Retirement Benefit Obligations (Tables)

12 Months Ended

Jun. 30, 2017

Schedule of Amounts Recognized in Balance Sheets

The Company recognized these amounts in the Balance Sheets at June 30, 2017 and June 30, 2016 as follows:


	Pension Benefits												Postretirement benefits
	Domestic						Foreign						Postretirement benefits						Total
	As of June 30,
	2017			2016			2017			2016			2017			2016			2017			2016
	(in millions)
Other non-current assets	$	—		$	—		$	17		$	4		$	—		$	—		$	17		$	4
Other current liabilities		—			—			(1	)		(1	)		(9	)		(9	)		(10	)		(10	)
Retirement benefit obligations		(91	)		(109	)		(120	)		(124	)		(108	)		(117	)		(319	)		(350	)

Net amount recognized	$	(91	)	$	(109	)	$	(104	)	$	(121	)	$	(117	)	$	(126	)	$	(312	)	$	(356	)

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												Postretirement Benefits
	Domestic						Foreign						Postretirement Benefits						Total
	As of June 30,
	2017			2016			2017			2016			2017			2016			2017			2016
	(in millions)
Projected benefit obligation, beginning of the year	$	396		$	382		$	1,201		$	1,272		$	126		$	133		$	1,723		$	1,787
Service cost		—			—			9			10			—			—			9			10
Interest cost		12			17			29			44			3			5			44			66
Benefits paid		(23	)		(18	)		(39	)		(55	)		(8	)		(8	)		(70	)		(81	)
Settlements^(a)		(13	)		(11	)		(23	)		(33	)		—			—			(36	)		(44	)
Actuarial loss/(gain)^(b)		(4	)		28			54			153			(3	)		(2	)		47			179
Foreign exchange rate changes		—			—			(15	)		(188	)		—			(2	)		(15	)		(190	)
Plan curtailments		—			(2	)		—			(2	)		—			—			—			(4	)
Amendments, transfers and other		—			—			—			—			(1	)		—			(1	)		—

Projected benefit obligation, end of the year		368			396			1,216			1,201			117			126			1,701			1,723

Change in the fair value of plan assets for the Company’s benefit plans:
Fair value of plan assets, beginning of the year		287			302			1,080			1,204			—			—			1,367			1,506
Actual return on plan assets		23			14			83			107			—			—			106			121
Employer contributions		3			—			23			26			—			—			26			26
Benefits paid		(23	)		(18	)		(39	)		(55	)		—			—			(62	)		(73	)
Settlements^(a)		(13	)		(11	)		(23	)		(33	)		—			—			(36	)		(44	)
Foreign exchange rate changes		—			—			(12	)		(169	)		—			—			(12	)		(169	)
Amendments, transfers and other		—			—			—			—			—			—			—			—

Fair value of plan assets, end of the year		277			287			1,112			1,080			—			—			1,389			1,367

Funded status	$	(91	)	$	(109	)	$	(104	)	$	(121	)	$	(117	)	$	(126	)	$	(312	)	$	(356	)

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

^(b)

Fiscal 2017 actuarial losses for the Company’s foreign pension plans are primarily related to the decrease in discount rates used in measuring plan obligations as of June 30, 2017. Fiscal 2017 actuarial gains related to domestic pension plans primarily relate to the increase in discount rates for the U.S. plans used in measuring plan obligations as of June 30, 2017. 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.

Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss

Amounts recognized in Accumulated other comprehensive loss consist of:


	Pension Benefits								Postretirement Benefits
	Domestic				Foreign				Postretirement Benefits						Total
	As of June 30,
	2017		2016		2017		2016		2017			2016			2017			2016
	(in millions)
Actuarial losses (gains)	$	142	$	158	$	453	$	452	$	(1	)	$	2		$	594		$	612
Prior service (benefit) cost		—		—		—		—		(31	)		(34	)		(31	)		(34	)

Net amounts recognized	$	142	$	158	$	453	$	452	$	(32	)	$	(32	)	$	563		$	578

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

Amounts in Accumulated other comprehensive loss expected to be recognized as a component of net periodic benefit cost in fiscal 2018 consist of:


	Pension Benefits				Postretirement Benefits
	Domestic		Foreign		Postretirement Benefits			Total
	As of June 30, 2017
	(in millions)
Actuarial losses (gains)	$	5	$	17	$	—		$	22
Prior service (benefit) cost		—		—		(3	)		(3	)

Net amounts recognized	$	5	$	17	$	(3	)	$	19

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,
	2017		2016		2017		2016		2017		2016

	(in millions)
Projected benefit obligation	$	354	$	383	$	14	$	13	$	368	$	396
Accumulated benefit obligation		354		383		14		13		368		396
Fair value of plan assets		277		287		—		—		277		287


	Foreign Pension Benefits
	Funded Plans				Unfunded Plans				Total
	As of June 30,
	2017		2016		2017		2016		2017		2016
	(in millions)
Projected benefit obligation	$	1,144	$	1,131	$	72	$	70	$	1,216	$	1,201
Accumulated benefit obligation		1,126		1,122		72		70		1,198		1,192
Fair value of plan assets		1,112		1,080		—		—		1,112		1,080

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,
	2017		2016		2017		2016		2017		2016
	(in millions)
Projected benefit obligation	$	550	$	821	$	72	$	70	$	622	$	891
Accumulated benefit obligation		550		821		72		70		622		891
Fair value of plan assets		509		773		—		—		509		773

Schedule of Components of Net Periodic Benefits Costs (Income)

The components of net periodic benefits costs (income) were as follows:


	Pension Benefits
	Domestic									Foreign									Postretirement Benefits									Total
	For the fiscal years ended June 30,
	2017			2016			2015			2017			2016			2015			2017			2016			2015			2017			2016			2015
	(in millions)
Service cost benefits earned during the period	$	—		$	—		$	1		$	9		$	10		$	11		$	—		$	—		$	—		$	9		$	10		$	12
Interest costs on projected benefit obligations		12			17			17			29			44			49			3			5			6			44			66			72
Expected return on plan assets		(18	)		(19	)		(22	)		(57	)		(62	)		(71	)		—			—			—			(75	)		(81	)		(93	)
Amortization of deferred losses		5			4			3			16			14			13			—			—			—			21			18			16
Amortization of prior service costs		—			—			—			—			—			—			(4	)		(7	)		(13	)		(4	)		(7	)		(13	)
Settlements, curtailments and other		3			—			2			3			2			—			—			—			—			6			2			2

Net periodic benefits costs (income) - Total	$	2		$	2		$	1		$	—		$	8		$	2		$	(1	)	$	(2	)	$	(7	)	$	1		$	8		$	(4	)

Schedule of Assumptions Used


	Pension Benefits
	Domestic									Foreign									Postretirement Benefits
	For the fiscal years ended June 30,
	2017			2016			2015			2017			2016			2015			2017			2016			2015
Additional information:
Weighted-average assumptions used to determine benefit obligations
Discount rate		3.8	%		3.7	%		4.5	%		2.7	%		2.9	%		3.7	%		3.5	%		3.4	%		4.2	%
Rate of increase in future compensation		N/A			N/A			3.0	%		2.8	%		2.7	%		2.9	%		N/A			N/A			N/A
Weighted-average assumptions used to determine net periodic benefit cost
Discount rate for PBO		3.8	%		4.5	%		4.5	%		2.9	%		3.7	%		4.2	%		3.4	%		4.2	%		4.0	%
Discount rate for Service Cost		4.1	%		4.5	%		4.5	%		3.1	%		3.7	%		4.2	%		3.7	%		4.2	%		4.0	%
Discount rate for Interest on PBO		3.0	%		4.5	%		4.5	%		2.5	%		3.7	%		4.2	%		2.6	%		4.2	%		4.0	%
Discount rate for Interest on Service Cost		3.8	%		4.5	%		4.5	%		2.9	%		3.7	%		4.2	%		3.2	%		4.2	%		4.0	%
Expected return on plan assets		6.5	%		6.5	%		7.0	%		5.5	%		5.5	%		6.2	%		N/A			N/A			N/A
Rate of increase in future compensation		N/A			3.0	%		3.0	%		2.7	%		2.9	%		3.6	%		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 2017			Fiscal 2016
Health care cost trend rate		6.8	%		6.7	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		4.6	%		4.5	%
Year that the rate reaches the ultimate trend rate		2027			2028

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 2017:


	Service and Interest Costs		Benefit Obligation
	(in millions)
One percentage point increase	$	—	$	3
One percentage point decrease	$	—	$	(2	)

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		Total
	(in millions)
Fiscal year:
2018	$	24	$	51	$	9	$	84
2019		21		48		9		78
2020		21		51		9		81
2021		21		52		9		82
2022		21		55		9		85
2023-2027		105		280		38		423

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, 2017 and 2016:


	As of June 30, 2017										As of June 30, 2016
			Fair Value Measurements at Reporting Date Using										Fair Value Measurements at Reporting Date Using
	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		1		—		1		—		—		—		—		—		—		—
Domestic equity funds		78		—		—		—		78		81		—		—		—		81
International equity funds		196		—		—		—		196		244		—		—		—		244
Domestic fixed income funds		151		—		—		—		151		160		—		—		—		160
International fixed income funds		642		—		—		—		642		618		—		—		—		618
Balanced funds		255		—		182		—		73		251		—		188		—		63
Other		66		55		—		11		—		13		2		—		11		—

Total	$	1,389	$	55	$	183	$	11	$	1,140	$	1,367	$	2	$	188	$	11	$	1,166

^(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, 2017 and 2016:


	Level 3 Investments
	(in millions)
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
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		—
Transfers in and out of Level 3		—

Balance, June 30, 2017	$	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,
	2017			2016
Asset Category:
Equity securities		22	%		26	%
Debt securities		62	%		62	%
Cash and other		16	%		12	%

Total		100	%		100	%