Employee Retirement Benefit Plans (Tables)

12 Months Ended

Jun. 30, 2022

Jun. 30, 2021

Benefit obligation and fair value of plan assets for the defined benefit retirement and postretirement plan

The following table provides a reconciliation of the change in projected benefit obligation and fair value of plan assets for the defined benefit retirement and other retirement plans, excluding the multi-employer pension plan liability:


	Retirement Benefits				Other Post-Retirement Benefits
	June 30,				June 30,
(Dollars in millions)	2022		2021		2022		2021
Accumulated Benefit Obligation	$	262	$	364	$	2	$	2

Change in Benefit Obligation
Benefit obligation at beginning of year	372		358		2		3
Company service cost	4		4		—		—
Interest cost	5		4		—		—



Settlements	(1)		—		—		—



Benefits paid	(9)		(13)		—		(1)

Actuarial (gain) loss (1)	(71)		(9)		—		—
Exchange rate (loss) gain	(32)		28		—		—
Benefit obligation at end of year	$	268	$	372	$	2	$	2

Change in Plan Assets
Fair value of plan assets at beginning of year	318		295		—		—
Actual return on plan assets	(50)		(1)		—		—
Company contributions	10		11		—		—

Settlements	(1)		—		—		—



Benefits paid	(9)		(13)		—		—

Exchange rate gain (loss)	(28)		26		—		—
Fair value of plan assets at end of year	$	240	$	318	$	—	$	—

Funded Status
Funded status at end of year	(28)		(54)		(2)		(2)

Net pension liability	$	(28)	$	(54)	$	(2)	$	(2)

Reconciliation of the net amount recognized in the Consolidated Balance Sheets

The following table provides a reconciliation of the net amount recognized in the consolidated balance sheets:


	Retirement Benefits				Other Post-Retirement Benefits
	June 30,				June 30,
(Dollars in millions)	2022		2021		2022		2021
Amounts Recognized in Statement of Financial Position
Noncurrent assets	$	37	$	43	$	—	$	—
Current liabilities	(1)		(1)		—		—
Noncurrent liabilities	(64)		(96)		(2)		(2)
Total liability	(28)		(54)		(2)		(2)

Amounts Recognized in Accumulated Other Comprehensive Loss

Prior service cost	(1)		(1)		—		—
Net loss (gain)	49		62		(1)		(1)
Total accumulated other comprehensive loss (income) at the end of the fiscal year	48		61		(1)		(1)

Additional Information for Plan with ABO or PBO in Excess of Plan Assets
Projected benefit obligation	132		130		2		2
Accumulated benefit obligation	128		124		2		2
Fair value of plan assets	67		32		—		—






Components of Net Periodic Benefit Cost
Service cost	4		4		—		—
Interest cost	5		4		—		—
Expected return on plan assets	(10)		(11)		—		—
Amortization of unrecognized:


Net loss	2		3		—		—


Net periodic benefit cost	$	1	$	—	$	—	$	—


	Retirement Benefits						Other Post-Retirement Benefits
	June 30,						June 30,
(Dollars in millions)	2022			2021			2022			2021
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income
Net gain arising during the year	$	(14)		$	—		$	—		$	—




Exchange rate loss recognized during the year	1			—			—			—
Total recognized in other comprehensive income	$	(13)		$	—		$	—		$	—
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income
Total recognized in net periodic benefit cost and other comprehensive income	$	(12)		$	—		$	—		$	—
Estimated Amounts to be Amortized from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost
Amortization of:


Net loss	$	1		$	3		$	—		$	—
Financial Assumptions Used to Determine Benefit Obligations at the Balance Sheet Date
Discount rate (%)	3.6		%	1.6		%	4.0		%	2.0		%
Rate of compensation increases (%)	2.7		%	2.0		%	n/a			n/a
Financial Assumptions Used to Determine Net Periodic Benefit Cost for Financial Year
Discount rate (%)	1.6		%	1.4		%	2.0		%	1.8		%
Rate of compensation increases (%)	2.0		%	2.0		%	n/a			n/a
Expected long-term rate of return (%)	3.4		%	3.6		%	n/a			n/a
Expected Future Contributions
Fiscal year 2023	$	7		$	8		$	—		$	—


	Retirement Benefits						Other Post-Retirement Benefits
	June 30,						June 30,
(Dollars in millions)	2022			2021			2022			2021
Expected Future Benefit Payments
Financial year
2023	$	14		$	13		$	—		$	—
2024	13			14			—			—
2025	14			15			—			—
2026	16			15			—			—
2027	14			15			—			—
2028-2032	$	80		$	84		$	1		$	1

Actual Asset Allocation (%)
Equities	4.1		%	4.4		%	—		%	—		%
Government bonds	35.6		%	30.6		%	—		%	—		%
Corporate bonds	18.3		%	21.0		%	—		%	—		%
Property	4.9		%	3.5		%	—		%	—		%
Insurance contracts	12.0		%	9.6		%	—		%	—		%
Other	25.1		%	30.9		%	—		%	—		%
Total	100.0		%	100.0		%	—		%	—		%

Actual Asset Allocation (Amount)
Equities	$	10		$	14		$	—		$	—
Government bonds	85			97			—			—
Corporate bonds	44			67			—			—
Property	12			11			—			—
Insurance contracts	29			31			—			—
Other	60			98			—			—
Total	$	240		$	318		$	—		$	—

Target Asset Allocation (%)
Equities	4.1		%	4.5		%	—		%	—		%
Government bonds	35.6		%	30.5		%	—		%	—		%
Corporate bonds	18.3		%	21.1		%	—		%	—		%
Property	4.9		%	3.5		%	—		%	—		%
Insurance contracts	12.0		%	9.6		%	—		%	—		%
Other	25.1		%	30.8		%	—		%	—		%
Total	100.0		%	100.0		%	—		%	—		%

Summary of plan assets that are measured in fair value

The following tables provide a summary of plan assets that are measured at fair value as of June 30, 2022 and 2021, aggregated by the level in the fair value hierarchy within which those measurements fall:


As of June 30, 2022 (dollars in millions)	Level 1		Level 2		Level 3		Investments Measured at Net Asset Value		Total Assets

Equity securities	$	—	$	10	$	—	$	—	$	10
Debt securities	—		129		—		—		129
Real estate	—		10		2		—		12
Other (1)	—		64		25		—		89
Total	$	—	$	213	$	27	$	—	$	240

(1) Other as of June 30, 2022, included $35 million of investments in hedge funds related to the Company's U.K. pension plan, which were classified as Level 2.


As of June 30, 2021 (dollars in millions)	Level 1		Level 2		Level 3		Investments Measured at Net Asset Value		Total Assets

Equity securities	$	—	$	14	$	—	$	—	$	14
Debt securities	—		164		—		—		164
Real estate	—		11		—		—		11
Other (1)	—		106		23		—		129
Total	$	—	$	295	$	23	$	—	$	318

Reconciliation of beginning and ending balances of level 3 assets

The following table provides a reconciliation of the beginning and ending balances of Level 3 assets as well as the changes during the period attributable to assets held and those purchases, sales, settlements, contributions, and benefits that were paid:


	Fair Value Measurement Using Significant Unobservable Inputs Total (Level 3)		Fair Value Measurement Using Significant Unobservable Inputs Insurance Contracts		Fair Value Measurement Using Significant Unobservable Inputs Other
Total (Level 3)
(Dollars in millions)
Beginning Balance at June 30, 2021	$	23	$	3	$	20
Actual return on plan assets:
Relating to assets still held at the reporting date	(2)		—		(2)

Purchases, sales, settlements, contributions and benefits paid	(5)		(3)		(2)
Transfers in or out of Level 3, net	11		9		2
Ending Balance at June 30, 2022	$	27	$	9	$	18

Assumed healthcare cost trend rates


	Other Post-Retirement Benefits
Assumed Healthcare Cost Trend Rates at the Balance Sheet Date	2022		2021


Healthcare cost trend rate – initial (%)
Pre-65	n/a		n/a
Post-65	4.6	%	7.3	%
Healthcare cost trend rate – ultimate (%)
Pre-65	n/a		n/a
Post-65	4.1	%	4.4	%
Year in which ultimate rates are reached
Pre-65	n/a		n/a
Post-65	2040		2035