RETIREMENT PLANS

12 Months Ended

Apr. 03, 2021

Defined Contribution Plans

The Company has a Savings Plus Plan (the “401k Plan”) that is a 401(k) plan that allows its U.S. employees to accumulate savings on a pre-tax basis. In addition, matching contributions are made to the 401k Plan based upon pre-established rates. The Company's matching contributions amounted to approximately $4.9 million, $4.7 million and $5.0 million in fiscal 2021, 2020 and 2019, respectively. Upon the Company's Board of Directors' approval, additional discretionary contributions can also be made. No discretionary contributions were made for the 401k Plan in fiscal 2021, 2020, or 2019.

Some of the Company's subsidiaries also have defined contribution plans, to which both the employee and the employer make contributions. The employer contributions to these plans totaled $0.7 million, $0.6 million and $0.6 million in fiscal 2021, 2020 and 2019, respectively.

Defined Benefit Plans

ASC Topic 715, Compensation — Retirement Benefits, requires an employer to: (a) recognize in its statement of financial position an asset for a plan’s over-funded status or a liability for a plan’s under-funded status; (b) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year (with limited exceptions); and (c) recognize changes in the funded status of a defined benefit post retirement plan in the year in which the changes occur. Accordingly, the Company is required to report changes in its funded status in comprehensive loss on its consolidated statement of stockholders’ equity and consolidated statement of comprehensive income.

Benefits under these plans are generally based on either career average or final average salaries and creditable years of service as defined in the plans. The annual cost for these plans is determined using the projected unit credit actuarial cost method that includes actuarial assumptions and estimates that are subject to change.

Some of the Company's foreign subsidiaries have defined benefit pension plans covering substantially all full time employees at those subsidiaries. Net periodic benefit costs for the plans in the aggregate include the following components:


(In thousands)	2021		2020		2019
Service cost	$	1,861	$	1,829	$	1,893
Interest cost on benefit obligation	279		301		340
Expected return on plan assets	(66)		(178)		(208)
Actuarial loss	119		129		132
Amortization of unrecognized prior service cost	(123)		(98)		(86)

Plan settlements and curtailments	—		(239)		(82)
Totals	$	2,070	$	1,744	$	1,989

The activity under those defined benefit plans are as follows:


(In thousands)	April 3, 2021		March 28, 2020
Change in Benefit Obligation:
Benefit Obligation, beginning of year	$	(28,370)	$	(30,637)
Service cost	(1,861)		(1,829)
Interest cost	(279)		(301)
Benefits paid	1,990		530
Actuarial gain	(1,249)		285
Employee and plan participants contribution	(1,084)		(3,447)
Plan settlements and curtailments	525		6,612
Foreign currency changes	(1,563)		417
Benefit obligation, end of year	$	(31,891)	$	(28,370)
Change in Plan Assets:
Fair value of plan assets, beginning of year	$	15,287	$	16,287
Company contributions	1,224		1,585
Benefits paid	(1,822)		(433)
Gain on plan assets	219		349
Employee and plan participants contribution	1,064		3,549
Plan settlements	—		(6,610)
Foreign currency changes	170		560
Fair value of plan assets, end of year	$	16,142	$	15,287
Funded Status*	$	(15,749)	$	(13,083)
Unrecognized net actuarial loss	2,948		1,867
Unrecognized prior service cost	(1,248)		(837)
Net amount recognized	$	(14,049)	$	(12,053)
* Substantially all of the unfunded status is non-current

One of the benefit plans is funded by benefit payments made by the Company through the purchase of reinsurance contracts that do not qualify as plan assets under ASC Topic 715. Accordingly, that plan has no assets included in the information presented above. The total asset value associated with the reinsurance contracts was $7.0 million and $6.3 million at April 3, 2021 and March 28, 2020, respectively. The total liability for this plan, which is included in the table above, was $11.1 million and $9.2 million as of April 3, 2021 and March 28, 2020, respectively.

The accumulated benefit obligation for all plans was $30.6 million and $27.9 million for fiscal 2021 and 2020, respectively. There were no plans where the plan assets were greater than the accumulated benefit obligation as of April 3, 2021 and March 28, 2020.

The components of the change recorded in the Company's accumulated other comprehensive loss related to its defined benefit plans, net of tax, are as follows (in thousands):


Balance as of March 31, 2018	$	(323)

Actuarial loss	(51)
Prior service cost	(80)
Plan settlements and curtailments	(73)
Balance as of March 30, 2019	$	(527)
Actuarial gain	614
Prior service cost	(87)
Plan settlements and curtailments	(209)
Balance as of March 28, 2020	$	(209)
Actuarial loss	(221)
Prior service cost	(130)
Plan settlements and curtailments	—
Balance as of April 3, 2021	$	(560)

The Company expects to amortize $0.4 million from accumulated other comprehensive loss to net periodic benefit cost during fiscal 2022.

The weighted average rates used to determine the net periodic benefit costs and projected benefit obligations were as follows:


	2021		2020		2019
Discount rate	0.58	%	0.82	%	0.97	%
Rate of increased salary levels	1.64	%	1.74	%	1.78	%
Expected long-term rate of return on assets	0.42	%	0.31	%	0.75	%

Assumptions for expected long-term rate of return on plan assets are based upon actual historical returns, future expectations of returns for each asset class and the effect of periodic target asset allocation rebalancing. The results are adjusted for the payment of reasonable expenses of the plan from plan assets.

The Company has no other material obligation for post-retirement or post-employment benefits.

The Company's investment policy for pension plans is to balance risk and return through a diversified portfolio to reduce interest rate and market risk. Maturities are managed so that sufficient liquidity exists to meet immediate and future benefit payment requirements.

ASC Topic 820, Fair Value Measurements and Disclosures, provides guidance for reporting and measuring the plan assets of the Company's defined benefit pension plan at fair value as of April 3, 2021. Using the same three-level valuation hierarchy for disclosure of fair value measurements as described in Note 14, Financial Instruments and Fair Value Measurements, all of the assets of the Company’s plan are classified within Level 2 of the fair value hierarchy because the plan assets are primarily insurance contracts.

Expected benefit payments for both plans are estimated using the same assumptions used in determining the Company’s benefit obligation at April 3, 2021. Benefit payments will depend on future employment and compensation levels, average years employed and average life spans, among other factors, and changes in any of these factors could significantly affect these estimated future benefit payments.

Estimated future benefit payments are as follows:


(In thousands)
Fiscal 2022	$	1,629
Fiscal 2023	1,376
Fiscal 2024	1,425
Fiscal 2025	1,250
Fiscal 2026	1,287
Fiscal 2027-2031	7,359
	$	14,326

The Company's contributions for fiscal 2022 are expected to be consistent with the current year.