Note 9. Employee Benefit Plans

12 Months Ended

Jun. 30, 2020

Retirement Benefits [Abstract]

Postemployment Benefits Disclosure

Employee Benefit Plans

Defined Contribution Retirement Plans:

The Company maintains a trusteed defined contribution retirement plan which is in effect for substantially all domestic employees meeting the eligibility requirements. The Company also maintains a supplemental employee retirement plan (“SERP”) for executives and other key employees which enables them to defer cash compensation on a pre-tax basis in excess of IRS limitations. The SERP is structured as a rabbi trust, and therefore, assets in the SERP portfolio are subject to creditor claims in the event of bankruptcy.

The discretionary employer contribution for domestic employees is determined annually by the Compensation and Governance Committee of the Company’s Board of Directors. Total expense related to employer contributions to the domestic retirement plans was, in millions, $2.4, $2.1, and $2.0 for fiscal years 2020, 2019, and 2018, respectively.

Defined Benefit Postemployment Plans:

The Company established and maintains severance plans for all domestic employees and other postemployment plans for certain foreign subsidiaries. There are no statutory requirements for the Company to contribute to the plans, nor do employees contribute to the plans. The plans hold no assets. Benefits are paid using available cash on hand when eligible employees meet plan qualifications for payment.

As of June 30, 2020 and 2019, total obligations under these plans were $4.2 million and $3.4 million, respectively, of which $3.6 million and $3.1 million were long term and $0.6 million and $0.3 million were short term. Of the total obligation at June 30, 2020 and 2019, domestic plans were $1.1 million and $1.5 million and foreign plans were $3.1 million and $1.9 million, respectively. Actuarial (gain) loss is recorded in Accumulated Other Comprehensive (Income) Loss and amortized into net period benefit cost on a straight-line basis over the average remaining service period of employees expected to receive benefits under the plans. Net periodic benefit cost recognized for these plans in fiscal years 2020, 2019, and 2018 were $0.3 million, $0.8 million, and $0.3 million, respectively.