PENSION AND POST-RETIREMENT BENEFIT PLANS

6 Months Ended

Dec. 31, 2016

PENSION AND POST-RETIREMENT BENEFIT PLANS

PENSION AND POST-RETIREMENT BENEFIT PLANS

NOTE 9 — PENSION AND POST-RETIREMENT BENEFIT PLANS

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.  The Company also maintains post-retirement benefit plans which provide certain medical and dental benefits to eligible employees.  Descriptions of these plans are discussed in the notes to consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2016.

The components of net periodic benefit cost for the three months ended December 31, 2016 and 2015 consisted of the following:

													Other than
	Pension Plans												Pension Plans
	U.S.						International						Post-retirement
(In millions)	2016			2015			2016			2015			2016		2015
Service cost	$	9		$	8		$	7		$	6		$	1	$	1
Interest cost	7			8			3			4			1		2
Expected return on plan assets	(13		)	(12		)	(4		)	(5		)	—		—
Amortization of:
Prior service cost	—			—			1			—			—		—
Actuarial loss	4			3			2			3			1		—
Net periodic benefit cost	$	7		$	7		$	9		$	8		$	3	$	3

The components of net periodic benefit cost for the six months ended December 31, 2016 and 2015 consisted of the following:

													Other than
	Pension Plans												Pension Plans
	U.S.						International						Post-retirement
(In millions)	2016			2015			2016			2015			2016			2015
Service cost	$	18		$	16		$	14		$	12		$	2		$	2
Interest cost	15			16			6			8			3			4
Expected return on plan assets	(26		)	(24		)	(8		)	(10		)	(1		)	(1		)
Amortization of:
Prior service cost	1			—			1			1			—			—
Actuarial loss	8			6			5			6			1			—
Net periodic benefit cost	$	16		$	14		$	18		$	17		$	5		$	5

During the six months ended December 31, 2016, the Company made contributions to its international pension plans totaling approximately $6 million.

The amounts recognized in the consolidated balance sheets related to the Company’s pension and post-retirement benefit plans consist of the following:

	December 31			June 30
(In millions)	2016			2016
Other assets	$	73		$	79
Other accrued liabilities	(27		)	(27		)
Other noncurrent liabilities	(436		)	(429		)
Funded status	(390		)	(377		)
Accumulated other comprehensive loss	405			427
Net amount recognized	$	15		$	50