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Employee Retirement Plans | 12 Months Ended
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Mar. 31, 2020
Share-based Payment Arrangement [Abstract] |
Employee Retirement Plans | Employee Retirement PlansWe have a defined contribution plan in which all U.S. full-time employees are eligible to participate. The participants may contribute from 1% to 70% of their compensation, as defined in the plan. We match 100% of the first 3%, plus 50% of the next 3%, of each participant's base compensation with full vesting immediately. We may also make additional contributions to the plan as determined by the Board of Directors. The total expense for the defined contribution plan was $1.5 million, $1.5 million and $1.6 million for 2020, 2019 and 2018, respectively. Certain employees of our Lynchburg manufacturing facility are covered by defined benefit pension plans. The Company’s policy is to contribute at least the minimum amount required under ERISA. The Company may elect to make additional contributions. Benefits are based on years of service and levels of compensation. On December 16, 2014, the decision was made to freeze the benefits under the Company's U.S. qualified defined benefit pension plan with an effective date of March 1, 2015. Benefit Obligations and Plan Assets The following table summarizes the changes in the U.S. pension plan obligations and plan assets and includes a statement of the plans' funded status as of March 31, 2020 and 2019:
| March 31, |  |
(In thousands) | 2020 |  | 2019
Change in benefit obligation: |  |  |
Projected benefit obligation at beginning of period | $ | 60,334 |  |  | $ | 61,882 |
Interest cost | 2,327 |  |  | 2,380 |
Actuarial (gain) loss | 2,375 |  |  | (744) |
Benefits paid | (3,466) |  |  | (3,184) |
Projected benefit obligations at end of year | $ | 61,570 |  |  | $ | 60,334 |
Change in plan assets: |  |  |
Fair value of plan assets at beginning of period | $ | 51,115 |  |  | $ | 50,508 |
Actual return on plan assets | 3,742 |  |  | 2,416 |
Employer contribution | 1,369 |  |  | 1,375 |
Benefits paid | (3,466) |  |  | (3,184) |
Fair value of plan assets at end of year | $ | 52,760 |  |  | $ | 51,115 |
Funded status at end of year | $ | (8,810) |  |  | $ | (9,219) |
Amounts recognized in the balance sheet at the end of the period consist of the following:
| March 31, |  |
(In thousands) | 2020 |  | 2019
Current liability | $ | 359 |  |  | 361 |
Long-term liability | 8,451 |  |  | 8,858 |
Total | $ | 8,810 |  |  | $ | 9,219 |
The primary components of Net Periodic Benefits consist of the following:
| Year Ended March 31, |  |  |  |
(In thousands) | 2020 |  | 2019 |  | 2018
Interest cost | $ | 2,327 |  |  | $ | 2,380 |  |  | $ | 2,529 |
Expected return on assets | (2,886) |  |  | (3,070) |  |  | (2,901) |
Net periodic benefit (income) | $ | (559) |  |  | $ | (690) |  |  | $ | (372) |
The accumulated benefit obligation, which represents benefits earned to the measurement date, was $61.6 million at March 31, 2020, and $60.3 million at March 31, 2019 and we had a net periodic benefit (income) of less than $1.0 million for 2020, 2019 and 2018, respectively. The pension benefit amounts stated above include one pension plan that is an unfunded plan. The projected benefit obligation and accumulated benefit obligation for this unfunded plan were $4.6 million as of March 31, 2020 and $4.6 million as of March 31, 2019. The following table includes amounts that are expected to be contributed to the plans by the Company. It reflects benefit payments that are made from the plans' assets as well as those made directly from the Company's assets. The amounts in the table are actuarially determined and reflect the Company's best estimate given its current knowledge; actual amounts could be materially different.
(In thousands) | Pension Benefits
Employer contributions: |
2021 (expectation) to participant benefits | $ | 1,359 |
Expected benefit payments year ending March 31, |
2021 | $ | 3,476 |
2022 | 3,592 |
2023 | 3,669 |
2024 | 3,743 |
2025 | 3,718 |
2026-2030 | 18,670 |
During both 2020 and 2019, we contributed $1.0 million to our qualified defined benefit plan. During 2018, we made no contribution to the qualified plan. The Company's primary investment objective for its qualified pension plan assets is to provide a source of retirement income for the plans' participants and beneficiaries. The asset allocation for the Company's funded retirement plan as of March 31, 2020 and 2019, and the target allocation by asset category are as follows:
| Percentage of Plan Assets |  |  |
Asset Category | Target Allocation | March 31, 2020 |  | March 31, 2019
Domestic large cap equities | 16 | % | 16 | % |  | 18 | %
Domestic small/mid cap equities | 6 |  | 5 |  |  | 5 |
International equities | 14 |  | 15 |  |  | 15 |
Real estate | 5 |  | 5 |  |  | — |
Fixed income and cash | 59 |  | 59 |  |  | 62 |
Total | 100 | % | 100 | % |  | 100 | %
The plan assets are invested in a diversified portfolio consisting primarily of domestic fixed income and publicly traded equity securities held within group trust funds at March 31, 2020 and 2019. These assets are fair valued using NAV. The following tables show the unrecognized actuarial loss (gain) included in accumulated other comprehensive income (loss) at March 31, 2020, 2019 and 2018, as well as the prior service cost credit and actuarial loss expected to be reclassified from accumulated other comprehensive income (loss) to retirement expense during 2021:
(In thousands) |
Balances in accumulated other comprehensive loss as of March 31, 2018: |
Unrecognized actuarial (gain) | $ | (1,407) |
Unrecognized prior service credit | — |
Balances in accumulated other comprehensive (income) as of March 31, 2019: |
Unrecognized actuarial (gain) | $ | (1,469) |
Unrecognized prior service credit | — |
Balances in accumulated other comprehensive loss as of March 31, 2020: |
Unrecognized actuarial loss | $ | 73 |
Unrecognized prior service credit | — |
Amounts expected to be reclassified from accumulated other comprehensive income (loss) during 2021: |  |
Unrecognized actuarial gain (loss) | $ | — |
Unrecognized prior service credit | — |
Assumptions used in determining the actuarial present value of the benefit obligation as of March 31, 2020 and 2019 were as follows:
| March 31, |  |
| 2020 |  | 2019
Key assumptions: |  |  |
Discount rate | 3.37% to 3.55% |  | 3.80% to 3.99%
Expected return on plan assets, net of administrative fees | 5.00% |  | 5.75%
Rate of compensation increase | — |  | —
The determination of the expected long-term rate of return was derived from an optimized portfolio using an asset allocation software program. The risk and return assumptions, along with the correlations between the asset classes, were entered into the program. Based on these assumptions and historical experience, the portfolio is expected to achieve a long-term rate of return of 5.00%. The investment managers engaged to manage the portfolio are expected to outperform their expected benchmarks on a relative basis over a full market cycle.

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- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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