Annual report pursuant to Section 13 and 15(d)

Employee Benefit Plans (Tables)

v3.2.0.727
Employee Benefit Plans (Tables)
12 Months Ended
Jun. 30, 2015
Postemployment Benefits [Abstract]  
Summary Data Related to Foreign Defined Benefit Pension Plans
Summary data relating to the Company’s foreign defined benefit pension plans, including key weighted-average assumptions used, is provided in the following tables:
 
Year ended June 30,
(In thousands)
2015
 
2014
Change in projected benefit obligation:
 
 
 
Projected benefit obligation as of the beginning of the fiscal year
$
77,035

 
$
71,276

Service cost
3,905

 
4,054

Interest cost
1,562

 
1,401

Contributions by plan participants
81

 
102

Actuarial loss
3,702

 
1,927

Benefit payments
(3,982
)
 
(1,910
)
Foreign currency exchange rate changes and others, net
(6,375
)
 
185

Projected benefit obligation as of the end of the fiscal year
$
75,928

 
$
77,035

 
 
 
 
 
Year ended June 30,
(In thousands)
2015
 
2014
Change in fair value of plan assets:
 
 
 
Fair value of plan assets as of the beginning of the fiscal year
$
15,163

 
$
13,317

Actual return on plan assets
334

 
274

Employer contributions
3,568

 
3,229

Benefit and expense payments
(3,982
)
 
(1,910
)
Foreign currency exchange rate changes and others, net
1,955

 
253

Fair value of plan assets as of the end of the fiscal year
$
17,038

 
$
15,163

 
 
As of June 30,
(In thousands)
2015
 
2014
Underfunded status
$
58,890

 
$
61,872

 
 
 
 
 
As of June 30,
(In thousands)
2015
 
2014
Plans with accumulated benefit obligations in excess of plan assets:
 
 
 
Accumulated benefit obligation
$
46,419

 
$
47,122

Projected benefit obligation
$
75,928

 
$
77,035

Plan assets at fair value
$
17,038

 
$
15,163

Weighted-Average Assumptions Used in Determining Benefit Obligation and Net Periodic Cost
 
Year ended June 30,
 
2015

2014

2013
Weighted-average assumptions:
 
 
 
 
 
Discount rate
1.3%-2.0%
 
1.5%-3.5%
 
1.5%-3.5%
Expected rate of return on assets
1.8%-2.5%
 
1.8%-3.8%
 
1.8%-4.0%
Rate of compensation increases
3.0%-5.5%
 
3.0%-5.5%
 
3.0%-5.0%
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 the Company’s foreign defined benefit pension plans: 
 
Year ended June 30,
(In thousands)
2015
 
2014
Unrecognized transition obligation
$
515

 
$
772

Unrecognized prior service cost
180

 
225

Unrealized net loss
24,119

 
23,645

Amount of losses recognized
$
24,814

 
$
24,642

Amounts in Other Comprehensive Income (Loss) Expected to be Recognized as Net Periodic Benefit
Losses in accumulated other comprehensive income (loss) related to the Company’s foreign defined benefit pension plans expected to be recognized as components of net periodic benefit cost over the fiscal year ending June 30, 2016 are as follows: 
(In thousands)
Year ending
June 30, 2016
Unrecognized transition obligation
$
255

Unrecognized prior service cost
42

Unrealized net loss
824

Amount of losses expected to be recognized
$
1,121

Components of Net Periodic Cost
The components of the Company’s net periodic cost relating to its foreign subsidiaries’ defined pension plans are as follows: 
 
Year ended June 30,
(In thousands)
2015
 
2014
 
2013
Components of net periodic pension cost:
 
 
 
 
 
Service cost
$
3,905

 
$
4,054

 
$
3,399

Interest cost
1,562

 
1,401

 
1,320

Return on plan assets
(450
)
 
(321
)
 
(315
)
Amortization of transitional obligation
259

 
262

 
372

Amortization of prior service cost
46

 
52

 
58

Amortization of net loss
1,014

 
1,021

 
633

Adjustment
(177
)
 

 
(1,436
)
Net periodic pension cost
$
6,159

 
$
6,469

 
$
4,031

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, 2015 and 2014, respectively:
As of June 30, 2015 (In thousands)
Total
 
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
 
Significant Other
Observable Inputs
(Level 2)
Cash and cash equivalents
$
10,954

 
$
10,954

 
$

Bonds, equity securities and other investments
6,084

 

 
6,084

Total assets measured at fair value
$
17,038

 
$
10,954

 
$
6,084

 
 
 
 
 
 
As of June 30, 2014 (In thousands)
Total
 
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
 
Significant Other
Observable Inputs
(Level 2)

Cash and cash equivalents
$
11,061

 
$
11,061

 
$

Bonds, equity securities and other investments
4,102

 

 
4,102

Total assets measured at fair value
$
15,163

 
$
11,061

 
$
4,102