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Pension Benefits
 12 Months Ended
Jun. 30, 2023
Defined Benefit Pension Plans [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Pension Benefits Pension Benefits
Defined Benefit Pension Plans
We sponsor multiple defined benefit pension plans that covered certain workers under collective bargaining contracts. However, as a result of prior-years’ restructuring activities, for all periods presented, we no longer have any active employees continuing to accrue service cost or otherwise eligible to receive plan benefits. Benefits being paid under the plans are primarily based on negotiated rates and years of service. We contribute to these plans at least the minimum amount required by regulation.
At the end of the year, we discount our plan liabilities using an assumed discount rate. In estimating this rate, we, along with our third-party actuaries, review the timing of future benefit payments, bond indices, yield curve analysis results and the past history of discount rates.
The actuarial present value of benefit obligations summarized below was based on the following assumption:
20232022
Weighted-average assumption as of June 30
Discount rate5.18 %4.52 %
The net periodic benefit costs were determined utilizing the following beginning-of-the-year assumptions:
202320222021
Discount rate4.52 %2.58 %2.49 %
Expected long-term return on plan assets5.00 %5.00 %5.00 %
In determining the long-term expected return on plan assets, we consider our related investment guidelines, our expectations of long-term rates of return by asset category, our target asset allocation weighting and historical rates of return and volatility for equity and fixed income investments. The investment strategy for plan assets is to control and manage investment risk through diversification among asset classes, investment managers/funds and investment styles. The plans’
investment guidelines have been designed to meet the intended objective that plan assets earn at least nominal returns equal to or more than the plans’ liability growth rate. In consideration of the current average age of the plans’ participants, the investment guidelines are based upon an investment horizon of at least 10 years. In 2021, we completed an evaluation of the plans’ asset allocation and liabilities with assistance from an independent outside consultant. As a result, with the plans well-funded and no active employees continuing to accrue service cost or otherwise eligible to receive plan benefits, we reallocated the plan assets to better match the plan liabilities. Accordingly, we allocated a higher percentage of the plan assets to long-duration fixed income investments, thereby reducing equity exposure risk and mitigating the unfavorable impacts of interest rate volatility. This reallocation resulted in a reduction to the expected long-term return on plan assets.
The target and actual asset allocations for our plans at June 30 by asset category were as follows:
 Target Percentage
of Plan Assets at
June 30		Actual Percentage of Plan Assets
 202320232022
Equity securities
20%-80%
27 25 
Fixed income, including cash
20%-80%
73 75 
Total100 %100 %
Our target asset allocations are maintained through ongoing review and periodic rebalancing of equity and fixed income investments with assistance from an independent outside investment consultant. Also, the plan assets are diversified among asset classes, asset managers or funds and investment styles to avoid concentrations of risk. The higher allocation of plan assets to fixed income investments reflects the decision to better match the invested assets with the plans’ liabilities and the fact that the plans are well-funded with no active employees continuing to accrue service cost or otherwise eligible to receive plan benefits. We continue to allocate a modest amount of plan assets to cash to cover near-term expenses.
We categorize our plan assets within a three-level fair value hierarchy, as previously defined in Note 2. The following table summarizes the fair values and levels, within the fair value hierarchy, for our plan assets at June 30:
 June 30, 2023
Asset CategoryLevel 1Level 2Level 3Total
Cash and equivalents$997 $— $— $997 
Money market funds702 — — 702 
Mutual funds fixed income19,353 — — 19,353 
Mutual funds equity7,724 — — 7,724 
Total$28,776 $— $— $28,776 
 June 30, 2022
Asset CategoryLevel 1Level 2Level 3Total
Cash and equivalents$734 $— $— $734 
Money market funds795 — — 795 
Mutual funds fixed income20,628 — — 20,628 
Mutual funds equity7,454 — — 7,454 
Total$29,611 $— $— $29,611 
The plan assets classified at Level 1 include money market funds and mutual funds. Quoted market prices in active markets for identical assets are available for investments in this category.
Relevant information with respect to our pension benefits as of June 30 can be summarized as follows:
20232022
Change in benefit obligation
Benefit obligation at beginning of year$31,043 $37,439 
Interest cost1,344 935 
Actuarial gain(2,047)(5,130)
Benefits paid(2,388)(2,201)
Benefit obligation at end of year$27,952 $31,043 
 20232022
Change in plan assets
Fair value of plan assets at beginning of year$29,611 $39,419 
Actual return on plan assets896 (7,607)
Employer contributions657 — 
Benefits paid(2,388)(2,201)
Fair value of plan assets at end of year$28,776 $29,611 
 20232022
Funded status - net prepaid (accrued) benefit cost$824 $(1,432)
 20232022
Amounts recognized in the Consolidated Balance Sheets consist of
Prepaid benefit cost (Other Noncurrent Assets)$1,286 $381 
Accrued benefit liability (Other Noncurrent Liabilities)(462)(1,813)
Net amount recognized$824 $(1,432)
 20232022
Accumulated benefit obligation$27,952 $31,043 
The following table discloses, in the aggregate, those plans with benefit obligations in excess of the fair value of plan assets at the June 30 measurement date:
20232022
Benefit obligations$5,108 $23,836 
Fair value of plan assets at end of year$4,646 $22,023 
Amounts recognized in accumulated other comprehensive loss at June 30 were as follows:
20232022
Net actuarial loss$13,846 $16,098 
Income taxes(3,236)(3,762)
Total$10,610 $12,336 
The following table summarizes the components of net periodic benefit cost (income) for our pension plans at June 30:
202320222021
Components of net periodic benefit cost (income)
Interest cost$1,344 $935 $965 
Expected return on plan assets(1,416)(1,911)(1,779)
Amortization of unrecognized net loss725 428 692 
Net periodic benefit cost (income)$653 $(548)$(122)
We have not yet finalized our anticipated funding level for 2024, but based on initial estimates, we do not expect our 2024 contributions to our pension plans to be material.
Benefit payments estimated for future years are as follows:
2024$2,550 
2025$2,498 
2026$2,429 
2027$2,364 
2028$2,281 
2029 - 2033$10,393