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Retirement Benefit Obligations (Tables)
12 Months Ended
Jun. 30, 2018
Postemployment Benefits [Abstract]  
Schedule of Amounts Recognized in Balance Sheets

The Company recognized these amounts in the Balance Sheets at June 30, 2018 and 2017 as follows:

 

     Pension Benefits     Postretirement
benefits
       
     Domestic     Foreign     Total  
     As of June 30,  
     2018     2017     2018     2017     2018     2017     2018     2017  
     (in millions)  

Other non-current assets

   $     $     $ 135     $ 17     $     $     $ 135     $ 17  

Other current liabilities

                 (1     (1     (9     (9     (10     (10

Retirement benefit obligations

     (74     (91     (74     (120     (97     (108     (245     (319
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net amount recognized

   $ (74   $ (91   $ 60     $ (104   $ (106   $ (117   $ (120   $ (312
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Schedule of Change in Projected Benefit Obligation, Change in Fair Value of Plan Assets and Funded Status

The following table sets forth the change in the projected benefit obligation, change in the fair value of the Company’s plan assets and funded status:

 

     Pension Benefits     Postretirement
Benefits
       
     Domestic     Foreign     Total  
     As of June 30,  
     2018     2017     2018     2017     2018     2017     2018     2017  
     (in millions)  

Projected benefit obligation, beginning of the year

   $ 368     $ 396     $ 1,216     $ 1,201     $ 117     $ 126     $ 1,701     $ 1,723  

Service cost

                 6       9                   6       9  

Interest cost

     12       12       29       29       3       3       44       44  

Benefits paid

     (27     (23     (45     (39     (8     (8     (80     (70

Settlements(a)

           (13     (29     (23                 (29     (36

Actuarial loss/(gain)(b)

     (19     (4     (151     54       (6     (3     (176     47  

Foreign exchange rate changes

                 14       (15                 14       (15

Amendments, transfers and other

                                   (1           (1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Projected benefit obligation, end of the year

     334       368       1,040       1,216       106       117       1,480       1,701  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Change in the fair value of plan assets for the Company’s benefit plans:

                

Fair value of plan assets, beginning of the year

     277       287       1,112       1,080                   1,389       1,367  

Actual return on plan assets

     9       23       26       83                   35       106  

Employer contributions

     1       3       28       23                   29       26  

Benefits paid

     (27     (23     (45     (39                 (72     (62

Settlements(a)

           (13     (29     (23                 (29     (36

Foreign exchange rate changes

                 8       (12                 8       (12
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fair value of plan assets, end of the year

     260       277       1,100       1,112                   1,360       1,389  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Funded status

   $ (74   $ (91   $ 60     $ (104   $ (106   $ (117   $ (120   $ (312
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a)

Amounts related to payments made to former employees of the Company in full settlement of their deferred pension benefits.

(b)

Fiscal 2018 actuarial gains related to domestic and foreign pension plans primarily relates to the increase in discount rates for the U.S. and U.K. plans used in measuring plan obligations as of June 30, 2018. Fiscal 2017 actuarial losses for the Company’s foreign pension plans are primarily related to the decrease in discount rates used in measuring plan obligations as of June 30, 2017. Fiscal 2017 actuarial gains related to domestic pension plans primarily relate to the increase in discount rates for the U.S. plans used in measuring plan obligations as of June 30, 2017.

Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss

Amounts recognized in Accumulated other comprehensive loss consist of:

 

     Pension Benefits      Postretirement
Benefits
       
     Domestic      Foreign     Total  
     As of June 30,  
     2018      2017      2018      2017      2018     2017     2018     2017  
     (in millions)  

Actuarial losses (gains)

   $ 126      $ 142      $ 316      $ 453      $ (7   $ (1   $ 435     $ 594  

Prior service (benefit) cost

                                 (28     (31     (28     (31
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net amounts recognized

   $ 126      $ 142      $ 316      $ 453      $ (35   $ (32   $ 407     $ 563  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
Schedule of Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized as Component of Net Periodic Benefit Cost

Amounts in Accumulated other comprehensive loss expected to be recognized as a component of net periodic benefit cost in fiscal 2019 consist of:

 

     Pension Benefits      Postretirement
Benefits
       
     Domestic      Foreign     Total  
     As of June 30, 2018  
     (in millions)  

Actuarial losses (gains)

   $ 4      $ 10      $   —     $ 14  

Prior service (benefit) cost

                   (3     (3
  

 

 

    

 

 

    

 

 

   

 

 

 

Net amounts recognized

   $ 4      $ 10      $ (3   $ 11  
  

 

 

    

 

 

    

 

 

   

 

 

 
Schedule of Accumulated and Projected Benefit Obligations and Fair Value of Plan Assets for Funded and Unfunded Pension Plans

Below is information about funded and unfunded pension plans.

 

     Domestic Pension Benefits  
     Funded Plans      Unfunded
Plans
     Total  
     As of June 30,  
     2018      2017      2018      2017      2018      2017  
     (in millions)  

Projected benefit obligation

   $ 320      $ 354      $ 14      $ 14      $ 334      $ 368  

Accumulated benefit obligation

     320        354        14        14        334        368  

Fair value of plan assets

     260        277                      260        277  
    

 

Foreign Pension Benefits

 
     Funded Plans      Unfunded
Plans
     Total  
     As of June 30,  
     2018      2017      2018      2017      2018      2017  
     (in millions)  

Projected benefit obligation

   $ 971      $ 1,144      $ 69      $ 72      $ 1,040      $ 1,216  

Accumulated benefit obligation

     961        1,126        69        72        1,030        1,198  

Fair value of plan assets

     1,100        1,112                      1,100        1,112  
Schedule of Accumulated Benefit Obligation Exceeds Fair Value of Plan Assets

The accumulated benefit obligation exceeds the fair value of plan assets for all domestic pension plans. Below is information about foreign pension plans in which the accumulated benefit obligation exceeds the fair value of the plan assets.

 

     Foreign Pension Benefits  
     Funded Plans      Unfunded
Plans
     Total  
     As of June 30,  
     2018      2017      2018      2017      2018      2017  
     (in millions)  

Projected benefit obligation

   $ 235      $ 550      $ 69      $ 72      $ 304      $ 622  

Accumulated benefit obligation

     235        550        69        72        304        622  

Fair value of plan assets

     229        509                      229        509  
Schedule of Components of Net Periodic Benefits Costs (Income)

The amortization of amounts related to unrecognized prior service costs (credits), deferred losses and settlements, curtailments and other were reclassified out of Other comprehensive income as a component of net periodic benefit costs. The components of net periodic benefits costs (income) were as follows:

 

    Pension Benefits                                      
    Domestic     Foreign     Postretirement
Benefits
    Total  
    For the fiscal years ended June 30,  
    2018     2017     2016     2018     2017     2016     2018     2017     2016     2018     2017     2016  
    (in millions)  

Service cost benefits earned during the period

  $     $     $     $ 6     $ 9     $ 10     $   —     $   —     $   —     $ 6     $ 9     $ 10  

Interest costs on projected benefit obligations

    12       12       17       29       29       44       3       3       5       44       44       66  

Expected return on plan assets

    (18     (18     (19     (53     (57     (62                       (71     (75     (81

Amortization of deferred losses

    5       5       4       18       16       14                         23       21       18  

Amortization of prior service costs

                                        (3     (4     (7     (3     (4     (7

Settlements, curtailments and other

          3             4       3       2                         4       6       2  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic benefits costs (income)—Total

  $ (1   $ 2     $ 2     $ 4     $     $ 8     $     $ (1   $ (2   $ 3     $ 1     $ 8  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Schedule of Assumptions Used
     Pension Benefits     Postretirement
Benefits
 
     Domestic     Foreign  
     For the fiscal years ended June 30,  
     2018     2017     2016     2018     2017     2016     2018     2017     2016  

Additional information:

                  

Weighted-average assumptions used to determine benefit obligations

                  

Discount rate

     4.2     3.8     3.7     2.8     2.7     2.9     4.0     3.5     3.4

Rate of increase in future compensation

     N/A       N/A       N/A       3.1     2.8     2.7     N/A       N/A       N/A  

Weighted-average assumptions used to determine net periodic benefit cost

                  

Discount rate for PBO

     3.8     3.8     4.5     2.7     2.9     3.7     3.5     3.4     4.2

Discount rate for Service Cost

     4.0     4.1     4.5     3.8     3.1     3.7     3.9     3.7     4.2

Discount rate for Interest on PBO

     3.3     3.0     4.5     2.4     2.5     3.7     2.9     2.6     4.2

Discount rate for Interest on Service Cost

     3.8     3.8     4.5     3.4     2.9     3.7     3.5     3.2     4.2

Expected return on plan assets

     6.5     6.5     6.5     4.7     5.5     5.5     N/A       N/A       N/A  

Rate of increase in future compensation

     N/A       N/A       3.0     2.8     2.7     2.9     N/A       N/A       N/A  
Schedule of Health Care Cost Trend Rates

The following assumed health care cost trend rates as of June 30 were also used in accounting for postretirement benefits:

 

     Postretirement benefits  
     Fiscal 2018     Fiscal 2017  

Health care cost trend rate

     6.8     6.8

Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)

     4.6     4.6

Year that the rate reaches the ultimate trend rate

     2027       2027  
Schedule of Effect of One Percentage Point Change in Assumed Health Care Cost Trend Rate

The effect of a one percentage point increase and one percentage point decrease in the assumed health care cost trend rate would have the following effects on the results for fiscal 2018:

 

     Service and
Interest Costs
     Benefit
Obligation
 
     (in millions)  

One percentage point increase

   $   —      $ 2  

One percentage point decrease

   $   —      $ (2
Schedule of Expected Benefit Payments

The expected benefits are estimated based on the same assumptions used to measure the Company’s benefit obligation at the end of the fiscal year and include benefits attributable to estimated future employee service:

 

     Expected Benefit Payments  
     Pension Benefits      Postretirement
Benefits
        
     Domestic      Foreign      Total  
     (in millions)  

Fiscal year:

           

2019

   $ 25      $ 47      $ 9      $ 81  

2020

     21        49        9        79  

2021

     20        49        9        78  

2022

     20        51        8        79  

2023

     20        53        8        81  

2024-2028

     103        256        37        396  
Schedule of Allocation of Plan Assets

The table below presents the Company’s plan assets by level within the fair value hierarchy, as described in Note 2—Summary of Significant Accounting Policies, as of June 30, 2018 and 2017:

 

    As of June 30, 2018     As of June 30, 2017  
          Fair Value Measurements at
Reporting Date Using
          Fair Value Measurements at
Reporting Date Using
 
    Total     Level 1     Level 2     Level 3     NAV     Total     Level 1     Level 2     Level 3     NAV  
    (in millions)  

Assets

                   

Pooled funds:(a)

                   

Domestic equity funds

  $ 73     $   —     $     $   —     $ 73     $ 78     $   —     $     $   —     $ 78  

International equity funds

    206                         206       196                         196  

Domestic fixed income funds

    142                         142       151                         151  

International fixed income funds

    679                         679       642                         642  

Balanced funds

    186             107             79       255             182             73  

Other

    74       64             10             67       55       1       11        
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 1,360     $ 64     $ 107     $ 10     $ 1,179     $ 1,389     $ 55     $ 183     $ 11     $ 1,140  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Open-ended pooled funds that are registered and/or available to the general public are valued at the daily published net asset value (“NAV”). Other pooled funds are valued at the NAV provided by the fund issuer.

Summary of Changes in Fair Value of Investments Reflected as Level 3 Assets

The table below sets forth a summary of changes in the fair value of investments reflected as Level 3 assets as of June 30, 2018 and 2017:

 

     Level 3
Investments
 
     (in millions)  

Balance, June 30, 2016

   $ 11  

Actual return on plan assets:

  

Relating to assets still held at end of period

      

Relating to assets sold during the period

      

Purchases, sales, settlements and issuances

      

Transfers in and out of Level 3

      
  

 

 

 

Balance, June 30, 2017

   $ 11  

Actual return on plan assets:

  

Relating to assets still held at end of period

      

Relating to assets sold during the period

      

Purchases, sales, settlements and issuances

     (1

Transfers in and out of Level 3

      
  

 

 

 

Balance, June 30, 2018

   $ 10  
  

 

 

 
Schedule of Weighted-Average Asset Allocations, by Asset Category

The Company’s benefit plan weighted-average asset allocations, by asset category, are as follows:

 

     Pension benefits  
     As of June 30,  
     2018     2017  

Asset Category:

    

Equity securities

     23     22

Debt securities

     65     62

Cash and other

     12     16
  

 

 

   

 

 

 

Total

     100     100