PENSION, DEFERRED COMPENSATION AND POST-RETIREMENT BENEFIT PLANS (Tables)

12 Months Ended

Jun. 30, 2018

	Pension Plans												Other than Pension Plans
	U.S.						International						Post-retirement
(In millions)	2018			2017			2018			2017			2018			2017
Change in benefit obligation:
Benefit obligation at beginning of year	$	903		$	877		$	605		$	616		$	183		$	191
Service cost	37			37			30			28			3			3
Interest cost	33			30			13			11			7			7
Plan participant contributions	—			—			5			4			—			1
Actuarial loss (gain)	(26		)	(1		)	(22		)	(26		)	(16		)	(11		)
Foreign currency exchange rate impact	—			—			(2		)	(2		)	(1		)	—
Benefits, expenses, taxes and premiums paid	(51		)	(40		)	(34		)	(25		)	(6		)	(8		)
Plan amendments	—			—			(5		)	—			—			—
Settlements	—			—			(3		)	(3		)	—			—
Special termination benefits	—			—			1			2			—			—

Benefit obligation at end of year	$	896		$	903		$	588		$	605		$	170		$	183


Change in plan assets:
Fair value of plan assets at beginning of year	$	781		$	743		$	548		$	529		$	37		$	33
Actual return on plan assets	55			71			16			28			2			4
Foreign currency exchange rate impact	—			—			(2		)	(9		)	—			—
Employer contributions	53			7			31			24			1			7
Plan participant contributions	—			—			5			4			—			1
Settlements	—			—			(3		)	(3		)	—			—
Benefits, expenses, taxes and premiums paid from plan assets	(51		)	(40		)	(34		)	(25		)	(6		)	(8		)

Fair value of plan assets at end of year	$	838		$	781		$	561		$	548		$	34		$	37


Funded status	$	(58	)	$	(122	)	$	(27	)	$	(57	)	$	(136	)	$	(146	)


Amounts recognized in the Balance Sheet consist of:
Other assets	$	71		$	12		$	110		$	88		$	—		$	—
Other accrued liabilities	(23		)	(23		)	(4		)	(5		)	—			—
Other noncurrent liabilities	(106		)	(111		)	(133		)	(140		)	(136		)	(146		)

Funded status	(58		)	(122		)	(27		)	(57		)	(136		)	(146		)
Accumulated other comprehensive loss	190			232			40			72			4			21

Net amount recognized	$	132		$	110		$	13		$	15		$	(132	)	$	(125	)

	Pension Plans																		Other than Pension Plans
	U.S.									International									Post-retirement
($ in millions)	2018			2017			2016			2018			2017			2016			2018			2017			2016
Components of net periodic benefit cost:
Service cost	$	37		$	37		$	32		$	30		$	28		$	25		$	3		$	3		$	3
Interest cost	33			30			33			13			11			15			7			7			7
Expected return on assets	(53		)	(52		)	(49		)	(15		)	(16		)	(20		)	(3		)	(1		)	(2		)
Amortization of:
Actuarial loss	14			16			11			5			11			11			—			1			—
Prior service cost	—			1			1			—			2			2			1			—			1
Special termination benefits	—			—			—			1			2			1			—			—			—

Net periodic benefit cost	$	31		$	32		$	28		$	34		$	38		$	34		$	8		$	10		$	9


Weighted-average assumptions used to determine benefit obligations at June 30:
Discount rate	4.10 – 4.30		%	3.40 – 3.90		%	3.00 – 3.70		%	.50 – 7.50		%	.50 – 6.75		%	.25 – 6.00		%	3.75 – 9.75		%	3.70 – 9.75		%	3.50 – 9.50		%

Rate of compensation	2.50 –			3.00 –			3.00 –			1.00 –			1.00 –			0 –			N/A			N/A			N/A
increase	8.00		%	7.00		%	7.00		%	5.50		%	5.50		%	5.50		%

Weighted-average assumptions used to determine net periodic benefit cost for the year ended June 30:
Discount rate	3.40 –			3.00 –			3.70 –			.50 –			.25 –			.75 –			3.70 –			3.50 –			4.25 –
	3.90		%	3.70		%	4.40		%	6.75		%	6.00		%	7.00		%	9.75		%	9.50		%	9.00		%

Expected return on assets	7.00		%	7.00		%	7.00		%	1.75 –			1.50 –			2.00 –			7.00		%	7.00		%	7.00		%
										6.75		%	6.00		%	7.00		%

Rate of compensation	3.00 –			3.00 –			3.00 –			1.00 –			0 –			1.00 –			N/A			N/A			N/A
increase	7.00		%	7.00		%	7.00		%	5.50		%	5.50		%	5.50		%

A 100 basis-point change in assumed health care cost trend rates for fiscal 2018 would have had the following effects:

(In millions)	100 Basis-Point Increase		100 Basis-Point Decrease

Effect on total service and interest costs	$	1	$	(1	)

Effect on post-retirement benefit obligations	$	14	$	(12	)

Amounts recognized in AOCI (before tax) as of June 30, 2018 are as follows:

	Pension Plans						Other than Pension Plans
(In millions)	U.S.			International			Post-retirement			Total

Net actuarial losses, beginning of year	$	230		$	74		$	20		$	324
Actuarial gains recognized	(28		)	(23		)	(16		)	(67		)
Amortization included in net periodic benefit cost	(14		)	(5		)	—			(19		)
Translation adjustments	—			1			—			1

Net actuarial losses, end of year	188			47			4			239


Net prior service cost, beginning of year	2			(2		)	1			1
Prior service credit recognized	—			(5		)	—			(5		)
Amortization included in net periodic benefit cost	—			—			(1		)	(1		)

Net prior service cost, end of year	2			(7		)	—			(5		)


Total amounts recognized in AOCI	$	190		$	40		$	4		$	234

Amounts in AOCI expected to be amortized as components of net periodic benefit cost during fiscal 2019 are as follows:

	Pension Plans					Other than Pension Plans
(In millions)	U.S.		International			Post-retirement

Net prior service cost (credit)	$	1	$	(1	)	$	—

Net actuarial losses	$	10	$	3		$	—

	Pension Plans
	Retirement Growth Account				Restoration				International
(In millions)	2018		2017		2018		2017		2018		2017

Projected benefit obligation	$	767	$	769	$	129	$	134	$	588	$	605

Accumulated benefit obligation	$	721	$	726	$	113	$	120	$	533	$	540

Fair value of plan assets	$	838	$	781	$	—	$	—	$	561	$	548

	Pension Plans				Other than Pension Plans
(In millions)	U.S.		International		Post-retirement

Expected employer contributions for year ending June 30, 2019	$	—	$	25	$	—
Expected benefit payments for year ending June 30,
2019	62		25		7
2020	50		24		8
2021	51		25		8
2022	51		27		9
2023	50		31		9
Years 2024 – 2028	281		151		54

The Company’s target asset allocation at June 30, 2018 is as follows:

The following table presents the fair values of the Company’s pension and post-retirement plan assets by asset category as of June 30, 2018:

(In millions)	Level 1		Level 2		Level 3		Assets Measured at NAV		Total

Cash and cash equivalents	$	29	$	—	$	—	$	—	$	29
Short term investment funds	—		6		—		6		12
Government and agency securities	—		81		—		—		81
Debt instruments	—		25		—		—		25
Commingled funds	313		580		—		219		1,112
Insurance contracts	—		—		49		—		49
Limited partnerships and hedge fund investments	—		—		—		125		125

Total	$	342	$	692	$	49	$	350	$	1,433

The following table presents the fair values of the Company’s pension and post-retirement plan assets by asset category as of June 30, 2017:

(In millions)	Level 1		Level 2		Level 3		Assets Measured at NAV		Total

Cash and cash equivalents	$	3	$	—	$	—	$	—	$	3
Short term investment funds	—		17		—		6		23
Government and agency securities	—		37		—		—		37
Debt instruments	—		59		—		—		59
Commingled funds	147		761		—		194		1,102
Insurance contracts	—		—		48		—		48
Limited partnerships and hedge fund investments	—		—		—		94		94

Total	$	150	$	874	$	48	$	294	$	1,366

(In millions)	Insurance Contracts

Balance as of June 30, 2017	$	48
Actual return on plan assets:
Relating to assets still held at the reporting date	1
Purchases, sales, issuances and settlements, net	(1		)
Foreign exchange impact	1

Balance as of June 30, 2018	$	49