Note 13. Postemployment Benefits

9 Months Ended

Mar. 31, 2019

Postemployment Benefits

Our domestic employees participate in severance plans which provide severance benefits to eligible employees meeting the plans’ qualifications, primarily for involuntary termination without cause.

The components of net periodic postemployment benefit cost applicable to our severance plans were as follows:



	Three Months Ended						Nine Months Ended
	March 31						March 31
(Amounts in Thousands)	2019			2018			2019			2018
Service cost	$	126		$	132		$	379		$	398
Interest cost	23			20			70			62
Amortization of actuarial income	(100		)	(58		)	(302		)	(191		)
Net periodic benefit cost	$	49		$	94		$	147		$	269

The benefit cost in the above table includes only normal recurring levels of severance activity, as estimated using an actuarial method. Unusual or non-recurring severance actions are not estimable using actuarial methods and are expensed in accordance with the applicable U.S. GAAP.

During fiscal year 2019, we reported service cost in the Cost of Sales and Selling and Administrative Expenses lines of the Condensed Consolidated Statement of Income, interest cost in the Interest Expense line, and amortization of actuarial income in the Non-Operating income (expense), net line. During fiscal year 2018, all costs were recognized in the Cost of Sales and Selling and Administrative Expenses lines and were not segregated between the operating and non-operating sections of the Condensed Consolidated Statement of Income because the impact was immaterial.