Annual report pursuant to Section 13 and 15(d)

EMPLOYEE BENEFIT PLANS (Tables)

v3.22.2
EMPLOYEE BENEFIT PLANS (Tables)
12 Months Ended
Jun. 30, 2022
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) 2022 2021
Change in projected benefit obligation:
Projected benefit obligation as of the beginning of the fiscal year $ 134,305  $ 119,870 
Service cost 5,054  4,649 
Interest cost 1,003  1,187 
Contributions by plan participants 78  72 
Actuarial loss 3,029  7,912 
Benefit payments (2,164) (2,629)
Plan amendment impact 670  — 
Settlements impact (1,010) — 
Foreign currency exchange rate changes and others, net (16,380) 3,244 
Projected benefit obligation as of the end of the fiscal year $ 124,585  $ 134,305 
  Year Ended June 30,
(In thousands) 2022 2021
Change in fair value of plan assets:
Fair value of plan assets as of the beginning of the fiscal year $ 44,726  $ 37,928 
Actual return on plan assets (1,087) 1,074 
Employer contributions 6,955  6,103 
Benefit and expense payments (2,160) (2,626)
Settlements impact (1,010) — 
Foreign currency exchange rate changes and others, net (3,831) 2,247 
Fair value of plan assets as of the end of the fiscal year $ 43,593  $ 44,726 
As of June 30,
(In thousands) 2022 2021
Underfunded status $ 80,992  $ 89,579 
  As of June 30,
(In thousands) 2022 2021
Plans with accumulated benefit obligations in excess of plan assets:
Accumulated benefit obligation $ 77,697  $ 81,924 
Projected benefit obligation $ 124,585  $ 134,305 
Plan assets at fair value $ 43,593  $ 44,726 
Schedule of Weighted-Average Assumptions Used in Determining Benefit Obligation and Net Periodic Cost
  Year Ended June 30,
  2022 2021 2020
Weighted-average assumptions(1):
Discount rate
0.9% - 3.0%
0.5% - 1.7%
0.6% - 1.7%
Expected rate of return on assets
0.9% - 3.0%
0.6% - 2.9%
0.8% - 2.9%
Rate of compensation increases
2.3% - 5.0%
2.3% - 5.0%
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) 2022 2021
Unrecognized prior service cost $ 12,414  $ — 
Unrealized net loss 19,400  30,375 
Amount of losses recognized $ 31,814  $ 30,375 
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) 2022 2021 2020
Components of net periodic pension cost:
Service cost(1)
$ 5,054  $ 4,649  $ 4,823 
Interest cost 1,003  1,187  1,086 
Return on plan assets (528) (549) (475)
Amortization of prior service cost 671  — 
Amortization of net loss 1,406  1,071  1,214 
Loss due to settlement/curtailment 38  130  — 
Foreign currency exchange rate changes (19) —  — 
Net periodic pension cost $ 7,625  $ 6,488  $ 6,651 
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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, 2022 and 2021, respectively:
As of June 30, 2022 (In thousands) Total Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
Significant Other
Observable Inputs
(Level 2)
Cash and cash equivalents $ 27,543  $ 27,543  $ — 
Bonds, equity securities and other investments 16,050  —  16,050 
Total assets measured at fair value $ 43,593  $ 27,543  $ 16,050 
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