v3.26.1
EMPLOYEE BENEFIT PLANS
 12 Months Ended
Jun. 30, 2026
Retirement Benefits [Abstract]  
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS
Retirement Income Plans
The Company maintains various retirement income plans for eligible domestic and international employees. The remaining domestic retirement income plans are frozen. The Company contributed $12, $13 and $14 to its domestic retirement income plans during fiscal years 2026, 2025 and 2024, respectively. The Company’s funding policy is to contribute amounts sufficient to meet benefit payments.
In the second quarter of fiscal year 2024, the Company settled plan benefits of its domestic qualified pension plan (the Plan) and recorded a one-time noncash charge, net of curtailment gain, of $171 before taxes ($130 after tax) in the Company’s consolidated statements of earnings and comprehensive income. Following settlement, remaining excess plan assets of $3 and $19 were contributed to the Company’s domestic defined contribution plan during fiscal years 2025, and 2024, respectively.
Retirement Health Care Plans
The Company provides certain health care benefits for employees who meet age, participation and length of service requirements at retirement. The plans pay stated percentages of covered expenses after annual deductibles have been met or stated reimbursements up to a specified dollar subsidy amount. Benefits paid take into consideration payments by Medicare for the domestic plan. The plans are funded as claims are paid, and the Company has the right to modify or terminate certain plans.
Benefit Obligation and Funded Status
Summarized information for the Company’s retirement income and retirement health care plans as of and for the fiscal years ended June 30 is as follows:
Retirement IncomeRetirement Health Care
2026202520262025
Change in benefit obligations:
Benefit obligation as of beginning of year$117 $123 $17 $19 
Service cost1 1 — — 
Interest cost6 6 1 1 
Actuarial loss (gain)4 2 (2)(2)
Plan settlement— — — — 
Benefits paid(15)(16)(2)(1)
Translation and other adjustments— 1 — — 
Benefit obligation as of end of year$113 117 $14 $17 
Change in plan assets:
Fair value of assets as of beginning of year$27 $25 $— $— 
Actual return on plan assets5 3 — — 
Employer contributions13 15 1 1 
Plan Settlement— — — — 
Benefits paid(15)(16)(1)(1)
Fair value of plan assets as of end of year29 27 — — 
Accrued benefit cost, net funded status$(84)$(90)$(14)$(17)
Amount recognized in the balance sheets consists of:
Non-current pension benefit assets$12 $9 $— $— 
Current accrued benefit liability(12)(12)(2)(2)
Non-current accrued benefit liability(84)(87)(12)(15)
Accrued benefit cost, net$(84)(90)(14)(17)
For the retirement income plans, the benefit obligation is the projected benefit obligation (PBO). For the retirement health care plan, the benefit obligation is the accumulated benefit obligation (ABO).
The ABO for all retirement income plans was $111, $115 and $105 as of June 30, 2026, 2025 and 2024, respectively.
Retirement income plans with ABO or PBO in excess of plan assets as of June 30 were as follows:
ABO Exceeds the Fair Value of Plan AssetsPBO Exceeds the Fair Value of Plan Assets
2026202520262025
Projected benefit obligation$96 $98 $97 $100 
Accumulated benefit obligation95 97 95 98 
Fair value of plan assets— — 1 2 
Net Periodic Benefit Cost
The net cost of the retirement income and health care plans for the fiscal years ended June 30 included the following components:
Retirement IncomeRetirement Health Care
202620252024202620252024
Service cost$1 $1 $1 $— $— $— 
Interest cost6 6 12 1 1 1 
Expected return on plan assets(1)(1)(2)— — — 
Amortization of unrecognized items— — 3 (2)(2)(2)
Curtailment gain recognized— — (6)— — — 
Settlement loss recognized— (2)179 — — — 
Total$6 $4 $187 $(1)$(1)$(1)
The service cost component of the net periodic benefit cost is reflected in employee benefit costs. All other components of net periodic benefit cost, except for the net settlement loss recognized in relation to the settlement of the Plan recognized in the second quarter of fiscal year 2024, are reflected in Other (income) expense, net.
Items not yet recognized as a component of postretirement expense as of June 30, 2026 consisted of:
Retirement IncomeRetirement Health Care
Net actuarial loss (gain)$19 $(14)
Prior service benefit— (4)
Net deferred income tax (assets) liabilities(4)4 
Accumulated other comprehensive loss (income)$15 $(14)
Net actuarial loss (gain) recorded in Accumulated other comprehensive net (loss) income for the fiscal year ended June 30, 2026 included the following:
Retirement IncomeRetirement Health Care
Net actuarial loss (gain) as of beginning of year$19 $(14)
Amortization, curtailment, and settlement during the year— 2 
Loss (gain) during the year— (2)
Net actuarial loss (gain) as of end of year$19 $(14)
The Company uses the straight-line amortization method for unrecognized prior service costs and benefits.
Assumptions
Weighted-average assumptions used to estimate the actuarial present value of benefit obligations were as follows as of June 30:
Retirement IncomeRetirement Health Care
2026202520262025
Discount rate5.43 %5.41 %5.05 %5.28 %
Rate of compensation increase3.27 %3.32 %n/an/a
Interest crediting rate6.00 %5.90 %n/an/a
Weighted-average assumptions used to estimate the retirement income and retirement health care costs were as follows as of June 30:
Retirement Income
202620252024
Discount rate5.41 %5.52 %4.63 %
Rate of compensation increase3.32 %3.23 %3.20 %
Expected return on plan assets5.49 %5.69 %3.39 %
Interest crediting rate5.90 %5.40 %2.69 %
Retirement Health Care
202620252024
Discount rate5.28 %5.38 %5.10 %
The expected long-term rate of return assumption is based on prospective returns according to the fund’s current target asset allocation.
The actuarial benefit obligation gain during fiscal years 2026 and 2025 was primarily driven by lower participation rate assumed for the retirement health plans.
Expected Benefit Payments
Expected benefit payments for the Company’s retirement income and retirement health care plans as of June 30, 2026, were as follows:
Retirement IncomeRetirement Health Care
2027$13 $2 
202813 1 
202913 1 
203013 1 
203110 1 
Fiscal years 2032 through 203641 5 
Expected benefit payments are based on the same assumptions used to measure the benefit obligations and include estimated future employee service.
Plan Assets
The weighted average target allocation and asset allocations by asset category as of June 30, 2026, are as follows:
% Target Allocation% of Plan Assets
Equity Investment67 %67 %
Fixed income19 %19 %
Others14 %14 %
Total100 %100 %
The target asset allocations are determined based on the optimal balance between risk and return and, at times, are adjusted to achieve the respective plan’s overall investment objective to generate sufficient resources to pay current and projected plan obligations over the life of the plans. 
The following table sets forth the retirement income plans’ assets carried at fair value as of June 30:
20262025
Cash equivalents — Level 1$— $— 
Total assets in the fair value hierarchy— — 
Common collective trusts measured at net asset value
Bond funds$5 $6 
International equity funds20 17 
Real estate fund2 2 
Other2 2 
Total common collective trust measured at net asset value$29 $27 
Total assets at fair value$29 $27 
Common collective trust funds are not publicly traded and were valued at a net asset value unit price determined by the portfolio’s sponsor based on the fair value of underlying assets held by the common collective trust fund on June 30, 2026 and 2025.
The common collective trusts are invested in various trusts that attempt to achieve their investment objectives by investing primarily in other collective investment funds that have characteristics consistent with each trust’s overall investment objective and strategy.
Defined Contribution Plans
The Company has various defined contribution plans for eligible domestic and international employees. The aggregate cost of the domestic defined contribution plans was $57, $57 and $63 in fiscal years 2026, 2025 and 2024, respectively. The aggregate cost of the international defined contribution plans was $4, $4 and $5 for the fiscal years ended June 30, 2026, 2025 and 2024, respectively.