v3.26.1
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN (Tables)
 12 Months Ended
Jun. 30, 2026
Retirement Benefits [Abstract]  
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan 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)
Fiscal years ended June 302026202520262025
CHANGE IN BENEFIT OBLIGATION
Benefit obligation at beginning of year (3)
$13,156 $12,355 $3,396 $2,687 
Service cost182 173 80 61 
Interest cost499 498 181 147 
Participants' contributions16 15 59 56 
Amendments18 12 — (4)
Net actuarial loss/(gain)(472)(263)244 679 
Special termination benefits11 3 13 2 
Currency translation and other(265)980 17 17 
Benefit payments(691)(617)(257)(250)
BENEFIT OBLIGATION AT END OF YEAR (3)
$12,455 $13,156 $3,734 $3,396 
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year$11,672 $10,857 $7,787 $8,043 
Actual return on plan assets1,253 326 (540)(168)
Employer contributions220 189 40 42 
Participants' contributions16 15 59 56 
Currency translation and other(312)903 — — 
ESOP debt impacts (4)
— — 76 64 
Benefit payments(691)(617)(257)(250)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR$12,159 $11,672 $7,166 $7,787 
FUNDED STATUS$(296)$(1,484)$3,432 $4,391 
(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 In these instances, benefit payments are typically paid directly from the Company's cash as they become due.
Pension BenefitsOther Retiree Benefits
As of June 302026202520262025
CLASSIFICATION OF NET AMOUNT RECOGNIZED
Noncurrent assets$1,992 $1,621 $4,213 $5,123 
Current liabilities(85)(78)(45)(41)
Noncurrent liabilities(2,204)(3,026)(736)(691)
NET AMOUNT RECOGNIZED$(296)$(1,484)$3,432 $4,391 
AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE (INCOME)/LOSS (AOCI)
Net actuarial loss/(gain)$197 $1,322 $1,743 $166 
Prior service cost/(credit)98 122 (458)(553)
NET AMOUNTS RECOGNIZED IN AOCI$295 $1,444 $1,285 $(387)
Schedule of Accumulated and Projected Benefit Obligations Information related to the funded status of selected pension and other retiree benefits at June 30 is as follows:
As of June 3020262025
PENSION PLANS WITH A PROJECTED BENEFIT OBLIGATION IN EXCESS OF PLAN ASSETS
Projected benefit obligation$7,380 $8,175 
Fair value of plan assets5,091 5,070 
PENSION PLANS WITH AN ACCUMULATED BENEFIT OBLIGATION IN EXCESS OF PLAN ASSETS
Accumulated benefit obligation$6,968 $7,653 
Fair value of plan assets5,070 5,018 
OTHER RETIREE BENEFIT PLANS WITH AN ACCUMULATED BENEFIT OBLIGATION IN EXCESS OF PLAN ASSETS
Accumulated benefit obligation$837 $802 
Fair value of plan assets55 70 
Schedule of Net Benefit Costs Components of the net periodic benefit cost were as follows:
Pension BenefitsOther Retiree Benefits
Fiscal years ended June 30202620252024202620252024
AMOUNTS RECOGNIZED IN NET PERIODIC BENEFIT COST/(CREDIT)
Service cost$182 $173 $164 $80 $61 $68 
Interest cost499 498 527 181 147 157 
Expected return on plan assets(681)(657)(610)(787)(745)(687)
Amortization of net actuarial loss/(gain)71 63 95 (4)(59)(38)
Amortization of prior service cost/(credit) 39 40 37 (90)(128)(127)
Amortization of net actuarial loss/(gain) due to settlements(6)5 (13)— — — 
Special termination benefits11 3 4 13 2 3 
NET PERIODIC BENEFIT COST/(CREDIT)$114 $126 $203 $(607)$(721)$(623)
CHANGE IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN AOCI
Net actuarial loss/(gain) - current year$(1,044)$68 $1,571 $1,592 
Prior service cost/(credit) - current year18 12 — (4)
Amortization of net actuarial (loss)/gain(71)(63)4 59 
Amortization of prior service (cost)/credit(39)(40)90 128 
Amortization of net actuarial (loss)/gain due to settlements6 (5)— — 
Currency translation and other(20)74 7 (14)
TOTAL CHANGE IN AOCI(1,149)46 1,672 1,761 
NET AMOUNTS RECOGNIZED IN PERIODIC BENEFIT COST/(CREDIT) AND AOCI$(1,035)$171 $1,065 $1,040 
Defined Benefit Plan, Assumptions The weighted average assumptions used to determine benefit obligations recorded on the Consolidated Balance Sheets as of June 30, 2026 and 2025, were as follows: (1)
Pension BenefitsOther Retiree Benefits
As of June 302026202520262025
Discount rate4.6 %4.2 %6.0 %5.9 %
Rate of compensation increase2.7 %2.7 %N/AN/A
Interest crediting rate for cash balance plans4.6 %4.6 %N/AN/A
Health care cost trend rates assumed for next yearN/AN/A7.3 %6.9 %
Rate to which the health care cost trend rate is assumed to decline (ultimate trend rate)N/AN/A5.6 %5.4 %
Year that the rate reaches the ultimate trend rateN/AN/A20312030
(1)Determined as of end of fiscal year.
The weighted average assumptions used to determine net benefit cost recorded on the Consolidated Statements of Earnings for the fiscal years ended June 30 were as follows: (1)
Pension BenefitsOther Retiree Benefits
Fiscal years ended June 30202620252024202620252024
Discount rate4.2 %4.2 %4.2 %5.9 %5.8 %5.6 %
Expected return on plan assets6.0 %6.0 %6.0 %8.5 %8.5 %8.5 %
Rate of compensation increase2.7 %2.8 %2.9 %N/AN/AN/A
Interest crediting rate for cash balance plans4.6 %4.7 %4.3 %N/AN/AN/A
(1)Determined as of beginning of fiscal year.
Schedule of Allocation of Plan Assets
Our target asset allocation for the fiscal year ended June 30, 2026, was as follows:
Target Asset Allocation (1)
Pension BenefitsOther Retiree
Benefits
Asset Category
Cash1 %2 %
Debt securities64 %1 %
Equity securities35 %97 %
TOTAL100 %100 %
(1)Actual allocations approximated the targets.
Pension and Postretirement Plan Assets By Fair Value Hierarchy Investments valued using net asset value as a practical expedient are not valued using the fair value hierarchy, but rather valued using the net asset value reported by the managers of the funds and as supported by the unit prices of actual purchase and sale transactions.
Pension BenefitsOther Retiree Benefits
As of June 30Fair Value Hierarchy Level20262025Fair Value Hierarchy Level20262025
ASSETS AT FAIR VALUE
Cash and cash equivalents1$74 $55 1$180 $135 
Company common stock— — 1502 496 
Company preferred stock (1)
— — 26,433 7,087 
Fixed income securities (2)
22,519 1,050 — — 
Insurance contracts (3)
3238 207 — — 
TOTAL ASSETS IN THE FAIR VALUE HIERARCHY2,831 1,312 7,115 7,718 
Investments valued at net asset value (4)
9,328 10,361 50 68 
TOTAL ASSETS AT FAIR VALUE$12,159 $11,672 $7,166 $7,787 
(1)Company preferred stock is valued based on the value of Company common stock and is presented net of ESOP debt discussed below.
(2)Fixed income securities are estimated by using pricing models or quoted prices of securities with similar characteristics.
(3)Fair values of insurance contracts are valued based on either their cash equivalent value or models that project future cash flows and discount the future amounts to a present value using market-based observable inputs, including credit risk and interest rate curves. The activity for Level 3 assets is not significant for all years presented.
(4)Investments valued using net asset value as a practical expedient are primarily equity and fixed income collective funds.
Schedule of Expected Benefit Payments
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:
Fiscal years ending June 30Pension BenefitsOther Retiree Benefits
EXPECTED BENEFIT PAYMENTS
2027$712 $215 
2028735 218 
2029753 228 
2030797 236 
2031806 248 
2032 - 20364,097 1,377 
Employee Stock Ownership Plan (ESOP) Disclosures The number of Series B preferred shares outstanding at June 30 was as follows:
Shares in thousands202620252024
Allocated36,365 34,965 33,723 
Unallocated12,277 14,142 15,864 
TOTAL SERIES B48,642 49,107 49,587