XML 32 R17.htm IDEA: XBRL DOCUMENT v3.22.0.1
Employee Benefit Plans
 12 Months Ended
Jan. 29, 2022
Postemployment Benefits [Abstract]  
Employee Benefit Plans

J. EMPLOYEE BENEFIT PLANS

The Company accounts for its employee benefit plans in accordance with ASC Topic 715, Compensation – Retirement Benefits. ASC Topic 715 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 postretirement plan in the year in which the changes occur.

These amounts will be subsequently recognized as net periodic pension cost pursuant to the Company’s accounting policy for amortizing such amounts. Further, actuarial gains and losses that arise in subsequent periods and are not recognized as net periodic pension cost in the same periods will be recognized as a component of accumulated other comprehensive income (loss). In fiscal 2021, the amortization of the unrecognized loss was calculated based on the average remaining lifetime of all employees, as opposed to the average remaining future service of active employees. As a result of this change in amortization, the Company expects a decrease in net periodic pension cost in fiscal 2022 of $47,000.

Noncontributory Pension Plan

In connection with the Casual Male acquisition in May 2002, the Company assumed the assets and liabilities of the Casual Male Noncontributory Pension Plan “Casual Male Corp. Retirement Plan”, which was previously known as the J. Baker, Inc. Qualified Plan (the “Pension Plan”). Casual Male Corp. froze all future benefits under this plan on May 1, 1997.

The following table sets forth the Pension Plan’s funded status at January 29, 2022 and January 30, 2021:

 

 

 

January 29, 2022

 

 

January 30, 2021

 

 

 

in thousands

 

Change in benefit obligation:

 

 

 

 

 

 

Balance at beginning of period

 

$

15,864

 

 

$

16,217

 

Benefits and expenses paid

 

 

(839

)

 

 

(877

)

Interest costs

 

 

373

 

 

 

430

 

Settlements

 

 

(353

)

 

 

(410

)

Actuarial (gain) loss

 

 

(684

)

 

 

504

 

Balance at end of year

 

$

14,361

 

 

$

15,864

 

 

 

 

 

 

 

 

Change in fair value of plan assets:

 

 

 

 

 

 

Balance at beginning of period

 

$

11,351

 

 

$

11,483

 

Actual return on plan assets

 

 

512

 

 

 

544

 

Employer contributions

 

 

622

 

 

 

611

 

Settlements

 

 

(353

)

 

 

(410

)

Benefits and expenses paid

 

 

(839

)

 

 

(877

)

Balance at end of period

 

$

11,293

 

 

$

11,351

 

 

 

 

 

 

 

 

Reconciliation of funded status:

 

 

 

 

 

 

Projected benefit obligation

 

$

14,361

 

 

$

15,864

 

Fair value of plan assets

 

 

11,293

 

 

 

11,351

 

Unfunded status

 

$

(3,068

)

 

$

(4,513

)

 

 

 

 

 

 

 

Balance sheet classification:

 

 

 

 

 

 

Other long-term liabilities

 

$

3,068

 

 

$

4,513

 

Total plan expense and other amounts recognized in accumulated other comprehensive loss for the years ended January 29, 2022, January 30, 2021 and February 1, 2020 include the following components:

 

 

January 29, 2022

 

 

January 30, 2021

 

 

February 1, 2020

 

Net pension cost:

 

(in thousands)

 

Interest cost on projected benefit obligation

 

$

373

 

 

$

430

 

 

$

581

 

Expected return on plan assets

 

 

(728

)

 

 

(737

)

 

 

(724

)

Amortization of unrecognized loss

 

 

314

 

 

 

989

 

 

 

784

 

Net pension cost

 

$

(41

)

 

$

682

 

 

$

641

 

 

 

 

 

 

 

 

 

 

 

Other changes recognized in other comprehensive loss,
   before taxes:

 

 

 

 

 

 

 

 

 

Unrecognized losses at the beginning of the year

 

$

6,914

 

 

$

7,206

 

 

$

6,303

 

Net periodic pension cost

 

 

41

 

 

 

(682

)

 

 

(641

)

Employer contribution

 

 

622

 

 

 

611

 

 

 

420

 

Change in plan assets and benefit obligations

 

 

(1,445

)

 

 

(221

)

 

 

1,124

 

Unrecognized losses at the end of year

 

$

6,132

 

 

$

6,914

 

 

$

7,206

 

The Company’s contribution for fiscal 2022 is estimated to be approximately $864,000.

Assumptions used to determine the benefit obligations as of January 29, 2022 and January 30, 2021 include a discount rate of 3.00% for fiscal 2021 and 2.39% for fiscal 2020. Assumptions used to determine the net periodic benefit cost for the years ended January 29, 2022, January 30, 2021 and February 1, 2020 included a discount rate of 2.39% for fiscal 2021, 2.72% for fiscal 2020 and 3.98% for fiscal 2019.

The expected long-term rate of return for plan assets was assumed to be 6.50% for both fiscal 2021 and fiscal 2020. The expected long-term rate of return assumption was developed considering historical and future expectations for returns for each asset class.

Estimated Future Benefit Payments

The estimated future benefits for the next ten fiscal years are as follows:

 

 

 

Total

 

FISCAL YEAR

 

(in thousands)

 

2022

 

$

908

 

2023

 

 

922

 

2024

 

 

916

 

2025

 

 

907

 

2026

 

 

916

 

2027-2031

 

 

4,502

 

Plan Assets

The fair values of the Company’s noncontributory defined benefit retirement plan assets at the end of fiscal 2021 and fiscal 2020, by asset category, were as follows:

 

 

 

Fair Value Measurement

 

 

 

January 29, 2022

 

 

January 30, 2021

 

(in thousands)

 

Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)

 

 

Significant
Observable
Inputs
(Level 2)

 

 

Significant Unobservable
Inputs (Level 3)

 

 

Total

 

 

Quoted Prices in Active Markets
for Identical
Assets (Level 1)

 

 

Significant
Observable
Inputs (Level 2)

 

 

Significant Unobservable
Inputs (Level 3)

 

 

Total

 

Asset category:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual Funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Equity

 

$

4,446

 

 

 

—

 

 

 

—

 

 

$

4,446

 

 

$

4,071

 

 

 

—

 

 

 

—

 

 

$

4,071

 

International Equity

 

 

3,254

 

 

 

—

 

 

 

—

 

 

 

3,254

 

 

 

2,939

 

 

 

—

 

 

 

—

 

 

 

2,939

 

Fixed Income

 

 

3,486

 

 

 

—

 

 

 

—

 

 

 

3,486

 

 

 

3,527

 

 

 

—

 

 

 

—

 

 

 

3,527

 

Cash

 

 

107

 

 

 

—

 

 

 

—

 

 

 

107

 

 

 

814

 

 

 

—

 

 

 

—

 

 

 

814

 

Total

 

$

11,293

 

 

$

—

 

 

$

—

 

 

$

11,293

 

 

$

11,351

 

 

$

—

 

 

$

—

 

 

$

11,351

 

The Company’s target asset allocation for fiscal 2022 and its asset allocation at January 29, 2022 and January 30, 2021 were as follows, by asset category:

 

 

 

Target Allocation

 

 

Percentage of plan assets at

 

 

 

Fiscal 2022

 

 

January 29, 2022

 

 

January 30, 2021

 

Asset category:

 

 

 

 

 

 

 

 

 

Equity securities

 

 

63.0

%

 

 

68.2

%

 

 

61.7

%

Debt securities

 

 

35.0

%

 

 

30.9

%

 

 

31.1

%

Cash

 

 

2.0

%

 

 

0.9

%

 

 

7.2

%

Total

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

The target policy is set to maximize returns with consideration to the long-term nature of the obligations and maintaining a lower level of overall volatility through the allocation of fixed income. The asset allocation is reviewed throughout the year for adherence to the target policy and is rebalanced periodically towards the target weights.

Supplemental Executive Retirement Plan

In connection with the Casual Male acquisition, the Company also assumed the liability of the Casual Male Supplemental Retirement Plan (the “SERP”).

The following table sets forth the SERP’s funded status at January 29, 2022 and January 30, 2021:

 

 

 

January 29, 2022

 

 

January 30, 2021

 

 

 

 

 

 

 

 

 

 

in thousands

 

Change in benefit obligation:

 

 

 

 

 

 

Balance at beginning of period

 

$

563

 

 

$

547

 

Benefits and expenses paid

 

 

(40

)

 

 

(38

)

Interest costs

 

 

12

 

 

 

14

 

Actuarial (gain) loss

 

 

(21

)

 

 

40

 

Balance at end of year

 

$

514

 

 

$

563

 

 

 

 

 

 

 

 

Change in fair value of plan assets:

 

 

 

 

 

 

Balance at beginning of period

 

$

—

 

 

$

—

 

Employer contributions

 

 

40

 

 

 

38

 

Benefits and expenses paid

 

 

(40

)

 

 

(38

)

Balance at end of period

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

Projected benefit obligation

 

$

514

 

 

$

563

 

 

 

 

 

 

 

 

Reconciliation of funded status:

 

 

 

 

 

 

Projected benefit obligation

 

$

514

 

 

$

563

 

Fair value of plan assets

 

 

—

 

 

 

—

 

Unfunded Status

 

$

(514

)

 

$

(563

)

 

 

 

 

 

 

 

Balance sheet classification:

 

 

 

 

 

 

Other long-term liabilities

 

$

514

 

 

$

563

 

Other changes recognized in other comprehensive loss, before taxes (in thousands):

 

 

 

January 29, 2022

 

 

January 30, 2021

 

 

February 1, 2020

 

 

 

in thousands

 

Other changes recognized in other comprehensive loss,
 before taxes:

 

 

 

 

 

 

 

 

 

Unrecognized losses at the beginning of the year

 

$

120

 

 

$

82

 

 

$

28

 

Net periodic pension cost

 

 

(16

)

 

 

(15

)

 

 

(19

)

Employer contribution

 

 

40

 

 

 

38

 

 

 

33

 

Change in benefit obligations

 

 

(49

)

 

 

15

 

 

 

40

 

Unrecognized losses at the end of year

 

$

95

 

 

$

120

 

 

$

82

 

Assumptions used to determine the benefit obligations as of January 29, 2022 and January 30, 2021 included a discount rate of 2.90% for fiscal 2021 and 2.24% for fiscal 2020. Assumptions used to determine the net periodic benefit cost for the years ended January 29, 2022, January 30, 2021 and February 1, 2020 included a discount rate of 2.24% for fiscal 2021, 2.59% for fiscal 2020 and 3.87% for fiscal 2019.

Defined Contribution Plan

The Company has one defined contribution plan, the Destination XL Group, Inc. 401(k) Savings Plan (the “401(k) Plan”). Under the 401(k) Plan, the Company offers a qualified automatic contribution arrangement (“QACA”) with the Company matching 100% of the first 1% of deferred compensation and 50% of the next 5% (with a maximum contribution of 3.5% of eligible compensation). Employees who are 21 years of age or older are eligible to make deferrals after 6 months of employment and are eligible to receive a Company match after one year of employment and 1,000 hours.

In fiscal 2018, the Board ratified and approved the recommendation of the Company’s management team to suspend employer contributions to the 401(k) Plan, for the period from July 1, 2018 until December 31, 2019 and resumed its QACA status for the 2020 plan year. For the 2021 plan year, the Company suspended its QACA safe harbor and, while not required, the Company made a discretionary employer match for 2021. The Company has resumed its QACA status for fiscal 2022.

The Company recognized $2.0 million, $1.5 million and $0.3 million of expense under the 401(k) Plan in fiscal 2021, 2020 and 2019, respectively.