v3.25.2
Pension and Other Postretirement Benefits (Tables)
 12 Months Ended
Jun. 30, 2025
Retirement Benefits [Abstract]  
Schedule of Projected Benefit Obligation, Changes in Fair Value of Plan Assets and Funded Status
The Company uses a June 30 measurement date for all pension and postretirement benefit plans. The following table sets forth the change in the projected benefit obligation, change in the fair value of plan assets and funded status for the Company’s pension and postretirement benefit plans:
Pension benefits Postretirement benefits
As of June 30,
2025202420252024
(in millions)
Projected benefit obligation, beginning of the year$1,119 $1,172 $45 $47 
Service cost23 27 1 — 
Interest cost57 61 2 2 
Benefits paid(44)(43)(3)(3)
Settlements(a)
(37)(50)— — 
Actuarial losses (gains)(b)
37 (48)(1)(1)
Projected benefit obligation, end of the year1,155 1,119 44 45 
Change in the fair value of plan assets for the Company’s benefit plans:
Fair value of plan assets, beginning of the year891 853 — — 
Actual return on plan assets54 45 — — 
Employer contributions40 86 3 3 
Benefits paid(44)(43)(3)(3)
Settlements(a)
(37)(50)— — 
Fair value of plan assets, end of the year904 891 — — 
Funded status(c)
$(251)$(228)$(44)$(45)
Grantor Trust assets(c)
$265 $266 $— $— 
(a)
Represents the full settlement of former employees’ deferred pension benefit obligations through lump sum payments.
(b)
Actuarial losses for June 30, 2025 and actuarial gains for June 30, 2024 were primarily due to a change in the mortality assumption and higher interest rates, respectively, utilized in measuring the plan obligations.
(c)
The Company has established an irrevocable grantor trust (the “Grantor Trust”), administered by an independent trustee, with the intention of making cash contributions to the Trust to fund certain future pension benefit obligations of the Company. The assets in the Grantor Trust are unsecured funds of the Company and can be used to satisfy the Company’s obligations in the event of bankruptcy or insolvency.
Schedule of Amounts Recognized in Balance Sheet
Amounts recognized in the Balance Sheets consist of:
Pension benefits Postretirement benefits
As of June 30,
2025202420252024
(in millions)
Pension assets$10 $36 $— $— 
Accrued pension liabilities(261)(264)(44)(45)
Net amounts recognized$(251)$(228)$(44)$(45)
Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss
Amounts recognized in Accumulated other comprehensive loss, before tax, consist of:
Pension benefitsPostretirement benefits
As of June 30,
2025202420252024
(in millions)
Actuarial losses (gains)$197 $169 $(27)$(30)
Schedule of Accumulated and Projected Benefit Obligations and Fair Value of Plan Assets for Funded and Unfunded Pension Plans Information about funded and unfunded pension plans is presented below:
Funded plansUnfunded plans
As of June 30,
2025202420252024
(in millions)
Projected benefit obligation$894 $855 $261 $264 
Accumulated benefit obligation794 747 256 260 
Fair value of plan assets904 891 — 
(a)
— 
(a)
(a)
The fair value of the assets in the Grantor Trust as of June 30, 2025 and 2024 was $265 million and $266 million, respectively.
Schedule of Components of Periodic Benefit Costs
The components of net periodic benefit costs were as follows:
Pension benefits Postretirement benefits
For the years ended June 30,
202520242023202520242023
(in millions)
Service cost$23 $27 $30 $1 $— $1 
Interest cost57 61 52 2 2 2 
Expected return on plan assets(50)(45)(40)— — — 
Amortization of deferred losses (gains)5 12 23 (4)(4)(4)
Net periodic benefit costs$35 $55 $65 $(1)$(2)$(1)
Schedule of Assumptions Used
The components of net periodic benefit costs other than the service cost component are included in Non- operating other, net in the Statements of Operations.
Pension benefitsPostretirement benefits
For the years ended June 30,
202520242023202520242023
Additional information
Weighted-average assumptions used to determine benefit obligations
Discount rate5.5 %5.5 %5.3 %5.3 %5.4 %5.3 %
Weighted-average assumptions used to determine net periodic benefit costs
Discount rate for service cost5.5 %5.3 %4.8 %5.5 %5.3 %4.8 %
Discount rate for interest cost5.3 %5.4 %4.5 %5.3 %5.4 %4.5 %
Expected return on plan assets5.6 %5.3 %5.0 %N/AN/AN/A
N/A – not applicable.
Schedule of Assumed Health Care Cost Trend Rates
The following assumed health care cost trend rates were also used in accounting for postretirement benefits:
Postretirement benefits
As of June 30,
20252024
Health care cost trend rate6.4 %6.6 %
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)4.9 %4.9 %
Year that the rate reaches the ultimate trend rate20312031
Schedule of Expected Estimated Benefit Payments
The following table sets forth the estimated benefit payments and estimated settlements for the next five fiscal years and in aggregate for the five fiscal years thereafter. These payments 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
(in millions)
Fiscal year
2026$88 $3 
202787 4 
202889 4 
202996 4 
203098 4 
2031-2035482 19 
Schedule of Plan Assets and Grantor Trust Assets by Level within Fair Value Hierarchy The assets are classified by level within the fair value hierarchy, as described in Note 6—Fair Value, as of June 30, 2025 and 2024:
As of June 30, 2025
Fair value measurements at reporting date usingAssets measured
TotalLevel 1
at NAV(a)
(in millions)
Pension plan assets
Pooled funds(b)
Money market funds$35 $35 $— 
Domestic equity funds116 116 — 
Domestic fixed income funds(c)
582 582 — 
International equity funds83 83 — 
Balanced funds55 55 — 
Partnership interests33 — 33 
Total fair value of plan assets$904 $871 $33 
Grantor Trust assets
Pooled funds(b)
Money market funds$8 $8 $— 
Domestic fixed income funds(c)
68 68 — 
Balanced funds
60 60 — 
Domestic government obligations(d)
128 128 — 
Other(e)
1 1 — 
Total fair value of Grantor Trust assets$265 $265 $— 
As of June 30, 2024
Fair value measurements at reporting
date using		Assets measured
TotalLevel 1
at NAV(a)
(in millions)
Pension plan assets
Pooled funds(b)
Money market funds$12 $12 $— 
Domestic equity funds156 156 — 
Domestic fixed income funds(c)
488 488 — 
International equity funds118 118 — 
Balanced funds69 69 — 
Partnership interests48 — 48 
Total fair value of plan assets$891 $843 $48 
Grantor Trust assets
Pooled funds(b)
Money market funds$26 $26 $— 
Domestic fixed income funds(c)
66 66 — 
Balanced funds
53 53 — 
Domestic government obligations(d)
120 120 — 
Other(e)
1 1 — 
Total fair value of Grantor Trust assets$266 $266 $— 
(a)
Investments that are measured at fair value using the net asset value (“NAV”) per share (or its equivalent) as a practical expedient are excluded from the fair value hierarchy disclosure. These investments have monthly liquidity.
(b)
Pooled funds that have a readily determinable fair value are valued at the regularly published NAV.
(c)
Domestic fixed income funds consist primarily of investment grade securities.
(d)
Government obligations consist of investment grade securities whose fair value is based on observable market data obtained from dealers and brokers.
(e)
Includes cash and cash equivalents.
Schedule of Weighted Average Asset Allocations by Asset Category
The funded plans weighted-average asset allocation, by asset category, are as follows:
Pension benefits
As of June 30,
20252024
Asset category
Equity investments22 %31 %
Fixed income investments, including cash72 61 
Other6 8 
Total100 %100 %