v3.25.2
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN (Tables)
 12 Months Ended
Jun. 30, 2025
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 302025202420252024
CHANGE IN BENEFIT OBLIGATION
Benefit obligation at beginning of year (3)
$12,355 $12,499 $2,687 $2,933 
Service cost173 164 61 68 
Interest cost498 527 147 157 
Participants' contributions15 14 56 56 
Amendments12 21 (4)2 
Net actuarial loss/(gain)(263)(11)679 (268)
Special termination benefits3 4 2 3 
Currency translation and other980 (155)17 (22)
Benefit payments(617)(707)(250)(242)
BENEFIT OBLIGATION AT END OF YEAR (3)
$13,156 $12,355 $3,396 $2,687 
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year$10,857 $10,374 $8,043 $7,324 
Actual return on plan assets326 1,058 (168)784 
Employer contributions189 239 42 44 
Participants' contributions15 14 56 56 
Currency translation and other903 (119)— — 
ESOP debt impacts (4)
— — 64 77 
Benefit payments(617)(707)(250)(242)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR$11,672 $10,857 $7,787 $8,043 
FUNDED STATUS$(1,484)$(1,498)$4,391 $5,356 
(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 302025202420252024
CLASSIFICATION OF NET AMOUNT RECOGNIZED
Noncurrent assets$1,621 $1,458 $5,123 $6,047 
Current liabilities(78)(73)(41)(38)
Noncurrent liabilities(3,026)(2,884)(691)(653)
NET AMOUNT RECOGNIZED$(1,484)$(1,498)$4,391 $5,356 
AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE (INCOME)/LOSS (AOCI)
Net actuarial loss/(gain)$1,322 $1,258 $166 $(1,493)
Prior service cost/(credit)122 140 (553)(655)
NET AMOUNTS RECOGNIZED IN AOCI$1,444 $1,398 $(387)$(2,148)
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 3020252024
PENSION PLANS WITH A PROJECTED BENEFIT OBLIGATION IN EXCESS OF PLAN ASSETS
Projected benefit obligation$8,175 $7,613 
Fair value of plan assets5,070 4,656 
PENSION PLANS WITH AN ACCUMULATED BENEFIT OBLIGATION IN EXCESS OF PLAN ASSETS
Accumulated benefit obligation$7,653 $7,103 
Fair value of plan assets5,018 4,624 
OTHER RETIREE BENEFIT PLANS WITH AN ACCUMULATED BENEFIT OBLIGATION IN EXCESS OF PLAN ASSETS
Accumulated benefit obligation$802 $770 
Fair value of plan assets70 79 
Schedule of Net Benefit Costs Components of the net periodic benefit cost were as follows:
Pension BenefitsOther Retiree Benefits
Fiscal years ended June 30202520242023202520242023
AMOUNTS RECOGNIZED IN NET PERIODIC BENEFIT COST/(CREDIT)
Service cost$173 $164 $173 $61 $68 $71 
Interest cost498 527 430 147 157 142 
Expected return on plan assets(657)(610)(591)(745)(687)(611)
Amortization of net actuarial loss/(gain)63 95 133 (59)(38)(7)
Amortization of prior service cost/(credit) 40 37 26 (128)(127)(125)
Amortization of net actuarial loss/(gain) due to settlements5 (13)— — — — 
Special termination benefits3 4 5 2 3 4 
NET PERIODIC BENEFIT COST/(CREDIT)$126 $203 $176 $(721)$(623)$(526)
CHANGE IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN AOCI
Net actuarial loss/(gain) - current year$68 $(458)$1,592 $(366)
Prior service cost/(credit) - current year12 21 (4)2 
Amortization of net actuarial (loss)/gain(63)(95)59 38 
Amortization of prior service (cost)/credit(40)(37)128 127 
Amortization of net actuarial (loss)/gain due to settlements(5)13 — — 
Currency translation and other74 (21)(14)(2)
TOTAL CHANGE IN AOCI46 (576)1,761 (201)
NET AMOUNTS RECOGNIZED IN PERIODIC BENEFIT COST/(CREDIT) AND AOCI$171 $(373)$1,040 $(824)
Defined Benefit Plan, Assumptions The weighted average assumptions used to determine benefit obligations recorded on the Consolidated Balance Sheets as of June 30, 2025 and 2024, were as follows: (1)
Pension BenefitsOther Retiree Benefits
As of June 302025202420252024
Discount rate4.2 % 4.2 % 5.9 % 5.8 %
Rate of compensation increase2.7 %2.8 %N/AN/A
Interest crediting rate for cash balance plans4.6 %4.7 %N/AN/A
Health care cost trend rates assumed for next yearN/AN/A6.9 %6.3 %
Rate to which the health care cost trend rate is assumed to decline (ultimate trend rate)N/AN/A5.4 %4.9 %
Year that the rate reaches the ultimate trend rateN/AN/A20302029
(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 30202520242023202520242023
Discount rate4.2 %4.2 %3.7 %5.8 %5.6 %5.0 %
Expected return on plan assets6.0 %6.0 %5.9 %8.5 %8.5 %8.4 %
Rate of compensation increase2.8 %2.9 %2.8 %N/AN/AN/A
Interest crediting rate for cash balance plans4.7 %4.3 %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, 2025, 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 Level20252024Fair Value Hierarchy Level20252024
ASSETS AT FAIR VALUE
Cash and cash equivalents1$55 $267 1$135 $135 
Company common stock— — 1496 451 
Company preferred stock (1)
— — 27,087 7,380 
Fixed income securities (2)
21,050 1,076 — — 
Insurance contracts (3)
3207 165 — — 
TOTAL ASSETS IN THE FAIR VALUE HIERARCHY1,312 1,508 7,718 7,966 
Investments valued at net asset value (4)
10,361 9,349 68 77 
TOTAL ASSETS AT FAIR VALUE$11,672 $10,857 $7,787 $8,043 
(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
2026$657 $201 
2027663 203 
2028720 208 
2029726 218 
2030760 225 
2031 - 20354,131 1,258 
Employee Stock Ownership Plan (ESOP) Disclosures The number of preferred shares outstanding at June 30 was as follows:
Shares in thousands202520242023
Allocated20,648 22,724 24,449 
Unallocated— — 535 
TOTAL SERIES A20,648 22,724 24,984 
Allocated34,965 33,723 32,172 
Unallocated14,142 15,864 17,867 
TOTAL SERIES B49,107 49,587 50,039