XML 55 R32.htm IDEA: XBRL DOCUMENT v3.5.0.2
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN (Tables)
12 Months Ended
Jun. 30, 2016
Compensation and Retirement Disclosure [Abstract]  
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block]
Obligation and Funded Status. The following provides a reconciliation of benefit obligations, plan assets and funded status of these defined benefit plans:
 
Pension Benefits (1)
 
Other Retiree Benefits (2)
Years ended June 30
2016
 
2015
 
2016
 
2015
CHANGE IN BENEFIT OBLIGATION
 
 
 
 
 
 
 
Benefit obligation at beginning of year (3)
$
15,951


$
17,053


$
4,904


$
5,505

Service cost
314

 
317

 
124

 
156

Interest cost
466

 
545

 
219

 
240

Participants' contributions
17

 
19

 
74

 
71

Amendments
8

 
17

 
(40
)
 
(325
)
Actuarial loss/(gain)
1,927

 
524

 
589

 
(399
)
Acquisitions/(divestitures)
(21
)
 
7

 
(7
)
 

Special termination benefits
6

 
11

 
12

 
23

Currency translation and other
(826
)
 
(1,908
)
 
(14
)
 
(134
)
Benefit payments
(557
)
 
(634
)
 
(229
)
 
(233
)
BENEFIT OBLIGATION AT END OF YEAR (3)
$
17,285

 
$
15,951

 
$
5,632

 
$
4,904

CHANGE IN PLAN ASSETS
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$
10,605

 
$
11,098

 
$
3,470

 
$
3,574

Actual return on plan assets
630

 
1,016

 
408

 
10

Acquisitions/(divestitures)
(13
)
 

 

 

Employer contributions
306

 
262

 
32

 
18

Participants' contributions
17

 
19

 
74

 
71

Currency translation and other
(719
)
 
(1,156
)
 
(8
)
 
(6
)
ESOP debt impacts (4)

 

 
40

 
36

Benefit payments
(557
)
 
(634
)
 
(229
)
 
(233
)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR
$
10,269

 
$
10,605

 
$
3,787

 
$
3,470

Reclassification of net obligation to held for sale liabilities
402

 
336

 
16

 

FUNDED STATUS
$
(6,614
)
 
$
(5,010
)
 
$
(1,829
)
 
$
(1,434
)
(1) 
Primarily non-U.S.-based defined benefit retirement plans.
(2) 
Primarily U.S.-based other postretirement benefit plans.
(3) 
For the pension benefit plans, the benefit obligation is the projected benefit obligation. For other retiree benefit plans, the benefit obligation is the accumulated postretirement benefit obligation.
(4) 
Represents the net impact of ESOP debt service requirements, which is netted against plan assets for other retiree benefits.
Schedule of Amounts Recognized in Balance Sheet [Table Text Block]
 
Pension Benefits
 
Other Retiree Benefits
Years ended June 30
2016
 
2015
 
2016
 
2015
CLASSIFICATION OF NET AMOUNT RECOGNIZED
 
 
 
 
 
 
 
Noncurrent assets
$
180

 
$
276

 
$

 
$

Current liabilities
(33
)
 
(39
)
 
(21
)
 
(20
)
Noncurrent liabilities
(6,761
)
 
(5,247
)
 
(1,808
)
 
(1,414
)
NET AMOUNT RECOGNIZED
$
(6,614
)
 
$
(5,010
)
 
$
(1,829
)
 
$
(1,434
)
AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI)
 
 
Net actuarial loss
$
6,088

 
$
4,488

 
$
2,247

 
$
1,731

Prior service cost/(credit)
270

 
300

 
(334
)
 
(346
)
NET AMOUNTS RECOGNIZED IN AOCI
$
6,358

 
$
4,788

 
$
1,913

 
$
1,385

Schedule of Accumulated and Projected Benefit Obligations [Table Text Block]
Pension plans with accumulated benefit obligations in excess of plan assets and plans with projected benefit obligations in excess of plan assets consisted of the following:
 
Accumulated Benefit Obligation  Exceeds the Fair Value of Plan Assets
 
Projected Benefit Obligation  Exceeds the Fair Value of Plan Assets
Years ended June 30
2016
 
2015
 
2016
 
2015
Projected benefit obligation
$
15,233

 
$
13,411

 
$
15,853

 
$
14,057

Accumulated benefit obligation
13,587

 
11,918

 
14,149

 
12,419

Fair value of plan assets
8,082

 
7,931

 
8,657

 
8,435

Schedule of Net Benefit Costs [Table Text Block]
Net Periodic Benefit Cost. Components of the net periodic benefit cost were as follows:
 
Pension Benefits
 
Other Retiree Benefits
Years ended June 30
2016
 
2015
 
2014
 
2016
 
2015
 
2014
AMOUNTS RECOGNIZED IN NET PERIODIC BENEFIT COST
 
 
 
 
 
 
 
 
 
 
Service cost
$
314

 
$
317

 
$
298

 
$
124

 
$
156

 
$
149

Interest cost
466

 
545

 
590

 
219

 
240

 
256

Expected return on plan assets
(731
)
 
(732
)
 
(701
)
 
(416
)
 
(406
)
 
(385
)
Prior service cost/(credit) amortization
29

 
30

 
26

 
(52
)
 
(20
)
 
(20
)
Net actuarial loss amortization
265

 
275

 
214

 
78

 
105

 
118

Special termination benefits
6

 
11

 
5

 
12

 
23

 
9

GROSS BENEFIT COST/(CREDIT)
349

 
446

 
432

 
(35
)
 
98

 
127

Dividends on ESOP preferred stock

 

 

 
(52
)
 
(58
)
 
(64
)
NET PERIODIC BENEFIT COST/(CREDIT)
$
349

 
$
446

 
$
432

 
$
(87
)
 
$
40

 
$
63

CHANGE IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN AOCI
 
 
 
 
 
 
Net actuarial loss/(gain) - current year
$
2,028

 
$
240

 
 
 
$
597

 
$
(3
)
 
 
Prior service cost/(credit) - current year
8

 
17

 
 
 
(40
)
 
(325
)
 
 
Amortization of net actuarial loss
(265
)
 
(275
)
 
 
 
(78
)
 
(105
)
 
 
Amortization of prior service (cost)/credit
(29
)
 
(30
)
 
 
 
52

 
20

 
 
Currency translation and other
(172
)
 
(677
)
 
 
 
(3
)
 
(34
)
 
 
TOTAL CHANGE IN AOCI
1,570

 
(725
)
 
 
 
528

 
(447
)
 
 
NET AMOUNTS RECOGNIZED IN PERIODIC BENEFIT COST AND AOCI
$
1,919

 
$
(279
)
 
 
 
$
441

 
$
(407
)
 
 

Net periodic benefit costs include amounts related to discontinued operations, which are not material for any period.
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year [Table Text Block]
Amounts expected to be amortized from AOCI into net periodic benefit cost during the year ending June 30, 2017, are as follows:
 
Pension Benefits
 
Other Retiree Benefits
Net actuarial loss
$
400

 
$
126

Prior service cost/(credit)
28

 
(45
)
Schedule of Assumptions Used [Table Text Block]
The weighted average assumptions used to determine benefit obligations recorded on the Consolidated Balance Sheets as of June 30, were as follows: (1) 
 
Pension Benefits
 
Other Retiree Benefits
 
2016
 
2015
 
2016
 
2015
Discount rate
2.1
%
 
3.1
%
 
3.6
%
 
4.5
%
Rate of compensation increase
2.9
%
 
3.1
%
 
N/A

 
N/A

Health care cost trend rates assumed for next year
N/A

 
N/A

 
7.2
%
 
6.8
%
Rate to which the health care cost trend rate is assumed to decline (ultimate trend rate)
N/A

 
N/A

 
4.9
%
 
5.0
%
Year that the rate reaches the ultimate trend rate
N/A

 
N/A

 
2021

 
2021

(1) 
Determined as of end of year.
The weighted average assumptions used to determine net benefit cost recorded on the Consolidated Statement of Earnings for the years ended June 30, were as follows: (1) 
 
Pension Benefits
 
Other Retiree Benefits
Years ended June 30
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Discount rate
3.1
%
 
3.5
%
 
4.0
%
 
4.5
%
 
4.4
%
 
4.8
%
Expected return on plan assets
7.2
%
 
7.2
%
 
7.2
%
 
8.3
%
 
8.3
%
 
8.3
%
Rate of compensation increase
3.1
%
 
3.2
%
 
3.2
%
 
N/A

 
N/A

 
N/A


(1) 
Determined as of beginning of year and adjusted for acquisitions.
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block]
A one percentage point change in assumed health care cost trend rates would have the following effects:
 
One-Percentage
Point Increase
 
One-Percentage
Point Decrease
Effect on the total service and interest cost components
$
80

 
$
(59
)
Effect on the accumulated postretirement benefit obligation
1,057

 
(809
)
Schedule of Allocation of Plan Assets [Table Text Block]
Our target asset allocation for the year ended June 30, 2016, and actual asset allocation by asset category as of June 30, 2016 and 2015, were as follows:
 
Target Asset Allocation
 
Actual Asset Allocation at June 30
 
Pension Benefits
 
Other Retiree
Benefits
 
Pension Benefits
 
Other Retiree Benefits
Asset Category
 
 
2016
 
2015
 
2016
 
2015
Cash
2
%
 
2
%
 
2
%
 
2
%
 
2
%
 
1
%
Debt securities
55
%
 
3
%
 
55
%
 
50
%
 
4
%
 
5
%
Equity securities
43
%
 
95
%
 
43
%
 
48
%
 
94
%
 
94
%
TOTAL
100
%
 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
Pension and Postretirement Plan Assets By Fair Value Hierarchy [Table Text Block]
 
Pension Benefits
 
Other Retiree Benefits
Years ended June 30
Fair Value Hierarchy Level
 
2016
 
2015
 
Fair Value Hierarchy Level
 
2016
 
2015
ASSETS AT FAIR VALUE
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
1 & 2
 
$
262

 
$
266

 
1
 
$
70

 
$
36

Company stock (1)
 
 

 

 
2
 
3,545

 
3,239

Collective fund - equity
2
 
4,381

 
5,054

 
2
 
14

 
17

Collective fund - fixed income
2
 
5,498

 
5,162

 
2
 
158

 
178

Other (2)
1 & 3
 
128

 
123

 
 
 

 

TOTAL ASSETS AT FAIR VALUE
 
 
$
10,269

 
$
10,605

 
 
 
$
3,787

 
$
3,470

(1) 
Company stock is net of ESOP debt discussed below.
(2) 
The Company's other pension and other retiree benefit plan assets measured at fair value are generally classified as Level 3 within the fair value hierarchy. There are no material other pension and other retiree benefit plan asset balances classified as Level 1 within the fair value hierarchy.
Schedule of Expected Benefit Payments [Table Text Block]
Total benefit payments expected to be paid to participants, which include payments funded from the Company's assets and payments from the plans are as follows:
Years ending June 30
Pension
Benefits
 
Other Retiree
Benefits
EXPECTED BENEFIT PAYMENTS
 
 
2017
$
516

 
$
190

2018
527

 
207

2019
537

 
221

2020
550

 
233

2021
588

 
244

2022 - 2026
3,232

 
1,365

Employee Stock Ownership Plan (ESOP) Disclosures [Table Text Block]
The number of preferred shares outstanding at June 30 was as follows:
Shares in thousands
2016
 
2015
 
2014
Allocated
39,241

 
42,044

 
44,465

Unallocated
6,095

 
7,228

 
8,474

TOTAL SERIES A
45,336

 
49,272

 
52,939

 
 
 
 
Allocated
23,925

 
23,074

 
22,085

Unallocated
32,319

 
34,096

 
35,753

TOTAL SERIES B
56,244

 
57,170

 
57,838