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EMPLOYEE BENEFIT PLANS | 12 Months Ended
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Jun. 30, 2021
Retirement Benefits [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, 2021 and 2020, the domestic retirement income plans were frozen for most participants, and the benefits of the domestic retirement income plans were generally based on either employee years of service and compensation or a stated dollar amount per year of service. The Company contributed $14, $13 and $63 to its domestic retirement income plans during fiscal years 2021, 2020 and 2019, 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. 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
| 2021 |  | 2020 |  | 2021 |  | 2020
Change in benefit obligations: |  |  |  |  |  |  |
Benefit obligation as of beginning of year | $ | 628 |  |  | $ | 604 |  |  | $ | 36 |  |  | $ | 34 |
Service cost | 2 |  |  | 1 |  |  | — |  |  | — |
Interest cost | 15 |  |  | 20 |  |  | 1 |  |  | 1 |
Actuarial loss (gain) | 12 |  |  | 43 |  |  | — |  |  | 4 |
Plan amendments | — |  |  | — |  |  | — |  |  | — |
Translation and other adjustments | 8 |  |  | (1) |  |  | 1 |  |  | — |
Plan settlement | (12) |  |  | — |  |  | — |  |  | — |
Benefits paid | (32) |  |  | (39) |  |  | (2) |  |  | (3) |
Benefit obligation as of end of year | $ | 621 |  |  | $ | 628 |  |  | $ | 36 |  |  | $ | 36 |
Change in plan assets: |  |  |  |  |  |  |
Fair value of assets as of beginning of year | $ | 507 |  |  | $ | 485 |  |  | $ | — |  |  | $ | — |
Actual return on plan assets | 26 |  |  | 48 |  |  | — |  |  | — |
Employer contributions | 15 |  |  | 13 |  |  | 2 |  |  | 3 |
Benefits paid | (44) |  |  | (39) |  |  | (2) |  |  | (3) |
Translation and other adjustments | 2 |  |  | — |  |  | — |  |  | — |
Fair value of plan assets as of end of year | 506 |  |  | 507 |  |  | — |  |  | — |
Accrued benefit cost, net funded status | $ | (115) |  |  | $ | (121) |  |  | $ | (36) |  |  | $ | (36) |
Amount recognized in the balance sheets consists of: |  |  |  |  |  |  |
Pension benefit assets | $ | 61 |  |  | $ | 52 |  |  | $ | — |  |  | $ | — |
Current accrued benefit liability | (12) |  |  | (11) |  |  | (2) |  |  | (2) |
Non-current accrued benefit liability | (164) |  |  | (162) |  |  | (34) |  |  | (34) |
Accrued benefit cost, net | $ | (115) |  |  | $ | (121) |  |  | $ | (36) |  |  | $ | (36) |
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 accumulated benefit obligation (ABO). The ABO for all retirement income plans was $618, $626 and $603 as of June 30, 2021, 2020 and 2019, respectively. Retirement income plans with ABO or PBO in excess of plan assets as of June 30 were as follows:
| ABO Exceeds the Fair Value of Plan Assets | PBO Exceeds the Fair Value of Plan Assets
| 2021 |  | 2020 | 2021 | 2020
Projected benefit obligation | $ | 176 |  |  | $ | 172 |  | $ | 178 |  | $ | 173 |
Accumulated benefit obligation | 174 |  |  | 170 |  | 175 |  | 172 |
Fair value of plan assets | — |  |  | — |  | 2 |  | 1 |
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
| 2021 |  | 2020 |  | 2019 |  | 2021 |  | 2020 |  | 2019
Service cost | $ | 2 |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Interest cost | 15 |  |  | 20 |  |  | 23 |  |  | 1 |  |  | 1 |  |  | 2 |
Expected return on plan assets | (16) |  |  | (19) |  |  | (18) |  |  | — |  |  | — |  |  | — |
Settlement loss recognized | 5 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Amortization of unrecognized items | 11 |  |  | 10 |  |  | 9 |  |  | (2) |  |  | (3) |  |  | (3) |
Total | $ | 17 |  |  | $ | 12 |  |  | $ | 15 |  |  | $ | (1) |  |  | $ | (2) |  |  | $ | (1) |
Service cost component of the net periodic benefit cost is reflected in employee benefit costs, all other components are reflected in Other (income) expenses, net. Items not yet recognized as a component of postretirement expense as of June 30, 2021, consisted of:
| Retirement Income |  | Retirement Health Care
Net actuarial loss (gain) | $ | 226 |  |  | $ | (10) |
Prior service benefit | — |  |  | — |
Net deferred income tax (assets) liabilities | (54) |  |  | 2 |
Accumulated other comprehensive loss (income) | $ | 172 |  |  | $ | (8) |
Net actuarial loss (gain) recorded in Accumulated other comprehensive net (loss) income for the fiscal year ended June 30, 2021, included the following:
| Retirement Income |  | Retirement Health Care
Net actuarial loss (gain) as of beginning of year | $ | 240 |  |  | $ | (12) |
Amortization during the year | (16) |  |  | 2 |
Loss (gain) during the year | 2 |  |  | — |
Net actuarial loss (gain) as of end of year | $ | 226 |  |  | $ | (10) |
The Company uses the straight-line amortization method for unrecognized prior service costs and benefits. Assumptions Weighted-average assumptions used to estimate the actuarial present value of benefit obligations were as follows as of June 30:
| Retirement Income |  | Retirement Health Care
| 2021 |  | 2020 |  | 2021 |  | 2020
Discount rate | 2.56 | % |  | 2.45 | % |  | 2.61 | % |  | 2.51 | %
Rate of compensation increase | 3.02 | % |  | 2.92 | % |  | n/a |  | n/a
Interest crediting rate | 2.57 | % |  | 1.9 | % |  | n/a |  | n/a
Weighted-average assumptions used to estimate the retirement income and retirement health care costs were as follows as of June 30:
| Retirement Income
| 2021 |  | 2020 |  | 2019
Discount rate | 2.45 | % |  | 3.41 | % |  | 4.10 | %
Rate of compensation increase | 2.92 | % |  | 2.86 | % |  | 2.87 | %
Expected return on plan assets | 3.08 | % |  | 3.95 | % |  | 4.33 | %
Interest crediting rate | 1.92 | % |  | 3.01 | % |  | 3.42 | %
| Retirement Health Care
| 2021 |  | 2020 |  | 2019
Discount rate | 2.51 | % |  | 3.35 | % |  | 4.01 | %
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. The actuarial benefit obligation loss incurred during the fiscal year 2021 was primarily driven by the increase in interest crediting rate, while the actuarial benefit obligation loss during fiscal year 2020 as primarily driven by the decrease in discount rate. In both years, asset gains partially offset the benefit obligation losses. Expected Benefit Payments Expected benefit payments for the Company’s retirement income and retirement health care plans as of June 30, 2021, were as follows:
| Retirement Income |  | Retirement Health Care
2022 | $ | 40 |  |  | $ | 2 |
2023 | 53 |  |  | 2 |
2024 | 39 |  |  | 2 |
2025 | 38 |  |  | 2 |
2026 | 38 |  |  | 2 |
Fiscal years 2027 through 2031 | 183 |  |  | 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
| 2021 |  | 2020 |  | 2021 |  | 2020
U.S. equity | 3 | % |  | 5 | % |  | 3 | % |  | 5 | %
International equity | 2 | % |  | 5 | % |  | 2 | % |  | 5 | %
Fixed income | 95 | % |  | 90 | % |  | 94 | % |  | 90 | %
Other | — | % |  | — | % |  | 1 | % |  | — | %
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 the retirement income plans’ assets carried at fair value as of June 30:
|  | 2021
Common collective trusts measured at net asset value |  |
Bond funds |  | $ | 459 |
International equity funds |  | 28 |
Domestic equity funds |  | 14 |
Short-term investment fund |  | 3 |
Real estate fund |  | 2 |
Total assets at fair value |  | $ | 506 |
|  | 2020
Common collective trusts measured at net asset value |  |
Bond funds |  | $ | 444 |
International equity funds |  | 36 |
Domestic equity funds |  | 23 |
Short-term investment fund |  | 3 |
Real estate fund |  | 1 |
Total assets at fair value |  | $ | 507 |
Common collective trust funds are not publicly traded and were 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, 2021 and 2020. The common collective trusts are invested in various trusts that attempt to achieve their investment objectives by investing primarily in other collective investment funds that 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 $65, $54 and $49 in fiscal years 2021, 2020 and 2019, respectively. The aggregate cost of the international defined contribution plans was $4, $4 and $4 for the fiscal years ended June 30, 2021, 2020 and 2019, respectively.

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