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PENSION, DEFERRED COMPENSATION AND POST-RETIREMENT BENEFIT PLANS (Tables)

12 Months Ended

Jun. 30, 2021

Retirement Benefits [Abstract]

Schedule of components of net periodic benefit cost for pension and other post-retirement benefit plans

The significant components of the above-mentioned plans as of and for the years ended June 30 are summarized as follows:

						Pension Plans																								Other than Pension Plans
						U.S.												International												Post-retirement
(In millions)						2021						2020						2021						2020						2021						2020
Change in benefit obligation:
Benefit obligation at beginning of year						$	1,082					$	966					$	636					$	631					$	190					$	183
Service cost						45						39						36						36						2						3
Interest cost						31						35						10						11						6						6
Plan participant contributions						—						—						7						6						—						—
Actuarial loss (gain)						(10)						101						(9)						(12)						11						6
Foreign currency exchange rate impact						—						—						67						(1)						6						(1)
Benefits, expenses, taxes and premiums paid						(74)						(59)						(35)						(32)						(6)						(7)
Plan amendments						1						—						—						—						—						—
Settlements						—						—						(22)						(3)						—						—
Special termination benefits						—						—						10						—						—						—
Benefit obligation at end of year						$	1,075					$	1,082					$	700					$	636					$	209					$	190
Change in plan assets:
Fair value of plan assets at beginning of year						$	930					$	832					$	611					$	577					$	27					$	31
Actual return on plan assets						106						109						11						43						3						3
Foreign currency exchange rate impact						—						—						69						(4)						—						—
Employer contributions						19						48						40						25						—						—
Plan participant contributions						—						—						7						6						—						—
Settlements						—						—						(22)						(4)						—						—
Benefits, expenses, taxes and premiums paid from plan assets						(74)						(59)						(35)						(32)						(6)						(7)
Fair value of plan assets at end of year						$	981					$	930					$	681					$	611					$	24					$	27
Funded status						$	(94)					$	(152)					$	(19)					$	(25)					$	(185)					$	(163)
Amounts recognized in the Balance Sheet consist of:
Other assets						$	35					$	—					$	127					$	127					$	—					$	—
Other accrued liabilities						(23)						(23)						(4)						(4)						(1)						—
Other noncurrent liabilities						(106)						(129)						(142)						(148)						(184)						(163)
Funded status						(94)						(152)						(19)						(25)						(185)						(163)
Accumulated other comprehensive loss						200						283						15						24						27						17
Net amount recognized						$	106					$	131					$	(4)					$	(1)					$	(158)					$	(146)

For the twelve months ended June 30, 2021, the actuarial gains and losses affecting the benefit obligations were not material. For the twelve months ended June 30, 2020, the $101 million actuarial loss relating to the U.S. pension plans was primarily due to declines in the discount rates relating to the Retirement Growth Account Plan and the Restoration Plan from 3.8% to 3.0% and 3.4% to 2.5%, respectively. The decline in the discount rates as of June 30, 2020 were a result of lower rates on highly rated long-term bonds.

Net periodic benefit costs and weighted-average assumptions

						Pension Plans																																				Other than Pension Plans
						U.S.																		International																		Post-retirement
($ in millions)						2021						2020						2019						2021						2020						2019						2021						2020						2019
Components of net periodic benefit cost:
Service cost						$	45					$	39					$	38					$	36					$	36					$	30					$	2					$	3					$	3
Interest cost						31						35						37						10						11						13						6						6						7
Expected return on assets						(53)						(53)						(55)						(14)						(14)						(14)						(1)						(2)						(2)
Amortization of:
Actuarial loss						20						15						11						4						6						3						—						—						—
Prior service cost						—						—						1						(1)						—						(1)						—						—						—
Settlements						—						—						—						—						—						1						—						—						—
Special termination benefits						—						—						—						10						—						—						—						—						—
Net periodic benefit cost						$	43					$	36					$	32					$	45					$	39					$	32					$	7					$	7					$	8
Assumptions used to determine benefit obligations at June 30(1):
Discount rate						2.50 – 3.00%						2.50 – 3.00%						3.40 – 3.80%						0.50 – 7.25%						0.50 – 7.00%						.25 – 8.50%						2.70 – 9.00%						2.70 – 9.00%						3.25 – 9.75%
Rate of compensation increase						2.50 – 8.00%						2.50 – 8.00%						2.50 – 8.00%						1.00 – 5.00%						1.00 – 5.50%						1.00– 5.50%						N/A						N/A						N/A
Assumptions used to determine net periodic benefit cost for the year ended June 30(2):
Discount rate						2.50 – 3.00%						3.40 – 3.80%						4.10 – 4.30%						.50 – 7.00%						.25– 8.50%						.50 – 7.50%						2.70 – 9.00%						3.25 – 9.75%						3.75 – 9.75%
Expected return on assets						6.25		%				6.75		%				6.75		%				1.25 – 7.00%						1.50 – 8.50%						1.50 – 7.50%						6.25		%				6.75		%				6.75		%
Rate of compensation increase						2.50 – 8.00%						2.50 – 8.00%						2.50– 8.00%						1.00 – 5.50%						1.00 – 5.50%						1.00 – 5.50%						N/A						N/A						N/A

(1) The weighted-average assumptions used to determine benefit obligations at June 30, 2021 were as follows:

a.Discount rate - 2.94% (U.S.), 1.59% (International) and 2.92% (Other than Pension Plans, Post-retirement)

b.Rate of compensation increase - 2.50% - 8.00%, graded (U.S.), 2.81% (International) and N/A (Other than Pension Plans, Post-retirement)

(2) The weighted-average assumptions used to determine net periodic benefit cost for the year ended June 30, 2021 were as follows:

a.Discount rate - 2.93% (U.S.), 1.44% (International) and 2.90% (Other than Pension Plans, Post-retirement)

b.Expected return on assets - 6.25% (U.S. and Other than Pension Plans, Post-retirement) and 2.06% (International)

c.Rate of compensation increase - 2.50% - 8.00%, graded (U.S.), 2.72% (International) and N/A (Other than Pension Plans, Post-retirement)

Amounts recognized in AOCI (before tax)

Amounts recognized in AOCI (before tax) as of June 30, 2021 are as follows:

						Pension Plans												Other than Pension Plans
(In millions)						U.S.						International						Post-retirement						Total
Net actuarial losses, beginning of year						$	282					$	30					$	17					$	329
Actuarial losses (gains) recognized						(64)						(6)						10						(60)
Amortization and settlements included in net periodic benefit cost						(20)						(4)						—						(24)
Translation adjustments						—						—						—						—
Net actuarial losses, end of year						198						20						27						245
Net prior service cost, beginning of year						1						(6)						—						(5)
Amortization included in net periodic benefit cost						1						1						—						2
Net prior service cost, end of year						2						(5)						—						(3)
Total amounts recognized in AOCI						$	200					$	15					$	27					$	242

Projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the company's pension plans

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the Company’s pension plans at June 30 are as follows:

						Pension Plans																																				Other than Pension Plans
						Retirement Growth Account												Restoration												International												Post-retirement
(In millions)						2021						2020						2021						2020						2021						2020						2021						2020
Projected benefit obligation						$	946					$	940					$	129					$	142					$	700					$	636					$	209					$	190
Accumulated benefit obligation						$	897					$	887					$	113					$	124					$	636					$	576					$	—					$	—
Fair value of plan assets						$	981					$	930					$	—					$	—					$	681					$	611					$	24					$	27

Expected cash flows

The expected cash flows for the Company’s pension and post-retirement plans are as follows:

						Pension Plans												Other than Pension Plans
(In millions)						U.S.						International						Post-retirement
Expected employer contributions for year ending June 30, 2022						$	—					$	29					—
Expected benefit payments for year ending June 30,
2022						70						38						9
2023						52						37						9
2024						51						35						10
2025						52						36						11
2026						52						36						11
Years 2027 – 2031						292						172						63

Target asset allocation

The Company’s target asset allocation at June 30, 2021 is as follows:

						Pension Plans												Other than Pension Plans
						U.S.						International						Post-retirement
Equity						42		%				13		%				42		%
Debt securities						50		%				63		%				50		%
Other						8		%				24		%				8		%
						100		%				100		%				100		%

Fair values of the company's pension and post-retirement plan assets by asset category

The following table presents the fair values of the Company’s pension and post-retirement plan assets by asset category as of June 30, 2021:

(In millions)						Level 1						Level 2						Level 3						Assets Measured at NAV						Total
Cash and cash equivalents						$	2					$	—					$	—					$	—					$	2
Short term investment funds						—						7						—						6						13
Government and agency securities						—						124						—						—						124
Commingled funds						455						660						—						274						1,389
Insurance contracts						—						—						54						—						54
Limited partnerships and hedge fund investments						—						—						—						104						104
Total						$	457					$	791					$	54					$	384					$	1,686

The following table presents the fair values of the Company’s pension and post-retirement plan assets by asset category as of June 30, 2020:

(In millions)						Level 1						Level 2						Level 3						Assets Measured at NAV						Total
Cash and cash equivalents						$	2					$	—					$	—					$	—					$	2
Short term investment funds						—						7						—						6						13
Government and agency securities						—						152						—						—						152
Commingled funds						386						666						—						207						1,259
Insurance contracts						—						—						49						—						49
Limited partnerships and hedge fund investments						—						—						—						93						93
Total						$	388					$	825					$	49					$	306					$	1,568

Changes in Level 3 plan assets

The following table presents the changes in Level 3 plan assets:

						June 30
(In millions)						2021						2020
Insurance Contracts
Balance at beginning of year						$	49					$	49
Actual return on plan assets:
Relating to assets still held at the reporting date						1						2
Purchases, sales, issuances and settlements, net						(1)						(2)
Foreign exchange impact						5						—
Balance at end of year						$	54					$	49

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