XML 54 R31.htm IDEA: XBRL DOCUMENT v2.4.0.8
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN (TABLES)
 12 Months Ended
Jun. 30, 2014
Notes to Financial Statements [Abstract]  
Pension Plans with Accumulated and Projected Benefit Obligations in Excess of Plan Assets
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 used to determine benefit obligations recorded on the Consolidated Balance Sheets as of June 30, were as follows(1):
 
Pension Benefits
 
Other Retiree Benefits
 
2014
 
2013
 
2014
 
2013
Discount rate
3.5
%
 
4.0
%
 
4.4
%
 
4.8
%
Rate of compensation increase
3.2
%
 
3.2
%
 
—
%
 
—
%
Health care cost trend rates assumed for next year
—
%
 
—
%
 
6.8
%
 
7.3
%
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
N/A

 
N/A

 
2021

 
2020


(1) 
Determined as of end of year.

The weighted average assumptions used to determine net benefit cost recorded on the Consolidated Statement of Earnings for the years ended June 30, were as follows(2):
 
Pension Benefits
 
Other Retiree Benefits
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
Discount rate
4.0
%
 
4.2
%
 
5.3
%
 
4.8
%
 
4.3
%
 
5.7
%
Expected return on plan assets
7.2
%
 
7.3
%
 
7.4
%
 
8.3
%
 
8.3
%
 
9.2
%
Rate of compensation increase
3.2
%
 
3.3
%
 
3.5
%
 
—
%
 
—
%
 
—
%
 

(2) 
Determined as of beginning of year and adjusted for acquisitions.
The accumulated benefit obligation for all defined benefit pension plans was $14,949 and $12,652 as of June 30, 2014 and 2013, 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
2014
  
2013
  
2014
  
2013
Projected benefit obligation
$
14,229

  
$
12,024

  
$
15,325

  
$
12,962

Accumulated benefit obligation
12,406

  
10,406

  
13,279

  
11,149

Fair value of plan assets
8,353

  
6,086

  
9,301

  
6,895

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
$
80

 
$
(61
)
Effect on the accumulated postretirement benefit obligation
879

 
(696
)
 
Pension Benefits
 
Other Retiree Benefits
Years ended June 30
2014
 
2013
 
2012
 
2014
 
2013
 
2012
AMOUNTS RECOGNIZED IN NET PERIODIC BENEFIT COST
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
298

 
$
300

 
$
267

 
$
149

 
$
190

 
$
142

Interest cost
590

 
560

 
611

 
256

 
260

 
276

Expected return on plan assets
(701
)
 
(587
)
 
(573
)
 
(385
)
 
(382
)
 
(434
)
Prior service cost /(credit) amortization
26

 
18

 
21

 
(20
)
 
(20
)
 
(20
)
Net actuarial loss amortization
214

 
213

 
102

 
118

 
199

 
99

Special termination benefits
5

 
39

 
—

 
9

 
18

 
27

Curtailments, settlements and other
—

 
4

 
6

 
—

 
—

 
—

GROSS BENEFIT COST
432

 
547

 
434

 
127

 
265

 
90

Dividends on ESOP preferred stock
—

 
—

 
—

 
(64
)
 
(70
)
 
(74
)
NET PERIODIC BENEFIT COST/(CREDIT)
432

 
547

 
434

 
63

 
195

 
16

 
 
 
 
 
 
 
 
 
 
 
 
CHANGE IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN AOCI
 
 
 
 
 
 
 
 
 
 
 
Net actuarial loss /(gain) - current year
1,102

 
264

 
 
 
215

 
(1,594
)
 
 
Prior service cost/(credit) - current year
4

 
104

 
 
 
(5
)
 
—

 
 
Amortization of net actuarial loss
(214
)
 
(213
)
 
 
 
(118
)
 
(199
)
 
 
Amortization of prior service (cost) / credit
(26
)
 
(18
)
 
 
 
20

 
20

 
 
Settlement / curtailment cost
—

 
(4
)
 
 
 
—

 
—

 
 
Currency translation and other
245

 
(2
)
 
 
 
2

 
1

 
 
TOTAL CHANGE IN AOCI
1,111

 
131

 
 
 
114

 
(1,772
)
 
 
NET AMOUNTS RECOGNIZED IN PERIODIC BENEFIT COST AND AOCI
1,543

 
678

 
 
 
177

 
(1,577
)
 
 
 
Pension Benefits
 
Other Retiree Benefits
June 30
2014
 
2013
 
2014
 
2013
CLASSIFICATION OF NET AMOUNT RECOGNIZED
 
 
 
 
 
 
 
Noncurrent assets
$
69

 
$
114

 
$
—

 
$
—

Current liabilities
(40
)
 
(40
)
 
(25
)
 
(23
)
Noncurrent liabilities
(5,984
)
 
(6,027
)
 
(1,906
)
 
(1,713
)
NET AMOUNT RECOGNIZED
(5,955
)
 
(5,953
)
 
(1,931
)
 
(1,736
)
 
 
 
 
 
 
 
 
AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI)
 
 
 
 
 
 
 
Net actuarial loss
$
5,169

 
$
4,049

 
$
1,871

 
$
1,772

Prior service cost /(credit)
344

 
353

 
(39
)
 
(54
)
NET AMOUNTS RECOGNIZED IN AOCI
5,513

 
4,402

 
1,832

 
1,718

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
2014
 
2013
 
2014
 
2013
CHANGE IN BENEFIT OBLIGATION
 
 
 
 
 
 
 
Benefit obligation at beginning of year(3)
$
14,514

 
$
13,573

 
$
5,289

 
$
6,006

Service cost
298

 
300

 
149

 
190

Interest cost
590

 
560

 
256

 
260

Participants' contributions
20

 
20

 
72

 
66

Amendments
4

 
104

 
(5
)
 
—

Actuarial loss/(gain)
1,365

 
473

 
(46
)
 
(1,022
)
Acquisitions
—

 
51

 
—

 
—

Special termination benefits
5

 
39

 
9

 
18

Currency translation and other
797

 
(4
)
 
20

 
5

Benefit payments
(540
)
 
(602
)
 
(239
)
 
(234
)
BENEFIT OBLIGATION AT END OF YEAR(3)
17,053

 
14,514

 
5,505

 
5,289

CHANGE IN PLAN ASSETS
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
8,561

 
7,974

 
3,553

 
2,713

Actual return on plan assets
964

 
796

 
124

 
954

Acquisitions
—

 
59

 
—

 
—

Employer contributions
1,549

 
391

 
31

 
23

Participants' contributions
20

 
20

 
72

 
66

Currency translation and other
544

 
(77
)
 
—

 
—

ESOP debt impacts(4)
—

 
—

 
33

 
31

Benefit payments
(540
)
 
(602
)
 
(239
)
 
(234
)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR
11,098

 
8,561

 
3,574

 
3,553

FUNDED STATUS
(5,955
)
 
(5,953
)
 
(1,931
)
 
(1,736
)
(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.
Amounts expected to be amortized from AOCI into net periodic benefit cost during the year ending June 30, 2015, are as follows:
 
Pension Benefits
  
Other Retiree Benefits
Net actuarial loss
$
299

  
$
106

Prior service cost/(credit)
31

  
(20
)
Target Asset Allocation and Actual Asset Allocation
Our target asset allocation for the year ended June 30, 2014, and actual asset allocation by asset category as of June 30, 2014 and 2013, were as follows:
 
Target Asset Allocation
 
Actual Asset Allocation at June 30
 
 
 
 
 
Pension Benefits
 
Other Retiree 
Benefits
Asset Category
Pension Benefits
 
Other Retiree
Benefits
 
2014
 
2013
 
2014
 
2013
Cash
1
%
 
2
%
 
1
%
 
1
%
 
1
%
 
2
%
Debt securities
52
%
 
8
%
 
51
%
 
52
%
 
6
%
 
6
%
Equity securities
47
%
 
90
%
 
48
%
 
47
%
 
93
%
 
92
%
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
2014
  
2013
  
2014
  
2013
  
2014
  
2013
  
2014
  
2013
ASSETS AT FAIR VALUE
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
Cash and cash equivalents
$
79

  
$
71

  
$
—

  
$
—

  
$
—

  
$
—

  
$
79

  
$
71

Common collective fund - equity
—

  
—

  
5,336

  
3,993

  
—

  
—

  
5,336

  
3,993

Common collective fund - fixed income
—

  
—

  
5,539

  
4,361

  
—

  
—

  
5,539

  
4,361

Other
5

  
4

  
—

  
—

  
139

 
132

 
144

  
136

TOTAL ASSETS AT FAIR VALUE
84

  
75

  
10,875

  
8,354

  
139

  
132

  
11,098

  
8,561

 
Other Retiree Benefits
  
Level 1
  
Level 2
  
Level 3
  
Total
June 30
2014
  
2013
  
2014
  
2013
  
2014
  
2013
  
2014
  
2013
ASSETS AT FAIR VALUE
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
Cash and cash equivalents
$
30

  
$
56

  
$
—

  
$
—

  
$
—

  
$
—

  
$
30

  
$
56

Company stock
—

 
—

 
3,304

 
3,270

 
—

 
—

 
3,304

 
3,270

Common collective fund - equity
—

  
—

  
18

  
16

  
—

  
—

  
18

  
16

Common collective fund - fixed income
—

  
—

  
217

  
200

  
—

  
—

  
217

  
200

Other
—

  
—

  
—

  
—

  
5

 
11

 
5

  
11

TOTAL ASSETS AT FAIR VALUE
30

  
56

  
3,539

  
3,486

  
5

  
11

  
3,574

  
3,553
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
2015
$
584

  
$
203

2016
578

  
218

2017
604

  
233

2018
614

  
248

2019
624

  
264

2020 - 2024
3,615

  
1,528
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
2014
  
2013
  
2012
Allocated
44,465

  
45,535

  
50,668

Unallocated
8,474

  
9,843

  
11,348

TOTAL SERIES A
52,939

  
55,378

  
62,016

 
 
 
 
Allocated
22,085

  
21,278

  
20,802

Unallocated
35,753

  
37,300

  
38,743

TOTAL SERIES B
57,838

  
58,578

  
59,545