XML 56 R21.htm IDEA: XBRL DOCUMENT
v3.20.1

Pension Plan | 12 Months Ended
--- | ---
Feb. 29, 2020
Compensation And Retirement Disclosure [Abstract] |
Pension Plan | (13) Pension Plan The Company and certain subsidiaries have a noncontributory defined benefit retirement plan (the “Pension Plan”), covering approximately 16% of aggregate employees. Benefits are based on years of service and the employee’s average compensation for the highest five compensation years preceding retirement or termination. The Company’s funding policy is to contribute annually an amount in accordance with the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”). The Company’s Pension Plan asset allocation, by asset category, is as follows for the fiscal years ended:
|  | 2020 |  |  | 2019 |
Equity securities |  |  | 47 | % |  |  | 46 | %
Debt securities |  |  | 44 | % |  |  | 48 | %
Cash and cash equivalents |  |  | 9 | % |  |  | 6 | %
Total |  |  | 100 | % |  |  | 100 | %
The current asset allocation is being managed to meet the Company’s stated objective of asset growth and capital preservation. The factor is based upon the combined judgments of the Company’s Administrative Committee and its investment advisors to meet the Company’s investment needs, objectives, and risk tolerance. The Company’s target asset allocation percentage, by asset class, for the year ended February 29, 2020 is as follows:
Asset Class |  | Target Allocation Percentage
Cash |  | 1 – 5%
Fixed Income |  | 35 – 55%
Equity |  | 45 – 60%
The Company estimates the long-term rate of return on Pension Plan assets will be 7.0% based upon target asset allocation. Expected returns are developed based upon the information obtained from the Company’s investment advisors. The advisors provide ten-year historical and five-year expected returns on the fund in the target asset allocation. The return information is weighted based upon the asset allocation at the end of the fiscal year. The expected rate of return at the beginning of fiscal year ended 2020 was 7.0%. The rate used in the calculation of fiscal year 2019 pension expense was 7.5%. The following tables present the Pension Plan’s fair value hierarchy for those assets measured at fair value as of February 29, 2020 and February 28, 2019 (in thousands):
|  | February 29, 2020 |
Description |  | Total |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Cash and cash equivalents |  | $ | 5,615 |  |  | $ | 5,615 |  |  | $ | — |  |  | $ | — |
Government bonds |  |  | 9,836 |  |  |  | — |  |  |  | 9,836 |  |  |  | — |
Corporate bonds |  |  | 16,879 |  |  |  | — |  |  |  | 16,879 |  |  |  | — |
Domestic equities |  |  | 20,567 |  |  |  | 20,567 |  |  |  | — |  |  |  | — |
Foreign equities |  |  | 7,703 |  |  |  | 7,703 |  |  |  | — |  |  |  | — |
|  | $ | 60,600 |  |  | $ | 33,885 |  |  | $ | 26,715 |  |  | $ | — |
|  | February 28, 2019 |
Description |  | Total |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Cash and cash equivalents |  | $ | 3,945 |  |  | $ | 3,945 |  |  | $ | — |  |  | $ | — |
Government bonds |  |  | 16,128 |  |  |  | — |  |  |  | 16,128 |  |  |  | — |
Corporate bonds |  |  | 10,722 |  |  |  | — |  |  |  | 10,722 |  |  |  | — |
Domestic equities |  |  | 20,903 |  |  |  | 20,903 |  |  |  | — |  |  |  | — |
Foreign equities |  |  | 6,023 |  |  |  | 6,023 |  |  |  | — |  |  |  | — |
|  | $ | 57,721 |  |  | $ | 30,871 |  |  | $ | 26,850 |  |  | $ | — |
Fair value estimates are made at a specific point in time, based on available market information and judgments about the financial asset, including estimates of timing, amount of expected future cash flows, and the credit standing of the issuer. In some cases, the fair value estimates cannot be substantiated by comparison to independent markets. The disclosed fair value may not be realized in the immediate settlement of the financial asset. In addition, the disclosed fair values do not reflect any premium or discount that could result from offering for sale at one time an entire holding of a particular financial asset. Potential taxes and other expenses that would be incurred in an actual sale or settlement are not reflected in amounts disclosed. Pension expense is composed of the following components included in cost of goods sold and selling, general and administrative expenses in the Company’s consolidated statements of operations for fiscal years ended (in thousands):
|  | 2020 |  |  | 2019 |  |  | 2018 |
Components of net periodic benefit cost |  |  |  |  |  |  |  |  |  |  |  |
Service cost |  | $ | 1,088 |  |  | $ | 1,106 |  |  | $ | 1,083 |
Interest cost |  |  | 2,254 |  |  |  | 2,274 |  |  |  | 2,270 |
Expected return on plan assets |  |  | (4,198 | ) |  |  | (4,109 | ) |  |  | (3,794 | )
Amortization of: |  |  |  |  |  |  |  |  |  |  |  |
Unrecognized net loss |  |  | 2,036 |  |  |  | 2,047 |  |  |  | 2,041 |
Net periodic benefit cost |  |  | 1,180 |  |  |  | 1,318 |  |  |  | 1,600 |
Other changes in Plan Assets and Projected Benefit Obligation |  |  |  |  |  |  |  |  |  |  |  |
Recognized in Other comprehensive Income |  |  |  |  |  |  |  |  |  |  |  |
Net actuarial loss (gain) |  |  | 13,371 |  |  |  | 2,414 |  |  |  | (669 | )
Amortization of net actuarial loss |  |  | (2,036 | ) |  |  | (2,047 | ) |  |  | (2,041 | )
|  |  | 11,335 |  |  |  | 367 |  |  |  | (2,710 | )
Total recognized in net periodic pension cost and other comprehensive income |  | $ | 12,515 |  |  | $ | 1,685 |  |  | $ | (1,110 | )
The estimated net actuarial loss of the Pension Plan expected to be amortized from Accumulated Other Comprehensive Loss into net periodic benefit cost over the next fiscal year is approximately $3.4 million. The following table represents the assumptions used to determine benefit obligations and net periodic pension cost for fiscal years ended:
|  | 2020 |  |  | 2019 |  |  | 2018 |
Weighted average discount rate (net periodic pension cost) |  |  | 4.10 | % |  |  | 4.05 | % |  |  | 4.10 | %
Earnings progression (net periodic pension cost) |  |  | 3.00 | % |  |  | 3.00 | % |  |  | 3.00 | %
Expected long-term rate of return on plan assets (net periodic pension cost) |  |  | 7.00 | % |  |  | 7.50 | % |  |  | 7.50 | %
Weighted average discount rate (benefit obligations) |  |  | 2.65 | % |  |  | 4.10 | % |  |  | 4.05 | %
Earnings progression (benefit obligations) |  |  | 3.00 | % |  |  | 3.00 | % |  |  | 3.00 | %
During fiscal year 2020, the Company adopted the new MP-2019 improvement scale and the new Pri-2012 Blue Collar mortality tables to determine their benefit obligations under the Pension Plan. The accumulated benefit obligation (“ABO”), change in projected benefit obligation (“PBO”), change in Pension Plan assets, funded status, and reconciliation to amounts recognized in the consolidated balance sheets are as follows (in thousands):
|  | 2020 |  |  | 2019 |
Change in benefit obligation |  |  |  |  |  |  |  |
Projected benefit obligation at beginning of year |  | $ | 57,141 |  |  | $ | 57,619 |
Service cost |  |  | 1,088 |  |  |  | 1,106 |
Interest cost |  |  | 2,254 |  |  |  | 2,274 |
Actuarial (gain) loss |  |  | 12,853 |  |  |  | (367 | )
Other assumption change |  |  | (549 | ) |  |  | (120 | )
Benefits paid |  |  | (3,251 | ) |  |  | (3,371 | )
Projected benefit obligation at end of year |  | $ | 69,536 |  |  | $ | 57,141 |
Change in plan assets: |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of year |  | $ | 57,721 |  |  | $ | 56,884 |
Company contributions |  |  | 3,000 |  |  |  | 3,000 |
Gain on plan assets |  |  | 3,130 |  |  |  | 1,208 |
Benefits paid |  |  | (3,251 | ) |  |  | (3,371 | )
Fair value of plan assets at end of year |  | $ | 60,600 |  |  | $ | 57,721 |
Funded (unfunded) status |  | $ | (8,936 | ) |  | $ | 580 |
Accumulated benefit obligation at end of year |  | $ | 63,340 |  |  | $ | 52,747 |
The measurement dates used to determine pension and other postretirement benefits is the Company’s fiscal year end. The Company contributed $3.0 million to the Pension Plan during fiscal year 2020. Depending on the Pension Plan’s projected funding status, the Company expects to contribute between $1.5 and $3.0 million to the Pension Plan during fiscal year 2021. Estimated future benefit payments which reflect expected future service, as appropriate, are expected to be paid to the Pension Plan participants in the fiscal years ended (in thousands):
Year |  | Projected Payments |
2021 |  | $ | 4,600 |
2022 |  |  | 4,700 |
2023 |  |  | 3,200 |
2024 |  |  | 4,900 |
2025 |  |  | 5,000 |
2026 – 2030 |  |  | 20,600 |
Effective February 1, 1994, the Company adopted a Defined Contribution 401(k) Plan (the “401(k) Plan”) for its United States employees. The 401(k) Plan covers substantially all full-time employees who have completed sixty days of service and attained the age of eighteen. United States employees can contribute up to 100 percent of their annual compensation, but are limited to the maximum annual dollar amount allowable under the Internal Revenue Code. The 401(k) Plan provides for employer matching contributions or discretionary employer contributions for certain employees not enrolled in the Pension Plan for employees of the Company. Eligibility for employer contributions, matching percentage, and limitations depends on the participant’s employment location and whether the employees are covered by the Pension Plan, among other factors. The Company’s matching contributions are immediately vested. The Company made matching 401(k) contributions in the amount of $2.1 million, $1.7 million and $1.2 million in fiscal years ended 2020, 2019 and 2018, respectively. In addition, the Northstar Computer Forms, Inc. 401(k) Profit Sharing Plan was merged into the 401(k) Plan on February 1, 2001. The Company declared profit sharing contributions on behalf of the former employees of Northstar Computer Forms, Inc. in accordance with its original plan in the amounts of $194,000, $206,000, and $203,000, in fiscal years ended 2020, 2019 and 2018, respectively.

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 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
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration