XML 59 R33.htm IDEA: XBRL DOCUMENT v3.19.2
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN (Tables)
 12 Months Ended
Jun. 30, 2019
Retirement Benefits [Abstract]  
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block] 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
2019
 
2018
 
2019
 
2018
CHANGE IN BENEFIT OBLIGATION
 
 
 
 
 
 
 
Benefit obligation at beginning of year (3)
$
15,658


$
16,160


$
4,778


$
5,187

Service cost
259

 
280

 
101

 
112

Interest cost
339

 
348

 
187

 
177

Participants' contributions
12

 
13

 
76

 
73

Amendments
9

 
12

 
—

 
(231
)
Net actuarial loss/(gain)
1,587

 
(722
)
 
37

 
(308
)
Acquisitions/(divestitures)
49

 
—

 
—

 
—

Special termination benefits
13

 
8

 
8

 
7

Currency translation and other
(283
)
 
148

 
20

 
5

Benefit payments
(606
)
 
(589
)
 
(243
)
 
(244
)
BENEFIT OBLIGATION AT END OF YEAR (3)
$
17,037

 
$
15,658

 
$
4,964

 
$
4,778

CHANGE IN PLAN ASSETS
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$
11,267

 
$
10,829

 
$
3,259

 
$
3,831

Actual return on plan assets
739

 
553

 
1,918

 
(481
)
Acquisitions/(divestitures)
4

 
—

 
—

 
—

Employer contributions
178

 
406

 
31

 
33

Participants' contributions
12

 
13

 
76

 
73

Currency translation and other
(212
)
 
55

 
(1
)
 
(3
)
ESOP debt impacts (4)
—

 
—

 
56

 
50

Benefit payments
(606
)
 
(589
)
 
(243
)
 
(244
)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR
$
11,382

 
$
11,267

 
$
5,096

 
$
3,259

FUNDED STATUS
$
(5,655
)
 
$
(4,391
)
 
$
132

 
$
(1,519
)
(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.
Schedule of Amounts Recognized in Balance Sheet [Table Text Block]
The underfunding of pension benefits is primarily a function of the different funding incentives that exist outside of the U.S. In certain countries, there are no legal requirements or financial incentives provided to companies to pre-fund pension obligations prior to their due date. In these instances, benefit payments are typically paid directly from the Company's cash as they become due.

 
Pension Benefits
 
Other Retiree Benefits
As of June 30
2019
 
2018
 
2019
 
2018
CLASSIFICATION OF NET AMOUNT RECOGNIZED
 
 
 
 
 
 
 
Noncurrent assets
$
19

 
$
420

 
$
1,257

 
$
—

Current liabilities
(52
)
 
(43
)
 
(27
)
 
(24
)
Noncurrent liabilities
(5,622
)
 
(4,768
)
 
(1,098
)
 
(1,495
)
NET AMOUNT RECOGNIZED
$
(5,655
)
 
$
(4,391
)
 
$
132

 
$
(1,519
)
AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI)
 
 
Net actuarial loss
$
5,062

 
$
3,787

 
$
874

 
$
2,366

Prior service cost/(credit)
214

 
244

 
(424
)
 
(478
)
NET AMOUNTS RECOGNIZED IN AOCI
$
5,276

 
$
4,031

 
$
450

 
$
1,888
Schedule of Accumulated and Projected Benefit Obligations [Table Text Block] Pension plans with accumulated benefit obligations in excess of plan assets and plans with projected benefit obligations in excess of plan assets consisted of the following:
 
Accumulated Benefit Obligation  Exceeds the Fair Value of Plan Assets
 
Projected Benefit Obligation  Exceeds the Fair Value of Plan Assets
As of June 30
2019
 
2018
 
2019
 
2018
Projected benefit obligation
$
11,604

 
$
8,467

 
$
16,304

 
$
8,962

Accumulated benefit obligation
10,711

 
7,573

 
15,096

 
7,974

Fair value of plan assets
6,026

 
3,740

 
10,630

 
4,150
Schedule of Net Benefit Costs [Table Text Block] Components of the net periodic benefit cost were as follows:
 
Pension Benefits
 
Other Retiree Benefits
 
Years ended June 30
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
AMOUNTS RECOGNIZED IN NET PERIODIC BENEFIT COST
 
Service cost
$
259

 
$
280

 
$
310

(1) 
$
101

 
$
112

 
$
133

(1) 
Interest cost
339

 
348

 
300

 
187

 
177

 
175

 
Expected return on plan assets
(732
)
 
(751
)
 
(675
)
 
(447
)
 
(451
)
 
(431
)
 
Amortization of net actuarial loss
225

 
295

 
375

 
66

 
69

 
122

 
Amortization of prior service cost/(credit)
26

 
28

 
28

 
(48
)
 
(41
)
 
(45
)
 
Amortization of net actuarial loss/prior service cost due to settlements and curtailments
9

 
—

 
186

(2) 
—

 
—

 
16

(2) 
Special termination benefits
13

 
8

 
4

 
8

 
7

 
21

(2) 
GROSS BENEFIT COST/(CREDIT)
139

 
208

 
528

 
(133
)
 
(127
)
 
(9
)
 
Dividends on ESOP preferred stock
—

 
—

 
—

 
(28
)
 
(37
)
 
(45
)
 
NET PERIODIC BENEFIT COST/(CREDIT)
$
139

 
$
208

 
$
528

 
$
(161
)
 
$
(164
)
 
$
(54
)
 
CHANGE IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN AOCI
 
Net actuarial loss/(gain) - current year
$
1,580

 
$
(524
)
 
 
 
$
(1,434
)
 
$
624

 
 
 
Prior service cost/(credit) - current year
9

 
12

 
 
 
—

 
(231
)
 
 
 
Amortization of net actuarial loss
(225
)
 
(295
)
 
 
 
(66
)
 
(69
)
 
 
 
Amortization of prior service (cost)/credit
(26
)
 
(28
)
 
 
 
48

 
41

 
 
 
Amortization of net actuarial loss/prior service costs due to settlements and curtailments
(9
)
 
—

 
 
 
—

 
—

 
 
 
Currency translation and other
(84
)
 
73

 
 
 
14

 
(3
)
 
 
 
TOTAL CHANGE IN AOCI
1,245

 
(762
)
 
 
 
(1,438
)
 
362

 
 
 
NET AMOUNTS RECOGNIZED IN PERIODIC BENEFIT COST AND AOCI
$
1,384

 
$
(554
)
 
 
 
$
(1,599
)
 
$
198

 
 
 

(1) 
Service cost includes amounts related to discontinued operations in fiscal year ended June 30, 2017, which are not material.
(2) 
For fiscal year ended June 30, 2017, amortization of net actuarial loss/prior service cost due to settlement and curtailments and $18 of the special termination benefits are included in Net earnings from discontinued operations.
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year [Table Text Block]
Amounts expected to be amortized from AOCI into net periodic benefit cost during the year ending June 30, 2020, are as follows:
 
Pension Benefits
 
Other Retiree Benefits
Net actuarial loss
$
344

 
$
68

Prior service cost/(credit)
25

 
(48
)
Schedule of Assumptions Used [Table Text Block] 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
As of June 30
2019
 
2018
 
2019
 
2018
Discount rate
1.9
%
 
2.5
%
 
3.7
%
 
4.2
%
Rate of compensation increase
2.6
%
 
2.6
%
 
N/A

 
N/A

Health care cost trend rates assumed for next year
N/A

 
N/A

 
6.6
%
 
6.6
%
Rate to which the health care cost trend rate is assumed to decline (ultimate trend rate)
N/A

 
N/A

 
4.9
%
 
4.9
%
Year that the rate reaches the ultimate trend rate
N/A

 
N/A

 
2026

 
2025

(1) 
Determined as of end of fiscal 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: (1) 
 
Pension Benefits
 
Other Retiree Benefits
Years ended June 30
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Discount rate
2.5
%
 
2.4
%
 
2.1
%
 
4.2
%
 
3.9
%
 
3.6
%
Expected return on plan assets
6.6
%
 
6.8
%
 
6.9
%
 
8.3
%
 
8.3
%
 
8.3
%
Rate of compensation increase
2.6
%
 
3.0
%
 
2.9
%
 
N/A

 
N/A

 
N/A


(1) 
Determined as of beginning of fiscal year.
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block] 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
$
60

 
$
(45
)
Effect on the accumulated postretirement benefit obligation
755

 
(619
)
Schedule of Allocation of Plan Assets [Table Text Block] Our target asset allocation for the year ended June 30, 2019, and actual asset allocation by asset category as of June 30, 2019 and 2018, were as follows:
 
Target Asset Allocation
 
Actual Asset Allocation at June 30
 
Pension Benefits
 
Other Retiree
Benefits
 
Pension Benefits
 
Other Retiree Benefits
Asset Category
 
 
2019
 
2018
 
2019
 
2018
Cash
—
%
 
2
%
 
1
%
 
2
%
 
3
%
 
1
%
Debt securities
67
%
 
3
%
 
63
%
 
59
%
 
2
%
 
4
%
Equity securities
33
%
 
95
%
 
36
%
 
39
%
 
95
%
 
95
%
TOTAL
100
%
 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
Pension and Postretirement Plan Assets By Fair Value Hierarchy [Table Text Block] These assets are not valued using the fair value hierarchy, but rather valued using the net asset value reported by the managers of the funds and as supported by the unit prices of actual purchase and sale transactions.
 
Pension Benefits
 
Other Retiree Benefits
As of June 30
Fair Value Hierarchy Level
 
2019
 
2018
 
Fair Value Hierarchy Level
 
2019
 
2018
ASSETS AT FAIR VALUE
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
1
 
$
47

 
$
136

 
1
 
$
111

 
$
5

Company stock (1)
 
 
—

  
—

 
1 & 2
 
4,836

 
3,092

Other (2)
1, 2 & 3
 
378

 
400

 
1
 
1

  
4

TOTAL ASSETS IN THE FAIR VALUE HEIRARCHY
 
 
425

 
536

 
 
 
4,948

 
3,101

Investments valued at net asset value
 
 
10,957

  
10,731

 
 
 
148

  
158

TOTAL ASSETS AT FAIR VALUE
 
 
$
11,382

 
11,267

 
 
 
$
5,096

  
3,259

(1) 
Company stock is net of ESOP debt discussed below.
(2) 
The Company's other pension plan assets measured at fair value are generally classified as Level 3 within the fair value hierarchy. There are no material other pension plan asset balances classified as Level 1 or Level 2 within the fair value hierarchy.
Schedule of Expected Benefit Payments [Table Text Block]
Total benefit payments expected to be paid to participants, which include payments funded from the Company's assets and payments from the plans are as follows:
Years ending June 30
Pension
Benefits
 
Other Retiree
Benefits
EXPECTED BENEFIT PAYMENTS
 
 
2020
$
518

 
$
191

2021
536

 
203

2022
549

 
214

2023
574

 
224

2024
583

 
233

2025 - 2029
3,220

 
1,283
Employee Stock Ownership Plan (ESOP) Disclosures [Table Text Block] The number of preferred shares outstanding at June 30 was as follows:
Shares in thousands
2019
 
2018
 
2017
Allocated
31,600

 
34,233

 
36,488

Unallocated
3,259

 
4,117

 
5,060

TOTAL SERIES A
34,859

 
38,350

 
41,548

 
 
 
 
Allocated
26,790

 
25,895

 
25,378

Unallocated
26,471

 
28,512

 
30,412

TOTAL SERIES B
53,261

 
54,407

 
55,790