POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN (TABLES)

12 Months Ended

Jun. 30, 2013

Notes to Financial Statements [Abstract]

Pension Plans with Accumulated and Projected Benefit Obligations in Excess of Plan Assets

The accumulated benefit obligation for all defined benefit pension plans was $12,652 and $11,763 as of June 30, 2013 and 2012, respectively. Pension plans with accumulated benefit obligations in excess of plan assets and plans with projected benefit obligations in excess of plan assets consist of the following:



	Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets				Projected Benefit Obligation Exceeds the Fair Value of Plan Assets
June 30	2013		2012		2013		2012
Projected benefit obligation	$	12,024	$	11,623	$	12,962	$	12,310
Accumulated benefit obligation	10,406		10,009		11,149		10,533
Fair value of plan assets	6,086		6,013		6,895		6,583

Assumptions. We determine our actuarial assumptions on an annual basis. These assumptions are weighted to reflect each country that may have an impact on the cost of providing retirement benefits. The weighted average assumptions for the defined benefit and other retiree benefit calculations, as well as assumed health care trend rates, were as follows:



	Pension Benefits				Other Retiree Benefits
Years ended June 30	2013		2012		2013		2012
ASSUMPTIONS USED TO DETERMINE BENEFIT OBLIGATIONS⁽¹⁾
Discount rate	4.0	%	4.2	%	4.8	%	4.3	%
Rate of compensation increase	3.2	%	3.3	%	—	%	—	%
ASSUMPTIONS USED TO DETERMINE NET PERIODIC BENEFIT COST⁽²⁾
Discount rate	4.2	%	5.3	%	4.3	%	5.7	%
Expected return on plan assets	7.3	%	7.4	%	8.3	%	9.2	%
Rate of compensation increase	3.3	%	3.5	%	—	%	—	%
ASSUMED HEALTH CARE COST TREND RATES
Health care cost trend rates assumed for next year	—	%	—	%	7.3	%	8.0	%
Rate to which the health care cost trend rate is assumed to decline (ultimate trend rate)	—	%	—	%	5.0	%	5.0	%
Year that the rate reaches the ultimate trend rate	—	%	—	%	2020		2019


⁽¹⁾	Determined as of end of year.


⁽²⁾	Determined as of beginning of year and adjusted for acquisitions.

Amounts expected to be amortized from AOCI into net periodic benefit cost during the year ending June 30, 2014, are as follows:



	Pension Benefits		Other Retiree Benefits
Net actuarial loss	$	210	$	118
Prior service cost/(credit)	24		(20		)

Obligation and Funded Status. The following provides a reconciliation of benefit obligations, plan assets and funded status of these defined benefit plans:



	Pension Benefits⁽¹⁾						Other Retiree Benefits⁽²⁾
Years ended June 30	2013			2012			2013			2012
CHANGE IN BENEFIT OBLIGATION
Benefit obligation at beginning of year⁽³⁾	$	13,573		$	12,229		$	6,006		$	4,886
Service cost	300			267			190			142
Interest cost	560			611			260			276
Participants' contributions	20			22			66			68
Amendments	104			(44		)	—			—
Actuarial loss/(gain)	473			1,911			(1,022		)	957
Acquisitions/(divestitures)	51			(17		)	—			—
Special termination benefits	39			—			18			27
Currency translation and other	(4		)	(847		)	5			(95		)
Benefit payments	(602		)	(559		)	(234		)	(255		)
BENEFIT OBLIGATION AT END OF YEAR⁽³⁾	14,514			13,573			5,289			6,006



CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year	7,974		7,962		2,713		2,975
Actual return on plan assets	796		459		954		(126	)
Acquisitions/(divestitures)	59		—		—		—
Employer contributions	391		485		23		24
Participants' contributions	20		22		66		68
Currency translation and other	(77	)	(395	)	—		—
ESOP debt impacts⁽⁴⁾	—		—		31		27
Benefit payments	(602	)	(559	)	(234	)	(255	)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR	8,561		7,974		3,553		2,713
FUNDED STATUS	(5,953	)	(5,599	)	(1,736	)	(3,293	)


⁽¹⁾	Primarily non-U.S.-based defined benefit retirement plans.


⁽²⁾	Primarily U.S.-based other postretirement benefit plans.


⁽³⁾	For the pension benefit plans, the benefit obligation is the projected benefit obligation. For other retiree benefit plans, the benefit obligation is the accumulated postretirement benefit obligation.


⁽⁴⁾	Represents the net impact of ESOP debt service requirements, which is netted against plan assets for other retiree benefits.



	Pension Benefits						Other Retiree Benefits
June 30	2013			2012			2013			2012
CLASSIFICATION OF NET AMOUNT RECOGNIZED
Noncurrent assets	$	114		$	128		$	—		$	—
Current liability	(40		)	(43		)	(23		)	(23		)
Noncurrent liability	(6,027		)	(5,684		)	(1,713		)	(3,270		)
NET AMOUNT RECOGNIZED	(5,953		)	(5,599		)	(1,736		)	(3,293		)

AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI)
Net actuarial loss	$	4,049		$	4,010		$	1,772		$	3,565
Prior service cost /(credit)	353			261			(54		)	(75		)
NET AMOUNTS RECOGNIZED IN AOCI	4,402			4,271			1,718			3,490

A one percentage point change in assumed health care cost trend rates would have the following effects:



	One-Percentage Point Increase		One-Percentage Point Decrease
Effect on the total service and interest cost components	$	91	$	(70	)
Effect on the accumulated postretirement benefit obligation	806		(643		)



	Pension Benefits									Other Retiree Benefits
Years ended June 30	2013			2012			2011			2013			2012			2011
AMOUNTS RECOGNIZED IN NET PERIODIC BENEFIT COST
Service cost	$	300		$	267		$	270		$	190		$	142		$	146
Interest cost	560			611			588			260			276			270
Expected return on plan assets	(587		)	(573		)	(492		)	(382		)	(434		)	(431		)
Prior service cost /(credit) amortization	18			21			18			(20		)	(20		)	(18		)
Net actuarial loss amortization	213			102			154			199			99			96
Special termination benefits	39			—			—			18			27			3
Curtailments, settlements and other	4			6			—			—			—			—
GROSS BENEFIT COST	547			434			538			265			90			66
Dividends on ESOP preferred stock	—			—			—			(70		)	(74		)	(79		)
NET PERIODIC BENEFIT COST/(CREDIT)	547			434			538			195			16			(13		)

CHANGE IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN AOCI
Net actuarial loss /(gain) - current year	264			2,009						(1,594		)	1,516
Prior service cost/(credit) - current year	104			(44		)				—			—
Amortization of net actuarial loss	(213		)	(102		)				(199		)	(99		)
Amortization of prior service (cost) / credit	(18		)	(21		)				20			20
Settlement / curtailment cost	(4		)	(6		)				—			—
Currency translation and other	(2		)	(234		)				1			(36		)
TOTAL CHANGE IN AOCI	131			1,602						(1,772		)	1,401
NET AMOUNTS RECOGNIZED IN PERIODIC BENEFIT COST AND AOCI	678			2,036						(1,577		)	1,417

Target Asset Allocation and Actual Asset Allocation

Our target asset allocation for the year ended June 30, 2013, and actual asset allocation by asset category as of June 30, 2013 and 2012, were as follows:



	Target Asset Allocation				Actual Asset Allocation at June 30
					Pension Benefits				Other Retiree Benefits
Asset Category	Pension Benefits		Other Retiree Benefits		2013		2012		2013		2012
Cash	1	%	2	%	1	%	1	%	2	%	1	%
Debt securities	54	%	8	%	52	%	52	%	6	%	9	%
Equity securities	45	%	90	%	47	%	47	%	92	%	90	%
TOTAL	100	%	100	%	100	%	100	%	100	%	100	%

Fair Value of the Company's Plan Assets Segregated by Level within the Fair Value Hierarchy



	Pension Benefits
	Level 1				Level 2				Level 3				Total
June 30	2013		2012		2013		2012		2013		2012		2013		2012
ASSETS AT FAIR VALUE
Cash and cash equivalents	$	71	$	60	$	—	$	—	$	—	$	—	$	71	$	60
Common collective fund - equity	—		—		3,993		3,727		—		—		3,993		3,727
Common collective fund - fixed income	—		—		4,361		4,112		—		—		4,361		4,112
Other	4		4		—		—		132		71		136		75
TOTAL ASSETS AT FAIR VALUE	75		64		8,354		7,839		132		71		8,561		7,974



	Other Retiree Benefits
	Level 1				Level 2				Level 3				Total
June 30	2013		2012		2013		2012		2013		2012		2013		2012
ASSETS AT FAIR VALUE
Cash and cash equivalents	$	56	$	16	$	—	$	—	$	—	$	—	$	56	$	16
Company stock	—		—		3,270		2,418		—		—		3,270		2,418
Common collective fund - equity	—		—		16		30		—		—		16		30
Common collective fund - fixed income	—		—		200		247		—		—		200		247
Other	—		—		—		—		11		2		11		2
TOTAL ASSETS AT FAIR VALUE	56		16		3,486		2,695		11		2		3,553		2,713

Total Benefit Payments Expected to be Paid to Participants

Total benefit payments expected to be paid to participants, which include payments funded from the Company's assets, as discussed above, as well as payments from the plans, are as follows:



Years ending June 30	Pension Benefits		Other Retiree Benefits
EXPECTED BENEFIT PAYMENTS
2014	$	553	$	208
2015	545		224
2016	568		237
2017	596		251
2018	602		266
2019 - 2023	3,392		1,549

Series A and B Preferred Shares of the ESOP Number of Shares Outstanding

The number of preferred shares outstanding at June 30 was as follows:



Shares in thousands	2013	2012	2011
Allocated	45,535	50,668	52,281
Unallocated	9,843	11,348	13,006
TOTAL SERIES A	55,378	62,016	65,287

Allocated	21,278	20,802	20,759
Unallocated	37,300	38,743	40,090
TOTAL SERIES B	58,578	59,545	60,849

- Definition

Tabular disclosure of the description of the plan, the basis for determining contributions, including the employee groups covered, and the nature and effect of significant matters affecting comparability of information for all periods presented. For leveraged ESOPs and pension reversion ESOPs, the disclosure may include the basis for releasing shares and how dividends on allocated and unallocated shares are used. Disclosure may also include a description of the accounting policies followed for ESOP transactions, including the method of measuring compensation, the classification of dividends on ESOP shares, and the treatment of ESOP shares for EPS computations. If the employer has both old ESOP shares for which it does not adopt the latest guidance and new ESOP shares for which the new guidance is required, the accounting policies for both blocks of shares may be described. Disclosure may also include he amount of compensation cost recognized during the period, the number of allocated shares, committed-to-be-released shares, and suspense shares held by the ESOP at the balance-sheet date, the fair value of unearned ESOP shares at the balance-sheet date for shares accounted for under the latest guidance, the existence and nature of any repurchase obligation, including disclosure of the fair value of the shares allocated as of the balance sheet date, which are subject to a repurchase obligation.

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