XML 27 R17.htm IDEA: XBRL DOCUMENT v3.22.4
Pension and Post-retirement Benefits
 6 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Pension and Post-retirement Benefits Pension and Post-retirement Benefits
The Company has two defined benefit pension plans, one for U.S. employees and another for U.K. employees. The Company has a postretirement medical insurance benefit plan for U.S. employees. The Company also has defined contribution plans.
The U.K. defined benefit plan was closed to new entrants in fiscal 2009.
On December 21, 2016, the Company amended the U.S. defined benefit pension plan to freeze benefit accruals effective December 31, 2016. Consequently, the Plan is closed to new participants and current participants will no longer earn additional benefits after December 31, 2016.
Net periodic benefit costs for the Company's defined benefit pension plans are located in Other (expense), in the Condensed Consolidated Statements of Operations except (in the table below) for service cost. Service cost are in cost of sales and selling, general and administrative expenses, allocated based on headcount. Net periodic benefit cost and expected return consist of the following (in thousands):
Three Months EndedSix Months Ended
12/31/202212/31/202112/31/202212/31/2021
Interest cost1,408 1,031 2,890 2,064 
Expected return on plan assets(960)(1,098)(1,992)(2,198)
Amortization of net loss10 15 20 28 
Expected net cost (benefit) total$458 $(52)$918 $(106)
Net periodic benefit costs (credits) for the Company's Postretirement Medical Plan consists of the following (in thousands):
Three Months EndedSix Months Ended
12/31/202212/31/202112/31/202212/31/2021
Service cost$5 $9 $11 $18 
Interest cost17 13 35 25 
Amortization of prior service credit(368)(369)(737)(737)
Amortization of net loss45 47 89 94 
Total net (benefit)$(301)$(300)$(602)$(600)
For the three months and six months ended December 31, 2022, the Company contributed in the U.S. $0.7 million. In the UK pension plans the Company contributed $0.2 million and $0.4 million for the same periods. Based upon the actuarial valuations performed on the Company’s defined benefit plans as of June 30, 2022, the contribution for fiscal 2023 for the U.S. plans would require a contribution of $1.4 million and the U.K. plan would require $0.8 million. However, as a result of the American Rescue Plan Act of 2021, the minimum required company contribution for the U.S. Plan was reduced. The Company believes that government regulation is only a small part of deciding the pension funding, and as a result, may contribute more than the federal requirement. The Company contributed $2.5 million in total during fiscal year 2022, with $1.5 million in the U.S. and $1.0 million in the U.K. The Company continues evaluating the U.S. future contribution on a quarterly basis. The Company currently believes contributions in fiscal year 2023 will be similar to the prior year.
The Company’s pension plans use fair value as the market-related value of plan assets and recognize net actuarial gains or losses in excess of ten percent (10%) of the greater of the market-related value of plan assets or of the plans’ projected benefit obligation in net periodic (benefit) cost as of the plan measurement date. Net actuarial gains or losses that are less than 10% of the thresholds noted above are accounted for as part of accumulated other comprehensive loss.