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Note G - Employee Benefit Plans | 12 Months Ended
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Jun. 30, 2019
Notes to Financial Statements |
Pension and Other Postretirement Benefits Disclosure [Text Block] | G. Employee Benefit Plans We have a profit sharing plan pursuant to Section 401 (k) of the Code, whereby participants may contribute a percentage of compensation not in excess of the maximum allowed under the Code. All employees with six months or longer of continuous employment are eligible to participate in the plan. Under the 401 (k) plan, we match 100% of the first 3% and 50% of the next 2% of a participant’s compensation contributed to the plan. The total contributions under the plan charged to income from operations totaled $283,000 for fiscal 2019 and $256,000 for fiscal 2018. We have a “Cafeteria Plan” pursuant to Section 125 of the Code, whereby health care benefits are provided for active employees through insurance companies. Substantially all active full-time employees are eligible for these benefits. We recognize the cost of providing these benefits by expensing the annual premiums, which are based on benefits paid during the year. The premiums expensed to operating income for these benefits totaled $1.3 million for the fiscal year ended June 30, 2019 and $1.1 million for the fiscal year ended June 30, 2018. We formerly sponsored a defined benefit pension plan, which provides retirement benefits to employees based generally on years of service and compensation during the last five years before retirement. Effective June 21, 1999, we adopted an amendment to freeze benefit accruals to the participants. Annually, we contribute an amount not less than the minimum funding requirements of the Employee Retirement Income Security Act of 1974 nor more than the maximum tax-deductible amount. Disclosure of Funded Status The following table sets forth the defined benefit pension plan’s funded status and amount recognized in our consolidated balance sheets at June 30 (in thousands):
|  | 201 9 |  |  | 201 8 |
Change in Benefit Obligation: |  |  |  |  |  |  |  |
Benefit obligation at beginning of year |  | $ | 1,498 |  |  | $ | 1,804 |
Interest cost |  |  | 57 |  |  |  | 57 |
Actuarial loss (gain) |  |  | 173 |  |  |  | (24 | )
Benefits paid |  |  | (113 | ) |  |  | (339 | )
Benefit obligation at end of year |  | $ | 1,615 |  |  | $ | 1,498 |
Change in Plan Assets: |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of year |  | $ | 1,453 |  |  | $ | 1,247 |
Actual return on plan assets |  |  | 69 |  |  |  | 83 |
Employer contributions |  |  | — |  |  |  | 500 |
Benefits paid |  |  | (114 | ) |  |  | (339 | )
Plan expenses |  |  | (39 | ) |  |  | (38 | )
Fair value of plan assets at end of year |  | $ | 1,369 |  |  | $ | 1,453 |
Reconciliation of Funded Status: |  |  |  |  |  |  |  |
Difference between benefit obligation and fair value of plan assets |  | $ | (246 | ) |  | $ | (45 | )
Unrecognized net actuarial loss in accumulated other comprehensive income |  |  | 671 |  |  |  | 523 |
Net amount recognized |  | $ | 425 |  |  | $ | 478 |
Projected benefit obligation |  | $ | 1,615 |  |  | $ | 1,498 |
Accumulated benefit obligation |  | $ | 1,615 |  |  | $ | 1,498 |
Fair value of plan assets |  | $ | 1,369 |  |  | $ | 1,453 |
The weighted-average discount rate used for determining the projected benefit obligations for the defined benefit pension plan was 3.5% for the year ended June 30, 2019 and 4.1% during the year ended June 30, 2018. Net Periodic Benefit Cost The components included in the defined benefit pension plan’s net periodic benefit expense for the fiscal years ended June 30 were as follows (in thousands):
|  | 201 9 |  |  | 2018 |
Interest cost |  | $ | 57 |  |  | $ | 57 |
Expected return on plan assets |  |  | (85 | ) |  |  | (89 | )
Recognized actuarial loss |  |  | 38 |  |  |  | 49 |
Settlement loss |  |  | 43 |  |  |  | 119 |
Net periodic benefit expense |  | $ | 53 |  |  | $ | 136 |
In the fiscal year ended June 30, 2019, we did not contribute to our defined benefit pension plan. In the fiscal year ended June 30, 2018, we contributed $500,000 to our defined benefit pension plan. We do not expect to make any contributions in the fiscal year ended June 30, 2020. The following is a summary of changes in plan assets and benefit obligations recognized in other comprehensive income (in thousands):
|  | 201 9 |  |  | 2018 |
Net gain (loss) |  | $ | 189 |  |  | $ | (18 | )
Settlement loss |  |  | (50 | ) |  |  | (119 | )
Amortization of net loss |  |  | (37 | ) |  |  | (49 | )
Plan expenses |  |  | 39 |  |  |  | 38 |
Total recognized in other comprehensive income (loss) |  | $ | 141 |  |  | $ | (148 | )
Total recognized in net periodic benefit cost and other comprehensive income |  | $ | 194 |  |  | $ | (12 | )
The estimated net gain for the defined benefit pension plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $21,000. We do not have any transition obligations or prior service costs recorded in accumulated other comprehensive income. The following benefit payments are expected to be paid (in thousands):
2020 |  | $ | 67 |
2021 |  |  | 79 |
2022 |  |  | 78 |
2023 |  |  | 84 |
2024 |  |  | 83 |
2025-2029 |  |  | 551 |
Total benefit payments expected to be paid |  | $ | 942 |
The weighted-average rates used for the years ended June 30 in determining the defined benefit pension plan’s net pension costs, were as follows:
|  | 201 9 |  |  | 2018 |
Discount rate |  |  | 3.51 | % |  |  | 4.14 | %
Expected long-term rate of return |  |  | 6.50 | % |  |  | 6.80 | %
Compensation increase rate |  |  | N/A |  |  |  | N/A |
Our expected rate of return is determined based on a methodology that considers historical returns of multiple classes analyzed to develop a risk free real rate of return and risk premiums for each asset class. The overall rate for each asset class was developed by combining a long-term inflation component, the risk free real rate of return, and the associated risk premium. A weighted average rate was developed based on those overall rates and the target asset allocation of the plan. Our defined benefit pension plan’s weighted average asset allocation at June 30 and weighted average target allocation were as follows:
|  | 2019 |  |  | 2018 |  |  | Target Allocation |
Equity securities |  |  | 52 | % |  |  | 51 | % |  |  | 49 | %
Debt securities |  |  | 38 | % |  |  | 47 | % |  |  | 46 | %
Commodities |  |  | 2 | % |  |  | 0 | % |  |  | 2 | %
Cash and money market funds |  |  | 8 | % |  |  | 2 | % |  |  | 3 | %
|  |  | 100 | % |  |  | 100 | % |  |  | 100 | %
The underlying basis of the investment strategy of our defined benefit pension plan is to ensure that pension funds are available to meet the plan’s benefit obligations when due. Our investment strategy is a long-term risk controlled approach using diversified investment options with relatively minimal exposure to volatile investment options like derivatives. The fair values by asset category of our defined benefit pension plan at June 30, 2019 were as follows (in thousands):
|  | Total |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
Cash and money market funds |  | $ | 105 |  |  | $ | 105 |  |  | $ | — |  |  | $ | — |
Commodities and other |  | $ | 25 |  |  | $ | 25 |  |  | $ | — |  |  | $ | — |
Equity securities (1) |  | $ | 712 |  |  | $ | 712 |  |  | $ | — |  |  | $ | — |
Debt securities (2) |  | $ | 527 |  |  | $ | 527 |  |  | $ | — |  |  | $ | — |
Total |  | $ | 1,369 |  |  | $ | 1,369 |  |  | $ | — |  |  | $ | — |
( 1 ) | This category is comprised of publicly traded funds, of which 34% are large-cap funds, 27% are mid-cap and small-cap, 13% are developed market funds, 15% are emerging markets equity funds, and 11% are specialty funds.
( 2 ) | This category is comprised of publicly traded funds, of which 16% are REITs, 49% are high-yield fixed income funds, 4% are U.S. fixed income funds, 8% are developed market fixed income funds, and 23% are international/emerging markets funds.

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- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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