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EMPLOYEE BENEFIT PLANS | 12 Months Ended
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Jun. 30, 2017
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Retirement Income Plans The Company has various retirement income plans for eligible domestic and international employees. As of June 30, 2017 and 2016, the domestic retirement income plans are frozen for most participants, and the benefits of the domestic retirement income plans are generally based on either employee years of service and compensation or a stated dollar amount per year of service. The Company contributed $31, $31 and $13 to its domestic retirement income plans during fiscal years 2017, 2016 and 2015, respectively. The Company's funding policy is to contribute amounts sufficient to meet benefit payments and minimum funding requirements as set forth in employee benefit tax laws plus additional amounts as the Company may determine to be appropriate. Retirement Health Care Plans The Company provides certain health care benefits for employees who meet age, participation and length of service requirements at retirement. The plans pay stated percentages of covered expenses after annual deductibles have been met or stated reimbursements up to a specified dollar subsidy amount. Benefits paid take into consideration payments by Medicare for the domestic plan. The plans are funded as claims are paid, and the Company has the right to modify or terminate certain plans. The assumed domestic health care cost trend rate used in measuring the accumulated benefit obligation (ABO) was 6.50% for both medical and prescription drugs for fiscal year 2017. These rates have been assumed to gradually decrease each year until an assumed ultimate trend of 4.5% is reached in 2037. The health care cost trend rate assumption has a minimal effect on the amounts reported due primarily to the existence of benefit cap provisions in the Company’s domestic plan. As such, the effect of a hypothetical 100 basis point increase or decrease in the assumed domestic health care cost trend rate on the total service and interest cost components as well as the postretirement benefit obligation would have been immaterial for each of the fiscal years ended June 30, 2017, 2016 and 2015. Benefit Obligation and Funded Status Summarized information for the Company’s retirement income and retirement health care plans as of and for the fiscal years ended June 30 is as follows:
| Retirement Income |  | Retirement Health Care
| 2017 |  | 2016 |  | 2017 |  | 2016
Change in benefit obligations: |  |  |  |  |  |  |
Benefit obligation as of beginning of year | $ | 673 |  |  | $ | 639 |  |  | $ | 47 |  |  | $ | 45 |
Service cost | 1 |  |  | 1 |  |  | — |  |  | — |
Interest cost | 22 |  |  | 26 |  |  | 2 |  |  | 2 |
Actuarial loss (gain) | (21 | ) |  | 51 |  |  | (4 | ) |  | 2 |
Plan amendments | — |  |  | (1 | ) |  | — |  |  | — |
Translation and other adjustments | — |  |  | (1 | ) |  | — |  |  | — |
Benefits paid | (42 | ) |  | (42 | ) |  | (3 | ) |  | (2 | )
Benefit obligation as of end of year | 633 |  |  | 673 |  |  | 42 |  |  | 47 |
Change in plan assets: |  |  |  |  |  |  |
Fair value of assets as of beginning of year | $ | 423 |  |  | $ | 409 |  |  | $ | — |  |  | $ | — |
Actual return on plan assets | 22 |  |  | 26 |  |  | — |  |  | — |
Employer contributions | 31 |  |  | 31 |  |  | 3 |  |  | 2 |
Benefits paid | (42 | ) |  | (42 | ) |  | (3 | ) |  | (2 | )
Translation and other adjustments | — |  |  | (1 | ) |  | — |  |  | — |
Fair value of plan assets as of end of year | 434 |  |  | 423 |  |  | — |  |  | — |
Accrued benefit cost, net funded status | $ | (199 | ) |  | $ | (250 | ) |  | $ | (42 | ) |  | $ | (47 | )
Amount recognized in the balance sheets consists of: |  |  |  |  |  |  |
Pension benefit assets | $ | 2 |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |
Current accrued benefit liability | (15 | ) |  | (14 | ) |  | (3 | ) |  | (3 | )
Non-current accrued benefit liability | (186 | ) |  | (237 | ) |  | (39 | ) |  | (44 | )
Accrued benefit cost, net | $ | (199 | ) |  | $ | (250 | ) |  | $ | (42 | ) |  | $ | (47 | )
For the retirement income plans, the benefit obligation is the projected benefit obligation (PBO). For the retirement health care plan, the benefit obligation is the ABO. The ABO for all retirement income plans was $632, $596 and $559 as of June 30, 2017, 2016 and 2015, respectively. Retirement income plans with ABO in excess of plan assets as of June 30 were as follows:
| ABO Exceeds the Fair Value of Plan Assets
| 2017 |  | 2016
Projected benefit obligation | $ | 611 |  |  | $ | 651 |
Accumulated benefit obligation | 610 |  |  | 650 |
Fair value of plan assets | 409 |  |  | 399 |
Net Periodic Benefit Cost The net cost of the retirement income and health care plans for the fiscal years ended June 30 included the following components:
| Retirement Income |  | Retirement Health Care
| 2017 |  | 2016 |  | 2015 |  | 2017 |  | 2016 |  | 2015
Service cost | $ | 1 |  |  | $ | 1 |  |  | $ | 2 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Interest cost | 22 |  |  | 26 |  |  | 25 |  |  | 2 |  |  | 2 |  |  | 2 |
Expected return on plan assets | (20 | ) |  | (17 | ) |  | (20 | ) |  | — |  |  | — |  |  | — |
Amortization of unrecognized items | 11 |  |  | 10 |  |  | 12 |  |  | (2 | ) |  | (3 | ) |  | 2 |
Total | $ | 14 |  |  | $ | 20 |  |  | $ | 19 |  |  | $ | — |  |  | $ | (1 | ) |  | $ | 4 |
Items not yet recognized as a component of postretirement expense as of June 30, 2017, consisted of:
| Retirement Income |  | Retirement Health Care
Net actuarial loss (gain) | $ | 262 |  |  | $ | (16 | )
Prior service benefit | — |  |  | (5 | )
Net deferred income tax (assets) liabilities | (98 | ) |  | 7 |
Accumulated other comprehensive loss (income) | $ | 164 |  |  | $ | (14 | )
Net actuarial loss (gain) recorded in Accumulated other comprehensive net (losses) income for the fiscal year ended June 30, 2017, included the following:
| Retirement Income |  | Retirement Health Care
Net actuarial loss (gain) as of beginning of year | $ | 296 |  |  | $ | (13 | )
Amortization during the year | (11 | ) |  | 1 |
Loss (gain) during the year | (23 | ) |  | (4 | )
Net actuarial loss (gain) as of end of year | $ | 262 |  |  | $ | (16 | )
The Company uses the straight-line amortization method for unrecognized prior service costs and benefits. In fiscal year 2018, the Company expects to recognize, on a pre-tax basis, $7 of the net actuarial loss as a component of net periodic benefit cost for the retirement income plans. In addition, in fiscal year 2018, the Company expects to recognize, on a pre-tax basis, $3 of the net actuarial gain as a component of net periodic benefit cost for the retirement health care plans. Assumptions Weighted-average assumptions used to estimate the actuarial present value of benefit obligations as of June 30 were as follows:
| Retirement Income |  | Retirement Health Care
| 2017 |  | 2016 |  | 2017 |  | 2016
Discount rate | 3.70 | % |  | 3.42 | % |  | 3.66 | % |  | 3.42 | %
Rate of compensation increase | 2.83 | % |  | 2.92 | % |  | n/a |  |  | n/a |
Weighted-average assumptions used to estimate the retirement income and retirement health care costs as of June 30 were as follows:
| Retirement Income
| 2017 |  | 2016 |  | 2015
Discount rate | 3.42 | % |  | 4.20 | % |  | 4.05 | %
Rate of compensation increase | 2.92 | % |  | 3.37 | % |  | 4.46 | %
Expected return on plan assets | 4.73 | % |  | 4.34 | % |  | 5.28 | %
| Retirement Health Care
| 2017 |  | 2016 |  | 2015
Discount rate | 3.42 | % |  | 4.16 | % |  | 4.00 | %
The expected long-term rate of return assumption is based on an analysis of historical experience of the portfolio and the summation of prospective returns for each asset class in proportion to the fund’s current asset allocation. Expected Benefit Payments Expected benefit payments for the Company’s retirement income and retirement health care plans as of June 30, 2017, were as follows:
| Retirement Income |  | Retirement Health Care
2018 | $ | 40 |  |  | $ | 3 |
2019 | 51 |  |  | 3 |
2020 | 38 |  |  | 3 |
2021 | 37 |  |  | 3 |
2022 | 37 |  |  | 3 |
Fiscal years 2023 through 2027 | 190 |  |  | 12 |
Expected benefit payments are based on the same assumptions used to measure the benefit obligations and include estimated future employee service. Plan Assets The target allocations and weighted average asset allocations by asset category of the investment portfolio for the Company’s domestic retirement income plans as of June 30 were:
| % Target Allocation |  | % of Plan Assets
| 2017 |  | 2016 |  | 2017 |  | 2016
U.S. equity | 11 | % |  | 11 | % |  | 11 | % |  | 11 | %
International equity | 12 | % |  | 12 | % |  | 12 | % |  | 11 | %
Fixed income | 74 | % |  | 74 | % |  | 73 | % |  | 74 | %
Other | 3 | % |  | 3 | % |  | 4 | % |  | 4 | %
Total | 100 | % |  | 100 | % |  | 100 | % |  | 100 | %
The target asset allocation is determined based on the optimal balance between risk and return and, at times, may be adjusted to achieve the plan’s overall investment objective to generate sufficient resources to pay current and projected plan obligations over the life of the domestic retirement income plan. The following table sets forth by level within the fair value hierarchy, the retirement income plans’ assets carried at fair value as of June 30:
| 2017
| Level 1 |  | Level 2 |  | Total
Cash equivalents | $ | 2 |  |  | $ | — |  |  | $ | 2 |
Total assets in the fair value hierarchy | 2 |  |  | — |  |  | 2 |
Common collective trusts measured at net asset value |  |  |  |  |
Bond funds |  |  |  |  |  |  | $ | 310 |
International equity funds |  |  |  |  |  |  | 64 |
Domestic equity funds |  |  |  |  |  |  | 46 |
Real estate fund |  |  |  |  |  |  | 12 |
Total common collective trusts measured at net asset value |  |  |  |  |  |  | 432 |
Total assets at fair value |  |  |  |  |  |  | $ | 434 |
| 2016
| Level 1 |  | Level 2 |  | Total
Cash equivalents | $ | 2 |  |  | $ | — |  |  | $ | 2 |
Total assets in the fair value hierarchy | 2 |  |  | — |  |  | 2 |
Common collective trusts measured at net asset value |  |  |  |  |
Bond funds |  |  |  |  |  |  | $ | 307 |
International equity funds |  |  |  |  |  |  | 56 |
Domestic equity funds |  |  |  |  |  |  | 44 |
Real estate fund |  |  |  |  |  |  | 14 |
Total common collective trusts measured at net asset value |  |  |  |  |  |  | 421 |
Total assets at fair value |  |  |  |  |  |  | $ | 423 |
The carrying value of cash equivalents approximates its fair value as of June 30, 2017 and 2016. Common collective trust funds are not publicly traded and are valued at a net asset value unit price determined by the portfolio’s sponsor based on the fair value of underlying assets held by the common collective trust fund on June 30, 2017 and 2016. The common collective trusts are invested in various trusts that attempt to achieve their investment objectives by investing primarily in other collective investment funds which have characteristics consistent with each trust’s overall investment objective and strategy. Defined Contribution Plans The Company has various defined contribution plans for eligible domestic and international employees. The aggregate cost of the domestic defined contribution plans was $47, $45 and $45 in fiscal years 2017, 2016 and 2015, respectively. The aggregate cost of the international defined contribution plans was $3 for the fiscal years ended June 30, 2017, 2016 and 2015.

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