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EMPLOYEE BENEFIT PLANS
 12 Months Ended
Jun. 30, 2023
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, 2023 and 2022, the domestic retirement income plans were frozen 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 $14, $15 and $14 to its domestic retirement income plans during fiscal years 2023, 2022 and 2021, 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.
The Company has a domestic qualified pension plan (the Plan). The Plan is frozen for all participants. The Plan generally was frozen effective June 30, 2011 for all employees, except for certain collectively bargained employees, whose Plan freeze was effective January 1, 2019. As a result of the Plan freeze, no employees are eligible to commence participation in the Plan or accrue any additional benefits under the Plan.
On May 17, 2022, the Company’s Board of Directors approved a resolution to terminate the Plan. The amendment will allow the settlement of the pension obligation with either a lump sum payout or a purchased annuity. It is expected to take 18 to 24 months to complete the termination from the date of the approved resolution to terminate the Plan.
As of June 30, 2023, the Company recorded net unrealized losses of $136, net of tax, ($179 before taxes) in Accumulated other comprehensive net (loss) income on its consolidated balance sheet related to the Plan. These net unrealized losses will be recognized in the Company’s consolidated statement of income as payments are made to settle lump sum elections and to purchase group annuity contracts. Final settlement is dependent on market conditions, which could affect discount rates and returns on plan assets as well as final elections received from plan participants. Currently, there is not enough information available to determine the ultimate charge of the termination.
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
2023202220232022
Change in benefit obligations:
Benefit obligation as of beginning of year$513 $621 $28 $36 
Service cost1 1 — — 
Interest cost18 15 1 1 
Actuarial loss (gain)(11)(66)(1)(7)
Plan amendments— (7)— — 
Translation and other adjustments— (6)— — 
Plan settlement— (13)— — 
Benefits paid(45)(32)(2)(2)
Benefit obligation as of end of year$476 $513 $26 $28 
Change in plan assets:
Fair value of assets as of beginning of year$412 $506 $— $— 
Actual return on plan assets— (63)— — 
Employer contributions15 15 2 2 
Plan Settlement— (13)— — 
Benefits paid(45)(32)(2)(2)
Translation and other adjustments(1)(1)— — 
Fair value of plan assets as of end of year381 412 — — 
Accrued benefit cost, net funded status$(95)$(101)$(26)$(28)
Amount recognized in the balance sheets consists of:
Pension benefit assets$24 $30 $— $— 
Current accrued benefit liability(13)(12)(2)(2)
Non-current accrued benefit liability(106)(119)(24)(26)
Accrued benefit cost, net$(95)$(101)$(26)$(28)
For the retirement income plans, the benefit obligation is the projected benefit obligation (PBO). For the retirement health care plan, the benefit obligation is the accumulated benefit obligation (ABO).
The ABO for all retirement income plans was $474, $512 and $618 as of June 30, 2023, 2022 and 2021, respectively.
Retirement income plans with ABO or PBO in excess of plan assets as of June 30 were as follows:
ABO Exceeds the Fair Value of Plan AssetsPBO Exceeds the Fair Value of Plan Assets
2023202220232022
Projected benefit obligation$119 $133 $121 $133 
Accumulated benefit obligation118 132 119 132 
Fair value of plan assets— 2 2 2 
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
202320222021202320222021
Service cost$1 $1 $2 $— $— $— 
Interest cost18 15 15 1 1 1 
Expected return on plan assets(10)(15)(16)— — — 
Settlement loss recognized— 7 5 — — — 
Amortization of unrecognized items     8 9 11 (2)(1)(2)
Total$17 $17 $17 $(1)$— $(1)
Service cost component of the net periodic benefit cost is reflected in employee benefit costs, and all other components are reflected in Other (income) expense, net.
Items not yet recognized as a component of postretirement expense as of June 30, 2023 consisted of:
Retirement
Income		Retirement
Health Care
Net actuarial loss (gain)$213 $(14)
Prior service benefit(5)— 
Net deferred income tax (assets) liabilities(50)3 
Accumulated other comprehensive loss (income)$158 $(11)
Net actuarial loss (gain) recorded in Accumulated other comprehensive net (loss) income for the fiscal year ended June 30, 2023 included the following:
Retirement
Income		Retirement
Health Care
Net actuarial loss (gain) as of beginning of year$222 $(15)
Amortization during the year(9)2 
Loss (gain) during the year— (1)
Net actuarial loss (gain) as of end of year$213 $(14)
The Company uses the straight-line amortization method for unrecognized prior service costs and benefits.
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
2023202220232022
Discount rate4.37 %3.72 %5.10 %4.65 %
Rate of compensation increase3.62 %3.09 %n/an/a
Interest crediting rate2.67 %2.69 %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
202320222021
Discount rate3.72 %2.56 %2.45 %
Rate of compensation increase3.09 %3.02 %2.92 %
Expected return on plan assets2.67 %3.00 %3.08 %
Interest crediting rate2.69 %2.57 %1.92 %
Retirement Health Care
202320222021
Discount rate4.65 %2.61 %2.51 %
The expected long-term rate of return assumption is based on prospective returns according to the fund’s current target asset allocation.
The actuarial benefit obligation gain incurred during fiscal year 2023 was primarily driven by increases in the discount rates for the retirement plans, partially offset by investment gains lower than expected return on assets. The actuarial benefit obligation gain during fiscal year 2022 was primarily driven by increases in the discount rates for the retirement plans, partially offset by the domestic qualified plan reflecting plan termination lump sum window and annuity buyout assumptions.
Expected Benefit Payments
Expected benefit payments for the Company’s retirement income and retirement health care plans as of June 30, 2023, were as follows:
Retirement
Income		Retirement
Health Care
2024$358 $2 
202515 2 
202615 2 
202714 2 
202813 2 
Fiscal years 2029 through 203352 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
2023202220232022
Fixed income80 %100 %79 %99 %
Cash equivalents20 %— %21 %1 %
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 the retirement income plans’ assets carried at fair value as of June 30:
20232022
Cash equivalents — Level 1740
Total assets in the fair value hierarchy740
Common collective trusts measured at net asset value
Bond funds$289 $391 
International equity funds15 14 
Domestic equity funds— — 
Short-term investment fund1 4 
Real estate fund2 3 
Total common collect trust measured at net asset value$307 $412 
Total assets at fair value$381 $412 
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, 2023 and 2022.
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 $64, $58 and $65 in fiscal years 2023, 2022 and 2021, respectively. The aggregate cost of the international defined contribution plans was $6, $6 and $4 for the fiscal years ended June 30, 2023, 2022 and 2021, respectively.