The Company’s employees participate in various defined benefit pension and postretirement plans sponsored by the Company and its subsidiaries. Plans in the U.S., U.K., Australia, and other foreign plans are accounted for as defined benefit pension plans. Accordingly, the funded and unfunded position of each plan is recorded in the Balance Sheets. Actuarial gains and losses that have not yet been recognized through net income are recorded in Accumulated other comprehensive loss, net of taxes, until they are amortized as a component of net periodic benefit cost. The determination of benefit obligations and the recognition of expenses related to the plans are dependent on various assumptions. The major assumptions primarily relate to discount rates, expected long-term rates of return on plan assets and mortality rates. Management develops each assumption using relevant company experience in conjunction with market-related data for each individual country in which such plans exist. The funded status of the plans can change from year to year, but the assets of the funded plans have been sufficient to pay all benefits that came due in each of fiscal 2023, 2022 and 2021.

The Company uses a June 30 measurement date for all pension and postretirement benefit plans. The combined domestic and foreign pension and postretirement benefit plans resulted in a net pension and postretirement benefits liability of $13 million and $32 million at June 30, 2023 and 2022, respectively. The Company recognized these amounts in the Balance Sheets at June 30, 2023 and 2022 as follows:


	Pension Benefits
	Domestic				Foreign				Postretirement benefits				Total
	2023		2022		2023		2022		2023		2022		2023		2022
	(in millions)
Other non-current assets	$	—	$	—	$	134	$	133	$	—	$	—	$	134	$	133
Other current liabilities	—		—		(6)		(2)		(7)		(8)		(13)		(10)
Retirement benefit obligations	(37)		(40)		(45)		(55)		(52)		(60)		(134)		(155)
Net amount recognized	$	(37)	$	(40)	$	83	$	76	$	(59)	$	(68)	$	(13)	$	(32)


	Pension Benefits
	Domestic				Foreign				Postretirement Benefits				Total
	As of June 30,
	2023		2022		2023		2022		2023		2022		2023		2022
	(in millions)
Projected benefit obligation, beginning of the year	$	260	$	339	$	755	$	1,124	$	68	$	86	$	1,083	$	1,549
Service cost	—		—		1		1		—		—		1		1
Interest cost	11		7		27		17		2		1		40		25
Benefits paid	(21)		(18)		(42)		(43)		(7)		(7)		(70)		(68)
Settlements(a)	—		(12)		(5)		(12)		—		—		(5)		(24)
Actuarial gain(b)	(9)		(56)		(114)		(216)		(4)		(11)		(127)		(283)
Foreign exchange rate changes	—		—		24		(116)		—		(1)		24		(117)

Projected benefit obligation, end of the year	241		260		646		755		59		68		946		1,083
Change in the fair value of plan assets for the Company’s benefit plans:
Fair value of plan assets, beginning of the year	220		285		831		1,162		—		—		1,051		1,447
Actual return on plan assets	5		(49)		(97)		(166)		—		—		(92)		(215)
Employer contributions	—		14		14		15		—		—		14		29
Benefits paid	(21)		(18)		(42)		(43)		—		—		(63)		(61)
Settlements(a)	—		(12)		(5)		(12)		—		—		(5)		(24)
Foreign exchange rate changes	—		—		28		(125)		—		—		28		(125)
Fair value of plan assets, end of the year	204		220		729		831		—		—		933		1,051
Funded status	$	(37)	$	(40)	$	83	$	76	$	(59)	$	(68)	$	(13)	$	(32)


	Pension Benefits
	Domestic				Foreign				Postretirement Benefits				Total
	As of June 30,
	2023		2022		2023		2022		2023		2022		2023		2022
	(in millions)
Actuarial losses (gains)	$	118	$	126	$	342	$	325	$	(8)	$	(5)	$	452	$	446
Prior service cost (benefit)	—		—		7		7		(28)		(32)		(21)		(25)
Net amounts recognized	$	118	$	126	$	349	$	332	$	(36)	$	(37)	$	431	$	421


	Domestic Pension Benefits
	Funded Plans				Unfunded Plans				Total
	As of June 30,
	2023		2022		2023		2022		2023		2022
	(in millions)
Projected benefit obligation	$	234	$	253	$	7	$	7	$	241	$	260
Accumulated benefit obligation	234		253		7		7		241		260
Fair value of plan assets	204		220		—		—		204		220


	Foreign Pension Benefits
	Funded Plans				Unfunded Plans				Total
	As of June 30,
	2023		2022		2023		2022		2023		2022
	(in millions)
Projected benefit obligation	$	599	$	701	$	47	$	54	$	646	$	755
Accumulated benefit obligation	595		697		47		54		642		751
Fair value of plan assets	729		831		—		—		729		831


	Foreign Pension Benefits
	Funded Plans				Unfunded Plans				Total
	As of June 30,
	2023		2022		2023		2022		2023		2022
	(in millions)
Projected benefit obligation	$	46	$	49	$	47	$	54	$	93	$	103
Accumulated benefit obligation	46		49		47		54		93		103
Fair value of plan assets	43		46		—		—		43		46

The Company recorded $13 million, nil and $(1) million in net periodic benefit costs (income) in the Statements of Operations for the fiscal years ended June 30, 2023, 2022 and 2021, respectively. The Company utilizes the full yield-curve approach to estimate the service and interest cost components of net periodic benefit costs (income) for its pension and other postretirement benefit plans.

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 benefit costs (income) were as follows:


	Pension Benefits
	Domestic						Foreign						Postretirement Benefits						Total
	For the fiscal years ended June 30,
	2023		2022		2021		2023		2022		2021		2023		2022		2021		2023		2022		2021
	(in millions)
Service cost benefits earned during the period	$	—	$	—	$	—	$	1	$	1	$	2	$	—	$	—	$	—	$	1	$	1	$	2
Interest costs on projected benefit obligations	11		7		7		27		17		16		2		1		2		40		25		25
Expected return on plan assets	(11)		(15)		(13)		(32)		(36)		(37)		—		—		—		(43)		(51)		(50)
Amortization of deferred losses	5		5		5		14		14		15		—		—		—		19		19		20
Amortization of prior service credits	—		—		—		—		—		—		(4)		(4)		(4)		(4)		(4)		(4)
Settlements, curtailments and other	—		8		5		—		2		1		—		—		—		—		10		6
Net periodic benefit costs (income) – Total	$	5	$	5	$	4	$	10	$	(2)	$	(3)	$	(2)	$	(3)	$	(2)	$	13	$	—	$	(1)


	Pension Benefits
	Domestic						Foreign						Postretirement Benefits
	For the fiscal years ended June 30,
	2023		2022		2021		2023		2022		2021		2023		2022		2021
Additional information:
Weighted-average assumptions used to determine benefit obligations
Discount rate	5.4	%	4.9	%	2.9	%	5.4	%	3.9	%	1.9	%	5.5	%	4.6	%	2.4	%
Rate of increase in future compensation	N/A		N/A		N/A		3.9	%	3.9	%	3.6	%	N/A		N/A		N/A
Weighted-average assumptions used to determine net periodic benefit cost
Discount rate for PBO	4.9	%	2.9	%	2.9	%	3.9	%	1.9	%	1.7	%	4.6	%	2.4	%	2.5	%
Discount rate for Service Cost	N/A		3.3	%	3.4	%	4.8	%	1.8	%	1.8	%	4.9	%	2.8	%	2.9	%
Discount rate for Interest on PBO	4.6	%	2.2	%	2.2	%	3.8	%	1.6	%	1.5	%	4.3	%	1.7	%	1.8	%
Expected return on plan assets	5.5	%	5.8	%	5.5	%	3.9	%	3.3	%	3.3	%	N/A		N/A		N/A
Rate of increase in future compensation	N/A		N/A		N/A		3.9	%	3.6	%	3.1	%	N/A		N/A		N/A


	Postretirement benefits
	Fiscal 2023		Fiscal 2022
Health care cost trend rate	6.9	%	6.4	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	5.2	%	4.5	%
Year that the rate reaches the ultimate trend rate	2031		2030

The following table sets forth the estimated benefit payments for the next five fiscal years, and in aggregate for the five fiscal years thereafter. 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:

The Company applies the provisions of ASC 715, which requires disclosures including: (i) investment policies and strategies; (ii) the major categories of plan assets; (iii) the inputs and valuation techniques used to measure plan assets; (iv) the effect of fair value measurements using significant unobservable inputs on changes in plan assets for the period; and (v) significant concentrations of risk within plan assets.


			Fiscal 2023										Fiscal 2022
			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	$	37	$	—	$	—	$	—	$	37	$	37	$	—	$	—	$	—	$	37
International equity funds	94		—		48		—		46		112		—		67		—		45
Domestic fixed income funds	112		—		—		—		112		106		—		—		—		106
International fixed income funds	546		—		444		—		102		666		—		487		—		179
Balanced funds	42		—		42		—		—		46		—		46		—		—
Other	102		78		—		6		18		84		53		—		7		24
Total	$	933	$	78	$	534	$	6	$	315	$	1,051	$	53	$	600	$	7	$	391


	Level 3 Investments
	(in millions)
Balance, June 30, 2021	$	10
Actual return on plan assets:
Relating to assets still held at end of period	(2)
Relating to assets sold during the period	—
Purchases, sales, settlements and issuances	(1)
Transfers in and out of Level 3	—
Balance, June 30, 2022	$	7
Actual return on plan assets:
Relating to assets still held at end of period	(1)
Relating to assets sold during the period	—
Purchases, sales, settlements and issuances	—
Transfers in and out of Level 3	—
Balance, June 30, 2023	$	6

The Company’s investment strategy for its pension plans is to maximize the long-term rate of return on plan assets within an acceptable level of risk in order to minimize the cost of providing pension benefits while maintaining adequate funding levels. The Company’s practice is to conduct a periodic strategic review of its asset allocation. The Company’s current broad strategic targets are to have a pension asset portfolio comprised of 16% equity securities, 74% fixed income securities and 10% in cash and other investments. In developing the expected long-term rate of return, the Company considered the pension asset portfolio’s past average rate of returns and future return expectations of the various asset classes. A portion of the other allocation is reserved in cash to provide for expected benefits to be paid in the short term. The Company’s equity portfolios are managed in such a way as to achieve optimal diversity. The Company’s fixed income portfolio is investment grade in the aggregate. The Company does not manage any assets internally.

Required pension plan contributions for the next fiscal year are expected to be approximately $23 million; however, actual contributions may be affected by pension asset and liability valuation changes during the year. The Company will continue to make voluntary contributions as necessary to improve funded status.