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PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)
 12 Months Ended
Jul. 31, 2018
EMPLOYEE BENEFIT PLANS [Abstract]  
Schedule of Obligations and Funded Status
The following tables provide a reconciliation of changes in the plans’ benefit obligations, assets’ fair values and funded status by fiscal year (in thousands):
 
 
Pension Benefits
 
Postretirement Health Benefits
 
 
2018
 
2017
 
2018
 
2017
Change in benefit obligation:
 
 
 
 
 
 
 
 
Benefit obligation, beginning of year
 
$
53,742

 
$
55,124

 
$
2,925

 
$
2,746

Service cost
 
1,723

 
1,826

 
106

 
125

Interest cost
 
2,022

 
1,861

 
84

 
78

Actuarial (gain) loss
 
(1,811
)
 
(3,684
)
 
(363
)
 
(11
)
Benefits paid
 
(1,409
)
 
(1,385
)
 
(85
)
 
(13
)
Benefit obligation, end of year
 
54,267

 
53,742

 
2,667

 
2,925

 
 
 
 
 
 
 
 
 
Change in plan assets:
 
 
 
 
 
 
 
 
Fair value of plan assets, beginning of year
 
27,457

 
25,264

 
—

 
—

Actual return on plan assets
 
1,719

 
1,921

 
—

 
—

Employer contribution
 
13,204

 
1,657

 
85

 
13

Benefits paid
 
(1,409
)
 
(1,385
)
 
(85
)
 
(13
)
Fair value of plan assets, end of year
 
40,971

 
27,457

 
—

 
—

Funded status, recorded in Consolidated Balance Sheets
 
$
(13,296
)
 
$
(26,285
)
 
$
(2,667
)
 
$
(2,925
)
Schedule of Amounts Recognized in Balance Sheet
The following table shows amounts recognized in the Consolidated Balance Sheets as of July 31 (in thousands):
 
 
Pension Benefits
 
Postretirement Health
Benefits
 
 
2018
 
2017
 
2018
 
2017
Deferred income taxes
 
$
3,525

 
$
9,311

 
$
639

 
$
1,108

Other current liabilities
 
$
—

 
$
—

 
$
(57
)
 
$
(49
)
Other noncurrent liabilities
 
$
(13,296
)
 
$
(26,285
)
 
$
(2,610
)
 
$
(2,876
)
Accumulated other comprehensive loss – net of tax:
 
 
 
 
 
 
 
 
Net actuarial loss
 
$
10,301

 
$
10,036

 
$
110

 
$
315

Prior service cost (income)
 
$
2

 
$
3

 
$
(29
)
 
$
(27
)
Schedule of Net Benefit Costs
The following table shows the components of the net periodic pension and postretirement health benefit costs by fiscal year (in thousands):
 
 
Pension Cost
 
 Postretirement Health Benefit Cost
 
 
2018
 
2017
 
2018
 
2017
Service cost
 
$
1,723

 
$
1,826

 
$
106

 
$
125

Interest cost
 
2,022

 
1,861

 
84

 
78

Expected return on plan assets
 
(2,168
)
 
(1,774
)
 
—

 
—

Amortization of:
 
 
 
 
 
 
 
 
Prior service costs (income)
 
2

 
2

 
(6
)
 
(6
)
Other actuarial loss
 
1,274

 
1,828

 
—

 
41

Net periodic benefit cost
 
$
2,853

 
$
3,743

 
$
184

 
$
238
Schedule of Amounts Recognized in Other Comprehensive Income
The following table shows amounts, net of tax, that are recognized in other comprehensive income by fiscal year (in thousands):
 
 
Pension Benefits
 
 Postretirement Health Benefits
 
 
2018
 
2017
 
2018
 
2017
Net actuarial gain
 
$
(1,034
)
 
$
(2,377
)
 
$
(276
)
 
$
(7
)
Amortization of:
 
 
 
 
 
 
 
 
Prior service (cost) income
 
(2
)
 
(2
)
 
1

 
4

Amortization of actuarial loss (gain)
 
(901
)
 
(1,133
)
 
5

 
(25
)
Total recognized in other comprehensive income
 
$
(1,937
)
 
$
(3,512
)
 
$
(270
)
 
$
(28
)
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year
The following table shows amortization amounts, net of tax, expected to be recognized in fiscal year 2019 in accumulated other comprehensive income (in thousands):
Amortization of:
 
Pension Benefits
 
Postretirement Health Benefits
Net actuarial loss
 
$
673

 
$
—

Prior service cost (income)
 
2

 
(5
)
 Total to be recognized as other comprehensive loss (income)
 
$
675

 
$
(5
)
Schedule of Expected Benefit Payments
The following table shows the estimated future benefit payments by fiscal year (in thousands):
 
 
Pension
Benefits
 
Postretirement
Health Benefits
2019
 
$
1,687

 
$
57

2020
 
$
1,699

 
$
95

2021
 
$
1,786

 
$
122

2022
 
$
1,904

 
$
124

2023
 
$
1,944

 
$
165

2024-28
 
$
13,139

 
$
1,360
Schedule of Assumptions Used
The assumptions used in the previous calculations by fiscal year were as follows:
 
 
Pension Benefits
 
Postretirement Health Benefits
 
 
2018
 
2017
 
2018
 
2017
Discount rate for net periodic benefit costs
 
3.75%
 
3.36%
 
3.26%
 
2.71%
Discount rate for year-end obligations
 
4.04%
 
3.75%
 
3.81%
 
3.26%
Rate of increase in compensation levels for net periodic benefit costs
 
3.50%
 
3.50%
 
—
 
—
Rate of increase in compensation levels for year-end obligations
 
3.50%
 
3.50%
 
—
 
—
Long-term expected rate of return on assets
 
7.00%
 
7.00%
 
—
 
—
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates
The following table reflects the effect on postretirement health costs and accruals in fiscal year 2018 of a one-percentage point change in the assumed health care cost trend (in thousands):
 
 
 
One-Percentage Point
Increase
 
One-Percentage
Point Decrease
Effect on total service and interest cost
 
$26
 
$(22)
Effect on accumulated postretirement benefit obligation
 
$274
 
$(243)
Schedule of Allocation of Plan Assets
The targeted allocation percentages of plan assets is shown below for fiscal year 2019 and the actual allocation as of July 31:
Asset Allocation
 
Target fiscal 2019
 
2018
 
2017
   Cash and accrued income
 
2%
 
—%
 
—%
   Fixed income
 
38%
 
36%
 
44%
   Equity
 
60%
 
64%
 
56%


The following table sets forth by level, within the fair value hierarchy, the Pension Plan's assets carried at fair value (in thousands):
 
 
Fair Value At July 31, 2018
 
 
Total
 
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
   Asset Class
 
 
 
 
 
 
   Cash and cash equivalents(a)
 
$
1,102

 
$
1,102

 
$
—

   Equity securities(b):
 
 
 
 
 
 
U.S. companies
 
14,253

 
5,519

 
8,734

International companies
 
3,157

 
3,157

 
—

   Equity securities - international mutual funds:
 
 
 
 
 
 
       Developed market(c)
 
5,851

 
—

 
5,851

       Emerging markets(d)
 
905

 
—

 
905

   Commodities(e)
 
687

 
—

 
687

   Fixed Income:
 
 
 
 
 
 
 U.S. Treasuries
 
1,929

 
—

 
1,929

       Bonds(e)
 
8,325

 
—

 
8,325

       Government sponsored entities(f)
 
1,814

 
—

 
1,814

        Money market fund(g)
 
1,567

 
—

 
1,567

   Other(h)
 
1,381

 
—

 
1,381

   Total
 
$
40,971

 
$
9,778

 
$
31,193

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value At July 31, 2017
 
 
Total
 
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
   Asset Class
 
 
 
 
 
 
   Cash and cash equivalents(a)
 
$
97

 
$
97

 
$
—

   Equity securities(b):
 
 
 
 
 
 
U.S. companies
 
8,696

 
3,933

 
4,763

International companies
 
2,119

 
2,119

 
—

   Equity securities - international mutual funds:
 
 
 
 
 
 
       Developed market(c)
 
4,207

 
—

 
4,207

       Emerging markets(d)
 
374

 
—

 
374

   Fixed Income:
 
 
 
 
 
 
 U.S. Treasuries
 
2,080

 
—

 
2,080

       Bonds(e)
 
5,264

 
—

 
5,264

       Government sponsored entities(f)
 
2,529

 
—

 
2,529

        Money market fund(g)
 
1,087

 
—

 
1,087

   Other(h)
 
1,004

 
—

 
1,004

   Total
 
$
27,457

 
$
6,149

 
$
21,308


(a)
Cash and cash equivalents consists of highly liquid investments which are traded in active markets.
(b)
This class represents equities traded on regulated exchanges, as well as funds that invest in a portfolio of such stocks.
(c)
These mutual funds seek long-term capital growth by investing no less than 80% of their assets in stocks of non- U.S. companies that are primarily in developed markets, but also may invest in emerging and less developed markets.
(d)
These mutual funds seek to track the performance of a benchmark index that measures the investment return of stock issued by companies located in emerging market countries.
(e)
This class includes bonds of U.S. and non-U.S. corporate issuers from diverse industries and bonds of domestic and foreign municipalities.
(f)
This class represents a beneficial ownership interest in a pool of single-family residential mortgage loans. These investments are generally not backed by the full faith and credit of the United States government, except for securities valued at $443,000 in our portfolio as of July 31, 2018 and $577,000 as of July 31, 2017.
(g)
These money market mutual funds seek to provide current income consistent with liquidity and stability of principal by investing in a diversified portfolio of high quality, short-term, dollar-denominated debt securities. These funds may include securities issued or guaranteed as to principal and interest by the U.S. government or its agencies, short-term securities issued by domestic or foreign banks, domestic and dollar-denominated foreign commercial papers, and other short-term corporate obligations and obligations issued or guaranteed by one or more foreign governments.
(h)
This class seeks long-term positive returns by employing a number of arbitrage and alternative investment strategies. The portfolio of instruments may include equities, debt securities, warrants, options, swaps, future contracts, forwards or other types of derivative instruments.