XML 256 R24.htm IDEA: XBRL DOCUMENT
v3.23.1

Employee Retirement Plans | 12 Months Ended
--- | ---
Mar. 31, 2023
Retirement Benefits [Abstract] |
Employee Retirement Plans | Employee Retirement Plans We 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 $1.9 million, $1.7 million and $1.6 million for 2023, 2022 and 2021, respectively. Certain employees of our Lynchburg manufacturing facility were covered by defined benefit pension plans. Benefits were 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 (the "Plan") with an effective date of March 1, 2015. During the third quarter of 2021, we offered participants of the Plan the option to receive a lump sum payout of their benefits. The amount paid out of plan assets during the third quarter of 2021 to those who elected to take the lump sum payout was $7.0 million, and we recognized a settlement gain of $0.2 million as a result of the payout. The settlement credit was determined based on a remeasurement of the Plan as of December 31, 2020, at which point a discount rate of 2.51% and an expected return assumption of 2.75% were selected. Those remeasurement assumptions were also used to determine the net periodic pension income for the Plan for the fourth quarter of fiscal 2021. During the fourth quarter of 2021, we adopted a plan termination date of April 30, 2021 for the Plan and began the Plan termination process. The settlements of the terminated Plan occurred during the first quarter of fiscal 2023, with lump sum settlements in the amount of $13.8 million being paid to eligible Plan participants who elected such payments and the purchase of annuity contracts for $31.1 million to the remaining participants. These settlements were paid using Plan assets and resulted in a settlement loss of $0.4 million. No further contributions to the Plan were necessary. 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, 2023 and 2022:
| March 31,
(In thousands) | 2023 |  | 2022
Change in benefit obligation: |  |  |
Projected benefit obligation at beginning of period | $ | 51,507 |  |  | $ | 56,818 |
Interest cost | 423 |  |  | 1,107 |
Actuarial (gain) loss | (2,044) |  |  | (2,888) |
Benefits paid | (46,240) |  |  | (3,530) |
Projected benefit obligations at end of year | $ | 3,646 |  |  | $ | 51,507 |
Change in plan assets: |  |  |
Fair value of plan assets at beginning of period | $ | 48,708 |  |  | $ | 53,275 |
Actual return on plan assets | (2,820) |  |  | (1,405) |
Employer contribution | 370 |  |  | 368 |
Benefits paid | (1,371) |  |  | (3,530) |
Settlements paid with termination of qualified plan | $ | (44,869) |  |  | — |
Fair value of plan assets at end of year | $ | 18 |  |  | $ | 48,708 |
Funded status at end of year | $ | (3,628) |  |  | $ | (2,799) |
Amounts recognized in the balance sheet at the end of the period consist of the following:
| March 31,
(In thousands) | 2023 |  | 2022
Noncurrent asset | $ | 18 |  |  | $ | 1,534 |
Current liability | 362 |  |  | 365 |
Long-term liability | 3,284 |  |  | 3,968 |
Total liabilities | $ | 3,646 |  |  | $ | 4,333 |
Total net liability | $ | (3,628) |  |  | $ | (2,799) |
The primary components of Net Periodic Benefit Cost (Income) consist of the following:
| Year Ended March 31,
(In thousands) | 2023 |  | 2022 |  | 2021
Interest cost | $ | 423 |  |  | $ | 1,107 |  |  | $ | 1,972 |
Expected return on assets | (252) |  |  | (1,163) |  |  | (2,336) |
Net periodic benefit cost (income) | $ | 171 |  |  | $ | (56) |  |  | $ | (364) |
The following table provides information regarding our pension plans with an accumulated benefit obligation and a projected benefit obligation in excess of plan assets:
| March 31,
(In thousands) | 2023 |  | 2022
Accumulated benefit obligation | $ | 3,646 |  |  | $ | 51,507 |
Fair value of plan assets | 18 |  |  | 48,708 |
Projected benefit obligations | $ | 3,646 |  |  | $ | 51,507 |
Fair value of plan assets | 18 |  |  | 48,708 |
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 $3.6 million as of March 31, 2023 and $4.3 million as of March 31, 2022. The following table includes amounts that are expected to be contributed to the unfunded plan by the Company. It reflects benefit payments that are 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: |
2024 (expectation) to participant benefits | $ | 362 |
Expected benefit payments year ending March 31, |
2024 | $ | 362 |
2025 | 354 |
2026 | 344 |
2027 | 332 |
2028 | 320 |
2029-2032 | 1,404 |
We did not make any contributions to the Plan during 2023 or 2022, and we contributed $3.0 million to the Plan during 2021. Prior to the termination of the Plan, the Company's primary investment objective for its qualified pension plan assets was to provide a source of retirement income for the Plan's participants and beneficiaries. The asset allocation for the Plan as of March 31, 2023 and 2022, and the target allocation by asset category are as follows:
| Percentage of Plan Assets
Asset Category | Target Allocation |  | March 31, 2023 |  | March 31, 2022
Real estate | — | % |  | — | % |  | — | %
Fixed income and cash | 100 |  |  | 100 |  |  | 100 |
Total | 100 | % |  | 100 | % |  | 100 | %
The remaining plan assets as of March 31, 2023 are held in a cash account. The plan assets at March 31, 2022 were invested in a portfolio consisting primarily of domestic fixed income held within collective investment trust funds due to the Plan termination process, which began during the fourth quarter of fiscal 2021, and the Plan's positive funded status. These assets are measured at NAV as a practical expedient. The following tables show the unrecognized actuarial loss (gain) included in accumulated other comprehensive income (loss) at March 31, 2023, 2022 and 2021:
(In thousands) |
Balances in accumulated other comprehensive loss as of March 31, 2021: |
Unrecognized actuarial (gain) | $ | (1,202) |
Unrecognized prior service credit | — |
Balances in accumulated other comprehensive loss as of March 31, 2022: |
Unrecognized actuarial (gain) | $ | (1,522) |
Unrecognized prior service credit | — |
Balances in accumulated other comprehensive loss as of March 31, 2023: |
Unrecognized actuarial (gain) | $ | (930) |
Unrecognized prior service credit | — |
Assumptions used in determining the actuarial present value of the net periodic benefit cost (income) for the fiscal years ended March 31, 2023, 2022 and 2021 were as follows:
| March 31,
| 2023 * |  | 2022 |  | 2021 **
Key assumptions: |  |  |  |  |
Discount rate | 3.26% to 3.48% |  | 2.58% to 2.95% |  | 3.37% to 3.55%
Expected return on plan assets, net of administrative fees | 2.75% |  | 2.25% |  | 5.00%
*The qualified plan was remeasured at April 30, 2022 for settlement accounting, at which point a discount rate of 3.98% and an expected return assumption of 2.75% were selected and used to determine the net periodic benefit cost (income) for the remainder of the fourth quarter of fiscal 2023. **The qualified plan was remeasured at December 31, 2020 for settlement accounting, at which point a discount rate of 2.51% and an expected return assumption of 2.75% were selected and used to determine the net periodic benefit cost (income) for the fourth quarter of fiscal 2021. Assumptions used in determining the actuarial present value of the benefit obligation as of March 31, 2023 and 2022 were as follows:
| March 31,
| 2023 |  | 2022
Key assumptions: |  |  |
Discount rate | 4.47% |  | 3.26% to 3.48%
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 2.75%.

X
- References No definition available. + Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for retirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 55 -Paragraph 17 -URI https://asc.fasb.org/extlink&oid=123450688&loc=d3e4179-114921 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section S99 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=21916913&loc=d3e273930-122802 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(i) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (o) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (p) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 70 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=49170846&loc=d3e28014-114942 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI https://asc.fasb.org/topic&trid=2235017 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 3 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=6414203&loc=d3e39689-114964 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(iv)(03) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (q) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (r)(1) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(iii) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (l) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (r)(2) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration