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Pension Benefits | 12 Months Ended
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Jun. 30, 2022
Defined Benefit Pension Plans [Member] |
Defined Benefit Plan Disclosure [Line Items] |
Pension Benefits | Pension Benefits Defined Benefit Pension Plans We sponsor multiple defined benefit pension plans that covered certain workers under collective bargaining contracts. However, as a result of prior-years’ restructuring activities, for all periods presented, we no longer have any active employees continuing to accrue service cost or otherwise eligible to receive plan benefits. Benefits being paid under the plans are primarily based on negotiated rates and years of service. We contribute to these plans at least the minimum amount required by regulation. At the end of the year, we discount our plan liabilities using an assumed discount rate. In estimating this rate, we, along with our third-party actuaries, review the timing of future benefit payments, bond indices, yield curve analysis results and the past history of discount rates. The actuarial present value of benefit obligations summarized below was based on the following assumption:
| 2022 |  | 2021
Weighted-average assumption as of June 30 |  |  |
Discount rate | 4.52 | % |  | 2.58 | %
The net periodic benefit costs were determined utilizing the following beginning-of-the-year assumptions:
| 2022 |  | 2021 |  | 2020
Discount rate | 2.58 | % |  | 2.49 | % |  | 3.35 | %
Expected long-term return on plan assets | 5.00 | % |  | 5.00 | % |  | 6.50 | %
In determining the long-term expected return on plan assets, we consider our related investment guidelines, our expectations of long-term rates of return by asset category, our target asset allocation weighting and historical rates of return and volatility for equity and fixed income investments. The investment strategy for plan assets is to control and manage investment risk through diversification among asset classes, investment managers/funds and investment styles. The plans’ investment guidelines have been designed to meet the intended objective that plan assets earn at least nominal returns equal to or more than the plans’ liability growth rate. In consideration of the current average age of the plans’ participants, the investment guidelines are based upon an investment horizon of at least 10 years. In 2021, we completed an evaluation of the plans’ asset allocation and liabilities with assistance from an independent outside consultant. As a result, with the plans well-funded and no active employees continuing to accrue service cost or otherwise eligible to receive plan benefits, we reallocated the plan assets to better match the plan liabilities. Accordingly, we allocated a higher percentage of the plan assets to long-duration fixed income investments, thereby reducing equity exposure risk and mitigating the unfavorable impacts of interest rate volatility. This reallocation resulted in a reduction to the expected long-term return on plan assets. The target and actual asset allocations for our plans at June 30 by asset category were as follows:
| Target Percentage of Plan Assets at June 30 |  | Actual Percentage of Plan Assets
| 2022 |  | 2022 |  | 2021
Equity securities | 20%-80% |  | 25 |  |  | 27 |
Fixed income, including cash | 20%-80% |  | 75 |  |  | 73 |
Total |  |  | 100 | % |  | 100 | %
Our target asset allocations are maintained through ongoing review and periodic rebalancing of equity and fixed income investments with assistance from an independent outside investment consultant. Also, the plan assets are diversified among asset classes, asset managers or funds and investment styles to avoid concentrations of risk. The higher allocation of plan assets to fixed income investments reflects the decision to better match the invested assets with the plans’ liabilities and the fact that the plans are well-funded with no active employees continuing to accrue service cost or otherwise eligible to receive plan benefits. We continue to allocate a modest amount of plan assets to cash to cover near-term expenses. We categorize our plan assets within a three-level fair value hierarchy, as previously defined in Note 2. The following table summarizes the fair values and levels, within the fair value hierarchy, for our plan assets at June 30:
| June 30, 2022
Asset Category | Level 1 |  | Level 2 |  | Level 3 |  | Total
Cash and equivalents | $ | 734 |  |  | $ | — |  |  | $ | — |  |  | $ | 734 |
Money market funds | 795 |  |  | — |  |  | — |  |  | 795 |
Mutual funds fixed income | 20,628 |  |  | — |  |  | — |  |  | 20,628 |
Mutual funds equity | 7,454 |  |  | — |  |  | — |  |  | 7,454 |
Total | $ | 29,611 |  |  | $ | — |  |  | $ | — |  |  | $ | 29,611 |
| June 30, 2021
Asset Category | Level 1 |  | Level 2 |  | Level 3 |  | Total
Cash and equivalents | $ | 577 |  |  | $ | — |  |  | $ | — |  |  | $ | 577 |
Money market funds | 1,140 |  |  | — |  |  | — |  |  | 1,140 |
Mutual funds fixed income | 27,044 |  |  | — |  |  | — |  |  | 27,044 |
Mutual funds equity | 10,658 |  |  | — |  |  | — |  |  | 10,658 |
Total | $ | 39,419 |  |  | $ | — |  |  | $ | — |  |  | $ | 39,419 |
The plan assets classified at Level 1 include money market funds and mutual funds. Quoted market prices in active markets for identical assets are available for investments in this category. Relevant information with respect to our pension benefits as of June 30 can be summarized as follows:
| 2022 |  | 2021
Change in benefit obligation |  |  |
Benefit obligation at beginning of year | $ | 37,439 |  |  | $ | 39,969 |
Interest cost | 935 |  |  | 965 |
Actuarial gain | (5,130) |  |  | (1,188) |
Benefits paid | (2,201) |  |  | (2,307) |
Benefit obligation at end of year | $ | 31,043 |  |  | $ | 37,439 |
| 2022 |  | 2021
Change in plan assets |  |  |
Fair value of plan assets at beginning of year | $ | 39,419 |  |  | $ | 36,768 |
Actual return on plan assets | (7,607) |  |  | 4,931 |
Employer contributions | — |  |  | 27 |
Benefits paid | (2,201) |  |  | (2,307) |
Fair value of plan assets at end of year | $ | 29,611 |  |  | $ | 39,419 |
| 2022 |  | 2021
Funded status - net (accrued) prepaid benefit cost | $ | (1,432) |  |  | $ | 1,980 |
| 2022 |  | 2021
Amounts recognized in the Consolidated Balance Sheets consist of |  |  |
Prepaid benefit cost (Other Noncurrent Assets) | $ | 381 |  |  | $ | 3,655 |
Accrued benefit liability (Other Noncurrent Liabilities) | (1,813) |  |  | (1,675) |
Net amount recognized | $ | (1,432) |  |  | $ | 1,980 |
| 2022 |  | 2021
Accumulated benefit obligation | $ | 31,043 |  |  | $ | 37,439 |
The following table discloses, in the aggregate, those plans with benefit obligations in excess of the fair value of plan assets at the June 30 measurement date:
| 2022 |  | 2021
Benefit obligations | $ | 23,836 |  |  | $ | 7,206 |
Fair value of plan assets at end of year | $ | 22,023 |  |  | $ | 5,531 |
Amounts recognized in accumulated other comprehensive loss at June 30 were as follows:
| 2022 |  | 2021
Net actuarial loss | $ | 16,098 |  |  | $ | 12,138 |
Income taxes | (3,762) |  |  | (2,837) |
Total | $ | 12,336 |  |  | $ | 9,301 |
The following table summarizes the components of net periodic benefit income for our pension plans at June 30:
| 2022 |  | 2021 |  | 2020
Components of net periodic benefit income |  |  |  |  |
Interest cost | $ | 935 |  |  | $ | 965 |  |  | $ | 1,246 |
Expected return on plan assets | (1,911) |  |  | (1,779) |  |  | (2,302) |
Amortization of unrecognized net loss | 428 |  |  | 692 |  |  | 572 |
Net periodic benefit income | $ | (548) |  |  | $ | (122) |  |  | $ | (484) |
We have not yet finalized our anticipated funding level for 2023, but based on initial estimates, we do not expect our 2023 contributions to our pension plans to be material. Benefit payments estimated for future years are as follows:
2023 | $ | 2,679 |
2024 | $ | 2,640 |
2025 | $ | 2,601 |
2026 | $ | 2,540 |
2027 | $ | 2,473 |
2028 - 2032 | $ | 11,208 |

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