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Retirement Plans | 9 Months Ended
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Dec. 25, 2020
Retirement Benefits [Abstract] |
Retirement Plans | Retirement Plans The Company recognizes the funded status (i.e., the difference between the fair value of plan assets and the benefit obligations) of its defined benefit pension plans in its unaudited consolidated balance sheets with a corresponding adjustment to accumulated other comprehensive income (“AOCI”), net of tax. These amounts will continue to be recognized as a component of future net periodic benefit costs consistent with the Company’s past practice. Further, actuarial gains and losses and prior service costs that arise in future periods and are not recognized as net periodic benefit costs in the same periods will be recognized as a component of other comprehensive income. Those amounts will also be recognized as a component of future net periodic benefit costs consistent with the Company’s past practice. The Company uses a measurement date for its defined benefit pension plans and other postretirement benefit plans that is equivalent to its fiscal year-end. Plan Descriptions Non-U.S. Defined Benefit Plan The Company, through its wholly owned subsidiary, Allegro MicroSystems Philippines, Inc. (“AMPI”), has a defined benefit pension plan, which is a noncontributory plan that covers substantially all employees of the respective subsidiary. The plan’s assets are invested in common trust funds, bonds and other debt instruments and stocks. Effect on the unaudited statements of operations Expense related to the non-U.S. defined benefit plan was as follows:
| Three-Month Period Ended |  | Nine-Month Period Ended
| December 25, 2020 |  | December 27, 2019 |  | December 25, 2020 |  | December 27, 2019
Service cost | $ | 296 |  |  | $ | 242 |  |  | $ | 843 |  |  | $ | 717 |
Interest cost | 166 |  |  | 169 |  |  | 474 |  |  | 503 |
Expected return on plan assets | (79) |  |  | (83) |  |  | (231) |  |  | (247) |
Amortization of net transition asset | — |  |  | (4) |  |  | — |  |  | (10) |
Amortization of prior service cost | 2 |  |  | 2 |  |  | 6 |  |  | 6 |
Actuarial loss | 47 |  |  | 24 |  |  | 126 |  |  | 72 |
Net periodic pension expense | $ | 432 |  |  | $ | 350 |  |  | $ | 1,218 |  |  | $ | 1,041 |
Information on Plan Assets The table below sets forth the fair value of the entity’s plan assets as of December 25, 2020 and March 27, 2020, using the same three-level hierarchy of fair value inputs described in the significant accounting policies included in the audited consolidated financial statements as of March 27, 2020 and for the year then ended, which are included in the previously filed Registration Statement.
| Fair Value at December 25, 2020 |  | Level 1 |  | Level 2 |  | Level 3
Assets of non-U.S. defined benefit plan: |  |  |  |  |  |  |
Government securities | $ | 1,826 |  |  | $ | 1,826 |  |  | $ | — |  |  | $ | — |
Unit investment trust fund | 1,155 |  |  | — |  |  | 1,155 |  |  | — |
Loans | 562 |  |  | — |  |  | — |  |  | 562 |
Bonds | 1,193 |  |  | — |  |  | 1,193 |  |  | — |
Stocks and other investments | 2,353 |  |  | 1,205 |  |  | 1 |  |  | 1,147 |
Total | $ | 7,089 |  |  | $ | 3,031 |  |  | $ | 2,349 |  |  | $ | 1,709 |
| Fair Value at March 27, 2020 |  | Level 1 |  | Level 2 |  | Level 3
Assets of non-U.S. defined benefit plan: |  |  |  |  |  |  |
Government securities | $ | 1,260 |  |  | $ | 1,260 |  |  | $ | — |  |  | $ | — |
Unit investment trust fund | 897 |  |  | — |  |  | 897 |  |  | — |
Loans | 756 |  |  | — |  |  | — |  |  | 756 |
Bonds | 1,094 |  |  | — |  |  | 1,094 |  |  | — |
Stocks and other investments | 1,572 |  |  | 1,207 |  |  | 1 |  |  | 364 |
Total | $ | 5,579 |  |  | $ | 2,467 |  |  | $ | 1,992 |  |  | $ | 1,120 |
The following table shows the change in fair value of Level 3 plan assets for the nine-month period ended December 25, 2020:
| Level 3 Non-U.S. Defined Plan Assets
| Loans |  | Stocks
Balance at March 27, 2020 | $ | 756 |  |  | $ | 364 |
Additions during the year | 207 |  |  | — |
Redemptions during the year | (440) |  |  | — |
Revaluation of equity securities | — |  |  | 753 |
Change in foreign currency exchange rates | 39 |  |  | 30 |
Balance at December 25, 2020 | $ | 562 |  |  | $ | 1,147 |
The investments in the Company’s major benefit plans largely consist of low-cost, broad-market index funds to mitigate risks of concentration within the market sectors. In recent years, the Company’s investment policy has shifted toward a closer matching of the interest-rate sensitivity of the plan assets and liabilities. The appropriate mix of equity and bond investments is determined primarily through the use of detailed asset-liability modeling studies that look to balance the impact of changes in the discount rate against the need to provide asset growth to cover future service cost. The Company, through its wholly owned subsidiary, Allegro MicroSystems, LLC’s (“AML”), non-U.S. defined benefit plan, has added a greater proportion of fixed income securities with return characteristics that are more closely aligned with changes in liabilities caused by discount rate volatility. There are no significant restrictions on the amount or nature of the investments that may be acquired or held by the plans. During the three- and nine-month periods ended December 25, 2020, the Company contributed approximately $249 and $736 to its non-U.S. pension plan, respectively, and during the three- and nine-month periods ended December 27, 2019 the Company contributed approx imately $235 an d $698 to its non-U.S. pension plan, respectively. The Company expects to contribute approximately $943 to its non-U.S. pension plan in fiscal year 2021. Other Defined Benefit Plan In December 1993, the Company commenced with a rollover pension promise agreement (“Pension Promise”) to offer a then European employee an insured annuity upon their retirement at age 65. The employee was the only eligible participant of the Pension Promise. The impact associated with the expense and related other income with the Pension Promise was insignificant in fiscal years 2020 and 2019, respectively. The total values of the Pension Promise in the amounts of 827 an d 866 British Pounds Sterling at December 25, 2020 and March 27, 2020, respectively (approximate ly $1,112 and $975 at December 25, 2020 and March 27, 2020, respectively), were classified with other in other assets, net and accrued retirement in other long-term liabilities in the Company’s unaudited consolidated balance sheets. Defined Contribution Plan Eligible AML U.S. employees may contribute up to 50% of their pretax compensation to a defined contribution plan, subject to certain limitations, and AML may match, at its discretion, 100% of the participants’ pretax contributions, up to a maximum of 5% of their eligible compensation. Matching contributions by AML totaled approximatel y $1,112 and $3,181 for the three- and nine-month periods ended December 25, 2020, respectively, and approxim ately $833 and $2,840 for the three- and nine-month periods ended December 27, 2019, respectively. The Company, through its AML subsidiary, Allegro MicroSystems Europe, Ltd. (“Allegro Europe”), also has a defined contribution plan (the “AME Plan”) covering substantially all employees of Allegro Europe. Contributions to the AME Plan by the Company totaled approximately $207 and $592 for the three- and nine-month periods ended December 25, 2020, respectively, and approximately $201 and $560 for the three- and nine-month periods ended December 27, 2019, respectively. The Company has a 401(k) plan that covers all employees meeting certain service and age requirements. Employees are eligible to participate in the plan upon hire when the service and age requirements are met. Employees may contribute up to 35% of their compensation, subject to the maximum contribution allowed by the Internal Revenue Service. All employees are 100% vested in their contributions at the time of plan entry. As of January 1, 2008, and until January 1, 2015, the Company’s former wholly owned subsidiary, PSL, adopted and used a Safe Harbor provision, whereby PSL contributed 3% of compensation each pay period for all eligible employees meeting the Safe Harbor criteria. As of January 1, 2015, PSL may match, at its discretion, 100% of the employee’s contribution, up to a maximum of 5% of their eligible compensation. PSL’s matching contributions in the three- and nine-month periods ended December 27, 2019 was $376 and $1,310, respectively.

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