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PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)

12 Months Ended

Jul. 31, 2022

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
	2022		2021		2022		2021
Change in benefit obligation:
Benefit obligation, beginning of year	$	42,267	$	57,280	$	3,125	$	3,291
Service cost	—		—		123		139
Interest cost	1,068		1,168		58		51
Actuarial gain	(8,386)		(6,091)		(1,155)		(313)
Benefits paid	(1,208)		(1,603)		(32)		(43)

Settlements	—		(8,487)		—		—
Benefit obligation, end of year	33,741		42,267		2,119		3,125

Change in plan assets:
Fair value of plan assets, beginning of year	40,388		45,334		—		—
Actual return on plan assets	(4,191)		5,144		—		—
Employer contribution	—		—		32		43
Benefits paid	(1,208)		(1,603)		(32)		(43)
Settlements	—		(8,487)		—		—
Fair value of plan assets, end of year	34,989		40,388		—		—
Funded status, recorded in Consolidated Balance Sheets	$	1,248	$	(1,879)	$	(2,119)	$	(3,125)

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
	2022		2021		2022		2021
Deferred income taxes	$	(335)	$	504	$	544	$	792
Other current liabilities	$	—	$	—	$	(73)	$	(82)
Other noncurrent liabilities	$	1,248	$	(1,879)	$	(2,046)	$	(3,043)
Accumulated other comprehensive loss – net of tax:
Net actuarial loss (gain)	$	2,998	$	4,311	$	(756)	$	117

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
	2022		2021		2022		2021
Service cost	$	—	$	—	$	123	$	139
Interest cost	1,068		1,168		58		51
Expected return on plan assets	(2,586)		(2,816)		—		—
Amortization of:
Prior service income	—		—		(6)		(6)
Other actuarial loss	145		653		—		3
Settlement cost	—		631		—		—
Net periodic benefit (income) cost	$	(1,373)	$	(364)	$	175	$	187

Service cost is recorded in Other, net within Other Income (Expense) in the Consolidated Statements of Operations. As the pension plan is frozen, there was no service cost recorded in fiscal years 2021 or 2022.

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
	2022		2021		2022		2021
Net actuarial gain	$	(1,203)	$	(6,355)	$	(878)	$	(237)
Amortization of:
Prior service income	—		—		5		5
Amortization of actuarial loss	(110)		(496)		—		(3)
Curtailment/Settlement	$	—	$	(480)	$	—	$	—
Total recognized in other comprehensive income	$	(1,313)	$	(7,331)	$	(873)	$	(235)

Schedule of Expected Benefit Payments

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


	Pension Benefits		Postretirement Health Benefits
2023	$	1,226	$	73
2024	$	1,258	$	123
2025	$	1,342	$	154
2026	$	1,476	$	147
2027	$	1,596	$	157
2028-32	$	9,209	$	977

Schedule of Assumptions Used

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


	Pension Benefits		Postretirement Health Benefits
	2022	2021	2022	2021
Discount rate for net periodic benefit costs	2.57%	2.14%	2.10%	1.63%
Discount rate for year-end obligations	4.05%	2.57%	3.82%	2.10%
Rate of increase in compensation levels for net periodic benefit costs	—%	—%	—%	—%
Rate of increase in compensation levels for year-end obligations	—%	—%	—%	—%
Long-term expected rate of return on assets	6.50%	6.50%	—%	—%

Schedule of Allocation of Plan Assets

The targeted allocation percentages of plan assets is shown below for fiscal year 2023 and the actual allocation as of July 31:


Asset Allocation	Target fiscal 2023	2022	2021
Cash and accrued income	64%	—%	—%
Fixed income	36%	36%	38%
Equity	—%	64%	62%

In anticipation of a termination of the pension plan (See Note 13 of the Notes to Consolidated Financial Statements), we adjusted our asset allocation target for fiscal year 2023.

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, 2022
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)
Asset Class
Cash and cash equivalents(a)	$	51	$	51	$	—
Equity securities(b):
U.S. companies	15,389		10,387		5,002
International companies	521		521		—
Equity securities - international mutual funds:
Developed market(c)	4,025		923		3,102
Emerging markets(d)	1,517		1,149		368
Commodities(e)	1,137		1,137		—
Fixed Income:
U.S. Treasuries	3,019		904		2,115
Debt securities(f)	1,656		—		1,656

Government sponsored entities(g)	1,256		—		1,256
Multi-strategy bond fund(h)	5,079		—		5,079
Money market fund(i)	389		—		389
Other(j)	950		—		950
Total	$	34,989	$	15,072	$	19,917


	Fair Value At July 31, 2021
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)
Asset Class
Cash and cash equivalents(a)	$	16	$	16	$	—
Equity securities(b):
U.S. companies	15,241		4,290		10,951
International companies	806		806		—
Equity securities - international mutual funds:
Developed market(c)	5,622		—		5,622
Emerging markets(d)	2,389		—		2,389
Commodities(e)	829		—		829
Fixed Income:
U.S. Treasuries	1,543		—		1,543
Debt securities(f)	2,258		—		2,258

Government sponsored entities(g)	1,730		—		1,730
Multi-strategy bond fund(h)	8,257		—		8,257
Money market fund(i)	718		—		718
Other(j)	979		—		979
Total	$	40,388	$	5,112	$	35,276

(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 $114,000 in our portfolio as of July 31, 2022 and $176,000 as of July 31, 2021.

(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 30% of its net assets are invested in asset-backed and mortgage-backed securities. The fund may invest up to 20% of its net assets in securities below investment grade.

(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.