Employee Benefit Plans

12 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plans

Retirement Plans:

We have a tax-qualified defined contribution retirement plan in effect for substantially all domestic employees meeting the eligibility requirements. Employer contributions to the plan have a five-year vesting schedule and are held for the sole benefit of participants. We also maintain a supplemental employee retirement plan (“SERP”) for executive 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 Board of Directors. Total expense related to employer contributions to the domestic retirement plans was, in millions, $3.6, $0.0 and $4.9 for fiscal years 2022, 2021 and 2020, respectively.

Employees of certain foreign subsidiaries are covered by local pension or retirement plans, and employees of recently acquired companies receive an employer matching contribution. The expense related to employer contributions to these plans for fiscal years 2022, 2021, and 2020 was not material.

Severance Plans:

Our domestic employees participate in severance plans which provide severance benefits to eligible employees meeting the plans’ qualifications, primarily for involuntary termination without cause.

There are no statutory requirements for us 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)	2022		2021
Changes and Components of Benefit Obligation:
Benefit obligation at beginning of year	$	2,971	$	2,739
Service cost	512		496
Interest cost	69		46
Actuarial (gain) loss for the period	(941)		(258)
Benefits paid	(53)		(52)
Benefit obligation at end of year	$	2,558	$	2,971
Balance in current liabilities	$	496	$	540
Balance in non-current liabilities	2,062		2,431
Total benefit obligation recognized in the Consolidated Balance Sheets	$	2,558	$	2,971

	June 30
(Amounts in Thousands)	2022		2021
Changes and Components in Accumulated Other Comprehensive Income (Loss) (before tax):
Accumulated Other Comprehensive Income (Loss) at beginning of year	$	2,663	$	2,832
Net change in unrecognized actuarial gain (loss)	419		(169)
Accumulated Other Comprehensive Income (Loss) at end of year	$	3,082	$	2,663

(Amounts in Thousands)	Year Ended June 30
Components of Net Periodic Benefit Cost (before tax):	2022		2021		2020
Service cost	$	512	$	496	$	489
Interest cost	69		46		66
Amortization of actuarial (gain) loss	(522)		(427)		(338)
Net periodic benefit cost — Total cost	$	59	$	115	$	217

The benefit cost in the above table includes only normal recurring levels of severance activity, as estimated using an actuarial method. Unusual or non-recurring severance actions, such as the restructuring employee transition pay described in Note 3 - Restructuring of Notes to Consolidated Financial Statements, are not estimable using actuarial methods and are therefore excluded from the preceding tables.

The Plan recognized actuarial gains during fiscal years 2022, 2021 and 2020 as a result of lower benefit payments than were assumed in the benefit obligation. The actuarial gains are amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits under the plans.

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

	2022	2021
Discount Rate	4.3%	2.1%
Rate of Compensation Increase	2.0%	2.0%

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

	2022	2021	2020
Discount Rate	2.6%	1.7%	2.5%
Rate of Compensation Increase	2.0%	2.0%	2.8%