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PENSION PLANS AND OTHER POST RETIREMENT BENEFITS | 9 Months Ended
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Mar. 31, 2023
Retirement Benefits [Abstract] |
PENSION PLANS AND OTHER POST RETIREMENT BENEFITS | PENSION PLANS AND OTHER POST RETIREMENT BENEFITS The Company has 44 pension and other post retirement plans in multiple countries, including 31 defined benefit and other post retirement benefit plans which were assumed as part of the Micro Focus Acquisition (see Note 19 “Acquisitions” for more details). All of our pension and other post retirement plans are located outside of Canada and the United States. The plans are primarily located in Germany, which make up approximately 71% of the total net benefit pension obligations. Defined Benefit and Other Post Retirement Benefit Plans Our defined benefit pension plans include a mix of final salary type plans which provide for retirement, old age, disability and survivor’s benefits. Final salary pension plans provide benefits to members either in the form of a lump sum payment or a guaranteed level of pension payable for life in the case of retirement, disability and death. Benefits under our final salary type plans are generally based on the participant’s age, compensation and years of service as well as the social security ceiling and other factors. Many of these plans are closed to new members. The net periodic costs of these plans are determined using the projected unit credit method and several actuarial assumptions, the most significant of which are the discount rate and estimated service costs. Other post retirement plans include statutory plans that offer termination, indemnity or other end of service benefits. Many of these plans were assumed through our acquisitions or are required by local regulatory and statutory requirements. All of our defined benefit and other post retirement plans are included in the aggregate projected benefit obligation within “Pension liability” on our Condensed Consolidated Balance Sheets. As part of the Micro Focus Acquisition (see Note 19 “Acquisitions” for more details), we assumed a total of 31 defined benefit plans, all located outside of Canada and the United States. As of March 31, 2023, these assumed plans carried a net liability of $50 million and are funded at 74% of the defined benefit obligations. Plan assets that partially fund these assumed defined benefit obligations are primarily classified within Level 1 and Level 2 of the fair value hierarchy and consist primarily of investments in equity and debt funds. As of March 31, 2023, the fair value of these acquired plan assets was $141 million. The following are details of net pension expense relating to the defined benefit pension plans:
| Three Months Ended March 31, |  | Nine Months Ended March 31,
| 2023 |  | 2022 |  | 2023 |  | 2022
Pension expense: |  |  |  |  |  |  |
Service cost | $ | 2,084 |  |  | $ | 1,139 |  |  | $ | 4,191 |  |  | $ | 2,910 |
Interest cost | 2,208 |  |  | 564 |  |  | 4,210 |  |  | 1,466 |
Expected return of plan assets | (1,946) |  |  | (52) |  |  | (2,780) |  |  | (160) |
Amortization of actuarial (gains) losses | 60 |  |  | 222 |  |  | 185 |  |  | 678 |
Net pension expense | $ | 2,406 |  |  | $ | 1,873 |  |  | $ | 5,806 |  |  | $ | 4,894 |
Service-related net periodic pension costs are recorded within operating expense and all other non-service related net periodic pension costs are classified under “Interest and other related expense, net” on our Condensed Consolidated Statements of Income. The Company does not intend to make cash contributions to the above plans unless required by local regulatory or statutory requirements. Additionally, the Company does not expect to make significant cash contributions to its pension and other post retirement plans in Fiscal 2023.

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