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Retirement Plans
 12 Months Ended
Mar. 25, 2022
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 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 consolidated statements of operations
Expense related to the non-U.S. defined benefit plan was as follows:
Fiscal Year Ended
March 25,
2022		March 26,
2021		March 27,
2020
Service cost$1,554 $1,454 $961 
Interest cost637 628 674 
Expected return on plan assets(304)(299)(331)
Amortization of net transition asset— (1)(14)
Amortization of prior service cost1 8 8 
Actuarial loss205 179 96 
Net periodic pension expense$2,093 $1,969 $1,394 
Changes in the benefit obligations and plan assets for the non-U.S. defined benefit plan were as follows:
Fiscal Year Ended
March 25, 2022March 26, 2021
Obligation and funded status of plan:
Benefit obligation at beginning of year$17,180 $12,595 
Service cost1,554 1,454 
Interest cost637 628 
Prior service cost(108)— 
Benefits paid(1,180)(633)
Actuarial loss(1,822)2,502 
Foreign currency exchange rate changes(1,181)634 
Benefit obligation at end of year$15,080 $17,180 
Change in plan assets:
Fair value of plan assets at beginning of year$7,644 $5,579 
Actual return on plan assets(235)1,421 
Employer contributions1,380 981 
Benefits paid(1,146)(595)
Foreign currency exchange rate changes(546)258 
Fair value of plan assets at end of year$7,097 $7,644 
Underfunded status at end of year$(7,983)$(9,536)
The underfunded plan amounts are recognized as a component of other long-term liabilities in the consolidated balance sheets.
The following table presents the obligations and asset information for the non-U.S. defined benefit plan that has a projected benefit obligation in excess of plan assets:
Fiscal Year Ended
March 25, 2022March 26, 2021
Projected benefit obligations$15,080 $17,180 
Plan assets7,097 7,644 
Accumulated benefit obligations9,216 10,353 
The amounts recorded in AOCI for the non-U.S. defined benefit plan for the fiscal years ended March 25, 2022 and March 26, 2021 are further detailed below:
Net Transition Obligation (Asset)Net Actuarial LossPrior Service CostsTotal
Balance, March 27, 2020, net of tax$224 $2,017 5 $2,246 
2021 change in AOCI for non-U.S. defined benefit plan74 2,242 (4)2,312 
Amounts in AOCI before tax298 4,259 1 4,558 
Less tax expense74 1,066 — 1,140 
Balance, March 26, 2021, net of tax224 3,193 1 3,418 
2022 change in AOCI for non-U.S. defined benefit plan20 (665)(104)(749)
Amounts in AOCI before tax244 2,528 (103)2,669 
Less tax expense61 632 (26)667 
Balance, March 25, 2022, net of tax$183 $1,896 $(77)$2,002 
There is no actuarial net gain or loss included in AOCI as of March 25, 2022 that is expected to be amortized into net periodic benefit cost over the next fiscal year.
As of March 25, 2022, the Company does not expect a return of plan assets during the next 12 months.
Assumptions and Investment Policies
Weighted-Average Assumptions Used to Determine Projected Benefit Obligation
March 25, 2022March 26, 2021
Non-U.S. assumed discount rate5.58 %4.00 %
Non-U.S. rate of compensation increase5.50 %5.00 %
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost
March 25, 2022March 26, 2021March 27, 2020
Non-U.S. assumed discount rate5.58 %4.00 %4.98 %
Non-U.S. expected long-term return on plan assets4.10 %4.20 %5.20 %
Non-U.S. rate of compensation increase5.50 %5.00 %5.00 %
Information on Plan Assets
The table below sets forth the fair value of the entity’s plan assets as of March 25, 2022 and March 26, 2021, using the same three-level hierarchy of fair value inputs described in Note 2, “Summary of Significant Accounting Policies”:
Fair Value at March 25,
2022		Level 1Level 2Level 3
Assets of non-U.S. defined benefit plan:
Government securities$1,920 $1,920 $— $— 
Unit investment trust fund1,165 — 1,165 — 
Loans553 — — 553 
Bonds676 — 676 — 
Stocks and other investments2,783 1,716 2 1,065 
Total$7,097 $3,636 $1,843 $1,618 
Fair Value at March 26,
2021		Level 1Level 2Level 3
Assets of non-U.S. defined benefit plan:
Government securities$1,646 $1,646 $— $— 
Unit investment trust fund1,221 — 1,221 — 
Loans584 — — 584 
Bonds1,112 — 1,112 — 
Stocks and other investments3,081 1,947 1 1,133 
Total$7,644 $3,593 $2,334 $1,717 
The following table shows the change in fair value of Level 3 plan assets for the fiscal years ended March 25, 2022, March 26, 2021 and March 27, 2020:
Level 3 Non-U.S. Defined
Plan Assets
LoansStocks
Balance at March 29, 2019$760 $353 
Additions during the year271 — 
Redemptions during the year(300)— 
Change in foreign currency exchange rates25 11 
Balance at March 27, 2020$756 $364 
Additions during the year325 — 
Redemptions during the year(531)— 
Revaluation of equity securities— 753 
Change in foreign currency exchange rates34 16 
Balance at March 26, 2021$584 $1,133 
Additions during the year308 — 
Redemptions during the year(289)— 
Revaluation of equity securities(5)13 
Change in foreign currency exchange rates(45)(81)
Balance at March 25, 2022$553 $1,065 
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”), has added a greater proportion of fixed income securities to the non-U.S. defined benefit plan 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.
Cash Flows
During the fiscal years ended March 25, 2022, March 26, 2021 and March 27, 2020, the Company contributed approximately $1,369, $986 and $943 to its non-U.S. pension plan, respectively. The Company expects to contribute approximately $1,546 to its non-U.S. pension plan in fiscal year 2023.
Estimated Future Benefit Payments
The following table projects the benefits expected to be paid to participants from the plans in each of the following fiscal years. The majority of the payments will be paid from plan assets, not company assets.
Pension
Benefits
2023$1,459 
2024953 
20251,004 
20261,014 
20271,383 
Thereafter8,885 
Total$14,698 
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 2022, 2021 and 2020. The total values of the Pension Promise in the amounts of 661 and 928 British Pounds Sterling at March 25, 2022 and March 26, 2021, respectively (approximately $875 and $1,272 at March 25, 2022 and March 26, 2021, respectively), were classified with other in other assets, net and accrued retirement in other long-term liabilities in the Company’s 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 $4,074, $3,687 and $3,792 for the fiscal years ended March 25, 2022, March 26, 2021 and March 27, 2020, 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 $1,065, $507 and $372 for the fiscal years ended March 25, 2022, March 26, 2021 and March 27, 2020, respectively.
The Company has a 401(k) plan that covers all U.S. 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 (“IRS”). 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.