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Pension and Other Postretirement Benefits (Tables)
 12 Months Ended
Jun. 30, 2023
Retirement Benefits [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 pension and postretirement benefit 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 pension and postretirement benefit plans:
Pension benefits Postretirement benefits
As of June 30,
2023202220232022
(in millions)
Projected benefit obligation, beginning of the year$1,203 $1,468 $53 $98 
Service cost30 38 1 1 
Interest cost52 30 2 2 
Benefits paid(22)(22)(4)(4)
Settlements(a)
(32)(56)— — 
Actuarial gains(b)
(58)(256)(5)(46)
Other(1)1 — 2 
Projected benefit obligation, end of the year1,172 1,203 47 53 
Change in the fair value of plan assets for the Company’s benefit plans:
Fair value of plan assets, beginning of the year801 972 — — 
Actual return on plan assets53 (152)— — 
Employer contributions53 59 4 4 
Benefits paid(22)(22)(4)(4)
Settlements(a)
(32)(56)— — 
Fair value of plan assets, end of the year853 801 — — 
Funded status(c)
$(319)$(402)$(47)$(53)
Grantor Trust assets(c)
$276 $270 $— $— 
(a)
Represents the full settlement of former employees’ deferred pension benefit obligations through lump sum payments.
(b)
Actuarial gains for June 30, 2023 and June 30, 2022 were primarily 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,
2023202220232022
(in millions)
Pension assets$8 $6 $— $— 
Accrued pension liabilities(327)(408)(47)(53)
Net amounts recognized$(319)$(402)$(47)$(53)
Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss
Amounts recognized in Accumulated other comprehensive loss, before tax, consist of:
Pension benefitsPostretirement benefits
As of June 30,
2023202220232022
(in millions)
Actuarial losses (gains)$228 $322 $(34)$(33)
Prior service cost1 3 — — 
Net amounts recognized$229 $325 $(34)$(33)
Schedule of Accumulated and Projected Benefit Obligations and Fair Value of Plan Assets for Funded and Unfunded Pension Plans Information about funded and unfunded pension plans is presented below:
Funded plansUnfunded plans
As of June 30,
2023202220232022
(in millions)
Projected benefit obligation$901 $930 $271 $273 
Accumulated benefit obligation777 801 267 268 
Fair value of plan assets853 801 — 
(a)
— 
(a)
(a)
The fair value of the assets in the Grantor Trust as of June 30, 2023 and 2022 was $276 million and $270 million, respectively.
Schedule of Accumulated Benefit Obligation in Excess of Plan Assets
Information about funded and unfunded pension plans in which the accumulated benefit obligation exceeds fair value of the plan assets is presented below:
Funded plansUnfunded plans
As of June 30,
2023202220232022
(in millions)
Projected benefit obligation$— $807 $271 $273 
Accumulated benefit obligation— 
(a)
683 267 268 
Fair value of plan assets— 
(a)
675 — 
(b)
— 
(b)
(a)
As of June 30, 2023, the fair value of plan assets exceeded the accumulated benefit obligation for the funded plans.
(b)
The fair value of the assets in the Grantor Trust as of June 30, 2023 and 2022 was $276 million and $270 million, respectively.
Schedule of Components of Periodic Benefit Costs
The components of net periodic benefit costs were as follows:
Pension benefits Postretirement benefits
For the years ended June 30,
202320222021202320222021
(in millions)
Service cost$30 $38 $38 $1 $1 $2 
Interest cost52 30 30 2 2 2 
Expected return on plan assets(40)(50)(50)— — — 
Amortization of deferred losses23 31 44 (4)1 1 
Other— 3 2 — — — 
Net periodic benefit costs$65 $52 $64 $(1)$4 $5 
Schedule of Assumptions Used
The components of net periodic benefit costs other than the service cost component are included in Other, net in the Statements of Operations.
Pension benefitsPostretirement benefits
For the years ended June 30,
202320222021202320222021
Additional information
Weighted-average assumptions used to determine benefit obligations
Discount rate5.3 %4.8 %2.7 %5.3 %4.8 %2.7 %
Weighted-average assumptions used to determine net periodic benefit costs
Discount rate for service cost4.8 %2.8 %2.9 %4.8 %2.9 %3.0 %
Discount rate for interest cost4.5 %2.1 %2.2 %4.5 %2.2 %2.2 %
Expected return on plan assets5.0 %5.1 %6.5 %N/AN/AN/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 2023
Fiscal 2022
Health care cost trend rate6.1 %5.8 %
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)4.0 %4.0 %
Year that the rate reaches the ultimate trend rate20472047
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
2024$68 $4 
202566 4 
202664 4 
202769 4 
202874 4 
2029-2033409 18 
Schedule of Plan Assets and Grantor Trust Assets by Level within Fair Value Hierarchy The assets are classified by level within the fair value hierarchy, as described in Note 6—Fair Value, as of June 30, 2023 and 2022:
As of June 30, 2023
Fair value measurements at reporting date usingAssets measured
TotalLevel 1
at NAV(a)
(in millions)
PENSION PLAN ASSETS
Pooled funds(b)
Money market funds$18 $18 $— 
Domestic equity funds189 189 — 
Domestic fixed income funds(c)
383 383 — 
International equity funds136 136 — 
Balanced funds78 78 — 
Partnership interests49 — 49 
Total fair value of plan assets$853 $804 $49 
GRANTOR TRUST ASSETS
Pooled funds(b)
Money market funds$20 $20 $— 
Domestic fixed income funds(c)
143 143 — 
Balanced funds
112 112 — 
Other(e)
1 1 — 
Total fair value of Grantor Trust assets$276 $276 $— 
As of June 30, 2022
Fair value measurements at reporting
date using		Assets measured
TotalLevel 1
at NAV(a)
(in millions)
PENSION PLAN ASSETS
Pooled funds(b)
Money market funds$20 $20 $— 
Domestic equity funds82 82 — 
Domestic fixed income funds(c)
381 381 — 
International equity funds133 133 — 
Balanced funds78 78 — 
U.S. common stocks(d)
43 43 — 
Partnership interests33 — 33 
Exchange traded funds(d)
32 32 — 
Other(e)
(1)(1)— 
Total fair value of plan assets$801 $768 $33 
GRANTOR TRUST ASSETS
Balanced funds(b)
$234 $234 $— 
Partnership interests16 — 16 
Other(e)
20 20 — 
Total fair value of Grantor Trust assets$270 $254 $16 
(a)
Investments that are measured at fair value using the net asset value (“NAV”) per share (or its equivalent) as a practical expedient are excluded from the fair value hierarchy disclosure. These investments have monthly liquidity.
(b)
Pooled funds that have a readily determinable fair value are valued at the regularly published NAV.
(c)
Domestic fixed income funds consist primarily of investment grade securities.
(d)
Exchange traded funds and common stock investments that are publicly traded are valued at the closing price reported on active markets in which the securities are traded.
(e)
Includes cash and cash equivalents and plan receivables and payables.
Schedule of Weighted Average Asset Allocations by Asset Category
The funded plans weighted-average asset allocation, by asset category, are as follows:
Pension benefits
As of June 30,
20232022
Asset Category
Equity investments39 %37 %
Fixed income investments, including cash51 52 
Other10 11 
Total100 %100 %