v3.26.1
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS
 12 Months Ended
Jun. 30, 2026
Retirement Benefits [Abstract]  
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS
Defined Benefit and Other Post-Retirement Benefit Plans
The Company has 45 pension and other post-retirement plans in multiple countries. All of our pension and other post-retirement plans are located outside of Canada and the U.S. The plans are primarily located in Germany, which, as of June 30, 2026, make up approximately 42% of the total net benefit pension obligations.
Our defined benefit pension plans include a mix of final salary type plans which provide for retirement, old age, disability and survivor’s benefits. Final salary type pension plans provide benefits to members either in the form of a lump sum payment or a guaranteed level of pension payable for life in the case of retirement, disability and death. Benefits under our final salary type plans are generally based on the participant’s age, compensation and years of service as well as the social security ceiling and other factors. Many of these plans are closed to new members. The net periodic costs of these plans are determined using the projected unit credit method and several actuarial assumptions, the most significant of which are the discount rate and estimated service costs.
Other post-retirement plans include statutory plans that offer termination, indemnity or other end of service benefits. Many of these plans were assumed through our acquisitions or are required by local regulatory and statutory requirements. All of our defined benefit and other post-retirement plans are included in the aggregate projected benefit obligation within Pension liability, net on our Consolidated Balance Sheets.
Plan assets that partially fund the defined benefit obligations are primarily classified within Level 1 and Level 2 of the fair value hierarchy and consist primarily of investments in equity and debt funds. Plan assets exclude insurance contracts with guaranteed interest rates classified as Level 3 available-for-sale financial assets of $27.3 million that do not meet the definition of a qualifying insurance policy, as they have not been pledged to the defined benefit and other post-retirement plans (see Note 16 “Fair Value Measurement” for more details).
The Company intends to only make any cash contributions to any defined benefit pension or post-retirement plans where required by the local regulatory or statutory requirements. For the year ended June 30, 2026, we made cash contributions of $13.0 million (year ended June 30, 2025 and 2024—$9.2 million and $4.2 million, respectively). For Fiscal 2027, we expect to make cash contributions of $9.1 million to our defined benefit plans.
The following table provides the details of the funded status of our defined benefit pension and other post-retirement plans:
As of June 30, 2026As of June 30, 2025
Plan assets$242,447 $237,823 
Projected benefit obligations(348,690)(374,690)
Funded status$(106,243)$(136,867)
The following table provides details of the net benefit obligations of our defined benefit pension and other post-retirement plans:
As of June 30, 2026As of June 30, 2025
Current portion of benefit obligation (1)
$5,770 $4,652 
Non-current portion of benefit obligation100,473 132,215 
Total $106,243 $136,867 
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(1) The current portion of the benefit obligation has been included within “Accrued salaries, incentives and commissions,” all within Accounts payable and accrued liabilities in the Consolidated Balance Sheets (see Note 10 “Accounts Payable and Accrued Liabilities” for more details).
The following tables provide the details of the change in the benefit obligation and plan assets for the periods indicated: 
As of June 30, 2026As of June 30, 2025
Benefit obligation—beginning of fiscal year$374,690 $349,427 
Service cost11,508 11,082 
Interest cost14,076 13,008 
Benefits paid(15,364)(11,161)
Employee contributions1,583 1,703 
Plan settlement(17,473)(7,440)
Plan amendment492 (2,948)
Curtailment (gain) loss458 (927)
Actuarial (gain) loss(15,605)(1,273)
Other events(467)(762)
Foreign exchange (gain) loss(5,208)23,981 
Benefit obligation—end of period348,690 374,690 
Less: Current portion5,770 4,652 
Non-current portion of benefit obligation$342,920 $370,038 
As of June 30, 2026As of June 30, 2025
Plan assets—beginning of fiscal year$237,823 $217,324 
Benefit payments from plan assets(15,364)(11,161)
Expected return on plan assets13,282 11,790 
Return on plan assets11,131 (1,304)
Company contributions12,973 9,217 
Employee contributions1,583 1,703 
Plan settlement(17,473)(7,440)
Foreign exchange (gain) loss(1,508)17,694 
Plan assets—end of period$242,447 $237,823 
The following table provides details of net pension expense for the periods indicated:
Year Ended June 30,
Pension expense:202620252024
Service cost$11,508 $11,082 $11,073 
Interest cost14,076 13,008 12,345 
Expected return of plan assets(13,282)(11,790)(11,400)
Amortization of actuarial (gain) losses489 1,306 643 
Settlement cost2,590 987 1,220 
Net pension expense$15,381 $14,593 $13,881 
Service-related net periodic pension costs are recorded within operating expense and all other non-service-related net periodic pension costs are classified under Interest and other related expense, net on our Consolidated Statements of Income.
The following table provides details of amounts recognized in Other Comprehensive Income:
Year Ended June 30,
202620252024
Net actuarial gain (loss)$24,810 $322 $1,598 
Amortization of actuarial loss489 1,306 643 
Settlement cost and plan amendments2,230 2,452 (193)
Curtailment(67)788 — 
Total recognized in other comprehensive income$27,462 $4,868 $2,048 
The following table provides details of the plan assets measured at fair value presented by asset category and fair value hierarchy for the periods indicated:
As of June 30, 2026As of June 30, 2025
Level 1Level 2Level 3Total Level 1Level 2Level 3Total
Cash$3,561 $— $— $3,561 $2,041 $— $— $2,041 
Debt funds83,456 19,452 — 102,908 91,908 8,251 — 100,159 
Equity funds104,961 467 — 105,428 94,844 6,559 — 101,403 
Real estate funds6,348 81 — 6,429 5,014 73 4,322 9,409 
Other17,900 4,697 1,524 24,121 18,092 4,574 2,145 24,811 
Total$216,226 $24,697 $1,524 $242,447 $211,899 $19,457 $6,467 $237,823 
The Company’s investment objective with respect to its defined benefit plan assets is to achieve an optimal rate of return over the long term while managing an appropriate level of risk to meet adequate future benefit obligations. Plan assets are managed by investment fiduciaries that determine the appropriate asset allocation, risk tolerance, fund diversification and investment strategies to achieve the long-term investment objectives of the plan assets.
In determining the fair value of the defined benefit obligations as of June 30, 2026 and 2025, we used the following weighted-average key assumptions:
Year Ended June 30,
20262025
Assumptions:
Salary increases3.4 %3.2 %
Pension increases2.0 %2.0 %
Discount rate4.3 %3.9 %
Expected return on plan assets5.9 %5.6 %
Normal retirement age (in years)64 64 
Anticipated pension payments under the defined benefit plans for the fiscal years indicated below are as follows:
Fiscal years ending June 30,
2027$20,379 
202818,453 
202918,643 
203019,969 
203121,061 
2032 to 2036115,997 
Total$214,502 
Defined Contribution Plans
The Company has various defined contribution retirement plans around the world covering many of its employees. Under these plans, employees can contribute a portion of their salary to the plan and the Company makes minimum non-elective contributions, discretionary contributions, and matching contributions, depending on the terms of the specific plan. The majority of the plans are primarily located in Canada, the U.S., the United Kingdom and Germany. For the year ended June 30, 2026, we made contributions of $57.4 million relating to the defined contribution retirement plans (year ended June 30, 2025 and 2024—$50.5 million and $54.7 million, respectively).