Employee Benefit Plans

Retirement Plans:

The Company has a trusteed defined contribution retirement plan in effect for substantially all domestic employees meeting the eligibility requirements. Payments by the Company to the trusteed plan have a five-year vesting schedule and are held for the sole benefit of participants. The Company also maintains a supplemental employee retirement plan (SERP) for executive employees which enable 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.

Company contributions for domestic employees are based on a percent of net income with certain minimum and maximum limits as determined annually by the Compensation and Governance Committee of the Board of Directors. Total expense related to employer contributions to the domestic retirement plans was, in millions, $5.3, $5.0, and $4.5 for fiscal years 2012, 2011, and 2010, respectively.

Employees of certain foreign subsidiaries are covered by local pension or retirement plans. Total expense related to employer contributions to these foreign plans for fiscal years 2012, 2011, and 2010 was, in millions, $0.3, $0.5, and $0.6, respectively.

Severance Plans:

The Company maintains severance plans for all domestic employees which provide severance benefits to eligible employees meeting the plans' qualifications, primarily involuntary termination without cause. 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. Benefits are based upon an employee's years of service and accumulate up to certain limits specified in the plans and include both salary and an allowance for medical benefits. The components and changes in the Benefit Obligation, Accumulated Other Comprehensive Income (Loss), and Net Periodic Benefit Cost are as follows:



	June 30
(Amounts in Thousands)	2012			2011
Changes and Components of Benefit Obligation:
Benefit obligation at beginning of year	$	5,073		$	5,900
Service cost	811			934
Interest cost	189			264
Actuarial (gain) loss for the period	(1,265		)	(1,501		)
Benefits paid	(88		)	(524		)
Benefit obligation at end of year	$	4,720		$	5,073
Balance in current liabilities	$	828		$	890
Balance in noncurrent liabilities	3,892			4,183
Total benefit obligation recognized in the Consolidated Balance Sheets	$	4,720		$	5,073



	June 30
(Amounts in Thousands)	2012			2011
Changes and Components in Accumulated Other Comprehensive Income (Loss) (before tax):
Accumulated Other Comprehensive Income (Loss) at beginning of year	$	2,771		$	5,332
Change in unrecognized prior service cost	(286		)	(286		)
Net change in unrecognized actuarial loss	(1,898		)	(2,275		)
Accumulated Other Comprehensive Income (Loss) at end of year	$	587		$	2,771
Balance in unrecognized prior service cost	$	771		$	1,057
Balance in unrecognized actuarial (gain) loss	(184		)	1,714
Total Accumulated Other Comprehensive Income (Loss) recognized in Share Owners' Equity	$	587		$	2,771



(Amounts in Thousands)	Year Ended June 30
Components of Net Periodic Benefit Cost (before tax):	2012		2011		2010
Service cost	$	811	$	934	$	854
Interest cost	189		264		408
Amortization of prior service cost	286		286		285
Amortization of actuarial (gain) loss	633		774		753
Net periodic benefit cost recognized in the Consolidated Statements of Income	$	1,919	$	2,258	$	2,300

The benefit cost in the above table includes only normal recurring levels of severance activity, as estimated using an actuarial method and management judgment. Unusual or non-recurring severance actions, such as those disclosed in Note 17 - Restructuring Expense of Notes to Consolidated Financial Statements, are not estimable using actuarial methods and are expensed in accordance with the applicable U.S. GAAP.

The Company amortizes prior service costs on a straight-line basis over the average remaining service period of employees that were active at the time of the plan initiation and amortizes actuarial (gain) loss on a straight-line basis over the average remaining service period of employees expected to receive benefits under the plan.

The estimated prior service cost and actuarial net (gain) loss for the severance plans that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year are, pre-tax in thousands, $286 and $(32), respectively.

Assumptions used to determine fiscal year end benefit obligations are as follows:



	2012	2011
Discount Rate	3.3%	4.8%
Rate of Compensation Increase	4.0%	4.0%

Weighted average assumptions used to determine fiscal year net periodic benefit costs are as follows:



	2012	2011	2010
Discount Rate	4.1%	5.0%	6.2%
Rate of Compensation Increase	4.0%	4.0%	3.3%