EMPLOYEE BENEFIT PLANS (Tables)
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12 Months Ended |
Jun. 30, 2020 |
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| Retirement Benefits [Abstract] |
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| Summary Data Related to Foreign Defined Benefit Pension Plans |
Summary data relating to our foreign defined benefit pension plans, including key weighted-average assumptions used, is provided in the following tables:
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Year ended June 30, |
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| (In thousands) |
2020 |
|
2019 |
| Change in projected benefit obligation: |
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| Projected benefit obligation as of the beginning of the fiscal year |
$ |
115,490 |
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|
$ |
96,682 |
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| Service cost |
4,823 |
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|
4,220 |
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| Interest cost |
1,084 |
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|
1,132 |
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| Contributions by plan participants |
78 |
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|
69 |
|
| Actuarial (gain) loss |
(496) |
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|
4,187 |
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| Benefit payments |
(3,119) |
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|
(1,755) |
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| Assumed benefit obligation from acquisition |
— |
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|
11,095 |
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| Foreign currency exchange rate changes and others, net |
2,010 |
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(140) |
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| Projected benefit obligation as of the end of the fiscal year |
$ |
119,870 |
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|
$ |
115,490 |
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Year ended June 30, |
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| (In thousands) |
2020 |
|
2019 |
| Change in fair value of plan assets: |
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| Fair value of plan assets as of the beginning of the fiscal year |
$ |
33,555 |
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|
$ |
27,932 |
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| Actual return on plan assets |
1,264 |
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|
854 |
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| Employer contributions |
5,271 |
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|
3,587 |
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| Benefit and expense payments |
(3,115) |
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|
(1,752) |
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| Assumed plan assets from acquisition |
— |
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|
3,424 |
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| Foreign currency exchange rate changes and others, net |
953 |
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(490) |
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| Fair value of plan assets as of the end of the fiscal year |
$ |
37,928 |
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$ |
33,555 |
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As of June 30, |
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| (In thousands) |
2020 |
|
2019 |
| Underfunded status |
$ |
81,942 |
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|
$ |
81,935 |
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As of June 30, |
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| (In thousands) |
2020 |
|
2019 |
| Plans with accumulated benefit obligations in excess of plan assets: |
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| Accumulated benefit obligation |
$ |
75,550 |
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|
$ |
72,508 |
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| Projected benefit obligation |
$ |
119,870 |
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|
$ |
115,490 |
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| Plan assets at fair value |
$ |
37,928 |
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|
$ |
33,555 |
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| Weighted-Average Assumptions Used in Determining Benefit Obligation and Net Periodic Cost |
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Year ended June 30, |
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2020 |
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2019 |
|
2018 |
Weighted-average assumptions(1):
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| Discount rate |
0.6%-1.7% |
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0.3%-1.7% |
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0.5%-2.3% |
| Expected rate of return on assets |
0.8%-2.9% |
|
1.0%-2.9% |
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1.3%-2.9% |
| Rate of compensation increases |
1.8%-4.5% |
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1.8%-4.5% |
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3.0%-4.5% |
__________________ (1)Represents the weighted-average assumptions used to determine the benefit obligation.
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| Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) |
The following table presents losses recognized in accumulated other comprehensive income (loss) before tax related to our foreign defined benefit pension plans:
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As of June 30, |
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| (In thousands) |
2020 |
|
2019 |
| Unrecognized transition obligation |
$ |
310 |
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$ |
242 |
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| Unrecognized prior service cost |
— |
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|
4 |
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| Unrealized net loss |
23,157 |
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|
25,721 |
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| Amount of losses recognized |
$ |
23,467 |
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$ |
25,967 |
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| Amounts in Other Comprehensive Income (Loss) Expected to be Recognized as Net Periodic Benefit |
Losses in accumulated other comprehensive income (loss) related to our foreign defined benefit pension plans expected to be recognized as components of net periodic benefit cost over the fiscal year ending June 30, 2021 are as follows:
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| (In thousands) |
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| Unrecognized prior service cost |
$ |
— |
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| Unrealized net loss |
1,050 |
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| Amount of losses expected to be recognized |
$ |
1,050 |
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| Components of Net Periodic Cost |
The components of our net periodic cost relating to our foreign subsidiaries’ defined pension plans are as follows:
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Year ended June 30, |
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| (In thousands) |
2020 |
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2019 |
|
2018 |
| Components of net periodic pension cost: |
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Service cost(1)
|
$ |
4,823 |
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$ |
4,220 |
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$ |
4,127 |
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| Interest cost |
1,086 |
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|
1,132 |
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|
1,302 |
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| Return on plan assets |
(475) |
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|
(476) |
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(428) |
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| Amortization of transitional obligation |
— |
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— |
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— |
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| Amortization of prior service cost |
3 |
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|
21 |
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|
26 |
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| Amortization of net loss |
1,214 |
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|
1,047 |
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1,731 |
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| Net periodic pension cost |
$ |
6,651 |
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$ |
5,944 |
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$ |
6,758 |
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__________________
(1)Service cost is reported in cost of revenues, research and development and selling, general and administrative expenses. All other components of net periodic pension cost are reported in other expense (income), net in the Consolidated Statements of Operations.
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| Foreign Plan Assets Measured at Fair Value on Recurring Basis |
Foreign plan assets measured at fair value on a recurring basis consisted of the following investment categories as of June 30, 2020 and 2019, respectively:
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| As of June 30, 2020 (In thousands) |
Total |
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Quoted Prices in
Active Markets
for Identical
Assets (Level 1) |
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Significant Other
Observable Inputs
(Level 2) |
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| Cash and cash equivalents |
$ |
21,420 |
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$ |
21,420 |
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$ |
— |
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| Bonds, equity securities and other investments |
16,508 |
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|
— |
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|
16,508 |
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| Total assets measured at fair value |
$ |
37,928 |
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$ |
21,420 |
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$ |
16,508 |
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| As of June 30, 2019 (In thousands) |
Total |
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Quoted Prices in
Active Markets
for Identical
Assets (Level 1) |
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Significant Other
Observable Inputs
(Level 2) |
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| Cash and cash equivalents |
$ |
18,571 |
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$ |
18,571 |
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$ |
— |
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| Bonds, equity securities and other investments |
14,984 |
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— |
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|
14,984 |
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| Total assets measured at fair value |
$ |
33,555 |
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$ |
18,571 |
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$ |
14,984 |
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