XML 50 R33.htm IDEA: XBRL DOCUMENT v3.20.2
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN (Tables)
 12 Months Ended
Jun. 30, 2020
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 302020201920202019
CHANGE IN BENEFIT OBLIGATION
Benefit obligation at beginning of year (3)
$17,037  $15,658  $4,964  $4,778  
Service cost247  259  100  101  
Interest cost276  339  160  187  
Participants' contributions11  12  74  76  
Amendments3  9  (136) —  
Net actuarial loss/(gain)951  1,587  (85) 37  
Acquisitions—  49  —  —  
Special termination benefits11  13  2  8  
Currency translation and other(218) (283) (64) 20  
Benefit payments(557) (606) (245) (243) 
BENEFIT OBLIGATION AT END OF YEAR (3)
$17,761  $17,037  $4,770  $4,964  
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year$11,382  $11,267  $5,096  $3,259  
Actual return on plan assets664  739  595  1,918  
Acquisitions—  4  —  —  
Employer contributions180  178  33  31  
Participants' contributions11  12  74  76  
Currency translation and other(196) (212) 2  (1) 
ESOP debt impacts (4)
—  —  63  56  
Benefit payments(557) (606) (245) (243) 
FAIR VALUE OF PLAN ASSETS AT END OF YEAR$11,484  $11,382  $5,618  $5,096  
FUNDED STATUS$(6,277) $(5,655) $848  $132  
(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 BenefitsOther Retiree Benefits
As of June 302020201920202019
CLASSIFICATION OF NET AMOUNT RECOGNIZED
Noncurrent assets$12  $19  $1,843  $1,257  
Current liabilities(66) (52) (30) (27) 
Noncurrent liabilities(6,223) (5,622) (965) (1,098) 
NET AMOUNT RECOGNIZED$(6,277) $(5,655) $848  $132  
AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI)
Net actuarial loss$5,662  $5,062  $572  $874  
Prior service cost/(credit)198  214  (511) (424) 
NET AMOUNTS RECOGNIZED IN AOCI$5,860  $5,276  $61  $450  
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 302020201920202019
Projected benefit obligation$12,095  $11,604  $17,635  $16,304  
Accumulated benefit obligation11,196  10,711  16,377  15,096  
Fair value of plan assets5,994  6,026  11,347  10,630  
Schedule of Net Benefit Costs [Table Text Block] Components of the net periodic benefit cost were as follows:
Pension BenefitsOther Retiree Benefits
Years ended June 30202020192018202020192018
AMOUNTS RECOGNIZED IN NET PERIODIC BENEFIT COST
Service cost$247  $259  $280  $100  $101  $112  
Interest cost276  339  348  160  187  177  
Expected return on plan assets(740) (732) (751) (473) (447) (451) 
Amortization of net actuarial loss 340  225  295  68  66  69  
Amortization of prior service cost/(credit) 25  26  28  (48) (48) (41) 
Amortization of net actuarial loss/prior service cost due to settlements and curtailments7  9  —  —  —  —  
Special termination benefits11  13  8  2  8  7  
GROSS BENEFIT COST/(CREDIT)166  139  208  (191) (133) (127) 
Dividends on ESOP preferred stock—  —  —  (19) (28) (37) 
NET PERIODIC BENEFIT COST/(CREDIT)$166  $139  $208  $(210) $(161) $(164) 
CHANGE IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN AOCI
Net actuarial loss/(gain) - current year$1,027  $1,580  $(207) $(1,434) 
Prior service cost/(credit) - current year3  9  (136) —  
Amortization of net actuarial loss(340) (225) (68) (66) 
Amortization of prior service (cost)/credit(25) (26) 48  48  
Amortization of net actuarial loss/prior service costs due to settlements and curtailments(7) (9) —  —  
Currency translation and other(74) (84) (26) 14  
TOTAL CHANGE IN AOCI584  1,245  (389) (1,438) 
NET AMOUNTS RECOGNIZED IN PERIODIC BENEFIT COST AND AOCI$750  $1,384  $(599) $(1,599) 
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, 2021, are as follows:
Pension BenefitsOther Retiree Benefits
Net actuarial loss$401  $47  
Prior service cost/(credit)25  (59) 
Defined Benefit Plan, Assumptions [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 BenefitsOther Retiree Benefits
As of June 302020201920202019
Discount rate1.5 % 1.9 % 3.1 % 3.7 %
Rate of compensation increase2.5 %2.6 %N/AN/A
Health care cost trend rates assumed for next yearN/AN/A6.6 %6.6 %
Rate to which the health care cost trend rate is assumed to decline (ultimate trend rate)N/AN/A4.9 %4.9 %
Year that the rate reaches the ultimate trend rateN/AN/A20262026
(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 BenefitsOther Retiree Benefits
Years ended June 30202020192018202020192018
Discount rate1.9 %2.5 %2.4 %3.7 %4.2 %3.9 %
Expected return on plan assets6.6 %6.6 %6.8 %8.4 %8.3 %8.3 %
Rate of compensation increase2.6 %2.6 %3.0 %N/AN/AN/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$56  $(43) 
Effect on the accumulated postretirement benefit obligation669  (543) 
Schedule of Allocation of Plan Assets [Table Text Block]
Our target asset allocation for the year ended June 30, 2020, and actual asset allocation by asset category as of June 30, 2020 and 2019, were as follows:
Target Asset AllocationActual Asset Allocation at June 30
Pension BenefitsOther Retiree
Benefits		Pension BenefitsOther Retiree Benefits
Asset Category2020201920202019
Cash— %2 %1 %1 %3 %3 %
Debt securities67 %3 %66 %63 %2 %2 %
Equity securities33 %95 %33 %36 %95 %95 %
TOTAL100 %100 %100 %100 %100 %100 %
Pension and Postretirement Plan Assets By Fair Value Hierarchy [Table Text Block] Investments valued using net asset value as a practical expedient 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 BenefitsOther Retiree Benefits
As of June 30Fair Value Hierarchy Level20202019Fair Value Hierarchy Level20202019
ASSETS AT FAIR VALUE
Cash and cash equivalents1$61  $47  1$121  $111  
Company common stock—  —  1217  179  
Company preferred stock (1)
—  —  25,139  4,657  
Fixed income securities (2)
21,991  265  212  1  
Insurance contracts (3)
3115  113  —  —  
TOTAL ASSETS IN THE FAIR VALUE HIERARCHY2,167  425  5,489  4,948  
Investments valued at net asset value (4)
9,317  10,957  129  148  
TOTAL ASSETS AT FAIR VALUE$11,484  11,382  $5,618  5,096  
(1)Company preferred stock is valued based on the value of Company common stock and is presented net of ESOP debt discussed below.
(2)Fixed income securities, classified as Level 2, are estimated by using pricing models or quoted prices of securities with similar characteristics.
(3)Fair values of insurance contracts are valued based on either their cash equivalent value or models that project future cash flows and discount the future amounts to a present value using market-based observable inputs, including credit risk and interest rate curves. The activity for Level 3 assets is not significant for all years presented.
(4)Investments valued using net asset value as a practical expedient are primarily equity and fixed income collective funds.
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 30Pension
Benefits		Other Retiree
Benefits
EXPECTED BENEFIT PAYMENTS
2021$559  $196  
2022534  205  
2023556  214  
2024573  221  
2025608  225  
2026 - 20303,258  1,199  
Employee Stock Ownership Plan (ESOP) Disclosures [Table Text Block] The number of preferred shares outstanding at June 30 was as follows:
Shares in thousands202020192018
Allocated29,591  31,600  34,233  
Unallocated2,479  3,259  4,117  
TOTAL SERIES A32,070  34,859  38,350  
Allocated27,894  26,790  25,895  
Unallocated24,418  26,471  28,512  
TOTAL SERIES B52,312  53,261  54,407