PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)

12 Months Ended

Jul. 31, 2020

EMPLOYEE BENEFIT PLANS [Abstract]

Schedule of Obligations and Funded Status

The following tables provide a reconciliation of changes in the plans’ benefit obligations, asset fair values and funded status by fiscal year (in thousands):

	Pension Benefits						Postretirement Health Benefits
	2020			2019			2020			2019
Change in benefit obligation:
Benefit obligation, beginning of year	$	61,553		$	54,267		$	2,958		$	2,667
Service cost	1,096			1,626			116			105
Interest cost	1,900			2,114			82			97
Actuarial loss	8,570			5,125			247			97
Benefits paid	(1,663		)	(1,579		)	(112		)	(8		)
Curtailments	(6,632		)	—			—			—
Settlements	(7,544		)	—			—			—
Benefit obligation, end of year	57,280			61,553			3,291			2,958
Change in plan assets:
Fair value of plan assets, beginning of year	40,725			40,971			—			—
Actual return on plan assets	5,816			1,333			—			—
Employer contribution	8,000			—			112			8
Benefits paid	(1,663		)	(1,579		)	(112		)	(8		)
Settlements	(7,544		)	—			—			—
Fair value of plan assets, end of year	45,334			40,725			—			—
Funded status, recorded in Consolidated Balance Sheets	$	(11,946	)	$	(20,828	)	$	(3,291	)	$	(2,958	)

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
	2020			2019			2020			2019
Deferred income taxes	$	2,443		$	5,346		$	850		$	754
Other current liabilities	$	—		$	—		$	(97	)	$	(65	)
Other noncurrent liabilities	$	(11,946	)	$	(20,828	)	$	(3,194	)	$	(2,893	)
Accumulated other comprehensive loss – net of tax:
Net actuarial loss	$	11,642		$	14,731		$	352		$	184
Prior service cost (income)	$	—		$	—		$	—		$	(24	)

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
	2020			2019			2020			2019
Service cost	$	1,096		$	1,626		$	116		$	105
Interest cost	1,900			2,114			82			97
Expected return on plan assets	(2,790		)	(2,809		)	—			—
Amortization of:
Prior service costs (income)	—			2			(6		)	(6		)
Other actuarial loss	1,005			771			—			—
Settlement cost	2,012			—			—			—
Net periodic benefit cost	$	3,223		$	1,704		$	192		$	196

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
	2020			2019			2020		2019
Net actuarial loss	$	4,243		$	5,016		$	188	$	73
Amortization of:
Prior service (cost) income	—			(1		)	5		5
Amortization of actuarial loss	(763		)	(586		)	—		—
Curtailment/Settlement	$	(6,570	)	$	—		$	—	$	—
Total recognized in other comprehensive (income) loss	$	(3,090	)	$	4,429		$	193	$	78

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 2021 in accumulated other comprehensive income (in thousands):

Amortization of:	Pension Benefits		Postretirement Health Benefits
Net actuarial loss	$	786	$	11
Prior service income	—		(5		)
Total to be recognized as other comprehensive loss (income)	$	786	$	6

Schedule of Expected Benefit Payments

The following table shows the estimated future benefit payments by fiscal year (in thousands):

	Pension Benefits		Postretirement Health Benefits
2021	$	1,743	$	115
2022	$	1,794	$	98
2023	$	1,798	$	121
2024	$	1,842	$	191
2025	$	1,952	$	234
2026-30	$	11,484	$	1,385

Schedule of Assumptions Used

The assumptions used in the previous calculations by fiscal year were as follows:

	Pension Benefits		Postretirement Health Benefits
	2020	2019	2020	2019
Discount rate for net periodic benefit costs	3.35%	4.04%	2.93%	3.81%
Discount rate for year-end obligations	2.14%	3.35%	1.63%	2.93%
Rate of increase in compensation levels for net periodic benefit costs	—%	3.50%	—%	—%
Rate of increase in compensation levels for year-end obligations	—%	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 2020 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	$27	$(23)
Effect on accumulated postretirement benefit obligation	$337	$(297)

Schedule of Allocation of Plan Assets

The targeted allocation percentages of plan assets is shown below for fiscal year 2021 and the actual allocation as of July 31:

Asset Allocation	Target fiscal 2021	2020	2019
Cash and accrued income	2%	1%	—%
Fixed income	38%	68%	42%
Equity	60%	31%	58%

In anticipation of the Lump Sum Option payments we adjusted our asset allocation in fiscal year 2020 and plan to revert back to our historical asset allocations in fiscal year 2021.

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, 2020
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)
Asset Class
Cash and cash equivalents(a)	$	557	$	557	$	—
Equity securities(b):
U.S. companies	9,401		2,093		7,308
International companies	495		495		—
Equity securities - international mutual funds:
Developed market(c)	2,867		—		2,867
Emerging markets(d)	1,022		—		1,022
Commodities(e)	—		—		—
Fixed Income:
U.S. Treasuries	3,014		—		3,014
Debt securities(f)	10,131		—		10,131
Government sponsored entities(g)	5,131		—		5,131
Multi-strategy bond fund(h)	10,547		—		10,547
Money market fund(i)	486		—		486
Other(j)	1,683		—		1,683
Total	$	45,334	$	3,145	$	42,189

	Fair Value At July 31, 2019
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)
Asset Class
Cash and cash equivalents(a)	$	66	$	66	$	—
Equity securities(b):
U.S. companies	13,775		4,147		9,628
International companies	2,609		2,609		—
Equity securities - international mutual funds:
Developed market(c)	5,275		—		5,275
Emerging markets(d)	1,141		—		1,141
Commodities(e)	637		—		637
Fixed Income:
U.S. Treasuries	3,273		—		3,273
Debt securities(f)	8,103		—		8,103
Government sponsored entities(g)	2,087		—		2,087
Multi-strategy bond fund(h)	813		—		813
Money market fund(i)	557		—		557
Other(j)	2,389		—		2,389
Total	$	40,725	$	6,822	$	33,903

(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) These investments seek attractive total return by investing primarily in a diversified portfolio of commodity futures contracts and fixed income investments.

(f) This class includes bonds and loans of U.S. and non-U.S. corporate issuers from diverse industries and bonds of domestic and foreign municipalities.

(g) 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 $289,000 in our portfolio as of July 31, 2020 and $377,000 as of July 31, 2019.

(h) This class invests at least 80% of its net assets in bonds and other fixed income instruments issued by governmental or private-sector entities. More than 50% of its net assets are invested in mortgage-backed securities. The fund may invest up to 33 1/3% of its net assets in high-yield bonds, bank loans and assignments and credit default swaps.

(i) 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.

(j)

This class includes funds that use a number of other strategies, including arbitrage, to obtain long-term positive returns. The portfolio of instruments may include equities, debt securities, real estate properties, warrants, options, swaps, future contracts, forwards or other types of derivative instruments.