Employee Benefit Plans (Tables)

12 Months Ended

Jun. 30, 2016

The funded status of the Swiss Plan in the fiscal years ended June 30, 2016 and 2015 were as follows:

Year Ended June 30,	2016			2015
Change in projected benefit obligation:
Projected benefit obligation, beginning of period	$	42,575		$	39,390
Service cost		2,680			2,791
Interest cost		434			744
Participant contributions		1,046			965
Benefits received (paid)		1,567			(1,279	)
Actuarial loss on obligation		8,071			1,520
Currency translation adjustment		(2,279	)		(1,556	)
Projected benefit obligation, end of period	$	54,094		$	42,575
Change in plan assets:
Plan assets at fair value, beginning of period		32,509			31,965
Actual return on plan assets		431			207
Employer contributions		2,043			1,914
Participant contributions		1,046			965
Benefits received (paid)		1,567			(1,279	)
Currency translation adjustment		(1,739	)		(1,263	)
Plan assets at fair value, end of period	$	35,857		$	32,509
Amounts recognized in consolidated balance sheets:
Other non-current assets:
Deferred tax asset	$	3,857		$	2,129
Other non-current liabilities:
Underfunded pension liability	$	18,237			10,066
Amounts recognized in accumulated other comprehensive income, net of tax:
Pension adjustment	$	(7,031	)	$	(2,244	)
Accumulated benefit obligation, end of period	$	50,772		$	38,734

Net periodic pension cost associated with the Swiss Plan included the following components:

Year Ended June 30,	2016			2015
Service cost		2,680		$	2,791
Interest cost		434			744
Expected return on plan assets		(1,097	)		(1,106	)
Net period pension cost	$	2,017		$	2,429

The projected and accumulated benefit obligations for the Swiss Plan were calculated as of June 30, 2016 and 2015 using the following assumptions:

Year Ended June 30,	2016			2015
Discount rate		0.3	%		1.1	%
Salary increase rate		2.0	%		2.0	%
Expected return on plan assets		2.0	%		3.5	%
Expected average remaining working life (in years)	10.2				13.1

The Swiss Plan is legally separate from II-VI, as are the assets of the plan. As of June 30, 2016, the Swiss Plan’s asset allocation was as follows:

Estimated future benefit payments under the Swiss Plan are estimated to be as follows: