Employee Benefit Plans (Tables)

12 Months Ended

Jun. 30, 2017

The funded status of the Swiss Plan in the fiscal years ended June 30, 2017 and 2016 were as follows:

Year Ended June 30,	2017			2016
Change in projected benefit obligation:
Projected benefit obligation, beginning of period	$	54,094		$	42,575
Service cost		3,689			2,680
Interest cost		163			434
Participant contributions		1,262			1,046
Benefits received		1,743			1,567
Actuarial (gain) loss on obligation		(2,777	)		8,071
Currency translation adjustment		1,344			(2,279	)
Projected benefit obligation, end of period	$	59,518		$	54,094
Change in plan assets:
Plan assets at fair value, beginning of period		35,857			32,509
Actual return on plan assets		805			431
Employer contributions		2,432			2,043
Participant contributions		1,262			1,046
Benefits received		1,743			1,567
Currency translation adjustment		891			(1,739	)
Plan assets at fair value, end of period	$	42,990		$	35,857
Amounts recognized in consolidated balance sheets:
Other non-current assets:
Deferred tax asset	$	3,496		$	3,857
Other non-current liabilities:
Underfunded pension liability	$	16,528			18,237
Amounts recognized in accumulated other comprehensive income, net of tax:
Pension adjustment	$	2,514		$	(7,031	)
Accumulated benefit obligation, end of period	$	56,457		$	50,772

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

Year Ended June 30,	2017			2016
Service cost	$	3,689		$	2,680
Interest cost		163			434
Expected return on plan assets		(742	)		(1,097	)
Prior service cost		594			(234	)
Net period pension cost	$	3,704		$	1,783

The projected and accumulated benefit obligations for the Swiss Plan were calculated as of June 30, 2017 and 2016 using the following assumptions:

Year Ended June 30,	2017			2016
Discount rate		0.8	%		0.3	%
Salary increase rate		2.0	%		2.0	%
Expected return on plan assets		2.0	%		2.0	%
Expected average remaining working life (in years)	9.9				10.2

The Swiss Plan is legally separate from II-VI, as are the assets of the plan. As of June 30, 2017, the Swiss Plan’s asset allocation was as follows:

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