PENSION AND POST-RETIREMENT BENEFIT PLANS

9 Months Ended

Mar. 31, 2020

Retirement Benefits [Abstract]

PENSION AND POST-RETIREMENT BENEFIT PLANS

NOTE 10 – PENSION AND POST-RETIREMENT BENEFIT PLANS

The Company maintains pension plans covering substantially all of its full-time employees for its U.S. operations and a majority of its international operations. The Company also maintains post-retirement benefit plans that provide certain medical and dental benefits to eligible employees. Descriptions of these plans are included in the notes to consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019.

The components of net periodic benefit cost for the three months ended March 31, 2020 and 2019 consisted of the following:

	Pension Plans								Other than Pension Plans
	U.S.				International				Post-retirement
(In millions)	2020		2019		2020		2019		2020		2019
Service cost	$	9	$	10	$	9	$	8	$	—	$	1
Interest cost	9		10		3		3		2		2
Expected return on plan assets	(14)		(15)		(4)		(3)		—		(1)
Amortization of:
Actuarial loss	5		3		1		—		—		—
Special termination benefits	—		—		1		—		—		—
Net periodic benefit cost	$	9	$	8	$	10	$	8	$	2	$	2

The components of net periodic benefit cost for the nine months ended March 31, 2020 and 2019 consisted of the following:

	Pension Plans								Other than Pension Plans
	U.S.				International				Post-retirement
(In millions)	2020		2019		2020		2019		2020		2019
Service cost	$	29	$	28	$	27	$	23	$	2	$	2
Interest cost	26		28		8		9		5		6
Expected return on plan assets	(40)		(41)		(11)		(10)		(1)		(2)
Amortization of:
Actuarial loss	12		8		4		2		—		—
Special termination benefits	—		—		1		—		—		—
Net periodic benefit cost	$	27	$	23	$	29	$	24	$	6	$	6

During the nine months ended March 31, 2020, the Company made contributions to its U.S. qualified defined benefit pension plan and international pension plans totaling $30 million and $11 million, respectively.

The amounts recognized in the consolidated balance sheets related to the Company’s pension and post-retirement benefit plans consist of the following:

(In millions)	March 31 2020		June 30 2019
Other assets	$	125	$	105
Other accrued liabilities	(27)		(27)
Other noncurrent liabilities	(430)		(418)
Funded status	(332)		(340)
Accumulated other comprehensive loss	319		334
Net amount recognized	$	(13)	$	(6)