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Retirement Plans | 9 Months Ended
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Dec. 23, 2022
Retirement Benefits [Abstract] |
Retirement Plans | Retirement PlansThe 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 condensed consolidated balance sheets with a corresponding adjustment to accumulated other comprehensive income, 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-United States (“U.S.”) defined benefit plan was as follows:
| Three-Month Period Ended |  | Nine-Month Period Ended
| December 23, 2022 |  | December 24, 2021 |  | December 23, 2022 |  | December 24, 2021
Service cost | $ | 297 |  |  | $ | 365 |  |  | $ | 932 |  |  | $ | 1,119 |
Interest cost | 179 |  |  | 158 |  |  | 561 |  |  | 485 |
Expected return on plan assets | (71) |  |  | (75) |  |  | (222) |  |  | (230) |
Amortization of prior service cost | (2) |  |  | 1 |  |  | (6) |  |  | 1 |
Actuarial loss | 20 |  |  | 51 |  |  | 60 |  |  | 156 |
Net periodic pension expense | $ | 423 |  |  | $ | 500 |  |  | $ | 1,325 |  |  | $ | 1,531 |
Information on Plan Assets The table below sets forth the fair value of the non-U.S. defined benefit plan’s assets as of December 23, 2022 and March 25, 2022, using the same three-level hierarchy of fair value inputs described in the significant accounting policies included in the Company’s 2022 Annual Report.
| Fair Value at December 23, 2022 |  | Level 1 |  | Level 2 |  | Level 3
Assets of non-U.S. defined benefit plan: |  |  |  |  |  |  |
Government securities | $ | 2,104 |  |  | $ | 2,104 |  |  | $ | — |  |  | $ | — |
Unit investment trust fund | 1,180 |  |  | — |  |  | 1,180 |  |  | — |
Loans | 578 |  |  | — |  |  | — |  |  | 578 |
Bonds | 677 |  |  | — |  |  | 677 |  |  | — |
Stocks and other investments | 2,414 |  |  | 1,323 |  |  | 3 |  |  | 1,088 |
Total | $ | 6,953 |  |  | $ | 3,427 |  |  | $ | 1,860 |  |  | $ | 1,666 |
| Fair Value at March 25, 2022 |  | Level 1 |  | Level 2 |  | Level 3
Assets of non-U.S. defined benefit plan: |  |  |  |  |  |  |
Government securities | $ | 1,920 |  |  | $ | 1,920 |  |  | $ | — |  |  | $ | — |
Unit investment trust fund | 1,165 |  |  | — |  |  | 1,165 |  |  | — |
Loans | 553 |  |  | — |  |  | — |  |  | 553 |
Bonds | 676 |  |  | — |  |  | 676 |  |  | — |
Stocks and other investments | 2,783 |  |  | 1,716 |  |  | 2 |  |  | 1,065 |
Total | $ | 7,097 |  |  | $ | 3,636 |  |  | $ | 1,843 |  |  | $ | 1,618 |
The following table shows the change in fair value of Level 3 plan assets for the nine-month periods ended December 23, 2022 and December 24, 2021:
| Level 3 Non-U.S. Defined Benefit Plan Assets
| Loans |  | Stocks
Balance at March 25, 2022 | $ | 553 |  |  | $ | 1,065 |
Additions during the year | 328 |  |  | — |
Redemptions during the year | (280) |  |  | — |
Revaluation of equity securities | 4 |  |  | 75 |
Change in foreign currency exchange rates | (27) |  |  | (52) |
Balance at December 23, 2022 | $ | 578 |  |  | $ | 1,088 |
Balance at March 26, 2021 | $ | 584 |  |  | $ | 1,133 |
Additions during the year | 308 |  |  | — |
Redemptions during the year | (289) |  |  | — |
Revaluation of equity securities | (5) |  |  | 13 |
Change in foreign currency exchange rates | (20) |  |  | (34) |
Balance at December 24, 2021 | $ | 578 |  |  | $ | 1,112 |
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 23, 2022, the Company contributed approximately $403 and $1,102 to its non-U.S. pension plan, respectively. During the three- and nine-month periods ended December 24, 2021, the Company contributed approximately $344 and $1,040 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. Defined Contribution Plan 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. 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 approximately $917 and $3,399 for the three- and nine-month periods ended December 23, 2022, respectively, and approximately $665 and $3,000 for the three- and nine-month periods ended December 24, 2021, respectively.

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