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Pension and Other Postretirement Benefits (Tables)
 12 Months Ended
Jun. 30, 2021
Retirement Benefits [Abstract]  
Funded Status of Pension Plans and Amount recognized in the Consolidated Balance Sheet
The funded status of our pension plans and amounts recognized in the consolidated balance sheets as of June 30 were as follows:
(in thousands)20212020
Change in benefit obligation:
Benefit obligation, beginning of year$1,004,005 $964,741 
Service cost1,685 1,796 
Interest cost23,188 27,320 
Participant contributions548 637 
Actuarial (gains) losses(16,794)67,403 
Benefits and expenses paid(52,719)(50,733)
Currency translation adjustments23,276 (5,758)
Plan amendments(129)(231)
Plan settlements(13,966)(1,286)
Plan curtailments(10)(171)
Other adjustments(359)287 
Benefit obligation, end of year$968,725 $1,004,005 
Change in plans' assets:
Fair value of plans' assets, beginning of year$876,036 $825,869 
Actual return on plans' assets54,026 96,133 
Company contributions9,998 9,721 
Participant contributions548 637 
Plan settlements(13,966)(1,286)
Benefits and expenses paid(52,719)(50,733)
Currency translation adjustments16,032 (4,305)
Other adjustments149 $— 
Fair value of plans' assets, end of year$890,104 $876,036 
Funded status of plans$(78,621)$(127,969)
Amounts recognized in the balance sheets consist of:
Long-term prepaid benefit$89,233 $43,116 
Short-term accrued benefit obligation(6,918)(6,639)
Accrued pension benefits(160,936)(164,446)
Net amount recognized$(78,621)$(127,969)
Defined Benefit Pension Plans Recognized in Accumulated Other Comprehensive (Loss) Income
The pre-tax amounts related to our defined benefit pension plans recognized in accumulated other comprehensive loss were as follows at June 30:
(in thousands)20212020
Unrecognized net actuarial losses$279,628 $305,903 
Unrecognized net prior service costs2,001 2,026 
Unrecognized transition obligations277 332 
Total$281,906 $308,261 
The pre-tax amounts related to our other postretirement benefit plans which were recognized in accumulated other comprehensive loss were as follows at June 30:
(in thousands)20212020
Unrecognized net actuarial losses$4,355 $4,602 
Unrecognized net prior service credits(1,924)(2,200)
Total$2,431 $2,402 
Accumulated Benefit Obligations Exceeding Plan Assets Fair Value
Included in the above information are plans with accumulated benefit obligations exceeding the fair value of plan assets as of June 30 as follows:
(in thousands)20212020
Projected benefit obligation$174,973 $180,388 
Accumulated benefit obligation173,684 178,195 
Fair value of plan assets7,116 9,273 
Net Periodic Pension (Income) Cost
The components of net periodic pension income include the following as of June 30:
(in thousands)202120202019
Service cost$1,685 $1,796 $1,627 
Interest cost23,188 27,320 31,901 
Expected return on plans' assets(53,653)(53,943)(53,789)
Amortization of transition obligation94 88 91 
Amortization of prior service cost34 50 (19)
Curtailment(7)(115)— 
Settlement3,190 (51)— 
Recognition of actuarial losses13,606 10,359 6,723 
Other adjustments(473)288 — 
Net periodic pension income$(12,336)$(14,208)$(13,466)
Funded Status of Other Postretirement Benefit Plans and Amount Recognized in the Consolidated Balance Sheet The funded status of our other postretirement benefit plans and the related amounts recognized in the consolidated balance sheets were as follows:
(in thousands)20212020
Change in benefit obligation:
Benefit obligation, beginning of year$12,365 $12,642 
Interest cost307 404 
Actuarial losses60 709 
Benefits paid(1,281)(1,390)
Other(68)— 
Benefit obligation, end of year$11,383 $12,365 
Funded status of plan$(11,383)$(12,365)
Amounts recognized in the balance sheets consist of:
Short-term accrued benefit obligation$(1,252)$(1,353)
Accrued postretirement benefits(10,131)(11,012)
Net amount recognized$(11,383)$(12,365)
Net Periodic Other Postretirement Costs (Benefit)
The components of net periodic other postretirement benefit cost include the following for the years ended June 30:
(in thousands)202120202019
Interest cost$307 $404 $613 
Amortization of prior service credit(276)(276)(90)
Recognition of actuarial loss307 257 248 
Net periodic other postretirement benefit cost$338 $385 $771 
Significant Actuarial Assumptions Used to Determine the Present Value of Net Benefit Obligations
The significant actuarial assumptions used to determine the present value of net benefit obligations for our defined benefit pension plans and other postretirement benefit plans were as follows:
202120202019
Discount Rate:
U.S. plans
1.2-3.0%
1.6-2.9%
2.7-3.6%
International plans
0.3-3.2%
0.2-2.4%
0.4-2.9%
Rates of future salary increases:
U.S. plans (Executive Retirement Plan only)4.0 %4.0 %4.0 %
International plans1.5 %1.5 %
1.8-3.0%
The significant assumptions used to determine the net periodic income for our pension and other postretirement benefit plans were as follows:
202120202019
Discount Rate:
U.S. plans
1.2-3.0%
2.7-3.6%
4.0-4.3%
International plans
0.3-3.2%
0.4-2.9%
1.8-3.3%
Rates of future salary increases:
U.S. plans (Executive Retirement Plan only)4.0 %4.0 %4.0 %
International plans1.5 %
1.8-3.0%
2.5-3.0%
Rate of return on plans assets:
U.S. plans6.8 %7.0 %7.0 %
International plans
0.2-5.3%
0.4-5.3%
5.0-5.3%
Annual Assumed Rate of Increase in Per Capita Cost of Covered Benefits for Postretirement Benefit Plans
The annual assumed rate of increase in the per capita cost of covered benefits (the health care cost trend rate) for our postretirement benefit plans was as follows: 
202120202019
Health care costs trend rate assumed for next year6.5 %6.8 %7.0 %
Rate to which the cost trend rate gradually declines5.0 %5.0 %5.0 %
Year that the rate reaches the rate at which it is assumed to remain202720272027
Asset Allocations and Target Allocations by Asset Class
Our defined benefit pension plans’ asset allocations as of June 30, 2021 and 2020 and target allocations for 2022, by asset class, were as follows:
20212020Target %
Equity20 %22 %20 %
Fixed Income76 %75 %80 %
Other4 %3 %— %
The following table presents the fair value of the benefit plans' assets by asset category as of June 30, 2021:
(in thousands)Level 1Level 2Level 3
NAV(3)
Total
Common / collective trusts (3):
Blend funds$— $— $— $90,338 $90,338 
Mutual funds— — — 48,446 48,446 
Corporate fixed income securities— 443,948 — — 443,948 
Common stock42,670 — — — 42,670 
Government securities:
U.S. government securities— 149,514 — — 149,514 
Foreign government securities— 57,253 — — 57,253 
Other fixed income securities— 21,107 — — 21,107 
Other1,107 35,721 — — 36,828 
Total investments$43,777 $707,543 $— $138,784 $890,104 
The following table presents the fair value of the benefit plans' assets by asset category as of June 30, 2020:
(in thousands)Level 1Level 2Level 3
NAV(3)
Total
Common / collective trusts (3):
Blend funds$— $— $— $94,667 $94,667 
Mutual funds— — — 59,674 59,674 
Corporate fixed income securities— 394,521 — — 394,521 
Common stock38,487 — — — 38,487 
Government securities:
U.S. government securities— 178,364 — — 178,364 
Foreign government securities— 61,153 — — 61,153 
Other fixed income securities— 22,544 — — 22,544 
Other2,410 24,216 — — 26,626 
Total investments$40,897 $680,798 $— $154,341 $876,036 
(3) Investments in common / collective trusts invest primarily in publicly traded securities and are valued using net asset value (NAV) of units of a bank collective trust. Therefore, these amounts have not been classified in the fair value hierarchy and are presented in the tables to reconcile the fair value hierarchy to the total fair value of plan assets.