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Pension and Other Postretirement Benefits
 12 Months Ended
Jun. 30, 2024
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefits Pension and Other Postretirement Benefits
 
The Company provides several noncontributory defined benefit pension plans to certain employees. The plans provide defined benefits based on years of service and final average salary.
The Company also provides other postretirement benefit plans to certain of its employees. The postretirement benefit plans consist of health care and life insurance plans. Plan assets are maintained in a Voluntary Employee Benefit Association ("VEBA") Trust. During fiscal years 2024 and 2023, the Company funded benefit payments using assets in the VEBA Trust.
The following provides a reconciliation of benefit obligations, plan assets and funded status of the plans:
 
Pension PlansOther Postretirement Plans
($ in millions)2024202320242023
Change in projected benefit obligation:    
Projected benefit obligation at beginning of year$848.2 $959.4 $182.3 $206.2 
Service cost8.2 8.1 1.5 1.8 
Interest cost43.7 46.2 10.2 10.0 
Benefits paid(68.8)(77.5)(12.3)(13.5)
Actuarial gain(2.3)(65.3)(8.9)(22.2)
Plan settlements(147.2)(23.3)— — 
Other0.9 0.6 — — 
Projected benefit obligation at end of year682.7 848.2 172.8 182.3 
Change in plan assets:    
Fair value of plan assets at beginning of year654.8 759.4 120.4 114.7 
Actual return18.5 (7.4)25.6 15.9 
Benefits paid(68.8)(77.5)(12.3)(13.5)
Contributions14.5 3.6 2.6 3.3 
Plan settlements(147.2)(23.3)— — 
Fair value of plan assets at end of year471.8 654.8 136.3 120.4 
Funded status of the plans$(210.9)$(193.4)$(36.5)$(61.9)
Amounts recognized in the consolidated balance sheets:    
Accrued liabilities - current(3.3)(3.3)(15.4)(16.1)
Accrued pension liabilities - noncurrent(207.6)(190.1)— — 
Accrued postretirement benefits - noncurrent— — (21.1)(45.8)
Funded status of the plans$(210.9)$(193.4)$(36.5)$(61.9)
 
 Pension PlansOther Postretirement Plans
($ in millions)2024202320242023
Amounts recognized in accumulated other comprehensive loss:    
Net actuarial loss (gain)$215.4 $260.3 $(64.3)$(39.7)
Prior service cost (benefit)4.2 5.8 1.5 (2.4)
Total$219.6 $266.1 $(62.8)$(42.1)
Other changes in plan assets and benefit obligations recognized in other comprehensive income consist of:
Net actuarial loss (gain)$15.5 $(12.5)$(27.2)$(31.2)
Amortization of net (loss) gain(8.0)(9.5)2.5 1.8 
Amortization of prior service (cost) benefit(2.1)(2.1)3.9 3.9 
Settlement charge(51.9)— — — 
Total, before tax effect$(46.5)$(24.1)$(20.8)$(25.5)
Additional information:    
Accumulated benefit obligation for all pension plans$678.5 $843.8 N/AN/A
 
For the year ended June 30, 2024, actuarial gains in pension plans were impacted by a change in discount rate of $5.4 million partially offset by a change in plan experience of $3.1 million. Actuarial gains in other postretirement plans were impacted by a change in discount rate of $2.1 million and a change in plan experience of $4.9 million. For the year ended June 30, 2023, actuarial gains in pension plans were significantly impacted by a change in discount rate of $70.9 million partially offset by a change in plan experience of $9.2 million. Actuarial gains in other postretirement plans were significantly impacted by a change in discount rate of $13.8 million.

The following is additional information related to plans with projected benefit obligations in excess of plan assets as of June 30, 2024 and 2023:
 
 Pension PlansOther Postretirement Plans
($ in millions)2024202320242023
Projected benefit obligation$682.7 $848.2 $172.8 $182.3 
Fair value of plan assets$471.8 $654.8 $136.3 $120.4 
 
The following additional information is for plans with accumulated benefit obligations in excess of plan assets as of June 30, 2024 and 2023:
 
 Pension PlansOther Postretirement Plans
($ in millions)2024202320242023
Accumulated benefit obligation$678.5 $843.8 $172.8 $182.3 
Fair value of plan assets$471.8 $654.8 $136.3 $120.4 
 
The components of the net periodic pension expense (income) related to the Company's pension and other postretirement benefits for the years ended June 30, 2024, 2023 and 2022 are as follows:
 
 Pension PlansOther Postretirement Plans
($ in millions)202420232022202420232022
Service cost$8.2 $8.1 $8.6 $1.5 $1.8 $2.4 
Interest cost43.7 46.2 36.6 10.2 10.0 7.4 
Expected return on plan assets(35.9)(45.3)(59.9)(7.3)(6.8)(8.2)
Amortization of net loss (gain)8.0 9.5 8.4 (2.5)(1.8)(0.8)
Amortization of prior service cost (benefit)2.1 2.1 2.1 (3.9)(3.9)(3.9)
Settlement charge51.9 — — — — — 
Net pension expense (income) $78.0 $20.6 $(4.2)$(2.0)$(0.7)$(3.1)
 
The service cost component of the Company's net pension expense (income), which represents the estimated cost of future pension liabilities earned associated with active employees, is included in the operating income (loss) of the business segments. The residual net pension expense (income), which is comprised of the expected return on plan assets, interest costs on the projected benefit obligations of the plans, and amortization of actuarial gains and losses and prior service costs and benefits, is presented within other expense (income), net. See Note 18 to our consolidated financial statements included in Item 8. "Financial Statements and Supplementary Data."

During the fiscal year ended June 30, 2024, the Company executed a buy-out annuity transaction for the Company's largest defined benefit plan. The Company determined that the annuity settlement and lump-sum payments exceeded the threshold of service cost and interest cost components and therefore settlement accounting was required. As a result, the Company recorded a settlement charge of $51.9 million in the year ended June 30, 2024 within other expense (income), net.
  
Weighted-average assumptions used to determine benefit obligations at fiscal year endPension PlansOther Postretirement Plans
2024202320242023
Discount rate5.98 %5.85 %6.03 %5.87 %
Rate of compensation increase3.33 %3.28 %N/AN/A
 
Weighted-average assumptions used to determine net periodic benefit cost for the fiscal yearPension PlansOther Postretirement Plans
202420232022202420232022
Discount rate5.89 %5.01 %3.06 %5.87 %5.02 %3.04 %
Expected long-term rate of return on plan assets6.50 %6.25 %6.22 %6.50 %6.25 %6.25 %
Long-term rate of compensation increase3.28 %3.28 %3.29 %N/AN/AN/A
 
The following table shows the expected health care rate increase and the future rate and time at which it is expected to remain constant:
 June 30,
 20242023
Assumed health care cost trend rate6.50 %6.25 %
Rate to which the cost trend rate is assumed to decline and remain (the ultimate trend rate)5.00 %5.00 %
Year that the rate reaches the ultimate trend rate20312028
 
 Amounts in other accumulated comprehensive loss (gain) that are expected to be recognized as components of net periodic benefit cost in the fiscal year ended June 30, 2025, are:
 
($ in millions)Pension PlansOther Postretirement PlansTotal
Amortization of prior service cost (benefit)$2.1 $1.2 $3.3 
Amortization of net actuarial loss (gain)7.3 (5.6)1.7 
Amortization of accumulated other comprehensive loss (gain)$9.4 $(4.4)$5.0 
 
The Company's U.S. pension plans' weighted-average asset allocations at June 30, 2024 and 2023, by asset category are as follows: 

 20242023
Equity securities42.4 %43.8 %
Fixed income securities31.6 36.5 
Real assets securities26.0 19.7 
Total100.0 %100.0 %
 
The Company's policy for developing a pension plan investment strategy includes the periodic development of an asset and liability study by an independent investment consultant. Management considers this study in establishing an asset allocation that is presented to and approved by the Company's Retirement Committee.
Based on the current funding level, the benchmark allocation policy for the Company's largest pension plan assets is to have approximately 75 percent in return seeking assets and 25 percent in liability-hedging assets. Return seeking assets include global equities, diversified credit and real assets. Liability-hedging assets include bond funds and cash. When the funding level of the plan reaches 95 percent and improves to fully or over-funded status in increments of 5 percent, assets will be shifted from return seeking to liability-hedging assets in accordance with the glidepath policy outlined in the pension plan's Investment Policy Statement. The assets related to the Company's other postretirement benefit plans were invested in approximately 95 percent U.S. equities and 5 percent short-term investments as of June 30, 2024. Management establishes the expected long-term rate of return assumption by reviewing historical trends and analyzing the current and projected market conditions in relation to the plan's asset allocation and risk management objectives. In determining the expected long-term rate of return, the Company considered historical returns for individual asset classes and the impact of active portfolio management.

A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Investments in domestic and international equities are generally valued at the closing price reported on the active market on which they are traded. Commingled funds, limited partnerships and mutual funds are valued based on the net asset value ("NAV") established for the fund at each valuation date. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of units/shares outstanding. Corporate and government agency bonds and other fixed income securities are valued using closing bid prices on an active market when possible, otherwise using evaluated bid prices.

The fair values of the Company's pension plan assets as of June 30, 2024 and 2023, by asset category and by the levels of inputs used to determine fair value were as follows:
 
 June 30, 2024
 Fair Value
Measurements Using
Input Type		 
($ in millions)Level 1Level 2Net Asset ValueTotal
Short-term investments$7.2 $— $— $7.2 
Commingled trust funds— — 464.1 464.1 
Mortgage/asset backed securities and other— 0.5 — 0.5 
Fair value of plan assets at end of year$7.2 $0.5 $464.1 $471.8 

June 30, 2023
 Fair Value
Measurements Using
Input Type		 
($ in millions)Level 1Level 2Net Asset ValueTotal
Short-term investments$6.7 $— $— $6.7 
Commingled trust funds— — 646.8 646.8 
Mortgage/asset backed securities and other— 1.3 — 1.3 
Fair value of plan assets at end of year$6.7 $1.3 $646.8 $654.8 
 
The fair values of the Company's other postretirement benefit plans as of June 30, 2024 and 2023, by asset category and by the level of inputs used to determine fair value, were as follows:
 
 June 30, 2024
 Fair Value
Measurements Using
Input Type		 
($ in millions)Level 1Level 2Net Asset ValueTotal
Commingled trust fund$— $— $129.7 $129.7 
Short-term investments6.6 — — 6.6 
Fair value of plan assets at end of year$6.6 $— $129.7 $136.3 

 June 30, 2023
 Fair Value
Measurements Using
Input Type		 
($ in millions)Level 1Level 2Net Asset ValueTotal
Commingled trust fund$— $— $110.1 $110.1 
Short-term investments10.3 — — 10.3 
Fair value of plan assets at end of year$10.3 $— $110.1 $120.4 

Cash Flows — Employer Contributions
 
The Company made contributions to the qualified defined benefit pension plans of $11.3 million, $0.0 million and $0.7 million during fiscal years 2024, 2023 and 2022, respectively. The Company currently expects to make $26.3 million of required cash pension contributions to the domestic qualified defined benefit pension plans during fiscal year 2025. During the fiscal years ended June 30, 2024, 2023 and 2022, the Company made contributions of $3.2 million, $3.6 million and $3.1 million, respectively, to other non-qualified pension plans.
 
Estimated Future Benefit Payments
 
Pension benefits are currently paid from plan assets and other benefits are currently paid from both corporate assets and the VEBA trust. The benefit payments below, which reflect expected future service, as appropriate, are expected to be paid by fiscal year as follows:
 
($ in millions)Pension
Benefits		Other
Benefits
2025$63.4 $15.4 
2026$61.3 $15.4 
2027$60.3 $15.2 
2028$58.7 $15.0 
2029$57.3 $14.8 
2030-2034$264.9 $69.6 
 
Other Benefit Plans
 
The Company also maintains defined contribution retirement and savings plans for substantially all domestic employees. Company contributions to the plans were $26.5 million in fiscal year 2024, $23.3 million in fiscal year 2023 and $21.0 million in fiscal year 2022.