Tax effect

  
    The following tables provide the effects of derivative instruments on AOCI and in the consolidated statements of income:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Location of Gain / (Loss) Reclassified from AOCI into Income (Effective Portion) |  | Gain / (Loss) Reclassified from AOCI into Income (Effective Portion) |
|  |  |  | Years ended June 30,  |
| ($ in millions) |  |  | 2022 |  | 2021 |  | 2020 |
| Derivatives in cash flow hedging relationships |  |  |  |  |  |  |  |  |
| Commodity contracts |  | Cost of sales |  | $ | 20  |  |  | $ | 1  |  |  | $ | (6) |  |
| Forward exchange contracts |  | Net sales |  | —  |  |  | —  |  |  | (1) |  |
|  |  |  |  |  |  |  |  |  |
| Treasury locks |  | Interest expense |  | (3) |  |  | (2) |  |  | —  |  |
| Total |  |  |  | $ | 17  |  |  | $ | (1) |  |  | $ | (7) |  |

  


|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Location of Gain / (Loss) Recognized in the Consolidated Income Statements |  | Gain / (Loss) Recognized in Income for Derivatives not Designated as Hedging Instruments |
|  |  |  | Years ended June 30,  |
| ($ in millions) |  |  | 2022 |  | 2021 |  | 2020 |
| Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |
| Forward exchange contracts |  | Other income, net |  | $ | (45) |  |  | $ | 11  |  |  | $ | (6) |  |
| Cross currency interest rate swaps |  | Other income, net |  | —  |  |  | (4) |  |  | —  |  |
| Total |  |  |  | $ | (45) |  |  | $ | 7  |  |  | $ | (6) |  |

  


|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Location of Loss Recognized in the Consolidated Income Statements |  | Loss Recognized in Income for Derivatives in Fair Value Hedging Relationships |
|  |  |  | Years ended June 30,  |
| ($ in millions) |  |  | 2022 |  | 2021 |  | 2020 |
| Derivatives in fair value hedging relationships |  |  |  |  |  |  |  |  |
| Interest rate swaps |  | Interest expense |  | $ | (75) |  |  | $ | (14) |  |  | $ | (1) |  |
| Forward exchange contracts |  | Other income, net |  | (11) |  |  | —  |  |  | —  |  |
| Total |  |  |  | $ | (86) |  |  | $ | (14) |  |  | $ | (1) |  |

  
    The changes in AOCI for effective derivatives were as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Years ended June 30,  |
| ($ in millions) |  | 2022 |  | 2021 |  | 2020 |
| Amounts reclassified into earnings |  |  |  |  |  |  |
| Commodity contracts |  | $ | (20) |  |  | $ | (1) |  |  | $ | 6  |  |
| Forward exchange contracts |  | —  |  |  | —  |  |  | 1  |  |
| Treasury locks |  | 3  |  |  | 2  |  |  | —  |  |
| Change in fair value |  |  |  |  |  |  |
| Commodity contracts |  | 9  |  |  | 22  |  |  | (7) |  |
| Forward exchange contracts |  | (1) |  |  | 3  |  |  | (2) |  |
| Treasury locks |  | —  |  |  | —  |  |  | (20) |  |
| Tax effect |  | 2  |  |  | —  |  |  | —  |  |
| Total |  | $ | (7) |  |  | $ | 26  |  |  | $ | (22) |  |

  
76
