Note 6 - Pension and Post-retirement Benefits

6 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Pension and Other Postretirement Benefits Disclosure [Text Block]

Note

6:

  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 U.K. plan was closed to new entrants in fiscal

2009.

  The Company has a postretirement medical and life insurance benefit plan for U.S. employees. The Company also has defined contribution plans.  

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 will be closed to new participants and current participants will no longer earn additional benefits after

December

31,

2016.

The amendment of the defined benefit pension plan triggered a pension curtailment which required a remeasurement of the Plan's obligation as of

December

31,

2016.

The remeasurement resulted in a decrease in the benefit obligation of approximately

$6.9

million primarily due to an increase in the discount rate from

3.77%

to

4.31%,

with an additional

$4.2

million decrease resulting from the impact of the curtailment. These reductions in the Plan’s benefit obligation were recorded as other comprehensive income, net of taxes.

Reconciliation of Funded Status of U.S. Defined Benefit Pension Plan as of December 31, 2016
Benefit obligation as of June 30, 2016	$	130,863
Service cost		1,405
Interest cost		2,457
Benefits paid		(2,374	)
Actuarial (gain)/loss		(8,443	)
Benefit obligation prior to curtailment		123,908
Effect of curtailment		(4,170	)
Benefit obligation as of December 31, 2016		119,738
Fair value of assets		80,989
Funded status as of December 31, 2016	$	(38,749	)

Net periodic benefit costs for all of the Company's defined benefit pension plans consist of the following (in thousands):

	Three Months Ended						Six Months Ended
	12/31/2016 (Unaudited)			12/31/2015			12/31/2016 (Unaudited)			12/31/2015
Service cost	$	614		$	715		$	1,405		$	1,429
Interest cost		1,533			1,759			3,085			3,527
Expected return on plan assets		(1,288	)		(1,585	)		(2,594	)		(3,179	)
Amortization of net loss		68			12			96			26
	$	927		$	901		$	1,992		$	1,803

Net periodic benefit costs for the Company's Postretirement Medical Plan consists of the following (in thousands):

	Three Months Ended						Six Months Ended
	12/31/2016 (Unaudited)			12/31/2015			12/31/2016 (Unaudited)			12/31/2015
Service cost	$	24		$	27		$	47		$	53
Interest cost		68			72			136			144
Amortization of prior service credit		(169	)		(196	)		(337	)		(391	)
Amortization of net loss		30			3			60			7
	$	(47	)	$	(94	)	$	(94	)	$	(187	)

For the

six

-month period ended

December

31,

2016,

the Company contributed

$1.9

million to the U.S. and

$0.5

to the UK pension plans. The Company estimates that it will contribute an additional

$3.0

million for the remainder of fiscal

2017.

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 the accumulated other comprehensive loss.