EMPLOYEE BENEFIT PLANS (Tables)
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12 Months Ended |
Jun. 30, 2022 |
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| Retirement Benefits [Abstract] |
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| 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:
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Year Ended June 30, |
| (In thousands) |
2022 |
|
2021 |
| Change in projected benefit obligation: |
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| Projected benefit obligation as of the beginning of the fiscal year |
$ |
134,305 |
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|
$ |
119,870 |
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| Service cost |
5,054 |
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|
4,649 |
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| Interest cost |
1,003 |
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|
1,187 |
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| Contributions by plan participants |
78 |
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|
72 |
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| Actuarial loss |
3,029 |
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|
7,912 |
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| Benefit payments |
(2,164) |
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|
(2,629) |
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| Plan amendment impact |
670 |
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|
— |
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| Settlements impact |
(1,010) |
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— |
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| Foreign currency exchange rate changes and others, net |
(16,380) |
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|
3,244 |
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| Projected benefit obligation as of the end of the fiscal year |
$ |
124,585 |
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|
$ |
134,305 |
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Year Ended June 30, |
| (In thousands) |
2022 |
|
2021 |
| Change in fair value of plan assets: |
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| Fair value of plan assets as of the beginning of the fiscal year |
$ |
44,726 |
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|
$ |
37,928 |
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| Actual return on plan assets |
(1,087) |
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|
1,074 |
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| Employer contributions |
6,955 |
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|
6,103 |
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| Benefit and expense payments |
(2,160) |
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|
(2,626) |
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| Settlements impact |
(1,010) |
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— |
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| Foreign currency exchange rate changes and others, net |
(3,831) |
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|
2,247 |
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| Fair value of plan assets as of the end of the fiscal year |
$ |
43,593 |
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$ |
44,726 |
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As of June 30, |
| (In thousands) |
2022 |
|
2021 |
| Underfunded status |
$ |
80,992 |
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$ |
89,579 |
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As of June 30, |
| (In thousands) |
2022 |
|
2021 |
| Plans with accumulated benefit obligations in excess of plan assets: |
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| Accumulated benefit obligation |
$ |
77,697 |
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$ |
81,924 |
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| Projected benefit obligation |
$ |
124,585 |
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$ |
134,305 |
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| Plan assets at fair value |
$ |
43,593 |
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$ |
44,726 |
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| Schedule of Weighted-Average Assumptions Used in Determining Benefit Obligation and Net Periodic Cost |
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Year Ended June 30, |
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2022 |
|
2021 |
|
2020 |
Weighted-average assumptions(1):
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| Discount rate |
0.9% - 3.0% |
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0.5% - 1.7% |
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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% |
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2.3% - 5.0% |
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1.8% - 4.5% |
__________________ (1)Represents the weighted-average assumptions used to determine the benefit obligation.
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| 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:
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As of June 30, |
| (In thousands) |
2022 |
|
2021 |
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| Unrecognized prior service cost |
$ |
12,414 |
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|
$ |
— |
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| Unrealized net loss |
19,400 |
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|
30,375 |
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| Amount of losses recognized |
$ |
31,814 |
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$ |
30,375 |
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| Schedule of Net Periodic Cost |
The components of our net periodic cost relating to our foreign subsidiaries’ defined benefit pension plans are as follows:
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Year Ended June 30, |
| (In thousands) |
2022 |
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2021 |
|
2020 |
| Components of net periodic pension cost: |
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Service cost(1)
|
$ |
5,054 |
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$ |
4,649 |
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$ |
4,823 |
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| Interest cost |
1,003 |
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|
1,187 |
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|
1,086 |
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| Return on plan assets |
(528) |
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|
(549) |
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|
(475) |
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| Amortization of prior service cost |
671 |
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— |
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3 |
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| Amortization of net loss |
1,406 |
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|
1,071 |
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|
1,214 |
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| Loss due to settlement/curtailment |
38 |
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|
130 |
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— |
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| Foreign currency exchange rate changes |
(19) |
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— |
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— |
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| Net periodic pension cost |
$ |
7,625 |
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$ |
6,488 |
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$ |
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.
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| 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:
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| As of June 30, 2022 (In thousands) |
Total |
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Quoted Prices in
Active Markets
for Identical
Assets (Level 1) |
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Significant Other
Observable Inputs
(Level 2) |
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| Cash and cash equivalents |
$ |
27,543 |
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|
$ |
27,543 |
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|
$ |
— |
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| Bonds, equity securities and other investments |
16,050 |
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— |
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|
16,050 |
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| Total assets measured at fair value |
$ |
43,593 |
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$ |
27,543 |
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$ |
16,050 |
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| As of June 30, 2021 (In thousands) |
Total |
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Quoted Prices in
Active Markets
for Identical
Assets (Level 1) |
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Significant Other
Observable Inputs
(Level 2) |
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| Cash and cash equivalents |
$ |
25,458 |
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$ |
25,458 |
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|
$ |
— |
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| Bonds, equity securities and other investments |
19,268 |
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|
— |
|
|
19,268 |
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| Total assets measured at fair value |
$ |
44,726 |
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$ |
25,458 |
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$ |
19,268 |
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