Retirement Benefit Obligations (Tables)

12 Months Ended

Jun. 30, 2016

Schedule of Amounts Recognized in Balance Sheets

The Company recognized these amounts in the Balance Sheets at June 30, 2016 and June 30, 2015 as follows:


	Pension Benefits
	Domestic						Foreign						Postretirement benefits						Total
	As of June 30,
	2016			2015			2016			2015			2016			2015			2016			2015
	(in millions)
Other non-current assets	$	—		$	—		$	4		$	36		$	—		$	—		$	4		$	36
Other current liabilities		—			—			(1	)		(1	)		(9	)		(11	)		(10	)		(12	)
Retirement benefit obligations		(109	)		(80	)		(124	)		(103	)		(117	)		(122	)		(350	)		(305	)

Net amount recognized	$	(109	)	$	(80	)	$	(121	)	$	(68	)	$	(126	)	$	(133	)	$	(356	)	$	(281	)

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						Total
	As of June 30,
	2016			2015			2016			2015			2016			2015			2016			2015
	(in millions)
Projected benefit obligation, beginning of the year	$	382		$	350		$	1,272		$	1,252		$	133		$	150		$	1,787		$	1,752
Service cost		—			1			10			11			—			—			10			12
Interest cost		17			17			44			49			5			6			66			72
Benefits paid		(18	)		(16	)		(55	)		(58	)		(8	)		(9	)		(81	)		(83	)
Settlements^(a)		(11	)		(9	)		(33	)		—			—			—			(44	)		(9	)
Actuarial loss/(gain)^(b)		28			10			153			85			(2	)		(13	)		179			82
Foreign exchange rate changes		—			—			(188	)		(122	)		(2	)		(1	)		(190	)		(123	)
Plan curtailments		(2	)		—			(2	)		—			—			—			(4	)		—
Amendments, transfers and other^(c)		—			29			—			55			—			—			—			84

Projected benefit obligation, end of the year		396			382			1,201			1,272			126			133			1,723			1,787

Change in the fair value of plan assets for the Company’s benefit plans:
Fair value of plan assets, beginning of the year		302			301			1,204			1,234			—			—			1,506			1,535
Actual return on plan assets		14			5			107			91			—			—			121			96
Employer contributions		—			—			26			9			—			—			26			9
Benefits paid		(18	)		(16	)		(55	)		(58	)		—			—			(73	)		(74	)
Settlements^(a)		(11	)		(9	)		(33	)		—			—			—			(44	)		(9	)
Foreign exchange rate changes		—			—			(169	)		(120	)		—			—			(169	)		(120	)
Amendments, transfers and other^(c)		—			21			—			48			—			—			—			69

Fair value of plan assets, end of the year		287			302			1,080			1,204			—			—			1,367			1,506

Funded status	$	(109	)	$	(80	)	$	(121	)	$	(68	)	$	(126	)	$	(133	)	$	(356	)	$	(281	)

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

^(b)

Fiscal 2016 actuarial losses for the Company’s pension plans are primarily related to the reduction in discount rates used in measuring plan obligations as of June 30, 2016. Fiscal 2016 actuarial gains related to postretirement benefits primarily relate to favorable changes in plan demographics. Fiscal 2015 actuarial losses for domestic pension plans are primarily related to the strengthening of the mortality tables utilized in measuring plan obligations as of June 30, 2015. Fiscal 2015 actuarial losses for foreign pension plans are primarily related to changes in the discount rate utilized in measuring the plan obligations as of June 30, 2015. Fiscal 2015 actuarial gains related to postretirement benefits primarily relate to changes in plan demographics.

^(c)	For fiscal 2015, the increase in the Company’s pension benefit obligation and plan assets relates to the acquisition of Harlequin and the assumption of Harlequin’s defined benefit pension plans which resulted in an increase in the Company’s net pension liability of approximately $15 million.

Schedule of Amounts Recognized in Accumulated Other Comprehensive (Loss) Income

Amounts recognized in Accumulated other comprehensive (loss) income consist of:


	Pension Benefits								Postretirement Benefits						Total
	Domestic				Foreign				Postretirement Benefits						Total
	As of June 30,
	2016		2015		2016		2015		2016			2015			2016			2015
	(in millions)
Actuarial losses (gains)	$	158	$	131	$	452	$	439	$	2		$	4		$	612		$	574
Prior service (benefit) cost		—		—		—		—		(34	)		(41	)		(34	)		(41	)

Net amounts recognized	$	158	$	131	$	452	$	439	$	(32	)	$	(37	)	$	578		$	533

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

Amounts in Accumulated other comprehensive (loss) income expected to be recognized as a component of net periodic pension cost in fiscal 2017:


	Pension Benefits				Postretirement Benefits			Total
	Domestic		Foreign		Postretirement Benefits			Total
	As of June 30, 2016
	(in millions)
Actuarial losses (gains)	$	5	$	17	$	—		$	22
Prior service (benefit) cost		—		—		(4	)		(4	)

Net amounts recognized	$	5	$	17	$	(4	)	$	18

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,
	2016		2015		2016		2015		2016		2015
	(in millions)
Projected benefit obligation	$	383	$	370	$	13	$	12	$	396	$	382
Accumulated benefit obligation		383		368		13		12		396		380
Fair value of plan assets		287		302		—		—		287		302

	Foreign Pension Benefits
	Funded Plans				Unfunded Plans				Total
	As of June 30,
	2016		2015		2016		2015		2016		2015
	(in millions)
Projected benefit obligation	$	1,131	$	1,198	$	70	$	74	$	1,201	$	1,272
Accumulated benefit obligation		1,122		1,185		70		74		1,192		1,259
Fair value of plan assets		1,080		1,204		—		—		1,080		1,204

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				Total
	As of June 30,
	2016		2015		2016		2015		2016		2015
	(in millions)
Projected benefit obligation	$	821	$	550	$	70	$	74	$	891	$	624
Accumulated benefit obligation		821		549		70		74		891		623
Fair value of plan assets		773		525		—		—		773		525

Schedule of Components of Net Periodic Benefits Costs

The components of net periodic benefits costs were as follows:


	Pension Benefits
	Domestic									Foreign									Postretirement Benefits									Total
	For the fiscal years ended June 30,
	2016			2015			2014			2016			2015			2014			2016			2015			2014			2016			2015			2014
	(in millions)
Service cost benefits earned during the period	$	—		$	1		$	4		$	10		$	11		$	12		$	—		$	—		$	1		$	10		$	12		$	17
Interest costs on projected benefit obligations		17			17			16			44			49			51			5			6			7			66			72			74
Expected return on plan assets		(19	)		(22	)		(17	)		(62	)		(71	)		(76	)		—			—			—			(81	)		(93	)		(93	)
Amortization of deferred losses		4			3			4			14			13			12			—			—			(1	)		18			16			15
Amortization of prior service costs		—			—			—			—			—			—			(7	)		(13	)		(13	)		(7	)		(13	)		(13	)
Settlements, curtailments and other		—			2			4			2			—			3			—			—			—			2			2			7

Net periodic benefits costs- Total	$	2		$	1		$	11		$	8		$	2		$	2		$	(2	)	$	(7	)	$	(6	)	$	8		$	(4	)	$	7

Schedule of Assumptions Used


	Pension Benefits
	Domestic									Foreign									Postretirement Benefits
	For the fiscal years ended June 30,
	2016			2015			2014			2016			2015			2014			2016			2015			2014
Additional information:
Weighted-average assumptions used to determine benefit obligations
Discount rate		3.7	%		4.5	%		4.5	%		2.9	%		3.7	%		4.2	%		3.4	%		4.2	%		4.0	%
Rate of increase in future compensation		N/A			3.0	%		N/A			2.7	%		2.9	%		3.6	%		N/A			N/A			N/A

Weighted-average assumptions used to determine net periodic benefit cost
Discount rate		4.5	%		4.5	%		5.0	%		3.7	%		4.2	%		4.5	%		4.2	%		4.0	%		4.7	%
Expected return on plan assets		6.5	%		7.0	%		7.0	%		5.5	%		6.2	%		6.8	%		N/A			N/A			N/A
Rate of increase in future compensation		3.0	%		3.0	%		5.3	%		2.9	%		3.6	%		3.7	%		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 2016			Fiscal 2015
Health care cost trend rate		6.7	%		6.6	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		4.5	%		4.6	%
Year that the rate reaches the ultimate trend rate		2028			2027

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 2016:


	Service and Interest Costs		Benefit Obligation
	(in millions)
One percentage point increase	$	1	$	12
One percentage point decrease	$	—	$	(11	)

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		Total
	Domestic		Foreign		Postretirement Benefits		Total
	(in millions)
Fiscal year:
2017	$	24		47		9	$	80
2018		21		48		9		78
2019		20		50		9		79
2020		20		53		9		82
2021		21		54		9		84
2022-2026		107		292		41		440

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, 2016 and 2015:


	As of June 30, 2016										As of June 30, 2015
	Total		Fair Value Measurements at Reporting Date Using										Fair Value Measurements at Reporting Date Using
Description	Total		Level 1		Level 2		Level 3		NAV		Total		Level 1		Level 2		Level 3		NAV
	(in millions)
Assets
Short-term investments	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Pooled funds:^(a)
Money market funds		—		—		—		—		—		4		—		4		—		—
Domestic equity funds		81		—		—		—		81		88		—		—		—		88
International equity funds		244		—		—		—		244		312		—		—		—		312
Domestic fixed income funds		160		—		—		—		160		162		—		—		—		162
International fixed income funds		618		—		—		—		618		585		—		—		—		585
Balanced funds		251		—		57		—		194		337		—		73		—		264
Other		13		2		—		11		—		18		6		—		12		—

Total	$	1,367	$	2	$	57	$	11	$	1,297	$	1,506	$	6	$	77	$	12	$	1,411

^(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, 2016 and 2015:


	Level 3 Investments
	(in millions)
Balance, June 30, 2014	$	12
Actual return on plan assets:
Relating to assets still held at end of period		1
Relating to assets sold during the period		—
Purchases, sales, settlements and issuances		(1	)
Transfers in and out of Level 3		—

Balance, June 30, 2015	$	12
Actual return on plan assets:
Relating to assets still held at end of period		—
Relating to assets sold during the period		—
Purchases, sales, settlements and issuances		(1	)
Transfers in and out of Level 3		—

Balance, June 30, 2016	$	11

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,
	2016			2015
Asset Category:
Equity securities		26	%		29	%
Debt securities		62	%		55	%
Cash and other		12	%		16	%

Total		100	%		100	%