The Company maintains pension plans covering substantially all of its full-time employees for its U.S. operations and a majority of its international operations. Several plans provide pension benefits based primarily on years of service and employees’ earnings. In certain instances, the Company adjusts benefits in connection with international employee transfers.

The Retirement Growth Account Plan is a trust-based, noncontributory qualified defined benefit pension plan. The Company seeks to maintain appropriate funded percentages. For contributions, the Company would seek to contribute an amount or amounts that would not be less than the minimum required by the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended, and subsequent pension legislation, and would not be more than the maximum amount deductible for income tax purposes.

The Company maintains international pension plans, the most significant of which are defined benefit pension plans. The Company’s funding policies for these plans are determined by local laws and regulations. The Company’s most significant defined benefit pension obligations are included in the plan summaries below.

The Company maintains a domestic post-retirement benefit plan which provides certain medical and dental benefits to eligible employees. Employees hired after January 1, 2002 are not eligible for retiree medical benefits when they retire. Certain retired employees who are receiving monthly pension benefits are eligible for participation in the plan. Contributions required and benefits received by retirees and eligible family members are dependent on the age of the retiree. It is the Company’s practice to fund a portion of these benefits as incurred and may provide discretionary funding for future liabilities up to the maximum amount deductible for income tax purposes.


	Pension Plans													Other than Pension Plans
	U.S.						International						Post-retirement
(In millions)	2020		2019		2020		2019		2020		2019
Change in benefit obligation:
Benefit obligation at beginning of year	$	966	$	896	$	631	$	588	$	183	$	170
Service cost	39		38		36		30		3		3
Interest cost	35		37		11		13		6		7
Plan participant contributions	—		—		6		5		—		1
Actuarial loss (gain)	101		68		(12)		51		6		10
Foreign currency exchange rate impact	—		—		(1)		(18)		(1)		(1)
Benefits, expenses, taxes and premiums paid	(59)		(73)		(32)		(31)		(7)		(7)

Settlements	—		—		(3)		(7)		—		—

Benefit obligation at end of year	$	1,082	$	966	$	636	$	631	$	190	$	183

Change in plan assets:
Fair value of plan assets at beginning of year	$	832	$	838	$	577	$	561	$	31	$	34
Actual return on plan assets	109		48		43		32		3		2
Foreign currency exchange rate impact	—		—		(4)		(16)		—		—
Employer contributions	48		19		25		33		—		1
Plan participant contributions	—		—		6		5		—		1
Settlements	—		—		(4)		(7)		—		—
Benefits, expenses, taxes and premiums paid from plan assets	(59)		(73)		(32)		(31)		(7)		(7)
Fair value of plan assets at end of year	$	930	$	832	$	611	$	577	$	27	$	31

Funded status	$	(152)	$	(134)	$	(25)	$	(54)	$	(163)	$	(152)

Amounts recognized in the Balance Sheet consist of:
Other assets	$	—	$	2	$	127	$	103	$	—	$	—
Other accrued liabilities	(23)		(24)		(4)		(3)		—		—
Other noncurrent liabilities	(129)		(112)		(148)		(154)		(163)		(152)
Funded status	(152)		(134)		(25)		(54)		(163)		(152)
Accumulated other comprehensive loss	283		253		24		68		17		13
Net amount recognized	$	131	$	119	$	(1)	$	14	$	(146)	$	(139)


	Pension Plans																									Other than Pension Plans
	U.S.													International											Post-retirement
($ in millions)	2020			2019			2018			2020		2019		2018		2020			2019			2018
Components of net periodic benefit cost:
Service cost	$	39		$	38		$	37		$	36	$	30	$	30	$	3		$	3		$	3
Interest cost	35			37			33			11		13		13		6			7			7
Expected return on assets	(53)			(55)			(53)			(14)		(14)		(15)		(2)			(2)			(3)
Amortization of:
Actuarial loss	15			11			14			6		3		5		—			—			—
Prior service cost	—			1			—			—		(1)		—		—			—			1
Settlements	—			—			—			—		1		—		—			—			—
Special termination benefits	—			—			—			—		—		1		—			—			—
Net periodic benefit cost	$	36		$	32		$	31		$	39	$	32	$	34	$	7		$	8		$	8
Weighted-average assumptions used to determine benefit obligations at June 30:
Discount rate	2.50 – 3.00%			3.40 – 3.80%			4.10 – 4.30%			0.50 – 7.00%		0.25 – 8.50%		.50 – 7.50		2.70 – 9.00%			3.25 – 9.75%			3.75 – 9.75%
Rate of compensation increase	2.50 – 8.00%			2.50 – 8.00%			2.50 – 8.00%			1.00 – 5.50%		1.00 – 5.50%		1.00– 5.50		N/A			N/A			N/A
Weighted-average assumptions used to determine net periodic benefit cost for the year ended June 30:
Discount rate	3.40 – 3.80%			4.10 – 4.30%			3.40 – 3.90%			.25 – 8.50%		.50– 7.50%		.50 – 6.75%		3.25 – 9.75%			3.75 – 9.75%			3.70 – 9.75%
Expected return on assets	6.75		%	6.75		%	7.00		%	1.50 – 8.50%		1.50 – 7.50%		1.75 – 6.75%		6.75		%	6.75		%	7.00		%
Rate of compensation increase	2.50 – 8.00%			2.50 – 8.00%			3.00– 7.00%			1.00 – 5.50%		1.00 – 5.50%		1.00 – 5.50%		N/A			N/A			N/A

The discount rate for each plan used for determining future net periodic benefit cost is based on a review of highly rated long-term bonds. The discount rate for the Company’s Domestic Plans is based on a bond portfolio that includes only long-term bonds with an Aa rating, or equivalent, from a major rating agency. The Company used an above-mean yield curve which represents an estimate of the effective settlement rate of the obligation, and the timing and amount of cash flows related to the bonds included in this portfolio are expected to match the estimated defined benefit payment streams of the Company’s Domestic Plans. For the Company’s international plans, the discount rate in a particular country was principally determined based on a yield curve constructed from high quality corporate bonds in each country, with the resulting portfolio having a duration matching that particular plan. In determining the long-term rate of return for a plan, the Company considers the historical rates of return, the nature of the plan’s investments and an expectation for the plan’s investment strategies.

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. The assumed weighted-average health care cost trend rate for the coming year is 5.78% while the weighted-average ultimate trend rate of 4.40% is expected to be reached in approximately 18 years. A 100 basis-point change in assumed health care cost trend rates for fiscal 2020 would have had the following effects:


	Pension Plans						Other than Pension Plans
(In millions)	U.S.		International		Post-retirement		Total
Net actuarial losses, beginning of year	$	252	$	74	$	13	$	339
Actuarial losses recognized	45		(40)		4		9
Amortization and settlements included in net periodic benefit cost	(15)		(6)		—		(21)
Translation adjustments	—		2		—		2
Net actuarial losses, end of year	282		30		17		329

Net prior service cost, beginning of year	1		(6)		—		(5)
Amortization included in net periodic benefit cost	—		—		—		—
Net prior service cost, end of year	1		(6)		—		(5)
Total amounts recognized in AOCI	$	283	$	24	$	17	$	324

International pension plans with projected benefit obligations in excess of the plans’ assets had aggregate projected benefit obligations of $330 million and $319 million and aggregate fair value of plan assets of $178 million and $162 million at June 30, 2020 and 2019, respectively. International pension plans with accumulated benefit obligations in excess of the plans’ assets had aggregate accumulated benefit obligations of $246 million and $241 million and aggregate fair value of plan assets of $128 million and $116 million at June 30, 2020 and 2019, respectively.


	Pension Plans					Other than Pension Plans
(In millions)	U.S.		International		Post-retirement
Expected employer contributions for year ending June 30, 2021	$	—	$	31	—
Expected benefit payments for year ending June 30,
2021	67		25		8
2022	54		26		8
2023	52		28		9
2024	52		27		9
2025	53		29		10
Years 2026 – 2030	287		145		57

The Company’s investment strategy for its pension and post-retirement plan assets is to maintain a diversified portfolio of asset classes with the primary goal of meeting long-term cash requirements as they become due. Assets are primarily invested in diversified funds that hold equity or debt securities to maintain the security of the funds while maximizing the returns within each plan’s investment policy. The investment policy for each plan specifies the type of investment vehicles appropriate for the plan, asset allocation guidelines, criteria for selection of investment managers and procedures to monitor overall investment performance, as well as investment manager performance.

Cash and Cash Equivalents – Cash and all highly-liquid securities with original maturities of three months or less are classified as cash and cash equivalents, primarily consisting of cash deposits in interest bearing accounts, time deposits and money market funds. These assets are classified within Level 1 of the valuation hierarchy.

Short-term investment funds – The fair values are determined using the Net Asset Value (“NAV”) provided by the administrator of the fund when the Company has the ability to redeem the assets at the measurement date. These assets are classified within Level 2 of the valuation hierarchy. For some assets the Company is utilizing the NAV as a practical expedient and those investments are not included in the valuation hierarchy.

Government and agency securities – The fair values are determined using third-party pricing services using market prices or prices derived from observable market inputs such as benchmark curves, broker/dealer quotes, and other industry and economic factors. These investments are classified within Level 2 of the valuation hierarchy.

Debt instruments – The fair values are determined using third-party pricing services using market prices or prices derived from observable market inputs such as credit spreads, broker/dealer quotes, benchmark curves and other industry and economic factors. These investments are classified within Level 2 of the valuation hierarchy.

Commingled funds – The fair values of publicly traded funds are based upon market quotes and are classified within Level 1 of the valuation hierarchy. The fair values for non-publicly traded funds are determined using the NAV provided by the administrator of the fund when the Company has the ability to redeem the assets at the measurement date. These assets are classified within Level 2 of the valuation hierarchy. When the Company is utilizing the NAV as a practical expedient those investments are not included in the valuation hierarchy. These investments have monthly redemption frequencies with redemption notice periods ranging from 10 to 30 days. There are no unfunded commitments related to these investments.

Insurance contracts – The fair values are based on negotiated value and the underlying investments held in separate account portfolios, as well as the consideration of the creditworthiness of the issuer. The underlying investments are primarily government, asset-backed and fixed income securities. Insurance contracts are generally classified as Level 3 as there are no quoted prices or other observable inputs for pricing.

Interests in limited partnerships and hedge fund investments – The fair values are determined using the NAV provided by the administrator as a practical expedient, and therefore these investments are not included in the valuation hierarchy. These investments have monthly and quarterly redemption frequencies with redemption notice periods ranging from 30 to 90 days. Unfunded commitments related to these investments are de minimis.


(In millions)	Level 1		Level 2		Level 3		Assets Measured at NAV		Total
Cash and cash equivalents	$	2	$	—	$	—	$	—	$	2
Short term investment funds	—		7		—		6		13
Government and agency securities	—		152		—		—		152

Commingled funds	386		666		—		207		1,259
Insurance contracts	—		—		49		—		49
Limited partnerships and hedge fund investments	—		—		—		93		93
Total	$	388	$	825	$	49	$	306	$	1,568


(In millions)	Level 1		Level 2		Level 3		Assets Measured at NAV		Total
Cash and cash equivalents	$	6	$	—	$	—	$	—	$	6
Short term investment funds	—		19		—		5		24
Government and agency securities	—		112		—		—		112

Commingled funds	347		590		—		212		1,149
Insurance contracts	—		—		49		—		49
Limited partnerships and hedge fund investments	—		—		—		100		100
Total	$	353	$	721	$	49	$	317	$	1,440

The Company’s 401(k) Savings Plan (“Savings Plan”) is a contributory defined contribution plan covering substantially all regular U.S. employees who have completed the hours and service requirements, as defined by the plan document. Regular full-time employees are eligible to participate in the Savings Plan thirty days following their date of hire. The Savings Plan is subject to the applicable provisions of ERISA. The Company matches a portion of the participant’s contributions after one year of service under a predetermined formula based on the participant’s contribution level. The Company’s contributions were $37 million, $44 million and $41 million for fiscal 2020, 2019 and 2018, respectively. Shares of the Company’s Class A Common Stock are not an investment option in the Savings Plan and the Company does not use such shares to match participants’ contributions.

The Company has agreements with certain employees and outside directors who defer compensation. The Company accrues for such compensation, and either interest thereon or for the change in the value of cash units. The amounts included in the accompanying consolidated balance sheets under these plans were $85 million and $93 million as of June 30, 2020 and 2019, respectively. The expense for fiscal 2020, 2019 and 2018 was $5 million, $8 million and $16 million, respectively.