Pension and Other Postretirement Benefits (Tables)

12 Months Ended

Jun. 30, 2020

Compensation And Retirement Disclosure [Abstract]

Schedule of Projected Benefit Obligation, Changes in Fair Value of Plan Assets and Funded Status

The Company uses a June 30 measurement date for all Direct Plans. The following table sets forth the change in the projected benefit obligation, change in the fair value of plan assets and funded status for the Company’s Direct Plans:

	Pension benefits						Postretirement benefits
	As of June 30,
	2020			2019			2020			2019
	(in millions)
Projected benefit obligation, beginning of the year	$	1,255		$	322		$	103		$	-
Service cost		35			19			2			1
Interest cost		39			30			3			2
Benefits paid		(21	)		(17	)		(3	)		(1	)
Settlements(a)		(45	)		(16	)		-			-
Actuarial losses (gains)(b)		145			148			(1	)		4
Liabilities assumed from 21CF		-			765			-			98
Other		1			4			-			(1	)
Projected benefit obligation, end of the year		1,409			1,255			104			103
Change in the fair value of plan assets for the    Company's benefit plans:
Fair value of plan assets, beginning of the year		800			70			-			-
Actual return on plan assets		24			50			-			-
Employer contributions		30			83			3			1
Benefits paid		(21	)		(17	)		(3	)		(1	)
Settlements(a)		(45	)		(16	)		-			-
Assets received from 21CF		-			630			-			-
Fair value of plan assets, end of the year		788			800			-			-
Funded status(c)	$	(621	)	$	(455	)	$	(104	)	$	(103	)
Grantor Trust assets(c)	$	247		$	249		$	-		$	-

^(a) Represents the full settlement of former employees deferred pension benefit obligations through lump sum payments.

^(b) The actuarial losses (gains) for June 30, 2020 and 2019 were mainly due to a change in the discount rate assumption utilized in measuring plan obligations.

^(c) The Company has established an irrevocable grantor trust (the “Grantor Trust”), administered by an independent trustee, with the intention of making cash contributions to the Trust to fund certain future pension benefit obligations of the Company. The assets in the Grantor Trust are unsecured funds of the Company and can be used to satisfy the Company’s obligations in the event of bankruptcy or insolvency.

Schedule of Amounts Recognized in Balance Sheet

Amounts recognized in the Balance Sheets consist of:

	Pension benefits						Postretirement benefits
	As of June 30,
	2020			2019			2020			2019
	(in millions)
Accrued pension liabilities	$	(621	)	$	(455	)	$	(104	)	$	(103	)
Net amount recognized	$	(621	)	$	(455	)	$	(104	)	$	(103	)

Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss

Amounts recognized in Accumulated other comprehensive loss, before tax, consist of:

	Pension benefits				Postretirement benefits
	As of June 30,
	2020		2019		2020		2019
	(in millions)
Actuarial losses	$	533	$	385	$	20	$	22
Prior service cost		3		3		-		-
Net amounts recognized	$	536	$	388	$	20	$	22

Schedule of Accumulated and Projected Benefit Obligations

Accumulated pension benefit obligations as of June 30, 2020 and 2019 were $1,273 million and $1,113 million, respectively. For the funded plans, the projected benefit obligation and accumulated benefit obligation exceeds the fair value of the plan assets. Information about funded and unfunded pension plans is presented below:

	Funded plans				Unfunded plans
	As of June 30,
	2020		2019		2020			2019
	(in millions)
Projected benefit obligation	$	1,096	$	976	$	313		$	279
Accumulated benefit obligation		971		842		302			271
Fair value of plan assets		788		800		-	(a)		-	(a)

^(a) The fair value of the assets in the Grantor Trust as of June 30, 2020 and 2019 was $247 million and $249 million, respectively.

Schedule of Components of Periodic Benefit Costs

The components of periodic benefit costs were as follows:

	Pension benefits									Postretirement benefits
	For the years ended June 30,
	2020			2019			2018			2020		2019			2018
	(in millions)
Service cost benefits earned during the period	$	35		$	19		$	2		$	2	$	1		$	-
Interest costs on projected benefit obligations		39			30			10			3		2			-
Expected return on plan assets		(55	)		(30	)		(5	)		-		-			-
Amortization of deferred losses		28			11			3			1		1			-
Other		1			7			1			-		(1	)		-
Net periodic benefit costs- Direct plans		48			37			11			6		3			-
Shared Plans		-			14			33			-		4			7
Net periodic benefit costs- Total		48			51			44			6		7			7
Settlement loss
Direct Plans		-			-			4			-		-			-
Shared Plans		-			-			49			-		-			-
Total periodic benefit costs	$	48		$	51		$	97		$	6	$	7		$	7

Schedule of Assumptions Used

	Pension benefits									Postretirement benefits
	For the years ended June 30,
	2020			2019			2018			2020			2019			2018
Additional information
Weighted-average assumptions used to determine benefit obligations
Discount rate		2.8	%		3.6	%		4.2	%		2.8	%		3.6	%	N/A
Weighted-average assumptions used to determine net periodic benefit costs
Discount rate for service cost		3.7	%		4.6	%		4.1	%		3.8	%		4.4	%	N/A
Discount rate for interest cost		3.2	%		4.1	%		3.1	%		3.2	%		3.9	%	N/A
Expected return on plan assets		7.0	%		7.0	%		7.0	%	N/A			N/A			N/A

N/A – not applicable.

Schedule of Assumed 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 2020			Fiscal 2019
Health care cost trend rate		7.3	%		7.8	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		4.5	%		4.5	%
Year that the rate reaches the ultimate trend rate	2039			2039

Schedule of Expected Estimated Benefit Payments

The following table sets forth the estimated benefit payments and estimated settlements for the next five fiscal years and in aggregate for the five fiscal years thereafter. These payments 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
	(in millions)
Fiscal year
2021	$	61	$	4
2022		58		5
2023		58		5
2024		60		5
2025		62		5
2026-2030		346		26

Schedule of Plan Assets and Grantor Trust Assets by Level within Fair Value Hierarchy

The Company has established the Grantor Trust to satisfy the Company’s unfunded pension obligations. The table below presents the Company’s plan assets and the Grantor Trust assets by level within the fair value hierarchy, as described in Note 6—Fair Value, as of June 30, 2020 and 2019:

	As of June 30, 2020
			Fair value measurements at reporting date using					Assets measured
	Total		Level 1			Level 2		at NAV(a)
	(in millions)
PENSION PLAN ASSETS
Pooled funds(b)
Money market funds	$	33	$	-		$	33	$	-
Domestic equity funds		73		73			-		-
Domestic fixed income funds		3		3			-		-
International equity funds		119		119			-		-
International fixed income funds		29		1			-		28
Balanced funds		181		114			-		67
Common stocks(c)
U.S. common stocks		144		144			-		-
Government and Agency obligations(d)
Domestic government obligations		19		-			19		-
Domestic agency obligations		24		-			24		-
Corporate obligations(d)		50		-			50		-
Partnership interests		13		-			-		13
Exchange traded funds(c)		70		70			-		-
Other(e)		30		(10	)		40		-
Total fair value of plan assets	$	788	$	514		$	166	$	108
GRANTOR TRUST ASSETS
Balanced funds(b)	$	214	$	214		$	-	$	-
Partnership interests		13		-			-		13
Other(e)		20		20			-		-
Total fair value of Grantor Trust assets	$	247	$	234		$	-	$	13

	As of June 30, 2019
			Fair value measurements at reporting date using					Assets measured
	Total		Level 1			Level 2		at NAV(a)
	(in millions)
PENSION PLAN ASSETS
Pooled funds(b)
Money market funds	$	83	$	-		$	83	$	-
Domestic equity funds		72		72			-		-
International equity funds		132		132			-		-
International fixed income funds		39		-			-		39
Balanced funds		198		136			-		62
Common stocks(c)
U.S. common stocks		131		131			-		-
Government and Agency obligations(d)
Domestic government obligations		17		-			17		-
Domestic agency obligations		12		-			12		-
Corporate obligations(d)		44		-			44		-
Partnership interests		13		-			-		13
Exchange traded funds(c)		32		32			-		-
Other(e)		27		(3	)		30		-
Total fair value of plan assets	$	800	$	500		$	186	$	114
GRANTOR TRUST ASSETS
Balanced funds(b)	$	213	$	213		$	-	$	-
Partnership interests		15		-			-		15
Other(e)		21		21			-		-
Total fair value of Grantor Trust assets	$	249	$	234		$	-	$	15

^(a) As a practical expedient, pooled funds are valued at the net asset value (“NAV”) provided by the fund issuer and partnership interests are based on the fair value obtained from the general partner.

^(b) Open-ended pooled funds that are registered and/or available to the general public are valued at the daily published NAV.

^(c) Common stock investments that are publicly traded and exchange traded funds are valued at the closing price reported on active markets in which the securities are traded.

^(d) The fair value of corporate, government and agency obligations are valued based on a compilation of primary observable market information or a broker quote in a non-active market.

^(e) Includes cash and cash equivalents, plan receivables and payables and certain other fixed income investments.

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,
	2020			2019
Asset Category
Equity securities		51	%		47	%
Fixed income securities		21			18
Other, including cash		28			35
Total		100	%		100	%