Annual report pursuant to Section 13 and 15(d)

EMPLOYEE BENEFIT PLANS (Tables)

v3.21.2
EMPLOYEE BENEFIT PLANS (Tables)
12 Months Ended
Jun. 30, 2021
Retirement Benefits [Abstract]  
Schedule of 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:
  Year Ended June 30,
(In thousands) 2021 2020
Change in projected benefit obligation:
Projected benefit obligation as of the beginning of the fiscal year $ 119,870  $ 115,490 
Service cost 4,649  4,823 
Interest cost 1,187  1,084 
Contributions by plan participants 72  78 
Actuarial (gain) loss 7,912  (496)
Benefit payments (2,629) (3,119)
Foreign currency exchange rate changes and others, net 3,244  2,010 
Projected benefit obligation as of the end of the fiscal year $ 134,305  $ 119,870 
  Year Ended June 30,
(In thousands) 2021 2020
Change in fair value of plan assets:
Fair value of plan assets as of the beginning of the fiscal year $ 37,928  $ 33,555 
Actual return on plan assets 1,074  1,264 
Employer contributions 6,103  5,271 
Benefit and expense payments (2,626) (3,115)
Foreign currency exchange rate changes and others, net 2,247  953 
Fair value of plan assets as of the end of the fiscal year $ 44,726  $ 37,928 
 
As of June 30,
(In thousands) 2021 2020
Underfunded status $ 89,579  $ 81,942 
  As of June 30,
(In thousands) 2021 2020
Plans with accumulated benefit obligations in excess of plan assets:
Accumulated benefit obligation $ 81,924  $ 75,550 
Projected benefit obligation $ 134,305  $ 119,870 
Plan assets at fair value $ 44,726  $ 37,928 
Schedule of Weighted-Average Assumptions Used in Determining Benefit Obligation and Net Periodic Cost
  Year Ended June 30,
  2021 2020 2019
Weighted-average assumptions(1):
Discount rate
0.5%-1.7%
0.6%-1.7%
0.3%-1.7%
Expected rate of return on assets
0.6%-2.9%
0.8%-2.9%
1.0%-2.9%
Rate of compensation increases
2.3%-5.0%
1.8%-4.5%
1.8%-4.5%
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(1)Represents the weighted-average assumptions used to determine the benefit obligation.
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss)
The following table presents losses recognized in AOCI before tax related to our foreign defined benefit pension plans: 
  As of June 30,
(In thousands) 2021 2020
Unrecognized transition obligation $ —  $ 310 
Unrealized net loss 30,375  23,157 
Amount of losses recognized $ 30,375  $ 23,467 
Schedule of Net Periodic Cost
The components of our net periodic cost relating to our foreign subsidiaries’ defined benefit pension plans are as follows: 
  Year Ended June 30,
(In thousands) 2021 2020 2019
Components of net periodic pension cost:
Service cost(1)
$ 4,649  $ 4,823  $ 4,220 
Interest cost 1,187  1,086  1,132 
Return on plan assets (549) (475) (476)
Amortization of prior service cost —  21 
Amortization of net loss 1,071  1,214  1,047 
Loss due to settlement/curtailment 130  —  — 
Net periodic pension cost $ 6,488  $ 6,651  $ 5,944 
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(1)Service cost is reported in cost of revenues, R&D and SG&A expenses. All other components of net periodic pension cost are reported in other expense (income), net in the Consolidated Statements of Operations.
Schedule of 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, 2021 and 2020, respectively:
As of June 30, 2021 (In thousands) Total Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
Significant Other
Observable Inputs
(Level 2)
Cash and cash equivalents $ 25,458  $ 25,458  $ — 
Bonds, equity securities and other investments 19,268  —  19,268 
Total assets measured at fair value $ 44,726  $ 25,458  $ 19,268 
As of June 30, 2020 (In thousands) Total Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
Significant Other
Observable Inputs
(Level 2)
Cash and cash equivalents $ 21,420  $ 21,420  $ — 
Bonds, equity securities and other investments 16,508  —  16,508 
Total assets measured at fair value $ 37,928  $ 21,420  $ 16,508