Retirement Benefit Obligations (Tables)

12 Months Ended

Jun. 30, 2014

Schedule of Amounts Recognized in Balance Sheets

The Company recognized these amounts in the Balance Sheets at June 30, 2014 and June 30, 2013 as follows:


	Pension Benefits
	Domestic						Foreign						Postretirement Benefits
	As of June 30,
	2014			2013			2014			2013			2014			2013
	(in millions)
Other non-current assets	$	—		$	—		$	67		$	6		$	—		$	—
Other current liabilities		—			(1	)		(1	)		(1	)		(11	)		(12	)
Retirement benefit obligations		(49	)		(86	)		(84	)		(88	)		(139	)		(171	)

Net amount recognized	$	(49	)	$	(87	)	$	(18	)	$	(83	)	$	(150	)	$	(183	)

Schedule of Change in Projected Benefit Obligation, Change in Fair Value of Plan Assets and Funded Status

The following table sets forth the change in the projected benefit obligation, change in the fair value of the Company’s plan assets and funded status:


	Pension Benefits
	Domestic						Foreign						Postretirement Benefits
	As of June 30,
	2014			2013			2014			2013			2014			2013
	(in millions)
Projected benefit obligation, beginning of the year	$	342		$	257		$	1,114		$	1,159		$	183		$	230
Service cost		4			1			12			18			1			1
Interest cost		16			11			51			51			7			8
Benefits paid		(15	)		(14	)		(47	)		(47	)		(10	)		(11	)
Settlements^(a)		(12	)		(10	)		(36	)		(103	)		—			—
Actuarial (gain)/loss^(b)		35			(20	)		39			81			9			(44	)
Foreign exchange rate changes		—			—			117			(53	)		2			(1	)
Liabilities assumed upon Separation		—			117			—			—			—			—
Plan curtailments		(20	)		—			—			4			(1	)		—
Amendments, transfers and other		—			—			2			4			(41	)		—

Projected benefit obligation, end of the year		350			342			1,252			1,114			150			183

Change in the fair value of plan assets for the Company’s benefit plans:
Fair value of plan assets, beginning of the year		255			189			1,031			960			—			—
Actual return on plan assets		36			11			73			110			—			—
Employer contributions^(c)		37			21			100			159			—			—
Benefits paid		(15	)		(14	)		(47	)		(47	)		—			—
Settlements^(a)		(12	)		(10	)		(36	)		(103	)		—			—
Foreign exchange rate changes		—			—			111			(51	)		—			—
Assets received upon Separation^(d)		—			58			—			—			—			—
Amendments, transfers and other		—			—			2			3			—			—

Fair value of plan assets, end of the year		301			255			1,234			1,031			—			—

Funded status	$	(49	)	$	(87	)	$	(18	)	$	(83	)	$	(150	)	$	(183	)

^(a)	Amounts related to payments made to former employees of the Company in full settlement of their deferred pension benefits.

^(b)

Fiscal 2014 actuarial losses for domestic pension and postretirement benefits primarily related to changes in the discount rate and strengthening of the mortality tables utilized in measuring plan obligations as of June 30, 2014. Fiscal 2014 actuarial losses for foreign pension benefits primarily related to changes in the discount rate as of June 30, 2014. Fiscal 2013 actuarial gains for domestic pension benefits primarily related to changes in the discount rate and for postretirement benefits primarily related to changes in the discount rate as of June 30, 2013 and improvements in claims experience in measuring plan obligations as of June 30, 2013. Fiscal 2013 actuarial losses for foreign pension benefits primarily related to inflation rate changes and strengthening of the mortality tables utilized in measuring plan obligations as of June 30, 2013.

^(c)

During the first quarter of fiscal 2014 approximately $37 million of contributions were made by a third party in connection with the sale of a business in a prior period on behalf of former employees who retain certain pension benefits. In fiscal 2013, the Company made approximately $115 million in contributions in connection with the Separation.

^(d)	Of the $58 million in assets received as part of the Separation, $20 million related to a receivable from 21st Century Fox which was received during the first quarter of fiscal 2014.

Schedule of Amounts Recognized in Accumulated Other Comprehensive Income

Amounts recognized in Accumulated other comprehensive income consist of:


	Pension Benefits								Postretirement Benefits
	Domestic				Foreign				Postretirement Benefits
	As of June 30,
	2014		2013		2014		2013		2014			2013
	(in millions)
Actuarial losses	$	108	$	121	$	420	$	351	$	18		$	9
Prior service (benefit)		—		—		—		—		(54	)		(27	)

Net amounts recognized	$	108	$	121	$	420	$	351	$	(36	)	$	(18	)

Schedule of Amounts in Accumulated Other Comprehensive Income Expected to be Recognized as Component of Net Periodic Pension Cost

Amounts in Accumulated other comprehensive income expected to be recognized as a component of net periodic pension cost in fiscal 2015:


	Pension Benefits				Postretirement Benefits
	Domestic		Foreign		Postretirement Benefits
	As of June 30, 2014
	(in millions)
Actuarial losses	$	3	$	13	$	—
Prior service (benefit)		—		—		(13	)

Net amounts recognized	$	3	$	13	$	(13	)

Schedule of Accumulated and Projected Benefit Obligations and Fair Value of Plan Assets for Funded and Unfunded Pension Plans

Below is information about funded and unfunded pension plans.


	Domestic Pension Benefits
	Funded Plans				Unfunded Plans				Total
	As of June 30,
	2014		2013		2014		2013		2014		2013
	(in millions)
Projected benefit obligation	$	339	$	324	$	11	$	18	$	350	$	342
Accumulated benefit obligation		339		302		11		17		350		319
Fair value of plan assets		301		255		—		—		301		255


	Foreign Pension Benefits
	Funded Plans				Unfunded Plans				Total
	As of June 30,
	2014		2013		2014		2013		2014		2013
	(in millions)
Projected benefit obligation	$	1,183	$	1,057	$	69	$	57	$	1,252	$	1,114
Accumulated benefit obligation		1,171		1,048		69		57		1,240		1,105
Fair value of plan assets		1,234		1,031		—		—		1,234		1,031

Schedule of Accumulated Benefit Obligation Exceeds Fair Value of Plan Assets

Below is information about foreign pension plans in which the accumulated benefit obligation exceeds the fair value of the plan assets.


	Funded Plans				Unfunded Plans
	As of June 30,
	2014		2013		2014		2013
	(in millions)
Projected benefit obligation	$	237	$	691	$	69	$	57
Accumulated benefit obligation		237		691		69		57
Fair value of plan assets		221		660		—		—

Schedule of Components of Net Periodic Costs

The components of net periodic benefits costs were as follows:


	Pension Benefits																		Postretirement Benefits
	Domestic									Foreign									Postretirement Benefits
	For the fiscal years ended June 30,
	2014			2013			2012			2014			2013			2012			2014			2013			2012
	(in millions)
Service cost benefits earned during the period	$	4		$	1		$	—		$	12		$	18		$	19		$	1		$	1		$	2
Interest costs on projected benefit obligations		16			11			13			51			51			60			7			8			10
Expected return on plan assets		(17	)		(13	)		(13	)		(76	)		(65	)		(69	)		—			—			—
Amortization of deferred losses		4			3			2			12			15			14			(1	)		3			1
Amortization of prior service costs		—			—			—			—			—			—			(13	)		(13	)		(16	)
Settlements, curtailments and other		4			—			—			3			15			8			—			—			—

Net periodic benefits costs- Direct		11			2			2			2			34			32			(6	)		(1	)		(3	)
Employees participation in 21st Century Fox plans		—			16			10			—			—			—			—			—			—
Corporate allocations^(a)		—			5			4			—			—			—			—			—			—

Net periodic benefits costs- Total	$	11		$	23		$	16		$	2		$	34		$	32		$	(6	)	$	(1	)	$	(3	)

^(a)	The allocated expense includes corporate executives of 21st Century Fox, allocated using a proportional allocation methodology, which management has deemed as reasonable.

Schedule of Assumptions Used


	Pension Benefits
	Domestic									Foreign									Postretirement Benefits
	For the fiscal years ended June 30,
	2014			2013			2012			2014			2013			2012			2014			2013			2012
Additional information:
Weighted-average assumptions used to determine benefit obligations
Discount rate		4.5	%		5.0	%		4.3	%		4.2	%		4.5	%		4.5	%		4.0	%		4.7	%		3.8	%
Rate of increase in future compensation		N/A			5.3	%		3.3	%		3.6	%		3.7	%		3.3	%		N/A			N/A			N/A

Weighted-average assumptions used to determine net periodic benefit cost
Discount rate		5.0	%		4.3	%		5.8	%		4.5	%		4.5	%		5.7	%		4.7	%		3.8	%		5.3	%
Expected return on plan assets		7.0	%		7.0	%		7.0	%		6.8	%		6.7	%		7.0	%		N/A			N/A			N/A
Rate of increase in future compensation		5.3	%		5.3	%		3.3	%		3.7	%		3.3	%		3.8	%		N/A			N/A			N/A

N/A—not applicable

Schedule of Health Care Cost Trend Rates

The following assumed health care cost trend rates as of June 30 were also used in accounting for postretirement benefits:


	Postretirement Benefits
	Fiscal 2014			Fiscal 2013
Health care cost trend rate		6.6	%		6.7	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		4.5	%		5.1	%
Year that the rate reaches the ultimate trend rate		2027			2019

Schedule of Effect of One Percentage Point Change in Assumed Health Care Cost Trend Rate

The effect of a one percentage point increase and one percentage point decrease in the assumed health care cost trend rate would have the following effects on the results for fiscal 2014:


	Service and Interest Costs			Benefit Obligation
	(in millions)
One percentage point increase	$	1		$	15
One percentage point decrease	$	(1	)	$	(13	)

Schedule of Expected Benefit Payments

The expected benefits are estimated based on the same assumptions used to measure the Company’s benefit obligation at the end of the fiscal year and include benefits attributable to estimated future employee service:


	Expected Benefit Payments
	Pension Benefits				Postretirement Benefits
	Domestic		Foreign		Postretirement Benefits
	(in millions)
Fiscal year:
2015	$	21	$	62	$	11
2016		19		60		12
2017		19		63		12
2018		20		64		11
2019		19		67		11
2020-2024		100		366		52

Schedule of Allocation of Plan Assets

The table below presents the Company’s plan assets by level within the fair value hierarchy, as described in Note 2—Summary of Significant Accounting Policies, as of June 30, 2014 and 2013:


	As of June 30, 2014								As of June 30, 2013
			Fair Value Measurements at Reporting Date Using								Fair Value Measurements at Reporting Date Using
Description	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
	(in millions)
Assets
Short-term investments	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Pooled funds:^(a)
Money market funds		6		—		6		—		49		—		49		—
Domestic equity funds		87		—		87		—		65		—		65		—
International equity funds		332		105		227		—		373		126		247		—
Domestic fixed income funds		149		—		149		—		108		—		108		—
International fixed income funds		543		—		543		—		304		—		304		—
Balanced funds		377		—		377		—		350		—		350		—
Other		41		29		—		12		37		26		—		11

Total	$	1,535	$	134	$	1,389	$	12	$	1,286	$	152	$	1,123	$	11

^(a)	Open-ended pooled funds that are registered and/or available to the general public are valued at the daily published net asset value (“NAV”). Other pooled funds are valued at the NAV provided by the fund issuer.

Summary of Changes in Fair Value of Investments Reflected as Level 3 Assets

The table below sets forth a summary of changes in the fair value of investments reflected as Level 3 assets as of June 30, 2014 and 2013:


	Partnership Interests			Other			Total
	(in millions)
Balance, June 30, 2012	$	4		$	12		$	16
Actual return on plan assets:
Relating to assets still held at end of period		—			(1	)		(1	)
Relating to assets sold during the period		—			—			—
Purchases, sales, settlements and issuances		(4	)		—			(4	)
Transfers in and out of Level 3		—			—			—

Balance, June 30, 2013	$	—		$	11		$	11
Actual return on plan assets:
Relating to assets still held at end of period		—			2			2
Relating to assets sold during the period		—			—			—
Purchases, sales, settlements and issuances		—			(1	)		(1	)
Transfers in and out of Level 3		—			—			—

Balance, June 30, 2014	$	—		$	12		$	12

Schedule of Weighted-Average Asset Allocations, by Asset Category

The Company’s benefit plan weighted-average asset allocations, by asset category, are as follows:


	Pension benefits
	As of June 30,
	2014			2013
Asset Category:
Equity securities		30	%		37	%
Debt securities		52	%		39	%
Cash and other		18	%		24	%

Total		100	%		100	%