XML 63 R49.htm IDEA: XBRL DOCUMENT v3.22.2
Retirement Benefit Obligations (Tables)
 12 Months Ended
Jun. 30, 2022
Retirement Benefits [Abstract]  
Schedule of Amounts Recognized in Balance Sheets The Company recognized these amounts in the Balance Sheets at June 30, 2022 and 2021 as follows:
Pension Benefits
DomesticForeignPostretirement
benefits		Total
20222021202220212022202120222021
(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)
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
DomesticForeignPostretirement
Benefits		Total
As of June 30,
20222021202220212022202120222021
(in millions)
Projected benefit obligation, beginning of the year
$339 $353 $1,124 $1,051 $86 $109 $1,549 $1,513 
Service cost— — 1 2 — — 1 2 
Interest cost7 7 17 16 1 2 25 25 
Benefits paid(18)(18)(43)(45)(7)(8)(68)(71)
Settlements(a)
(12)(12)(12)(10)— — (24)(22)
Actuarial (gain) loss(b)
(56)9 (216)(18)(11)(1)(283)(10)
Foreign exchange rate changes— — (116)128 (1)1 (117)129 
Amendments, transfers and other
— — — — — (17)— (17)
Projected benefit obligation, end of the year
260 339 755 1,124 68 86 1,083 1,549 
Change in the fair value of plan assets for the Company’s benefit plans:
Fair value of plan assets, beginning of the year
285 258 1,162 1,061 — — 1,447 1,319 
Actual return on plan assets(49)36 (166)12 — — (215)48 
Employer contributions14 21 15 14 — — 29 35 
Benefits paid(18)(18)(43)(45)— — (61)(63)
Settlements(a)
(12)(12)(12)(10)— — (24)(22)
Foreign exchange rate changes— — (125)130 — — (125)130 
Fair value of plan assets, end of the year
220 285 831 1,162 — — 1,051 1,447 
Funded status$(40)$(54)$76 $38 $(68)$(86)$(32)$(102)
________________________
(a)Amounts related to payments made to former employees of the Company in full settlement of their pension benefits.
(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.
Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss
Amounts recognized in Accumulated other comprehensive loss consist of:
Pension Benefits
DomesticForeignPostretirement
Benefits		Total
As of June 30,
20222021202220212022202120222021
(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 
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 PlansUnfunded PlansTotal
As of June 30,
202220212022202120222021
(in millions)
Projected benefit obligation$253 $330 $7 $9 $260 $339 
Accumulated benefit obligation253 330 7 9 260 339 
Fair value of plan assets220 285 — — 220 285 
Foreign Pension Benefits
Funded PlansUnfunded PlansTotal
As of June 30,
202220212022202120222021
(in millions)
Projected benefit obligation$701 $1,043 $54 $81 $755 $1,124 
Accumulated benefit obligation697 1,037 54 81 751 1,118 
Fair value of plan assets831 1,162 — — 831 1,162 
Schedule of Accumulated Benefit Obligation Exceeds Fair Value of Plan Assets
The accumulated benefit obligation exceeds the fair value of plan assets for all domestic pension plans.
Below is information about foreign pension plans in which the accumulated benefit obligation exceeds the fair value of the plan assets:
Foreign Pension Benefits
Funded PlansUnfunded PlansTotal
As of June 30,
202220212022202120222021
(in millions)
Projected benefit obligation$49 $59 $54 $81 $103 $140 
Accumulated benefit obligation49 59 54 81 103 140 
Fair value of plan assets46 58 — — 46 58 
Schedule of Components of Net Periodic Benefits Costs (Income) 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,
202220212020202220212020202220212020202220212020
(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 
Schedule of Assumptions Used
Pension Benefits
Domestic
Foreign
Postretirement Benefits
For the fiscal years ended June 30,
202220212020202220212020202220212020
Additional information:
Weighted-average assumptions used to determine benefit obligations
Discount rate4.9 %2.9 %2.9 %3.9 %1.9 %1.7 %4.6 %2.4 %2.5 %
Rate of increase in future compensationN/AN/AN/A3.9 %3.6 %3.1 %N/AN/AN/A
Weighted-average assumptions used to determine net periodic benefit cost
Discount rate for PBO2.9 %2.9 %3.6 %1.9 %1.7 %2.3 %2.4 %2.5 %3.3 %
Discount rate for Service Cost3.3 %3.4 %3.9 %1.8 %1.8 %2.5 %2.8 %2.9 %3.6 %
Discount rate for Interest on PBO2.2 %2.2 %3.2 %1.6 %1.5 %2.0 %1.7 %1.8 %2.9 %
Expected return on plan assets5.8 %5.5 %6.0 %3.3 %3.3 %4.2 %N/AN/AN/A
Rate of increase in future compensationN/AN/AN/A3.6 %3.1 %3.4 %N/AN/AN/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 2022Fiscal 2021
Health care cost trend rate6.4 %6.6 %
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)4.5 %4.7 %
Year that the rate reaches the ultimate trend rate20302030
Schedule of Expected Benefit Payments 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:
Expected Benefit Payments
Pension BenefitsPostretirement
Benefits		Total
DomesticForeign
(in millions)
Fiscal year:
2023$21 $50 $8 $79 
202420 47 7 74 
202519 46 7 72 
202619 44 6 69 
202720 44 6 70 
2028-203292 220 25 337 
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, 2022 and 2021:
Fiscal 2022Fiscal 2021
Fair Value Measurements at
Reporting Date Using		Fair Value Measurements at
Reporting Date Using
TotalLevel 1Level 2Level 3NAVTotalLevel 1Level 2Level 3NAV
(in millions)
Assets
Pooled funds:(a)
Domestic equity funds$37 $— $— $— $37 $61 $— $— $— $61 
International equity funds112 — — — 112 199 — — — 199 
Domestic fixed income funds106 — — — 106 144 — — — 144 
International fixed income funds666 — — — 666 882 — — — 882 
Balanced funds46 — 46 — — 67 — 67 — — 
Other84 53 — 7 24 94 53 — 10 31 
Total$1,051 $53 $46 $7 $945 $1,447 $53 $67 $10 $1,317 
________________________
(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, 2022 and 2021:
Level 3
Investments
(in millions)
Balance, June 30, 2020$9 
Actual return on plan assets:
Relating to assets still held at end of period1 
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 
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 Assets
As of June 30,
20222021
Asset Category:
Equity securities15 %19 %
Debt securities75 %73 %
Cash and other10 %8 %
Total100 %100 %