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EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Jun. 30, 2020

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	—		4
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	3		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