DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION Document (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Jun. 30, 2014 | Jul. 31, 2014 | Dec. 31, 2013 |
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'PROCTER & GAMBLE CO | ' | ' |
Entity Central Index Key | '0000080424 | ' | ' |
Current Fiscal Year End Date | '--06-30 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Trading Symbol | 'PG | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 2,707,652,337 | ' |
Entity Public Float | ' | ' | $221 |
CONSOLIDATED_STATEMENTS_OF_EAR
CONSOLIDATED STATEMENTS OF EARNINGS (USD $) | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |||
NET SALES | $83,062 | $82,581 | $82,006 | |||
Cost of products sold | 42,460 | 41,391 | 41,411 | |||
Selling, general and administrative expense | 25,314 | 26,552 | 25,984 | |||
Goodwill and Indefinite-lived Intangibles Impairment Charges | 0 | 308 | 1,576 | |||
OPERATING INCOME | 15,288 | 14,330 | 13,035 | |||
Interest expense | 709 | 667 | 769 | |||
Interest income | 100 | 87 | 77 | |||
Other non-operating income/(expense), net | 206 | 942 | 185 | |||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 14,885 | 14,692 | 12,528 | |||
Tax (expense)/benefit | 3,178 | 3,391 | 3,378 | |||
NET EARNINGS FROM CONTINUING OPERATIONS | 11,707 | 11,301 | 9,150 | |||
NET EARNINGS FROM DISCONTINUED OPERATIONS | 78 | 101 | 1,754 | |||
NET EARNINGS | 11,785 | 11,402 | 10,904 | |||
Less: Net earnings attributable to noncontrolling interests | 142 | 90 | 148 | |||
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE | $11,643 | $11,312 | $10,756 | |||
BASIC NET EARNINGS PER COMMON SHARE: | ' | ' | ' | |||
Earnings from continuing operations | $4.16 | [1] | $4 | [1] | $3.18 | [1] |
Earnings from discontinued operations | $0.03 | [1] | $0.04 | [1] | $0.64 | [1] |
BASIC NET EARNINGS PER COMMON SHARE | $4.19 | [1] | $4.04 | [1] | $3.82 | [1] |
DILUTED NET EARNINGS PER COMMON SHARE: | ' | ' | ' | |||
Earnings from continuing operations | $3.98 | [1],[2] | $3.83 | [1],[2] | $3.06 | [1] |
Earnings from discontinued operations | $0.03 | [1],[2] | $0.03 | [1],[2] | $0.60 | [1] |
DILUTED NET EARNINGS PER COMMON SHARE | $4.01 | [1],[2] | $3.86 | [1],[2] | $3.66 | [1] |
DIVIDENDS PER COMMON SHARE | $2.45 | [1] | $2.29 | [1] | $2.14 | [1] |
[1] | Basic net earnings per common share and diluted net earnings per common share are calculated on net earnings attributable to Procter & Gamble | |||||
[2] | Diluted net earnings per share is calculated on earnings attributable to Procter & Gamble. |
CONSOLIDATED_STATEMENTS_OF_OTH
CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME Statement (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $11,785 | $11,402 | $10,904 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 1,044 | 710 | -5,990 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | -347 | 144 | 724 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 9 | -24 | -3 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | -869 | 1,004 | -2,010 |
Other Comprehensive Income (Loss), Net of Tax | -163 | 1,834 | -7,279 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 11,622 | 13,236 | 3,625 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 150 | 94 | 124 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $11,472 | $13,142 | $3,501 |
CONSOLIDATED_STATEMENTS_OF_OTH1
CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME Consolidated Statements of Other Comprehensive Income Parenthetical (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | $209 | $92 | $441 |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | 4 | 5 | 3 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax | $356 | $637 | $993 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $8,558 | $5,947 |
Available-for-sale Securities | 2,128 | 0 |
Accounts receivable | 6,386 | 6,508 |
INVENTORIES | ' | ' |
Materials and supplies | 1,742 | 1,704 |
Work in process | 684 | 722 |
Finished goods | 4,333 | 4,483 |
Total inventories | 6,759 | 6,909 |
Deferred income taxes | 1,092 | 948 |
Prepaid expenses and other current assets | 3,845 | 3,678 |
Assets held for sale | 2,849 | 0 |
TOTAL CURRENT ASSETS | 31,617 | 23,990 |
NET PROPERTY, PLANT AND EQUIPMENT | 22,304 | 21,666 |
Goodwill, Net | 53,704 | 55,188 |
Trademarks and other intangible assets, net | 30,843 | 31,572 |
OTHER NONCURRENT ASSETS | 5,798 | 6,847 |
TOTAL ASSETS | 144,266 | 139,263 |
CURRENT LIABILITIES | ' | ' |
Accounts payable | 8,461 | 8,777 |
Accrued and other liabilities | 8,999 | 8,828 |
Liabilities held for sale | 660 | 0 |
Debt due within one year | 15,606 | 12,432 |
TOTAL CURRENT LIABILITIES | 33,726 | 30,037 |
LONG-TERM DEBT | 19,811 | 19,111 |
DEFERRED INCOME TAXES | 10,218 | 10,827 |
OTHER NONCURRENT LIABILITIES | 10,535 | 10,579 |
TOTAL LIABILITIES | 74,290 | 70,554 |
SHAREHOLDERS' EQUITY | ' | ' |
Common stock, stated value $1 per share (10,000 shares authorized; shares issued: 2014 - 4009.2, 2013 - 4,009.2) | 4,009 | 4,009 |
Additional paid-in capital | 63,911 | 63,538 |
Reserve for ESOP debt retirement | -1,340 | -1,352 |
Accumulated other comprehensive income (loss) | -7,662 | -7,499 |
Treasury stock, at cost (shares held: 2014 - 1,298.4, 2013 - 1,266.9) | -75,805 | -71,966 |
Retained earnings | 84,990 | 80,197 |
Noncontrolling interest | 762 | 645 |
TOTAL SHAREHOLDERS' EQUITY | 69,976 | 68,709 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 144,266 | 139,263 |
Convertible Class A preferred stock | ' | ' |
SHAREHOLDERS' EQUITY | ' | ' |
Preferred stock (Class A - stated value $1 per share, 600 shares authorized) (Class B - stated value $1 per share, 200 shares authorized) | 1,111 | 1,137 |
Non-Voting Class B preferred stock | ' | ' |
SHAREHOLDERS' EQUITY | ' | ' |
Preferred stock (Class A - stated value $1 per share, 600 shares authorized) (Class B - stated value $1 per share, 200 shares authorized) | $0 | $0 |
CONSOLIDATED_BALANCE_SHEETS_Co
CONSOLIDATED BALANCE SHEETS Consolidated Balance Sheets Parenthetical (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Common Stock, Par or Stated Value Per Share | $1 | $1 |
Common Stock, Shares Authorized | 10,000 | 10,000 |
Common Stock, Shares, Issued | 4,009.20 | 4,009.20 |
Treasury Stock, Shares | 1,298.40 | 1,266.90 |
Preferred Class A [Member] | ' | ' |
Preferred Stock, Par or Stated Value Per Share | $1 | $1 |
Preferred Stock, Shares Authorized | 600 | 600 |
Preferred Class B [Member] | ' | ' |
Preferred Stock, Par or Stated Value Per Share | $1 | $1 |
Preferred Stock, Shares Authorized | 200 | 200 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Shares Outstanding | Preferred Stock | Additional Paid-In Capital | Reserve for ESOP Debt Retirement | Accumulated Other Comprehensive Income (loss) | Treasury Stock | Retained Earnings | Noncontrolling Interest |
In Millions, except Share data in Thousands, unless otherwise specified | |||||||||
BEGINNING BALANCE at Jun. 30, 2011 | $68,001 | $4,008 | $1,234 | $62,405 | ($1,357) | ($2,054) | ($67,278) | $70,682 | $361 |
BEGINNING BALANCE (in shares) at Jun. 30, 2011 | ' | 2,765,737 | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings | 10,904 | ' | ' | ' | ' | ' | ' | 10,756 | 148 |
Other Comprehensive Income (Loss), Net of Tax | -7,279 | ' | ' | ' | ' | -7,279 | ' | ' | ' |
Dividends to shareholders: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common | -5,883 | ' | ' | ' | ' | ' | ' | -5,883 | ' |
Preferred dividends, net of tax benefits | -256 | ' | ' | ' | ' | ' | ' | -256 | ' |
Treasury purchases (in shares) | ' | -61,826 | ' | ' | ' | ' | ' | ' | ' |
Treasury purchases | -4,024 | ' | ' | ' | ' | ' | -4,024 | ' | ' |
Employee plan issuances (in shares) | ' | 39,546 | ' | ' | ' | ' | ' | ' | ' |
Employee plan issuances | 2,215 | ' | ' | 550 | ' | ' | 1,665 | ' | ' |
Preferred stock conversions (in shares) | ' | 4,576 | ' | ' | ' | ' | ' | ' | ' |
Preferred stock conversions | 0 | ' | -39 | 6 | ' | ' | 33 | ' | ' |
ESOP debt impacts | 50 | ' | ' | ' | ' | ' | ' | 50 | ' |
Noncontrolling interest | 307 | ' | ' | 220 | ' | ' | ' | ' | 87 |
ENDING BALANCE at Jun. 30, 2012 | 64,035 | 4,008 | 1,195 | 63,181 | -1,357 | -9,333 | -69,604 | 75,349 | 596 |
ENDING BALANCE (in shares) at Jun. 30, 2012 | ' | 2,748,033 | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings | 11,402 | ' | ' | ' | ' | ' | ' | 11,312 | 90 |
Other Comprehensive Income (Loss), Net of Tax | 1,834 | ' | ' | ' | ' | 1,834 | ' | ' | ' |
Dividends to shareholders: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common | -6,275 | ' | ' | ' | ' | ' | ' | -6,275 | ' |
Preferred dividends, net of tax benefits | -244 | ' | ' | ' | ' | ' | ' | -244 | ' |
Treasury purchases (in shares) | ' | -84,234 | ' | ' | ' | ' | ' | ' | ' |
Treasury purchases | -5,986 | ' | ' | ' | ' | ' | -5,986 | ' | ' |
Employee plan issuances (in shares) | ' | 70,923 | ' | ' | ' | ' | ' | ' | ' |
Employee plan issuances | 3,926 | 1 | ' | 352 | ' | ' | 3,573 | ' | ' |
Preferred stock conversions (in shares) | ' | 7,605 | ' | ' | ' | ' | ' | ' | ' |
Preferred stock conversions | 0 | ' | -58 | 7 | ' | ' | 51 | ' | ' |
ESOP debt impacts | 60 | ' | ' | ' | 5 | ' | ' | 55 | ' |
Noncontrolling interest | -43 | ' | ' | -2 | ' | ' | ' | ' | -41 |
ENDING BALANCE at Jun. 30, 2013 | 68,709 | 4,009 | 1,137 | 63,538 | -1,352 | -7,499 | -71,966 | 80,197 | 645 |
ENDING BALANCE (in shares) at Jun. 30, 2013 | ' | 2,742,327 | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings | 11,785 | ' | ' | ' | ' | ' | ' | 11,643 | 142 |
Other Comprehensive Income (Loss), Net of Tax | -163 | ' | ' | ' | ' | -163 | ' | ' | ' |
Dividends to shareholders: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common | -6,658 | ' | ' | ' | ' | ' | ' | -6,658 | ' |
Preferred dividends, net of tax benefits | -253 | ' | ' | ' | ' | ' | ' | -253 | ' |
Treasury purchases (in shares) | ' | -74,987 | ' | ' | ' | ' | ' | ' | ' |
Treasury purchases | -6,005 | ' | ' | ' | ' | ' | -6,005 | ' | ' |
Employee plan issuances (in shares) | ' | 40,288 | ' | ' | ' | ' | ' | ' | ' |
Employee plan issuances | 2,508 | ' | ' | 364 | ' | ' | 2,144 | ' | ' |
Preferred stock conversions (in shares) | ' | 3,178 | ' | ' | ' | ' | ' | ' | ' |
Preferred stock conversions | 0 | ' | -26 | 4 | ' | ' | 22 | ' | ' |
ESOP debt impacts | 73 | ' | ' | ' | 12 | ' | ' | 61 | ' |
Noncontrolling interest | -20 | ' | ' | 5 | ' | ' | ' | ' | -25 |
ENDING BALANCE at Jun. 30, 2014 | $69,976 | $4,009 | $1,111 | $63,911 | ($1,340) | ($7,662) | ($75,805) | $84,990 | $762 |
ENDING BALANCE (in shares) at Jun. 30, 2014 | ' | 2,710,806 | ' | ' | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | $5,947 | $4,436 | $2,768 |
OPERATING ACTIVITIES | ' | ' | ' |
Net earnings | 11,785 | 11,402 | 10,904 |
Depreciation and amortization | 3,141 | 2,982 | 3,204 |
Share-based compensation expense | 360 | 346 | 377 |
Deferred income taxes | -44 | -307 | -65 |
Gain on sale of businesses | -154 | -916 | -2,106 |
Goodwill and Indefinite-lived Intangibles Impairment Charges | 0 | 308 | 1,576 |
Change in accounts receivable | 87 | -415 | -427 |
Change in inventories | 8 | -225 | 77 |
Change in accounts payable, accrued and other liabilities | 1 | 1,253 | -22 |
Change in other operating assets and liabilities | -1,557 | 68 | -444 |
Other | 331 | 377 | 210 |
TOTAL OPERATING ACTIVITIES | 13,958 | 14,873 | 13,284 |
INVESTING ACTIVITIES | ' | ' | ' |
Capital expenditures | -3,848 | -4,008 | -3,964 |
Proceeds from asset sales | 570 | 584 | 2,893 |
Acquisitions, net of cash acquired | -24 | -1,145 | -134 |
Purchases of available-for-sale investment securities | -568 | -1,605 | 0 |
Proceeds from sales of available-for-sale investment securities | 24 | 0 | 0 |
Change in investments | -261 | -121 | 112 |
TOTAL INVESTING ACTIVITIES | -4,107 | -6,295 | -1,093 |
FINANCING ACTIVITIES | ' | ' | ' |
Dividends to shareholders | -6,911 | -6,519 | -6,139 |
Change in short-term debt | 3,304 | 3,406 | -3,412 |
Additions to long-term debt | 4,334 | 2,331 | 3,985 |
Reductions of long-term debt | -4,095 | -3,752 | -2,549 |
Treasury stock purchases | -6,005 | -5,986 | -4,024 |
Impact of stock options and other | 2,094 | 3,449 | 1,729 |
TOTAL FINANCING ACTIVITIES | -7,279 | -7,071 | -10,410 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 39 | 4 | -113 |
CHANGE IN CASH AND CASH EQUIVALENTS | 2,611 | 1,511 | 1,668 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 8,558 | 5,947 | 4,436 |
Cash payments for: | ' | ' | ' |
Interest | 686 | 683 | 740 |
Income Taxes | $3,320 | $3,780 | $4,348 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2014 | |
Notes to Financial Statements [Abstract] | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
NOTE 1 | |
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 retail operations including mass merchandisers, grocery stores, membership club stores, drug stores, department stores, salons, high-frequency stores and e-commerce. 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. Prior year amounts have been reclassified to conform with current year presentation for amounts related to discontinued operations (see Note 13) and segment reporting (see Note 12). | |
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, 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 | |
Sales are recognized when revenue is realized or realizable and has been earned. Revenue transactions represent sales of inventory. 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. Our policy is to recognize revenue when title to the product, ownership and risk of loss transfer to the customer, 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. | |
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, generally 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 manufacture of product, as well as manufacturing labor, depreciation expense and direct overhead expense necessary to acquire and convert the purchased materials and supplies into finished product. 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 $2.0 billion in 2014, 2013 and 2012. Advertising costs, charged to expense as incurred, include worldwide television, print, radio, internet and in-store advertising expenses and were $9.2 billion in 2014, $9.6 billion in 2013 and $9.2 billion in 2012. Non-advertising related components of the Company's total marketing spending include costs associated with consumer promotions, product sampling and sales aids, which are included in SG&A, as well as coupons and customer trade funds, which are recorded as reductions to net sales. | |
Other Non-Operating Income, Net | |
Other non-operating income, net, primarily includes net acquisition and divestiture gains and investment income. | |
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). Currency translation adjustments in accumulated OCI were gains of $1.4 billion and $353 at June 30, 2014 and June 30, 2013, respectively. 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 flow from operating activities. The reconciliation adjustments include the removal of timing differences between the occurrence of operating receipts and payments and their recognition in net earnings. The adjustments also remove cash flows arising from investing and financing activities, which are presented separately from operating activities. Cash flows from foreign currency transactions and operations are translated at an average exchange rate for the 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, commodity or other currency exposures are classified as operating activities. Cash payments related to income taxes are classified as operating activities. Cash flows from the Company's discontinued operations are included in the Consolidated Statements of Cash Flows. | |
Cash Equivalents | |
Highly liquid investments with remaining stated maturities of three months or less when purchased are considered cash equivalents and recorded at cost. | |
Investments | |
Investment securities consist of readily marketable debt and equity securities. Unrealized gains or losses from investments classified as trading, if any, are charged to earnings. Unrealized gains or losses on securities classified as available-for-sale are generally 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. Investment securities are included as available-for-sale investment securities and other current assets or other noncurrent assets in the Consolidated Balance Sheets. | |
Investments in certain companies over which we exert significant influence, but do not control the financial and operating decisions, are accounted for as equity method investments. Other investments that are not controlled, and over which we do not have the ability to exercise significant influence, are accounted for under the cost method. Both equity and cost method investments are included as other noncurrent assets in the Consolidated Balance Sheets. | |
Inventory Valuation | |
Inventories are valued at the lower of cost or market value. Product-related inventories are primarily maintained on the first-in, first-out method. Minor amounts of product inventories, including certain cosmetics and commodities, are maintained on the last-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. The annual evaluation for impairment of goodwill and indefinite-lived intangible assets is based on valuation models that incorporate assumptions and internal projections of expected future cash flows and operating plans. We believe such assumptions are also comparable to those that would be used by other marketplace participants. | |
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, product life cycles, operating plans and the macroeconomic environment of the countries in which the brands are sold. When certain events or changes in operating conditions occur, an 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. | |
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, other 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 5. | |
New Accounting Pronouncements and Policies | |
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” This guidance outlines a single, comprehensive model for accounting for revenue from contracts with customers. We will adopt the standard on July 1, 2017. We are evaluating the impact, if any, that the standard will have on our financial statements. | |
No other new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on the Consolidated Financial Statements. |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | |||||||||||||||||||||
NOTE 2 | ||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||||||||||
The change in the net carrying amount of goodwill by reportable segment was as follows: | ||||||||||||||||||||||
Beauty | Grooming | Health Care | Fabric Care and Home Care | Baby, Feminine and Family Care | Corporate | Total Company | ||||||||||||||||
GOODWILL at JUNE 30, 2012 - Gross | $ | 16,860 | $ | 21,579 | $ | 6,115 | $ | 4,424 | $ | 3,684 | $ | 2,441 | $ | 55,103 | ||||||||
Accumulated impairment losses at June 30, 2012 | (431 | ) | (899 | ) | — | — | — | — | (1,330 | ) | ||||||||||||
GOODWILL at JUNE 30, 2012 - Net | 16,429 | 20,680 | 6,115 | 4,424 | 3,684 | 2,441 | 53,773 | |||||||||||||||
Acquisitions and divestitures | (21 | ) | (40 | ) | — | (14 | ) | 1,090 | — | 1,015 | ||||||||||||
Goodwill impairment charges | — | (259 | ) | — | — | — | — | (259 | ) | |||||||||||||
Translation and other | 255 | 236 | 70 | 43 | 54 | 1 | 659 | |||||||||||||||
GOODWILL at JUNE 30, 2013 - Gross | 17,094 | 21,775 | 6,185 | 4,453 | 4,828 | 2,442 | 56,777 | |||||||||||||||
Accumulated impairment losses at June 30, 2013 | (431 | ) | (1,158 | ) | — | — | — | — | (1,589 | ) | ||||||||||||
GOODWILL at JUNE 30, 2013 - Net | 16,663 | 20,617 | 6,185 | 4,453 | 4,828 | 2,442 | 55,188 | |||||||||||||||
Acquisitions and divestitures | — | — | — | (3 | ) | — | (2,445 | ) | (2,448 | ) | ||||||||||||
Translation and other | 377 | 322 | 95 | 85 | 82 | 3 | 964 | |||||||||||||||
GOODWILL at JUNE 30, 2014 - Gross | 17,471 | 22,097 | 6,280 | 4,535 | 4,910 | — | 55,293 | |||||||||||||||
Accumulated impairment losses at June 30, 2014 | (431 | ) | (1,158 | ) | — | — | — | — | (1,589 | ) | ||||||||||||
GOODWILL at JUNE 30, 2014 - Net | 17,040 | 20,939 | 6,280 | 4,535 | 4,910 | — | 53,704 | |||||||||||||||
On July 31, 2014, the Company completed the divestiture of its Pet Care operations in North America, Latin America and other selected countries. The Company is pursuing alternate plans to sell its Pet Care business in the other markets, primarily the European Union countries. As a result, the Pet Care goodwill is included in the Corporate Segment as of June 30, 2013 and 2012. Pet Care goodwill and intangible assets at June 30, 2014 are reported in assets held for sale. The remaining change in goodwill since June 30, 2013 was primarily due to currency translation across all reportable segments. | ||||||||||||||||||||||
The results of our goodwill impairment testing during fiscal 2013 determined that the estimated fair value of our Appliances reporting unit declined below its carrying amount. As a result, we recorded a non-cash before and after-tax impairment charge of $259, in fiscal 2013, to reduce the carrying amount of goodwill to estimated fair value. We also recorded a non-cash before-tax impairment charge of $49 ($31 after-tax) to reduce the carrying amount of our Braun indefinite-lived trade name intangible asset to its fair value. The fiscal 2013 declines in fair values of the Appliances reporting unit and the Braun trade name intangible asset were primarily driven by currency impacts. Specifically, currency in Japan, a country that generates a significant portion of the Appliances earnings, devalued approximately 20% in the second half of fiscal 2013 relative to the currencies in which the underlying net assets are recorded. This sustained reduction in the yen reduced the underlying category market size and the projected future cash flows of the business, which in turn triggered the impairment. | ||||||||||||||||||||||
In October 2012, the Company acquired our partner's interest in a joint venture in Iberia that operates in our Baby Care and Family Care and Health Care reportable segments. We paid $1.1 billion for our partner's interest and the transaction was accounted for as a business combination. The total enterprise value of $1.9 billion was allocated to indefinite-lived intangible assets of $0.2 billion, defined-life intangible assets of $0.9 billion and goodwill of $1.1 billion. These were partially offset by $0.3 billion of deferred tax liabilities on the intangible assets. The Company recognized a $0.6 billion holding gain on its previously held investment, which was included in other non-operating income, net in the Consolidated Statement of Earnings in fiscal 2013. In addition to these items and the impairment discussed above, the remaining net increase in goodwill during fiscal 2013 was primarily due to currency translation across all reportable segments. | ||||||||||||||||||||||
The results of our goodwill impairment testing during fiscal 2012 determined that the estimated fair values of our Appliances and Salon Professional reporting units were less than their respective carrying amounts. As a result, we recorded a non-cash before and after-tax impairment charge of $1.3 billion in fiscal 2012 to reduce the carrying amount of goodwill to estimated fair value. $899 of the impairment related to Appliances and $431 related to Salon Professional. Our impairment testing for indefinite-lived intangible assets during fiscal 2012 also indicated a decline in the fair value of our Koleston Perfect and Wella trade name intangible assets below their respective carrying values. This resulted in a non-cash before-tax impairment charge of $246 ($173 after-tax) to reduce the carrying amounts of these assets to their respective values. The fiscal 2012 declines in the fair values of the Appliances and Salon Professional reporting units and the underlying Koleston Perfect and Wella trade name intangible assets were driven by a combination of competitive and economic factors, which resulted in a reduction in the forecasted growth rates and cash flows used to estimate fair value. | ||||||||||||||||||||||
All of the goodwill and indefinite-lived intangible asset impairment charges are included in Corporate for segment reporting. | ||||||||||||||||||||||
The goodwill and intangible asset valuations are dependent on a number of significant estimates and assumptions, including macroeconomic conditions, overall category growth rates, competitive activities, cost containment and margin expansion and Company business plans. We believe these estimates and assumptions are reasonable. 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 used to estimate fair value, we may need to record additional non-cash impairment charges in the future. | ||||||||||||||||||||||
Identifiable intangible assets were comprised of: | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
June 30 | Gross | Accumulated | Gross | Accumulated | ||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||
INTANGIBLE ASSETS WITH DETERMINABLE LIVES | ||||||||||||||||||||||
Brands | $ | 4,154 | $ | (2,205 | ) | $ | 4,251 | $ | (2,020 | ) | ||||||||||||
Patents and technology | 2,850 | (2,082 | ) | 2,976 | (2,032 | ) | ||||||||||||||||
Customer relationships | 2,002 | (763 | ) | 2,118 | (703 | ) | ||||||||||||||||
Other | 355 | (164 | ) | 348 | (168 | ) | ||||||||||||||||
TOTAL | 9,361 | (5,214 | ) | 9,693 | (4,923 | ) | ||||||||||||||||
INTANGIBLE ASSETS WITH INDEFINITE LIVES | ||||||||||||||||||||||
Brands | 26,696 | — | 26,802 | — | ||||||||||||||||||
TOTAL | 36,057 | (5,214 | ) | 36,495 | (4,923 | ) | ||||||||||||||||
Due to the divestiture of the Pet Care business, intangible assets specific to the Pet Care business are reported in assets held for sale in accordance with the accounting principles for assets held for sale as of June 30, 2014. | ||||||||||||||||||||||
Amortization expense of intangible assets was as follows: | ||||||||||||||||||||||
Years ended June 30 | 2014 | 2013 | 2012 | |||||||||||||||||||
Intangible asset amortization | $ | 514 | $ | 528 | $ | 500 | ||||||||||||||||
Estimated amortization expense over the next five fiscal years is as follows: | ||||||||||||||||||||||
Years ended June 30 | 2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||||||
Estimated amortization expense | $ | 432 | $ | 393 | $ | 360 | $ | 332 | $ | 309 | ||||||||||||
These estimates do not reflect the impact of future foreign exchange rate changes. |
SUPPLEMENTAL_FINANCIAL_INFORMA
SUPPLEMENTAL FINANCIAL INFORMATION | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||||||||
SUPPLEMENTAL FINANCIAL INFORMATION | ' | |||||||||||||||
NOTE 3 | ||||||||||||||||
SUPPLEMENTAL FINANCIAL INFORMATION | ||||||||||||||||
The components of property, plant and equipment were as follows: | ||||||||||||||||
June 30 | 2014 | 2013 | ||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||||||||||
Buildings | $ | 8,022 | $ | 7,829 | ||||||||||||
Machinery and equipment | 32,398 | 31,070 | ||||||||||||||
Land | 893 | 878 | ||||||||||||||
Construction in progress | 3,114 | 3,235 | ||||||||||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT | 44,427 | 43,012 | ||||||||||||||
Accumulated depreciation | (22,123 | ) | (21,346 | ) | ||||||||||||
PROPERTY, PLANT AND EQUIPMENT, NET | 22,304 | 21,666 | ||||||||||||||
Selected components of current and noncurrent liabilities were as follows: | ||||||||||||||||
June 30 | 2014 | 2013 | ||||||||||||||
ACCRUED AND OTHER LIABILITIES - CURRENT | ||||||||||||||||
Marketing and promotion | $ | 3,290 | $ | 3,122 | ||||||||||||
Compensation expenses | 1,647 | 1,665 | ||||||||||||||
Restructuring reserves | 381 | 323 | ||||||||||||||
Taxes payable | 711 | 817 | ||||||||||||||
Legal and environmental | 399 | 374 | ||||||||||||||
Other | 2,571 | 2,527 | ||||||||||||||
TOTAL | 8,999 | 8,828 | ||||||||||||||
OTHER NONCURRENT LIABILITIES | ||||||||||||||||
Pension benefits | $ | 5,984 | $ | 6,027 | ||||||||||||
Other postretirement benefits | 1,906 | 1,713 | ||||||||||||||
Uncertain tax positions | 1,843 | 2,002 | ||||||||||||||
Other | 802 | 837 | ||||||||||||||
TOTAL | 10,535 | 10,579 | ||||||||||||||
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 2012, the Company initiated an incremental restructuring program as part of a productivity and cost savings plan to reduce costs in the areas of supply chain, research and development, marketing and overheads. 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. | ||||||||||||||||
The Company expects to incur in excess of $4.5 billion in before-tax restructuring costs over a five year period (from fiscal 2012 through fiscal 2016), including costs incurred as part of the ongoing and incremental restructuring program. Through the end of fiscal 2014, we had incurred $2.8 billion of the total expected restructuring charges under the program. The restructuring program plans included a targeted net reduction in non-manufacturing overhead enrollment of approximately 16% - 22% through fiscal 2016, which we expect to exceed. Through fiscal 2014, the Company has reduced non-manufacturing enrollment by approximately 9,300, or approximately 15%. The reductions are enabled by the elimination of duplicate work, simplification through the use of technology, optimization of various functional and business organizations and the Company's global footprint. In addition, the plan includes integration of newly acquired companies and the 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 as outlined below. The Company incurred total restructuring charges of approximately $806 and $956 for the years ended June 30, 2014 and 2013, respectively. Approximately $373 and $591 of these charges were recorded in SG&A for the years ended June 30, 2014 and 2013, respectively. Approximately $399 and $354 of these charges were recorded in cost of products sold for the years ended June 30, 2014 and 2013, respectively. The remainder is included in discontinued operations. Since the inception of this restructuring program, the Company has incurred charges of approximately $2.8 billion. Approximately $1.5 billion of these charges were related to separations, $666 were asset-related and $680 were related to other restructuring-type costs. The following table presents restructuring activity for the years ended June 30, 2014 and 2013: | ||||||||||||||||
Separations | Asset-Related Costs | Other | Total | |||||||||||||
RESERVE JUNE 30, 2012 | $ | 316 | $ | — | $ | 27 | $ | 343 | ||||||||
Charges | 595 | 109 | 252 | 956 | ||||||||||||
Cash spent | (615 | ) | — | (252 | ) | (867 | ) | |||||||||
Charges against assets | — | (109 | ) | — | (109 | ) | ||||||||||
RESERVE JUNE 30, 2013 | 296 | — | 27 | 323 | ||||||||||||
Charges | 378 | 179 | 249 | 806 | ||||||||||||
Cash spent | (321 | ) | — | (248 | ) | (569 | ) | |||||||||
Charges against assets | — | (179 | ) | — | (179 | ) | ||||||||||
RESERVE JUNE 30, 2014 | 353 | — | 28 | 381 | ||||||||||||
Separation Costs | ||||||||||||||||
Employee separation charges for the years ended June 30, 2014 and 2013 relate to severance packages for approximately 2,730 and 3,450 employees, respectively. For the years ended June 30, 2014 and 2013, these severance packages include approximately 1,640 and 2,390 non-manufacturing employees, respectively. These separations are primarily in North America and Western Europe. The packages are predominantly voluntary and the amounts are 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. Since its inception, the restructuring program has incurred separation charges related to approximately 9,480 employees, of which approximately 6,280 are non-manufacturing overhead personnel. | ||||||||||||||||
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 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 standardization. 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 employee relocation related to separations and office consolidations, termination of contracts related to supply chain redesign and the cost to change internal systems and processes to support the underlying organizational changes. | ||||||||||||||||
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 charges under the program are included within the Corporate reportable segment. However, for informative purposes, the following table summarizes the total restructuring costs related to our reportable segments: | ||||||||||||||||
Years Ended June 30 | 2014 | 2013 | ||||||||||||||
Beauty | $ | 83 | $ | 132 | ||||||||||||
Grooming | 20 | 50 | ||||||||||||||
Health Care | 10 | 14 | ||||||||||||||
Fabric Care and Home Care | 121 | 140 | ||||||||||||||
Baby, Feminine and Family Care | 155 | 129 | ||||||||||||||
Corporate (1) | 417 | 491 | ||||||||||||||
Total Company | 806 | 956 | ||||||||||||||
(1) Corporate includes costs related to allocated overheads, including charges related to our SMO, Global Business Services and Corporate Functions activities and costs related to discontinued operations from our divested Pet Care business. |
SHORTTERM_AND_LONGTERM_DEBT
SHORT-TERM AND LONG-TERM DEBT | 12 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||||||||||||
SHORT-TERM AND LONG-TERM DEBT | ' | |||||||||||||||||||
NOTE 4 | ||||||||||||||||||||
SHORT-TERM AND LONG-TERM DEBT | ||||||||||||||||||||
June 30 | 2014 | 2013 | ||||||||||||||||||
DEBT DUE WITHIN ONE YEAR | ||||||||||||||||||||
Current portion of long-term debt | $ | 4,307 | $ | 4,506 | ||||||||||||||||
Commercial paper | 10,818 | 7,642 | ||||||||||||||||||
Other | 481 | 284 | ||||||||||||||||||
TOTAL | 15,606 | 12,432 | ||||||||||||||||||
Short-term weighted average interest rates(1) | 0.7 | % | 0.5 | % | ||||||||||||||||
(1) Weighted average short-term interest rates include the effects of interest rate swaps discussed in Note 5. | ||||||||||||||||||||
June 30 | 2014 | 2013 | ||||||||||||||||||
LONG-TERM DEBT | ||||||||||||||||||||
4.95% USD note due August 2014 | $ | 900 | $ | 900 | ||||||||||||||||
0.70% USD note due August 2014 | 1,000 | 1,000 | ||||||||||||||||||
3.50% USD note due February 2015 | 750 | 750 | ||||||||||||||||||
0.95% JPY note due May 2015 | 987 | 1,012 | ||||||||||||||||||
3.15% USD note due September 2015 | 500 | 500 | ||||||||||||||||||
1.80% USD note due November 2015 | 1,000 | 1,000 | ||||||||||||||||||
4.85% USD note due December 2015 | 700 | 700 | ||||||||||||||||||
1.45% USD note due August 2016 | 1,000 | 1,000 | ||||||||||||||||||
0.75% USD note due November 2016 | 500 | — | ||||||||||||||||||
Floating rate USD note due November 2016 | 500 | — | ||||||||||||||||||
5.13% EUR note due October 2017 | 1,501 | 1,437 | ||||||||||||||||||
1.60% USD note due November 2018 | 1,000 | — | ||||||||||||||||||
4.70% USD note due February 2019 | 1,250 | 1,250 | ||||||||||||||||||
4.13% EUR note due December 2020 | 819 | 784 | ||||||||||||||||||
9.36% ESOP debentures due 2014-2021(1) | 640 | 701 | ||||||||||||||||||
2.00% EUR note due November 2021 | 1,023 | — | ||||||||||||||||||
2.30% USD note due February 2022 | 1,000 | 1,000 | ||||||||||||||||||
2.00% EUR note due August 2022 | 1,365 | 1,307 | ||||||||||||||||||
3.10% USD note due August 2023 | 1,000 | — | ||||||||||||||||||
4.88% EUR note due May 2027 | 1,365 | 1,307 | ||||||||||||||||||
6.25% GBP note due January 2030 | 851 | 764 | ||||||||||||||||||
5.50% USD note due February 2034 | 500 | 500 | ||||||||||||||||||
5.80% USD note due August 2034 | 600 | 600 | ||||||||||||||||||
5.55% USD note due March 2037 | 1,400 | 1,400 | ||||||||||||||||||
Capital lease obligations | 83 | 31 | ||||||||||||||||||
All other long-term debt | 1,884 | 5,674 | ||||||||||||||||||
Current portion of long-term debt | (4,307 | ) | (4,506 | ) | ||||||||||||||||
TOTAL | 19,811 | 19,111 | ||||||||||||||||||
Long-term weighted average interest rates(2) | 3.2 | % | 3.3 | % | ||||||||||||||||
(1) | Debt issued by the ESOP is guaranteed by the Company and must be recorded as debt of the Company, as discussed in Note 9. | |||||||||||||||||||
(2) | Weighted average long-term interest rates include the effects of interest rate swaps discussed in Note 5. | |||||||||||||||||||
Long-term debt maturities during the next five fiscal years are as follows: | ||||||||||||||||||||
June 30 | 2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||||
Debt maturities | $ | 4,307 | $ | 2,356 | $ | 2,123 | $ | 1,605 | $ | 2,357 | ||||||||||
The Procter & Gamble Company fully and unconditionally guarantees the registered debt and securities issued by its 100% finance subsidiaries. |
RISK_MANAGEMENT_ACTIVITIES_AND
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS | 12 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||||||||||||||||||||||||
Risk Management & Fair Value Measurement | ' | |||||||||||||||||||||||||||||||
NOTE 5 | ||||||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||||||
At inception, we formally designate and document qualifying instruments as hedges of underlying exposures. We formally assess, at inception and at least quarterly thereafter, whether the financial instruments used in hedging transactions are effective at offsetting changes in either the fair value or cash flows of the related underlying exposures. Fluctuations in the value of these instruments generally are offset by changes in the fair value or cash flows of the underlying exposures being hedged. This is driven by the high degree of effectiveness between the exposure being hedged and the hedging instrument. The ineffective portion of a change in the fair value of a qualifying instrument is immediately recognized in earnings. The amount of ineffectiveness recognized was immaterial for all years presented. | ||||||||||||||||||||||||||||||||
Credit Risk Management | ||||||||||||||||||||||||||||||||
We have counterparty credit guidelines and normally enter into transactions with investment grade financial institutions. 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, 2014, 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. | ||||||||||||||||||||||||||||||||
Interest rate swaps that meet specific accounting criteria are accounted for as fair value or cash flow 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 interest expense. For cash flow hedges, the effective portion of the changes in fair value of the hedging instrument is reported in OCI and reclassified into interest expense over the life of the underlying debt obligation. The ineffective portion for both cash flow and fair value hedges, which was not material for any year presented, was immediately recognized in interest expense. | ||||||||||||||||||||||||||||||||
Foreign Currency Risk Management | ||||||||||||||||||||||||||||||||
We manufacture and sell our products and finance operations in a number of countries throughout the world. As a result, we are exposed to movements in foreign currency exchange rates. | ||||||||||||||||||||||||||||||||
To manage the exchange rate risk primarily associated with our financing operations, we have historically used a combination of forward contracts, options and currency swaps. As of June 30, 2014, we had currency swaps with maturities up to five years, which are intended to offset the effect of exchange rate fluctuations on intercompany loans denominated in foreign currencies. These swaps are accounted for as cash flow hedges. The effective portion of the changes in fair value of these instruments is reported in OCI and reclassified into SG&A and interest expense in the same period or periods during which the related hedged transactions affect earnings. The ineffective portion, which was not material for any year presented, was immediately recognized in SG&A. | ||||||||||||||||||||||||||||||||
The change in fair values of certain non-qualifying instruments used to manage foreign exchange exposure of intercompany financing transactions and certain balance sheet items subject to revaluation are immediately recognized in earnings, substantially offsetting the foreign currency mark-to-market impact of the related exposures. | ||||||||||||||||||||||||||||||||
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 OCI to offset the change in the value of the net investment being hedged. The ineffective portion of these hedges, which was not material in any year presented, was immediately recognized in interest expense. | ||||||||||||||||||||||||||||||||
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. To manage the volatility related to anticipated purchases of certain of these materials, we have historically, on a limited basis, used futures and options with maturities generally less than one year and swap contracts with maturities up to five years. As of and during the years ended June 30, 2014 and 2013, we did not have any commodity hedging activity. | ||||||||||||||||||||||||||||||||
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, by contract or deemed to be in the best interest of the Company. | ||||||||||||||||||||||||||||||||
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. Our fair value estimates take into consideration the credit risk of both the Company and our counterparties. | ||||||||||||||||||||||||||||||||
When active market quotes are not available for financial assets and liabilities, we use industry standard valuation models. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including credit risk, interest rate curves, foreign currency rates and forward and spot prices for currencies. In circumstances where market-based observable inputs are not available, management judgment is used to develop assumptions to estimate fair value. Generally, the fair value of our Level 3 instruments is estimated as the net present value of expected future cash flows based on external inputs. | ||||||||||||||||||||||||||||||||
The following table sets forth the Company's financial assets and liabilities as of June 30, 2014 and 2013 that were measured at fair value on a recurring basis during the period, segregated by level within the fair value hierarchy: | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
June 30 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
ASSETS RECORDED AT FAIR VALUE | ||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||
U.S. government securities | $ | — | $ | — | $ | 1,631 | $ | 1,571 | $ | — | $ | — | $ | 1,631 | $ | 1,571 | ||||||||||||||||
Corporate bond securities | — | — | 497 | — | — | — | 497 | — | ||||||||||||||||||||||||
Other investments | 6 | 23 | — | — | 24 | 24 | 30 | 47 | ||||||||||||||||||||||||
Derivatives relating to: | ||||||||||||||||||||||||||||||||
Foreign currency hedges | — | — | 187 | 168 | — | — | 187 | 168 | ||||||||||||||||||||||||
Other foreign currency instruments(1) | — | — | 24 | 19 | — | — | 24 | 19 | ||||||||||||||||||||||||
Interest rates | — | — | 197 | 191 | — | — | 197 | 191 | ||||||||||||||||||||||||
Net investment hedges | — | — | 49 | 233 | — | — | 49 | 233 | ||||||||||||||||||||||||
TOTAL ASSETS RECORDED AT FAIR VALUE(2) | 6 | 23 | 2,585 | 2,182 | 24 | 24 | 2,615 | 2,229 | ||||||||||||||||||||||||
LIABILITIES RECORDED AT FAIR VALUE | ||||||||||||||||||||||||||||||||
Derivatives relating to: | ||||||||||||||||||||||||||||||||
Other foreign currency instruments(1) | — | — | 66 | 90 | — | — | 66 | 90 | ||||||||||||||||||||||||
Interest rates | — | — | 29 | 59 | — | — | 29 | 59 | ||||||||||||||||||||||||
Net investment hedges | — | — | 1 | — | — | — | 1 | — | ||||||||||||||||||||||||
TOTAL LIABILITIES AT FAIR VALUE(3) | — | — | 96 | 149 | — | — | 96 | 149 | ||||||||||||||||||||||||
LIABILITIES NOT RECORDED AT FAIR VALUE | ||||||||||||||||||||||||||||||||
Long-term debt (4) | 24,747 | 22,671 | 1,682 | 3,022 | — | — | 26,429 | 25,693 | ||||||||||||||||||||||||
TOTAL LIABILITIES RECORDED AND NOT RECORDED AT FAIR VALUE | 24,747 | 22,671 | 1,778 | 3,171 | — | — | 26,525 | 25,842 | ||||||||||||||||||||||||
(1) | Other foreign currency instruments are comprised of foreign currency financial instruments that do not qualify as hedges. | |||||||||||||||||||||||||||||||
(2) | All derivative assets are presented in Prepaid expenses and other current assets and Other noncurrent assets. Investment securities are presented in Available-for-sale investment securities and Other noncurrent assets, except the U.S. government securities are included in Other noncurrent assets in our Consolidated Balance Sheets at June 30, 2013. The amortized cost of the U.S. government securities was $1,649 and $1,604 as of June 30, 2014 and 2013, respectively. All U.S. government securities have contractual maturities between one and five years. The amortized cost of the corporate bond securities was $497 as of June 30, 2014. The amortized cost and fair value of corporate bond securities with maturities of less than a year was $39 as of June 30, 2014. The amortized cost and fair value of corporate bond securities with maturities between one and five years was $458 as of June 30, 2014. Fair values are generally estimated based upon quoted market prices for similar instruments. | |||||||||||||||||||||||||||||||
(3) | All liabilities are presented in accrued and other liabilities or other noncurrent liabilities. | |||||||||||||||||||||||||||||||
(4) | Long-term debt includes the current portion ($4,400 and $4,540 as of June 30, 2014 and 2013, respectively) of debt instruments. Long-term debt is not recorded at fair value on a recurring basis, but is measured at fair value for disclosure purposes. Fair values are generally estimated based on quoted market prices for identical or similar instruments. | |||||||||||||||||||||||||||||||
The Company recognizes transfers between levels within the fair value hierarchy, if any, at the end of each quarter. During fiscal 2013, the Company transferred long-term debt with a fair value of $455 from Level 1 to Level 2. The transferred instruments represent the Company's outstanding industrial development bonds which are infrequently traded in an observable market. There were no additional 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. | ||||||||||||||||||||||||||||||||
During fiscal 2013, we recorded impairments of certain goodwill and intangible assets. Also, during fiscal 2013, we applied purchase accounting and re-measured assets and liabilities at fair value related to the purchase of the balance of a joint venture in Iberia (see Note 2 for additional details on these items). Except for these items, there were no significant assets or liabilities that were re-measured at fair value on a non-recurring basis during fiscal 2013 or 2014. | ||||||||||||||||||||||||||||||||
Disclosures about Derivative Instruments | ||||||||||||||||||||||||||||||||
The notional amounts and fair values of qualifying and non-qualifying financial instruments used in hedging transactions as of June 30, 2014 and 2013 are as follows: | ||||||||||||||||||||||||||||||||
Notional Amount | Fair Value Asset/(Liability) | |||||||||||||||||||||||||||||||
June 30 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
DERIVATIVES IN CASH FLOW HEDGING RELATIONSHIPS | ||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | 951 | $ | 951 | $ | 187 | $ | 168 | ||||||||||||||||||||||||
DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 9,738 | $ | 9,117 | $ | 168 | $ | 132 | ||||||||||||||||||||||||
DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS | ||||||||||||||||||||||||||||||||
Net investment hedges | $ | 831 | $ | 1,303 | $ | 48 | $ | 233 | ||||||||||||||||||||||||
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | ||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | 12,111 | $ | 7,080 | $ | (42 | ) | $ | (71 | ) | ||||||||||||||||||||||
The total notional amount of contracts outstanding at the end of the period is indicative of the level of the Company's derivative activity during the period. The notional balance of foreign currency contracts changes during the period reflects changes in the level of intercompany financing activity. | ||||||||||||||||||||||||||||||||
Amount of Gain/(Loss) | ||||||||||||||||||||||||||||||||
Recognized in | ||||||||||||||||||||||||||||||||
AOCI | ||||||||||||||||||||||||||||||||
on Derivatives | ||||||||||||||||||||||||||||||||
(Effective Portion) | ||||||||||||||||||||||||||||||||
30-Jun | 2014 | 2013 | ||||||||||||||||||||||||||||||
DERIVATIVES IN CASH FLOW HEDGING RELATIONSHIPS | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 3 | $ | 7 | ||||||||||||||||||||||||||||
Foreign currency contracts | 14 | 14 | ||||||||||||||||||||||||||||||
TOTAL | 17 | 21 | ||||||||||||||||||||||||||||||
DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS | ||||||||||||||||||||||||||||||||
Net investment hedges | $ | 30 | $ | 145 | ||||||||||||||||||||||||||||
During the next 12 months, the amount of the June 30, 2014, accumulated OCI balance that will be reclassified to earnings is expected to be immaterial. | ||||||||||||||||||||||||||||||||
The amounts of gains and losses included in earnings from qualifying and non-qualifying financial instruments used in hedging transactions for the years ended June 30, 2014 and 2013 were as follows: | ||||||||||||||||||||||||||||||||
Amount of Gain/(Loss) | ||||||||||||||||||||||||||||||||
Reclassified from | ||||||||||||||||||||||||||||||||
AOCI into Earnings | ||||||||||||||||||||||||||||||||
Years ended June 30 | 2014 | 2013 | ||||||||||||||||||||||||||||||
DERIVATIVES IN CASH FLOW HEDGING RELATIONSHIPS | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 6 | $ | 6 | ||||||||||||||||||||||||||||
Foreign currency contracts | 38 | 215 | ||||||||||||||||||||||||||||||
TOTAL | 44 | 221 | ||||||||||||||||||||||||||||||
Amount of Gain/(Loss) | ||||||||||||||||||||||||||||||||
Recognized in Earnings | ||||||||||||||||||||||||||||||||
Years ended June 30 | 2014 | 2013 | ||||||||||||||||||||||||||||||
DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 36 | $ | (167 | ) | |||||||||||||||||||||||||||
Debt | (37 | ) | 171 | |||||||||||||||||||||||||||||
TOTAL | (1 | ) | 4 | |||||||||||||||||||||||||||||
DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS | ||||||||||||||||||||||||||||||||
Net investment hedges | $ | — | $ | (2 | ) | |||||||||||||||||||||||||||
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | ||||||||||||||||||||||||||||||||
Foreign currency contracts(1) | $ | 123 | $ | (34 | ) | |||||||||||||||||||||||||||
(1) | The gain or loss on non-qualifying foreign currency contracts substantially offsets the foreign currency mark-to-market impact of the related exposure. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (Notes) | 12 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Accumulated Other Comprehensive Income [Text Block] | ' | ||||||||||||||||||||
NOTE 6 | |||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | |||||||||||||||||||||
The tables below present the changes in accumulated other comprehensive income/(loss) by component and the reclassifications out of accumulated other comprehensive income/(loss): | |||||||||||||||||||||
Changes in Accumulated Other Comprehensive Income/(Loss) by Component | |||||||||||||||||||||
Hedges | Investment Securities | Pension and Other Retiree Benefits | Financial Statement Translation | Total | |||||||||||||||||
Balance at June 30, 2012 | $ | (3,673 | ) | $ | (3 | ) | $ | (5,300 | ) | $ | (357 | ) | $ | (9,333 | ) | ||||||
OCI before reclassifications (1) | 363 | (24 | ) | 731 | 710 | 1,780 | |||||||||||||||
Amounts reclassified from AOCI | (219 | ) | — | 273 | — | 54 | |||||||||||||||
Net current period OCI | 144 | (24 | ) | 1,004 | 710 | 1,834 | |||||||||||||||
Balance at June 30, 2013 | (3,529 | ) | (27 | ) | (4,296 | ) | 353 | (7,499 | ) | ||||||||||||
OCI before reclassifications (2) | (305 | ) | 20 | (1,113 | ) | 1,044 | (354 | ) | |||||||||||||
Amounts reclassified from AOCI | (42 | ) | (11 | ) | 244 | — | 191 | ||||||||||||||
Net current period OCI | (347 | ) | 9 | (869 | ) | 1,044 | (163 | ) | |||||||||||||
Balance at June 30, 2014 | (3,876 | ) | (18 | ) | (5,165 | ) | 1,397 | (7,662 | ) | ||||||||||||
(1) Net of tax (benefit) / expense of $94, $(5) and $496 for gains / losses on hedges, investment securities and pension and other retiree benefit items, respectively. | |||||||||||||||||||||
(2) Net of tax (benefit) / expense of $(207), $3, and $(450) for gains and losses on hedges, investment securities and pension and other retiree benefit items, respectively. | |||||||||||||||||||||
Reclassifications out of Accumulated Other Comprehensive Income/(Loss) | |||||||||||||||||||||
Years ended June 30 | 2014 | 2013 | |||||||||||||||||||
Hedges (1) | |||||||||||||||||||||
Interest rate contracts | $ | 6 | $ | 6 | |||||||||||||||||
Foreign exchange contracts | 38 | 215 | |||||||||||||||||||
Total before-tax | 44 | 221 | |||||||||||||||||||
Tax (expense)/benefit | (2 | ) | (2 | ) | |||||||||||||||||
Net of tax | 42 | 219 | |||||||||||||||||||
Gains / (losses) on Investment Securities (2) | 18 | — | |||||||||||||||||||
Tax (expense)/benefit | (7 | ) | — | ||||||||||||||||||
Net of tax | 11 | — | |||||||||||||||||||
Pension and Other Retiree Benefits (3) | |||||||||||||||||||||
Amortization of deferred amounts | (6 | ) | 2 | ||||||||||||||||||
Recognized net actuarial gains/(losses) | (332 | ) | (412 | ) | |||||||||||||||||
Curtailments and settlements | — | (4 | ) | ||||||||||||||||||
Total before-tax | (338 | ) | (414 | ) | |||||||||||||||||
Tax (expense)/benefit | 94 | 141 | |||||||||||||||||||
Net of tax | (244 | ) | (273 | ) | |||||||||||||||||
Total reclassifications, net of tax | (191 | ) | (54 | ) | |||||||||||||||||
(1) See Note 5 for classification of these items in the Consolidated Statements of Earnings. | |||||||||||||||||||||
(2) Reclassified from AOCI into Other non-operating income, net. | |||||||||||||||||||||
(3) Reclassified from AOCI into Cost of products sold and SG&A. These components are included in the computation of net periodic pension cost (see Note 9 for additional details). |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Notes to Financial Statements [Abstract] | ' | ||||||||||||
EARNINGS PER SHARE | ' | ||||||||||||
NOTE 7 | |||||||||||||
EARNINGS PER SHARE | |||||||||||||
Net earnings attributable to Procter & Gamble less preferred dividends (net of related tax benefits) are divided by the weighted average number of common shares outstanding during the year to calculate basic net earnings per common share. Diluted net earnings per common share are calculated to give effect to stock options and other stock-based awards (see Note 8) and assume conversion of preferred stock (see Note 9). | |||||||||||||
Net earnings attributable to Procter & Gamble and common shares used to calculate basic and diluted net earnings per share were as follows: | |||||||||||||
Years ended June 30 | 2014 | 2013 | 2012 | ||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | $ | 11,707 | $ | 11,301 | $ | 9,150 | |||||||
Net earnings from discontinued operations | 78 | 101 | 1,754 | ||||||||||
NET EARNINGS | 11,785 | 11,402 | 10,904 | ||||||||||
Net earnings attributable to noncontrolling interests | (142 | ) | (90 | ) | (148 | ) | |||||||
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE (DILUTED) | 11,643 | 11,312 | 10,756 | ||||||||||
Preferred dividends, net of tax benefit | (253 | ) | (244 | ) | (256 | ) | |||||||
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE AVAILABLE TO COMMON SHAREHOLDERS (BASIC) | 11,390 | 11,068 | 10,500 | ||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO PROCTER & GAMBLE AVAILABLE TO COMMON SHAREHOLDERS (BASIC) | $ | 11,312 | $ | 10,967 | $ | 8,746 | |||||||
NET EARNINGS FROM CONTINUTING OPERATIONS ATTRIBUTABLE TO PROCTER & GAMBLE (DILUTED) | $ | 11,565 | $ | 11,211 | $ | 9,002 | |||||||
Shares in millions; Years ended June 30 | 2014 | 2013 | 2012 | ||||||||||
Basic weighted average common shares outstanding | 2,719.80 | 2,742.90 | 2,751.30 | ||||||||||
Effect of dilutive securities | |||||||||||||
Conversion of preferred shares(1) | 112.3 | 116.8 | 123.9 | ||||||||||
Exercise of stock options and other unvested equity awards (2) | 72.6 | 70.9 | 66 | ||||||||||
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 2,904.70 | 2,930.60 | 2,941.20 | ||||||||||
BASIC NET EARNINGS PER COMMON SHARE (3) | |||||||||||||
Earnings from continuing operations | $ | 4.16 | $ | 4 | $ | 3.18 | |||||||
Earnings from discontinued operations | 0.03 | 0.04 | 0.64 | ||||||||||
BASIC NET EARNINGS PER COMMON SHARE | 4.19 | 4.04 | 3.82 | ||||||||||
DILUTED NET EARNINGS PER COMMON SHARE (3) | |||||||||||||
Earnings from continuing operations | $ | 3.98 | $ | 3.83 | $ | 3.06 | |||||||
Earnings from discontinued operations | 0.03 | 0.03 | 0.6 | ||||||||||
DILUTED NET EARNINGS PER COMMON SHARE | 4.01 | 3.86 | 3.66 | ||||||||||
(1) | Despite being included currently 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. | ||||||||||||
(2) | Approximately 9 million in 2014, 12 million in 2013 and 67 million in 2012 of the Company's outstanding stock options 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 total proceeds upon exercise would have exceeded the market value of the underlying common shares). | ||||||||||||
(3) | Basic net earnings per common share and diluted net earnings per common share are calculated on net earnings attributable to Procter & Gamble. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||||||
STOCK-BASED COMPENSATION | ' | |||||||||||||
NOTE 8 | ||||||||||||||
STOCK-BASED COMPENSATION | ||||||||||||||
We have stock-based compensation plans under which we annually grant stock option, restricted stock, restricted stock unit (RSU) and performance stock unit (PSU) awards to key managers and directors. Exercise prices on options granted have been, and continue to be, set equal to the market price of the underlying shares on the date of the grant. Since September 2002, the key manager stock option awards granted vest after three years and have a 10-year life. The key manager stock option awards granted from July 1998 through August 2002 vested after three years and have a 15-year life. Key managers can elect to receive up to the entire value of their option award in RSUs. Key manager RSUs vest and are settled in shares of common stock five years from the grant date. The awards provided to the Company's directors are in the form of restricted stock and RSUs. | ||||||||||||||
In addition to our key manager and director grants, we make other minor stock option and RSU grants to employees for which the terms are not substantially different than those described in the preceding paragraph. In 2011, we implemented a performance stock program (PSP) and granted PSUs to senior level executives. Under this program, the number of PSUs that will vest three years after the respective grant date is based on the Company's performance relative to pre-established performance goals during that three year period. | ||||||||||||||
A total of 180 million shares of common stock were authorized for issuance under stock-based compensation plans approved by shareholders in 2003 and 2009. A total of 27 million shares remain available for grant under the 2003 and 2009 plans. | ||||||||||||||
Total stock-based compensation expense for stock option grants was $246, $249 and $317 for 2014, 2013 and 2012, respectively. Total compensation expense for restricted stock, RSUs and PSUs was $114, $97 and $60 in 2014, 2013 and 2012, respectively. The total income tax benefit recognized in the income statement for stock options, restricted stock, RSUs and PSUs was $127, $96 and $102 in 2014, 2013 and 2012, respectively. | ||||||||||||||
In calculating the compensation expense for stock options granted, we utilize a binomial lattice-based valuation model. Assumptions utilized in the model, which are evaluated and revised as necessary, to reflect market conditions and experience, were as follows: | ||||||||||||||
Years ended June 30 | 2014 | 2013 | 2012 | |||||||||||
Interest rate | 0.1-2.8% | 0.2-2.0% | 0.2-2.1% | |||||||||||
Weighted average interest rate | 2.5 | % | 1.8 | % | 1.9 | % | ||||||||
Dividend yield | 3.1 | % | 2.9 | % | 2.6 | % | ||||||||
Expected volatility | 15-17% | 14-15% | 12-18% | |||||||||||
Weighted average volatility | 16 | % | 15 | % | 15 | % | ||||||||
Expected life in years | 8.2 | 8.9 | 8.5 | |||||||||||
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, RSUs and PSUs outstanding under the plans as of June 30, 2014, and activity during the year then ended is presented below: | ||||||||||||||
Options in thousands | Options | Weighted Avg. | Weighted Avg. | Aggregate | ||||||||||
Exercise | Remaining | Intrinsic Value | ||||||||||||
Price | Contract-ual Life in | (in | ||||||||||||
Years | millions) | |||||||||||||
Outstanding, beginning of year | 306,239 | $ | 57.07 | |||||||||||
Granted | 25,680 | 78.71 | ||||||||||||
Exercised | (38,165 | ) | 50.79 | |||||||||||
Canceled | (2,128 | ) | 65.09 | |||||||||||
OUTSTANDING, END OF YEAR | 291,626 | 59.74 | 4.8 | $ | 5,626 | |||||||||
EXERCISABLE | 212,502 | 54.67 | 3.4 | 5,172 | ||||||||||
The weighted average grant-date fair value of options granted was $10.01, $8.19 and $8.05 per share in 2014, 2013 and 2012, respectively. The total intrinsic value of options exercised was $1,152, $1,759 and $820 in 2014, 2013 and 2012, respectively. The total grant-date fair value of options that vested during 2014, 2013 and 2012 was $319, $352 and $435, respectively. At June 30, 2014, there was $223 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 1.9 years. Cash received from options exercised was $1,938, $3,294 and $1,735 in 2014, 2013 and 2012, respectively. The actual tax benefit realized for the tax deductions from option exercises totaled $338, $575 and $239 in 2014, 2013 and 2012, respectively. | ||||||||||||||
RSUs | PSUs | |||||||||||||
Other Stock-Based Awards in thousands | Units | Weighted-Average Grant-Date Fair Value | Units | Weighted-Average Grant-Date Fair Value | ||||||||||
Non-vested at July 1, 2013 | 4,590 | $ | 56.88 | 1,887 | $ | 61.75 | ||||||||
Granted | 1,955 | 65.74 | 623 | 71.68 | ||||||||||
Vested | (1,484 | ) | 51.85 | (609 | ) | 57.04 | ||||||||
Forfeited | (159 | ) | 62.82 | (18 | ) | 64.22 | ||||||||
Non-vested at June 30, 2014 | 4,902 | 61.74 | 1,883 | 66.53 | ||||||||||
At June 30, 2014, there was $223 of compensation cost that has not yet been recognized related to restricted stock, RSUs and PSUs. That cost is expected to be recognized over a remaining weighted average period of 3.0 years. The total fair value of shares vested was $95, $51 and $38 in 2014, 2013 and 2012, respectively. | ||||||||||||||
We have no specific policy to repurchase common shares to mitigate the dilutive impact of options, RSUs and PSUs. However, we have historically made adequate discretionary purchases, based on cash availability, market trends and other factors, to offset the impacts of such activity. |
POSTRETIREMENT_BENEFITS_AND_EM
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN | 12 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefits Disclosure | ' | |||||||||||||||||||||||||||||||
NOTE 9 | ||||||||||||||||||||||||||||||||
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 $311, $314 and $353 in 2014, 2013 and 2012, 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 15% of total participants' annual wages and salaries in 2014, 2013 and 2012. | ||||||||||||||||||||||||||||||||
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 local 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 and life insurance, 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 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
CHANGE IN BENEFIT OBLIGATION | ||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year(3) | $ | 14,514 | $ | 13,573 | $ | 5,289 | $ | 6,006 | ||||||||||||||||||||||||
Service cost | 298 | 300 | 149 | 190 | ||||||||||||||||||||||||||||
Interest cost | 590 | 560 | 256 | 260 | ||||||||||||||||||||||||||||
Participants' contributions | 20 | 20 | 72 | 66 | ||||||||||||||||||||||||||||
Amendments | 4 | 104 | (5 | ) | — | |||||||||||||||||||||||||||
Actuarial loss/(gain) | 1,365 | 473 | (46 | ) | (1,022 | ) | ||||||||||||||||||||||||||
Acquisitions | — | 51 | — | — | ||||||||||||||||||||||||||||
Special termination benefits | 5 | 39 | 9 | 18 | ||||||||||||||||||||||||||||
Currency translation and other | 797 | (4 | ) | 20 | 5 | |||||||||||||||||||||||||||
Benefit payments | (540 | ) | (602 | ) | (239 | ) | (234 | ) | ||||||||||||||||||||||||
BENEFIT OBLIGATION AT END OF YEAR(3) | 17,053 | 14,514 | 5,505 | 5,289 | ||||||||||||||||||||||||||||
CHANGE IN PLAN ASSETS | ||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | 8,561 | 7,974 | 3,553 | 2,713 | ||||||||||||||||||||||||||||
Actual return on plan assets | 964 | 796 | 124 | 954 | ||||||||||||||||||||||||||||
Acquisitions | — | 59 | — | — | ||||||||||||||||||||||||||||
Employer contributions | 1,549 | 391 | 31 | 23 | ||||||||||||||||||||||||||||
Participants' contributions | 20 | 20 | 72 | 66 | ||||||||||||||||||||||||||||
Currency translation and other | 544 | (77 | ) | — | — | |||||||||||||||||||||||||||
ESOP debt impacts(4) | — | — | 33 | 31 | ||||||||||||||||||||||||||||
Benefit payments | (540 | ) | (602 | ) | (239 | ) | (234 | ) | ||||||||||||||||||||||||
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | 11,098 | 8,561 | 3,574 | 3,553 | ||||||||||||||||||||||||||||
FUNDED STATUS | (5,955 | ) | (5,953 | ) | (1,931 | ) | (1,736 | ) | ||||||||||||||||||||||||
(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 | |||||||||||||||||||||||||||||||
June 30 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
CLASSIFICATION OF NET AMOUNT RECOGNIZED | ||||||||||||||||||||||||||||||||
Noncurrent assets | $ | 69 | $ | 114 | $ | — | $ | — | ||||||||||||||||||||||||
Current liabilities | (40 | ) | (40 | ) | (25 | ) | (23 | ) | ||||||||||||||||||||||||
Noncurrent liabilities | (5,984 | ) | (6,027 | ) | (1,906 | ) | (1,713 | ) | ||||||||||||||||||||||||
NET AMOUNT RECOGNIZED | (5,955 | ) | (5,953 | ) | (1,931 | ) | (1,736 | ) | ||||||||||||||||||||||||
AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) | ||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 5,169 | $ | 4,049 | $ | 1,871 | $ | 1,772 | ||||||||||||||||||||||||
Prior service cost /(credit) | 344 | 353 | (39 | ) | (54 | ) | ||||||||||||||||||||||||||
NET AMOUNTS RECOGNIZED IN AOCI | 5,513 | 4,402 | 1,832 | 1,718 | ||||||||||||||||||||||||||||
The accumulated benefit obligation for all defined benefit pension plans was $14,949 and $12,652 as of June 30, 2014 and 2013, respectively. Pension plans with accumulated benefit obligations in excess of plan assets and plans with projected benefit obligations in excess of plan assets consist of the following: | ||||||||||||||||||||||||||||||||
Accumulated Benefit | Projected Benefit | |||||||||||||||||||||||||||||||
Obligation Exceeds the | Obligation Exceeds the | |||||||||||||||||||||||||||||||
Fair Value of Plan Assets | Fair Value of Plan Assets | |||||||||||||||||||||||||||||||
June 30 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
Projected benefit obligation | $ | 14,229 | $ | 12,024 | $ | 15,325 | $ | 12,962 | ||||||||||||||||||||||||
Accumulated benefit obligation | 12,406 | 10,406 | 13,279 | 11,149 | ||||||||||||||||||||||||||||
Fair value of plan assets | 8,353 | 6,086 | 9,301 | 6,895 | ||||||||||||||||||||||||||||
Net Periodic Benefit Cost. Components of the net periodic benefit cost were as follows: | ||||||||||||||||||||||||||||||||
Pension Benefits | Other Retiree Benefits | |||||||||||||||||||||||||||||||
Years ended June 30 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
AMOUNTS RECOGNIZED IN NET PERIODIC BENEFIT COST | ||||||||||||||||||||||||||||||||
Service cost | $ | 298 | $ | 300 | $ | 267 | $ | 149 | $ | 190 | $ | 142 | ||||||||||||||||||||
Interest cost | 590 | 560 | 611 | 256 | 260 | 276 | ||||||||||||||||||||||||||
Expected return on plan assets | (701 | ) | (587 | ) | (573 | ) | (385 | ) | (382 | ) | (434 | ) | ||||||||||||||||||||
Prior service cost /(credit) amortization | 26 | 18 | 21 | (20 | ) | (20 | ) | (20 | ) | |||||||||||||||||||||||
Net actuarial loss amortization | 214 | 213 | 102 | 118 | 199 | 99 | ||||||||||||||||||||||||||
Special termination benefits | 5 | 39 | — | 9 | 18 | 27 | ||||||||||||||||||||||||||
Curtailments, settlements and other | — | 4 | 6 | — | — | — | ||||||||||||||||||||||||||
GROSS BENEFIT COST | 432 | 547 | 434 | 127 | 265 | 90 | ||||||||||||||||||||||||||
Dividends on ESOP preferred stock | — | — | — | (64 | ) | (70 | ) | (74 | ) | |||||||||||||||||||||||
NET PERIODIC BENEFIT COST/(CREDIT) | 432 | 547 | 434 | 63 | 195 | 16 | ||||||||||||||||||||||||||
CHANGE IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN AOCI | ||||||||||||||||||||||||||||||||
Net actuarial loss /(gain) - current year | 1,102 | 264 | 215 | (1,594 | ) | |||||||||||||||||||||||||||
Prior service cost/(credit) - current year | 4 | 104 | (5 | ) | — | |||||||||||||||||||||||||||
Amortization of net actuarial loss | (214 | ) | (213 | ) | (118 | ) | (199 | ) | ||||||||||||||||||||||||
Amortization of prior service (cost) / credit | (26 | ) | (18 | ) | 20 | 20 | ||||||||||||||||||||||||||
Settlement / curtailment cost | — | (4 | ) | — | — | |||||||||||||||||||||||||||
Currency translation and other | 245 | (2 | ) | 2 | 1 | |||||||||||||||||||||||||||
TOTAL CHANGE IN AOCI | 1,111 | 131 | 114 | (1,772 | ) | |||||||||||||||||||||||||||
NET AMOUNTS RECOGNIZED IN PERIODIC BENEFIT COST AND AOCI | 1,543 | 678 | 177 | (1,577 | ) | |||||||||||||||||||||||||||
Amounts expected to be amortized from AOCI into net periodic benefit cost during the year ending June 30, 2015, are as follows: | ||||||||||||||||||||||||||||||||
Pension Benefits | Other Retiree Benefits | |||||||||||||||||||||||||||||||
Net actuarial loss | $ | 299 | $ | 106 | ||||||||||||||||||||||||||||
Prior service cost/(credit) | 31 | (20 | ) | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Discount rate | 3.5 | % | 4 | % | 4.4 | % | 4.8 | % | ||||||||||||||||||||||||
Rate of compensation increase | 3.2 | % | 3.2 | % | — | % | — | % | ||||||||||||||||||||||||
Health care cost trend rates assumed for next year | — | % | — | % | 6.8 | % | 7.3 | % | ||||||||||||||||||||||||
Rate to which the health care cost trend rate is assumed to decline (ultimate trend rate) | — | % | — | % | 5 | % | 5 | % | ||||||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | N/A | N/A | 2021 | 2020 | ||||||||||||||||||||||||||||
(1) | Determined as of end of 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(2): | ||||||||||||||||||||||||||||||||
Pension Benefits | Other Retiree Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Discount rate | 4 | % | 4.2 | % | 5.3 | % | 4.8 | % | 4.3 | % | 5.7 | % | ||||||||||||||||||||
Expected return on plan assets | 7.2 | % | 7.3 | % | 7.4 | % | 8.3 | % | 8.3 | % | 9.2 | % | ||||||||||||||||||||
Rate of compensation increase | 3.2 | % | 3.3 | % | 3.5 | % | — | % | — | % | — | % | ||||||||||||||||||||
(2) | Determined as of beginning of year and adjusted for acquisitions. | |||||||||||||||||||||||||||||||
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 the fact 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 | |||||||||||||||||||||||||||||||
Point Increase | Point Decrease | |||||||||||||||||||||||||||||||
Effect on the total service and interest cost components | $ | 80 | $ | (61 | ) | |||||||||||||||||||||||||||
Effect on the accumulated postretirement benefit obligation | 879 | (696 | ) | |||||||||||||||||||||||||||||
Plan Assets. Our investment objective for defined benefit retirement plan assets is to meet the plans' benefit obligations, while minimizing the potential for future required Company plan contributions. 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 matching the actuarial projections of the plans' future liabilities and benefit payments with 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, 2014, and actual asset allocation by asset category as of June 30, 2014 and 2013, were as follows: | ||||||||||||||||||||||||||||||||
Target Asset Allocation | Actual Asset Allocation at June 30 | |||||||||||||||||||||||||||||||
Pension Benefits | Other Retiree | |||||||||||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||||||||||
Asset Category | Pension Benefits | Other Retiree | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||||||||||
Cash | 1 | % | 2 | % | 1 | % | 1 | % | 1 | % | 2 | % | ||||||||||||||||||||
Debt securities | 52 | % | 8 | % | 51 | % | 52 | % | 6 | % | 6 | % | ||||||||||||||||||||
Equity securities | 47 | % | 90 | % | 48 | % | 47 | % | 93 | % | 92 | % | ||||||||||||||||||||
TOTAL | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||
The following tables set forth the fair value of the Company's plan assets as of June 30, 2014 and 2013 segregated by level within the fair value hierarchy (refer to Note 5 for further discussion on the fair value hierarchy and fair value principles). Common collective funds are 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. Company stock listed as Level 2 in the hierarchy represents preferred shares which are valued based on the value of Company common stock. The majority of our Level 3 pension assets are insurance contracts. Their fair values are based on their cash equivalent 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. | ||||||||||||||||||||||||||||||||
Pension Benefits | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
30-Jun | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
ASSETS AT FAIR VALUE | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 79 | $ | 71 | $ | — | $ | — | $ | — | $ | — | $ | 79 | $ | 71 | ||||||||||||||||
Common collective fund - equity | — | — | 5,336 | 3,993 | — | — | 5,336 | 3,993 | ||||||||||||||||||||||||
Common collective fund - fixed income | — | — | 5,539 | 4,361 | — | — | 5,539 | 4,361 | ||||||||||||||||||||||||
Other | 5 | 4 | — | — | 139 | 132 | 144 | 136 | ||||||||||||||||||||||||
TOTAL ASSETS AT FAIR VALUE | 84 | 75 | 10,875 | 8,354 | 139 | 132 | 11,098 | 8,561 | ||||||||||||||||||||||||
Other Retiree Benefits | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
30-Jun | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
ASSETS AT FAIR VALUE | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 30 | $ | 56 | $ | — | $ | — | $ | — | $ | — | $ | 30 | $ | 56 | ||||||||||||||||
Company stock | — | — | 3,304 | 3,270 | — | — | 3,304 | 3,270 | ||||||||||||||||||||||||
Common collective fund - equity | — | — | 18 | 16 | — | — | 18 | 16 | ||||||||||||||||||||||||
Common collective fund - fixed income | — | — | 217 | 200 | — | — | 217 | 200 | ||||||||||||||||||||||||
Other | — | — | — | — | 5 | 11 | 5 | 11 | ||||||||||||||||||||||||
TOTAL ASSETS AT FAIR VALUE | 30 | 56 | 3,539 | 3,486 | 5 | 11 | 3,574 | 3,553 | ||||||||||||||||||||||||
There was no significant activity within the Level 3 pension and other retiree benefits plan assets during the years presented. | ||||||||||||||||||||||||||||||||
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, 2015, is $266 and $39, respectively. For the defined benefit retirement plans, this is comprised of $102 in expected benefit payments from the Company directly to participants of unfunded plans and $164 of expected contributions to funded plans. For other retiree benefit plans, this is comprised of $25 in expected benefit payments from the Company directly to participants of unfunded plans and $14 of expected contributions to funded plans. 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, as discussed above, as well as payments from the plans, are as follows: | ||||||||||||||||||||||||||||||||
Years ending June 30 | Pension | Other Retiree | ||||||||||||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||||||||||
EXPECTED BENEFIT PAYMENTS | ||||||||||||||||||||||||||||||||
2015 | $ | 584 | $ | 203 | ||||||||||||||||||||||||||||
2016 | 578 | 218 | ||||||||||||||||||||||||||||||
2017 | 604 | 233 | ||||||||||||||||||||||||||||||
2018 | 614 | 248 | ||||||||||||||||||||||||||||||
2019 | 624 | 264 | ||||||||||||||||||||||||||||||
2020 - 2024 | 3,615 | 1,528 | ||||||||||||||||||||||||||||||
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 $98 remain outstanding at June 30, 2014. 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 $2.45 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 $602 is outstanding at June 30, 2014. 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 $2.45 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 4) 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, net of advances made by the Company to the Trust. The number of preferred shares outstanding at June 30 was as follows: | ||||||||||||||||||||||||||||||||
Shares in thousands | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Allocated | 44,465 | 45,535 | 50,668 | |||||||||||||||||||||||||||||
Unallocated | 8,474 | 9,843 | 11,348 | |||||||||||||||||||||||||||||
TOTAL SERIES A | 52,939 | 55,378 | 62,016 | |||||||||||||||||||||||||||||
Allocated | 22,085 | 21,278 | 20,802 | |||||||||||||||||||||||||||||
Unallocated | 35,753 | 37,300 | 38,743 | |||||||||||||||||||||||||||||
TOTAL SERIES B | 57,838 | 58,578 | 59,545 | |||||||||||||||||||||||||||||
For purposes of calculating diluted net earnings per common share, the preferred shares held by the ESOP are considered converted from inception. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Notes to Financial Statements [Abstract] | ' | ||||||||||||
INCOME TAXES | ' | ||||||||||||
NOTE 10 | |||||||||||||
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. | |||||||||||||
Earnings from continuing operations before income taxes consisted of the following: | |||||||||||||
Years ended June 30 | 2014 | 2013 | 2012 | ||||||||||
United States | $ | 9,005 | $ | 8,260 | $ | 7,398 | |||||||
International | 5,880 | 6,432 | 5,130 | ||||||||||
TOTAL | 14,885 | 14,692 | 12,528 | ||||||||||
Income taxes on continuing operations consisted of the following: | |||||||||||||
Years ended June 30 | 2014 | 2013 | 2012 | ||||||||||
CURRENT TAX EXPENSE | |||||||||||||
U.S. federal | $ | 1,606 | $ | 1,845 | $ | 1,837 | |||||||
International | 1,379 | 1,567 | 1,357 | ||||||||||
U.S. state and local | 237 | 279 | 246 | ||||||||||
3,222 | 3,691 | 3,440 | |||||||||||
DEFERRED TAX EXPENSE | |||||||||||||
U.S. federal | 135 | 185 | 86 | ||||||||||
International and other | (179 | ) | (485 | ) | (148 | ) | |||||||
(44 | ) | (300 | ) | (62 | ) | ||||||||
TOTAL TAX EXPENSE | 3,178 | 3,391 | 3,378 | ||||||||||
A reconciliation of the U.S. federal statutory income tax rate to our actual income tax rate on continuing operations is provided below: | |||||||||||||
Years ended June 30 | 2014 | 2013 | 2012 | ||||||||||
U.S. federal statutory income tax rate | 35 | % | 35 | % | 35 | % | |||||||
Country mix impacts of foreign operations | (10.9 | )% | (7.7 | )% | (8.2 | )% | |||||||
Changes in uncertain tax positions | (1.5 | )% | (1.8 | )% | (1.3 | )% | |||||||
Impairment adjustments | — | % | 0.6 | % | 3.8 | % | |||||||
Holding gain on joint venture buy-out | — | % | (1.4 | )% | — | % | |||||||
Other | (1.2 | )% | (1.6 | )% | (2.3 | )% | |||||||
EFFECTIVE INCOME TAX RATE | 21.4 | % | 23.1 | % | 27 | % | |||||||
Changes in uncertain tax positions represent changes in our net liability related to prior year tax positions. | |||||||||||||
Tax benefits to shareholders' equity totaled $716 for the year ended June 30, 2014. This primarily relates to the tax effects of net investment hedges, excess tax benefits from the exercise of stock options and the impacts of certain adjustments to pension and other retiree benefit obligations recorded in shareholders' equity. Tax costs charged to shareholders' equity totaled $503 for the year ended June 30, 2013. This primarily relates to the impact of certain adjustments to pension obligations recorded in shareholders' equity, partially offset by excess tax benefits from the exercise of stock options. | |||||||||||||
We have undistributed earnings of foreign subsidiaries of approximately $44.0 billion at June 30, 2014, for which deferred taxes have not been provided. Such earnings are considered indefinitely invested in the foreign subsidiaries. If such earnings were repatriated, additional tax expense may result. However, the calculation of the amount of deferred U.S. income tax on these earnings is not practicable because of the large number of assumptions necessary to compute the tax. | |||||||||||||
A reconciliation of the beginning and ending liability for uncertain tax positions is as follows: | |||||||||||||
Years ended June 30 | 2014 | 2013 | 2012 | ||||||||||
BEGINNING OF YEAR | $ | 1,600 | $ | 1,773 | $ | 1,848 | |||||||
Increases in tax positions for prior years | 146 | 162 | 166 | ||||||||||
Decreases in tax positions for prior years | (296 | ) | (225 | ) | (188 | ) | |||||||
Increases in tax positions for current year | 142 | 188 | 178 | ||||||||||
Settlements with taxing authorities | (135 | ) | (195 | ) | (49 | ) | |||||||
Lapse in statute of limitations | (33 | ) | (98 | ) | (81 | ) | |||||||
Currency translation | 13 | (5 | ) | (101 | ) | ||||||||
END OF YEAR | 1,437 | 1,600 | 1,773 | ||||||||||
The Company is present in approximately 140 taxable jurisdictions and, at any point in time, has 50-60 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 closing of statute of limitations. Such adjustments are reflected in the tax provision as appropriate. The Company is making a concerted effort to bring its audit inventory to a more current position. We have done this by working with tax authorities to conduct audits for several open years at once. We have tax years open ranging from 2002 and forward. We are generally not able to reliably estimate the ultimate settlement amounts until the close of the audit. While we do not expect material changes, it is possible that the amount of unrecognized benefit with respect to our uncertain tax positions will significantly increase or decrease within the next 12 months related to the audits described above. At this time, we are not able to make a reasonable estimate of the range of impact on the balance of uncertain tax positions or the impact on the effective tax rate related to these items. | |||||||||||||
Included in the total liability for uncertain tax positions at June 30, 2014, is $1.1 billion that, depending on the ultimate resolution, could impact the effective tax rate in future periods. | |||||||||||||
Accounting pronouncements require that, without discretion, we recognize the additional accrual of any possible related interest and penalties relating to the underlying uncertain tax position in income tax expense, unless the Company qualifies for a specific exception. As of June 30, 2014, 2013 and 2012, we had accrued interest of $411, $413 and $439 and accrued penalties of $32, $34 and $66, respectively, that are not included in the above table. During the fiscal years ended June 30, 2014, 2013 and 2012, we recognized $(6), $24 and $2 in interest benefit/(expense) and $2, $32 and $10 in penalties benefit, respectively. The net benefits recognized resulted primarily from the favorable resolution of tax positions for prior years. | |||||||||||||
Deferred income tax assets and liabilities were comprised of the following: | |||||||||||||
June 30 | 2014 | 2013 | |||||||||||
DEFERRED TAX ASSETS | |||||||||||||
Pension and postretirement benefits | $ | 2,045 | $ | 1,777 | |||||||||
Stock-based compensation | 1,060 | 1,125 | |||||||||||
Loss and other carryforwards | 1,211 | 1,062 | |||||||||||
Goodwill and other intangible assets | 49 | 60 | |||||||||||
Accrued marketing and promotion | 258 | 285 | |||||||||||
Fixed assets | 115 | 135 | |||||||||||
Unrealized loss on financial and foreign exchange transactions | 352 | 324 | |||||||||||
Accrued interest and taxes | 66 | 15 | |||||||||||
Inventory | 35 | 46 | |||||||||||
Other | 809 | 879 | |||||||||||
Valuation allowances | (384 | ) | (341 | ) | |||||||||
TOTAL | 5,616 | 5,367 | |||||||||||
DEFERRED TAX LIABILITIES | |||||||||||||
Goodwill and other intangible assets | $ | 11,428 | $ | 11,941 | |||||||||
Fixed assets | 1,665 | 1,718 | |||||||||||
Other | 144 | 315 | |||||||||||
TOTAL | 13,237 | 13,974 | |||||||||||
Net operating loss carryforwards were $3.6 billion and $3.1 billion at June 30, 2014 and 2013, respectively. If unused, $1.5 billion will expire between 2015 and 2034. The remainder, totaling $2.1 billion at June 30, 2014, may be carried forward indefinitely. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ' | |||||||||||||||||||||||
NOTE 11 | ||||||||||||||||||||||||
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 and Operating Leases | ||||||||||||||||||||||||
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 ended June 30 | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||
Purchase obligations | $ | 1,068 | $ | 268 | $ | 164 | $ | 92 | $ | 72 | $ | 321 | ||||||||||||
Such amounts represent future purchases in line with expected usage to obtain favorable pricing. Approximately 19% of our purchase commitments relate 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. | ||||||||||||||||||||||||
We also lease certain property and equipment for varying periods. Future minimum rental commitments under non-cancelable operating leases, net of guaranteed sublease income, are as follows: | ||||||||||||||||||||||||
Years ended June 30 | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||
Operating leases | $ | 288 | $ | 273 | $ | 236 | $ | 216 | $ | 188 | $ | 743 | ||||||||||||
Litigation | ||||||||||||||||||||||||
We are subject to various legal proceedings and claims arising out of our business which cover a wide range of matters such as antitrust, trade and other governmental regulations, product liability, patent and trademark matters, advertising, contracts, environmental issues, labor and employments matters and income and other taxes. | ||||||||||||||||||||||||
As previously disclosed, the Company has had a number of antitrust matters in Europe. These matters involve a number of other consumer products companies and/or retail customers. Several regulatory authorities in Europe have issued separate decisions pursuant to their investigations alleging that the Company, along with several other companies, engaged in violations of competition laws in those countries. Many of these matters have concluded and the fines have been paid. For ongoing matters, the Company has accrued liabilities for competition law violations totaling $225 as of June 30, 2014. While the ultimate resolution of these matters may result in fines or costs in excess of the amounts reserved, we do not expect any such incremental losses to materially impact our financial statements in the period in which they are accrued and paid, respectively. | ||||||||||||||||||||||||
With respect to other litigation and claims, 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 have a material effect on our financial position, results of operations or cash flows. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||||||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||||||||||||||
NOTE 12 | ||||||||||||||||||||||||||
SEGMENT INFORMATION | ||||||||||||||||||||||||||
Effective July 1, 2013, we reorganized our Global Business Unit (GBU) structure, which resulted in changes to our reporting segments. We reorganized our GBUs into four industry-based sectors, comprised of 1) Global Beauty, 2) Global Health and Grooming, 3) Global Fabric and Home Care and 4) Global Baby, Feminine and Family Care. In April 2014, we announced our decision to exit our Pet Care business. On July 31, 2014, the Company completed the divestiture of its Pet Care operations in North America, Latin America and other selected markets. The Company is pursuing alternate plans to sell its Pet Care business in the other markets, primarily the European Union countries. This GBU is reported as a discontinued operation for all periods presented. | ||||||||||||||||||||||||||
Under U.S. GAAP, the remaining GBUs underlying the four sectors are aggregated into five reportable segments: 1) Beauty, 2) Grooming, 3) Health Care, 4) Fabric Care and Home Care and 5) Baby, Feminine and Family Care. As a result of the organizational changes, Feminine Care transitioned from Health Care to Baby, Feminine and Family Care for all periods presented. Our five reportable segments are comprised of: | ||||||||||||||||||||||||||
• | Beauty: Beauty Care (Antiperspirant and Deodorant, Cosmetics, Personal Cleansing, Skin Care); Hair Care and Color; Prestige (SKII, Fragrances); Salon Professional; | |||||||||||||||||||||||||
• | Grooming: Shave Care (Blades and Razors, Pre- and Post-Shave Products); Appliances; | |||||||||||||||||||||||||
• | Health Care: Personal Health Care (Gastrointestinal, Rapid Diagnostics, Respiratory, Other Personal Health Care, Vitamins/Minerals/Supplements); Oral Care (Toothbrush, Toothpaste, Other Oral Care); | |||||||||||||||||||||||||
• | Fabric Care and Home Care: Fabric Care (Laundry Additives, Fabric Enhancers, Laundry Detergents); Home Care (Air Care, Dish Care, Surface Care); Personal Power (Batteries); Professional; | |||||||||||||||||||||||||
• | Baby, Feminine and Family Care: Baby Care (Baby Wipes, Diapers and Pants); Feminine Care (Feminine Care, Incontinence); Family Care (Paper Towels, Tissues, Toilet Paper). | |||||||||||||||||||||||||
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. Previously, we also had a difference in the treatment of certain unconsolidated investees. Certain unconsolidated investees that are managed as integral parts of our businesses were reflected as consolidated subsidiaries in management reporting and segment results, with full recognition of the individual income statement line items through before-tax earnings. Eliminations to adjust these line items to U.S. GAAP were included in Corporate. In determining after-tax earnings for the businesses, we eliminated the share of earnings applicable to other ownership interests, in a manner similar to noncontrolling interest, and applied statutory tax rates. During the final quarter of fiscal 2014, we changed our management accounting for unconsolidated investees within our segments, which had no impact to our consolidated financial statements. Pursuant to this change, segment results no longer include full recognition of the individual income statement line items of unconsolidated investees, and resulting eliminations of such amounts are no longer included in corporate. All periods have been adjusted to reflect this change. | ||||||||||||||||||||||||||
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, and other general Corporate items. The non-operating elements in Corporate primarily include interest expense, certain acquisition and divestiture gains and interest and investing income. | ||||||||||||||||||||||||||
Total assets for the reportable segments include those assets managed by the reportable segment, primarily inventory, fixed assets and intangible assets. Other assets, primarily including cash, accounts receivable, investment securities and goodwill, are included in Corporate. | ||||||||||||||||||||||||||
Our business units are comprised of similar product categories. In 2014, 2013 and 2012, nine business units individually accounted for 5% or more of consolidated net sales as follows: | ||||||||||||||||||||||||||
% of Sales by Business Unit | ||||||||||||||||||||||||||
Years ended June 30 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Fabric Care | 20% | 20% | 20% | |||||||||||||||||||||||
Baby Care | 13% | 13% | 13% | |||||||||||||||||||||||
Hair Care and Color | 11% | 11% | 12% | |||||||||||||||||||||||
Shave Care | 9% | 9% | 9% | |||||||||||||||||||||||
Beauty Care | 7% | 7% | 7% | |||||||||||||||||||||||
Home Care | 7% | 7% | 7% | |||||||||||||||||||||||
Family Care | 7% | 7% | 6% | |||||||||||||||||||||||
Oral Care | 7% | 6% | 6% | |||||||||||||||||||||||
Feminine Care | 5% | 5% | 5% | |||||||||||||||||||||||
All Other | 14% | 15% | 15% | |||||||||||||||||||||||
Total | 100% | 100% | 100% | |||||||||||||||||||||||
The Company had net sales in the U.S. of $29.4 billion, $29.2 billion and $28.4 billion for the years ended June 30, 2014, 2013 and 2012, respectively. Long-lived assets in the U.S. totaled $8.7 billion and $9.1 billion as of June 30, 2014 and 2013, respectively. Long-lived assets consists of property, plant and equipment. No other country's net sales or long-lived assets exceed 10% of the Company totals. | ||||||||||||||||||||||||||
Our largest customer, Wal-Mart Stores, Inc. and its affiliates, accounted for approximately 14% of consolidated net sales in 2014, 2013 and 2012. | ||||||||||||||||||||||||||
Global Segment Results | Net Sales | Earnings /(Loss) | Net Earnings / (Loss) from Continuing Operations | Depreciation | Total | Capital | ||||||||||||||||||||
from | and | Assets | Expenditures | |||||||||||||||||||||||
Continuing | Amortization | |||||||||||||||||||||||||
Operations | ||||||||||||||||||||||||||
Before | ||||||||||||||||||||||||||
Income Taxes | ||||||||||||||||||||||||||
BEAUTY | 2014 | $ | 19,507 | $ | 3,530 | $ | 2,739 | $ | 394 | $ | 8,576 | $ | 502 | |||||||||||||
2013 | 19,956 | 3,215 | 2,474 | 375 | 8,396 | 541 | ||||||||||||||||||||
2012 | 20,318 | 3,196 | 2,390 | 379 | 8,357 | 569 | ||||||||||||||||||||
GROOMING | 2014 | 8,009 | 2,589 | 1,954 | 576 | 23,767 | 369 | |||||||||||||||||||
2013 | 8,038 | 2,458 | 1,837 | 603 | 23,971 | 378 | ||||||||||||||||||||
2012 | 8,339 | 2,395 | 1,807 | 623 | 24,518 | 392 | ||||||||||||||||||||
HEALTH CARE | 2014 | 7,798 | 1,597 | 1,083 | 199 | 5,879 | 253 | |||||||||||||||||||
2013 | 7,684 | 1,582 | 1,093 | 191 | 5,933 | 248 | ||||||||||||||||||||
2012 | 7,235 | 1,520 | 1,022 | 186 | 5,832 | 251 | ||||||||||||||||||||
FABRIC CARE AND HOME CARE | 2014 | 26,060 | 4,678 | 3,039 | 625 | 11,384 | 1,154 | |||||||||||||||||||
2013 | 25,862 | 4,757 | 3,089 | 639 | 11,231 | 1,064 | ||||||||||||||||||||
2012 | 25,580 | 4,485 | 2,816 | 627 | 10,647 | 965 | ||||||||||||||||||||
BABY, FEMININE AND FAMILY CARE | 2014 | 20,950 | 4,310 | 2,940 | 908 | 10,946 | 1,317 | |||||||||||||||||||
2013 | 20,479 | 4,507 | 3,047 | 837 | 10,926 | 1,560 | ||||||||||||||||||||
2012 | 19,714 | 4,271 | 2,927 | 753 | 9,203 | 1,495 | ||||||||||||||||||||
CORPORATE(1) | 2014 | 738 | (1,819 | ) | (48 | ) | 439 | 83,714 | 253 | |||||||||||||||||
2013 | 562 | (1,827 | ) | (239 | ) | 337 | 78,806 | 217 | ||||||||||||||||||
2012 | 820 | (3,339 | ) | (1,812 | ) | 636 | 73,687 | 292 | ||||||||||||||||||
TOTAL COMPANY | 2014 | 83,062 | 14,885 | 11,707 | 3,141 | 144,266 | 3,848 | |||||||||||||||||||
2013 | 82,581 | 14,692 | 11,301 | 2,982 | 139,263 | 4,008 | ||||||||||||||||||||
2012 | 82,006 | 12,528 | 9,150 | 3,204 | 132,244 | 3,964 | ||||||||||||||||||||
(1) | The Corporate reportable segment includes depreciation and amortization, total assets and capital expenditures of the Snacks business prior to its divestiture effective May 31, 2012 and of the Pet Care business. |
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||||||||||||||
DISCONTINUED OPERATIONS | ' | ||||||||||||||||||||||||
NOTE 13 | |||||||||||||||||||||||||
DISCONTINUED OPERATIONS | |||||||||||||||||||||||||
On July 31, 2014, the Company completed the divestiture of its Pet Care operations in North America, Latin America, and other selected countries to Mars, Incorporated (Mars) for $2.9 billion in an all-cash transaction. Under the terms of the agreement, Mars acquired our branded pet care products, our manufacturing facilities in the United States and the majority of the employees working in the Pet Care business. The agreement includes an option for Mars to acquire the Pet Care business in several additional countries. The one-time earnings impact from the divestiture is not expected to be material and will be reflected in fiscal 2015 results. The European Union countries are not included in the agreement with Mars. The Company is pursuing alternate plans to sell its Pet Care business in these markets. | |||||||||||||||||||||||||
The Pet Care business had historically been part of the Company’s Health Care reportable segment. In accordance with applicable accounting guidance for the disposal of long-lived assets, the results of the Pet Care business are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for all periods presented. Additionally, the Pet Care balance sheet positions as of June 30, 2014 are presented as assets and liabilities held for sale in the Consolidated Balance Sheets. | |||||||||||||||||||||||||
In fiscal 2012, the Company completed the divestiture of our global Snacks business to The Kellogg Company (Kellogg) for $2.7 billion of cash. Under the terms of the agreement, Kellogg acquired our branded snacks products, our manufacturing facilities in Belgium and the United States and the majority of the employees working on the snacks business. The Company recorded an after-tax gain on the transaction of $1.4 billion, which is included in net earnings from discontinued operations in the Consolidated Statement of Earnings for the year ended June 30, 2012. | |||||||||||||||||||||||||
The Snacks business had historically been part of the Company's former Snacks and Pet Care reportable segment. In accordance with the applicable accounting guidance for the disposal of long-lived assets, the results of the Snacks business are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for all years presented. | |||||||||||||||||||||||||
Following is selected financial information included in net earnings from discontinued operations for the pet care and snacks businesses: | |||||||||||||||||||||||||
Net Sales | Earnings from Discontinued Operations | Income Tax Expense | Gain on Sale of Discontinued Operations | Income Tax Benefit/(Expense) on Sale | Net Earnings from Discontinued Operations | ||||||||||||||||||||
PET CARE | 2014 | $ | 1,475 | $ | 130 | $ | (52 | ) | $ | — | $ | — | $ | 78 | |||||||||||
2013 | 1,586 | 151 | (50 | ) | — | — | 101 | ||||||||||||||||||
2012 | 1,674 | 257 | (90 | ) | — | — | 167 | ||||||||||||||||||
SNACKS | 2014 | — | — | — | — | — | — | ||||||||||||||||||
2013 | — | — | — | — | — | — | |||||||||||||||||||
2012 | 1,440 | 266 | (96 | ) | 1,899 | (482 | ) | 1,587 | |||||||||||||||||
TOTAL | 2014 | 1,475 | 130 | (52 | ) | — | — | 78 | |||||||||||||||||
2013 | 1,586 | 151 | (50 | ) | — | — | 101 | ||||||||||||||||||
2012 | 3,114 | 523 | (186 | ) | 1,899 | (482 | ) | 1,754 | |||||||||||||||||
At June 30, 2014, the major components of assets and liabilities of the Pet Care business held for sale were as follows: | |||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Inventories | $ | 122 | |||||||||||||||||||||||
Prepaid expenses and other current assets | 14 | ||||||||||||||||||||||||
Property, plant and equipment, net | 441 | ||||||||||||||||||||||||
Goodwill and intangible assets, net | 2,258 | ||||||||||||||||||||||||
Other noncurrent assets | 14 | ||||||||||||||||||||||||
Total assets held for sale | 2,849 | ||||||||||||||||||||||||
Accounts payable | 63 | ||||||||||||||||||||||||
Accrued and other liabilities | 13 | ||||||||||||||||||||||||
Noncurrent deferred tax liabilities | 584 | ||||||||||||||||||||||||
Total liabilities held for sale | 660 | ||||||||||||||||||||||||
QUARTERLY_RESULTS_UNAUDITED
QUARTERLY RESULTS (UNAUDITED) | 12 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||||||
QUARTERLY RESULTS (UNAUDITED) | ' | |||||||||||||||||||||||
NOTE 14 | ||||||||||||||||||||||||
QUARTERLY RESULTS (UNAUDITED) | ||||||||||||||||||||||||
Quarters Ended | 30-Sep | 31-Dec | 31-Mar | 30-Jun | Total Year | |||||||||||||||||||
NET SALES | 2013-2014 | $ | 20,830 | $ | 21,897 | $ | 20,178 | $ | 20,157 | $ | 83,062 | |||||||||||||
2012-2013 | 20,342 | 21,737 | 20,205 | 20,297 | 82,581 | |||||||||||||||||||
OPERATING INCOME | 2013-2014 | 4,120 | 4,523 | 3,405 | 3,240 | 15,288 | ||||||||||||||||||
2012-2013 | 3,889 | 4,429 | 3,361 | 2,651 | (3 | ) | 14,330 | |||||||||||||||||
GROSS MARGIN | 2013-2014 | 49.2 | % | 50.3 | % | 48.6 | % | 47.2 | % | 48.9 | % | |||||||||||||
2012-2013 | 50.3 | % | 51.2 | % | 50 | % | 47.9 | % | 49.9 | % | ||||||||||||||
NET EARNINGS: | ||||||||||||||||||||||||
Net earnings from continuing operations | 2013-2014 | $ | 3,039 | $ | 3,454 | $ | 2,603 | $ | 2,611 | $ | 11,707 | |||||||||||||
2012-2013 | 2,812 | 4,034 | (2 | ) | 2,562 | 1,893 | (3 | ) | 11,301 | |||||||||||||||
Net earnings from discontinued operations | 2013-2014 | 18 | 18 | 33 | 9 | 78 | ||||||||||||||||||
2012-2013 | 41 | 42 | 29 | (11 | ) | 101 | ||||||||||||||||||
Net earnings attributable to Procter & Gamble | 2013-2014 | 3,027 | 3,428 | 2,609 | 2,579 | 11,643 | ||||||||||||||||||
2012-2013 | 2,814 | 4,057 | (2 | ) | 2,566 | 1,875 | (3 | ) | 11,312 | |||||||||||||||
DILUTED NET EARNINGS PER COMMON SHARE: (1) | ||||||||||||||||||||||||
Earnings from continuing operations | 2013-2014 | $ | 1.03 | $ | 1.17 | $ | 0.89 | $ | 0.89 | $ | 3.98 | |||||||||||||
2012-2013 | 0.95 | 1.38 | 0.87 | 0.64 | 3.83 | |||||||||||||||||||
Earnings from discontinued operations | 2013-2014 | 0.01 | 0.01 | 0.01 | — | 0.03 | ||||||||||||||||||
2012-2013 | 0.01 | 0.01 | 0.01 | — | 0.03 | |||||||||||||||||||
Net earnings | 2013-2014 | 1.04 | 1.18 | 0.9 | 0.89 | 4.01 | ||||||||||||||||||
2012-2013 | 0.96 | 1.39 | 0.88 | 0.64 | 3.86 | |||||||||||||||||||
(1) | Diluted net earnings per share is calculated on earnings attributable to Procter & Gamble. | |||||||||||||||||||||||
(2) | The Company acquired the balance of its Baby Care and Feminine Care joint venture in Iberia in October 2012 resulting in a non-operating gain of $623. | |||||||||||||||||||||||
(3) | During the fourth quarter of fiscal year 2013, the Company recorded before-tax goodwill and indefinite-lived intangible assets impairment charges of $308 ($290 after-tax). For additional details, see Note 2. | |||||||||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (POLICIES) | 12 Months Ended |
Jun. 30, 2014 | |
Notes to Financial Statements [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 retail operations including mass merchandisers, grocery stores, membership club stores, drug stores, department stores, salons, high-frequency stores and e-commerce. 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. Prior year amounts have been reclassified to conform with current year presentation for amounts related to discontinued operations (see Note 13) and segment reporting (see Note 12). | |
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, 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 | |
Sales are recognized when revenue is realized or realizable and has been earned. Revenue transactions represent sales of inventory. 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. Our policy is to recognize revenue when title to the product, ownership and risk of loss transfer to the customer, 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. | |
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, generally 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 manufacture of product, as well as manufacturing labor, depreciation expense and direct overhead expense necessary to acquire and convert the purchased materials and supplies into finished product. 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 $2.0 billion in 2014, 2013 and 2012. Advertising costs, charged to expense as incurred, include worldwide television, print, radio, internet and in-store advertising expenses and were $9.2 billion in 2014, $9.6 billion in 2013 and $9.2 billion in 2012. Non-advertising related components of the Company's total marketing spending include costs associated with consumer promotions, product sampling and sales aids, which are included in SG&A, as well as coupons and customer trade funds, which are recorded as reductions to net sales. | |
Other Non-Operating Income, Net | ' |
Other Non-Operating Income, Net | |
Other non-operating income, net, primarily includes net acquisition and divestiture gains and investment income. | |
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 statements into U.S. dollars are recorded in other comprehensive income (OCI). Currency translation adjustments in accumulated OCI were gains of $1.4 billion and $353 at June 30, 2014 and June 30, 2013, respectively. 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 | ' |
Cash Flow Presentation | |
The Consolidated Statements of Cash Flows are prepared using the indirect method, which reconciles net earnings to cash flow from operating activities. The reconciliation adjustments include the removal of timing differences between the occurrence of operating receipts and payments and their recognition in net earnings. The adjustments also remove cash flows arising from investing and financing activities, which are presented separately from operating activities. Cash flows from foreign currency transactions and operations are translated at an average exchange rate for the 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, commodity or other currency exposures are classified as operating activities. Cash payments related to income taxes are classified as operating activities. Cash flows from the Company's discontinued operations are included in the Consolidated Statements of Cash Flows. | |
Cash Equivalents | ' |
Cash Equivalents | |
Highly liquid investments with remaining stated maturities of three months or less when purchased are considered cash equivalents and recorded at cost. | |
Investments | ' |
Investments | |
Investment securities consist of readily marketable debt and equity securities. Unrealized gains or losses from investments classified as trading, if any, are charged to earnings. Unrealized gains or losses on securities classified as available-for-sale are generally 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. Investment securities are included as available-for-sale investment securities and other current assets or other noncurrent assets in the Consolidated Balance Sheets. | |
Investments in certain companies over which we exert significant influence, but do not control the financial and operating decisions, are accounted for as equity method investments. Other investments that are not controlled, and over which we do not have the ability to exercise significant influence, are accounted for under the cost method. Both equity and cost method 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 market value. Product-related inventories are primarily maintained on the first-in, first-out method. Minor amounts of product inventories, including certain cosmetics and commodities, are maintained on the last-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. The annual evaluation for impairment of goodwill and indefinite-lived intangible assets is based on valuation models that incorporate assumptions and internal projections of expected future cash flows and operating plans. We believe such assumptions are also comparable to those that would be used by other marketplace participants. | |
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, product life cycles, operating plans and the macroeconomic environment of the countries in which the brands are sold. When certain events or changes in operating conditions occur, an 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. | |
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, other 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 5. | |
New Accounting Pronouncements and Policies | ' |
New Accounting Pronouncements and Policies | |
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” This guidance outlines a single, comprehensive model for accounting for revenue from contracts with customers. We will adopt the standard on July 1, 2017. We are evaluating the impact, if any, that the standard will have on our financial statements. | |
No other new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on the Consolidated Financial Statements. |
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (TABLES) | 12 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||
Schedule of Goodwill | ' | |||||||||||||||||||||
The change in the net carrying amount of goodwill by reportable segment was as follows: | ||||||||||||||||||||||
Beauty | Grooming | Health Care | Fabric Care and Home Care | Baby, Feminine and Family Care | Corporate | Total Company | ||||||||||||||||
GOODWILL at JUNE 30, 2012 - Gross | $ | 16,860 | $ | 21,579 | $ | 6,115 | $ | 4,424 | $ | 3,684 | $ | 2,441 | $ | 55,103 | ||||||||
Accumulated impairment losses at June 30, 2012 | (431 | ) | (899 | ) | — | — | — | — | (1,330 | ) | ||||||||||||
GOODWILL at JUNE 30, 2012 - Net | 16,429 | 20,680 | 6,115 | 4,424 | 3,684 | 2,441 | 53,773 | |||||||||||||||
Acquisitions and divestitures | (21 | ) | (40 | ) | — | (14 | ) | 1,090 | — | 1,015 | ||||||||||||
Goodwill impairment charges | — | (259 | ) | — | — | — | — | (259 | ) | |||||||||||||
Translation and other | 255 | 236 | 70 | 43 | 54 | 1 | 659 | |||||||||||||||
GOODWILL at JUNE 30, 2013 - Gross | 17,094 | 21,775 | 6,185 | 4,453 | 4,828 | 2,442 | 56,777 | |||||||||||||||
Accumulated impairment losses at June 30, 2013 | (431 | ) | (1,158 | ) | — | — | — | — | (1,589 | ) | ||||||||||||
GOODWILL at JUNE 30, 2013 - Net | 16,663 | 20,617 | 6,185 | 4,453 | 4,828 | 2,442 | 55,188 | |||||||||||||||
Acquisitions and divestitures | — | — | — | (3 | ) | — | (2,445 | ) | (2,448 | ) | ||||||||||||
Translation and other | 377 | 322 | 95 | 85 | 82 | 3 | 964 | |||||||||||||||
GOODWILL at JUNE 30, 2014 - Gross | 17,471 | 22,097 | 6,280 | 4,535 | 4,910 | — | 55,293 | |||||||||||||||
Accumulated impairment losses at June 30, 2014 | (431 | ) | (1,158 | ) | — | — | — | — | (1,589 | ) | ||||||||||||
GOODWILL at JUNE 30, 2014 - Net | 17,040 | 20,939 | 6,280 | 4,535 | 4,910 | — | 53,704 | |||||||||||||||
Intangible Assets Disclosure | ' | |||||||||||||||||||||
Identifiable intangible assets were comprised of: | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
June 30 | Gross | Accumulated | Gross | Accumulated | ||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||
INTANGIBLE ASSETS WITH DETERMINABLE LIVES | ||||||||||||||||||||||
Brands | $ | 4,154 | $ | (2,205 | ) | $ | 4,251 | $ | (2,020 | ) | ||||||||||||
Patents and technology | 2,850 | (2,082 | ) | 2,976 | (2,032 | ) | ||||||||||||||||
Customer relationships | 2,002 | (763 | ) | 2,118 | (703 | ) | ||||||||||||||||
Other | 355 | (164 | ) | 348 | (168 | ) | ||||||||||||||||
TOTAL | 9,361 | (5,214 | ) | 9,693 | (4,923 | ) | ||||||||||||||||
INTANGIBLE ASSETS WITH INDEFINITE LIVES | ||||||||||||||||||||||
Brands | 26,696 | — | 26,802 | — | ||||||||||||||||||
TOTAL | 36,057 | (5,214 | ) | 36,495 | (4,923 | ) | ||||||||||||||||
Amortization of Intangible Assets | ' | |||||||||||||||||||||
Amortization expense of intangible assets was as follows: | ||||||||||||||||||||||
Years ended June 30 | 2014 | 2013 | 2012 | |||||||||||||||||||
Intangible asset amortization | $ | 514 | $ | 528 | $ | 500 | ||||||||||||||||
Estimated Amortization Expense | ' | |||||||||||||||||||||
Estimated amortization expense over the next five fiscal years is as follows: | ||||||||||||||||||||||
Years ended June 30 | 2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||||||
Estimated amortization expense | $ | 432 | $ | 393 | $ | 360 | $ | 332 | $ | 309 | ||||||||||||
These estimates do not reflect the impact of future foreign exchange rate changes. |
SUPPLEMENTAL_FINANCIAL_INFORMA1
SUPPLEMENTAL FINANCIAL INFORMATION (TABLES) | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||||||||
Property, Plant and Equipment [Table Text Block] | ' | |||||||||||||||
The components of property, plant and equipment were as follows: | ||||||||||||||||
June 30 | 2014 | 2013 | ||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||||||||||
Buildings | $ | 8,022 | $ | 7,829 | ||||||||||||
Machinery and equipment | 32,398 | 31,070 | ||||||||||||||
Land | 893 | 878 | ||||||||||||||
Construction in progress | 3,114 | 3,235 | ||||||||||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT | 44,427 | 43,012 | ||||||||||||||
Accumulated depreciation | (22,123 | ) | (21,346 | ) | ||||||||||||
PROPERTY, PLANT AND EQUIPMENT, NET | 22,304 | 21,666 | ||||||||||||||
Selected Components of Current and Noncurrent Liabilities | ' | |||||||||||||||
Selected components of current and noncurrent liabilities were as follows: | ||||||||||||||||
June 30 | 2014 | 2013 | ||||||||||||||
ACCRUED AND OTHER LIABILITIES - CURRENT | ||||||||||||||||
Marketing and promotion | $ | 3,290 | $ | 3,122 | ||||||||||||
Compensation expenses | 1,647 | 1,665 | ||||||||||||||
Restructuring reserves | 381 | 323 | ||||||||||||||
Taxes payable | 711 | 817 | ||||||||||||||
Legal and environmental | 399 | 374 | ||||||||||||||
Other | 2,571 | 2,527 | ||||||||||||||
TOTAL | 8,999 | 8,828 | ||||||||||||||
OTHER NONCURRENT LIABILITIES | ||||||||||||||||
Pension benefits | $ | 5,984 | $ | 6,027 | ||||||||||||
Other postretirement benefits | 1,906 | 1,713 | ||||||||||||||
Uncertain tax positions | 1,843 | 2,002 | ||||||||||||||
Other | 802 | 837 | ||||||||||||||
TOTAL | 10,535 | 10,579 | ||||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | ' | |||||||||||||||
The following table presents restructuring activity for the years ended June 30, 2014 and 2013: | ||||||||||||||||
Separations | Asset-Related Costs | Other | Total | |||||||||||||
RESERVE JUNE 30, 2012 | $ | 316 | $ | — | $ | 27 | $ | 343 | ||||||||
Charges | 595 | 109 | 252 | 956 | ||||||||||||
Cash spent | (615 | ) | — | (252 | ) | (867 | ) | |||||||||
Charges against assets | — | (109 | ) | — | (109 | ) | ||||||||||
RESERVE JUNE 30, 2013 | 296 | — | 27 | 323 | ||||||||||||
Charges | 378 | 179 | 249 | 806 | ||||||||||||
Cash spent | (321 | ) | — | (248 | ) | (569 | ) | |||||||||
Charges against assets | — | (179 | ) | — | (179 | ) | ||||||||||
RESERVE JUNE 30, 2014 | 353 | — | 28 | 381 | ||||||||||||
Schedule of Restructuring and Related Costs [Table Text Block] | ' | |||||||||||||||
for informative purposes, the following table summarizes the total restructuring costs related to our reportable segments: | ||||||||||||||||
Years Ended June 30 | 2014 | 2013 | ||||||||||||||
Beauty | $ | 83 | $ | 132 | ||||||||||||
Grooming | 20 | 50 | ||||||||||||||
Health Care | 10 | 14 | ||||||||||||||
Fabric Care and Home Care | 121 | 140 | ||||||||||||||
Baby, Feminine and Family Care | 155 | 129 | ||||||||||||||
Corporate (1) | 417 | 491 | ||||||||||||||
Total Company | 806 | 956 | ||||||||||||||
(1) Corporate includes costs related to allocated overheads, including charges related to our SMO, Global Business Services and Corporate Functions activities and costs related to discontinued operations from our divested Pet Care business. |
SHORTTERM_AND_LONGTERM_DEBT_TA
SHORT-TERM AND LONG-TERM DEBT (TABLES) | 12 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||||||||||||
Debt Due Within One Year | ' | |||||||||||||||||||
June 30 | 2014 | 2013 | ||||||||||||||||||
DEBT DUE WITHIN ONE YEAR | ||||||||||||||||||||
Current portion of long-term debt | $ | 4,307 | $ | 4,506 | ||||||||||||||||
Commercial paper | 10,818 | 7,642 | ||||||||||||||||||
Other | 481 | 284 | ||||||||||||||||||
TOTAL | 15,606 | 12,432 | ||||||||||||||||||
Short-term weighted average interest rates(1) | 0.7 | % | 0.5 | % | ||||||||||||||||
(1) Weighted average short-term interest rates include the effects of interest rate swaps discussed in Note 5 | ||||||||||||||||||||
Long-term Debt | ' | |||||||||||||||||||
June 30 | 2014 | 2013 | ||||||||||||||||||
LONG-TERM DEBT | ||||||||||||||||||||
4.95% USD note due August 2014 | $ | 900 | $ | 900 | ||||||||||||||||
0.70% USD note due August 2014 | 1,000 | 1,000 | ||||||||||||||||||
3.50% USD note due February 2015 | 750 | 750 | ||||||||||||||||||
0.95% JPY note due May 2015 | 987 | 1,012 | ||||||||||||||||||
3.15% USD note due September 2015 | 500 | 500 | ||||||||||||||||||
1.80% USD note due November 2015 | 1,000 | 1,000 | ||||||||||||||||||
4.85% USD note due December 2015 | 700 | 700 | ||||||||||||||||||
1.45% USD note due August 2016 | 1,000 | 1,000 | ||||||||||||||||||
0.75% USD note due November 2016 | 500 | — | ||||||||||||||||||
Floating rate USD note due November 2016 | 500 | — | ||||||||||||||||||
5.13% EUR note due October 2017 | 1,501 | 1,437 | ||||||||||||||||||
1.60% USD note due November 2018 | 1,000 | — | ||||||||||||||||||
4.70% USD note due February 2019 | 1,250 | 1,250 | ||||||||||||||||||
4.13% EUR note due December 2020 | 819 | 784 | ||||||||||||||||||
9.36% ESOP debentures due 2014-2021(1) | 640 | 701 | ||||||||||||||||||
2.00% EUR note due November 2021 | 1,023 | — | ||||||||||||||||||
2.30% USD note due February 2022 | 1,000 | 1,000 | ||||||||||||||||||
2.00% EUR note due August 2022 | 1,365 | 1,307 | ||||||||||||||||||
3.10% USD note due August 2023 | 1,000 | — | ||||||||||||||||||
4.88% EUR note due May 2027 | 1,365 | 1,307 | ||||||||||||||||||
6.25% GBP note due January 2030 | 851 | 764 | ||||||||||||||||||
5.50% USD note due February 2034 | 500 | 500 | ||||||||||||||||||
5.80% USD note due August 2034 | 600 | 600 | ||||||||||||||||||
5.55% USD note due March 2037 | 1,400 | 1,400 | ||||||||||||||||||
Capital lease obligations | 83 | 31 | ||||||||||||||||||
All other long-term debt | 1,884 | 5,674 | ||||||||||||||||||
Current portion of long-term debt | (4,307 | ) | (4,506 | ) | ||||||||||||||||
TOTAL | 19,811 | 19,111 | ||||||||||||||||||
Long-term weighted average interest rates(2) | 3.2 | % | 3.3 | % | ||||||||||||||||
(1) | Debt issued by the ESOP is guaranteed by the Company and must be recorded as debt of the Company, as discussed in Note 9. | |||||||||||||||||||
(2) | Weighted average long-term interest rates include the effects of interest rate swaps discussed in Note 5. | |||||||||||||||||||
Long-Term Debt Maturities | ' | |||||||||||||||||||
Long-term debt maturities during the next five fiscal years are as follows: | ||||||||||||||||||||
June 30 | 2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||||
Debt maturities | $ | 4,307 | $ | 2,356 | $ | 2,123 | $ | 1,605 | $ | 2,357 | ||||||||||
RISK_MANAGEMENT_ACTIVITIES_AND1
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS (TABLES) | 12 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||||||||||||||||||||||||
Schedule Of Fair Value Assets And Liabilities Measured On Recurring Basis Table | ' | |||||||||||||||||||||||||||||||
The following table sets forth the Company's financial assets and liabilities as of June 30, 2014 and 2013 that were measured at fair value on a recurring basis during the period, segregated by level within the fair value hierarchy: | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
June 30 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
ASSETS RECORDED AT FAIR VALUE | ||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||
U.S. government securities | $ | — | $ | — | $ | 1,631 | $ | 1,571 | $ | — | $ | — | $ | 1,631 | $ | 1,571 | ||||||||||||||||
Corporate bond securities | — | — | 497 | — | — | — | 497 | — | ||||||||||||||||||||||||
Other investments | 6 | 23 | — | — | 24 | 24 | 30 | 47 | ||||||||||||||||||||||||
Derivatives relating to: | ||||||||||||||||||||||||||||||||
Foreign currency hedges | — | — | 187 | 168 | — | — | 187 | 168 | ||||||||||||||||||||||||
Other foreign currency instruments(1) | — | — | 24 | 19 | — | — | 24 | 19 | ||||||||||||||||||||||||
Interest rates | — | — | 197 | 191 | — | — | 197 | 191 | ||||||||||||||||||||||||
Net investment hedges | — | — | 49 | 233 | — | — | 49 | 233 | ||||||||||||||||||||||||
TOTAL ASSETS RECORDED AT FAIR VALUE(2) | 6 | 23 | 2,585 | 2,182 | 24 | 24 | 2,615 | 2,229 | ||||||||||||||||||||||||
LIABILITIES RECORDED AT FAIR VALUE | ||||||||||||||||||||||||||||||||
Derivatives relating to: | ||||||||||||||||||||||||||||||||
Other foreign currency instruments(1) | — | — | 66 | 90 | — | — | 66 | 90 | ||||||||||||||||||||||||
Interest rates | — | — | 29 | 59 | — | — | 29 | 59 | ||||||||||||||||||||||||
Net investment hedges | — | — | 1 | — | — | — | 1 | — | ||||||||||||||||||||||||
TOTAL LIABILITIES AT FAIR VALUE(3) | — | — | 96 | 149 | — | — | 96 | 149 | ||||||||||||||||||||||||
LIABILITIES NOT RECORDED AT FAIR VALUE | ||||||||||||||||||||||||||||||||
Long-term debt (4) | 24,747 | 22,671 | 1,682 | 3,022 | — | — | 26,429 | 25,693 | ||||||||||||||||||||||||
TOTAL LIABILITIES RECORDED AND NOT RECORDED AT FAIR VALUE | 24,747 | 22,671 | 1,778 | 3,171 | — | — | 26,525 | 25,842 | ||||||||||||||||||||||||
(1) | Other foreign currency instruments are comprised of foreign currency financial instruments that do not qualify as hedges. | |||||||||||||||||||||||||||||||
(2) | All derivative assets are presented in Prepaid expenses and other current assets and Other noncurrent assets. Investment securities are presented in Available-for-sale investment securities and Other noncurrent assets, except the U.S. government securities are included in Other noncurrent assets in our Consolidated Balance Sheets at June 30, 2013. The amortized cost of the U.S. government securities was $1,649 and $1,604 as of June 30, 2014 and 2013, respectively. All U.S. government securities have contractual maturities between one and five years. The amortized cost of the corporate bond securities was $497 as of June 30, 2014. The amortized cost and fair value of corporate bond securities with maturities of less than a year was $39 as of June 30, 2014. The amortized cost and fair value of corporate bond securities with maturities between one and five years was $458 as of June 30, 2014. Fair values are generally estimated based upon quoted market prices for similar instruments. | |||||||||||||||||||||||||||||||
(3) | All liabilities are presented in accrued and other liabilities or other noncurrent liabilities. | |||||||||||||||||||||||||||||||
(4) | Long-term debt includes the current portion ($4,400 and $4,540 as of June 30, 2014 and 2013, respectively) of debt instruments. Long-term debt is not recorded at fair value on a recurring basis, but is measured at fair value for disclosure purposes. Fair values are generally estimated based on quoted market prices for identical or similar instruments. | |||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | ' | |||||||||||||||||||||||||||||||
Disclosures about Derivative Instruments | ||||||||||||||||||||||||||||||||
The notional amounts and fair values of qualifying and non-qualifying financial instruments used in hedging transactions as of June 30, 2014 and 2013 are as follows: | ||||||||||||||||||||||||||||||||
Notional Amount | Fair Value Asset/(Liability) | |||||||||||||||||||||||||||||||
June 30 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
DERIVATIVES IN CASH FLOW HEDGING RELATIONSHIPS | ||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | 951 | $ | 951 | $ | 187 | $ | 168 | ||||||||||||||||||||||||
DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 9,738 | $ | 9,117 | $ | 168 | $ | 132 | ||||||||||||||||||||||||
DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS | ||||||||||||||||||||||||||||||||
Net investment hedges | $ | 831 | $ | 1,303 | $ | 48 | $ | 233 | ||||||||||||||||||||||||
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | ||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | 12,111 | $ | 7,080 | $ | (42 | ) | $ | (71 | ) | ||||||||||||||||||||||
The total notional amount of contracts outstanding at the end of the period is indicative of the level of the Company's derivative activity during the period. The notional balance of foreign currency contracts changes during the period reflects changes in the level of intercompany financing activity. | ||||||||||||||||||||||||||||||||
Amount of Gain/(Loss) | ||||||||||||||||||||||||||||||||
Recognized in | ||||||||||||||||||||||||||||||||
AOCI | ||||||||||||||||||||||||||||||||
on Derivatives | ||||||||||||||||||||||||||||||||
(Effective Portion) | ||||||||||||||||||||||||||||||||
30-Jun | 2014 | 2013 | ||||||||||||||||||||||||||||||
DERIVATIVES IN CASH FLOW HEDGING RELATIONSHIPS | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 3 | $ | 7 | ||||||||||||||||||||||||||||
Foreign currency contracts | 14 | 14 | ||||||||||||||||||||||||||||||
TOTAL | 17 | 21 | ||||||||||||||||||||||||||||||
DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS | ||||||||||||||||||||||||||||||||
Net investment hedges | $ | 30 | $ | 145 | ||||||||||||||||||||||||||||
During the next 12 months, the amount of the June 30, 2014, accumulated OCI balance that will be reclassified to earnings is expected to be immaterial. | ||||||||||||||||||||||||||||||||
The amounts of gains and losses included in earnings from qualifying and non-qualifying financial instruments used in hedging transactions for the years ended June 30, 2014 and 2013 were as follows: | ||||||||||||||||||||||||||||||||
Amount of Gain/(Loss) | ||||||||||||||||||||||||||||||||
Reclassified from | ||||||||||||||||||||||||||||||||
AOCI into Earnings | ||||||||||||||||||||||||||||||||
Years ended June 30 | 2014 | 2013 | ||||||||||||||||||||||||||||||
DERIVATIVES IN CASH FLOW HEDGING RELATIONSHIPS | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 6 | $ | 6 | ||||||||||||||||||||||||||||
Foreign currency contracts | 38 | 215 | ||||||||||||||||||||||||||||||
TOTAL | 44 | 221 | ||||||||||||||||||||||||||||||
Amount of Gain/(Loss) | ||||||||||||||||||||||||||||||||
Recognized in Earnings | ||||||||||||||||||||||||||||||||
Years ended June 30 | 2014 | 2013 | ||||||||||||||||||||||||||||||
DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 36 | $ | (167 | ) | |||||||||||||||||||||||||||
Debt | (37 | ) | 171 | |||||||||||||||||||||||||||||
TOTAL | (1 | ) | 4 | |||||||||||||||||||||||||||||
DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS | ||||||||||||||||||||||||||||||||
Net investment hedges | $ | — | $ | (2 | ) | |||||||||||||||||||||||||||
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | ||||||||||||||||||||||||||||||||
Foreign currency contracts(1) | $ | 123 | $ | (34 | ) | |||||||||||||||||||||||||||
(1) | The gain or loss on non-qualifying foreign currency contracts substantially offsets the foreign currency mark-to-market impact of the related exposure. |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||||||||||||
NOTE 6 | |||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | |||||||||||||||||||||
The tables below present the changes in accumulated other comprehensive income/(loss) by component and the reclassifications out of accumulated other comprehensive income/(loss): | |||||||||||||||||||||
Changes in Accumulated Other Comprehensive Income/(Loss) by Component | |||||||||||||||||||||
Hedges | Investment Securities | Pension and Other Retiree Benefits | Financial Statement Translation | Total | |||||||||||||||||
Balance at June 30, 2012 | $ | (3,673 | ) | $ | (3 | ) | $ | (5,300 | ) | $ | (357 | ) | $ | (9,333 | ) | ||||||
OCI before reclassifications (1) | 363 | (24 | ) | 731 | 710 | 1,780 | |||||||||||||||
Amounts reclassified from AOCI | (219 | ) | — | 273 | — | 54 | |||||||||||||||
Net current period OCI | 144 | (24 | ) | 1,004 | 710 | 1,834 | |||||||||||||||
Balance at June 30, 2013 | (3,529 | ) | (27 | ) | (4,296 | ) | 353 | (7,499 | ) | ||||||||||||
OCI before reclassifications (2) | (305 | ) | 20 | (1,113 | ) | 1,044 | (354 | ) | |||||||||||||
Amounts reclassified from AOCI | (42 | ) | (11 | ) | 244 | — | 191 | ||||||||||||||
Net current period OCI | (347 | ) | 9 | (869 | ) | 1,044 | (163 | ) | |||||||||||||
Balance at June 30, 2014 | (3,876 | ) | (18 | ) | (5,165 | ) | 1,397 | (7,662 | ) | ||||||||||||
(1) Net of tax (benefit) / expense of $94, $(5) and $496 for gains / losses on hedges, investment securities and pension and other retiree benefit items, respectively. | |||||||||||||||||||||
(2) Net of tax (benefit) / expense of $(207), $3, and $(450) for gains and losses on hedges, investment securities and pension and other retiree benefit items, respectively. | |||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | ' | ||||||||||||||||||||
Reclassifications out of Accumulated Other Comprehensive Income/(Loss) | |||||||||||||||||||||
Years ended June 30 | 2014 | 2013 | |||||||||||||||||||
Hedges (1) | |||||||||||||||||||||
Interest rate contracts | $ | 6 | $ | 6 | |||||||||||||||||
Foreign exchange contracts | 38 | 215 | |||||||||||||||||||
Total before-tax | 44 | 221 | |||||||||||||||||||
Tax (expense)/benefit | (2 | ) | (2 | ) | |||||||||||||||||
Net of tax | 42 | 219 | |||||||||||||||||||
Gains / (losses) on Investment Securities (2) | 18 | — | |||||||||||||||||||
Tax (expense)/benefit | (7 | ) | — | ||||||||||||||||||
Net of tax | 11 | — | |||||||||||||||||||
Pension and Other Retiree Benefits (3) | |||||||||||||||||||||
Amortization of deferred amounts | (6 | ) | 2 | ||||||||||||||||||
Recognized net actuarial gains/(losses) | (332 | ) | (412 | ) | |||||||||||||||||
Curtailments and settlements | — | (4 | ) | ||||||||||||||||||
Total before-tax | (338 | ) | (414 | ) | |||||||||||||||||
Tax (expense)/benefit | 94 | 141 | |||||||||||||||||||
Net of tax | (244 | ) | (273 | ) | |||||||||||||||||
Total reclassifications, net of tax | (191 | ) | (54 | ) | |||||||||||||||||
(1) See Note 5 for classification of these items in the Consolidated Statements of Earnings. | |||||||||||||||||||||
(2) Reclassified from AOCI into Other non-operating income, net. | |||||||||||||||||||||
(3) Reclassified from AOCI into Cost of products sold and SG&A. These components are included in the computation of net periodic pension cost (see Note 9 for additional details). |
EARNINGS_PER_SHARE_TABLES
EARNINGS PER SHARE (TABLES) | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Notes to Financial Statements [Abstract] | ' | ||||||||||||
Net Earnings and Common Shares Used to Calculate Basic and Diluted Net Earnings per Share | ' | ||||||||||||
Net earnings attributable to Procter & Gamble and common shares used to calculate basic and diluted net earnings per share were as follows: | |||||||||||||
Years ended June 30 | 2014 | 2013 | 2012 | ||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | $ | 11,707 | $ | 11,301 | $ | 9,150 | |||||||
Net earnings from discontinued operations | 78 | 101 | 1,754 | ||||||||||
NET EARNINGS | 11,785 | 11,402 | 10,904 | ||||||||||
Net earnings attributable to noncontrolling interests | (142 | ) | (90 | ) | (148 | ) | |||||||
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE (DILUTED) | 11,643 | 11,312 | 10,756 | ||||||||||
Preferred dividends, net of tax benefit | (253 | ) | (244 | ) | (256 | ) | |||||||
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE AVAILABLE TO COMMON SHAREHOLDERS (BASIC) | 11,390 | 11,068 | 10,500 | ||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO PROCTER & GAMBLE AVAILABLE TO COMMON SHAREHOLDERS (BASIC) | $ | 11,312 | $ | 10,967 | $ | 8,746 | |||||||
NET EARNINGS FROM CONTINUTING OPERATIONS ATTRIBUTABLE TO PROCTER & GAMBLE (DILUTED) | $ | 11,565 | $ | 11,211 | $ | 9,002 | |||||||
Shares in millions; Years ended June 30 | 2014 | 2013 | 2012 | ||||||||||
Basic weighted average common shares outstanding | 2,719.80 | 2,742.90 | 2,751.30 | ||||||||||
Effect of dilutive securities | |||||||||||||
Conversion of preferred shares(1) | 112.3 | 116.8 | 123.9 | ||||||||||
Exercise of stock options and other unvested equity awards (2) | 72.6 | 70.9 | 66 | ||||||||||
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 2,904.70 | 2,930.60 | 2,941.20 | ||||||||||
BASIC NET EARNINGS PER COMMON SHARE (3) | |||||||||||||
Earnings from continuing operations | $ | 4.16 | $ | 4 | $ | 3.18 | |||||||
Earnings from discontinued operations | 0.03 | 0.04 | 0.64 | ||||||||||
BASIC NET EARNINGS PER COMMON SHARE | 4.19 | 4.04 | 3.82 | ||||||||||
DILUTED NET EARNINGS PER COMMON SHARE (3) | |||||||||||||
Earnings from continuing operations | $ | 3.98 | $ | 3.83 | $ | 3.06 | |||||||
Earnings from discontinued operations | 0.03 | 0.03 | 0.6 | ||||||||||
DILUTED NET EARNINGS PER COMMON SHARE | 4.01 | 3.86 | 3.66 | ||||||||||
(1) | Despite being included currently 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. | ||||||||||||
(2) | Approximately 9 million in 2014, 12 million in 2013 and 67 million in 2012 of the Company's outstanding stock options 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 total proceeds upon exercise would have exceeded the market value of the underlying common shares). | ||||||||||||
(3) | Basic net earnings per common share and diluted net earnings per common share are calculated on net earnings attributable to Procter & Gamble. |
STOCKBASED_COMPENSATION_TABLES
STOCK-BASED COMPENSATION (TABLES) | 12 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||||||
Schedule of Nonvested Share Activity [Table Text Block] | ' | |||||||||||||
RSUs | PSUs | |||||||||||||
Other Stock-Based Awards in thousands | Units | Weighted-Average Grant-Date Fair Value | Units | Weighted-Average Grant-Date Fair Value | ||||||||||
Non-vested at July 1, 2013 | 4,590 | $ | 56.88 | 1,887 | $ | 61.75 | ||||||||
Granted | 1,955 | 65.74 | 623 | 71.68 | ||||||||||
Vested | (1,484 | ) | 51.85 | (609 | ) | 57.04 | ||||||||
Forfeited | (159 | ) | 62.82 | (18 | ) | 64.22 | ||||||||
Non-vested at June 30, 2014 | 4,902 | 61.74 | 1,883 | 66.53 | ||||||||||
Schedule of Assumptions Used [Table Text Block] | ' | |||||||||||||
Assumptions utilized in the model, which are evaluated and revised as necessary, to reflect market conditions and experience, were as follows: | ||||||||||||||
Years ended June 30 | 2014 | 2013 | 2012 | |||||||||||
Interest rate | 0.1-2.8% | 0.2-2.0% | 0.2-2.1% | |||||||||||
Weighted average interest rate | 2.5 | % | 1.8 | % | 1.9 | % | ||||||||
Dividend yield | 3.1 | % | 2.9 | % | 2.6 | % | ||||||||
Expected volatility | 15-17% | 14-15% | 12-18% | |||||||||||
Weighted average volatility | 16 | % | 15 | % | 15 | % | ||||||||
Expected life in years | 8.2 | 8.9 | 8.5 | |||||||||||
Schedule of Share Based Compensation, Stock Options, Activity Table | ' | |||||||||||||
A summary of options, RSUs and PSUs outstanding under the plans as of June 30, 2014, and activity during the year then ended is presented below: | ||||||||||||||
Options in thousands | Options | Weighted Avg. | Weighted Avg. | Aggregate | ||||||||||
Exercise | Remaining | Intrinsic Value | ||||||||||||
Price | Contract-ual Life in | (in | ||||||||||||
Years | millions) | |||||||||||||
Outstanding, beginning of year | 306,239 | $ | 57.07 | |||||||||||
Granted | 25,680 | 78.71 | ||||||||||||
Exercised | (38,165 | ) | 50.79 | |||||||||||
Canceled | (2,128 | ) | 65.09 | |||||||||||
OUTSTANDING, END OF YEAR | 291,626 | 59.74 | 4.8 | $ | 5,626 | |||||||||
EXERCISABLE | 212,502 | 54.67 | 3.4 | 5,172 | ||||||||||
POSTRETIREMENT_BENEFITS_AND_EM1
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN (TABLES) | 12 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||||||||||||||||||||||||
Pension Plans with Accumulated and Projected Benefit Obligations in Excess of Plan Assets | ' | |||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Discount rate | 3.5 | % | 4 | % | 4.4 | % | 4.8 | % | ||||||||||||||||||||||||
Rate of compensation increase | 3.2 | % | 3.2 | % | — | % | — | % | ||||||||||||||||||||||||
Health care cost trend rates assumed for next year | — | % | — | % | 6.8 | % | 7.3 | % | ||||||||||||||||||||||||
Rate to which the health care cost trend rate is assumed to decline (ultimate trend rate) | — | % | — | % | 5 | % | 5 | % | ||||||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | N/A | N/A | 2021 | 2020 | ||||||||||||||||||||||||||||
(1) | Determined as of end of 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(2): | ||||||||||||||||||||||||||||||||
Pension Benefits | Other Retiree Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Discount rate | 4 | % | 4.2 | % | 5.3 | % | 4.8 | % | 4.3 | % | 5.7 | % | ||||||||||||||||||||
Expected return on plan assets | 7.2 | % | 7.3 | % | 7.4 | % | 8.3 | % | 8.3 | % | 9.2 | % | ||||||||||||||||||||
Rate of compensation increase | 3.2 | % | 3.3 | % | 3.5 | % | — | % | — | % | — | % | ||||||||||||||||||||
(2) | Determined as of beginning of year and adjusted for acquisitions. | |||||||||||||||||||||||||||||||
The accumulated benefit obligation for all defined benefit pension plans was $14,949 and $12,652 as of June 30, 2014 and 2013, respectively. Pension plans with accumulated benefit obligations in excess of plan assets and plans with projected benefit obligations in excess of plan assets consist of the following: | ||||||||||||||||||||||||||||||||
Accumulated Benefit | Projected Benefit | |||||||||||||||||||||||||||||||
Obligation Exceeds the | Obligation Exceeds the | |||||||||||||||||||||||||||||||
Fair Value of Plan Assets | Fair Value of Plan Assets | |||||||||||||||||||||||||||||||
June 30 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
Projected benefit obligation | $ | 14,229 | $ | 12,024 | $ | 15,325 | $ | 12,962 | ||||||||||||||||||||||||
Accumulated benefit obligation | 12,406 | 10,406 | 13,279 | 11,149 | ||||||||||||||||||||||||||||
Fair value of plan assets | 8,353 | 6,086 | 9,301 | 6,895 | ||||||||||||||||||||||||||||
A one percentage point change in assumed health care cost trend rates would have the following effects: | ||||||||||||||||||||||||||||||||
One-Percentage | One-Percentage | |||||||||||||||||||||||||||||||
Point Increase | Point Decrease | |||||||||||||||||||||||||||||||
Effect on the total service and interest cost components | $ | 80 | $ | (61 | ) | |||||||||||||||||||||||||||
Effect on the accumulated postretirement benefit obligation | 879 | (696 | ) | |||||||||||||||||||||||||||||
Pension Benefits | Other Retiree Benefits | |||||||||||||||||||||||||||||||
Years ended June 30 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
AMOUNTS RECOGNIZED IN NET PERIODIC BENEFIT COST | ||||||||||||||||||||||||||||||||
Service cost | $ | 298 | $ | 300 | $ | 267 | $ | 149 | $ | 190 | $ | 142 | ||||||||||||||||||||
Interest cost | 590 | 560 | 611 | 256 | 260 | 276 | ||||||||||||||||||||||||||
Expected return on plan assets | (701 | ) | (587 | ) | (573 | ) | (385 | ) | (382 | ) | (434 | ) | ||||||||||||||||||||
Prior service cost /(credit) amortization | 26 | 18 | 21 | (20 | ) | (20 | ) | (20 | ) | |||||||||||||||||||||||
Net actuarial loss amortization | 214 | 213 | 102 | 118 | 199 | 99 | ||||||||||||||||||||||||||
Special termination benefits | 5 | 39 | — | 9 | 18 | 27 | ||||||||||||||||||||||||||
Curtailments, settlements and other | — | 4 | 6 | — | — | — | ||||||||||||||||||||||||||
GROSS BENEFIT COST | 432 | 547 | 434 | 127 | 265 | 90 | ||||||||||||||||||||||||||
Dividends on ESOP preferred stock | — | — | — | (64 | ) | (70 | ) | (74 | ) | |||||||||||||||||||||||
NET PERIODIC BENEFIT COST/(CREDIT) | 432 | 547 | 434 | 63 | 195 | 16 | ||||||||||||||||||||||||||
CHANGE IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN AOCI | ||||||||||||||||||||||||||||||||
Net actuarial loss /(gain) - current year | 1,102 | 264 | 215 | (1,594 | ) | |||||||||||||||||||||||||||
Prior service cost/(credit) - current year | 4 | 104 | (5 | ) | — | |||||||||||||||||||||||||||
Amortization of net actuarial loss | (214 | ) | (213 | ) | (118 | ) | (199 | ) | ||||||||||||||||||||||||
Amortization of prior service (cost) / credit | (26 | ) | (18 | ) | 20 | 20 | ||||||||||||||||||||||||||
Settlement / curtailment cost | — | (4 | ) | — | — | |||||||||||||||||||||||||||
Currency translation and other | 245 | (2 | ) | 2 | 1 | |||||||||||||||||||||||||||
TOTAL CHANGE IN AOCI | 1,111 | 131 | 114 | (1,772 | ) | |||||||||||||||||||||||||||
NET AMOUNTS RECOGNIZED IN PERIODIC BENEFIT COST AND AOCI | 1,543 | 678 | 177 | (1,577 | ) | |||||||||||||||||||||||||||
Pension Benefits | Other Retiree Benefits | |||||||||||||||||||||||||||||||
June 30 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
CLASSIFICATION OF NET AMOUNT RECOGNIZED | ||||||||||||||||||||||||||||||||
Noncurrent assets | $ | 69 | $ | 114 | $ | — | $ | — | ||||||||||||||||||||||||
Current liabilities | (40 | ) | (40 | ) | (25 | ) | (23 | ) | ||||||||||||||||||||||||
Noncurrent liabilities | (5,984 | ) | (6,027 | ) | (1,906 | ) | (1,713 | ) | ||||||||||||||||||||||||
NET AMOUNT RECOGNIZED | (5,955 | ) | (5,953 | ) | (1,931 | ) | (1,736 | ) | ||||||||||||||||||||||||
AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) | ||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 5,169 | $ | 4,049 | $ | 1,871 | $ | 1,772 | ||||||||||||||||||||||||
Prior service cost /(credit) | 344 | 353 | (39 | ) | (54 | ) | ||||||||||||||||||||||||||
NET AMOUNTS RECOGNIZED IN AOCI | 5,513 | 4,402 | 1,832 | 1,718 | ||||||||||||||||||||||||||||
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 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
CHANGE IN BENEFIT OBLIGATION | ||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year(3) | $ | 14,514 | $ | 13,573 | $ | 5,289 | $ | 6,006 | ||||||||||||||||||||||||
Service cost | 298 | 300 | 149 | 190 | ||||||||||||||||||||||||||||
Interest cost | 590 | 560 | 256 | 260 | ||||||||||||||||||||||||||||
Participants' contributions | 20 | 20 | 72 | 66 | ||||||||||||||||||||||||||||
Amendments | 4 | 104 | (5 | ) | — | |||||||||||||||||||||||||||
Actuarial loss/(gain) | 1,365 | 473 | (46 | ) | (1,022 | ) | ||||||||||||||||||||||||||
Acquisitions | — | 51 | — | — | ||||||||||||||||||||||||||||
Special termination benefits | 5 | 39 | 9 | 18 | ||||||||||||||||||||||||||||
Currency translation and other | 797 | (4 | ) | 20 | 5 | |||||||||||||||||||||||||||
Benefit payments | (540 | ) | (602 | ) | (239 | ) | (234 | ) | ||||||||||||||||||||||||
BENEFIT OBLIGATION AT END OF YEAR(3) | 17,053 | 14,514 | 5,505 | 5,289 | ||||||||||||||||||||||||||||
CHANGE IN PLAN ASSETS | ||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | 8,561 | 7,974 | 3,553 | 2,713 | ||||||||||||||||||||||||||||
Actual return on plan assets | 964 | 796 | 124 | 954 | ||||||||||||||||||||||||||||
Acquisitions | — | 59 | — | — | ||||||||||||||||||||||||||||
Employer contributions | 1,549 | 391 | 31 | 23 | ||||||||||||||||||||||||||||
Participants' contributions | 20 | 20 | 72 | 66 | ||||||||||||||||||||||||||||
Currency translation and other | 544 | (77 | ) | — | — | |||||||||||||||||||||||||||
ESOP debt impacts(4) | — | — | 33 | 31 | ||||||||||||||||||||||||||||
Benefit payments | (540 | ) | (602 | ) | (239 | ) | (234 | ) | ||||||||||||||||||||||||
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | 11,098 | 8,561 | 3,574 | 3,553 | ||||||||||||||||||||||||||||
FUNDED STATUS | (5,955 | ) | (5,953 | ) | (1,931 | ) | (1,736 | ) | ||||||||||||||||||||||||
(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. | |||||||||||||||||||||||||||||||
Amounts expected to be amortized from AOCI into net periodic benefit cost during the year ending June 30, 2015, are as follows: | ||||||||||||||||||||||||||||||||
Pension Benefits | Other Retiree Benefits | |||||||||||||||||||||||||||||||
Net actuarial loss | $ | 299 | $ | 106 | ||||||||||||||||||||||||||||
Prior service cost/(credit) | 31 | (20 | ) | |||||||||||||||||||||||||||||
Target Asset Allocation and Actual Asset Allocation | ' | |||||||||||||||||||||||||||||||
Our target asset allocation for the year ended June 30, 2014, and actual asset allocation by asset category as of June 30, 2014 and 2013, were as follows: | ||||||||||||||||||||||||||||||||
Target Asset Allocation | Actual Asset Allocation at June 30 | |||||||||||||||||||||||||||||||
Pension Benefits | Other Retiree | |||||||||||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||||||||||
Asset Category | Pension Benefits | Other Retiree | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||||||||||
Cash | 1 | % | 2 | % | 1 | % | 1 | % | 1 | % | 2 | % | ||||||||||||||||||||
Debt securities | 52 | % | 8 | % | 51 | % | 52 | % | 6 | % | 6 | % | ||||||||||||||||||||
Equity securities | 47 | % | 90 | % | 48 | % | 47 | % | 93 | % | 92 | % | ||||||||||||||||||||
TOTAL | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||
Fair Value of the Company's Plan Assets Segregated by Level within the Fair Value Hierarchy | ' | |||||||||||||||||||||||||||||||
Pension Benefits | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
30-Jun | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
ASSETS AT FAIR VALUE | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 79 | $ | 71 | $ | — | $ | — | $ | — | $ | — | $ | 79 | $ | 71 | ||||||||||||||||
Common collective fund - equity | — | — | 5,336 | 3,993 | — | — | 5,336 | 3,993 | ||||||||||||||||||||||||
Common collective fund - fixed income | — | — | 5,539 | 4,361 | — | — | 5,539 | 4,361 | ||||||||||||||||||||||||
Other | 5 | 4 | — | — | 139 | 132 | 144 | 136 | ||||||||||||||||||||||||
TOTAL ASSETS AT FAIR VALUE | 84 | 75 | 10,875 | 8,354 | 139 | 132 | 11,098 | 8,561 | ||||||||||||||||||||||||
Other Retiree Benefits | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
30-Jun | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
ASSETS AT FAIR VALUE | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 30 | $ | 56 | $ | — | $ | — | $ | — | $ | — | $ | 30 | $ | 56 | ||||||||||||||||
Company stock | — | — | 3,304 | 3,270 | — | — | 3,304 | 3,270 | ||||||||||||||||||||||||
Common collective fund - equity | — | — | 18 | 16 | — | — | 18 | 16 | ||||||||||||||||||||||||
Common collective fund - fixed income | — | — | 217 | 200 | — | — | 217 | 200 | ||||||||||||||||||||||||
Other | — | — | — | — | 5 | 11 | 5 | 11 | ||||||||||||||||||||||||
TOTAL ASSETS AT FAIR VALUE | 30 | 56 | 3,539 | 3,486 | 5 | 11 | 3,574 | 3,553 | ||||||||||||||||||||||||
Total Benefit Payments Expected to be Paid to Participants | ' | |||||||||||||||||||||||||||||||
Total benefit payments expected to be paid to participants, which include payments funded from the Company's assets, as discussed above, as well as payments from the plans, are as follows: | ||||||||||||||||||||||||||||||||
Years ending June 30 | Pension | Other Retiree | ||||||||||||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||||||||||
EXPECTED BENEFIT PAYMENTS | ||||||||||||||||||||||||||||||||
2015 | $ | 584 | $ | 203 | ||||||||||||||||||||||||||||
2016 | 578 | 218 | ||||||||||||||||||||||||||||||
2017 | 604 | 233 | ||||||||||||||||||||||||||||||
2018 | 614 | 248 | ||||||||||||||||||||||||||||||
2019 | 624 | 264 | ||||||||||||||||||||||||||||||
2020 - 2024 | 3,615 | 1,528 | ||||||||||||||||||||||||||||||
Series A and B Preferred Shares of the ESOP Number of Shares Outstanding | ' | |||||||||||||||||||||||||||||||
The number of preferred shares outstanding at June 30 was as follows: | ||||||||||||||||||||||||||||||||
Shares in thousands | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Allocated | 44,465 | 45,535 | 50,668 | |||||||||||||||||||||||||||||
Unallocated | 8,474 | 9,843 | 11,348 | |||||||||||||||||||||||||||||
TOTAL SERIES A | 52,939 | 55,378 | 62,016 | |||||||||||||||||||||||||||||
Allocated | 22,085 | 21,278 | 20,802 | |||||||||||||||||||||||||||||
Unallocated | 35,753 | 37,300 | 38,743 | |||||||||||||||||||||||||||||
TOTAL SERIES B | 57,838 | 58,578 | 59,545 | |||||||||||||||||||||||||||||
INCOME_TAXES_TABLES
INCOME TAXES (TABLES) | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Notes to Financial Statements [Abstract] | ' | ||||||||||||
Reconciliation Of Operating Income By Geography Text Block | ' | ||||||||||||
Earnings from continuing operations before income taxes consisted of the following: | |||||||||||||
Years ended June 30 | 2014 | 2013 | 2012 | ||||||||||
United States | $ | 9,005 | $ | 8,260 | $ | 7,398 | |||||||
International | 5,880 | 6,432 | 5,130 | ||||||||||
TOTAL | 14,885 | 14,692 | 12,528 | ||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||||||
Income taxes on continuing operations consisted of the following: | |||||||||||||
Years ended June 30 | 2014 | 2013 | 2012 | ||||||||||
CURRENT TAX EXPENSE | |||||||||||||
U.S. federal | $ | 1,606 | $ | 1,845 | $ | 1,837 | |||||||
International | 1,379 | 1,567 | 1,357 | ||||||||||
U.S. state and local | 237 | 279 | 246 | ||||||||||
3,222 | 3,691 | 3,440 | |||||||||||
DEFERRED TAX EXPENSE | |||||||||||||
U.S. federal | 135 | 185 | 86 | ||||||||||
International and other | (179 | ) | (485 | ) | (148 | ) | |||||||
(44 | ) | (300 | ) | (62 | ) | ||||||||
TOTAL TAX EXPENSE | 3,178 | 3,391 | 3,378 | ||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||||||
A reconciliation of the U.S. federal statutory income tax rate to our actual income tax rate on continuing operations is provided below: | |||||||||||||
Years ended June 30 | 2014 | 2013 | 2012 | ||||||||||
U.S. federal statutory income tax rate | 35 | % | 35 | % | 35 | % | |||||||
Country mix impacts of foreign operations | (10.9 | )% | (7.7 | )% | (8.2 | )% | |||||||
Changes in uncertain tax positions | (1.5 | )% | (1.8 | )% | (1.3 | )% | |||||||
Impairment adjustments | — | % | 0.6 | % | 3.8 | % | |||||||
Holding gain on joint venture buy-out | — | % | (1.4 | )% | — | % | |||||||
Other | (1.2 | )% | (1.6 | )% | (2.3 | )% | |||||||
EFFECTIVE INCOME TAX RATE | 21.4 | % | 23.1 | % | 27 | % | |||||||
Unrecognized Tax Benefits Reconciliation Table Text Block | ' | ||||||||||||
A reconciliation of the beginning and ending liability for uncertain tax positions is as follows: | |||||||||||||
Years ended June 30 | 2014 | 2013 | 2012 | ||||||||||
BEGINNING OF YEAR | $ | 1,600 | $ | 1,773 | $ | 1,848 | |||||||
Increases in tax positions for prior years | 146 | 162 | 166 | ||||||||||
Decreases in tax positions for prior years | (296 | ) | (225 | ) | (188 | ) | |||||||
Increases in tax positions for current year | 142 | 188 | 178 | ||||||||||
Settlements with taxing authorities | (135 | ) | (195 | ) | (49 | ) | |||||||
Lapse in statute of limitations | (33 | ) | (98 | ) | (81 | ) | |||||||
Currency translation | 13 | (5 | ) | (101 | ) | ||||||||
END OF YEAR | 1,437 | 1,600 | 1,773 | ||||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||||||
Deferred income tax assets and liabilities were comprised of the following: | |||||||||||||
June 30 | 2014 | 2013 | |||||||||||
DEFERRED TAX ASSETS | |||||||||||||
Pension and postretirement benefits | $ | 2,045 | $ | 1,777 | |||||||||
Stock-based compensation | 1,060 | 1,125 | |||||||||||
Loss and other carryforwards | 1,211 | 1,062 | |||||||||||
Goodwill and other intangible assets | 49 | 60 | |||||||||||
Accrued marketing and promotion | 258 | 285 | |||||||||||
Fixed assets | 115 | 135 | |||||||||||
Unrealized loss on financial and foreign exchange transactions | 352 | 324 | |||||||||||
Accrued interest and taxes | 66 | 15 | |||||||||||
Inventory | 35 | 46 | |||||||||||
Other | 809 | 879 | |||||||||||
Valuation allowances | (384 | ) | (341 | ) | |||||||||
TOTAL | 5,616 | 5,367 | |||||||||||
DEFERRED TAX LIABILITIES | |||||||||||||
Goodwill and other intangible assets | $ | 11,428 | $ | 11,941 | |||||||||
Fixed assets | 1,665 | 1,718 | |||||||||||
Other | 144 | 315 | |||||||||||
TOTAL | 13,237 | 13,974 | |||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (TABLES) | 12 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||||||||||||||||
Schedule of Purchase Obligations | ' | |||||||||||||||||||||||
Commitments made under take-or-pay obligations are as follows: | ||||||||||||||||||||||||
Years ended June 30 | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||
Purchase obligations | $ | 1,068 | $ | 268 | $ | 164 | $ | 92 | $ | 72 | $ | 321 | ||||||||||||
Operating Lease Payments, Net | ' | |||||||||||||||||||||||
Future minimum rental commitments under non-cancelable operating leases, net of guaranteed sublease income, are as follows: | ||||||||||||||||||||||||
Years ended June 30 | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||
Operating leases | $ | 288 | $ | 273 | $ | 236 | $ | 216 | $ | 188 | $ | 743 | ||||||||||||
SEGMENT_INFORMATION_TABLES
SEGMENT INFORMATION (TABLES) | 12 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||||||||||||||||||
Global Segment Results | ' | |||||||||||||||||||||||||
% of Sales by Business Unit | ||||||||||||||||||||||||||
Years ended June 30 | 2014 | 2013 | 2012 | |||||||||||||||||||||||
Fabric Care | 20% | 20% | 20% | |||||||||||||||||||||||
Baby Care | 13% | 13% | 13% | |||||||||||||||||||||||
Hair Care and Color | 11% | 11% | 12% | |||||||||||||||||||||||
Shave Care | 9% | 9% | 9% | |||||||||||||||||||||||
Beauty Care | 7% | 7% | 7% | |||||||||||||||||||||||
Home Care | 7% | 7% | 7% | |||||||||||||||||||||||
Family Care | 7% | 7% | 6% | |||||||||||||||||||||||
Oral Care | 7% | 6% | 6% | |||||||||||||||||||||||
Feminine Care | 5% | 5% | 5% | |||||||||||||||||||||||
All Other | 14% | 15% | 15% | |||||||||||||||||||||||
Total | 100% | 100% | 100% | |||||||||||||||||||||||
Global Segment Results | Net Sales | Earnings /(Loss) | Net Earnings / (Loss) from Continuing Operations | Depreciation | Total | Capital | ||||||||||||||||||||
from | and | Assets | Expenditures | |||||||||||||||||||||||
Continuing | Amortization | |||||||||||||||||||||||||
Operations | ||||||||||||||||||||||||||
Before | ||||||||||||||||||||||||||
Income Taxes | ||||||||||||||||||||||||||
BEAUTY | 2014 | $ | 19,507 | $ | 3,530 | $ | 2,739 | $ | 394 | $ | 8,576 | $ | 502 | |||||||||||||
2013 | 19,956 | 3,215 | 2,474 | 375 | 8,396 | 541 | ||||||||||||||||||||
2012 | 20,318 | 3,196 | 2,390 | 379 | 8,357 | 569 | ||||||||||||||||||||
GROOMING | 2014 | 8,009 | 2,589 | 1,954 | 576 | 23,767 | 369 | |||||||||||||||||||
2013 | 8,038 | 2,458 | 1,837 | 603 | 23,971 | 378 | ||||||||||||||||||||
2012 | 8,339 | 2,395 | 1,807 | 623 | 24,518 | 392 | ||||||||||||||||||||
HEALTH CARE | 2014 | 7,798 | 1,597 | 1,083 | 199 | 5,879 | 253 | |||||||||||||||||||
2013 | 7,684 | 1,582 | 1,093 | 191 | 5,933 | 248 | ||||||||||||||||||||
2012 | 7,235 | 1,520 | 1,022 | 186 | 5,832 | 251 | ||||||||||||||||||||
FABRIC CARE AND HOME CARE | 2014 | 26,060 | 4,678 | 3,039 | 625 | 11,384 | 1,154 | |||||||||||||||||||
2013 | 25,862 | 4,757 | 3,089 | 639 | 11,231 | 1,064 | ||||||||||||||||||||
2012 | 25,580 | 4,485 | 2,816 | 627 | 10,647 | 965 | ||||||||||||||||||||
BABY, FEMININE AND FAMILY CARE | 2014 | 20,950 | 4,310 | 2,940 | 908 | 10,946 | 1,317 | |||||||||||||||||||
2013 | 20,479 | 4,507 | 3,047 | 837 | 10,926 | 1,560 | ||||||||||||||||||||
2012 | 19,714 | 4,271 | 2,927 | 753 | 9,203 | 1,495 | ||||||||||||||||||||
CORPORATE(1) | 2014 | 738 | (1,819 | ) | (48 | ) | 439 | 83,714 | 253 | |||||||||||||||||
2013 | 562 | (1,827 | ) | (239 | ) | 337 | 78,806 | 217 | ||||||||||||||||||
2012 | 820 | (3,339 | ) | (1,812 | ) | 636 | 73,687 | 292 | ||||||||||||||||||
TOTAL COMPANY | 2014 | 83,062 | 14,885 | 11,707 | 3,141 | 144,266 | 3,848 | |||||||||||||||||||
2013 | 82,581 | 14,692 | 11,301 | 2,982 | 139,263 | 4,008 | ||||||||||||||||||||
2012 | 82,006 | 12,528 | 9,150 | 3,204 | 132,244 | 3,964 | ||||||||||||||||||||
(1) | The Corporate reportable segment includes depreciation and amortization, total assets and capital expenditures of the Snacks business prior to its divestiture effective May 31, 2012 and of the Pet Care business. |
DISCONTINUED_OPERATIONS_TABLES
DISCONTINUED OPERATIONS (TABLES) | 12 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||||||||||||||
Net Earnings from Discontinued Operations | ' | ||||||||||||||||||||||||
Following is selected financial information included in net earnings from discontinued operations for the pet care and snacks businesses: | |||||||||||||||||||||||||
Net Sales | Earnings from Discontinued Operations | Income Tax Expense | Gain on Sale of Discontinued Operations | Income Tax Benefit/(Expense) on Sale | Net Earnings from Discontinued Operations | ||||||||||||||||||||
PET CARE | 2014 | $ | 1,475 | $ | 130 | $ | (52 | ) | $ | — | $ | — | $ | 78 | |||||||||||
2013 | 1,586 | 151 | (50 | ) | — | — | 101 | ||||||||||||||||||
2012 | 1,674 | 257 | (90 | ) | — | — | 167 | ||||||||||||||||||
SNACKS | 2014 | — | — | — | — | — | — | ||||||||||||||||||
2013 | — | — | — | — | — | — | |||||||||||||||||||
2012 | 1,440 | 266 | (96 | ) | 1,899 | (482 | ) | 1,587 | |||||||||||||||||
TOTAL | 2014 | 1,475 | 130 | (52 | ) | — | — | 78 | |||||||||||||||||
2013 | 1,586 | 151 | (50 | ) | — | — | 101 | ||||||||||||||||||
2012 | 3,114 | 523 | (186 | ) | 1,899 | (482 | ) | 1,754 | |||||||||||||||||
Major Components of Assets and Liabilities of Disposal Group Held for Sale | ' | ||||||||||||||||||||||||
At June 30, 2014, the major components of assets and liabilities of the Pet Care business held for sale were as follows: | |||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Inventories | $ | 122 | |||||||||||||||||||||||
Prepaid expenses and other current assets | 14 | ||||||||||||||||||||||||
Property, plant and equipment, net | 441 | ||||||||||||||||||||||||
Goodwill and intangible assets, net | 2,258 | ||||||||||||||||||||||||
Other noncurrent assets | 14 | ||||||||||||||||||||||||
Total assets held for sale | 2,849 | ||||||||||||||||||||||||
Accounts payable | 63 | ||||||||||||||||||||||||
Accrued and other liabilities | 13 | ||||||||||||||||||||||||
Noncurrent deferred tax liabilities | 584 | ||||||||||||||||||||||||
Total liabilities held for sale | 660 | ||||||||||||||||||||||||
QUARTERLY_RESULTS_UNAUDITED_TA
QUARTERLY RESULTS (UNAUDITED) (TABLES) | 12 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||||||
Quarterly Results (Unaudited) | ' | |||||||||||||||||||||||
Quarters Ended | 30-Sep | 31-Dec | 31-Mar | 30-Jun | Total Year | |||||||||||||||||||
NET SALES | 2013-2014 | $ | 20,830 | $ | 21,897 | $ | 20,178 | $ | 20,157 | $ | 83,062 | |||||||||||||
2012-2013 | 20,342 | 21,737 | 20,205 | 20,297 | 82,581 | |||||||||||||||||||
OPERATING INCOME | 2013-2014 | 4,120 | 4,523 | 3,405 | 3,240 | 15,288 | ||||||||||||||||||
2012-2013 | 3,889 | 4,429 | 3,361 | 2,651 | (3 | ) | 14,330 | |||||||||||||||||
GROSS MARGIN | 2013-2014 | 49.2 | % | 50.3 | % | 48.6 | % | 47.2 | % | 48.9 | % | |||||||||||||
2012-2013 | 50.3 | % | 51.2 | % | 50 | % | 47.9 | % | 49.9 | % | ||||||||||||||
NET EARNINGS: | ||||||||||||||||||||||||
Net earnings from continuing operations | 2013-2014 | $ | 3,039 | $ | 3,454 | $ | 2,603 | $ | 2,611 | $ | 11,707 | |||||||||||||
2012-2013 | 2,812 | 4,034 | (2 | ) | 2,562 | 1,893 | (3 | ) | 11,301 | |||||||||||||||
Net earnings from discontinued operations | 2013-2014 | 18 | 18 | 33 | 9 | 78 | ||||||||||||||||||
2012-2013 | 41 | 42 | 29 | (11 | ) | 101 | ||||||||||||||||||
Net earnings attributable to Procter & Gamble | 2013-2014 | 3,027 | 3,428 | 2,609 | 2,579 | 11,643 | ||||||||||||||||||
2012-2013 | 2,814 | 4,057 | (2 | ) | 2,566 | 1,875 | (3 | ) | 11,312 | |||||||||||||||
DILUTED NET EARNINGS PER COMMON SHARE: (1) | ||||||||||||||||||||||||
Earnings from continuing operations | 2013-2014 | $ | 1.03 | $ | 1.17 | $ | 0.89 | $ | 0.89 | $ | 3.98 | |||||||||||||
2012-2013 | 0.95 | 1.38 | 0.87 | 0.64 | 3.83 | |||||||||||||||||||
Earnings from discontinued operations | 2013-2014 | 0.01 | 0.01 | 0.01 | — | 0.03 | ||||||||||||||||||
2012-2013 | 0.01 | 0.01 | 0.01 | — | 0.03 | |||||||||||||||||||
Net earnings | 2013-2014 | 1.04 | 1.18 | 0.9 | 0.89 | 4.01 | ||||||||||||||||||
2012-2013 | 0.96 | 1.39 | 0.88 | 0.64 | 3.86 | |||||||||||||||||||
(1) | Diluted net earnings per share is calculated on earnings attributable to Procter & Gamble. | |||||||||||||||||||||||
(2) | The Company acquired the balance of its Baby Care and Feminine Care joint venture in Iberia in October 2012 resulting in a non-operating gain of $623. | |||||||||||||||||||||||
(3) | During the fourth quarter of fiscal year 2013, the Company recorded before-tax goodwill and indefinite-lived intangible assets impairment charges of $308 ($290 after-tax). For additional details, see Note 2. | |||||||||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (DETAILS) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
countries | |||
Research and Development Expense | $2,000,000,000 | $2,000,000,000 | $2,000,000,000 |
Countries in which product sold | 180 | ' | ' |
Countries with on the ground operations | 70 | ' | ' |
Currency translation adjustments | 1,400,000,000 | 353,000,000 | ' |
Advertising costs | $9,200,000,000 | $9,600,000,000 | $9,200,000,000 |
Customer Relationships | Minimum | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '5 years | ' | ' |
Customer Relationships | Maximum | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '30 years | ' | ' |
Furniture and Fixtures | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '15 years | ' | ' |
Computer Equipment and Capitalized Software | Minimum | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '3 years | ' | ' |
Computer Equipment and Capitalized Software | Maximum | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '5 years | ' | ' |
Manufacturing Equipment | Minimum | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '3 years | ' | ' |
Manufacturing Equipment | Maximum | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '20 years | ' | ' |
Building | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '40 years | ' | ' |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS Goodwill & Intangibles Additional Information (Details) (USD $) | 6 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||||
Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2012 | Dec. 31, 2012 | Oct. 31, 2012 | |
Trade Names [Member] | Baby, Feminine and Family Care Segment Member | Baby, Feminine and Family Care Segment Member | Baby, Feminine and Family Care Segment Member | Grooming Segment Member | Grooming Segment Member | Grooming Segment Member | Grooming Segment Member | Beauty Segment Member | Beauty Segment Member | Beauty Segment Member | Iberia joint venture buy out [Member] | Iberia joint venture buy out [Member] | |||||
Appliances [Member] | Baby, Feminine and Family Care Segment Member | Baby, Feminine and Family Care Segment Member | |||||||||||||||
Payments to Acquire Businesses, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,100,000,000 | ' |
Goodwill, Net | 55,188,000,000 | 55,188,000,000 | 53,773,000,000 | 53,704,000,000 | ' | 4,828,000,000 | 4,910,000,000 | 3,684,000,000 | 20,617,000,000 | 20,939,000,000 | 20,680,000,000 | ' | 16,663,000,000 | 17,040,000,000 | 16,429,000,000 | ' | 1,100,000,000 |
Intangible Asset Impairment Charges After Tax [Line Items] | ' | ' | ' | ' | 173,000,000 | ' | ' | ' | ' | ' | ' | 31,000,000 | ' | ' | ' | ' | ' |
Goodwill, Impairment Loss | ' | -259,000,000 | -1,330,000,000 | ' | ' | 0 | ' | ' | -259,000,000 | ' | ' | ' | 0 | ' | ' | ' | ' |
Deferred Tax Liabilities, Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000,000 |
Business Acquisition, Preexisting Relationship, Gain (Loss) Recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $600,000,000 | ' |
Percent of Devaluation in Japan Currency | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
GOODWILL_AND_INTANGIBLE_ASSETS3
GOODWILL AND INTANGIBLE ASSETS - GOODWILL BY GLOBAL BUSINESS UNIT (DETAILS) (USD $) | 6 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Oct. 31, 2012 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | |
Beauty Segment Member | Beauty Segment Member | Beauty Segment Member | Grooming Segment Member | Grooming Segment Member | Grooming Segment Member | Health Care Segment Member | Health Care Segment Member | Health Care Segment Member | Fabric Care And Home Care Segment Member | Fabric Care And Home Care Segment Member | Fabric Care And Home Care Segment Member | Baby, Feminine and Family Care Segment Member | Baby, Feminine and Family Care Segment Member | Baby, Feminine and Family Care Segment Member | Corporate [Member] | Corporate [Member] | Corporate [Member] | Iberia joint venture buy out [Member] | Iberia joint venture buy out [Member] | Trade Names [Member] | Appliances [Member] | Trade Names [Member] | |||||
Baby, Feminine and Family Care Segment Member | Baby, Feminine and Family Care Segment Member | Grooming Segment Member | |||||||||||||||||||||||||
Impairment of Intangible Assets (Excluding Goodwill) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $49,000,000 | ' |
Deferred Tax Liabilities, Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | ' | ' | ' |
Business Acquisition, Preexisting Relationship, Gain (Loss) Recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000,000 | ' | ' | ' | ' |
Goodwill - Gross | 56,777,000,000 | 55,293,000,000 | 56,777,000,000 | 55,103,000,000 | 17,471,000,000 | 17,094,000,000 | 16,860,000,000 | 22,097,000,000 | 21,775,000,000 | 21,579,000,000 | 6,280,000,000 | 6,185,000,000 | 6,115,000,000 | 4,535,000,000 | 4,453,000,000 | 4,424,000,000 | 4,910,000,000 | 4,828,000,000 | 3,684,000,000 | 0 | 2,442,000,000 | 2,441,000,000 | ' | ' | ' | ' | ' |
Accumulated impairment losses | -1,589,000,000 | -1,589,000,000 | -1,589,000,000 | -1,330,000,000 | -431,000,000 | -431,000,000 | -431,000,000 | -1,158,000,000 | -1,158,000,000 | -899,000,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' |
Goodwill - Net | 55,188,000,000 | 53,704,000,000 | 55,188,000,000 | 53,773,000,000 | 17,040,000,000 | 16,663,000,000 | ' | 20,939,000,000 | 20,617,000,000 | ' | 6,280,000,000 | 6,185,000,000 | ' | 4,535,000,000 | 4,453,000,000 | ' | 4,910,000,000 | 4,828,000,000 | ' | 0 | 2,442,000,000 | ' | ' | 1,100,000,000 | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill, net , beginning of year | ' | 55,188,000,000 | 53,773,000,000 | ' | 16,663,000,000 | 16,429,000,000 | ' | 20,617,000,000 | 20,680,000,000 | ' | 6,185,000,000 | 6,115,000,000 | ' | 4,453,000,000 | 4,424,000,000 | ' | 4,828,000,000 | 3,684,000,000 | ' | 2,442,000,000 | 2,441,000,000 | ' | ' | 1,100,000,000 | ' | ' | ' |
Acquisitions and divestitures | ' | -2,448,000,000 | 1,015,000,000 | ' | 0 | -21,000,000 | ' | 0 | -40,000,000 | ' | 0 | 0 | ' | -3,000,000 | -14,000,000 | ' | 0 | 1,090,000,000 | ' | -2,445,000,000 | 0 | ' | ' | ' | ' | ' | ' |
Goodwill, Impairment Loss | ' | ' | -259,000,000 | -1,330,000,000 | ' | 0 | ' | ' | -259,000,000 | ' | ' | 0 | ' | ' | 0 | ' | ' | 0 | ' | ' | 0 | ' | ' | ' | ' | ' | ' |
Translation and other | ' | 964,000,000 | 659,000,000 | ' | 377,000,000 | 255,000,000 | ' | 322,000,000 | 236,000,000 | ' | 95,000,000 | 70,000,000 | ' | 85,000,000 | 43,000,000 | ' | 82,000,000 | 54,000,000 | ' | 3,000,000 | 1,000,000 | ' | ' | ' | ' | ' | ' |
Goodwill, net, end of year | 55,188,000,000 | 53,704,000,000 | 55,188,000,000 | 53,773,000,000 | 17,040,000,000 | 16,663,000,000 | ' | 20,939,000,000 | 20,617,000,000 | ' | 6,280,000,000 | 6,185,000,000 | ' | 4,535,000,000 | 4,453,000,000 | ' | 4,910,000,000 | 4,828,000,000 | ' | 0 | 2,442,000,000 | ' | ' | 1,100,000,000 | ' | ' | ' |
Payments to Acquire Businesses, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000,000 | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,900,000,000 | ' | ' | ' |
Business Combination, Recognized identifiable Assets and Liabilities Assumed, indefinite-lived intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900,000,000 | ' | ' | ' |
Asset Impairment Charges, Finite-lived | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 246,000,000 | ' | ' |
Intangible Asset Impairment Charges After Tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $31,000,000 | $173,000,000 |
Percent of Devaluation in Japan Currency | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
GOODWILL_AND_INTANGIBLE_ASSETS4
GOODWILL AND INTANGIBLE ASSETS - INTANGIBLE ASSETS (DETAILS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Finite-Lived Intangible Assets, Gross | $9,361 | $9,693 | ' |
Accumulated Amortization | -5,214 | -4,923 | ' |
Intangible Assets, Gross (Excluding Goodwill) | 36,057 | 36,495 | ' |
Amortization of Intangible Assets | 514 | 528 | 500 |
Trade Names [Member] | ' | ' | ' |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 26,696 | 26,802 | ' |
Other Intangible Assets [Member] | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 355 | 348 | ' |
Accumulated Amortization | -164 | -168 | ' |
Customer Relationships [Member] | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 2,002 | 2,118 | ' |
Accumulated Amortization | -763 | -703 | ' |
Patents and Developed Technology [Member] | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 2,850 | 2,976 | ' |
Accumulated Amortization | -2,082 | -2,032 | ' |
Trade Names [Member] | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 4,154 | 4,251 | ' |
Accumulated Amortization | ($2,205) | ($2,020) | ' |
GOODWILL_AND_INTANGIBLE_ASSETS5
GOODWILL AND INTANGIBLE ASSETS - ESTIMATED AMORTIZATION EXPENSE (DETAILS) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' |
Estimated amortization expense - 2015 | $432 |
Estimated amortization expense - 2016 | 393 |
Estimated amortization expense - 2017 | 360 |
Estimated amortization expense - 2018 | 332 |
Estimated amortization expense - 2019 | $309 |
SUPPLEMENTAL_FINANCIAL_INFORMA2
SUPPLEMENTAL FINANCIAL INFORMATION (DETAILS) (USD $) | 12 Months Ended | 36 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ||
Restructuring Reserve Beginning Balance | $323 | $343 | ' | ||
Restructuring Charges | 806 | 956 | 2,800 | ||
Restructuring Reserve, Settled with Cash | -569 | -867 | ' | ||
Restructuring Charges Against Disposed Assets | -179 | -109 | ' | ||
Restructuring Reserve Ending Balance | 381 | 323 | 381 | ||
Beauty Segment Member | ' | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ||
Restructuring Charges | 83 | 132 | ' | ||
Grooming Segment Member | ' | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ||
Restructuring Charges | 20 | 50 | ' | ||
Health Care Segment Member | ' | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ||
Restructuring Charges | 10 | 14 | ' | ||
Fabric Care And Home Care Segment Member | ' | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ||
Restructuring Charges | 121 | 140 | ' | ||
Baby, Feminine and Family Care Segment Member | ' | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ||
Restructuring Charges | 155 | 129 | ' | ||
Corporate [Member] | ' | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ||
Restructuring Charges | 417 | [1] | 491 | [1] | ' |
Separation [Member] | ' | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ||
Restructuring Reserve Beginning Balance | 296 | 316 | ' | ||
Restructuring Charges | 378 | 595 | 1,500 | ||
Restructuring Reserve, Settled with Cash | -321 | -615 | ' | ||
Restructuring Charges Against Disposed Assets | 0 | 0 | ' | ||
Restructuring Reserve Ending Balance | 353 | 296 | 353 | ||
Restructuring- Asset Related Cost [Member] | ' | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ||
Restructuring Reserve Beginning Balance | 0 | 0 | ' | ||
Restructuring Charges | 179 | 109 | 666 | ||
Restructuring Reserve, Settled with Cash | 0 | 0 | ' | ||
Restructuring Charges Against Disposed Assets | -179 | -109 | ' | ||
Restructuring Reserve Ending Balance | 0 | 0 | 0 | ||
Other Restructuring [Member] | ' | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ||
Restructuring Reserve Beginning Balance | 27 | 27 | ' | ||
Restructuring Charges | 249 | 252 | 680 | ||
Restructuring Reserve, Settled with Cash | -248 | -252 | ' | ||
Restructuring Charges Against Disposed Assets | 0 | 0 | ' | ||
Restructuring Reserve Ending Balance | $28 | $27 | $28 | ||
[1] | Corporate includes costs related to allocated overheads, including charges related to our SMO, Global Business Services and Corporate Functions activities and costs related to discontinued operations from our divested Pet Care business. |
SUPPLEMENTAL_FINANCIAL_INFORMA3
SUPPLEMENTAL FINANCIAL INFORMATION SUPLEMENTAL FINANCIAL INFORMATION - Additional Information (Details) (USD $) | 12 Months Ended | 36 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | |
employees | employees | employees | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Severance Packages | 2,730 | 3,450 | 9,480 |
Restructuring and Related Cost, Expected Cost | $4,500,000,000 | ' | $4,500,000,000 |
Severance Packages - Non Manufacturing Overhead | 1,640 | 2,390 | 6,280 |
Restructuring Charges | 806,000,000 | 956,000,000 | 2,800,000,000 |
Selling, General and Administrative Expenses [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring Charges | 373,000,000 | 591,000,000 | ' |
Cost of Goods Sold [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring Charges | 399,000,000 | 354,000,000 | ' |
Separation [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring Charges | 378,000,000 | 595,000,000 | 1,500,000,000 |
Restructuring- Asset Related Cost [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring Charges | 179,000,000 | 109,000,000 | 666,000,000 |
Other Restructuring [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring Charges | 249,000,000 | 252,000,000 | 680,000,000 |
Non-manufacturing overhead personnel [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Number of Positions Eliminated | ' | ' | 9,300 |
Number of Positions Eliminated, Period Percent | ' | ' | 15.00% |
Minimum [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Historical Restructuring Costs Before Tax | 250,000,000 | ' | 250,000,000 |
Restructuring And Related Cost, Expected Number Of Positions Eliminated, Percent | 16.00% | ' | ' |
Maximum [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Historical Restructuring Costs Before Tax | $500,000,000 | ' | $500,000,000 |
Restructuring And Related Cost, Expected Number Of Positions Eliminated, Percent | 22.00% | ' | ' |
SUPPLEMENTAL_FINANCIAL_INFORMA4
SUPPLEMENTAL FINANCIAL INFORMATION Schedule of Property, Plant & Equipment (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ' | ' |
Buildings | $8,022 | $7,829 |
Machinery and Equipment | 32,398 | 31,070 |
Land | 893 | 878 |
Construction in Progress | 3,114 | 3,235 |
Total Property, Plant and Equipment | 44,427 | 43,012 |
Accumulated Depreciation | -22,123 | -21,346 |
TOTAL PROPERTY, PLANT AND EQUIPMENT, net | $22,304 | $21,666 |
SUPPLEMENTAL_FINANCIAL_INFORMA5
SUPPLEMENTAL FINANCIAL INFORMATION Other Liabilities (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
OTHER NONCURRENT LIABILITIES | ' | ' |
Pension benefits | $5,984 | $6,027 |
Other postretirement benefits | 1,906 | 1,713 |
Uncertain tax positions | 1,843 | 2,002 |
Other Non-Current Liabilities | 802 | 837 |
Total Liabilities, Noncurrent | 10,535 | 10,579 |
ACCRUED AND OTHER LIABILITIES - CURRENT | ' | ' |
Marketing and promotion | 3,290 | 3,122 |
Compensation expenses | 1,647 | 1,665 |
Restructuring Reserve | 381 | 323 |
Taxes payable | 711 | 817 |
Legal and environmental | 399 | 374 |
Other | 2,571 | 2,527 |
TOTAL | $8,999 | $8,828 |
SHORTTERM_AND_LONGTERM_DEBT_SH
SHORT-TERM AND LONG-TERM DEBT - SHORT-TERM DEBT (DETAILS) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | ||
In Millions, unless otherwise specified | ||||
DEBT DUE WITHIN ONE YEAR | ' | ' | ||
Current portion of long-term debt | $4,307 | $4,506 | ||
Commercial paper | 10,818 | 7,642 | ||
Other | 481 | 284 | ||
TOTAL | $15,606 | $12,432 | ||
Short-term weighted average interest rates | 0.70% | [1] | 0.50% | [1] |
[1] | Weighted average short-term interest rates include the effects of interest rate swaps discussed in Note 5. |
SHORTTERM_AND_LONGTERM_DEBT_LO
SHORT-TERM AND LONG-TERM DEBT - LONG-TERM DEBT (DETAILS) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | ||
In Millions, unless otherwise specified | ||||
LONG-TERM DEBT | ' | ' | ||
Current portion of long-term debt | ($4,307) | ($4,506) | ||
LONG-TERM DEBT | 19,811 | 19,111 | ||
Long-term weighted average interest rates | 3.20% | [1] | 3.30% | [1] |
4.95% USD note due August 2014 | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Long-term notes | 900 | 900 | ||
0.70% USD note due August 2014 [Member] | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Long-term notes | 1,000 | 1,000 | ||
3.50% USD note due February 2015 | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Long-term notes | 750 | 750 | ||
0.95% JPY note due May 2015 | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Long-term notes | 987 | 1,012 | ||
3.15% USD Note Due September 2015 | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Long-term notes | 500 | 500 | ||
1.80% USD note due November 2015 [Member] | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Long-term notes | 1,000 | 1,000 | ||
4.85% USD note due December 2015 | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Long-term notes | 700 | 700 | ||
1.45% USD note due August 2016 [Member] | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Long-term notes | 1,000 | 1,000 | ||
0.75% USD note due November 2016 [Member] | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Long-term notes | 500 | 0 | ||
Floating rate USD note due November 2016 [Member] | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Long-term notes | 500 | 0 | ||
5.13% EUR note due October 2017 | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Long-term notes | 1,501 | 1,437 | ||
1.60% USD note due November 2018 [Member] | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Long-term notes | 1,000 | 0 | ||
4.70% USD note due February 2019 | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Long-term notes | 1,250 | 1,250 | ||
4.13% EUR note due December 2020 | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Long-term notes | 819 | 784 | ||
4.88% EUR note due May 2027 | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Long-term notes | 1,365 | 1,307 | ||
6.25% GBP note due January 2030 | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Long-term notes | 851 | 764 | ||
5.50% USD note due February 2034 | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Long-term notes | 500 | 500 | ||
9.36% ESOP Debentures Due 2014 To 2021 [Member] | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Long-term notes | 640 | [2] | 701 | [2] |
2.00% EUR note due November 2021 [Member] | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Long-term notes | 1,023 | 0 | ||
2.30% USD note due Feb 2022 [Member] | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Long-term notes | 1,000 | 1,000 | ||
2.00% EUR note due Aug 2022 [Member] | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Long-term notes | 1,365 | 1,307 | ||
3.10% USD note due August 2023 [Member] | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Long-term notes | 1,000 | 0 | ||
5.80% USD note due August 2034 | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Long-term notes | 600 | 600 | ||
5.55% USD note due March 2037 | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Long-term notes | 1,400 | 1,400 | ||
Capital Lease Obligations [Member] | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
All other long-term debt | 83 | 31 | ||
All Other Long Term Debt [Member] | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
All other long-term debt | 1,884 | 5,674 | ||
Current Portion of Long Term Debt [Member] | ' | ' | ||
LONG-TERM DEBT | ' | ' | ||
Current portion of long-term debt | ($4,307) | ($4,506) | ||
[1] | Weighted average long-term interest rates include the effects of interest rate swaps discussed in Note 5. | |||
[2] | (1)B Debt issued by the ESOP is guaranteed by the Company and must be recorded as debt of the Company, as discussed in Note 9. |
SHORTTERM_AND_LONGTERM_DEBT_LO1
SHORT-TERM AND LONG-TERM DEBT - LONG-TERM DEBT MATURITIES (DETAILS) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Long-term debt maturities - 2015 | $4,307 |
Long-term debt maturities - 2016 | 2,356 |
Long-term debt maturities - 2017 | 2,123 |
Long-term debt maturities - 2018 | 1,605 |
Long-term debt maturities - 2019 | $2,357 |
RISK_MANAGEMENT_ACTIVITIES_AND2
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - ADDITIONAL INFORMATION (DETAILS) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
In Millions, unless otherwise specified | US Treasury and Government [Member] | US Treasury and Government [Member] | Corporate Debt Securities [Member] | Minimum [Member] | Maximum [Member] | Future [Member] | Options [Member] | Swap [Member] | ||
US Treasury and Government [Member] | US Treasury and Government [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative term of contract | ' | ' | ' | ' | ' | ' | ' | '1 year | '1 year | '5 years |
Available-for-sale Securities, Amortized Cost Basis | ' | ' | $1,649 | $1,604 | $497 | ' | ' | ' | ' | ' |
Available-for-sale maturities | ' | ' | ' | ' | ' | '1 year | '5 years | ' | ' | ' |
Amortized cost basis, maturing in less than one year | ' | ' | ' | ' | 39 | ' | ' | ' | ' | ' |
Amortized cost basis, maturing in one to five years | ' | ' | ' | ' | 458 | ' | ' | ' | ' | ' |
Industrial Development Bonds at Fair Value Level 2 | 455 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long Term Debt, Current Maturities measured at Fair Value | $4,400 | $4,540 | ' | ' | ' | ' | ' | ' | ' | ' |
RISK_MANAGEMENT_ACTIVITIES_AND3
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - FINANCIAL ASSETS AND LIABILITIES THAT ARE MEASURED AT FAIR VALUE ON A RECURRING BASIS (DETAILS) (Fair Value, Measurements, Recurring [Member], USD $) | Jun. 30, 2014 | Jun. 30, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Assets at fair value: | ' | ' | ||
Assets, Fair Value Disclosure | $6 | [1] | $23 | [1] |
Liabilities at fair value: | ' | ' | ||
Liabilities, Fair Value Disclosure | 0 | [2] | 0 | [2] |
Liabilities recorded & not recorded at fair value | 24,747 | 22,671 | ||
Fair Value, Inputs, Level 1 [Member] | US Treasury and Government [Member] | ' | ' | ||
Assets at fair value: | ' | ' | ||
Investment securities | 0 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | Corporate Bond Securities [Member] | ' | ' | ||
Assets at fair value: | ' | ' | ||
Investment securities | 0 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | Other Investments [Member] | ' | ' | ||
Assets at fair value: | ' | ' | ||
Investment securities | 6 | 23 | ||
Fair Value, Inputs, Level 1 [Member] | Other Foreign Currency Instruments | ' | ' | ||
Assets at fair value: | ' | ' | ||
Derivative assets | 0 | [3] | 0 | [3] |
Liabilities at fair value: | ' | ' | ||
Derivative liabilities | 0 | [3] | 0 | [3] |
Fair Value, Inputs, Level 1 [Member] | Interest Rate | ' | ' | ||
Assets at fair value: | ' | ' | ||
Derivative assets | 0 | 0 | ||
Liabilities at fair value: | ' | ' | ||
Derivative liabilities | 0 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | Derivatives in Net Investment Hedging Relationships | ' | ' | ||
Assets at fair value: | ' | ' | ||
Derivative assets | 0 | 0 | ||
Liabilities at fair value: | ' | ' | ||
Derivative liabilities | 0 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | Foreign currency hedges | ' | ' | ||
Assets at fair value: | ' | ' | ||
Derivative assets | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Assets at fair value: | ' | ' | ||
Assets, Fair Value Disclosure | 2,585 | [1] | 2,182 | [1] |
Liabilities at fair value: | ' | ' | ||
Liabilities, Fair Value Disclosure | 96 | [2] | 149 | [2] |
Liabilities recorded & not recorded at fair value | 1,778 | 3,171 | ||
Fair Value, Inputs, Level 2 [Member] | US Treasury and Government [Member] | ' | ' | ||
Assets at fair value: | ' | ' | ||
Investment securities | 1,631 | 1,571 | ||
Fair Value, Inputs, Level 2 [Member] | Corporate Bond Securities [Member] | ' | ' | ||
Assets at fair value: | ' | ' | ||
Investment securities | 497 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Other Investments [Member] | ' | ' | ||
Assets at fair value: | ' | ' | ||
Investment securities | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Other Foreign Currency Instruments | ' | ' | ||
Assets at fair value: | ' | ' | ||
Derivative assets | 24 | [3] | 19 | [3] |
Liabilities at fair value: | ' | ' | ||
Derivative liabilities | 66 | [3] | 90 | [3] |
Fair Value, Inputs, Level 2 [Member] | Interest Rate | ' | ' | ||
Assets at fair value: | ' | ' | ||
Derivative assets | 197 | 191 | ||
Liabilities at fair value: | ' | ' | ||
Derivative liabilities | 29 | 59 | ||
Fair Value, Inputs, Level 2 [Member] | Derivatives in Net Investment Hedging Relationships | ' | ' | ||
Assets at fair value: | ' | ' | ||
Derivative assets | 49 | 233 | ||
Liabilities at fair value: | ' | ' | ||
Derivative liabilities | 1 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Foreign currency hedges | ' | ' | ||
Assets at fair value: | ' | ' | ||
Derivative assets | 187 | 168 | ||
Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Assets at fair value: | ' | ' | ||
Assets, Fair Value Disclosure | 24 | [1] | 24 | [1] |
Liabilities at fair value: | ' | ' | ||
Liabilities, Fair Value Disclosure | 0 | [2] | 0 | [2] |
Liabilities recorded & not recorded at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | US Treasury and Government [Member] | ' | ' | ||
Assets at fair value: | ' | ' | ||
Investment securities | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Corporate Bond Securities [Member] | ' | ' | ||
Assets at fair value: | ' | ' | ||
Investment securities | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Other Investments [Member] | ' | ' | ||
Assets at fair value: | ' | ' | ||
Investment securities | 24 | 24 | ||
Fair Value, Inputs, Level 3 [Member] | Other Foreign Currency Instruments | ' | ' | ||
Assets at fair value: | ' | ' | ||
Derivative assets | 0 | [3] | 0 | [3] |
Liabilities at fair value: | ' | ' | ||
Derivative liabilities | 0 | [3] | 0 | [3] |
Fair Value, Inputs, Level 3 [Member] | Interest Rate | ' | ' | ||
Assets at fair value: | ' | ' | ||
Derivative assets | 0 | 0 | ||
Liabilities at fair value: | ' | ' | ||
Derivative liabilities | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Derivatives in Net Investment Hedging Relationships | ' | ' | ||
Assets at fair value: | ' | ' | ||
Derivative assets | 0 | 0 | ||
Liabilities at fair value: | ' | ' | ||
Derivative liabilities | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Foreign currency hedges | ' | ' | ||
Assets at fair value: | ' | ' | ||
Derivative assets | 0 | 0 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Assets at fair value: | ' | ' | ||
Assets, Fair Value Disclosure | 2,615 | [1] | 2,229 | [1] |
Liabilities at fair value: | ' | ' | ||
Liabilities, Fair Value Disclosure | 96 | [2] | 149 | [2] |
Liabilities recorded & not recorded at fair value | 26,525 | 25,842 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | US Treasury and Government [Member] | ' | ' | ||
Assets at fair value: | ' | ' | ||
Investment securities | 1,631 | 1,571 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Corporate Bond Securities [Member] | ' | ' | ||
Assets at fair value: | ' | ' | ||
Investment securities | 497 | 0 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Other Investments [Member] | ' | ' | ||
Assets at fair value: | ' | ' | ||
Investment securities | 30 | 47 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Other Foreign Currency Instruments | ' | ' | ||
Assets at fair value: | ' | ' | ||
Derivative assets | 24 | [3] | 19 | [3] |
Liabilities at fair value: | ' | ' | ||
Derivative liabilities | 66 | [3] | 90 | [3] |
Estimate of Fair Value, Fair Value Disclosure [Member] | Interest Rate | ' | ' | ||
Assets at fair value: | ' | ' | ||
Derivative assets | 197 | 191 | ||
Liabilities at fair value: | ' | ' | ||
Derivative liabilities | 29 | 59 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Derivatives in Net Investment Hedging Relationships | ' | ' | ||
Assets at fair value: | ' | ' | ||
Derivative assets | 49 | 233 | ||
Liabilities at fair value: | ' | ' | ||
Derivative liabilities | 1 | 0 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Foreign currency hedges | ' | ' | ||
Assets at fair value: | ' | ' | ||
Derivative assets | 187 | 168 | ||
Portion at Other than Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Liabilities at fair value: | ' | ' | ||
Long-term Debt, Fair Value | 24,747 | [4] | 22,671 | [4] |
Portion at Other than Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Liabilities at fair value: | ' | ' | ||
Long-term Debt, Fair Value | 1,682 | [4] | 3,022 | [4] |
Portion at Other than Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Liabilities at fair value: | ' | ' | ||
Long-term Debt, Fair Value | 0 | [4] | 0 | [4] |
Portion at Other than Fair Value, Fair Value Disclosure [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Liabilities at fair value: | ' | ' | ||
Long-term Debt, Fair Value | $26,429 | [4] | $25,693 | [4] |
[1] | Investment securities are presented in Available-for-sale investment securities and Other noncurrent assets, except the U.S. government securities are included in Other noncurrent assets in our Consolidated Balance Sheets at June 30, 2013. The amortized cost of the U.S. government securities was $1,649 and $1,604 as of June 30, 2014 and 2013, respectively. All U.S. government securities have contractual maturities between one and five years. The amortized cost of the corporate bond securities was $497 as of June 30, 2014. The amortized cost and fair value of corporate bond securities with maturities of less than a year was $39 as of June 30, 2014. The amortized cost and fair value of corporate bond securities with maturities between one and five years was $458 as of June 30, 2014. Fair values are generally estimated based upon quoted market prices for similar instruments. | |||
[2] | All liabilities are presented in accrued and other liabilities or other noncurrent liabilities. | |||
[3] | Other foreign currency instruments are comprised of foreign currency financial instruments that do not qualify as hedges. | |||
[4] | Long-term debt includes the current portion ($4,400 and $4,540 as of June 30, 2014 and 2013, respectively) of debt instruments. Long-term debt is not recorded at fair value on a recurring basis, but is measured at fair value for disclosure purposes. Fair values are generally estimated based on quoted market prices for identical or similar instruments. |
RISK_MANAGEMENT_ACTIVITIES_AND4
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - FAIR VALUES AND AMOUNTS OF GAINS AND LOSSES ON QUALIFYING AND NON-QUAIFYING FINANCIAL INSTRUMENTS USED IN HEDGING TRANSACTIONS (DETAILS) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | ||
Derivatives in Cash Flow Hedging Relationships | ' | ' | ||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | $17 | $21 | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 44 | 221 | ||
Derivatives in Cash Flow Hedging Relationships | Interest Rate | ' | ' | ||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | 3 | 7 | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 6 | 6 | ||
Derivatives in Cash Flow Hedging Relationships | Foreign currency hedges | ' | ' | ||
Notional Amount | 951 | 951 | ||
Fair Value Asset (Liability) | 187 | 168 | ||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | 14 | 14 | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 38 | 215 | ||
Derivatives in Net Investment Hedging Relationships | ' | ' | ||
Notional Amount | 831 | 1,303 | ||
Fair Value Asset (Liability) | 48 | 233 | ||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | 30 | 145 | ||
Amount of Gain (Loss) Recognized in Income | 0 | -2 | ||
Derivatives in Fair Value Hedging Relationships | ' | ' | ||
Amount of Gain (Loss) Recognized in Income | -1 | 4 | ||
Derivatives in Fair Value Hedging Relationships | Interest Rate | ' | ' | ||
Notional Amount | 9,738 | 9,117 | ||
Fair Value Asset (Liability) | 168 | 132 | ||
Amount of Gain (Loss) Recognized in Income | 36 | -167 | ||
Derivatives in Fair Value Hedging Relationships | Debt | ' | ' | ||
Amount of Gain (Loss) Recognized in Income | -37 | 171 | ||
Derivatives Not Designated as Hedging Instruments | Foreign currency hedges | ' | ' | ||
Notional Amount | 12,111 | 7,080 | ||
Fair Value Asset (Liability) | -42 | -71 | ||
Amount of Gain (Loss) Recognized in Income | $123 | [1] | ($34) | [1] |
[1] | The gain or loss on non-qualifying foreign currency contracts substantially offsets the foreign currency mark-to-market impact of the related exposure. |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME Satement of AOCI (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beg. Balance | ($7,499) | ($9,333) | ' | ||
OCI before reclassification | -354 | [1] | 1,780 | [2] | ' |
Amounts reclassified from AOCI | 191 | 54 | ' | ||
Other Comprehensive Income (Loss), Net of Tax | -163 | 1,834 | -7,279 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, End Balance | -7,662 | -7,499 | -9,333 | ||
Hedges | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beg. Balance | -3,529 | -3,673 | ' | ||
OCI before reclassification | -305 | [1] | 363 | [2] | ' |
Amounts reclassified from AOCI | -42 | -219 | ' | ||
Other Comprehensive Income (Loss), Net of Tax | -347 | 144 | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, End Balance | -3,876 | -3,529 | ' | ||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beg. Balance | -27 | -3 | ' | ||
OCI before reclassification | 20 | [1] | -24 | [2] | ' |
Amounts reclassified from AOCI | -11 | 0 | ' | ||
Other Comprehensive Income (Loss), Net of Tax | 9 | -24 | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, End Balance | -18 | -27 | ' | ||
Pension Benefits | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beg. Balance | -4,296 | -5,300 | ' | ||
OCI before reclassification | -1,113 | [1] | 731 | [2] | ' |
Amounts reclassified from AOCI | 244 | 273 | ' | ||
Other Comprehensive Income (Loss), Net of Tax | -869 | 1,004 | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, End Balance | -5,165 | -4,296 | ' | ||
Foreign Currency Gain (Loss) [Member] | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beg. Balance | 353 | -357 | ' | ||
OCI before reclassification | 1,044 | [1] | 710 | [2] | ' |
Amounts reclassified from AOCI | 0 | 0 | ' | ||
Other Comprehensive Income (Loss), Net of Tax | 1,044 | 710 | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, End Balance | $1,397 | $353 | ' | ||
[1] | Net of tax (benefit) / expense of $(207), $3, and $(450) for gains and losses on hedges, investment securities and pension and other retiree benefit items, respectively.Reclassifications out of Accumulated Other Comprehensive Income/(Loss)Years ended June 302014B 2013Hedges (1) Interest rate contracts$6B $6Foreign exchange contracts38B 215Total before-tax44B 221Tax (expense)/benefit(2)B (2)Net of tax42B 219 Gains / (losses) on Investment Securities (2)18B bTax (expense)/benefit(7)B bNet of tax11B b Pension and Other Retiree Benefits (3) Amortization of deferred amounts (6)B 2Recognized net actuarial gains/(losses)(332)B (412)Curtailments and settlementsbB (4)Total before-tax(338)B (414)Tax (expense)/benefit94B 141Net of tax(244)B (273)Total reclassifications, net of tax(191)B (54) | ||||
[2] | Net of tax (benefit) / expense of $94, $(5) and $496 for gains / losses on hedges, investment securities and pension and other retiree benefit items, respectively. |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME Reclassifications out of AOCI (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | ' | ' | ||
Tax (expense)/benefit | ($3,178) | ($3,391) | ($3,378) | ||
Net of tax | 11,390 | 11,068 | 10,500 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | ' | ' | ||
Net of tax | -191 | -54 | ' | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Hedges | ' | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | ' | ' | ||
Gains / (losses) | 44 | [1] | 221 | [1] | ' |
Tax (expense)/benefit | -2 | [1] | -2 | [1] | ' |
Net of tax | 42 | [1] | 219 | [1] | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Hedges | Interest Rate | ' | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | ' | ' | ||
Gains / (losses) | 6 | [1] | 6 | [1] | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Hedges | Foreign currency hedges | ' | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | ' | ' | ||
Gains / (losses) | 38 | [1] | 215 | [1] | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Investment Securities | ' | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | ' | ' | ||
Gains / (losses) | 18 | [2] | 0 | [2] | ' |
Tax (expense)/benefit | -7 | [2] | 0 | [2] | ' |
Net of tax | 11 | [2] | 0 | [2] | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension Benefits | ' | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | ' | ' | ||
Gains / (losses) | -338 | [3] | -414 | [3] | ' |
Tax (expense)/benefit | 94 | [3] | 141 | [3] | ' |
Net of tax | -244 | [3] | -273 | [3] | ' |
Amortization of deferred amounts | -6 | [3] | 2 | [3] | ' |
Recognized net actuarial gains/(losses) | -332 | [3] | -412 | [3] | ' |
Curtailments and settlements | $0 | [3] | ($4) | [3] | ' |
[1] | See Note 5 for classification of these items in the Consolidated Statements of Earnings. | ||||
[2] | Reclassified from AOCI into Other non-operating income, net. | ||||
[3] | Reclassified from AOCI into Cost of products sold and SG&A. These components are included in the computation of net periodic pension cost (see Note 9 for additional details). |
ACCUMULATED_OTHER_COMPREHENSIV4
ACCUMULATED OTHER COMPREHENSIVE INCOME Additional Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | $209 | $92 | $441 |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | 4 | 5 | 3 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax | 356 | 637 | 993 |
OCI before reclassification [Member] | Pension Benefits | ' | ' | ' |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | -207 | 94 | ' |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | 3 | -5 | ' |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax | ($450) | $496 | ' |
EARNINGS_PER_SHARE_DETAILS
EARNINGS PER SHARE (DETAILS) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |||||||||||
Earnings Per Share Reconciliation [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net Earnings from Continuing Operations | $2,611 | $2,603 | $3,454 | $3,039 | $1,893 | [1] | $2,562 | $4,034 | [2] | $2,812 | $11,707 | $11,301 | $9,150 | |||||||||
Net earnings from discontinued operations | 9 | 33 | 18 | 18 | -11 | 29 | 42 | 41 | 78 | 101 | 1,754 | |||||||||||
NET EARNINGS | ' | ' | ' | ' | ' | ' | ' | ' | 11,785 | 11,402 | 10,904 | |||||||||||
Less: Net earnings attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | -142 | -90 | -148 | |||||||||||
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE | 2,579 | 2,609 | 3,428 | 3,027 | 1,875 | [1] | 2,566 | 4,057 | [2] | 2,814 | 11,643 | 11,312 | 10,756 | |||||||||
Preferred dividends, net of tax benefits | ' | ' | ' | ' | ' | ' | ' | ' | -253 | -244 | -256 | |||||||||||
Net of tax | ' | ' | ' | ' | ' | ' | ' | ' | 11,390 | 11,068 | 10,500 | |||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO PROCTER & GAMBLE AVAILABLE TO COMMON SHAREHOLDERS (Basic) | ' | ' | ' | ' | ' | ' | ' | ' | 11,312 | 10,967 | 8,746 | |||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO PROCTER & GAMBLE (Diluted) | ' | ' | ' | ' | ' | ' | ' | ' | $11,565 | $11,211 | $9,002 | |||||||||||
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Basic weighted average common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 2,719.80 | 2,742.90 | 2,751.30 | |||||||||||
Effect of dilutive securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Conversion of preferred shares | ' | ' | ' | ' | ' | ' | ' | ' | 112.3 | [3] | 116.8 | [3] | 123.9 | [3] | ||||||||
Exercise of stock options and other unvested equity awards | ' | ' | ' | ' | ' | ' | ' | ' | 72.6 | [4] | 70.9 | [4] | 66 | [4] | ||||||||
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ' | ' | ' | ' | ' | ' | ' | ' | 2,904.70 | 2,930.60 | 2,941.20 | |||||||||||
Earnings from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | $4.16 | [5] | $4 | [5] | $3.18 | [5] | ||||||||
Earnings from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | $0.03 | [5] | $0.04 | [5] | $0.64 | [5] | ||||||||
BASIC NET EARNINGS PER COMMON SHARE | ' | ' | ' | ' | ' | ' | ' | ' | $4.19 | [5] | $4.04 | [5] | $3.82 | [5] | ||||||||
Earnings from continuing operations | $0.89 | [6] | $0.89 | [6] | $1.17 | [6] | $1.03 | [6] | $0.64 | [6] | $0.87 | [6] | $1.38 | [6] | $0.95 | [6] | $3.98 | [5],[6] | $3.83 | [5],[6] | $3.06 | [5] |
Earnings from discontinued operations | $0 | [6] | $0.01 | [6] | $0.01 | [6] | $0.01 | [6] | $0 | [6] | $0.01 | [6] | $0.01 | [6] | $0.01 | [6] | $0.03 | [5],[6] | $0.03 | [5],[6] | $0.60 | [5] |
DILUTED NET EARNINGS PER COMMON SHARE | $0.89 | [6] | $0.90 | [6] | $1.18 | [6] | $1.04 | [6] | $0.64 | [6] | $0.88 | [6] | $1.39 | [6] | $0.96 | [6] | $4.01 | [5],[6] | $3.86 | [5],[6] | $3.66 | [5] |
[1] | During the fourth quarter of fiscal year 2013, the Company recorded before-tax goodwill and indefinite-lived intangible assets impairment charges of $308 ($290 after-tax). For additional details, see Note 2. | |||||||||||||||||||||
[2] | The Company acquired the balance of its Baby Care and Feminine Care joint venture in Iberia in October 2012 resulting in a non-operating gain of $623. | |||||||||||||||||||||
[3] | Despite being included currently 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. | |||||||||||||||||||||
[4] | Approximately 9 million in 2014, 12 million in 2013 and 67 million in 2012 of the Company's outstanding stock options 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 total proceeds upon exercise would have exceeded the market value of the underlying common shares). | |||||||||||||||||||||
[5] | Basic net earnings per common share and diluted net earnings per common share are calculated on net earnings attributable to Procter & Gamble | |||||||||||||||||||||
[6] | Diluted net earnings per share is calculated on earnings attributable to Procter & Gamble. |
EARNINGS_PER_SHARE_ANTIDILUTIV
EARNINGS PER SHARE - ANTIDILUTIVE SECURITIES (DETAILS) (Stock Options [Member]) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Stock Options [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Outstanding stock options 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, approximately | 9 | 12 | 67 |
STOCKBASED_COMPENSATION_ADDITI
STOCK-BASED COMPENSATION - ADDITIONAL INFORMATION (DETAILS) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
years | |||
Key manager stock option awards granted since September 2002, life (years) | 10 | ' | ' |
Key manager stock option awards granted from July 1998 through August 2002, life (years) | 15 | ' | ' |
Stock-based compensation expense for stock option grants | $246 | $249 | $317 |
Total compensation cost for restricted stock, RSUs and other stock-based grants | 114 | 97 | 60 |
Recognized income tax benefit for these stock-based compensation arrangements | 127 | 96 | 102 |
Weighted average grant-date fair value of options granted | $10.01 | $8.19 | $8.05 |
Total intrinsic value of options exercised | 1,152 | 1,759 | 820 |
Total grant-date fair value of options that vested | 319 | 352 | 435 |
Cash received from options exercised | 1,938 | 3,294 | 1,735 |
Tax benefit realized for the tax deductions from option exercises | 338 | 575 | 239 |
Shares of common stock authorized for issuance | 180 | ' | ' |
Shares of common stock available for grant | 27 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | 95 | 51 | 38 |
Employee Stock Option [Member] | ' | ' | ' |
Compensation cost that has not yet been recognized related to stock awards | 223 | ' | ' |
Compensation cost that has not yet been recognized related to stock awards, expected to be recognized over a weighted average period, years | 1.9 | ' | ' |
Restricted Stock, RSUs and PSUs [Member] | ' | ' | ' |
Compensation cost that has not yet been recognized related to stock awards | $223 | ' | ' |
Compensation cost that has not yet been recognized related to stock awards, expected to be recognized over a weighted average period, years | 3 | ' | ' |
STOCKBASED_COMPENSATION_ASSUMP
STOCK-BASED COMPENSATION - ASSUMPTIONS UTIILIZED IN THE BINOMIAL LATTICE-BASED VALUATION MODEL (DETAILS) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Interest rate, minimum | 0.10% | 0.20% | 0.20% |
Interest rate, maximum | 2.80% | 2.00% | 2.10% |
Wieghted average interest rate | 2.50% | 1.80% | 1.90% |
Dividend yield | 3.10% | 2.90% | 2.60% |
Expected volatility, minimum | 15.00% | 14.00% | 12.00% |
Expected volatility, maximum | 17.00% | 15.00% | 18.00% |
Weighted average volatility | 16.00% | 15.00% | 15.00% |
Expected life in years | '8 years 2 months 12 days | '8 years 10 months 28 days | '8 years 6 months |
STOCKBASED_COMPENSATION_OPTION
STOCK-BASED COMPENSATION - OPTIONS OUTSTANDING (DETAILS) (USD $) | 12 Months Ended |
In Millions, except Share data in Thousands, unless otherwise specified | Jun. 30, 2014 |
Options | ' |
Outstanding, beginning of year | 306,239 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period | 25,680 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | -38,165 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | -2,128 |
OUTSTANDING, END OF YEAR | 291,626 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 212,502 |
Weighted Avg. Exercise Price | ' |
Outstanding, beginning of year | $57.07 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $78.71 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $50.79 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $65.09 |
OUTSTANDING, END OF YEAR | $59.74 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $54.67 |
Weighted Avg. Remaining Contractual Life in Years | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | '4 years 9 months 18 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | '3 years 4 months 24 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $5,626 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $5,172 |
STOCKBASED_COMPENSATION_Schedu
STOCK-BASED COMPENSATION Schedule of Non-Vested RSUs & PSUs (Details) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 |
Restricted Stock Units (RSUs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value (Beg. Balance) | $56.88 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number (Beg. Balance) | 4,590 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $65.74 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,955 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $51.85 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | -1,484 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $62.82 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | -159 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value (End Balance) | $61.74 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number (End Balance) | 4,902 |
Performance Stock Units (PSUs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value (Beg. Balance) | $61.75 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number (Beg. Balance) | 1,887 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $71.68 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 623 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $57.04 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | -609 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $64.22 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | -18 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value (End Balance) | $66.53 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number (End Balance) | 1,883 |
POSTRETIREMENT_BENEFITS_AND_EM2
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - ADDITIONAL INFORMATION (DETAILS) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 1989 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 1991 | Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2015 | ||||||||||
Equity Securities | Bonds | Treasury Stock | Pension Plan [Member] | Pension Plan [Member] | Pension Plan [Member] | Pension Plan [Member] | Pension Plan [Member] | Other Retiree Benefits | Other Retiree Benefits | Other Retiree Benefits | Other Retiree Benefits | Other Retiree Benefits | Forecast [Member] | Contribution_to_Unfunded_Plans [Member] | Contribution_to_Funded_Plans [Member] | |||||||||||||
Series A Preferred Stock | Series A Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | Forecast [Member] | Forecast [Member] | |||||||||||||||||||||||
Total global defined contribution expense | $311,000,000 | $314,000,000 | $353,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Contribution rate as an approximate percentage of total participants' annual wages and salaries | ' | ' | ' | ' | ' | ' | 15.00% | 15.00% | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Accumulated benefit obligation for defined benefit retirement pension plans | 14,949,000,000 | 12,652,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Expected long-term rates of return for plan assets, minimum | ' | ' | ' | 8.00% | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Expected long-term rates of return for plan assets, maximum | ' | ' | ' | 9.00% | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Expected long-term rates of return for plan assets | ' | ' | ' | ' | ' | 8.50% | 7.20% | [1] | 7.30% | [1] | 7.40% | [1] | ' | ' | 8.30% | [1] | 8.30% | [1] | 9.20% | [1] | ' | ' | ' | ' | ' | |||
Estimate of cash requirements for the defined benefit retirement plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 266,000,000 | ' | ' | |||||||||
Estimate of cash requirements for other retiree benefit plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39,000,000 | 25,000,000 | 14,000,000 | |||||||||
Defined benefit retirement plans, expected benefit payments from the Company directly to participants of unfunded plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 102,000,000 | ' | ' | |||||||||
Defined benefit retirement plans, expected contributions to funded plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 164,000,000 | ' | ' | |||||||||
ESOP borrowings to purchase ESOP Convertible Class A Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | |||||||||
ESOP debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | $98,000,000 | ' | ' | ' | ' | $602,000,000 | ' | ' | ' | ' | |||||||||
DIVIDENDS PER COMMON SHARE | $2.45 | [2] | $2.29 | [2] | $2.14 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Dividend per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.45 | ' | ' | ' | ' | $2.45 | ' | ' | ' | ' | |||||||||
Liquidation value per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.82 | ' | ' | ' | ' | $12.96 | ' | ' | ' | ' | |||||||||
[1] | Determined as of beginning of year and adjusted for acquisitions. | |||||||||||||||||||||||||||
[2] | Basic net earnings per common share and diluted net earnings per common share are calculated on net earnings attributable to Procter & Gamble |
POSTRETIREMENT_BENEFITS_AND_EM3
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - RECONCILIATION OF BENEFIT OBLIGATIONS AND PLAN ASSETS (DETAILS) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |||
Pension Benefits | ' | ' | ' | |||
CHANGE IN BENEFIT OBLIGATION | ' | ' | ' | |||
Benefit obligation at beginning of year | $14,514 | [1],[2] | $13,573 | [1],[2] | ' | |
Service cost | 298 | [2] | 300 | [2] | 267 | |
Interest cost | 590 | [2] | 560 | [2] | 611 | |
Participants' contributions | 20 | [2] | 20 | [2] | ' | |
Amendments | 4 | [2] | 104 | [2] | ' | |
Defined Benefit Plan, Actuarial Gain (Loss) | 1,365 | [2] | 473 | [2] | ' | |
Acquisitions (divestitures) | 0 | [2] | 51 | [2] | ' | |
Special termination benefits | 5 | [2] | 39 | [2] | ' | |
Currency translation and other | 797 | [2] | -4 | [2] | ' | |
Benefit payments | -540 | [2] | -602 | [2] | ' | |
BENEFIT OBLIGATION AT END OF YEAR | 17,053 | [1],[2] | 14,514 | [1],[2] | 13,573 | [1],[2] |
CHANGE IN PLAN ASSETS | ' | ' | ' | |||
Fair value of plan assets at beginning of year | 8,561 | [2] | 7,974 | [2] | ' | |
Actual return on plan assets | 964 | [2] | 796 | [2] | ' | |
Acquisitions (divestitures) | 0 | 59 | ' | |||
Employer contributions | 1,549 | [2] | 391 | [2] | ' | |
Participants' contributions | 20 | [2] | 20 | [2] | ' | |
Currency translation and other | 544 | [2] | -77 | [2] | ' | |
ESOP debt impacts | 0 | [2],[3] | 0 | [2],[3] | ' | |
Benefit payments | -540 | [2] | -602 | [2] | ' | |
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | 11,098 | [2] | 8,561 | [2] | 7,974 | [2] |
FUNDED STATUS | -5,955 | [2] | -5,953 | [2] | ' | |
Other Retiree Benefits | ' | ' | ' | |||
CHANGE IN BENEFIT OBLIGATION | ' | ' | ' | |||
Benefit obligation at beginning of year | 5,289 | [1],[4] | 6,006 | [1],[4] | ' | |
Service cost | 149 | [4] | 190 | [4] | 142 | |
Interest cost | 256 | [4] | 260 | [4] | 276 | |
Participants' contributions | 72 | [4] | 66 | [4] | ' | |
Amendments | -5 | [4] | 0 | [4] | ' | |
Defined Benefit Plan, Actuarial Gain (Loss) | -46 | [4] | -1,022 | [4] | ' | |
Acquisitions (divestitures) | 0 | [4] | 0 | [4] | ' | |
Special termination benefits | 9 | [4] | 18 | [4] | ' | |
Currency translation and other | 20 | [4] | 5 | [4] | ' | |
Benefit payments | -239 | [4] | -234 | [4] | ' | |
BENEFIT OBLIGATION AT END OF YEAR | 5,505 | [1],[4] | 5,289 | [1],[4] | 6,006 | [1],[4] |
CHANGE IN PLAN ASSETS | ' | ' | ' | |||
Fair value of plan assets at beginning of year | 3,553 | [4] | 2,713 | [4] | ' | |
Actual return on plan assets | 124 | [4] | 954 | [4] | ' | |
Acquisitions (divestitures) | 0 | 0 | ' | |||
Employer contributions | 31 | [4] | 23 | [4] | ' | |
Participants' contributions | 72 | [4] | 66 | [4] | ' | |
Currency translation and other | 0 | [4] | 0 | [4] | ' | |
ESOP debt impacts | 33 | [3],[4] | 31 | [3],[4] | ' | |
Benefit payments | -239 | [4] | -234 | [4] | ' | |
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | 3,574 | [4] | 3,553 | [4] | 2,713 | [4] |
FUNDED STATUS | ($1,931) | [4] | ($1,736) | [4] | ' | |
[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_EM4
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - RECONCILIATION OF BENEFIT PLANS RECOGNIZED IN THE BALANCE SHEET (DETAILS) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
Pension Benefits | ' | ' |
CLASSIFICATION OF NET AMOUNT RECOGNIZED | ' | ' |
Noncurrent assets | $69 | $114 |
Current liability | -40 | -40 |
Noncurrent liability | -5,984 | -6,027 |
NET AMOUNT RECOGNIZED | -5,955 | -5,953 |
AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) | ' | ' |
Net actuarial loss | 5,169 | 4,049 |
Prior service cost (credit) | 344 | 353 |
NET AMOUNTS RECOGNIZED IN AOCI | 5,513 | 4,402 |
Other Retiree Benefits | ' | ' |
CLASSIFICATION OF NET AMOUNT RECOGNIZED | ' | ' |
Noncurrent assets | 0 | 0 |
Current liability | -25 | -23 |
Noncurrent liability | -1,906 | -1,713 |
NET AMOUNT RECOGNIZED | -1,931 | -1,736 |
AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) | ' | ' |
Net actuarial loss | 1,871 | 1,772 |
Prior service cost (credit) | -39 | -54 |
NET AMOUNTS RECOGNIZED IN AOCI | $1,832 | $1,718 |
POSTRETIREMENT_BENEFITS_AND_EM5
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - PENSION PLANS WITH ACCUMULATED AND PROJECTED BENEFIT OBLIGATIONS IN EXCESS OF PLAN ASSETS (DETAILS) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets | ' | ' |
Projected benefit obligation | $14,229 | $12,024 |
Accumulated benefit obligation | 12,406 | 10,406 |
Fair value of plan assets | 8,353 | 6,086 |
Projected Benefit Obligation Exceeds the Fair Value of Plan Assets | ' | ' |
Projected benefit obligation | 15,325 | 12,962 |
Accumulated benefit obligation | 13,279 | 11,149 |
Fair value of plan assets | $9,301 | $6,895 |
POSTRETIREMENT_BENEFITS_AND_EM6
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - COMPONENTS OF NET PERIODIC BENEFIT COST (DETAILS) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | ||
Pension Benefits | ' | ' | ' | ||
Service cost | $298 | [1] | $300 | [1] | $267 |
Interest cost | 590 | [1] | 560 | [1] | 611 |
Expected return on plan assets | -701 | -587 | -573 | ||
Prior service cost /(credit) amortization | 26 | 18 | 21 | ||
Net actuarial loss amortization | 214 | 213 | 102 | ||
Special termination benefits | 5 | 39 | 0 | ||
Curtailments, settlements and other | 0 | 4 | 6 | ||
GROSS BENEFIT COST | 432 | 547 | 434 | ||
Dividends on ESOP preferred stock | 0 | 0 | 0 | ||
NET PERIODIC BENEFIT COST/(CREDIT) | 432 | 547 | 434 | ||
CHANGE IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) | ' | ' | ' | ||
Net actuarial loss - current year | 1,102 | 264 | ' | ||
Prior service cost - current year | 4 | 104 | ' | ||
Amortization of net actuarial loss | -214 | -213 | ' | ||
Amortization of prior service (cost) / credit | -26 | -18 | ' | ||
Settlement / curtailment cost | 0 | -4 | ' | ||
Currency translation and other | 245 | -2 | ' | ||
TOTAL CHANGE IN AOCI | 1,111 | 131 | ' | ||
NET AMOUNTS RECOGNIZED IN PERIODIC BENEFIT COST AND AOCI | 1,543 | 678 | ' | ||
Other Retiree Benefits | ' | ' | ' | ||
Service cost | 149 | [2] | 190 | [2] | 142 |
Interest cost | 256 | [2] | 260 | [2] | 276 |
Expected return on plan assets | -385 | -382 | -434 | ||
Prior service cost /(credit) amortization | -20 | -20 | -20 | ||
Net actuarial loss amortization | 118 | 199 | 99 | ||
Special termination benefits | 9 | 18 | 27 | ||
Curtailments, settlements and other | 0 | 0 | 0 | ||
GROSS BENEFIT COST | 127 | 265 | 90 | ||
Dividends on ESOP preferred stock | -64 | -70 | -74 | ||
NET PERIODIC BENEFIT COST/(CREDIT) | 63 | 195 | 16 | ||
CHANGE IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) | ' | ' | ' | ||
Net actuarial loss - current year | 215 | -1,594 | ' | ||
Prior service cost - current year | -5 | 0 | ' | ||
Amortization of net actuarial loss | -118 | -199 | ' | ||
Amortization of prior service (cost) / credit | 20 | 20 | ' | ||
Settlement / curtailment cost | 0 | 0 | ' | ||
Currency translation and other | 2 | 1 | ' | ||
TOTAL CHANGE IN AOCI | 114 | -1,772 | ' | ||
NET AMOUNTS RECOGNIZED IN PERIODIC BENEFIT COST AND AOCI | $177 | ($1,577) | ' | ||
[1] | Primarily non-U.S.-based defined benefit retirement plans. | ||||
[2] | Primarily U.S.-based other postretirement benefit plans. |
POSTRETIREMENT_BENEFITS_AND_EM7
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - AMOUNTS EXPECTED TO BE AMORTIZED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET PERIODIC BENEFIT COST (DETAILS) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Pension Benefits | ' |
Net actuarial loss | $299 |
Prior service cost (credit) | 31 |
Other Retiree Benefits | ' |
Net actuarial loss | 106 |
Prior service cost (credit) | ($20) |
POSTRETIREMENT_BENEFITS_AND_EM8
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, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | ||||
Pension Benefits | ' | ' | ' | |||
ASSUMPTIONS USED TO DETERMINE BENEFIT OBLIGATIONS | ' | ' | ' | |||
Discount rate | 3.50% | [1] | 4.00% | [1] | ' | |
Rate of compensation increase | 3.20% | [1] | 3.20% | [1] | ' | |
ASSUMED HEALTH CARE COST TREND RATES | ' | ' | ' | |||
Health care cost trend rates assumed for next year | 0.00% | [1] | 0.00% | [1] | ' | |
Rate to which the health care cost trend rate is assumed to decline (ultimate trend rate) | 0.00% | [1] | 0.00% | [1] | ' | |
ASSUMPTIONS USED TO DETERMINE NET PERIODIC BENEFIT COST | ' | ' | ' | |||
Discount rate | 4.00% | [2] | 4.20% | [2] | 5.30% | [2] |
Expected long-term rates of return for plan assets | 7.20% | [2] | 7.30% | [2] | 7.40% | [2] |
Rate of compensation increase | 3.20% | [2] | 3.30% | [2] | 3.50% | [2] |
Other Retiree Benefits | ' | ' | ' | |||
ASSUMPTIONS USED TO DETERMINE BENEFIT OBLIGATIONS | ' | ' | ' | |||
Discount rate | 4.40% | [1] | 4.80% | [1] | ' | |
Rate of compensation increase | 0.00% | [1] | 0.00% | [1] | ' | |
ASSUMED HEALTH CARE COST TREND RATES | ' | ' | ' | |||
Health care cost trend rates assumed for next year | 6.80% | [1] | 7.30% | [1] | ' | |
Rate to which the health care cost trend rate is assumed to decline (ultimate trend rate) | 5.00% | [1] | 5.00% | [1] | ' | |
Year that the rate reaches the ultimate trend rate | '2021 | [1] | '2020 | [1] | ' | |
ASSUMPTIONS USED TO DETERMINE NET PERIODIC BENEFIT COST | ' | ' | ' | |||
Discount rate | 4.80% | [2] | 4.30% | [2] | 5.70% | [2] |
Expected long-term rates of return for plan assets | 8.30% | [2] | 8.30% | [2] | 9.20% | [2] |
Rate of compensation increase | 0.00% | [2] | 0.00% | [2] | 0.00% | [2] |
Equity Securities [Member] | ' | ' | ' | |||
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Expected Long Term Return On Assets Range Maximum | 9.00% | ' | ' | |||
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Expected Long Term Return On Assets Range Minimum | 8.00% | ' | ' | |||
Bonds | ' | ' | ' | |||
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Expected Long Term Return On Assets Range Maximum | 6.00% | ' | ' | |||
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Expected Long Term Return On Assets Range Minimum | 5.00% | ' | ' | |||
[1] | (1)B Determined as of end of year. | |||||
[2] | Determined as of beginning of year and adjusted for acquisitions. |
POSTRETIREMENT_BENEFITS_AND_EM9
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - ONE-PERCENTAGE POINT CHANGE IN ASSUMED HEALTH CARE COST TREND RATES (DETAILS) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
One-Percentage Point Increase (Decrease) | ' |
Effect on total of service and interest cost components | $80 |
Effect on total of service and interest cost components | -61 |
Effect on postretirement benefit obligation | 879 |
Effect on postretirement benefit obligation | ($696) |
Recovered_Sheet1
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - TARGET AND ACTUAL ASSET ALLOCATION (DETAILS) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Pension Benefits | ' | ' |
Asset Allocation | ' | ' |
Target Asset Allocations | 100.00% | ' |
Actual Asset Allocations | 100.00% | 100.00% |
Other Retiree Benefits | ' | ' |
Asset Allocation | ' | ' |
Target Asset Allocations | 100.00% | ' |
Actual Asset Allocations | 100.00% | 100.00% |
Cash and Cash Equivalents | Pension Benefits | ' | ' |
Asset Allocation | ' | ' |
Target Asset Allocations | 1.00% | ' |
Actual Asset Allocations | 1.00% | 1.00% |
Cash and Cash Equivalents | Other Retiree Benefits | ' | ' |
Asset Allocation | ' | ' |
Target Asset Allocations | 2.00% | ' |
Actual Asset Allocations | 1.00% | 2.00% |
Debt Securities | Pension Benefits | ' | ' |
Asset Allocation | ' | ' |
Target Asset Allocations | 52.00% | ' |
Actual Asset Allocations | 51.00% | 52.00% |
Debt Securities | Other Retiree Benefits | ' | ' |
Asset Allocation | ' | ' |
Target Asset Allocations | 8.00% | ' |
Actual Asset Allocations | 6.00% | 6.00% |
Equity Securities | Pension Benefits | ' | ' |
Asset Allocation | ' | ' |
Target Asset Allocations | 47.00% | ' |
Actual Asset Allocations | 48.00% | 47.00% |
Equity Securities | Other Retiree Benefits | ' | ' |
Asset Allocation | ' | ' |
Target Asset Allocations | 90.00% | ' |
Actual Asset Allocations | 93.00% | 92.00% |
Recovered_Sheet2
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - FAIR VALUE OF PLAN ASETS (DETAILS) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |||
In Millions, unless otherwise specified | ||||||
Pension Benefits | ' | ' | ' | |||
Fair value of plan assets | $11,098 | [1] | $8,561 | [1] | $7,974 | [1] |
Pension Benefits | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | |||
Fair value of plan assets | 84 | 75 | ' | |||
Pension Benefits | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | |||
Fair value of plan assets | 10,875 | 8,354 | ' | |||
Pension Benefits | Fair Value, Inputs, Level 3 | ' | ' | ' | |||
Fair value of plan assets | 139 | 132 | ' | |||
Pension Benefits | Cash and Cash Equivalents | ' | ' | ' | |||
Fair value of plan assets | 79 | 71 | ' | |||
Pension Benefits | Cash and Cash Equivalents | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | |||
Fair value of plan assets | 79 | 71 | ' | |||
Pension Benefits | Cash and Cash Equivalents | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | |||
Fair value of plan assets | 0 | 0 | ' | |||
Pension Benefits | Cash and Cash Equivalents | Fair Value, Inputs, Level 3 | ' | ' | ' | |||
Fair value of plan assets | 0 | 0 | ' | |||
Pension Benefits | Common Collective Trust Fund - Equity | ' | ' | ' | |||
Fair value of plan assets | 5,336 | 3,993 | ' | |||
Pension Benefits | Common Collective Trust Fund - Equity | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | |||
Fair value of plan assets | 0 | 0 | ' | |||
Pension Benefits | Common Collective Trust Fund - Equity | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | |||
Fair value of plan assets | 5,336 | 3,993 | ' | |||
Pension Benefits | Common Collective Trust Fund - Equity | Fair Value, Inputs, Level 3 | ' | ' | ' | |||
Fair value of plan assets | 0 | 0 | ' | |||
Pension Benefits | Common Collective Trust Fund - Fixed Income | ' | ' | ' | |||
Fair value of plan assets | 5,539 | 4,361 | ' | |||
Pension Benefits | Common Collective Trust Fund - Fixed Income | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | |||
Fair value of plan assets | 0 | 0 | ' | |||
Pension Benefits | Common Collective Trust Fund - Fixed Income | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | |||
Fair value of plan assets | 5,539 | 4,361 | ' | |||
Pension Benefits | Common Collective Trust Fund - Fixed Income | Fair Value, Inputs, Level 3 | ' | ' | ' | |||
Fair value of plan assets | 0 | 0 | ' | |||
Pension Benefits | Other Assets | ' | ' | ' | |||
Fair value of plan assets | 144 | 136 | ' | |||
Pension Benefits | Other Assets | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | |||
Fair value of plan assets | 5 | 4 | ' | |||
Pension Benefits | Other Assets | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | |||
Fair value of plan assets | 0 | 0 | ' | |||
Pension Benefits | Other Assets | Fair Value, Inputs, Level 3 | ' | ' | ' | |||
Fair value of plan assets | 139 | 132 | ' | |||
Other Retiree Benefits | ' | ' | ' | |||
Fair value of plan assets | 3,574 | [2] | 3,553 | [2] | 2,713 | [2] |
Other Retiree Benefits | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | |||
Fair value of plan assets | 30 | 56 | ' | |||
Other Retiree Benefits | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | |||
Fair value of plan assets | 3,539 | 3,486 | ' | |||
Other Retiree Benefits | Fair Value, Inputs, Level 3 | ' | ' | ' | |||
Fair value of plan assets | 5 | 11 | ' | |||
Other Retiree Benefits | Cash and Cash Equivalents | ' | ' | ' | |||
Fair value of plan assets | 30 | 56 | ' | |||
Other Retiree Benefits | Cash and Cash Equivalents | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | |||
Fair value of plan assets | 30 | 56 | ' | |||
Other Retiree Benefits | Cash and Cash Equivalents | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | |||
Fair value of plan assets | 0 | 0 | ' | |||
Other Retiree Benefits | Cash and Cash Equivalents | Fair Value, Inputs, Level 3 | ' | ' | ' | |||
Fair value of plan assets | 0 | 0 | ' | |||
Other Retiree Benefits | Company Stock | ' | ' | ' | |||
Fair value of plan assets | 3,304 | 3,270 | ' | |||
Other Retiree Benefits | Company Stock | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | |||
Fair value of plan assets | 0 | 0 | ' | |||
Other Retiree Benefits | Company Stock | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | |||
Fair value of plan assets | 3,304 | 3,270 | ' | |||
Other Retiree Benefits | Company Stock | Fair Value, Inputs, Level 3 | ' | ' | ' | |||
Fair value of plan assets | 0 | 0 | ' | |||
Other Retiree Benefits | Common Collective Trust Fund - Equity | ' | ' | ' | |||
Fair value of plan assets | 18 | 16 | ' | |||
Other Retiree Benefits | Common Collective Trust Fund - Equity | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | |||
Fair value of plan assets | 0 | 0 | ' | |||
Other Retiree Benefits | Common Collective Trust Fund - Equity | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | |||
Fair value of plan assets | 18 | 16 | ' | |||
Other Retiree Benefits | Common Collective Trust Fund - Equity | Fair Value, Inputs, Level 3 | ' | ' | ' | |||
Fair value of plan assets | 0 | 0 | ' | |||
Other Retiree Benefits | Common Collective Trust Fund - Fixed Income | ' | ' | ' | |||
Fair value of plan assets | 217 | 200 | ' | |||
Other Retiree Benefits | Common Collective Trust Fund - Fixed Income | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | |||
Fair value of plan assets | 0 | 0 | ' | |||
Other Retiree Benefits | Common Collective Trust Fund - Fixed Income | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | |||
Fair value of plan assets | 217 | 200 | ' | |||
Other Retiree Benefits | Common Collective Trust Fund - Fixed Income | Fair Value, Inputs, Level 3 | ' | ' | ' | |||
Fair value of plan assets | 0 | 0 | ' | |||
Other Retiree Benefits | Other Assets | ' | ' | ' | |||
Fair value of plan assets | 5 | 11 | ' | |||
Other Retiree Benefits | Other Assets | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | |||
Fair value of plan assets | 0 | 0 | ' | |||
Other Retiree Benefits | Other Assets | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | |||
Fair value of plan assets | 0 | 0 | ' | |||
Other Retiree Benefits | Other Assets | Fair Value, Inputs, Level 3 | ' | ' | ' | |||
Fair value of plan assets | $5 | $11 | ' | |||
[1] | Primarily non-U.S.-based defined benefit retirement plans. | |||||
[2] | Primarily U.S.-based other postretirement benefit plans. |
Recovered_Sheet3
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - TOTAL BENEFIT PAYMENTS EXPECTED TO BE PAID (DETAILS) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Pension Benefits | ' |
EXPECTED BENEFIT PAYMENTS | ' |
2015 | $584 |
2016 | 578 |
2017 | 604 |
2018 | 614 |
2019 | 624 |
2020 - 2024 | 3,615 |
Other Retiree Benefits | ' |
EXPECTED BENEFIT PAYMENTS | ' |
2015 | 203 |
2016 | 218 |
2017 | 233 |
2018 | 248 |
2019 | 264 |
2020 - 2024 | $1,528 |
Recovered_Sheet4
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - ESOP SHARES OUTSTANDING (DETAILS) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 1989 | Jun. 30, 2014 | Jun. 30, 1991 |
In Billions, except Share data in Thousands, unless otherwise specified | Series A Preferred Stock | Series A Preferred Stock | Series A Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | Pension Plan [Member] | Pension Plan [Member] | Other Postretirement Benefit Plan [Member] | Other Postretirement Benefit Plan [Member] |
Series A Preferred Stock | Series A Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | |||||||
Preferred Stock, Dividends, Per Share, Cash Paid | ' | ' | ' | ' | ' | ' | $2.45 | ' | $2.45 | ' |
Employee Stock Ownership Plan (ESOP), Debt Structure, Direct Loan, Amount | ' | ' | ' | ' | ' | ' | ' | $1 | ' | $1 |
Allocated | 44,465 | 45,535 | 50,668 | 22,085 | 21,278 | 20,802 | ' | ' | ' | ' |
Unallocated | 8,474 | 9,843 | 11,348 | 35,753 | 37,300 | 38,743 | ' | ' | ' | ' |
TOTAL | 52,939 | 55,378 | 62,016 | 57,838 | 58,578 | 59,545 | ' | ' | ' | ' |
INCOME_TAXES_DETAILS
INCOME TAXES (DETAILS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Notes to Financial Statements [Abstract] | ' | ' | ' |
United States | $9,005 | $8,260 | $7,398 |
International | 5,880 | 6,432 | 5,130 |
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | $14,885 | $14,692 | $12,528 |
INCOME_TAXES_PROVISION_FOR_INC
INCOME TAXES - PROVISION FOR INCOME TAXES ON CONTINUING OPERATIONS (DETAILS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
CURRENT TAX EXPENSE | ' | ' | ' |
U.S. federal | $1,606 | $1,845 | $1,837 |
International | 1,379 | 1,567 | 1,357 |
U.S. state and local | 237 | 279 | 246 |
Current Income Tax Expense (Benefit), Total | 3,222 | 3,691 | 3,440 |
DEFERRED TAX EXPENSE | ' | ' | ' |
U.S. federal | 135 | 185 | 86 |
International and other | -179 | -485 | -148 |
Total Deferred Income Tax Expense (Benefit), Total | -44 | -300 | -62 |
TOTAL TAX EXPENSE | $3,178 | $3,391 | $3,378 |
INCOME_TAXES_INCOME_TAX_RATE_R
INCOME TAXES - INCOME TAX RATE RECONCILIATION (DETAILS) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Notes to Financial Statements [Abstract] | ' | ' | ' |
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Country mix impacts of foreign operations | -10.90% | -7.70% | -8.20% |
Changes in uncertain tax positions | -1.50% | -1.80% | -1.30% |
Effective Income Tax Rate, Impairment Adjustment | 0.00% | 0.60% | 3.80% |
Effective Income Tax Rate, Gain on Joint Venture Buy Out | 0.00% | -1.40% | 0.00% |
Other | -1.20% | -1.60% | -2.30% |
EFFECTIVE INCOME TAX RATE | 21.40% | 23.10% | 27.00% |
INCOME_TAXES_UNRECOGNIZED_TAX_
INCOME TAXES - UNRECOGNIZED TAX BENEFITS RECONCILIATION (DETAILS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Unrecognized Tax Benefit Reconciliation [Roll Forward] | ' | ' | ' |
BEGINNING OF YEAR | $1,600 | $1,773 | $1,848 |
Increases in tax positions for prior years | 146 | 162 | 166 |
Decreases in tax positions for prior years | -296 | -225 | -188 |
Increases in tax positions for current year | 142 | 188 | 178 |
Settlements with taxing authorities | -135 | -195 | -49 |
Lapse in statute of limitations | -33 | -98 | -81 |
Currency translation | 13 | -5 | -101 |
END OF YEAR | $1,437 | $1,600 | $1,773 |
INCOME_TAXES_DEFERRED_INCOME_T
INCOME TAXES - DEFERRED INCOME TAX ASSETS AND LIABILITIES (DETAILS) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
DEFERRED TAX ASSETS | ' | ' |
Pension and postretirement benefits | $2,045 | $1,777 |
Stock-based compensation | 1,060 | 1,125 |
Loss and other carryforwards | 1,211 | 1,062 |
Goodwill and other intangible assets | 49 | 60 |
Accrued marketing and promotion | 258 | 285 |
Fixed assets | 115 | 135 |
Unrealized loss on financial and foreign exchange transactions | 352 | 324 |
Accrued interest and taxes | 66 | 15 |
Inventory | 35 | 46 |
Other | 809 | 879 |
Valuation allowances | -384 | -341 |
TOTAL | 5,616 | 5,367 |
DEFERRED TAX LIABILITIES | ' | ' |
Goodwill and other intangible assets | 11,428 | 11,941 |
Fixed assets | 1,665 | 1,718 |
Other | 144 | 315 |
TOTAL | $13,237 | $13,974 |
INCOME_TAXES_ADDITIONAL_INFORM
INCOME TAXES - ADDITIONAL INFORMATION (DETAILS) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
countries | |||
Number of Income Tax Jurisdiction | 140 | ' | ' |
Income Tax Effects Allocated Directly to Equity | $716,000,000 | ($503,000,000) | ' |
Unrecognized tax benefits, accrued interest | 411,000,000 | 413,000,000 | 439,000,000 |
Unrecognized tax benefits, accrued penalties | 32,000,000 | 34,000,000 | 66,000,000 |
Unrecognized tax benefits, recognized interest | -6,000,000 | 24,000,000 | 2,000,000 |
Unrecognized tax benefits, recognized penalties | 2,000,000 | 32,000,000 | 10,000,000 |
Undistributed earnings of foreign subsidiaries | 44,000,000,000 | ' | ' |
Liability for unrecognized tax benefit that, if recognized, would impact the effective tax rate | 1,100,000,000 | ' | ' |
Net operating loss carryforwards | 3,600,000,000 | 3,100,000,000 | ' |
Minimum [Member] | ' | ' | ' |
Number of Jurisdictional Audits | 50 | ' | ' |
Maximum [Member] | ' | ' | ' |
Number of Jurisdictional Audits | 60 | ' | ' |
Net Operating Loss, Expiring Within 20 Years | ' | ' | ' |
Net operating loss carryforwards | 1,500,000,000 | ' | ' |
Net Operating Loss, Indefinite Life | ' | ' | ' |
Net operating loss carryforwards | $2,100,000,000 | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES - PURCHASE OBLIGATIONS (DETAILS) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Notes to Financial Statements [Abstract] | ' |
Purchase commitments, 2015 | $1,068 |
Purchase commitments, 2016 | 268 |
Purchase commitments, 2017 | 164 |
Purchase commitments, 2018 | 92 |
Purchase commitments, 2019 | 72 |
Purchase commitments, thereafter | $321 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - OPERATING LEASE PAYMENTS (DETAILS) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Notes to Financial Statements [Abstract] | ' |
Minimum rental commitments, 2015 | $288 |
Minimum rental commitments, 2016 | 273 |
Minimum rental commitments, 2017 | 236 |
Minimum rental commitments, 2018 | 216 |
Minimum rental commitments, 2019 | 188 |
Minimum rental commitments, thereafter | $743 |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - ADDITIONAL INFORMATION (DETAILS) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Service Agreements | ' |
Purchase commitments that relate to service contracts that have been outsourced to third-party suppliers | 19.00% |
Estimated Obligation [Member] | ' |
Reserves for potential fines for competition law violations | 225 |
SEGMENT_INFORMATION_ADDITIONAL
SEGMENT INFORMATION - ADDITIONAL INFORMATION (DETAILS) (USD $) | 12 Months Ended | ||
In Billions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
segment | |||
Number of reportable segments | 5 | ' | ' |
Net sales in the U.S. | $29.40 | $29.20 | $28.40 |
Assets in the U.S. | $8.70 | $9.10 | ' |
Wal-Mart Stores Inc And Affiliates | ' | ' | ' |
Our largest customer, percentage of consolidated net sales | 14.00% | 14.00% | 14.00% |
SEGMENT_INFORMATION_GLOBAL_SEG
SEGMENT INFORMATION - GLOBAL SEGMENT RESULTS (DETAILS) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | ||||||
Percentage of total revenues by Category | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | 100.00% | ||||||
NET SALES | $20,157 | $20,178 | $21,897 | $20,830 | $20,297 | $20,205 | $21,737 | $20,342 | $83,062 | $82,581 | $82,006 | ||||||
Earnings from Continuing Operations Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 14,885 | 14,692 | 12,528 | ||||||
NET EARNINGS FROM CONTINUING OPERATIONS | 2,611 | 2,603 | 3,454 | 3,039 | 1,893 | [1] | 2,562 | 4,034 | [2] | 2,812 | 11,707 | 11,301 | 9,150 | ||||
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 3,141 | 2,982 | 3,204 | ||||||
Total Assets | 144,266 | ' | ' | ' | 139,263 | ' | ' | ' | 144,266 | 139,263 | 132,244 | ||||||
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 3,848 | 4,008 | 3,964 | ||||||
Beauty Segment Member | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
NET SALES | ' | ' | ' | ' | ' | ' | ' | ' | 19,507 | 19,956 | 20,318 | ||||||
Earnings from Continuing Operations Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 3,530 | 3,215 | 3,196 | ||||||
NET EARNINGS FROM CONTINUING OPERATIONS | ' | ' | ' | ' | ' | ' | ' | ' | 2,739 | 2,474 | 2,390 | ||||||
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 394 | 375 | 379 | ||||||
Total Assets | 8,576 | ' | ' | ' | 8,396 | ' | ' | ' | 8,576 | 8,396 | 8,357 | ||||||
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 502 | 541 | 569 | ||||||
Grooming Segment Member | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
NET SALES | ' | ' | ' | ' | ' | ' | ' | ' | 8,009 | 8,038 | 8,339 | ||||||
Earnings from Continuing Operations Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 2,589 | 2,458 | 2,395 | ||||||
NET EARNINGS FROM CONTINUING OPERATIONS | ' | ' | ' | ' | ' | ' | ' | ' | 1,954 | 1,837 | 1,807 | ||||||
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 576 | 603 | 623 | ||||||
Total Assets | 23,767 | ' | ' | ' | 23,971 | ' | ' | ' | 23,767 | 23,971 | 24,518 | ||||||
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 369 | 378 | 392 | ||||||
Health Care Segment Member | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
NET SALES | ' | ' | ' | ' | ' | ' | ' | ' | 7,798 | 7,684 | 7,235 | ||||||
Earnings from Continuing Operations Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 1,597 | 1,582 | 1,520 | ||||||
NET EARNINGS FROM CONTINUING OPERATIONS | ' | ' | ' | ' | ' | ' | ' | ' | 1,083 | 1,093 | 1,022 | ||||||
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 199 | 191 | 186 | ||||||
Total Assets | 5,879 | ' | ' | ' | 5,933 | ' | ' | ' | 5,879 | 5,933 | 5,832 | ||||||
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 253 | 248 | 251 | ||||||
FABRIC CARE AND HOME CARE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
NET SALES | ' | ' | ' | ' | ' | ' | ' | ' | 26,060 | 25,862 | 25,580 | ||||||
Earnings from Continuing Operations Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 4,678 | 4,757 | 4,485 | ||||||
NET EARNINGS FROM CONTINUING OPERATIONS | ' | ' | ' | ' | ' | ' | ' | ' | 3,039 | 3,089 | 2,816 | ||||||
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 625 | 639 | 627 | ||||||
Total Assets | 11,384 | ' | ' | ' | 11,231 | ' | ' | ' | 11,384 | 11,231 | 10,647 | ||||||
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 1,154 | 1,064 | 965 | ||||||
Baby, Feminine and Family Care Segment Member | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
NET SALES | ' | ' | ' | ' | ' | ' | ' | ' | 20,950 | 20,479 | 19,714 | ||||||
Earnings from Continuing Operations Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 4,310 | 4,507 | 4,271 | ||||||
NET EARNINGS FROM CONTINUING OPERATIONS | ' | ' | ' | ' | ' | ' | ' | ' | 2,940 | 3,047 | 2,927 | ||||||
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 908 | 837 | 753 | ||||||
Total Assets | 10,946 | ' | ' | ' | 10,926 | ' | ' | ' | 10,946 | 10,926 | 9,203 | ||||||
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 1,317 | 1,560 | 1,495 | ||||||
Corporate [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
NET SALES | ' | ' | ' | ' | ' | ' | ' | ' | 738 | [3] | 562 | [3] | 820 | [3] | |||
Earnings from Continuing Operations Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | -1,819 | [3] | -1,827 | [3] | -3,339 | [3] | |||
NET EARNINGS FROM CONTINUING OPERATIONS | ' | ' | ' | ' | ' | ' | ' | ' | -48 | [3] | -239 | [3] | -1,812 | [3] | |||
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 439 | [3] | 337 | [3] | 636 | [3] | |||
Total Assets | 83,714 | [3] | ' | ' | ' | 78,806 | [3] | ' | ' | ' | 83,714 | [3] | 78,806 | [3] | 73,687 | [3] | |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | $253 | [3] | $217 | [3] | $292 | [3] | |||
Fabric Care [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Percentage of total revenues by Category | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | 20.00% | 20.00% | ||||||
Baby Care [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Percentage of total revenues by Category | ' | ' | ' | ' | ' | ' | ' | ' | 13.00% | 13.00% | 13.00% | ||||||
Hair Care [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Percentage of total revenues by Category | ' | ' | ' | ' | ' | ' | ' | ' | 11.00% | 11.00% | 12.00% | ||||||
Shave Care | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Percentage of total revenues by Category | ' | ' | ' | ' | ' | ' | ' | ' | 9.00% | 9.00% | 9.00% | ||||||
Beauty Care | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Percentage of total revenues by Category | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | 7.00% | 7.00% | ||||||
Home Care [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Percentage of total revenues by Category | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | 7.00% | 7.00% | ||||||
Family Care [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Percentage of total revenues by Category | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | 7.00% | 6.00% | ||||||
Oral Care [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Percentage of total revenues by Category | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | 6.00% | 6.00% | ||||||
Feminine Care [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Percentage of total revenues by Category | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 5.00% | 5.00% | ||||||
All Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Percentage of total revenues by Category | ' | ' | ' | ' | ' | ' | ' | ' | 14.00% | 15.00% | 15.00% | ||||||
[1] | During the fourth quarter of fiscal year 2013, the Company recorded before-tax goodwill and indefinite-lived intangible assets impairment charges of $308 ($290 after-tax). For additional details, see Note 2. | ||||||||||||||||
[2] | The Company acquired the balance of its Baby Care and Feminine Care joint venture in Iberia in October 2012 resulting in a non-operating gain of $623. | ||||||||||||||||
[3] | The Corporate reportable segment includes depreciation and amortization, total assets and capital expenditures of the Snacks business prior to its divestiture effective May 31, 2012 and of the Pet Care business. |
DISCONTINUED_OPERATIONS_ADDITI
DISCONTINUED OPERATIONS - ADDITIONAL INFORMATION (DETAILS) (USD $) | 12 Months Ended | ||
In Billions, unless otherwise specified | Jun. 30, 2012 | Jul. 31, 2014 | Jun. 30, 2012 |
Pet Care Business | Snacks Business | ||
Mars | Kellogg | ||
Subsequent Event | |||
Consideration received | ' | $2.90 | $2.70 |
After-tax gain on the transaction, which is included in net earnings from discontinued operations | $1.40 | ' | ' |
DISCONTINUED_OPERATIONS_NET_EA
DISCONTINUED OPERATIONS - NET EARNINGS FROM DISCONTINUED OPERATIONS (DETAILS) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | $1,475 | $1,586 | $3,114 |
Earnings from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | 130 | 151 | 523 |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | -52 | -50 | -186 |
Gain on sale of discontinued operation | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 1,899 |
Income tax benefit (expense) on sale | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -482 |
Net earnings from discontinued operations | 9 | 33 | 18 | 18 | -11 | 29 | 42 | 41 | 78 | 101 | 1,754 |
Pet Care Business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,475 | 1,586 | 1,674 |
Earnings from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | 130 | 151 | 257 |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | -52 | -50 | -90 |
Gain on sale of discontinued operation | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Income tax benefit (expense) on sale | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Net earnings from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | 78 | 101 | 167 |
Snacks Business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 1,440 |
Earnings from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 266 |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -96 |
Gain on sale of discontinued operation | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 1,899 |
Income tax benefit (expense) on sale | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -482 |
Net earnings from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $1,587 |
DISCONTINUED_OPERATIONS_MAJOR_
DISCONTINUED OPERATIONS - MAJOR COMPONENTS OF ASSETS AND LIABILITIES (Details) (Pet Care Business, USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Pet Care Business | ' |
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ' |
Inventories | $122 |
Prepaid expenses and other current assets | 14 |
Property, plant and equipment, net | 441 |
Goodwill and intangible assets, net | 2,258 |
Other noncurrent assets | 14 |
Total assets held for sale | 2,849 |
Accounts payable | 63 |
Accrued and other liabilities | 13 |
Noncurrent deferred tax liabilities | 584 |
Total liabilities held for sale | $660 |
QUARTERLY_RESULTS_UNAUDITED_DE
QUARTERLY RESULTS (UNAUDITED) (DETAILS) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |||||||||||
NET SALES | $20,157 | $20,178 | $21,897 | $20,830 | $20,297 | $20,205 | $21,737 | $20,342 | $83,062 | $82,581 | $82,006 | |||||||||||
OPERATING INCOME | 3,240 | 3,405 | 4,523 | 4,120 | 2,651 | [1] | 3,361 | 4,429 | 3,889 | 15,288 | 14,330 | 13,035 | ||||||||||
GROSS MARGIN | 47.20% | 48.60% | 50.30% | 49.20% | 47.90% | 50.00% | 51.20% | 50.30% | 48.90% | 49.90% | ' | |||||||||||
NET EARNINGS: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | 2,611 | 2,603 | 3,454 | 3,039 | 1,893 | [1] | 2,562 | 4,034 | [2] | 2,812 | 11,707 | 11,301 | 9,150 | |||||||||
Net earnings from discontinued operations | 9 | 33 | 18 | 18 | -11 | 29 | 42 | 41 | 78 | 101 | 1,754 | |||||||||||
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE | $2,579 | $2,609 | $3,428 | $3,027 | $1,875 | [1] | $2,566 | $4,057 | [2] | $2,814 | $11,643 | $11,312 | $10,756 | |||||||||
DILUTED NET EARNINGS PER COMMON SHARE: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Earnings from continuing operations | $0.89 | [3] | $0.89 | [3] | $1.17 | [3] | $1.03 | [3] | $0.64 | [3] | $0.87 | [3] | $1.38 | [3] | $0.95 | [3] | $3.98 | [3],[4] | $3.83 | [3],[4] | $3.06 | [4] |
Earnings from discontinued operations | $0 | [3] | $0.01 | [3] | $0.01 | [3] | $0.01 | [3] | $0 | [3] | $0.01 | [3] | $0.01 | [3] | $0.01 | [3] | $0.03 | [3],[4] | $0.03 | [3],[4] | $0.60 | [4] |
Diluted net earnings per common share | $0.89 | [3] | $0.90 | [3] | $1.18 | [3] | $1.04 | [3] | $0.64 | [3] | $0.88 | [3] | $1.39 | [3] | $0.96 | [3] | $4.01 | [3],[4] | $3.86 | [3],[4] | $3.66 | [4] |
[1] | During the fourth quarter of fiscal year 2013, the Company recorded before-tax goodwill and indefinite-lived intangible assets impairment charges of $308 ($290 after-tax). For additional details, see Note 2. | |||||||||||||||||||||
[2] | The Company acquired the balance of its Baby Care and Feminine Care joint venture in Iberia in October 2012 resulting in a non-operating gain of $623. | |||||||||||||||||||||
[3] | Diluted net earnings per share is calculated on earnings attributable to Procter & Gamble. | |||||||||||||||||||||
[4] | Basic net earnings per common share and diluted net earnings per common share are calculated on net earnings attributable to Procter & Gamble |
QUARTERLY_RESULTS_Additional_I
QUARTERLY RESULTS - Additional Information (Details) (USD $) | 1 Months Ended | 3 Months Ended |
In Millions, unless otherwise specified | Oct. 31, 2012 | Jun. 30, 2013 |
Goodwill and indefinite-lived intangible assets impairment charges | ' | $308 |
After Tax Amount [Member] | ' | ' |
Business Acquisition, Preexisting Relationship, Gain (Loss) Recognized | 623 | ' |
Goodwill and indefinite-lived intangible assets impairment charges | ' | $290 |