Pension and Other Postretirement Benefits

3 Months Ended

Sep. 30, 2014

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits

NOTE 11. PENSION AND OTHER POSTRETIREMENT BENEFITS

The Company provides pension, postretirement health care, defined contribution and medical benefits primarily in the U.S., U.K. and Australia to the Company’s eligible employees and retirees. The Company funds amounts, at a minimum, in accordance with statutory requirements for all plans. Plan assets consist principally of common stocks, marketable bonds and government securities.

The amortization of amounts related to unrecognized prior service (credits) and deferred losses were reclassified out of other comprehensive income as a component of net periodic benefit costs. The components of net periodic benefits costs were as follows:

	Pension benefits												Postretirement
	Domestic						Foreign						benefits
	For the three months ended September 30,
	2014			2013			2014			2013			2014			2013
	(in millions)
Service cost benefits earned during the period	$	—		$	2		$	3		$	3		$	—		$	—
Interest costs on projected benefit obligations		4			4			13			12			1			2
Expected return on plan assets		(5	)		(4	)		(19	)		(18	)		—			—
Amortization of deferred losses		1			1			3			3			—			—
Amortization of prior service (credits)		—			—			—			—			(3	)		(3	)
Settlements, curtailments and other		—			3			—			—			—			—
Net periodic benefits costs	$	—		$	6		$	—		$	—		$	(2	)	$	(1	)

During the three months ended September 30, 2014 and 2013, the Company contributed approximately $4 million and $11 million to its various pension and postretirement plans, respectively. In addition, 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 retained certain pension benefits. This resulted in a gain being recognized in Other, net in the Statement of Operations during the three months ended September 30, 2013.

In the first quarter of fiscal 2014, the Company further reduced its Retirement benefit obligation by approximately $41 million due to changes made to the Company’s retiree medical plans. This reduction was recognized in other comprehensive income during the first quarter of fiscal 2014 and will be amortized over the remaining expected life of the plans’ participants as actuarially determined.