Annual report pursuant to Section 13 and 15(d)

Employee Benefit Plans (Tables)

v3.7.0.1
Employee Benefit Plans (Tables)
12 Months Ended
Jun. 30, 2017
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)
2017
 
2016
Change in projected benefit obligation:
 
 
 
Projected benefit obligation as of the beginning of the fiscal year
$
89,923

 
$
75,928

Service cost
4,015

 
3,349

Interest cost
1,117

 
1,322

Contributions by plan participants
76

 
163

Actuarial loss
2,991

 
9,029

Benefit payments
(1,363
)
 
(2,517
)
Foreign currency exchange rate changes and others, net
506

 
2,649

Projected benefit obligation as of the end of the fiscal year
$
97,265

 
$
89,923

 
 
 
 
 
Year ended June 30,
(In thousands)
2017
 
2016
Change in fair value of plan assets:
 
 
 
Fair value of plan assets as of the beginning of the fiscal year
$
18,894

 
$
17,038

Actual return on plan assets
241

 
588

Employer contributions
3,330

 
4,330

Benefit and expense payments
(1,363
)
 
(2,517
)
Foreign currency exchange rate changes and others, net
678

 
(545
)
Fair value of plan assets as of the end of the fiscal year
$
21,780

 
$
18,894

 
 
As of June 30,
(In thousands)
2017
 
2016
Underfunded status
$
75,485

 
$
71,029

 
 
 
 
 
As of June 30,
(In thousands)
2017
 
2016
Plans with accumulated benefit obligations in excess of plan assets:
 
 
 
Accumulated benefit obligation
$
56,967

 
$
53,198

Projected benefit obligation
$
97,265

 
$
89,923

Plan assets at fair value
$
21,780

 
$
18,894

Weighted-Average Assumptions Used in Determining Benefit Obligation and Net Periodic Cost
 
Year ended June 30,
 
2017

2016

2015
Weighted-average assumptions:
 
 
 
 
 
Discount rate
0.8%-1.9%
 
0.5%-2.0%
 
1.3%-2.0%
Expected rate of return on assets
1.5%-2.9%
 
1.8%-2.5%
 
1.8%-2.5%
Rate of compensation increases
3.0%-5.8%
 
3.0%-5.8%
 
3.0%-5.5%
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)
2017
 
2016
Unrecognized transition obligation
$
190

 
$
108

Unrecognized prior service cost
51

 
113

Unrealized net loss
33,477

 
31,739

Amount of losses recognized
$
33,718

 
$
31,960

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, 2018 are as follows: 
(In thousands)
Year ending
June 30, 2018
Unrecognized transition obligation
$

Unrecognized prior service cost
26

Unrealized net loss
1,436

Amount of losses expected to be recognized
$
1,462

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)
2017
 
2016
 
2015
Components of net periodic pension cost:
 
 
 
 
 
Service cost
$
4,015

 
$
3,349

 
$
3,905

Interest cost
1,117

 
1,322

 
1,562

Return on plan assets
(393
)
 
(406
)
 
(450
)
Amortization of transitional obligation
251

 
249

 
259

Amortization of prior service cost
46

 
46

 
46

Amortization of net loss
1,617

 
1,132

 
1,014

Adjustment

 

 
(177
)
Net periodic pension cost
$
6,653

 
$
5,692

 
$
6,159

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, 2017 and 2016, respectively:
As of June 30, 2017 (In thousands)
Total
 
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
 
Significant Other
Observable Inputs
(Level 2)
Cash and cash equivalents
$
13,784

 
$
13,784

 
$

Bonds, equity securities and other investments
7,996

 

 
7,996

Total assets measured at fair value
$
21,780

 
$
13,784

 
$
7,996

 
 
 
 
 
 
As of June 30, 2016 (In thousands)
Total
 
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
 
Significant Other
Observable Inputs
(Level 2)

Cash and cash equivalents
$
11,950

 
$
11,950

 
$

Bonds, equity securities and other investments
6,944

 

 
6,944

Total assets measured at fair value
$
18,894

 
$
11,950

 
$
6,944