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EMPLOYEE BENEFIT PLANS
 12 Months Ended
Jun. 30, 2014
Compensation and Retirement Disclosure [Abstract]  
Employee Benefit Plans
Savings and Retirement Plans-The Company’s Savings and Retirement Plans include a U.S. defined contribution plan for employees primarily in the U.S. and international savings plans for employees in certain other countries. In the U.S., hourly and salary based employees are eligible to participate in the plan after 90 days of service and the Company matches 100% of employee contributions up to 6.0% of employee compensation. In addition, the Company makes contributions to the plan on behalf of employees determined by their age and compensation.
During fiscal 2014, 2013 and 2012, the defined contribution expense for the U.S. defined contribution plan was $12.7, $15.0 and $13.3, respectively, and the defined contribution expense for the international savings plans was $10.6, $6.4 and $3.8, respectively.
Pension Plans-The Company sponsors contributory and noncontributory defined benefit pension plans covering certain U.S. and international employees primarily in Austria, France, Germany, the Netherlands, Spain and Switzerland. Participants in the U.S. defined benefit pension plan no longer accrue benefits. The Company measures defined benefit plan assets and obligations as of the date of the Company’s fiscal year-end. The Company’s defined benefit pension plans are funded primarily through contributions from the Company after consideration of recommendations from the pension plans’ independent actuaries and are funded at levels sufficient to comply with local requirements.
Other Post-Employment Benefit Plans-The Company provides certain post-employment health and life insurance benefits for certain employees and spouses principally in the U.S. and Canada if certain age and service requirements are met. Estimated benefits to be paid by the Company are expensed over the service period of each employee based on calculations performed by an independent actuary. In addition, the Company has a supplemental retirement plan and a termination benefit plan for selected salaried employees.
The aggregate reconciliation of the projected benefit obligations, plan assets, funded status and amounts recognized in the Company’s Consolidated Financial Statements related to the Company’s pension plans and other post-employment benefit plans is presented below:
 
Pension Plans
 
Other Post-Employment Benefits
 
Total
 
U.S.
 
International
 
 
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
Change in benefit obligation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation-July 1
$
72.8

 
$
76.0

 
$
166.6

 
$
148.0

 
$
77.7

 
$90.1
 
$
317.1

 
$314.1
Service cost
—

 
—

 
5.7

 
4.5

 
2.3

 
2.8
 
8.0

 
7.3
Interest cost
3.4

 
3.3

 
5.5

 
5.6

 
3.4

 
3.6
 
12.3

 
12.5
Plan participants’ contributions
—

 
—

 
1.7

 
1.7

 
—

 
—
 
1.7

 
1.7
Plan amendments
—

 
—

 
2.1

 
—

 
—

 
—
 
2.1

 
—
Benefits paid
(4.3
)
 
(4.2
)
 
(9.0
)
 
(7.0
)
 
(2.0
)
 
(1.7)
 
(15.3
)
 
(12.9)
Premiums paid
—

 
—

 
(0.9
)
 
(1.0
)
 
—

 
—
 
(0.9
)
 
(1.0)
Acquisition and transfer
—

 
—

 
1.3

 
1.7

 
—

 
—
 
1.3

 
1.7
Actuarial loss (gain)
8.9

 
(2.3
)
 
17.3

 
9.2

 
5.4

 
(17.2)
 
31.6

 
(10.3)
Effect of exchange rates
—

 
—

 
7.8

 
5.1

 
—

 
—
 
7.8

 
5.1
Other
—

 
—

 
(0.7
)
 
(1.2
)
 
(0.8
)
 
0.1
 
(1.5
)
 
(1.1)
Benefit obligation-June 30
$
80.8

 
$
72.8

 
$
197.4

 
$
166.6

 
$
86.0

 
$
77.7

 
$
364.2

 
$
317.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Change in plan assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets-July 1
$
36.9

 
$
34.8

 
$
30.6

 
$
25.5

 
$
—

 
$
—

 
$
67.5

 
$
60.3

Actual return on plan assets
4.3

 
2.7

 
1.8

 
0.8

 
—

 
—
 
6.1

 
3.5
Employer contributions
9.0

 
3.6

 
10.3

 
9.5

 
2.0

 
1.7
 
21.3

 
14.8
Plan participants’ contributions
—

 
—

 
1.7

 
1.7

 
—

 
—
 
1.7

 
1.7
Benefits paid
(4.3
)
 
(4.2
)
 
(9.0
)
 
(7.0
)
 
(2.0
)
 
(1.7)
 
(15.3
)
 
(12.9)
Premiums paid
—

 
—

 
(0.9
)
 
(1.0
)
 
—

 
—
 
(0.9
)
 
(1.0)
Acquisition and transfer
—

 
—

 
1.3

 
1.7

 
—

 
—
 
1.3

 
1.7
Effect of exchange rates
—

 
—

 
1.7

 
0.6

 
—

 
—
 
1.7

 
0.6
Other
—

 
—

 
—

 
(1.2
)
 
—

 
—
 
—

 
(1.2)
Fair value of plan assets-June 30
45.9

 
36.9

 
37.5

 
30.6

 
—

 
—
 
83.4

 
67.5
Funded status-June 30
$
(34.9
)
 
$
(35.9
)
 
$
(159.9
)
 
$
(136.0
)
 
$
(86.0
)
 
$
(77.7
)
 
$
(280.8
)

$
(249.6
)
With respect to the Company’s pension plans and other post-employment benefit plans, amounts recognized in the Company’s Consolidated Balance Sheets as of June 30, 2014 and 2013, are presented below:
 
Pension Plans
 
Other Post-Employment Benefits
 
Total
 
U.S.
 
International
 
 
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
Noncurrent assets
$
—

 
$
—

 
$
—

 
$
0.1

 
$
—

 
$
—

 
$
—

 
$
0.1

Current liabilities
(1.5
)
 
(1.5
)
 
(5.0
)
 
(5.1
)
 
(1.8
)
 
(1.8
)
 
(8.3
)
 
(8.4
)
Noncurrent liabilities
(33.4
)
 
(34.4
)
 
(154.9
)
 
(131.0
)
 
(84.2
)
 
(75.9
)
 
(272.5
)
 
(241.3
)
Funded Status
(34.9
)
 
(35.9
)
 
(159.9
)
 
(136.0
)
 
(86.0
)
 
(77.7
)
 
(280.8
)
 
(249.6
)
AOC(L)/I
(17.4
)
 
(11.3
)
 
(56.1
)
 
(37.6
)
 
(0.8
)
 
5.7

 
(74.3
)
 
(43.2
)
Net amount recognized
$
(52.3
)
 
$(47.2)
 
$
(216.0
)
 
$(173.6)
 
$
(86.8
)
 
$
(72.0
)
 
$
(355.1
)
 
$
(292.8
)

The accumulated benefit obligation for the U.S. defined benefit pension plans was $80.8 and $72.8 as of June 30, 2014 and 2013, respectively. The accumulated benefit obligation for international defined benefit pension plans was $189.3 and $160.4 as of June 30, 2014 and 2013, respectively.
Pension plans with accumulated benefit obligations in excess of plan assets and projected benefit obligations in excess of plan assets are presented below:
 
Pension plans with accumulated benefit obligations in excess of plan assets
 
Pension plans with projected benefit obligations in excess of plan assets
 
 
 
U.S.
 
International
 
U.S.
 
International
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
Projected benefit obligation
$
80.8

 
$
72.8

 
$
195.7

 
$
164.2

 
$
80.8

 
$
72.8

 
$
197.6

 
$
164.5

Accumulated benefit obligation
$
80.8

 
$
72.8

 
$
187.7

 
$
158.2

 
$
80.8

 
$
72.8

 
$
189.3

 
$
158.2

Fair value of plan assets
$
45.9

 
$
36.9

 
$
35.6

 
$
28.0

 
$
45.9

 
$
36.9

 
$
37.5

 
$
28.3


Net Periodic Benefit Cost
The components of net periodic benefit cost for pension plans and other post-employment benefit plans recognized in the Consolidated Statements of Operations are presented below:
 
Year Ended June 30,
 
Pension Plans
 
Other Post-
Employment Benefits
 
 
 
 
 
U.S.
 
International
 
 
Total
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
Service cost
$
—

 
$
—

 
$
—

 
$
5.7

 
$
4.5

 
$
3.6

 
$
2.3

 
$
2.8

 
$
3.2

 
$
8.0

 
$
7.3

 
$
6.8

Interest cost
3.4

 
3.3

 
3.6

 
5.5

 
5.6

 
6.5

 
3.4

 
3.6

 
4.2

 
12.3

 
12.5

 
14.3

Expected return on plan assets
(2.5
)
 
(2.3
)
 
(2.3
)
 
(1.2
)
 
(1.0
)
 
(0.9
)
 
—

 
—

 
—

 
(3.7
)
 
(3.3
)
 
(3.2
)
Amortization of prior service credit (cost)
—

 
—

 
—

 
0.2

 
0.1

 
0.1

 
(0.2
)
 
(0.2
)
 
(0.3
)
 
—

 
(0.1
)
 
(0.2
)
Amortization of net loss (gain)
1.0

 
2.9

 
(0.1
)
 
2.1

 
1.3

 
0.1

 
(1.1
)
 
—

 
(0.1
)
 
2.0

 
4.2

 
(0.1
)
Other
—

 
—

 
—

 
(0.7
)
 
(0.1
)
 
—

 
—

 
—

 
—

 
(0.7
)
 
(0.1
)
 
—

Net periodic benefit cost
$
1.9

 
$
3.9

 
$
1.2

 
$
11.6

 
$
10.4

 
$
9.4

 
$
4.4

 
$
6.2

 
$
7.0

 
$
17.9

 
$
20.5

 
$
17.6


Pre-tax amounts recognized in AOC(L)/I, which have not yet been recognized as a component of net periodic benefit cost are presented below:
 
Pension Plans
 
Other Post-Employment Benefits
 
 
 
 
 
U.S.
 
International
 
 
Total
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
Net actuarial (loss) gain
$
(17.4
)
 
$
(11.3
)
 
$
(52.9
)
 
$
(36.5
)
 
$
(1.0
)
 
$
5.3

 
$
(71.3
)
 
$
(42.5
)
Prior service (cost) credit
—

 
—

 
(3.2
)
 
(1.1
)
 
0.2

 
0.4

 
(3.0
)
 
(0.7
)
Total recognized in AOC(L)/I
$
(17.4
)
 
$
(11.3
)
 
$
(56.1
)
 
$
(37.6
)
 
$
(0.8
)
 
$
5.7

 
$
(74.3
)
 
$
(43.2
)
Changes in plan assets and benefit obligations recognized in OCI/(L) during the fiscal year are presented below:
 
Pension Plans
 
Other Post-Employment Benefits
 
 
 
 
 
U.S.
 
International
 
 
Total
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
Net actuarial (loss) gain
$
(7.1
)
 
$
2.7

 
$
(16.7
)
 
$
(9.4
)
 
$
(5.4
)
 
$
17.2

 
$
(29.2
)
 
$
10.5

Amortization of prior service cost (credit)
—

 
—

 
0.2

 
0.1

 
(0.2
)
 
(0.2
)
 
—

 
(0.1
)
Recognized net actuarial loss (gain)
1.0

 
2.9

 
2.1

 
1.2

 
(1.1
)
 
—

 
2.0

 
4.1

Prior service cost
—

 
—

 
(2.1
)
 
—

 
—

 
—

 
(2.1
)
 
—

Effect of exchange rates
—

 
—

 
(2.0
)
 
(1.0
)
 
0.2

 
—

 
(1.8
)
 
(1.0
)
Total recognized in OC(L)/I
$
(6.1
)
 
$
5.6

 
$
(18.5
)
 
$
(9.1
)
 
$
(6.5
)
 
$
17.0

 
$
(31.1
)
 
$
13.5


Amounts in AOC(L)/I expected to be amortized as components of net periodic benefit cost during fiscal 2015 are presented below:
 
Pension Plans
 
Other Post-Employment Benefits
 
Total
 
U.S
 
International
 
 
Prior service cost
$
—

 
$
(0.3
)
 
$
(0.2
)
 
$
(0.5
)
Net loss
(2.1
)
 
(3.6
)
 
—

 
(5.7
)
 
$
(2.1
)
 
$
(3.9
)
 
$
(0.2
)
 
$
(6.2
)

Pension and Other Post-Employment Benefit Assumptions
The weighted-average assumptions used to determine the Company’s projected benefit obligation above are presented below:
 
Pension Plans
 
Other Post-Employment Benefits
 
U.S
 
International
 
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
Discount rates
3.1%-4.4%
 
3.6%-5.0%
 
1.8%-3.2%
 
2.3%-3.8%
 
4.8%
 
5.4%
Future compensation growth rates
N/A
 
N/A
 
2.0%-2.5%
 
2.0%-2.5%
 
N/A
 
N/A
The weighted-average assumptions used to determine the Company’s net periodic benefit cost in fiscal 2014, 2013 and 2012 are presented below:
 
Pension Plans
 
Other Post-
Employment Benefits
 
U.S.
 
International
 
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
Discount rates
3.6%-5.0%

 
3.4%-4.6%
 
4.3%-5.6%
 
2.3%-3.8%
 
2.2%-4.5%
 
2.7%-6.1%
 
5.4
%
 
4.9%
 
5.9%
Future compensation growth rates
N/A

 
N/A
 
N/A
 
2.0%-2.5%
 
2.5%-3.0%
 
2.0%-3.0%
 
N/A

 
N/A
 
N/A
Expected long-term rates of return on plan assets
6.5
%
 
6.5%
 
6.5%
 
3.3%-4.3%
 
3.3%-4.3%
 
3.3%-5.5%
 
N/A

 
N/A
 
N/A

The health care cost trend rate assumptions have a significant effect on the amounts reported.
 
2014
 
2013
 
2012
Health care cost trend rate assumed for next year
6.3%-6.9%
 
7.1%-8.0%
 
7.5%-8.5%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)
5%
 
5%
 
5%
Year that the rate reaches the ultimate trend rate
2021-2023
 
2018-2019
 
2018-2019

A one-percentage point change in assumed health care cost trend rates would have the following effects:
 
One Percentage Point Increase
 
One Percentage Point Decrease
Effect on total service cost and interest cost
 
 
$
1.0

 
 
 
 
 
$
(0.8
)
 
 
Effect on post-employment benefit obligation
 
 
17.1

 
 
 
 
 
(13.3
)
 
 

Pension Plan Investment Policy
The Company’s investment policies and strategies for plan assets are to achieve the greatest return consistent with the fiduciary character of the plan and to maintain a level of liquidity that is sufficient to meet the need for timely payment of benefits. The goals of the investment managers include minimizing risk and achieving growth in principal value so that the purchasing power of such value is maintained with respect to the rate of inflation.
The pension plan’s return on assets is based on management’s expectations of long-term average rates of return to be achieved by the underlying investment portfolios. In establishing this assumption, management considers historical and expected returns for the assets in which the plan is invested, as well as current economic and market conditions.
The asset allocation decision includes consideration of future retirements, lump-sum elections, growth in the number of participants, company contributions and cash flow. These actual characteristics of the plan place certain demands upon the level, risk and required growth of trust assets. Actual asset allocation is regularly reviewed and periodically rebalanced to the strategic allocation when considered appropriate.
The target and weighted-average asset allocations for the Company’s U.S. pension plans as of June 30, 2014 and 2013, by asset category are presented below:
 
 
 
% of Plan Assets at Year Ended
 
 
 
 
Target
 
2014
 
2013
Equity securities
45
%
 
44
%
 
44
%
Fixed income securities
55
%
 
53
%
 
53
%
Cash and other investments
—
%
 
3
%
 
3
%

The following is a description of the valuation methodologies used for plan assets measured at fair value:
Equity securities (domestic and international)-The fair values reflect the closing price reported on a major market where the individual securities are traded. These investments are classified within Level 1 of the valuation hierarchy.
U.S. government and government agencies fixed income securities-When quoted prices are available in an active market, the investments are classified as Level 1. When quoted market prices are not available in an active market, these investments are classified as Level 2.
Corporate securities-The fair values are based on a compilation of primarily observable market information or a broker quote in a non-active market. These investments are primarily classified within Level 2 of the valuation hierarchy.
Cash and cash equivalents-The carrying amount approximates fair value, primarily because of the short maturity of cash equivalent instruments. These investments are classified within Level 1 of the valuation hierarchy.
Insurance contracts-These instruments are issued by insurance companies. Insurance contracts are generally classified as Level 3 as there are neither quoted prices nor other observable inputs for pricing.
Fair Value of Plan Assets
The U.S. and international pension plan assets that the Company measures at fair value on a recurring basis, based on the fair value hierarchy as described in Note 2, as of June 30, 2014 and 2013 are presented below:
 
Level 1
 
Level 2
 
Level 3
 
Total
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Domestic equity securities
$
15.2

 
$
13.0

 
$
—

 
$
—

 
$
—

 
$
—

 
$
15.2

 
$
13.0

  International equity securities
4.7

 
3.3

 
—

 
—

 
—

 
—

 
4.7

 
3.3

Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  U.S. Government and government agencies
5.7

 
4.3

 
10.8

 
9.0

 
—

 
—

 
16.5

 
13.3

  Corporate securities
—

 
—

 
8.3

 
6.1

 
—

 
—

 
8.3

 
6.1

Other:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Cash and cash equivalents
1.2

 
1.2

 
—

 
—

 
—

 
—

 
1.2

 
1.2

  Insurance contracts
—

 
—

 
—

 
—

 
37.5

 
30.6

 
37.5

 
30.6

Total pension plan assets at fair value-June 30
$
26.8

 
$
21.8

 
$
19.1

 
$
15.1

 
$
37.5

 
$
30.6

 
$
83.4

 
$
67.5


The Company sponsors a qualified defined benefit pension plan for all eligible Swiss employees. Retirement benefits are provided based on employees’ years of service and earnings, or in accordance with applicable employee regulations. Consistent with typical Swiss practice, the pension plan is funded through a guaranteed insurance contract with an insurance company (“IC”). The IC is responsible for the investment strategy of the insurance premiums that the Company submits and does not hold individual assets per participating employer. Assets are invested in accordance with the IC’s own strategies and risk assessments. Under the terms of the contract, the interest rate as well as the capital value is guaranteed for each participant, with the IC assuming any risk to the value of the underlying assets. The IC is a member of a security fund, whose purpose is to cover any shortfall in the event they are not able to fulfill its contractual agreements. The plan assets of the Swiss plan are included in the Level 3 valuation.
The benefits of the pension plans in the Netherlands are fully insured with an IC which meets all the benefit payments directly to the beneficiaries as they fall due. The contracts included in the Level 3 valuation reflect the expected benefit payments, discounted using the same rate used to determine the projected benefit obligation.
In Spain, the plans’ assets represent the computed value of the insurance contracts owned by the Company. These insurance contracts represent a portion of the IC’s general investments linked to the Company. The value of these contracts is determined by the IC. However, a minimum of 4.0% rate of return is stipulated. Upon retirement, the Company calculates the annuity due to a given participant and to the extent that the amounts linked to that specific employee are not sufficient, the Company funds the difference. In the event that a participant terminates employment prior to retirement, the value for that individual reverts back to the Company. The plan assets of the Spanish plan are included in the Level 3 valuation.
The reconciliations of Level 3 plan assets measured at fair value in fiscal 2014 and 2013 are presented below:
 
June 30,
2014
 
June 30,
2013
Insurance contract:
 
 
 
Fair value-July 1
$
30.6

 
$
25.5

Return on plan assets
1.8

 
0.8

Purchases, sales and settlements, net
3.4

 
3.7

Effect of exchange rates
1.7

 
0.6

Fair value-June 30
$
37.5

 
$
30.6


Contributions
The Company expects to contribute approximately $8.2, $11.5, and $1.7 to its U.S. and international pension plans and other post-employment benefit plans, respectively, during fiscal 2015.
Estimated Future Benefit Payments
Expected benefit payments, which reflect expected future service, as appropriate, are presented below:
 
Pension Plans
 
Other Post-Employment Benefits
 
Total
Fiscal Year Ending June 30
U.S
 
International
 
 
2015
$
4.5

 
$
9.0

 
 
$
2.0

 
 
$
15.5

2016
4.5

 
8.6

 
 
2.2

 
 
15.3

2017
5.0

 
8.7

 
 
2.5

 
 
16.2

2018
5.1

 
8.8

 
 
2.8

 
 
16.7

2019
5.1

 
9.3

 
 
3.1

 
 
17.5

2020 - 2023
25.0

 
49.7

 
 
20.8

 
 
95.5