XML 57 R42.htm IDEA: XBRL DOCUMENT v3.22.2
Pension and Other Postretirement Benefits (Tables)
 12 Months Ended
Jun. 30, 2022
Retirement Benefits [Abstract]  
Funded Status of Pension Plans and Amount recognized in the Consolidated Balance Sheet
The funded status of our pension plans and amounts recognized in the consolidated balance sheets as of June 30 were as follows:
(in thousands)20222021
Change in benefit obligation:
Benefit obligation, beginning of year$968,725 $1,004,005 
Service cost1,117 1,685 
Interest cost22,532 23,188 
Participant contributions479 548 
Actuarial gains(170,055)(16,794)
Benefits and expenses paid(53,149)(52,719)
Currency translation adjustments(27,074)23,276 
Plan amendments(66)(129)
Plan settlements(1,805)(13,966)
Plan curtailments(3)(10)
Other adjustments308 (359)
Benefit obligation, end of year$741,009 $968,725 
Change in plans' assets:
Fair value of plans' assets, beginning of year$890,104 $876,036 
Actual return on plans' assets(133,374)54,026 
Company contributions8,170 9,998 
Participant contributions479 548 
Plan settlements(1,805)(13,966)
Benefits and expenses paid(53,149)(52,719)
Currency translation adjustments(14,455)16,032 
Other adjustments(5)149 
Fair value of plans' assets, end of year$695,965 $890,104 
Funded status of plans$(45,044)$(78,621)
Amounts recognized in the balance sheets consist of:
Long-term prepaid benefit$66,433 $89,233 
Short-term accrued benefit obligation(6,406)(6,918)
Accrued pension benefits(105,071)(160,936)
Net amount recognized$(45,044)$(78,621)
Defined Benefit Pension Plans Recognized in Accumulated Other Comprehensive (Loss) Income
The pre-tax amounts related to our defined benefit pension plans recognized in accumulated other comprehensive loss were as follows at June 30:
(in thousands)20222021
Unrecognized net actuarial losses$274,416 $279,628 
Unrecognized net prior service costs1,822 2,001 
Unrecognized transition obligations158 277 
Total$276,396 $281,906 
The pre-tax amounts related to our other postretirement benefit plans which were recognized in accumulated other comprehensive loss were as follows at June 30:
(in thousands)20222021
Unrecognized net actuarial losses$2,657 $4,355 
Unrecognized net prior service credits(1,649)(1,924)
Total$1,008 $2,431 
Accumulated Benefit Obligations Exceeding Plan Assets Fair Value
Included in the above information are plans with accumulated benefit obligations exceeding the fair value of plan assets as of June 30 as follows:
(in thousands)20222021
Projected benefit obligation$118,199 $174,973 
Accumulated benefit obligation117,614 173,684 
Fair value of plan assets6,718 7,116 
Net Periodic Pension (Income) Cost
The components of net periodic pension income include the following as of June 30:
(in thousands)202220212020
Service cost$1,117 $1,685 $1,796 
Interest cost22,532 23,188 27,320 
Expected return on plans' assets(51,928)(53,653)(53,943)
Amortization of transition obligation94 94 88 
Amortization of prior service cost13 34 50 
Curtailment(2)(7)(115)
Settlement205 3,190 (51)
Recognition of actuarial losses11,702 13,606 10,359 
Other adjustments277 (473)288 
Net periodic pension income$(15,990)$(12,336)$(14,208)
Funded Status of Other Postretirement Benefit Plans and Amount Recognized in the Consolidated Balance Sheet The funded status of our other postretirement benefit plans and the related amounts recognized in the consolidated balance sheets were as follows:
(in thousands)20222021
Change in benefit obligation:
Benefit obligation, beginning of year$11,383 $12,365 
Interest cost288 307 
Actuarial losses(1,402)60 
Benefits paid(1,224)(1,281)
Other68 (68)
Benefit obligation, end of year$9,113 $11,383 
Funded status of plan$(9,113)$(11,383)
Amounts recognized in the balance sheets consist of:
Short-term accrued benefit obligation$(1,189)$(1,252)
Accrued postretirement benefits(7,924)(10,131)
Net amount recognized$(9,113)$(11,383)
Net Periodic Other Postretirement Costs (Benefit)
The components of net periodic other postretirement benefit cost include the following for the years ended June 30:
(in thousands)202220212020
Interest cost$288 $307 $404 
Amortization of prior service credit(276)(276)(276)
Recognition of actuarial loss297 307 257 
Net periodic other postretirement benefit cost$309 $338 $385 
Significant Actuarial Assumptions Used to Determine the Present Value of Net Benefit Obligations
The significant actuarial assumptions used to determine the present value of net benefit obligations for our defined benefit pension plans and other postretirement benefit plans were as follows:
202220212020
Discount Rate:
U.S. plans
4.3-5.0%
1.2-3.0%
1.6-2.9%
International plans
2.0-5.0%
0.3-3.2%
0.2-2.4%
Rates of future salary increases:
U.S. plans (Executive Retirement Plan only)4.0 %4.0 %4.0 %
International plans1.5 %1.5 %1.5 %
The significant assumptions used to determine the net periodic income for our pension and other postretirement benefit plans were as follows:
202220212020
Discount Rate:
U.S. plans
1.2-3.0%
1.6-2.9%
2.7-3.6%
International plans
0.3-3.2%
0.2-2.4%
0.4-2.9%
Rates of future salary increases:
U.S. plans (Executive Retirement Plan only)4.0 %4.0 %4.0 %
International plans1.5 %1.5 %
1.8-3.0%
Rate of return on plans assets:
U.S. plans6.5 %6.8 %7.0 %
International plans
0.3-5.0%
0.2-5.3%
0.4-5.3%
Annual Assumed Rate of Increase in Per Capita Cost of Covered Benefits for Postretirement Benefit Plans
The annual assumed rate of increase in the per capita cost of covered benefits (the health care cost trend rate) for our postretirement benefit plans was as follows: 
202220212020
Health care costs trend rate assumed for next year6.3 %6.5 %6.8 %
Rate to which the cost trend rate gradually declines5.0 %5.0 %5.0 %
Year that the rate reaches the rate at which it is assumed to remain202720272027
Asset Allocations and Target Allocations by Asset Class
Our defined benefit pension plans’ asset allocations as of June 30, 2022 and 2021 and target allocations for 2023, by asset class, were as follows:
20222021Target %
Equity14 %20 %14 %
Fixed Income82 %76 %79 %
Other4 %4 %7 %
The following table presents the fair value of the benefit plans' assets by asset category as of June 30, 2022:
(in thousands)Level 1Level 2Level 3
NAV(3)
Total
Common / collective trusts (3):
Blend funds$— $— $— $48,973 $48,973 
Mutual funds— — — 24,528 24,528 
Corporate fixed income securities— 379,324 — — 379,324 
Common stock25,704 — — — 25,704 
Government securities:
U.S. government securities— 130,064 — — 130,064 
Foreign government securities— 40,729 — — 40,729 
Other fixed income securities— 20,248 — — 20,248 
Other747 25,648 — — 26,395 
Total investments$26,451 $596,013 $— $73,501 $695,965 
The following table presents the fair value of the benefit plans' assets by asset category as of June 30, 2021:
(in thousands)Level 1Level 2Level 3
NAV(3)
Total
Common / collective trusts (3):
Blend funds$— $— $— $90,338 $90,338 
Mutual funds— — — 48,446 48,446 
Corporate fixed income securities— 443,948 — — 443,948 
Common stock42,670 — — — 42,670 
Government securities:
U.S. government securities— 149,514 — — 149,514 
Foreign government securities— 57,253 — — 57,253 
Other fixed income securities— 21,107 — — 21,107 
Other1,107 35,721 — — 36,828 
Total investments$43,777 $707,543 $— $138,784 $890,104 
(3) Investments in common / collective trusts invest primarily in publicly traded securities and are valued using net asset value (NAV) of units of a bank collective trust. Therefore, these amounts have not been classified in the fair value hierarchy and are presented in the tables to reconcile the fair value hierarchy to the total fair value of plan assets.