercise Price | |
Outstanding, Beginning of Year | $ / shares | $ 79.59 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | 115.01 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ / shares | (70.34) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ / shares | (83.23) |
Outstanding, End of Year | $ / shares | 84.71 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 79.54 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years 6 months |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 4 years 2 months 12 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ | $ 5,241 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ | $ 4,111 |
STOCK BASED COMPENSATION - STOC
STOCK BASED COMPENSATION - STOCK OPTIONS (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 15.60 | $ 13.60 | $ 11.89 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 1,455 | $ 1,770 | $ 500 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 217 | 180 | 209 |
Proceeds from Stock Options Exercised | 2,019 | 3,381 | 1,245 |
Share-based Payment Arrangement, Exercise of Option, Tax Benefit | $ 298 | $ 221 | $ 127 |
STOCK-BASED COMPENSATION - SCHE
STOCK-BASED COMPENSATION - SCHEDULE OF NON-VESTED RSUs AND PSUs (Details) | 12 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | shares | 5,493 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 1,516 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | shares | (2,376) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | shares | (135) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | shares | 4,498 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 84 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | 114.44 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares | (88.61) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | (84.61) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 92.15 |
Performance Stock Units (PSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | shares | 1,295 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 562 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | shares | (799) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | shares | (10) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | shares | 1,048 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 92.98 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | 123.52 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares | (79.64) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | (94.94) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 117.02 |
STOCK-BASED COMPENSATION - ADDI
STOCK-BASED COMPENSATION - ADDITIONAL INFORMATION (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Key Manager, Long-term Incentive, Stock Options Vest After Three Years, Life | 10 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 150 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 166 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 264 | $ 205 | $ 175 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 37 | ||
Employee Stock Option | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 171 | ||
Employee Service Share Based Compensation Unrecognized Compensation Costs Nonvested Awards Weighted Average Period Of Recognition | 2 years | ||
Restricted Stock, RSUs and PSUs | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 251 | ||
Employee Service Share Based Compensation Unrecognized Compensation Costs Nonvested Awards Weighted Average Period Of Recognition | 1 year 10 months 24 days |
POSTRETIREMENT BENEFITS AND E_3
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - DEFINED CONTRIBUTION RETIREMENT PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Cost | $ 317 | $ 272 | $ 292 |
UNITED STATES | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan Contribution Rate | 14.00% | 14.00% | 14.00% |
POSTRETIREMENT BENEFITS AND E_4
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - RECONCILIATION OF BENEFIT OBLIGATIONS AND PLAN ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||||
Pension Plan | ||||||
CHANGE IN BENEFIT OBLIGATION | ||||||
Defined Benefit Plan, Benefit Obligation, Beginning of Year | [1],[2] | $ 17,037 | $ 15,658 | |||
Defined Benefit Plan, Service Cost | 247 | [2] | 259 | [2] | $ 280 | |
Defined Benefit Plan, Interest Cost | 276 | [2] | 339 | [2] | 348 | |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | [2] | 11 | 12 | |||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | [2] | 3 | 9 | |||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | [2] | 951 | 1,587 | |||
Defined Benefit Plan, Acquisitions (Divestitures), Benefit Obligation | [2] | 0 | 49 | |||
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | [2] | 11 | 13 | |||
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | [2] | (218) | (283) | |||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | [2] | (557) | (606) | |||
Defined Benefit Plan, Benefit Obligation, End of Year | [1],[2] | 17,761 | 17,037 | 15,658 | ||
CHANGE IN PLAN ASSETS | ||||||
Defined Benefit Plan, Fair Value of Plan Assets, Beginning of Year | [2] | 11,382 | 11,267 | |||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | [2] | 664 | 739 | |||
Defined Benefit Plan Acquisitions Divestitures Plan Assets | [2] | 0 | 4 | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | [2] | 180 | 178 | |||
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | [2] | 11 | 12 | |||
Defined Benefit Plan, Plan Assets, Foreign Currency Translation Gain (Loss) | [2] | (196) | (212) | |||
Defined Benefit Plan, ESOP Debt Servicing | [2],[3] | 0 | 0 | |||
Defined Benefit Plan, Plan Assets, Benefits Paid | [2] | (557) | (606) | |||
Defined Benefit Plan, Fair Value of Plan Assets, End of Year | [2] | 11,484 | 11,382 | 11,267 | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | [2] | (6,277) | (5,655) | |||
Other Retiree Benefits | ||||||
CHANGE IN BENEFIT OBLIGATION | ||||||
Defined Benefit Plan, Benefit Obligation, Beginning of Year | [1],[4] | 4,964 | 4,778 | |||
Defined Benefit Plan, Service Cost | 100 | [4] | 101 | [4] | 112 | |
Defined Benefit Plan, Interest Cost | 160 | [4] | 187 | [4] | 177 | |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | [4] | 74 | 76 | |||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | [4] | (136) | 0 | |||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | [4] | (85) | 37 | |||
Defined Benefit Plan, Acquisitions (Divestitures), Benefit Obligation | [4] | 0 | 0 | |||
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | [4] | 2 | 8 | |||
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | [4] | (64) | 20 | |||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | [4] | (245) | (243) | |||
Defined Benefit Plan, Benefit Obligation, End of Year | [1],[4] | 4,770 | 4,964 | 4,778 | ||
CHANGE IN PLAN ASSETS | ||||||
Defined Benefit Plan, Fair Value of Plan Assets, Beginning of Year | [4] | 5,096 | 3,259 | |||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | [4] | 595 | 1,918 | |||
Defined Benefit Plan Acquisitions Divestitures Plan Assets | [4] | 0 | 0 | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | [4] | 33 | 31 | |||
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | [4] | 74 | 76 | |||
Defined Benefit Plan, Plan Assets, Foreign Currency Translation Gain (Loss) | [4] | 2 | (1) | |||
Defined Benefit Plan, ESOP Debt Servicing | [3],[4] | 63 | 56 | |||
Defined Benefit Plan, Plan Assets, Benefits Paid | [4] | (245) | (243) | |||
Defined Benefit Plan, Fair Value of Plan Assets, End of Year | [4] | 5,618 | 5,096 | $ 3,259 | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | [4] | $ 848 | $ 132 | |||
[1] | For the pension benefit plans, the benefit obligation is the projected benefit obligation. For other retiree benefit plans, the benefit obligation is the accumulated postretirement benefit obligation. | |||||
[2] | Primarily non-U.S.-based defined benefit retirement plans. | |||||
[3] | Represents the net impact of ESOP debt service requirements, which is netted against plan assets for other retiree benefits. | |||||
[4] | Primarily U.S.-based other postretirement benefit plans. |
POSTRETIREMENT BENEFITS AND E_5
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - RECONCILIATION OF BENEFIT PLANS RECOGNIZED IN THE BALANCE SHEET (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Pension Plan | ||
CLASSIFICATION OF NET AMOUNT RECOGNIZED | ||
Assets for Plan Benefits, Defined Benefit Plan | $ 12 | $ 19 |
Liability, Defined Benefit Plan, Current | (66) | (52) |
Liability, Defined Benefit Plan, Noncurrent | (6,223) | (5,622) |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | (6,277) | (5,655) |
AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | 5,662 | 5,062 |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Prior Service Cost (Credit), before Tax | 198 | 214 |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | 5,860 | 5,276 |
Other Retiree Benefits | ||
CLASSIFICATION OF NET AMOUNT RECOGNIZED | ||
Assets for Plan Benefits, Defined Benefit Plan | 1,843 | 1,257 |
Liability, Defined Benefit Plan, Current | (30) | (27) |
Liability, Defined Benefit Plan, Noncurrent | (965) | (1,098) |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | 848 | 132 |
AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | 572 | 874 |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Prior Service Cost (Credit), before Tax | (511) | (424) |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | $ 61 | $ 450 |
POSTRETIREMENT BENEFITS AND E_6
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - PENSION PLANS WITH ACCUMULATED AND PROJECTED BENEFIT OBLIGATIONS IN EXCESS OF PLAN ASSETS (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets | ||
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | $ 12,095 | $ 11,604 |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Accumulated Benefit Obligation | 11,196 | 10,711 |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Plan Assets | 5,994 | 6,026 |
Projected Benefit Obligation Exceeds the Fair Value of Plan Assets | ||
Defined Benefit Plan, Pension Plans With Projected Benefit Obligations In Excess Of Plan Assets, Aggregate Projected Benefit Obligation | 17,635 | 16,304 |
Defined Benefit Plan, Pension Plans With Projected Benefit Obligations In Excess Of Plan Assets, Aggregate Accumulated Benefit Obligation | 16,377 | 15,096 |
Defined Benefit Plan, Pension Plans With Projected Benefit Obligations In Excess Of Plan Assets, Aggregate Fair Value Of Plan Assets | $ 11,347 | $ 10,630 |
POSTRETIREMENT BENEFITS AND E_7
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - COMPONENTS OF NET PERIODIC BENEFIT COST (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |||
Pension Plan | |||||
AMOUNTS RECOGNIZED IN NET PERIODIC BENEFIT COST | |||||
Defined Benefit Plan, Service Cost | $ 247 | [1] | $ 259 | [1] | $ 280 |
Defined Benefit Plan, Interest Cost | 276 | [1] | 339 | [1] | 348 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (740) | (732) | (751) | ||
Defined Benefit Plan, Amortization of Gain (Loss) | 340 | 225 | 295 | ||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 25 | 26 | 28 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | 7 | 9 | 0 | ||
Defined Benefit Plan, Other Cost (Credit) | 11 | 13 | 8 | ||
Defined Benefit Plan Gross Periodic Benefit Cost | 166 | 139 | 208 | ||
Employee Stock Ownership Plan (ESOP), Dividends on ESOP Preferred Stock | 0 | 0 | 0 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 166 | 139 | 208 | ||
CHANGE IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN AOCI | |||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | 1,027 | 1,580 | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), before Tax | 3 | 9 | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | (340) | (225) | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | (25) | (26) | |||
Other Comprehensive Income Defined Benefit Plan Settlement And Curtailment Cost Before Tax | (7) | (9) | |||
Other Comprehensive Income, Defined Benefit Plan, Currency Translation and Other, Before Tax | (74) | (84) | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | 584 | 1,245 | |||
Defined Benefit Plans, Amount Recognized In Periodic Benefit Cost And Accumulated Other Comprehensive Income | 750 | 1,384 | |||
Other Retiree Benefits | |||||
AMOUNTS RECOGNIZED IN NET PERIODIC BENEFIT COST | |||||
Defined Benefit Plan, Service Cost | 100 | [2] | 101 | [2] | 112 |
Defined Benefit Plan, Interest Cost | 160 | [2] | 187 | [2] | 177 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (473) | (447) | (451) | ||
Defined Benefit Plan, Amortization of Gain (Loss) | 68 | 66 | 69 | ||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (48) | (48) | (41) | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | 0 | 0 | 0 | ||
Defined Benefit Plan, Other Cost (Credit) | 2 | 8 | 7 | ||
Defined Benefit Plan Gross Periodic Benefit Cost | (191) | (133) | (127) | ||
Employee Stock Ownership Plan (ESOP), Dividends on ESOP Preferred Stock | (19) | (28) | (37) | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (210) | (161) | $ (164) | ||
CHANGE IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN AOCI | |||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | (207) | (1,434) | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), before Tax | (136) | 0 | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | (68) | (66) | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | 48 | 48 | |||
Other Comprehensive Income Defined Benefit Plan Settlement And Curtailment Cost Before Tax | 0 | 0 | |||
Other Comprehensive Income, Defined Benefit Plan, Currency Translation and Other, Before Tax | (26) | 14 | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | (389) | (1,438) | |||
Defined Benefit Plans, Amount Recognized In Periodic Benefit Cost And Accumulated Other Comprehensive Income | $ (599) | $ (1,599) | |||
[1] | Primarily non-U.S.-based defined benefit retirement plans. | ||||
[2] | Primarily U.S.-based other postretirement benefit plans. |
POSTRETIREMENT BENEFITS AND E_8
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - AMOUNTS EXPECTED TO BE AMORTIZED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET PERIODIC BENEFIT COST (Details) - Subsequent Event $ in Millions | Jun. 30, 2021USD ($) |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | $ 401 |
Defined Benefit Plan, Expected Amortization of Prior Service Cost (Credit), Next Fiscal Year | 25 |
Other Retiree Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | 47 |
Defined Benefit Plan, Expected Amortization of Prior Service Cost (Credit), Next Fiscal Year | $ (59) |
POSTRETIREMENT BENEFITS AND E_9
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - WEIGHTED AVERAGE ASSUMPTIONS FOR THE BENEFIT CALCULATIONS AS WELL AS ASSUMED HEALTH CARE TREND RATES (Details) | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Pension Plan | ||||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | [1] | 1.50% | 1.90% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | [1] | 2.50% | 2.60% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | [2] | 1.90% | 2.50% | 2.40% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | [2] | 6.60% | 6.60% | 6.80% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | [2] | 2.60% | 2.60% | 3.00% |
Other Retiree Benefits | ||||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | [1] | 3.10% | 3.70% | |
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | ||||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Next Fiscal Year | [1] | 6.60% | 6.60% | |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | [1] | 4.90% | 4.90% | |
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate | [1] | 2026 | 2026 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | [2] | 3.70% | 4.20% | 3.90% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | [2] | 8.40% | 8.30% | 8.30% |
[1] | Determined as of end of fiscal year. | |||
[2] | Determined as of beginning of fiscal year. |
POSTRETIREMENT BENEFITS AND _10
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - ONE-PERCENTAGE POINT CHANGE IN ASSUMED HEALTH CARE COST TREND RATES (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2020USD ($) | |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract] | |
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components | $ 56 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components | (43) |
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | 669 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | $ (543) |
POSTRETIREMENT BENEFITS AND _11
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - TARGET AND ACTUAL ASSET ALLOCATION (Details) | Jun. 30, 2020 | Jun. 30, 2019 |
Pension Plan | ||
Target Asset Allocation | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100.00% | |
Actual Asset Allocation | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 100.00% | 100.00% |
Other Retiree Benefits | ||
Target Asset Allocation | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100.00% | |
Actual Asset Allocation | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 100.00% | 100.00% |
Cash and Cash Equivalents | Pension Plan | ||
Target Asset Allocation | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% | |
Actual Asset Allocation | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 1.00% | 1.00% |
Cash and Cash Equivalents | Other Retiree Benefits | ||
Target Asset Allocation | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 2.00% | |
Actual Asset Allocation | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 3.00% | 3.00% |
Debt Securities | Pension Plan | ||
Target Asset Allocation | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 67.00% | |
Actual Asset Allocation | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 66.00% | 63.00% |
Debt Securities | Other Retiree Benefits | ||
Target Asset Allocation | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 3.00% | |
Actual Asset Allocation | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 2.00% | 2.00% |
Equity Securities | Pension Plan | ||
Target Asset Allocation | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 33.00% | |
Actual Asset Allocation | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 33.00% | 36.00% |
Equity Securities | Other Retiree Benefits | ||
Target Asset Allocation | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 95.00% | |
Actual Asset Allocation | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 95.00% | 95.00% |
POSTRETIREMENT BENEFITS AND _12
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - FAIR VALUE OF PLAN ASSETS (Details) RETAG - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Pension Plan | ||||
ASSETS AT FAIR VALUE | ||||
Defined Benefit Plan, Plan Assets, Amount | [1] | $ 11,484 | $ 11,382 | $ 11,267 |
Pension Plan | Fair Value, Inputs, Level 1, 2 and 3 [Member] | ||||
ASSETS AT FAIR VALUE | ||||
Defined Benefit Plan, Plan Assets, Amount | 2,167 | 425 | ||
Pension Plan | Cash and Cash Equivalents | Fair Value, Inputs, Level 1 | ||||
ASSETS AT FAIR VALUE | ||||
Defined Benefit Plan, Plan Assets, Amount | 61 | 47 | ||
Pension Plan | Company Stock | Fair Value, Inputs, Level 1 | ||||
ASSETS AT FAIR VALUE | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Pension Plan | Company Preferred Stock | Fair Value, Inputs, Level 2 | ||||
ASSETS AT FAIR VALUE | ||||
Defined Benefit Plan, Plan Assets, Amount | [2] | 0 | 0 | |
Pension Plan | Fixed Income Securities | Fair Value, Inputs, Level 2 | ||||
ASSETS AT FAIR VALUE | ||||
Defined Benefit Plan, Plan Assets, Amount | [3] | 1,991 | 265 | |
Pension Plan | Insurance Contracts [Domain] | Fair Value, Inputs, Level 3 | ||||
ASSETS AT FAIR VALUE | ||||
Defined Benefit Plan, Plan Assets, Amount | [4] | 115 | 113 | |
Pension Plan | Other Assets | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
ASSETS AT FAIR VALUE | ||||
Defined Benefit Plan, Plan Assets, Amount | [5] | 9,317 | 10,957 | |
Other Retiree Benefits | ||||
ASSETS AT FAIR VALUE | ||||
Defined Benefit Plan, Plan Assets, Amount | [6] | 5,618 | 5,096 | $ 3,259 |
Other Retiree Benefits | Fair Value, Inputs, Level 1, 2 and 3 [Member] | ||||
ASSETS AT FAIR VALUE | ||||
Defined Benefit Plan, Plan Assets, Amount | 5,489 | 4,948 | ||
Other Retiree Benefits | Cash and Cash Equivalents | Fair Value, Inputs, Level 1 | ||||
ASSETS AT FAIR VALUE | ||||
Defined Benefit Plan, Plan Assets, Amount | 121 | 111 | ||
Other Retiree Benefits | Company Stock | Fair Value, Inputs, Level 1 | ||||
ASSETS AT FAIR VALUE | ||||
Defined Benefit Plan, Plan Assets, Amount | 217 | 179 | ||
Other Retiree Benefits | Company Preferred Stock | Fair Value, Inputs, Level 2 | ||||
ASSETS AT FAIR VALUE | ||||
Defined Benefit Plan, Plan Assets, Amount | [2] | 5,139 | 4,657 | |
Other Retiree Benefits | Fixed Income Securities | Fair Value, Inputs, Level 2 | ||||
ASSETS AT FAIR VALUE | ||||
Defined Benefit Plan, Plan Assets, Amount | [3] | 12 | 1 | |
Other Retiree Benefits | Insurance Contracts [Domain] | Fair Value, Inputs, Level 3 | ||||
ASSETS AT FAIR VALUE | ||||
Defined Benefit Plan, Plan Assets, Amount | [4] | 0 | 0 | |
Other Retiree Benefits | Other Assets | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
ASSETS AT FAIR VALUE | ||||
Defined Benefit Plan, Plan Assets, Amount | [5] | $ 129 | $ 148 | |
[1] | Primarily non-U.S.-based defined benefit retirement plans. | |||
[2] | Company preferred stock is valued based on the value of Company common stock and is presented net of ESOP debt discussed below. | |||
[3] | Fixed income securities, classified as Level 2, are estimated by using pricing models or quoted prices of securities with similar characteristics. | |||
[4] | Fair values of insurance contracts are valued based on either their cash equivalent value or models that project future cash flows and discount the future amounts to a present value using market-based observable inputs, including credit risk and interest rate curves. The activity for Level 3 assets is not significant for all years presented. | |||
[5] | Investments valued using net asset value as a practical expedient are primarily equity and fixed income collective funds. | |||
[6] | Primarily U.S.-based other postretirement benefit plans. |
POSTRETIREMENT BENEFITS AND _13
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - TOTAL BENEFIT PAYMENTS EXPECTED TO BE PAID (Details) $ in Millions | Jun. 30, 2020USD ($) |
Pension Plan | |
EXPECTED BENEFIT PAYMENTS | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | $ 559 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 534 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 556 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 573 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 608 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 3,258 |
Other Retiree Benefits | |
EXPECTED BENEFIT PAYMENTS | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 196 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 205 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 214 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 221 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 225 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | $ 1,199 |
POSTRETIREMENT BENEFITS AND _14
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - ESOP SHARES OUTSTANDING (Details) - shares shares in Thousands | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 |
Series A Preferred Stock | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares | 29,591 | 31,600 | 34,233 |
Employee Stock Ownership Plan (ESOP), Number of Suspense Shares | 2,479 | 3,259 | 4,117 |
Employee Stock Ownership Plan (ESOP), Shares in ESOP | 32,070 | 34,859 | 38,350 |
Series B Preferred Stock | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares | 27,894 | 26,790 | 25,895 |
Employee Stock Ownership Plan (ESOP), Number of Suspense Shares | 24,418 | 26,471 | 28,512 |
Employee Stock Ownership Plan (ESOP), Shares in ESOP | 52,312 | 53,261 | 54,407 |
POSTRETIREMENT BENEFITS AND _15
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - ADDITIONAL INFORMATION (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2021 | Jun. 30, 1991 | Jun. 30, 1989 | ||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 16,500 | $ 15,800 | |||||
Equity Securities | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Expected Long Term Return On Assets Range Minimum | 8.00% | ||||||
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Expected Long Term Return On Assets Range Maximum | 9.00% | ||||||
Pension Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | [1] | 6.60% | 6.60% | 6.80% | |||
Pension Plan | Series A Preferred Stock | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Employee Stock Ownership Plan (ESOP), Debt Structure, Direct Loan, Amount | $ 1,000 | ||||||
Employee Stock Ownership Plan (ESOP), Debt Structure, Employer Loan Guarantee | $ 33 | ||||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ 3.03 | ||||||
Preferred Stock, Liquidation Preference Per Share | $ 6.82 | ||||||
Other Retiree Benefits | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | [1] | 8.40% | 8.30% | 8.30% | |||
Other Retiree Benefits | Series B Preferred Stock | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Employee Stock Ownership Plan (ESOP), Debt Structure, Direct Loan, Amount | $ 1,000 | ||||||
Employee Stock Ownership Plan (ESOP), Debt Structure, Employer Loan Guarantee | $ 928 | ||||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ 3.03 | ||||||
Preferred Stock, Liquidation Preference Per Share | $ 12.96 | ||||||
Treasury Stock | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 8.50% | ||||||
Bonds | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Expected Long Term Return On Assets Range Minimum | 5.00% | ||||||
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Expected Long Term Return On Assets Range Maximum | 6.00% | ||||||
Subsequent Event | Pension Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 197 | ||||||
Subsequent Event | Other Retiree Benefits | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 44 | ||||||
[1] | Determined as of beginning of fiscal year. |
RISK MANAGEMENT ACTIVITIES AN_3
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
US Government Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | $ 3,600 | |
Corporate Bond Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 2,400 | |
Other Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | $ 67 | $ 169 |
RISK MANAGEMENT ACTIVITIES AN_4
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - ASSETS - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Schedule of Investments [Line Items] | ||
Cash Equivalents, at Carrying Value | $ 14,600 | $ 3,000 |
RISK MANAGEMENT ACTIVITIES AN_5
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - LIABILITIES - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Fair Value Disclosures [Abstract] | ||
Long-term Debt, Fair Value | $ 29,000 | $ 25,400 |
Long Term Debt, Current Maturities measured at Fair Value | $ 2,500 | $ 3,400 |
RISK MANAGEMENT ACTIVITIES AN_6
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - NOTIONAL AMOUNTS AND FAIR VALUES OF QUALIFYING AND NON-QUALIFYING FINANCIAL INSTRUMENTS USED IN HEDGING TRANSACTIONS (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Derivative, Notional Amount | $ 16,956 | $ 17,309 |
Derivative Asset | 318 | 239 |
Derivative Liability | (66) | (45) |
Net Investment Hedging | ||
Derivative, Notional Amount | 3,856 | 3,157 |
Derivative Asset | 26 | 35 |
Derivative Liability | (41) | (24) |
Designated as Hedging Instrument | ||
Derivative, Notional Amount | 10,970 | 10,878 |
Derivative Asset | 295 | 212 |
Derivative Liability | (41) | (25) |
Interest Rate Contract | Fair Value Hedging | ||
Derivative, Notional Amount | 7,114 | 7,721 |
Derivative Asset | 269 | 177 |
Derivative Liability | 0 | (1) |
Foreign Exchange Contract | Not Designated as Hedging Instrument | ||
Derivative, Notional Amount | 5,986 | 6,431 |
Derivative Asset | 23 | 27 |
Derivative Liability | $ (25) | $ (20) |
RISK MANAGEMENT ACTIVITIES AN_7
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - NOTIONAL AMOUNTS AND FAIR VALUES OF QUALIFYING AND NON-QUALIFYING FINANCIAL INSTRUMENTS USED IN HEDGING TRANSACTIONS - ADDITIONAL INFORMATION (Details) - Underlying, Other - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Fair Value Hedging | ||
Derivative [Line Items] | ||
Underlying Debt Obligation, Carrying Amount | $ 7,400 | $ 7,900 |
Net Investment Hedging | ||
Derivative [Line Items] | ||
Underlying Debt Obligation, Carrying Amount | $ 16,000 | $ 17,200 |
RISK MANAGEMENT ACTIVITIES AN_8
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - GAINS AND LOSSES ON DERIVATIVES IN NET INVESTMENT HEDGES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | ||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 69 | $ 70 | |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | [1],[2] | 66 | 47 |
Accumulated Other Comprehensive Income, Gain (Loss) | $ 189 | $ 299 | |
[1] | For the derivatives in net investment hedging relationships, the amount of gain/(loss) excluded from effectiveness testing, which was recognized in earnings, was $69 and $70 for the fiscal year ended June 30, 2020 and 2019, respectively. | ||
[2] | In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges. The amount of gain/(loss) recognized in AOCI for such instruments was $189 and $299, as of June 30, 2020 and 2019, respectively. |
RISK MANAGEMENT ACTIVITIES AN_9
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - AMOUNT OF GAINS AND LOSSES ON OUTSTANDING DERIVATIVES - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Interest Rate Contract | Fair Value Hedging | ||
Derivative, Gain (Loss) on Derivative, Net | $ 93 | $ 104 |
Not Designated as Hedging Instrument | Foreign Exchange Contract | ||
Derivative, Gain (Loss) on Derivative, Net | $ (83) | $ 54 |
SHORT-TERM AND LONG-TERM DEBT -
SHORT-TERM AND LONG-TERM DEBT - SHORT-TERM DEBT (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Debt, Current [Abstract] | ||
Long-term Debt, Current Maturities | $ 2,508 | $ 3,388 |
Commercial Paper | 8,545 | 6,183 |
Other Short-term Borrowings | 130 | 126 |
Debt, Current | $ 11,183 | $ 9,697 |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 0.70% | 0.50% |
SHORT-TERM AND LONG-TERM DEBT_2
SHORT-TERM AND LONG-TERM DEBT - LONG-TERM DEBT (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 | |
LONG-TERM DEBT | |||
Other Long-term Debt | $ 3,359 | $ 5,858 | |
Long-term Debt, Current Maturities | (2,508) | (3,388) | |
Long-term Debt, Excluding Current Maturities | $ 23,537 | $ 20,395 | |
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 2.30% | 2.40% | |
4.13% EUR note due December 2020 | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | $ 674 | $ 682 | |
9.36% ESOP debentures due 2020-2021 (1) | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | [1] | 119 | 228 |
1.85% USD note due February 2021 | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | 600 | 600 | |
1.70% USD note due November 2021 | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | 875 | 875 | |
2.00% EUR note due November 2021 | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | 843 | 852 | |
2.30% USD note due February 2022 | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | 1,000 | 1,000 | |
2.15% USD note due August 2022 | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | 1,250 | 1,250 | |
2.00% EUR note due August 2022 | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | 1,124 | 1,137 | |
3.10% USD note due August 2023 | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | 1,000 | 1,000 | |
1.13% EUR note due November 2023 | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | 1,405 | 1,421 | |
0.50% EUR note due October 2024 | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | 562 | 568 | |
0.63% EUR note due October 2024 [Member] | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | 899 | 909 | |
2.70% USD note due February 2026 | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | 600 | 600 | |
2.45% USD note due November 2026 | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | 875 | 875 | |
4.88% EUR note due May 2027 | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | 1,124 | 1,137 | |
2.85% USD note due August 2027 | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | 750 | 750 | |
1.20% EUR note due October 2028 [Member] | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | 899 | 909 | |
1.25% EUR note due October 2029 | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | 562 | 568 | |
5.55% USD note due March 2037 | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | 763 | 763 | |
1.88% EUR note due October 2038 [Member] | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | 562 | 568 | |
3.50% USD note due October 2047 | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | 600 | 600 | |
Capital Lease Obligations | |||
LONG-TERM DEBT | |||
Other Long-term Debt | 0 | 33 | |
2.45% USD note due March 2025 | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | 750 | 0 | |
2.80% USD note due March 2027 | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | 500 | 0 | |
3.00% USD note due March 2030 | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | 1,500 | 0 | |
3.55% USD note due March 2040 | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | 1,000 | 0 | |
3.60% USD note due March 2050 | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | 1,250 | 0 | |
1.90% USD note due October 2020 | |||
LONG-TERM DEBT | |||
Notes Payable, Noncurrent | $ 600 | $ 600 | |
[1] | Debt issued by the ESOP is guaranteed by the Company and is recorded as debt of the Company, as discussed in Note 8. |
SHORT-TERM AND LONG-TERM DEBT_3
SHORT-TERM AND LONG-TERM DEBT - LONG-TERM DEBT MATURITIES (Details) $ in Millions | Jun. 30, 2020USD ($) |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 2,508 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 2,830 |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 2,425 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 2,481 |
Long-term Debt, Maturities, Repayments of Principal in Year Five | $ 2,743 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME - STATEMENT OF AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (14,936) | $ (14,749) | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (1,546) | [1] | (89) | [2] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 301 | [3] | 229 | [4] | ||
Other Comprehensive Income (Loss), Net of Tax | (1,245) | 140 | $ (119) | |||
Adoption of New Accounting Standard_Reclass from AOCI to Retained Earnings | [5] | (326) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | (16) | 1 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (16,165) | (14,936) | (14,749) | |||
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Including Noncontrolling Interest | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 11 | (173) | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (10) | [1] | 167 | [2] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (2) | [3] | 17 | [4] | ||
Other Comprehensive Income (Loss), Net of Tax | (12) | 184 | ||||
Adoption of New Accounting Standard_Reclass from AOCI to Retained Earnings | [5] | 0 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | 0 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1) | 11 | (173) | |||
Other Comprehensive Income (Loss) before Reclassifications, Tax | (1) | 0 | ||||
Reclassification from AOCI, Current Period, Tax | 0 | 0 | ||||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Including Portion Attributable to Noncontrolling Interest | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (4,198) | (4,058) | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (453) | [1] | (43) | [2] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 303 | [3] | 212 | [4] | ||
Other Comprehensive Income (Loss), Net of Tax | (150) | 169 | ||||
Adoption of New Accounting Standard_Reclass from AOCI to Retained Earnings | [5] | (308) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 2 | 1 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (4,350) | (4,198) | (4,058) | |||
Other Comprehensive Income (Loss) before Reclassifications, Tax | (131) | (44) | ||||
Reclassification from AOCI, Current Period, Tax | 89 | 66 | ||||
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (10,749) | (10,518) | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (1,083) | [1] | (213) | [2] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | [3] | 0 | [4] | ||
Other Comprehensive Income (Loss), Net of Tax | (1,083) | (213) | ||||
Adoption of New Accounting Standard_Reclass from AOCI to Retained Earnings | [5] | (18) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | (18) | 0 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (11,814) | (10,749) | $ (10,518) | |||
Accumulated Other Comprehensive Income (Loss), Derivative Qualifying as Hedge, Excluded Component, Including Portion Attributable to Noncontrolling Interest [Member] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Other Comprehensive Income (Loss) before Reclassifications, Tax | 59 | 78 | ||||
Reclassification from AOCI, Current Period, Tax | $ 0 | $ 0 | ||||
[1] | Net of tax (benefit)/expense of $(1) , $(131) and $59 for gains/losses on investment securities, postretirement benefit items and foreign currency translation, respectively, for the period ended June 30, 2020. | |||||
[2] | Net of tax benefit)/expense of $0, $(44) and $78 for gains/losses on investment securities, postretirement benefit items and foreign currency translation, respectively, for the period ended June 30, 2019. | |||||
[3] | Net of tax (benefit)/expense of $0, $89 and $0 for gains/losses on investment securities, postretirement benefit items and foreign currency translation, respectively, for the period ended June 30, 2020. | |||||
[4] | Net of tax (benefit)/expense of $0, $66 and $0 for gains/losses on investment securities, postretirement benefit items and foreign currency translation, respectively, for the period ended June 30, 2019. | |||||
[5] | Adjustment made to early adopt ASU 2018-02: "Reclassification of Certain Effects from Accumulated Other Comprehensive Income." |
LEASES - SUPPLEMENTAL BALANCE S
LEASES - SUPPLEMENTAL BALANCE SHEET (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Leases [Abstract] | ||
Operating Lease, Weighted Average Remaining Lease Term | 6 years 6 months | |
Operating Lease, Weighted Average Discount Rate, Percent | 4.30% | |
Other Noncurrent Assets | ||
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 850 | |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Right-of-Use Asset | 850 | |
Other Current Liabilities | ||
Leases [Abstract] | ||
Operating Lease, Liability, Current | 239 | |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Liability, Current | 239 | |
Other Noncurrent Liabilities | ||
Leases [Abstract] | ||
Operating Lease, Liability, Noncurrent | 652 | $ 0 |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Liability, Noncurrent | 652 | $ 0 |
Other Liabilities | ||
Leases [Abstract] | ||
Operating Lease, Liability | 891 | |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Liability | $ 891 |
LEASES - FUTURE MATURITIES (Det
LEASES - FUTURE MATURITIES (Details) $ in Millions | Jun. 30, 2020USD ($) |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Payments, Due Next Rolling Twelve Months | $ 239 |
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Two | 191 |
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Three | 161 |
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Four | 134 |
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Five | 86 |
Lessee, Operating Lease, Liability, Payments, Due after Rolling Year Five | 212 |
Lessee, Operating Lease, Liability, Payments, Due | 1,023 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (132) |
Other Liabilities | |
Leases [Abstract] | |
Operating Lease, Liability | 891 |
Lessee, Lease, Description [Line Items] | |
Operating Lease, Liability | $ 891 |
LEASES - FUTURE PAYMENTS (Detai
LEASES - FUTURE PAYMENTS (Details) $ in Millions | Jun. 30, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 263 |
Operating Leases, Future Minimum Payments, Due in Rolling Year Two | 209 |
Operating Leases, Future Minimum Payments, Due in Rolling Year Three | 165 |
Operating Leases, Future Minimum Payments, Due in Rolling Year Four | 141 |
Operating Leases, Future Minimum Payments, Due in Rolling Year Five | 121 |
Operating Leases, Future Minimum Payments, Due Thereafter | 244 |
Operating Leases, Future Minimum Payments Due | $ 1,143 |
LEASES - ADDITIONAL INFORMATION
LEASES - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Leases [Abstract] | |||
Operating Lease, Cost | $ 347 | $ 341 | $ 340 |
Operating Lease, Payments | 271 | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 126 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - PURCHASE OBLIGATIONS (Details) $ in Millions | Jun. 30, 2020USD ($) |
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |
Unrecorded Unconditional Purchase Obligation, Due in Next Twelve Months | $ 782 |
Unrecorded Unconditional Purchase Obligation, Due within Two Years | 257 |
Unrecorded Unconditional Purchase Obligation, Due within Three Years | 155 |
Unrecorded Unconditional Purchase Obligation, Due within Four Years | 92 |
Unrecorded Unconditional Purchase Obligation, Due within Five Years | 53 |
Unrecorded Unconditional Purchase Obligation, Due after Five Years | $ 238 |
ACQUISITION ACQUISITION - ALL_2
ACQUISITION ACQUISITION - ALLOCATION OF PURCHASE PRICE (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 | Nov. 30, 2018 | Jun. 30, 2018 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 39,901 | $ 40,273 | $ 45,175 | ||
PHC-MERCK ACQUISITION [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | $ 421 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 119 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 2,134 | ||||
Goodwill | 2,083 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets | 209 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 4,966 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | 232 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 763 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities | 94 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 1,089 | ||||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value | [1] | 169 | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest | $ 3,708 | ||||
[1] | Represents a 48% minority ownership interest in the Merck India company. |
ACQUISITION ACQUISITION - FAIR
ACQUISITION ACQUISITION - FAIR VALUE OF INTANGIBLES (Details) - PHC-MERCK ACQUISITION [Member] $ in Millions | 1 Months Ended |
Nov. 30, 2018USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 1,188 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 2,134 |
Brands | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 701 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years |
Patents and Developed Technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 162 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years |
Customer Relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 325 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years |
Brands | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 946 |
ACQUISITION ACQUISITION - ADDIT
ACQUISITION ACQUISITION - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 39,901 | $ 40,273 | $ 45,175 | |
PHC-MERCK ACQUISITION [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | |||
Goodwill | $ 2,083 | |||
Payments to Acquire Businesses, Gross | 3,700 | |||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 180 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 2,134 | |||
Brands | PHC-MERCK ACQUISITION [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years | |||
Customer Relationships | PHC-MERCK ACQUISITION [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years | |||
Minimum | Brands | PHC-MERCK ACQUISITION [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | |||
Maximum | Brands | PHC-MERCK ACQUISITION [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years |
QUARTERLY RESULTS (UNAUDITED)_2
QUARTERLY RESULTS (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||||||||||||
Net Sales | $ 17,698 | $ 17,214 | $ 18,240 | $ 17,798 | $ 17,094 | $ 16,462 | $ 17,438 | $ 16,690 | $ 70,950 | $ 67,684 | $ 66,832 | |||||||||||
Operating Income | $ 3,481 | $ 3,453 | $ 4,482 | $ 4,290 | $ (5,192) | $ 3,229 | $ 3,896 | $ 3,554 | $ 15,706 | $ 5,487 | 13,363 | |||||||||||
Gross Margin Percent of Net Sales | 49.50% | 49.40% | 51.40% | 51.00% | 47.70% | 48.80% | 48.90% | 49.20% | 50.30% | 48.60% | ||||||||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | $ 2,786 | $ 2,957 | $ 3,743 | $ 3,617 | $ (5,237) | $ 2,776 | $ 3,216 | $ 3,211 | $ 13,103 | $ 3,966 | ||||||||||||
NET EARNINGS: | ||||||||||||||||||||||
Net Income (Loss) Attributable to Parent | $ 2,800 | $ 2,917 | $ 3,717 | $ 3,593 | $ (5,241) | $ 2,745 | $ 3,194 | $ 3,199 | $ 13,027 | [1] | $ 3,897 | [1] | $ 9,750 | [1] | ||||||||
DILUTED NET EARNINGS PER COMMON SHARE | ||||||||||||||||||||||
Earnings Per Share, Diluted | $ 1.07 | [2] | $ 1.12 | [2] | $ 1.41 | [2] | $ 1.36 | [2] | $ (2.12) | [2],[3] | $ 1.04 | [2],[3] | $ 1.22 | [2],[3] | $ 1.22 | [2],[3] | $ 4.96 | [2],[4],[5] | $ 1.43 | [2],[3],[4],[5] | $ 3.67 | [4],[5] |
[1] | Net earnings attributable to Procter & Gamble in fiscal 2019 was negatively impacted by the impairment charges of $8.3 billion related to Shave Care goodwill and Gillette indefinite-lived intangible assets. | |||||||||||||||||||||
[2] | Diluted net earnings/(loss) per share is calculated on Net earnings/(loss) attributable to Procter & Gamble. | |||||||||||||||||||||
[3] | Diluted net earnings/(loss) per share in each quarter is computed using the weighted average number of shares outstanding during that quarter while Diluted net earnings/(loss) per share for the full year is computed using the weighted average number of shares outstanding during the year. In the quarter ended June 30, 2019, the Company reported a Net loss attributable to P&G, driven by the Shave Care impairment charges discussed in Note 4. This caused certain of our equity instruments to be antidilutive for the full year (preferred shares) and for the quarter ended June 30, 2019 (preferred shares and equity awards). Because these securities were dilutive during the first three quarters of this fiscal year, the sum of the four quarters' Diluted net earnings/(loss) per share will not equal the full-year Diluted net earnings per common share. | |||||||||||||||||||||
[4] | Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble. | |||||||||||||||||||||
[5] | Net earnings per share are calculated on Net earnings attributable to Procter & Gamble. |