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Employee Benefit Plans
 12 Months Ended
Jun. 30, 2021
Employee Benefit Plans  
Employee Benefit Plans

11.     Employee Benefit Plans

Domestic Pension Plan

We maintain 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. We

amended the plan to eliminate credit for future service and compensation increases, effective September 2016. Plan benefits are based upon years of service and average compensation, as defined. The measurement dates for the plan were as of June 30, 2021, 2020 and 2019.

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

​

​

​

​

​

​

​

​

For the Year Ended June 30

    

2021

    

2020

Change in projected benefit obligation

​

​

​

​

​

​

Projected benefit obligation at beginning of year

​

$

79,353

 

$

68,527

Interest cost

​

 

1,682

 

​

2,112

Benefits paid

​

 

(2,260)

 

​

(2,000)

Actuarial (gain) / loss

​

 

(860)

 

​

10,714

Projected benefit obligation at end of year

​

$

77,915

 

$

79,353

​

​

​

​

​

​

​

​

For the Year Ended June 30

    

2021

    

2020

Change in plan assets

​

​

  

​

​

  

Fair value of plan assets at beginning of year

​

$

75,791

​

$

64,593

Actual return on plan assets

​

 

4,838

​

 

10,821

Employer contributions

​

 

730

​

 

2,377

Benefits paid

​

 

(2,260)

​

 

(2,000)

Fair value of plan assets at end of year

​

$

79,099

​

$

75,791

Asset (Liability) Funded status at end of year

​

$

1,184

​

$

(3,562)

​

The projected benefit obligation for the year ended June 30, 2021, decreased due to a net overall gain from the use of a higher discount rate and mortality assumption update, partially offset by a loss from demographic experience. The projected benefit obligation for the year ended June 30, 2020, increased due to an overall loss from the use of a lower discount rate, plus a loss from other actuarial assumptions and demographic experience. The discount rate used each period varies depending on the long-term bond market rates. The projected benefit obligation also increased each year by the interest cost due to the passage of time and decreased each year by the benefits paid to plan participants.

The funded status is included in other assets and other liabilities in the consolidated balance sheets, at June 30, 2021 and 2020, respectively. The Company does not expect to contribute to the plan during 2022. 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 plan was:

​

​

​

​

​

​

​

​

For the Year Ended June 30

    

2021

    

2020

Accumulated other comprehensive income (loss) related to pension plan

 

​

  

​

 

  

Balance at beginning of period

​

$

(22,571)

​

$

(20,050)

Amortization of net actuarial loss and prior service costs

​

 

560

​

 

515

Current period net actuarial gain (loss)

​

 

2,038

​

 

(3,036)

Net change

​

 

2,598

​

 

(2,521)

Balance at end of period

​

$

(19,973)

​

$

(22,571)

​

Amortization of unrecognized net actuarial loss will be approximately $460 during 2022.

Net periodic pension expense was:

​

​

​

​

​

​

​

​

​

​

​

For the Year Ended June 30

    

2021

    

2020

    

2019

Interest cost on benefit obligation

​

$

1,682

​

$

2,112

​

$

2,407

Expected return on plan assets

​

 

(3,660)

​

 

(3,144)

​

 

(2,842)

Amortization of net actuarial loss and prior service costs

​

 

560

​

 

515

​

 

465

Net periodic pension (income) expense

​

$

(1,418)

​

$

(517)

​

$

30

​

Significant actuarial assumptions for the plan were:

​

​

​

​

​

​

​

​

​

​

For the Year Ended June 30

    

2021

    

2020

    

2019

 

Discount rate for interest cost

 

2.2

%  

2.2

%  

3.1

%

Expected rate of return on plan assets

 

4.4

%  

4.9

%  

4.9

%

Discount rate for year-end benefit obligation

 

2.9

%  

2.8

%  

3.6

%

​

The plan used the Aon Hewitt AA Bond Universe as a benchmark for its discount rate as of June 30, 2021, 2020 and 2019. The discount rate is determined by matching the plan’s timing and amount of expected cash outflows to a bond yield curve constructed from a population of AA-rated corporate bond issues that 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 are:

​

​

​

​

​

For the Year Ended June 30

    

​

​

2022

​

$

3,146

2023

​

 

3,392

2024

​

 

3,575

2025

​

​

3,712

2026

​

​

3,830

2027 – 2031

​

 

20,414

​

The plan’s target asset allocations for 2022 and the weighted-average asset allocation of plan assets as of June 30, 2021 and 2020 are:

​

​

​

​

​

​

​

​

​

​

Target

​

​

​

​

​

​

Allocation

​

Percentage of Plan Assets

For the Year Ended June 30

    

2022

    

2021

    

2020

Debt securities

 

65% - 85%  

​

71%  

​

66%  

Equity securities

 

10% - 30%  

​

21%  

​

27%  

Global asset allocation/risk parity(1)

 

0% - 15%  

​

7%  

​

5%  

Other

 

0% - 10%  

​

1%  

​

2%  

(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 generally is 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 plan, 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 plan assets by asset category were:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements Using

As of June 30, 2021

    

Level 1

    

Level 2

    

Level 3

    

Total

Cash and cash equivalents

​

$

386

​

$

—

​

$

—

​

$

386

Common-collective funds

 

​

​

 

​

​

 

​

​

 

​

​

Global large cap equities

 

​

—

 

​

13,201

 

​

3,816

 

​

17,017

Fixed income securities

 

​

—

 

​

56,414

 

​

—

 

​

56,414

Global asset allocations/risk parity

 

​

—

 

​

2,016

 

​

—

 

​

2,016

Mutual funds

 

​

​

 

​

​

 

​

​

 

​

​

Global asset allocations/risk parity

 

​

3,206

 

​

—

 

​

—

 

​

3,206

Other

​

​

​

​

​

​

​

​

​

​

​

​

Other

 

​

—

 

​

—

 

​

60

 

​

60

​

​

$

3,592

​

$

71,631

​

$

3,876

​

$

79,099

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements Using

As of June 30, 2020

    

Level 1

    

Level 2

    

Level 3

    

Total

Cash and cash equivalents

​

$

1,812

​

$

—

​

$

—

​

$

1,812

Common-collective funds

​

 

  

​

 

  

​

 

  

​

 

  

Global large cap equities

​

 

—

​

 

16,678

​

​

4,038

​

 

20,716

Fixed income securities

​

 

—

​

 

49,902

​

 

—

​

 

49,902

Global asset allocations/risk parity

​

 

—

​

 

1,667

​

 

—

​

 

1,667

Other

​

​

​

​

​

​

​

​

​

​

​

​

Global asset allocations/risk parity

​

​

—

​

​

—

​

​

1,669

​

​

1,669

Other

​

​

—

​

​

—

​

​

25

​

​

25

​

​

$

1,812

​

$

68,247

​

$

5,732

​

$

75,791

​

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

​

​

​

​

​

​

​

​

Change in Fair Value Level 3 assets

     

2021

    

2020

Balance at beginning of period

​

$

5,732

​

$

5,649

Redemptions

​

 

(3,236)

​

 

(49)

Purchases

​

 

300

​

 

200

Change in fair value

​

 

1,080

​

 

(68)

Balance at end of period

​

$

3,876

​

$

5,732

​

The following outlines the valuation methodologies used to estimate the fair value of 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 that brokers evaluate. For Level 3 non-managed assets, pricing is provided by various sources, such as issuer or investment manager.

Other employee benefit plans

We provide a 401(k) retirement savings plan, under which United States employees may make pre-tax and post-tax contributions. The Company contributes: (i) a matching contribution equal to 100% of the first 6.0% of an employee’s contribution; and, (ii) an additional discretionary contribution of up to 4.5% of compensation, depending on the

employee’s age and years of service, provided that such contributions comply with ERISA non-discrimination requirements. Employee and Company contributions are subject to certain ERISA limitations. Employees are immediately vested in Company contributions. Our contribution expense was $5,803, $5,566, and $5,201, in 2021, 2020 and 2019, respectively.

Our consolidated balance sheets include other employee-related liabilities of $13,827 and $13,666 as of June 30, 2021 and 2020, respectively, including international retirement plans, supplemental retirement benefits and long-term incentive arrangements. Expense under these plans was $5,095, $5,725, and $5,685 in 2021, 2020 and 2019, respectively.