Postretirement and Other Employee Benefits (Tables)

12 Months Ended

Jun. 30, 2020

Schedule of PBO, Change in Plan Assets, Funded Status and Amounts Recognized in Consolidated Balance Sheet

The following table represents the PBO, change in plan assets, funded status and amounts recognized in our consolidated balance sheets at June 30, 2020 and 2019:


	June 30,
	2020		2019
	(in thousands)
Change in benefit obligation:
Projected benefit obligation at beginning of year	$	56,908	$	51,368
Service cost	2,955		2,532
Interest cost	226		456
Actuarial (gain) loss	(2,374)		4,124
Plan participant contributions	905		880
Benefits paid, net of transfers into plan	(222)		(215)

Settlement	(5,500)		(3,060)
Effect of foreign currency exchange rate changes	1,677		823
Projected benefit obligation at end of year	$	54,575	$	56,908
Change in plan assets:
Fair value of plan assets at beginning of year	$	37,306	$	36,929
Actual return on plan assets	(1,181)		339
Employer contribution	1,899		1,870
Plan participant contributions	905		880
Benefits paid, net of transfers into plan	(222)		(215)
Settlement	(5,500)		(3,060)
Effect of foreign currency exchange rate changes	1,109		563
Fair value of plan assets at end of year	$	34,316	$	37,306
Pension liability at end of fiscal year	$	(20,259)	$	(19,602)

Accumulated other comprehensive loss consists of the following:


Net prior service credit	$	2,642	$	2,877
Net actuarial loss	(10,436)		(11,586)
Accumulated other comprehensive loss, before income tax	$	(7,794)	$	(8,709)

Summary of Weighted-Average Assumptions Used to Determine Net Benefit Costs and Benefit Obligations

The net unfunded balance of our defined benefit pension plan is recorded as a non-current liability and all unrecognized gains or losses, net of tax, are recorded as a component of other comprehensive loss within stockholders’ equity at June 30, 2020.

Assumptions:


	Fiscal Year Ended June 30,
	2020		2019		2018
Weighted-average assumptions used to determine net benefit costs:
Discount rate	0.40	%	0.90	%	0.70	%
Expected return on plan assets	3.25	%	3.75	%	3.50	%
Rate of compensation increase	1.75	%	1.75	%	1.50	%
Weighted-average assumptions used to determine benefit obligations at year end:
Discount rate	0.25	%	0.40	%	0.90	%
Expected return on plan assets	2.75	%	3.25	%	3.75	%
Rate of compensation increase	1.50	%	1.75	%	1.75	%

Summary of Swiss Pension Plan's Actual Asset Allocation as Compared to Profond's Target Asset Allocations

The Swiss pension plan's actual asset allocation as compared to Profond’s target asset allocations for fiscal year 2020 were as follows:


	Actual		Target
Asset Category:
Cash and cash equivalents	8	%	2	%
Equity Securities	49	%	49	%
Fixed Income	12	%	17	%
Real Estate	27	%	28	%
Other	4	%	4	%

Summary of Estimated Future Benefit Payments

As of June 30, 2020, the estimated future benefit payments (inclusive of any future service) were as follows:


	(in thousands)
2021	$	1,644
2022	1,598
2023	1,876
2024	1,841
2025	3,077
2025-2029	10,657

Components of Net Periodic Pension Costs for the Swiss Pension Plan

Net periodic pension costs for the Swiss pension plan included the following components:


	Fiscal Year Ended June 30,
	2020		2019		2018
	(in thousands)
Components of net periodic cost
Service cost	$	2,955	$	2,532	$	2,539
Interest cost	226		456		353
Net prior service credit	(311)		(306)		(91)
Net actuarial loss	482		219		217
Expected return on plan assets	(1,252)		(1,384)		(1,196)
Settlements	1,049		617		—
Net periodic cost	$	3,149	$	2,134	$	1,822