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EMPLOYEE BENEFIT PLANS | 12 Months Ended
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Jun. 30, 2025
Retirement Benefits [Abstract] |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Retirement Income Plans The Company maintains various retirement income plans for eligible domestic and international employees. The remaining domestic retirement income plans are frozen. The Company contributed $13, $14 and $14 to its domestic retirement income plans during fiscal years 2025, 2024 and 2023, respectively. The Company’s funding policy is to contribute amounts sufficient to meet benefit payments. In the second quarter of fiscal year 2024, the Company settled plan benefits of its domestic qualified pension plan (the Plan) and recorded a one-time noncash charge, net of curtailment gain, of $171 before taxes ($130 after tax) in the Company’s consolidated statements of earnings and comprehensive income. Following settlement, remaining excess plan assets of $3 and $19 were contributed to the Company’s domestic defined contribution plan during fiscal years 2025 and 2024, respectively. 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
| 2025 |  | 2024 |  | 2025 |  | 2024
Change in benefit obligations: |  |  |  |  |  |  |
Benefit obligation as of beginning of year | $ | 123 |  |  | $ | 476 |  |  | $ | 19 |  |  | $ | 26 |
Service cost | 1 |  |  | 1 |  |  | — |  |  | — |
Interest cost | 6 |  |  | 12 |  |  | 1 |  |  | 1 |
Actuarial loss (gain) | 2 |  |  | (26) |  |  | (2) |  |  | (2) |
Plan amendments | — |  |  | — |  |  | — |  |  | (4) |
Plan settlement | — |  |  | (312) |  |  | — |  |  | — |
Benefits paid | (16) |  |  | (26) |  |  | (1) |  |  | (2) |
Translation and other adjustments | 1 |  |  | (2) |  |  | — |  |  | — |
Benefit obligation as of end of year | $ | 117 |  |  | $ | 123 |  |  | $ | 17 |  |  | $ | 19 |
Change in plan assets: |  |  |  |  |  |  |
Fair value of assets as of beginning of year | $ | 25 |  |  | $ | 381 |  |  | $ | — |  |  | $ | — |
Actual return on plan assets | 3 |  |  | (13) |  |  | — |  |  | — |
Employer contributions | 15 |  |  | 15 |  |  | 1 |  |  | 2 |
Plan settlement | — |  |  | (312) |  |  | — |  |  | — |
Benefits paid | (16) |  |  | (26) |  |  | (1) |  |  | (2) |
Transfer to domestic defined contribution plan | — |  |  | (19) |  |  | — |  |  | — |
Translation and other adjustments | — |  |  | (1) |  |  | — |  |  | — |
Fair value of plan assets as of end of year | 27 |  |  | 25 |  |  | — |  |  | — |
Accrued benefit cost, net funded status | $ | (90) |  |  | $ | (98) |  |  | $ | (17) |  |  | $ | (19) |
Amount recognized in the balance sheets consists of: |  |  |  |  |  |  |
Non-current pension benefit assets | $ | 9 |  |  | $ | 7 |  |  | $ | — |  |  | $ | — |
Current accrued benefit liability | (12) |  |  | (12) |  |  | (2) |  |  | (2) |
Non-current accrued benefit liability | (87) |  |  | (93) |  |  | (15) |  |  | (17) |
Accrued benefit cost, net | $ | (90) |  |  | $ | (98) |  |  | $ | (17) |  |  | $ | (19) |
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 $115, $105 and $474 as of June 30, 2025, 2024 and 2023, 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
| 2025 |  | 2024 | 2025 | 2024
Projected benefit obligation | $ | 98 |  |  | $ | 105 |  | $ | 100 |  | $ | 108 |
Accumulated benefit obligation | 97 |  |  | 104 |  | 98 |  | 105 |
Fair value of plan assets | — |  |  | — |  | 2 |  | 2 |
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
| 2025 |  | 2024 |  | 2023 |  | 2025 |  | 2024 |  | 2023
Service cost | $ | 1 |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Interest cost | 6 |  |  | 12 |  |  | 18 |  |  | 1 |  |  | 1 |  |  | 1 |
Expected return on plan assets | (1) |  |  | (2) |  |  | (10) |  |  | — |  |  | — |  |  | — |
Amortization of unrecognized items | — |  |  | 3 |  |  | 8 |  |  | (2) |  |  | (2) |  |  | (2) |
Curtailment gain recognized | — |  |  | (6) |  |  | — |  |  | — |  |  | — |  |  | — |
Settlement loss recognized | (2) |  |  | 179 |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | 4 |  |  | $ | 187 |  |  | $ | 17 |  |  | $ | (1) |  |  | $ | (1) |  |  | $ | (1) |
The service cost component of the net periodic benefit cost is reflected in employee benefit costs. All other components of net periodic benefit cost, except for the net settlement loss recognized in relation to the settlement of the Plan recognized in the second quarter of fiscal year 2024, are reflected in Other (income) expense, net. Items not yet recognized as a component of postretirement expense as of June 30, 2025 consisted of:
| Retirement Income |  | Retirement Health Care
Net actuarial loss (gain) | $ | 19 |  |  | $ | (14) |
Prior service benefit | — |  |  | (4) |
Net deferred income tax (assets) liabilities | (4) |  |  | 4 |
Accumulated other comprehensive loss (income) | $ | 15 |  |  | $ | (14) |
Net actuarial loss (gain) recorded in Accumulated other comprehensive net (loss) income for the fiscal year ended June 30, 2025 included the following:
| Retirement Income |  | Retirement Health Care
Net actuarial loss (gain) as of beginning of year | $ | 19 |  |  | $ | (14) |
Amortization, curtailment and settlement during the year | — |  |  | 2 |
Loss (gain) during the year | — |  |  | (2) |
Net actuarial loss (gain) as of end of year | $ | 19 |  |  | $ | (14) |
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
| 2025 |  | 2024 |  | 2025 |  | 2024
Discount rate | 5.41 | % |  | 5.52 | % |  | 5.28 | % |  | 5.38 | %
Rate of compensation increase | 3.32 | % |  | 3.23 | % |  | n/a |  | n/a
Interest crediting rate | 5.90 | % |  | 5.40 | % |  | 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
| 2025 |  | 2024 |  | 2023
Discount rate | 5.52 | % |  | 4.63 | % |  | 3.72 | %
Rate of compensation increase | 3.23 | % |  | 3.20 | % |  | 3.09 | %
Expected return on plan assets | 5.69 | % |  | 3.39 | % |  | 2.67 | %
Interest crediting rate | 5.40 | % |  | 2.69 | % |  | 2.69 | %
| Retirement Health Care
| 2025 |  | 2024 |  | 2023
Discount rate | 5.38 | % |  | 5.10 | % |  | 4.65 | %
The expected long-term rate of return assumption is based on prospective returns according to the fund’s current target asset allocation. The actuarial benefit obligation gain during fiscal year 2025 was primarily driven by lower participation rate assumed for the retirement health plans. The actuarial benefit obligation gain during fiscal year 2024 was primarily driven by increases in the discount rates for the retirement plans, partially offset by investment gains lower than expected return on assets. Expected Benefit Payments Expected benefit payments for the Company’s retirement income and retirement health care plans as of June 30, 2025, were as follows:
| Retirement Income |  | Retirement Health Care
2026 | $ | 14 |  |  | $ | 2 |
2027 | 13 |  |  | 2 |
2028 | 12 |  |  | 1 |
2029 | 12 |  |  | 1 |
2030 | 12 |  |  | 1 |
Fiscal years 2031 through 2035 | 42 |  |  | 6 |
Expected benefit payments are based on the same assumptions used to measure the benefit obligations and include estimated future employee service. Plan Assets The weighted average target allocation and asset allocations by asset category as of June 30, 2025, are as follows:
|  | % Target Allocation |  |  | % of Plan Asset
Equity Investment |  | 56 | % |  |  | 63 | %
Fixed income |  | 31 | % |  |  | 23 | %
Other |  | 13 | % |  |  | 14 | %
Total |  | 100 | % |  |  | 100 | %
The target asset allocation are determined based on the optimal balance between risk and return and, at times, are adjusted to achieve the respective plan’s overall investment objective to generate sufficient resources to pay current and projected plan obligations over the life of the plans. The following table sets forth the retirement income plans’ assets carried at fair value as of June 30:
|  | 2025 |  | 2024
Cash equivalents — Level 1 |  | $ | — |  |  | $ | — |
Total assets in the fair value hierarchy |  | — |  |  | — |
Common collective trusts measured at net asset value |  |  |  |
Bond funds |  | $ | 6 |  |  | $ | 6 |
International equity funds |  | 17 |  |  | 16 |
Real estate fund |  | 2 |  |  | 2 |
Other |  | 2 |  |  | 1 |
Total common collective trust measured at net asset value |  | $ | 27 |  |  | $ | 25 |
Total assets at fair value |  | $ | 27 |  |  | $ | 25 |
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, 2025 and 2024. 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 $57, $63 and $64 in fiscal years 2025, 2024 and 2023, respectively. The aggregate cost of the international defined contribution plans was $4, $5 and $6 for the fiscal years ended June 30, 2025, 2024 and 2023, respectively.

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