11.

Employee Benefit Plans

The Company maintains a noncontributory defined benefit pension plan for all domestic nonunion employees employed on or prior to December 31, 2013, who meet certain requirements of age, length of service and hours worked per year. Plan benefits are based upon years of service and average compensation, as defined. The measurement dates for the pension plan were as of June 30, 2014, 2013 and 2012.

Changes in the projected benefit obligation, plan assets and funded status were:

For the Years Ended June 30
Change in projected benefit obligation
Projected benefit obligation at beginning of year	$	46,569		$	46,811
Service cost		2,457			2,729
Interest cost		2,333			2,058
Benefits paid		(1,092	)		(796	)
Actuarial (gain) loss		7,332			(4,233	)
Projected benefit obligation at end of year	$	57,599		$	46,569

For the Years Ended June 30
Change in plan assets
Fair value of plan assets at beginning of year	$	31,501		$	27,856
Actual return on plan assets		4,339			1,888
Employer contributions		4,833			2,553
Benefits paid		(1,092	)		(796	)
Fair value of plan assets at end of year	$	39,581		$	31,501
Funded status at end of year	$	(18,018	)	$	(15,068	)

The funded status is included in other liabilities in the consolidated balance sheets. At June 30, 2014 and 2013, the accumulated benefit obligation was $51,980 and $41,859, respectively.

The Company expects to contribute approximately $6,815 to the pension plan during 2015. We seek to maintain an asset balance that meets the long-term funding requirements identified by actuarial projections while also satisfying ERISA fiduciary responsibilities.

Accumulated other comprehensive (income) loss related to the pension plan was:

For the Years Ended June 30
Balance at beginning of period	$	12,240		$	17,630
Amortization of net actuarial loss (gain) and prior service costs		(903	)		(1,405	)
Current period net actuarial loss (gain)		5,326			(3,985	)
Net change		4,423			(5,390	)
Balance at end of period	$	16,663		$	12,240

Amortization of unrecognized net actuarial (gain) loss and prior service costs will be approximately $1,228 during 2015.

Net periodic pension expense was:

For the Years Ended June 30
Service cost−benefits earned during the year	$	2,457		$	2,729		$	2,093
Interest cost on benefit obligation		2,333			2,058			1,957
Expected return on plan assets		(2,334	)		(2,136	)		(2,040	)
Amortization of net actuarial loss and prior service costs		904			1,405			251
Net periodic pension expense	$	3,360		$	4,056		$	2,261

Significant actuarial assumptions for the plan were:

For the Years Ended June 30	2014	2013	2012
Discount rate for service and interest	5.0%	4.4%	5.5%
Expected rate of return on plan assets	7.0%	7.5%	7.5%
Rate of compensation increase	3.0%−4.5%	3.0%−4.5%	3.0%−4.5%
Discount rate for year-end benefit obligation	4.5%	5.0%	4.4%

The plan used the Aon Hewitt AA Bond Universe as a benchmark for its discount rate as of June 30, 2014, 2013 and 2012. The discount rate is determined by matching the pension plan’s timing and the amount of expected cash outflows to a bond yield curve constructed from a population of AA-rated corporate bond issues which are generally non-callable and have at least $250 million par value outstanding. From this, the discount rate that results in the same present value is calculated.

Estimated future benefit payments, including benefits attributable to future service, are:

For the Years Ended June 30
2015	$	1,423
2016		1,655
2017		1,891
2018		2,119
2019		2,362
2020−2024		15,973

The plan’s target asset allocations for 2015 and the weighted-average asset allocation of plan assets as of June 30, 2014 and 2013 are:

	Target Allocation	Percentage of Plan Assets
For the years ended June 30	2015	2014			2013
Debt securities	10%−35%		20	%		25	%
Equity securities	20%−50%		35	%		70	%
Global asset allocation/risk parity(1)	20%−40%		35	%		—
Other	0%−25%		10	%		5	%

(1)

The global asset allocation/risk parity category consists of a variety of asset classes including, but not limited to, global bonds, global equities, real estate, commodities and alpha only strategies.

The expected long-term rate of return for the plan’s total assets is generally based on the plan’s asset mix. In determining the rate to use, we consider the expected long-term real returns on asset categories, expectations for inflation, estimates of the effect of active management and actual historical returns.

The investment policy and strategy is to earn a long term investment return sufficient to meet the obligations of the plans, while assuming a moderate amount of risk in order to maximize investment return. In order to achieve this goal, assets are invested in a diversified portfolio consisting of equity securities, debt securities, and other investments in a manner consistent with ERISA’s fiduciary requirements.

The fair values of the Company’s plan assets by asset category were:

	Fair Value Measurements Using
As of June 30, 2014	Level 1			Level 2			Level 3			Total
Cash and cash equivalents		$	138		$	—		$	—		$	138
Common-collective funds
Global large cap equities			—			9,909			—			9,909
Fixed income securities			—			3,935			—			3,935
Global asset allocations/risk parity			—			5,803			—			5,803
Mutual funds
Global Equities			3,925			—			—			3,925
Fixed income securities			1,913			—			—			1,913
Global asset allocations/risk parity			3,927			—			—			3,927
Other
Fixed income securities			—			—			2,007			2,007
Global asset allocations/risk parity			—			—			3,954			3,954
Other			—			—			4,070			4,070
		$	9,903		$	19,647		$	10,031		$	39,581

	Fair Value Measurements Using
As of June 30, 2013	Level 1			Level 2			Level 3			Total
Cash and cash equivalents		$	581		$	404		$	—		$	985
Common-collective funds
Global large cap equities			6,555			4,743			—			11,298
Fixed income securities			—			6,730			—			6,730
Mutual funds
Global small and mid-cap equities			10,887			—			—			10,887
Real estate			1,320			—			—			1,320
Other			—			—			280			280
		$	19,343		$	11,877		$	280		$	31,500

The table below provides a summary of the changes in the fair value of Level 3 assets:

Change in Fair Value Level 3 assets
Balance at beginning of period	$	280		$	450
Redemptions		22			—
Purchases		9,773			51
Change in fair value		(44	)		(221	)
Balance at end of period	$	10,031		$	280

The following outlines the valuation methodologies used to estimate the fair value of our pension plan assets:

•

Cash and cash equivalents are valued at $1 per unit;

•

Common-collective funds are determined based on current market values of the underlying assets of the fund;

•

Mutual funds and foreign currency deposits are valued using quoted market prices in active markets; and

•

For Level 3 managed assets, business appraisers use a combination of valuations and appraisal methodologies, as well as a number of assumptions to create a price which brokers evaluate. For Level 3 non-managed assets, pricing is provided by various sources, such as issuer or investment manager.

Our consolidated balance sheets include other liabilities of $13,007 and $10,953 as of June 30, 2014 and 2013, respectively, for other retirement benefits, including supplemental executive retirement benefits, international retirement plans and other employee benefit plans. Contributions to these plans are generally deposited under fiduciary-type arrangements. Expense under these plans was $3,832, $2,817 and $3,163 for 2014, 2013 and 2012, respectively.

We provide a 401(k) retirement savings plan, under which United States employees may make a pre-tax contribution of up to the lesser of 60% of compensation or the maximum amount permitted under the U.S. Internal Revenue Code. We make a matching contribution equal to 100% of the first 1% of an employee’s contribution and make a matching contribution equal to 50% of the next 5% of an employee’s contribution. Employees hired on or after January 1, 2014, receive a non-elective Company contribution of 3% and are eligible to receive an additional discretionary payment between 1% and 4%, depending on age and years of service, provided that such payments comply with mandatory non-discrimination testing. Participants are fully vested in employer contributions after two years of service. Our contribution expense was $1,281, $1,175 and $1,010 in 2014, 2013 and 2012, respectively.