PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)

12 Months Ended

Jul. 31, 2019

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
	2019			2018			2019			2018
Change in benefit obligation:
Benefit obligation, beginning of year	$	54,267		$	53,742		$	2,667		$	2,925
Service cost	1,626			1,723			105			106
Interest cost	2,114			2,022			97			84
Actuarial loss (gain)	5,125			(1,811		)	97			(363		)
Benefits paid	(1,579		)	(1,409		)	(8		)	(85		)
Benefit obligation, end of year	61,553			54,267			2,958			2,667

Change in plan assets:
Fair value of plan assets, beginning of year	40,971			27,457			—			—
Actual return on plan assets	1,333			1,719			—			—
Employer contribution	—			13,204			8			85
Benefits paid	(1,579		)	(1,409		)	(8		)	(85		)
Fair value of plan assets, end of year	40,725			40,971			—			—
Funded status, recorded in Consolidated Balance Sheets	$	(20,828	)	$	(13,296	)	$	(2,958	)	$	(2,667	)

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
	2019			2018			2019			2018
Deferred income taxes	$	5,346		$	3,525		$	754		$	639
Other current liabilities	$	—		$	—		$	(65	)	$	(57	)
Other noncurrent liabilities	$	(20,828	)	$	(13,296	)	$	(2,893	)	$	(2,610	)
Accumulated other comprehensive loss – net of tax:
Net actuarial loss	$	14,731		$	10,301		$	184		$	110
Prior service cost (income)	$	—		$	2		$	(24	)	$	(29	)

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
	2019			2018			2019			2018
Service cost	$	1,626		$	1,723		$	105		$	106
Interest cost	2,114			2,022			97			84
Expected return on plan assets	(2,809		)	(2,168		)	—			—
Amortization of:
Prior service costs (income)	2			2			(6		)	(6		)
Other actuarial loss	771			1,274			—			—
Net periodic benefit cost	$	1,704		$	2,853		$	196		$	184

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
	2019			2018			2019		2018
Net actuarial loss (gain)	$	5,016		$	(1,034	)	$	73	$	(276	)
Amortization of:
Prior service (cost) income	(1		)	(2		)	5		1
Amortization of actuarial (loss) gain	(586		)	(901		)	—		5
Total recognized in other comprehensive loss (income)	$	4,429		$	(1,937	)	$	78	$	(270	)

Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year

The following table shows amortization amounts, net of tax, expected to be recognized in fiscal year 2020 in accumulated other comprehensive income (in thousands):



Amortization of:	Pension Benefits		Postretirement Health Benefits
Net actuarial loss	$	1,087	$	—
Prior service income	—		(5		)
Total to be recognized as other comprehensive loss (income)	$	1,087	$	(5	)

Schedule of Expected Benefit Payments

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



	Pension Benefits		Postretirement Health Benefits
2020	$	1,686	$	66
2021	$	1,763	$	98
2022	$	1,864	$	108
2023	$	1,902	$	147
2024	$	2,013	$	236
2025-29	$	13,969	$	1,412

Schedule of Assumptions Used

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



	Pension Benefits		Postretirement Health Benefits
	2019	2018	2019	2018
Discount rate for net periodic benefit costs	4.04%	3.75%	3.81%	3.26%
Discount rate for year-end obligations	3.35%	4.04%	2.93%	3.81%
Rate of increase in compensation levels for net periodic benefit costs	3.50%	3.50%	—	—
Rate of increase in compensation levels for year-end obligations	3.50%	3.50%	—	—
Long-term expected rate of return on assets	7.00%	7.00%	—	—

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

The following table reflects the effect on postretirement health costs and accruals in fiscal year 2019 of a one-percentage point change in the assumed health care cost trend (in thousands):



	One-Percentage Point Increase	One-Percentage Point Decrease
Effect on total service and interest cost	$26	$(22)
Effect on accumulated postretirement benefit obligation	$301	$(267)

Schedule of Allocation of Plan Assets

The targeted allocation percentages of plan assets is shown below for fiscal year 2020 and the actual allocation as of July 31:



Asset Allocation	Target fiscal 2020	2019	2018
Cash and accrued income	2%	—%	—%
Fixed income	38%	42%	36%
Equity	60%	58%	64%

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, 2019
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)
Asset Class
Cash and cash equivalents^(a)	$	66	$	66	$	—
Equity securities^(b):
U.S. companies	13,775		4,147		9,628
International companies	2,609		2,609		—
Equity securities - international mutual funds:
Developed market^(c)	5,275		—		5,275
Emerging markets^(d)	1,141		—		1,141
Commodities^(e)	637		—		637
Fixed Income:
U.S. Treasuries	3,273		—		3,273
Debt securities^(f)	8,103		—		8,103
Government sponsored entities^(g)	2,087		—		2,087
Multi-strategy bond fund^(h)	813		—		813
Money market fund⁽ⁱ⁾	557		—		557
Other^(j)	2,389		—		2,389
Total	$	40,725	$	6,822	$	33,903



	Fair Value At July 31, 2018
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)
Asset Class
Cash and cash equivalents^(a)	$	1,102	$	1,102	$	—
Equity securities^(b):
U.S. companies	14,253		5,519		8,734
International companies	3,157		3,157		—
Equity securities - international mutual funds:
Developed market^(c)	5,851		—		5,851
Emerging markets^(d)	905		—		905
Commodities^(e)	687		—		687
Fixed Income:
U.S. Treasuries	1,929		—		1,929
Debt securities(f)	8,325		—		8,325
Government sponsored entities^(g)	1,814		—		1,814
Money market fund⁽ⁱ⁾	1,567		—		1,567
Other^(j)	1,381		—		1,381
Total	$	40,971	$	9,778	$	31,193


(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 $377,000 in our portfolio as of July 31, 2019 and $443,000 as of July 31, 2018.


(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 50% of its net assets are invested in mortgage-backed securities. The fund may invest up to 33 1/3% of its net assets in high-yield bonds, bank loans and assignments and credit default swaps.

(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.