Annual report pursuant to Section 13 and 15(d)

EMPLOYEE BENEFIT PLANS (Tables)

v3.20.2
EMPLOYEE BENEFIT PLANS (Tables)
12 Months Ended
Jun. 30, 2020
Retirement Benefits [Abstract]  
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:
  Year ended June 30,
(In thousands) 2020 2019
Change in projected benefit obligation:
Projected benefit obligation as of the beginning of the fiscal year $ 115,490    $ 96,682   
Service cost 4,823    4,220   
Interest cost 1,084    1,132   
Contributions by plan participants 78    69   
Actuarial (gain) loss (496)   4,187   
Benefit payments (3,119)   (1,755)  
Assumed benefit obligation from acquisition —    11,095   
Foreign currency exchange rate changes and others, net 2,010    (140)  
Projected benefit obligation as of the end of the fiscal year $ 119,870    $ 115,490   
  Year ended June 30,
(In thousands) 2020 2019
Change in fair value of plan assets:
Fair value of plan assets as of the beginning of the fiscal year $ 33,555    $ 27,932   
Actual return on plan assets 1,264    854   
Employer contributions 5,271    3,587   
Benefit and expense payments (3,115)   (1,752)  
Assumed plan assets from acquisition —    3,424   
Foreign currency exchange rate changes and others, net 953    (490)  
Fair value of plan assets as of the end of the fiscal year $ 37,928    $ 33,555   
 
As of June 30,
(In thousands) 2020 2019
Underfunded status $ 81,942    $ 81,935   
  As of June 30,
(In thousands) 2020 2019
Plans with accumulated benefit obligations in excess of plan assets:
Accumulated benefit obligation $ 75,550    $ 72,508   
Projected benefit obligation $ 119,870    $ 115,490   
Plan assets at fair value $ 37,928    $ 33,555   
Weighted-Average Assumptions Used in Determining Benefit Obligation and Net Periodic Cost
  Year ended June 30,
  2020 2019 2018
Weighted-average assumptions(1):
Discount rate
0.6%-1.7%
0.3%-1.7%
0.5%-2.3%
Expected rate of return on assets
0.8%-2.9%
1.0%-2.9%
1.3%-2.9%
Rate of compensation increases
1.8%-4.5%
1.8%-4.5%
3.0%-4.5%
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(1)Represents the weighted-average assumptions used to determine the benefit obligation.
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: 
  As of June 30,
(In thousands) 2020 2019
Unrecognized transition obligation $ 310    $ 242   
Unrecognized prior service cost —     
Unrealized net loss 23,157    25,721   
Amount of losses recognized $ 23,467    $ 25,967   
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: 
(In thousands)
Unrecognized prior service cost $ —   
Unrealized net loss 1,050   
Amount of losses expected to be recognized $ 1,050   
Components of Net Periodic Cost
The components of our net periodic cost relating to our foreign subsidiaries’ defined pension plans are as follows: 
  Year ended June 30,
(In thousands) 2020 2019 2018
Components of net periodic pension cost:
Service cost(1)
$ 4,823    $ 4,220    $ 4,127   
Interest cost 1,086    1,132    1,302   
Return on plan assets (475)   (476)   (428)  
Amortization of transitional obligation —    —    —   
Amortization of prior service cost   21    26   
Amortization of net loss 1,214    1,047    1,731   
Net periodic pension cost $ 6,651    $ 5,944    $ 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.
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:
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   
As of June 30, 2019 (In thousands) Total Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
Significant Other
Observable Inputs
(Level 2)
Cash and cash equivalents $ 18,571    $ 18,571    $ —   
Bonds, equity securities and other investments 14,984    —    14,984   
Total assets measured at fair value $ 33,555    $ 18,571    $ 14,984