XML 35 R22.htm IDEA: XBRL DOCUMENT
v3.22.2

EMPLOYEE BENEFIT PLANS | 12 Months Ended
--- | ---
Jun. 30, 2022
Retirement Benefits [Abstract] |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS We have a profit sharing program for eligible employees, which distributes a percentage of our pre-tax profits on a quarterly basis. In addition, we have an employee savings plan that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Since January 1, 2019, the employer match is the greater of 50% of the first $8,000 of an eligible employee’s contributions or 50% of the first 5% of eligible compensation contributed plus 25% of the next 5% of compensation contributed. The total expenses under the profit sharing and 401(k) programs aggregated $33.3 million, $27.0 million, and $24.6 million in the fiscal years ended June 30, 2022, 2021 and 2020, respectively. We have no defined benefit plans in the U.S. In addition to the profit sharing plan and the U.S. 401(k), several of our foreign subsidiaries have retirement plans for their full-time employees, several of which are defined benefit plans. Consistent with the requirements of local law, our deposited funds for certain of these plans are held with insurance companies, with third-party trustees or in government-managed accounts. The assumptions used in calculating the obligation for the foreign plans depend on the local economic environment. We apply authoritative guidance that requires an employer to recognize the funded status of each of our defined benefit pension and post-retirement benefit plans as a net asset or liability on its balance sheets. Additionally, the authoritative guidance requires an employer to measure the funded status of each of its plans as of the date of its year-end statement of financial position. The benefit obligations and related assets under our plans have been measured as of June 30, 2022 and 2021. Summary data relating to our foreign defined benefit pension plans, including key weighted-average assumptions used, is provided in the following tables:
| Year Ended June 30,
(In thousands) | 2022 |  | 2021
Change in projected benefit obligation: |  |  |
Projected benefit obligation as of the beginning of the fiscal year | $ | 134,305 |  |  | $ | 119,870 |
Service cost | 5,054 |  |  | 4,649 |
Interest cost | 1,003 |  |  | 1,187 |
Contributions by plan participants | 78 |  |  | 72 |
Actuarial loss | 3,029 |  |  | 7,912 |
Benefit payments | (2,164) |  |  | (2,629) |
Plan amendment impact | 670 |  |  | — |
Settlements impact | (1,010) |  |  | — |
Foreign currency exchange rate changes and others, net | (16,380) |  |  | 3,244 |
Projected benefit obligation as of the end of the fiscal year | $ | 124,585 |  |  | $ | 134,305 |
| Year Ended June 30,
(In thousands) | 2022 |  | 2021
Change in fair value of plan assets: |  |  |
Fair value of plan assets as of the beginning of the fiscal year | $ | 44,726 |  |  | $ | 37,928 |
Actual return on plan assets | (1,087) |  |  | 1,074 |
Employer contributions | 6,955 |  |  | 6,103 |
Benefit and expense payments | (2,160) |  |  | (2,626) |
Settlements impact | (1,010) |  |  | — |
Foreign currency exchange rate changes and others, net | (3,831) |  |  | 2,247 |
Fair value of plan assets as of the end of the fiscal year | $ | 43,593 |  |  | $ | 44,726 |
| As of June 30,
(In thousands) | 2022 |  | 2021
Underfunded status | $ | 80,992 |  |  | $ | 89,579 |
| As of June 30,
(In thousands) | 2022 |  | 2021
Plans with accumulated benefit obligations in excess of plan assets: |  |  |
Accumulated benefit obligation | $ | 77,697 |  |  | $ | 81,924 |
Projected benefit obligation | $ | 124,585 |  |  | $ | 134,305 |
Plan assets at fair value | $ | 43,593 |  |  | $ | 44,726 |
| Year Ended June 30,
| 2022 |  | 2021 |  | 2020
Weighted-average assumptions(1): |  |  |  |  |
Discount rate | 0.9% - 3.0% |  | 0.5% - 1.7% |  | 0.6% - 1.7%
Expected rate of return on assets | 0.9% - 3.0% |  | 0.6% - 2.9% |  | 0.8% - 2.9%
Rate of compensation increases | 2.3% - 5.0% |  | 2.3% - 5.0% |  | 1.8% - 4.5%
__________________ (1)Represents the weighted-average assumptions used to determine the benefit obligation. The assumptions for expected rate of return on assets were developed by considering the historical returns and expectations of future returns relevant to the country in which each plan is in effect and the investments applicable to the corresponding plan. The discount rate for each plan was derived by reference to appropriate benchmark yields on high quality corporate bonds, allowing for the approximate duration of both plan obligations and the relevant benchmark index. The following table presents losses recognized in AOCI before tax related to our foreign defined benefit pension plans:
| As of June 30,
(In thousands) | 2022 |  | 2021
Unrecognized prior service cost | $ | 12,414 |  |  | $ | — |
Unrealized net loss | 19,400 |  |  | 30,375 |
Amount of losses recognized | $ | 31,814 |  |  | $ | 30,375 |
The components of our net periodic cost relating to our foreign subsidiaries’ defined benefit pension plans are as follows:
| Year Ended June 30,
(In thousands) | 2022 |  | 2021 |  | 2020
Components of net periodic pension cost: |  |  |  |  |
Service cost(1) | $ | 5,054 |  |  | $ | 4,649 |  |  | $ | 4,823 |
Interest cost | 1,003 |  |  | 1,187 |  |  | 1,086 |
Return on plan assets | (528) |  |  | (549) |  |  | (475) |
Amortization of prior service cost | 671 |  |  | — |  |  | 3 |
Amortization of net loss | 1,406 |  |  | 1,071 |  |  | 1,214 |
Loss due to settlement/curtailment | 38 |  |  | 130 |  |  | — |
Foreign currency exchange rate changes | (19) |  |  | — |  |  | — |
Net periodic pension cost | $ | 7,625 |  |  | $ | 6,488 |  |  | $ | 6,651 |
__________________ (1)Service cost is reported in cost of revenues, R&D and SG&A expenses. All other components of net periodic pension cost are reported in other expense (income), net in the Consolidated Statements of Operations. Fair Value of Plan Assets Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The three levels of inputs used to measure fair value of plan assets are described in Note 3 “Fair Value Measurements.” The foreign plans’ investments are managed by third-party trustees consistent with the regulations or market practice of the country where the assets are invested. We are not actively involved in the investment strategy, nor do we have control over the target allocation of these investments. These investments made up 100% of total foreign plan assets in the fiscal years ended June 30, 2022 and 2021. The expected aggregate employer contribution for the foreign plans during the fiscal year ending June 30, 2023 is $7.8 million. The total benefits to be paid from the foreign pension plans are not expected to exceed $6.6 million in any year through the fiscal year ending June 30, 2032. Foreign plan assets measured at fair value on a recurring basis consisted of the following investment categories as of June 30, 2022 and 2021, respectively:
As of June 30, 2022 (In thousands) | Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  |
Cash and cash equivalents | $ | 27,543 |  |  | $ | 27,543 |  |  | $ | — |  |  |
Bonds, equity securities and other investments | 16,050 |  |  | — |  |  | 16,050 |  |  |
Total assets measured at fair value | $ | 43,593 |  |  | $ | 27,543 |  |  | $ | 16,050 |  |  |
As of June 30, 2021 (In thousands) | Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  |
Cash and cash equivalents | $ | 25,458 |  |  | $ | 25,458 |  |  | $ | — |  |  |
Bonds, equity securities and other investments | 19,268 |  |  | — |  |  | 19,268 |  |  |
Total assets measured at fair value | $ | 44,726 |  |  | $ | 25,458 |  |  | $ | 19,268 |  |  |
Concentration of Risk We manage a variety of risks, including market, credit and liquidity risks, across our plan assets through our investment managers. We define a concentration of risk as an undiversified exposure to one of the above-mentioned risks that increases the exposure of the loss of plan assets unnecessarily. We monitor exposure to such risks in the foreign plans by monitoring the magnitude of the risk in each plan and diversifying our exposure to such risks across a variety of instruments, markets and counterparties. As of June 30, 2022, we did not have concentrations of plan asset investment risk in any single entity, manager, counterparty, sector, industry or country.

X
- References No definition available. + Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for retirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 55 -Paragraph 17 -URI https://asc.fasb.org/extlink&oid=123450688&loc=d3e4179-114921 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section S99 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=21916913&loc=d3e273930-122802 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(i) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (o) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (p) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 70 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=49170846&loc=d3e28014-114942 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI https://asc.fasb.org/topic&trid=2235017 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 3 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=6414203&loc=d3e39689-114964 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(iv)(03) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (q) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (r)(1) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(iii) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (l) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (r)(2) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration