The following table sets forth the fair value of the C ompany's plan assets as of June 30, 2022 and 2021, segregated by level within the fair value hierarchy (refer to Note 9 for further discussion on the fair value hierarchy and fair value principles ). 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 sa le transactions. Pension Benefits Other Retiree Benefits As of June 30 Fair Value Hierarchy Level 2022 2021 Fair Value Hierarchy Level 2022 2021 ASSETS AT FAIR VALUE Cash and cash equivalents 1 $ 78 $ 82 1 $ 130 $ 131 Company common stock — — 1 319 275 Company preferred stock (1) — — 2 6,340 5,911 Fixed income securities (2) 2 1,545 1,931 2 — 3 Insurance contracts (3) 3 94 111 — — TOTAL ASSETS IN THE FAIR VALUE HIERARCHY 1,717 2,124 6,789 6,320 Investments valued at net asset value (4) 8,456 10,917 100 124 TOTAL ASSETS AT FAIR VALUE $ 10,173 13,041 $ 6,889 6,444 (1) Company preferred stock is valued based on the value of Company common stock and is presented net of ESOP debt dis cussed below. (2) Fixed income securities, classified as Level 2, are estimated by using pricing models or quoted prices of securities with sim ilar 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) Inve stments valued using net asset value as a practical expedient are primarily equity and fixed income collective funds. Cash Flows . Management's best estimate of cash requirements and discretionary contributions for the defined benefit retirement plans and other retiree benefit plans for the year ending June 30, 2023, is $244 and $47, respectively. Expected contributions are dependent on many variables, including the variability of the market value of the plan assets as compared to the benefit obligation and other market or regulatory conditions. In addition, we take into consideration our business investment opportunities and resulting cash requirements. Accordingly, actual funding may differ significantly from current estimates. Tota l 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: Years ending June 30 Pension Benefits Other Retiree Benefits EXPECTED BENEFIT PAYMENTS 2023 $ 571 $ 177 2024 564 186 2025 590 190 2026 585 193 2027 601 198 2028 - 2032 3,459 1,076 Employee Stock Ownership Plan We maintain the ESOP to provide funding for certain employee benefits discussed in the preceding paragraphs. The ESOP borrowed $1.0 billion in 1989 and the proceeds were used to purchase Series A ESOP Convertible Class A Preferred Stock to fund a portion of the U.S. DC plan. Principal and interest requirements of the borrowing were paid by the Trust from dividends on the preferred shares and from advances provided by the Company. The original borrowing of $1.0 billion has been repaid in full, and advances from the Company of $15 remain outstanding at June 30, 2022. Each share is convertibl e at the option of the holder into one share of the Company's common stock. The dividend for the current year was equal to the common stock dividend of $3.52 per share. The liquidation value is $6.82 per share. 56 The Procter & Gamble Company Amounts in millions of dollars except per share amounts or as otherwise specified.