The Company’s employees participate in various defined benefit pension and postretirement plans sponsored by the Company and its subsidiaries. Plans in the U.S., U.K., Australia, and other foreign plans are accounted for as defined benefit pension plans. Accordingly, the funded and unfunded position of each plan is recorded in the Balance Sheets. Actuarial gains and losses that have not yet been recognized through net income are recorded in Accumulated other comprehensive loss, net of taxes, until they are amortized as a component of net periodic benefit cost. The determination of benefit obligations and the recognition of expenses related to the plans are dependent on various assumptions. The major assumptions primarily relate to discount rates, expected long-term rates of return on plan assets and mortality rates. Management develops each assumption using relevant company experience in conjunction with market-related data for each individual country in which such plans exist. The funded

The Company uses a June 30 measurement date for all pension and postretirement benefit plans. The combined domestic and foreign pension and postretirement benefit plans resulted in a net pension and postretirement benefits liability of $102 million and $194 million at June 30, 2021 and 2020, respectively. The Company recognized these amounts in the Balance Sheets at June 30, 2021 and 2020 as follows:


	Pension Benefits
	Domestic				Foreign				Postretirement benefits				Total
	2021		2020		2021		2020		2021		2020		2021		2020
	(in millions)
Other non-current assets	$	—	$	—	$	120	$	94	$	—	$	—	$	120	$	94
Other current liabilities	(1)		—		(2)		(2)		(8)		(9)		(11)		(11)
Retirement benefit obligations	(53)		(95)		(80)		(82)		(78)		(100)		(211)		(277)
Net amount recognized	$	(54)	$	(95)	$	38	$	10	$	(86)	$	(109)	$	(102)	$	(194)


	Pension Benefits
	Domestic				Foreign				Postretirement Benefits				Total
	As of June 30,
	2021		2020		2021		2020		2021		2020		2021		2020
	(in millions)
Projected benefit obligation, beginning of the year	$	353	$	350	$	1,051	$	1,025	$	109	$	109	$	1,513	$	1,484
Service cost	—		—		2		2		—		—		2		2
Interest cost	7		11		16		20		2		3		25		34
Benefits paid	(18)		(17)		(45)		(39)		(8)		(8)		(71)		(64)
Settlements(a)	(12)		(30)		(10)		(27)		—		—		(22)		(57)
Actuarial loss (gain)(b)	9		39		(18)		102		(1)		5		(10)		146
Foreign exchange rate changes	—		—		128		(32)		1		—		129		(32)
Amendments, transfers and other	—		—		—		—		(17)		—		(17)		—
Projected benefit obligation, end of the year	339		353		1,124		1,051		86		109		1,549		1,513
Change in the fair value of plan assets for the Company’s benefit plans:
Fair value of plan assets, beginning of the year	258		263		1,061		1,062		—		—		1,319		1,325
Actual return on plan assets	36		25		12		85		—		—		48		110
Employer contributions	21		17		14		13		—		—		35		30
Benefits paid	(18)		(17)		(45)		(39)		—		—		(63)		(56)
Settlements(a)	(12)		(30)		(10)		(27)		—		—		(22)		(57)
Foreign exchange rate changes	—		—		130		(33)		—		—		130		(33)
Fair value of plan assets, end of the year	285		258		1,162		1,061		—		—		1,447		1,319
Funded status	$	(54)	$	(95)	$	38	$	10	$	(86)	$	(109)	$	(102)	$	(194)

(a)Amounts related to payments made to former employees of the Company in full settlement of their deferred pension benefits. The U.S. plan settlements in fiscal 2021 and fiscal 2020 are primarily the result of the disposition of the Company's News America Marketing business in May 2020.

(b)Actuarial losses for fiscal 2021 related to domestic pension plans and for fiscal 2020 related to domestic and foreign pension plans primarily relate to the decrease in discount rates used in measuring plan obligations as of June 30, 2021 and 2020, respectively. Actuarial gains for fiscal 2021 related to international pension plans primarily relate to the increase in discount rates used in measuring plan obligations as of June 30, 2021.


	Pension Benefits
	Domestic				Foreign				Postretirement Benefits				Total
	As of June 30,
	2021		2020		2021		2020		2021		2020		2021		2020
	(in millions)
Actuarial losses	$	130	$	153	$	403	$	368	$	6	$	6	$	539	$	527
Prior service cost (benefit)	—		—		9		8		(36)		(22)		(27)		(14)
Net amounts recognized	$	130	$	153	$	412	$	376	$	(30)	$	(16)	$	512	$	513


	Domestic Pension Benefits
	Funded Plans				Unfunded Plans				Total
	As of June 30,
	2021		2020		2021		2020		2021		2020
	(in millions)
Projected benefit obligation	$	330	$	343	$	9	$	10	$	339	$	353
Accumulated benefit obligation	330		343		9		10		339		353
Fair value of plan assets	285		258		—		—		285		258


	Foreign Pension Benefits
	Funded Plans				Unfunded Plans				Total
	As of June 30,
	2021		2020		2021		2020		2021		2020
	(in millions)
Projected benefit obligation	$	1,043	$	978	$	81	$	73	$	1,124	$	1,051
Accumulated benefit obligation	1,037		971		81		73		1,118		1,044
Fair value of plan assets	1,162		1,061		—		—		1,162		1,061


	Foreign Pension Benefits
	Funded Plans				Unfunded Plans				Total
	As of June 30,
	2021		2020		2021		2020		2021		2020
	(in millions)
Projected benefit obligation	$	59	$	259	$	81	$	73	$	140	$	332
Accumulated benefit obligation	59		259		81		73		140		332
Fair value of plan assets	58		249		—		—		58		249

The Company recorded $(1) million, $7 million and $(2) million in net periodic benefit (income) costs in the Statements of Operations for the fiscal years ended June 30, 2021, 2020 and 2019, respectively. The Company utilizes the full yield-curve approach to estimate the service and interest cost components of net periodic benefit (income) costs for its pension and other postretirement benefit plans.

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


	Pension Benefits
	Domestic						Foreign						Postretirement Benefits						Total
	For the fiscal years ended June 30,
	2021		2020		2019		2021		2020		2019		2021		2020		2019		2021		2020		2019
	(in millions)
Service cost benefits earned during the period	$	—	$	—	$	—	$	2	$	2	$	2	$	—	$	—	$	—	$	2	$	2	$	2
Interest costs on projected benefit obligations	7		11		13		16		20		25		2		3		4		25		34		42
Expected return on plan assets	(13)		(16)		(15)		(37)		(43)		(46)		—		—		—		(50)		(59)		(61)
Amortization of deferred losses	5		5		4		15		11		10		—		—		—		20		16		14
Amortization of prior service credits	—		—		—		—		—		—		(4)		(3)		(3)		(4)		(3)		(3)
Settlements, curtailments and other	5		12		—		1		5		4		—		—		—		6		17		4
Net periodic benefit (income) costs – Total	$	4	$	12	$	2	$	(3)	$	(5)	$	(5)	$	(2)	$	—	$	1	$	(1)	$	7	$	(2)


	Pension Benefits
	Domestic						Foreign						Postretirement Benefits
	For the fiscal years ended June 30,
	2021		2020		2019		2021		2020		2019		2021		2020		2019
Additional information:
Weighted-average assumptions used to determine benefit obligations
Discount rate	2.9	%	2.9	%	3.6	%	1.9	%	1.7	%	2.3	%	2.4	%	2.5	%	3.3	%
Rate of increase in future compensation	N/A		N/A		N/A		3.6	%	3.1	%	3.4	%	N/A		N/A		N/A
Weighted-average assumptions used to determine net periodic benefit cost
Discount rate for PBO	2.9	%	3.6	%	4.2	%	1.7	%	2.3	%	2.8	%	2.5	%	3.3	%	4.0	%
Discount rate for Service Cost	3.4	%	3.9	%	4.3	%	1.8	%	2.5	%	3.7	%	2.9	%	3.6	%	4.3	%
Discount rate for Interest on PBO	2.2	%	3.2	%	3.9	%	1.5	%	2.0	%	2.5	%	1.8	%	2.9	%	3.6	%
Discount rate for Interest on Service Cost	2.9	%	3.6	%	4.3	%	1.3	%	2.2	%	3.3	%	2.3	%	3.3	%	4.1	%
Expected return on plan assets	5.5	%	6.0	%	6.0	%	3.3	%	4.2	%	4.4	%	N/A		N/A		N/A
Rate of increase in future compensation	N/A		N/A		N/A		3.1	%	3.4	%	3.1	%	N/A		N/A		N/A

The following table sets forth the estimated benefit payments for the next five fiscal years, and in aggregate for the five fiscal years thereafter. 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:

The Company applies the provisions of ASC 715, which requires disclosures including: (i) investment policies and strategies; (ii) the major categories of plan assets; (iii) the inputs and valuation techniques used to measure plan assets; (iv) the effect of fair value measurements using significant unobservable inputs on changes in plan assets for the period; and (v) significant concentrations of risk within plan assets.


			Fiscal 2021										Fiscal 2020
			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
Pooled funds:(a)
Domestic equity funds	$	61	$	—	$	—	$	—	$	61	$	60	$	—	$	—	$	—	$	60
International equity funds	199		—		—		—		199		186		—		—		—		186
Domestic fixed income funds	144		—		—		—		144		145		—		—		—		145
International fixed income funds	882		—		—		—		882		720		—		—		—		720
Balanced funds	67		—		67		—		—		130		—		65		—		65
Other	94		53		—		10		31		78		59		—		9		10
Total	$	1,447	$	53	$	67	$	10	$	1,317	$	1,319	$	59	$	65	$	9	$	1,186


	Level 3 Investments
	(in millions)
Balance, June 30, 2019	$	9
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, 2020	$	9
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	—
Transfers in and out of Level 3	—
Balance, June 30, 2021	$	10

The Company’s investment strategy for its pension plans is to maximize the long-term rate of return on plan assets within an acceptable level of risk in order to minimize the cost of providing pension benefits while maintaining adequate funding levels. The Company’s practice is to conduct a periodic strategic review of its asset allocation. The Company’s current broad strategic targets are to have a pension asset portfolio comprised of 20% equity securities, 73% fixed income securities and 7% in cash and other investments. In developing the expected long-term rate of return, the Company considered the pension asset portfolio’s past average rate of returns and future return expectations of the various asset classes. A portion of the other allocation is reserved in cash to provide for expected benefits to be paid in the short term. The Company’s equity portfolios are managed in such a way as to achieve optimal diversity. The Company’s fixed income portfolio is investment grade in the aggregate. The Company does not manage any assets internally.

Required pension plan contributions for the next fiscal year are expected to be approximately $15 million; however, actual contributions may be affected by pension asset and liability valuation changes during the year. The Company will continue to make voluntary contributions as necessary to improve funded status.