10.

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, 2015, 2014 and 2013.

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

For the Years Ended June 30	2015			2014
Change in projected benefit obligation
Projected benefit obligation at beginning of year		$	57,599		$	46,569
Service cost			2,954			2,457
Interest cost			2,618			2,333
Benefits paid			(1,116)			(1,092)
Actuarial (gain) loss			550			7,332
Projected benefit obligation at end of year		$	62,605		$	57,599
Change in plan assets
Fair value of plan assets at beginning of year		$	39,581		$	31,501
Actual return on plan assets			(1,248)			4,339
Employer contributions			6,815			4,833
Benefits paid			(1,116)			(1,092)
Fair value of plan assets at end of year		$	44,032		$	39,581
Funded status at end of year		$	(18,573)		$	(18,018)

The funded status is included in other liabilities in the consolidated balance sheets. At June 30, 2015 and 2014, the accumulated benefit obligation was $56,904 and $51,980, respectively.

The Company expects to contribute approximately $12,990 to the pension plan during 2016. 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	2015			2014
Balance at beginning of period		$	16,663		$	12,240
Amortization of net actuarial loss (gain) and prior service costs			(1,405)			(903)
Current period net actuarial loss (gain)			4,626			5,326
Net change			3,221			4,423
Balance at end of period		$	19,884		$	16,663

Amortization of unrecognized net actuarial (gain) loss and prior service costs will be approximately $1,589 during 2016.

Net periodic pension expense was:

For the Years Ended June 30	2015			2014			2013
Service cost−benefits earned during the year		$	2,954		$	2,457		$	2,729
Interest cost on benefit obligation			2,618			2,333			2,058
Expected return on plan assets			(2,828)			(2,334)			(2,136)
Amortization of net actuarial loss and prior service costs			1,405			904			1,405
Net periodic pension expense		$	4,149		$	3,360		$	4,056

Significant actuarial assumptions for the plan were:

For the Years Ended June 30	2015	2014	2013
Discount rate for service and interest	4.5%	5.0%	4.4%
Expected rate of return on plan assets	6.7%	7.0%	7.5%
Rate of compensation increase	3.0%–3.75%	3.0%–4.5%	3.0%–4.5%
Discount rate for year-end benefit obligation	4.6%	4.5%	5.0%

The plan used the Aon Hewitt AA Bond Universe as a benchmark for its discount rate as of June 30, 2015, 2014 and 2013. The discount rate is determined by matching the pension plan’s timing and 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
2016	$	1,685
2017		1,938
2018		2,173
2019		2,433
2020		2,724
2021–2024		17,886

The plan’s target asset allocations for 2016 and the weighted-average asset allocation of plan assets as of June 30, 2015 and 2014 are:

	Target Allocation	Percentage of Plan Assets
For the years ended June 30	2016	2015		2014
Debt securities	10%–35%		19%		20%
Equity securities	20%–50%		35%		35%
Global asset allocation/risk parity(1)	20%–40%		35%		35%
Other	0%–25%		11%		10%

(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 and commodities.

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, 2015	Level 1			Level 2			Level 3			Total
Cash and cash equivalents		$	129		$	—		$	—		$	129
Common-collective funds
Global large cap equities			—			10,995			—			10,995
Fixed income securities			—			8,565			—			8,565
Global asset allocations/risk parity			—			6,685			—			6,685
Mutual funds
Global equities			4,366			—			—			4,366
Global asset allocations/risk parity			4,303			—			—			4,303
Other
Global asset allocations/risk parity			—			—			4,251			4,251
Other			—			—			4,738			4,738
		$	8,798		$	26,245		$	8,989		$	44,032

	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

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

Change in Fair Value Level 3 assets	2015			2014
Balance at beginning of period		$	10,031		$	280
Redemptions			(2,026)			22
Purchases			1,280			9,773
Change in fair value			(296)			(44)
Balance at end of period		$	8,989		$	10,031

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 $12,438 and $13,007 as of June 30, 2015 and 2014, respectively, for other retirement benefits, including supplemental executive retirement benefits, international retirement plans and other employee benefit plans. Expense under these plans was $3,286, $3,832 and $2,817 for 2015, 2014 and 2013, 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 $1,583, $1,281 and $1,175 in 2015, 2014 and 2013, respectively.