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Employee Benefit Plans
 12 Months Ended
Jun. 30, 2025
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, 2025 and 2024.

In July 2023, we entered into an annuity purchase agreement to irrevocably transfer a portion of the pension benefit obligation to a third-party insurance company. The annuity purchase price was $26,381 and was approximately equal to the benefit obligation transferred. The annuity purchase was funded from pension assets. We recognized a partial settlement of the pension plan, resulting from the recognition of net pension losses previously included in Accumulated other comprehensive loss. We recorded $10,674 of expense related to this partial settlement in selling, general and administrative expenses in our consolidated statement of operations during the year ended June 30, 2024.

Changes in the projected benefit obligation were:

​

​

​

​

​

​

​

​

For the Year Ended June 30

    

2025

    

2024

Change in projected benefit obligation

​

​

​

​

​

​

Projected benefit obligation at beginning of year

​

$

33,261

 

$

60,673

Interest cost

​

 

1,672

 

​

1,775

Benefits paid

​

 

(1,435)

 

​

(954)

Actuarial gain

​

 

(738)

 

​

(1,852)

Settlement payment

​

​

—

​

​

(26,381)

Projected benefit obligation at end of year

​

$

32,760

 

$

33,261

 

​

The discount rate used for the projected benefit obligation at June 30, 2025 and 2024, was 5.5% and 5.4%, respectively.

The projected benefit obligation for the year ended June 30, 2025 decreased slightly due to an increase in benefit payments relative to the prior year. The discount rate used each period is determined with reference to current long-term bond market rates. The projected benefit obligation also increases each year by the interest cost due to the passage of time and decreases each year by the benefits paid to plan participants.

Changes in the plan assets and funded status of the plan were:

​

​

​

​

​

​

​

​

For the Year Ended June 30

    

2025

    

2024

Change in plan assets

​

​

  

​

​

  

Fair value of plan assets at beginning of year

​

$

31,024

​

$

58,387

Actual return on plan assets

​

 

1,376

​

 

(28)

Benefits paid

​

 

(1,435)

​

 

(954)

Settlement payment

​

​

—

​

​

(26,381)

Fair value of plan assets at end of year

​

$

30,965

​

$

31,024

Liability funded status at end of year

​

$

(1,795)

​

$

(2,237)

 

​

The actual return on plan assets for the year ended June 30, 2025 was higher than expected due to an increase in the market value of fixed income securities. Our investment strategy is to hold a significant portion of our plan assets in fixed income securities with maturities and amounts approximately matching projected future benefit payments.

The funded status is included in other liabilities in the consolidated balance sheets at June 30, 2025 and 2024, respectively. We seek to maintain an asset balance that meets the long-term funding requirements identified by actuarial projections while also satisfying ERISA fiduciary responsibilities. We do not expect to contribute to the domestic pension plan during 2026.

Accumulated other comprehensive loss related to the plan was:

​

​

​

​

​

​

​

​

For the Year Ended June 30

    

2025

    

2024

Accumulated other comprehensive loss related to pension plan

 

​

  

​

 

  

Balance at beginning of period

​

$

(13,012)

​

$

(23,996)

Amortization of net actuarial loss

​

 

308

​

 

370

Current period net actuarial gain (loss)

​

 

312

​

 

(60)

Settlement expense recognized

​

​

—

​

​

10,674

Net change

​

 

620

​

 

10,984

Balance at end of period

​

$

(12,392)

​

$

(13,012)

 

​

Net periodic pension expense was:

​

​

​

​

​

​

​

​

​

​

​

For the Year Ended June 30

    

2025

    

2024

    

2023

Interest cost on benefit obligation

​

$

1,672

​

$

1,775

​

$

2,608

Expected return on plan assets

​

 

(1,802)

​

 

(1,884)

​

 

(2,624)

Amortization of net actuarial loss and prior service costs

​

 

308

​

 

370

​

 

721

Settlement expense

​

​

—

​

​

10,674

​

​

—

Net periodic pension expense

​

$

178

​

$

10,935

​

$

705

 

​

Significant actuarial assumptions used for the net periodic pension expense for the plan were:

​

​

​

​

​

​

​

​

​

For the Year Ended June 30

    

2025

    

2024

    

2023

 

Discount rate for interest cost

 

5.2

%  

5.0

%  

4.3

%

Expected rate of return on plan assets

 

6.0

%  

5.8

%  

4.4

%

Discount rate for benefit obligation

 

5.4

%  

5.1

%  

4.6

%

 

​

The plan used the Aon AA Bond Universe as a benchmark for its discount rate as of June 30, 2025, 2024 and 2023. 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, based on the benefit obligation as of June 30, 2025 are:

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Years Ending June 30

    

​

​

2026

​

$

1,460

2027

​

 

1,696

2028

​

​

1,864

2029

​

​

2,042

2030

​

​

2,132

2031 – 2035

​

 

11,563

 

​

The plan’s target asset allocation for 2026 and the weighted-average asset allocation of plan assets as of June 30, 2025 and 2024 are:

​

​

​

​

​

​

​

​

​

​

Target

​

​

​

​

​

​

Allocation

​

Percentage of Plan Assets

For the Year Ended June 30

    

2026

    

2025

    

2024

Debt securities

 

65% - 85%  

​

77%  

    

79%  

Equity securities

 

10% - 30%  

​

19%  

​

18%  

Global asset allocation/risk parity (1)

 

0% - 15%  

​

3%  

​

2%  

Other

 

0% - 10%  

​

1%  

​

1%  

(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 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 debt securities, equity 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, 2025

    

Level 1

    

Level 2

    

Level 3

    

Total

Cash and cash equivalents

​

$

264

​

$

—

​

$

—

​

$

264

Common-collective funds

 

​

​

​

​

​

​

​

​

 

​

​

Global large cap equities

 

​

—

​

​

5,249

​

​

550

 

​

5,799

Fixed income securities

 

​

—

​

​

23,888

​

​

—

 

​

23,888

Mutual funds

 

​

​

​

​

​

​

​

​

 

​

​

Global asset allocations/risk parity

 

​

1,014

​

​

—

​

​

—

 

​

1,014

​

​

$

1,278

​

$

29,137

​

$

550

​

$

30,965

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements Using

As of June 30, 2024

    

Level 1

    

Level 2

    

Level 3

    

Total

Cash and cash equivalents

​

$

277

​

$

—

​

$

—

​

$

277

Common-collective funds

 

​

​

​

​

​

​

​

​

​

​

​

Global large cap equities

 

​

—

 

​

5,077

 

​

524

 

​

5,601

Fixed income securities

 

​

—

 

​

24,650

 

​

—

 

​

24,650

Mutual funds

 

​

​

​

​

​

​

​

​

​

​

​

Global asset allocations/risk parity

 

​

496

 

​

—

 

​

—

 

​

496

​

​

$

773

​

$

29,727

​

$

524

​

$

31,024

 

​

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

​

​

​

​

​

​

​

​

Change in Fair Value Level 3 assets

     

2025

    

2024

Balance at beginning of period

​

$

524

​

$

1,552

Redemptions

​

 

(202)

​

 

(1,316)

Purchases

​

​

130

​

​

200

Change in fair value

​

 

98

​

 

88

Balance at end of period

​

$

550

​

$

524

 

​

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 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 $7,846, $5,395 and $6,214 in 2025, 2024 and 2023, respectively.

Our consolidated balance sheets include other employee-related liabilities of $9,058 and $9,990 as of June 30, 2025 and 2024, respectively, including international retirement plans, supplemental retirement benefits and long-term incentive arrangements. Expense under these plans was $4,340, $4,189 and $4,067 in 2025, 2024 and 2023, respectively.