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 status of the plans can change from year to year, but the assets of the funded plans have been sufficient to pay all benefits that came due in each of fiscal 2022, 2021 and 2020.

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 $32 million and $102 million at June 30, 2022 and 2021, respectively. The Company recognized these amounts in the Balance Sheets at June 30, 2022 and 2021 as follows:


	Pension Benefits
	Domestic				Foreign				Postretirement benefits				Total
	2022		2021		2022		2021		2022		2021		2022		2021
	(in millions)
Other non-current assets	$	—	$	—	$	133	$	120	$	—	$	—	$	133	$	120
Other current liabilities	—		(1)		(2)		(2)		(8)		(8)		(10)		(11)
Retirement benefit obligations	(40)		(53)		(55)		(80)		(60)		(78)		(155)		(211)
Net amount recognized	$	(40)	$	(54)	$	76	$	38	$	(68)	$	(86)	$	(32)	$	(102)


	Pension Benefits
	Domestic				Foreign				Postretirement Benefits				Total
	As of June 30,
	2022		2021		2022		2021		2022		2021		2022		2021
	(in millions)
Projected benefit obligation, beginning of the year	$	339	$	353	$	1,124	$	1,051	$	86	$	109	$	1,549	$	1,513
Service cost	—		—		1		2		—		—		1		2
Interest cost	7		7		17		16		1		2		25		25
Benefits paid	(18)		(18)		(43)		(45)		(7)		(8)		(68)		(71)
Settlements(a)	(12)		(12)		(12)		(10)		—		—		(24)		(22)
Actuarial (gain) loss(b)	(56)		9		(216)		(18)		(11)		(1)		(283)		(10)
Foreign exchange rate changes	—		—		(116)		128		(1)		1		(117)		129
Amendments, transfers and other	—		—		—		—		—		(17)		—		(17)
Projected benefit obligation, end of the year	260		339		755		1,124		68		86		1,083		1,549
Change in the fair value of plan assets for the Company’s benefit plans:
Fair value of plan assets, beginning of the year	285		258		1,162		1,061		—		—		1,447		1,319
Actual return on plan assets	(49)		36		(166)		12		—		—		(215)		48
Employer contributions	14		21		15		14		—		—		29		35
Benefits paid	(18)		(18)		(43)		(45)		—		—		(61)		(63)
Settlements(a)	(12)		(12)		(12)		(10)		—		—		(24)		(22)
Foreign exchange rate changes	—		—		(125)		130		—		—		(125)		130
Fair value of plan assets, end of the year	220		285		831		1,162		—		—		1,051		1,447
Funded status	$	(40)	$	(54)	$	76	$	38	$	(68)	$	(86)	$	(32)	$	(102)

(b)Actuarial gains for fiscal 2022 related to domestic and international pension plans and 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, 2022 and 2021, respectively. Actuarial losses for fiscal 2021 related to domestic pension plans primarily relate to the decrease in discount rates used in measuring plan obligations as of June 30, 2021.


	Pension Benefits
	Domestic				Foreign				Postretirement Benefits				Total
	As of June 30,
	2022		2021		2022		2021		2022		2021		2022		2021
	(in millions)
Actuarial losses (gains)	$	126	$	130	$	325	$	403	$	(5)	$	6	$	446	$	539
Prior service cost (benefit)	—		—		7		9		(32)		(36)		(25)		(27)
Net amounts recognized	$	126	$	130	$	332	$	412	$	(37)	$	(30)	$	421	$	512


	Domestic Pension Benefits
	Funded Plans				Unfunded Plans				Total
	As of June 30,
	2022		2021		2022		2021		2022		2021
	(in millions)
Projected benefit obligation	$	253	$	330	$	7	$	9	$	260	$	339
Accumulated benefit obligation	253		330		7		9		260		339
Fair value of plan assets	220		285		—		—		220		285


	Foreign Pension Benefits
	Funded Plans				Unfunded Plans				Total
	As of June 30,
	2022		2021		2022		2021		2022		2021
	(in millions)
Projected benefit obligation	$	701	$	1,043	$	54	$	81	$	755	$	1,124
Accumulated benefit obligation	697		1,037		54		81		751		1,118
Fair value of plan assets	831		1,162		—		—		831		1,162


	Foreign Pension Benefits
	Funded Plans				Unfunded Plans				Total
	As of June 30,
	2022		2021		2022		2021		2022		2021
	(in millions)
Projected benefit obligation	$	49	$	59	$	54	$	81	$	103	$	140
Accumulated benefit obligation	49		59		54		81		103		140
Fair value of plan assets	46		58		—		—		46		58

The Company recorded nil, $(1) million and $7 million in net periodic benefit (income) costs in the Statements of Operations for the fiscal years ended June 30, 2022, 2021 and 2020, 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 benefit (income) costs were as follows:


	Pension Benefits
	Domestic						Foreign						Postretirement Benefits						Total
	For the fiscal years ended June 30,
	2022		2021		2020		2022		2021		2020		2022		2021		2020		2022		2021		2020
	(in millions)
Service cost benefits earned during the period	$	—	$	—	$	—	$	1	$	2	$	2	$	—	$	—	$	—	$	1	$	2	$	2
Interest costs on projected benefit obligations	7		7		11		17		16		20		1		2		3		25		25		34
Expected return on plan assets	(15)		(13)		(16)		(36)		(37)		(43)		—		—		—		(51)		(50)		(59)
Amortization of deferred losses	5		5		5		14		15		11		—		—		—		19		20		16
Amortization of prior service credits	—		—		—		—		—		—		(4)		(4)		(3)		(4)		(4)		(3)
Settlements, curtailments and other	8		5		12		2		1		5		—		—		—		10		6		17
Net periodic benefit (income) costs – Total	$	5	$	4	$	12	$	(2)	$	(3)	$	(5)	$	(3)	$	(2)	$	—	$	—	$	(1)	$	7


	Pension Benefits
	Domestic						Foreign						Postretirement Benefits
	For the fiscal years ended June 30,
	2022		2021		2020		2022		2021		2020		2022		2021		2020
Additional information:
Weighted-average assumptions used to determine benefit obligations
Discount rate	4.9	%	2.9	%	2.9	%	3.9	%	1.9	%	1.7	%	4.6	%	2.4	%	2.5	%
Rate of increase in future compensation	N/A		N/A		N/A		3.9	%	3.6	%	3.1	%	N/A		N/A		N/A
Weighted-average assumptions used to determine net periodic benefit cost
Discount rate for PBO	2.9	%	2.9	%	3.6	%	1.9	%	1.7	%	2.3	%	2.4	%	2.5	%	3.3	%
Discount rate for Service Cost	3.3	%	3.4	%	3.9	%	1.8	%	1.8	%	2.5	%	2.8	%	2.9	%	3.6	%
Discount rate for Interest on PBO	2.2	%	2.2	%	3.2	%	1.6	%	1.5	%	2.0	%	1.7	%	1.8	%	2.9	%
Expected return on plan assets	5.8	%	5.5	%	6.0	%	3.3	%	3.3	%	4.2	%	N/A		N/A		N/A
Rate of increase in future compensation	N/A		N/A		N/A		3.6	%	3.1	%	3.4	%	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 2022										Fiscal 2021
			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	$	37	$	—	$	—	$	—	$	37	$	61	$	—	$	—	$	—	$	61
International equity funds	112		—		—		—		112		199		—		—		—		199
Domestic fixed income funds	106		—		—		—		106		144		—		—		—		144
International fixed income funds	666		—		—		—		666		882		—		—		—		882
Balanced funds	46		—		46		—		—		67		—		67		—		—
Other	84		53		—		7		24		94		53		—		10		31
Total	$	1,051	$	53	$	46	$	7	$	945	$	1,447	$	53	$	67	$	10	$	1,317


	Level 3 Investments
	(in millions)
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
Actual return on plan assets:
Relating to assets still held at end of period	(2)
Relating to assets sold during the period	—
Purchases, sales, settlements and issuances	(1)
Transfers in and out of Level 3	—
Balance, June 30, 2022	$	7

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 17% equity securities, 76% 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 $12 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.