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EMPLOYEE BENEFIT PLANS
 12 Months Ended
Jun. 30, 2020
Retirement Benefits [Abstract]  
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS
Retirement Income Plans
The Company has various retirement income plans for eligible domestic and international employees. As of June 30, 2020 and 2019, the domestic retirement income plans were frozen for most participants, and the benefits of the domestic retirement income plans were generally based on either employee years of service and compensation or a stated dollar amount per year of service.
The Company contributed $13, $63 and $21 to its domestic retirement income plans during fiscal years 2020, 2019 and 2018, respectively. The Company’s funding policy is to contribute amounts sufficient to meet benefit payments and minimum funding requirements as set forth in employee benefit tax laws plus additional amounts as the Company may determine to be appropriate.
Retirement Health Care Plans
The Company provides certain health care benefits for employees who meet age, participation and length of service requirements at retirement. The plans pay stated percentages of covered expenses after annual deductibles have been met or stated reimbursements up to a specified dollar subsidy amount. Benefits paid take into consideration payments by Medicare for the domestic plan. The plans are funded as claims are paid, and the Company has the right to modify or terminate certain plans.
Benefit Obligation and Funded Status
Summarized information for the Company’s retirement income and retirement health care plans as of and for the fiscal years ended June 30 is as follows:
Retirement
Income		Retirement
Health Care
2020201920202019
Change in benefit obligations:
Benefit obligation as of beginning of year$604  $593  $34  $38  
Service cost1  1  —  —  
Interest cost20  23  1  2  
Actuarial loss (gain)43  26  4  (3) 
Plan amendments—  —  —  —  
Translation and other adjustments(1) —  —  —  
Benefits paid(39) (39) (3) (3) 
Benefit obligation as of end of year628  604  36  34  
Change in plan assets:
Fair value of assets as of beginning of year485  420  —  —  
Actual return on plan assets48  41  —  —  
Employer contributions13  63  3  3  
Benefits paid(39) (39) (3) (3) 
Translation and other adjustments—  —  —  —  
Fair value of plan assets as of end of year507  485  —  —  
Accrued benefit cost, net funded status$(121) $(119) $(36) $(34) 

Amount recognized in the balance sheets consists of:
Pension benefit assets$52  $48  $—  $—  
Current accrued benefit liability(11) (12) (2) (2) 
Non-current accrued benefit liability(162) (155) (34) (32) 
Accrued benefit cost, net$(121) $(119) $(36) $(34) 

For the retirement income plans, the benefit obligation is the projected benefit obligation. For the retirement health care plan, the benefit obligation is the accumulated benefit obligation (ABO).
The ABO for all retirement income plans was $626, $603 and $592 as of June 30, 2020, 2019 and 2018, respectively.
Retirement income plans with ABO in excess of plan assets as of June 30 were as follows:
ABO Exceeds the Fair Value of Plan Assets
20202019
Projected benefit obligation$172  $167  
Accumulated benefit obligation170  166  
Fair value of plan assets—  —  

Net Periodic Benefit Cost
The net cost of the retirement income and health care plans for the fiscal years ended June 30 included the following components:
Retirement IncomeRetirement Health Care
202020192018202020192018
Service cost$1  $1  $1  $—  $—  $—  
Interest cost20  23  23  1  2  2  
Expected return on plan assets(19) (18) (19) —  —  —  
Amortization of unrecognized items     10  9  10  (3) (3) (3) 
Total$12  $15  $15  $(2) $(1) $(1) 
As a result of adopting ASU No. 2017-07, “Compensation-Retirement Benefits (ASC 715),” effective July 1, 2018, net periodic benefit cost is reflected in Other (income) expense, net, for fiscal year 2019 and thereafter, and in Cost of products sold, Selling and administrative expenses and Research and development costs prior to fiscal year 2019.
Items not yet recognized as a component of postretirement expense as of June 30, 2020, consisted of:
Retirement
Income		Retirement
Health Care
Net actuarial loss (gain)$240  $(13) 
Prior service benefit—  (1) 
Net deferred income tax (assets) liabilities(58) 4  
Accumulated other comprehensive loss (income)$182  $(10) 
Net actuarial loss (gain) recorded in Accumulated other comprehensive net (loss) income for the fiscal year ended June 30, 2020, included the following:
Retirement
Income		Retirement
Health Care
Net actuarial loss (gain) as of beginning of year$236  $(18) 
Amortization during the year(10) 3  
Loss (gain) during the year14  2  
Net actuarial loss (gain) as of end of year$240  $(13) 
The Company uses the straight-line amortization method for unrecognized prior service costs and benefits. In fiscal year 2021, the Company expects to recognize, on a pre-tax basis, $10 of the net actuarial loss as a component of net periodic benefit cost for the retirement income plans. In addition, in fiscal year 2021, the Company expects to recognize, on a pre-tax basis, $2 of the net actuarial gain as a component of net periodic benefit cost for the retirement health care plans.
Assumptions
Weighted-average assumptions used to estimate the actuarial present value of benefit obligations were as follows as of June 30:
Retirement IncomeRetirement Health Care
2020201920202019
Discount rate2.45 %3.41 %2.51 %3.35 %
Rate of compensation increase2.92 %2.86 %n/an/a

Weighted-average assumptions used to estimate the retirement income and retirement health care costs were as follows as of June 30:
Retirement Income
202020192018
Discount rate3.41 %4.10 %3.70 %
Rate of compensation increase2.86 %2.87 %2.83 %
Expected return on plan assets3.95 %4.33 %4.43 %
Retirement Health Care
202020192018
Discount rate3.35 %4.01 %3.66 %
The expected long-term rate of return assumption is based on an analysis of historical experience of the portfolio and the summation of prospective returns for each asset class in proportion to the fund’s current asset allocation.
Expected Benefit Payments
Expected benefit payments for the Company’s retirement income and retirement health care plans as of June 30, 2020, were as follows:
Retirement
Income		Retirement
Health Care
2021$38  $2  
202253  2  
202336  2  
202437  2  
202536  2  
Fiscal years 2026 through 2030179  10  
Expected benefit payments are based on the same assumptions used to measure the benefit obligations and include estimated future employee service.
Plan Assets
The target allocations and weighted average asset allocations by asset category of the investment portfolio for the Company’s domestic retirement income plans as of June 30 were:
% Target Allocation% of Plan Assets
2020201920202019
U.S. equity5 %9 %5 %9 %
International equity5 %8 %5 %8 %
Fixed income90 %83 %90 %83 %
Other— %— %— %— %
Total100 %100 %100 %100 %
The target asset allocation is determined based on the optimal balance between risk and return and, at times, may be adjusted to achieve the plan’s overall investment objective to generate sufficient resources to pay current and projected plan obligations over the life of the domestic retirement income plan.
The following table sets forth by level within the fair value hierarchy, the retirement income plans’ assets carried at fair value as of June 30:
2020
Level 1Level 2Total
Cash equivalents$3  $—  $3  
Total assets in the fair value hierarchy$3  $—  $3  
Common collective trusts measured at net asset value
Bond funds$444  
International equity funds36  
Domestic equity funds23  
Real estate fund1  
Total common collective trusts measured at net asset value504  
Total assets at fair value$507  

2019
Level 1Level 2Total
Cash equivalents$2  $—  $2  
Total assets in the fair value hierarchy$2  $—  $2  
Common collective trusts measured at net asset value
Bond funds$393  
International equity funds50  
Domestic equity funds39  
Real estate fund1  
Total common collective trusts measured at net asset value483  
Total assets at fair value$485  
The carrying value of cash equivalents approximated their aggregate fair value as of June 30, 2020 and 2019.
Common collective trust funds are not publicly traded and were valued at a net asset value unit price determined by the portfolio’s sponsor based on the fair value of underlying assets held by the common collective trust fund on June 30, 2020 and 2019.
The common collective trusts are invested in various trusts that attempt to achieve their investment objectives by investing primarily in other collective investment funds that have characteristics consistent with each trust’s overall investment objective and strategy.
Defined Contribution Plans
The Company has various defined contribution plans for eligible domestic and international employees. The aggregate cost of the domestic defined contribution plans was $54, $49 and $47 in fiscal years 2020, 2019 and 2018, respectively. The aggregate cost of the international defined contribution plans was $4, $4 and $3 for the fiscal years ended June 30, 2020, 2019 and 2018, respectively.