Annual report pursuant to Section 13 and 15(d)

Pension and Other Post-retirement Benefit Plans (Tables)

v3.20.1
Pension and Other Post-retirement Benefit Plans (Tables)
12 Months Ended
Mar. 31, 2020
Retirement Benefits [Abstract]  
Summary of the changes in benefit obligations and plan assets
A summary of the changes in benefit obligations and plan assets at March 31, 2020 and 2019 is as follows (amounts in thousands):
 
 
Pension
 
Other Benefits
 
 
2020
 
2019
 
2020
 
2019
Change in Benefit Obligation
 
 
 
 
 
 
 
 
Benefit obligation at beginning of the year
 
$
148,440

 
$
161,673

 
$
312

 
$
367

Service cost
 
4,562

 
4,716

 

 

Interest cost
 
1,830

 
1,815

 
9

 
11

Plan participants’ contributions
 

 

 
553

 
641

Plan amendments
 
792

 

 

 

Actuarial (gain) loss
 
(1,860
)
 
1,146

 
(2
)
 
(81
)
Foreign currency exchange rate change
 
(1,684
)
 
(8,402
)
 

 

Gross benefits paid
 
(5,153
)
 
(1,097
)
 
(594
)
 
(626
)
Curtailments and settlements
 
(6,086
)
 
(11,411
)
 

 

Other events
 
(13
)
 

 

 

Benefit obligation at end of year
 
$
140,828

 
$
148,440

 
$
278

 
$
312

Change in Plan Assets
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
 
$
63,902

 
$
71,491

 
$

 
$

Actual return on plan assets
 
(543
)
 
1,165

 

 

Foreign currency exchange rate changes
 
487

 
(3,161
)
 

 

Employer contributions
 
10,208

 
7,882

 
41

 
(15
)
Settlements
 
(7,700
)
 
(12,379
)
 

 

Plan participants’ contributions
 

 

 
553

 
641

Gross benefits paid
 
(5,153
)
 
(1,096
)
 
(594
)
 
(626
)
Fair value of plan assets at end of year
 
$
61,201

 
$
63,902

 
$

 
$

Funded status at end of year
 
 
 
 
 
 
 
 
Fair value of plan assets
 
$
61,201

 
$
63,902

 
$

 
$

Benefit obligations
 
(140,828
)
 
(148,440
)
 
(278
)
 
(312
)
Amount recognized at end of year
 
$
(79,627
)
 
$
(84,538
)
 
$
(278
)
 
$
(312
)

Schedule of amounts recognized in the Consolidated Balance Sheets
Amounts recognized in the Consolidated Balance Sheets at March 31, 2020 and 2019 consist of the following (amounts in thousands):
 
 
Pension
 
Other Benefits
 
 
2020
 
2019
 
2020
 
2019
Noncurrent asset
 
$
2,317

 
$
670

 
$

 
$

Current liability
 
(2,663
)
 
(2,753
)
 
(47
)
 
(50
)
Noncurrent liability
 
(79,281
)
 
(82,455
)
 
(231
)
 
(262
)
Net liability recognized, end of year
 
$
(79,627
)
 
$
(84,538
)
 
$
(278
)
 
$
(312
)

Schedule of amounts recognized in Accumulated other comprehensive income (loss)
Amounts recognized in accumulated other comprehensive income (loss) at March 31, 2020 and 2019 consist of the following (amounts in thousands):
 
 
Pension
 
Other Benefits
 
 
2020
 
2019
 
2020
 
2019
Net actuarial loss (gain)
 
$
16,673

 
$
16,864

 
$
(646
)
 
$
(793
)
Prior service cost
 
2,034

 
1,325

 

 

Accumulated other comprehensive (income) loss
 
$
18,707

 
$
18,189

 
$
(646
)
 
$
(793
)

Schedule of components of benefit costs (credit)
The components of net periodic benefit (income) costs for the fiscal years ended March 31, 2020, 2019 and 2018 are as follows (amounts in thousands):
 
 
Pension
 
Other Benefits
 
 
2020
 
2019
 
2018
 
2020
 
2019
 
2018
Net service cost
 
$
4,562

 
$
4,716

 
$
4,585

 
$

 
$

 
$

Interest cost
 
1,830

 
1,815

 
1,750

 
9

 
11

 
12

Expected return on plan assets (1)
 
(1,913
)
 
(2,037
)
 
(1,956
)
 

 

 

Amortization:
 
 
 
 
 
 
 
 
 
 
 
 
Actuarial (gain) loss (2)
 
444

 
396

 
393

 
(148
)
 
(167
)
 
(191
)
Prior service cost
 
83

 
87

 
87

 

 

 

Recurring activity
 
5,006

 
4,977

 
4,859

 
(139
)
 
(156
)
 
(179
)
One time expense (income) (3)
 
1,949

 
115

 
(71
)
 

 

 

Net periodic benefit cost (credit)
 
$
6,955

 
$
5,092

 
$
4,788

 
$
(139
)
 
$
(156
)
 
$
(179
)
______________________________________________________________________________
(1) The Company has elected to use the actual fair value of plan assets as the market-related value of assets in the determination of the expected return on plan assets.
(2) Actuarial gains and losses are amortized using a corridor approach. The total unrecognized amount of cumulative actuarial gain or loss in excess of 10% of the greater of the market value of assets or the projected benefit obligation is amortized over the average remaining service of active employees/lifetime of plan participants for plans with no active participants.
(3) The one time expense of $1.9 million in fiscal year 2020 relates to curtailment and settlement on the two defined benefit pension plans in Mexico, driven by headcount reductions in excess of ten percent.
Schedule of asset allocation for the Company's defined benefit pension plans and the target allocation by asset category
The asset allocation for the Company’s defined benefit pension plans at March 31, 2020 and the target allocation for 2020, by asset category, are as follows:
Asset Category
 
Target
Allocation
(%)
 
Plan Assets at March 31, 2020
(%)
Insurance (1)
 
1
 
1
International equities
 
34
 
31
International bonds
 
61
 
62
Other
 
4
 
6
Total
 
100
 
100
______________________________________________________________________________
(1) Comprised of assets held by the defined benefit pension plan in Germany.
Schedule of other changes in plan assets and benefit obligations recognized in Accumulated other comprehensive income (loss)
Other changes in plan assets and benefit obligations recognized in Accumulated other comprehensive income (loss) are as follows (amounts in thousands):
 
 
Pension
 
Other Benefits
 
 
2020
 
2019
 
2018
 
2020
 
2019
 
2018
Current year actuarial (gain) loss
 
$
588

 
$
1,684

 
$
(184
)
 
$
(2
)
 
$
(81
)
 
$
64

Amortization of actuarial gain (loss)
 
(779
)
 
(511
)
 
(322
)
 
148

 
167

 
191

Current year prior service cost
 
792

 

 

 

 

 

Amortization of prior service cost
 
(83
)
 
(87
)
 
(87
)
 

 

 

Total recognized in other comprehensive income
 
$
518

 
$
1,086

 
$
(593
)
 
$
146

 
$
86

 
$
255

Total recognized in net periodic benefit cost and other comprehensive income (loss)
 
$
7,473

 
$
6,178

 
$
4,195

 
$
7

 
$
(70
)
 
$
76


Schedule of expected future benefit payments The Company expects to have benefit payments in the future as follows (amounts in thousands):
 
 
Expected benefit payments
 
 
2021
 
2022
 
2023
 
2024
 
2025
 
2026 - 2030
Pension benefits
 
$
6,438

 
$
7,893

 
$
7,353

 
$
9,154

 
$
9,866

 
$
52,682

Other benefits
 
48

 
43

 
38

 
33

 
28

 
85

Total
 
$
6,486

 
$
7,936

 
$
7,391

 
$
9,187

 
$
9,894

 
$
52,767


Schedule of weighted-average assumptions used to determine the projected benefit obligation at the measurement date and the net periodic cost for the pension and post-retirement plan
The following weighted-average assumptions were used to determine the projected benefit obligation at the measurement date and the net periodic cost for the pension and post-retirement plan (amounts in thousands except percentages):
 
 
Pension
 
Other Benefits
 
 
2020
 
2019
 
2020
 
2019
Projected benefit obligation:
 
 
 
 
 
 
 
 
Discount rate
 
1.2
%
 
1.2
%
 
2.5
%
 
3.3
%
Rate of compensation increase
 
3.5
%
 
3.5
%
 
%
 
%
Health care cost trend on covered charges
 


 


 
6.25%
decreasing to
ultimate trend
of 5.0% in 2025

 
6.5%
decreasing to
ultimate trend
of 5.0% in 2025

Net periodic benefit cost:
 
 
 
 
 
 
 
 
Discount rate
 
1.2
%
 
1.3
%
 
3.3
%
 
3.5
%
Rate of compensation increase
 
3.5
%
 
3.5
%
 
%
 
%
Expected return on plan assets
 
2.9
%
 
3.0
%
 
%
 
%
Health care cost trend on covered charges
 


 


 
6.5%
decreasing to
ultimate trend
of 5.0% in 2025

 
7.0%
decreasing to
ultimate trend of 5.0% in 2022


Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block]
The following table sets forth by level, within the fair value hierarchy as described in Note 1, the pension plan’s assets, required to be carried at fair value on a recurring basis as of March 31, 2020 and March 31, 2019 (amounts in thousands):
 
 
Fair Value
March 31,
2020
 
Fair Value Measurement Using
 
Fair Value
March 31,
2019
 
Fair Value Measurement Using
 
 
Level 1
 
Level 2 (1)
 
Level 3 (2)
 
Level 1
 
Level 2
 
Level 3
Cash and cash equivalents
 
$
96

 
$
96

 
$

 
$

 
$
319

 
$
319

 
$

 
$

Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
International equities
 
18,895

 

 
18,895

 

 
19,965

 

 
19,965

 

Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
International bonds
 
37,799

 

 
37,799

 

 
39,030

 

 
39,030

 

Insurance contracts
 
629

 

 

 
629

 
642

 

 

 
642

Diversified growth funds
 
3,782

 

 
3,782

 

 
3,946

 

 
3,946

 

 
 
$
61,201

 
$
96

 
$
60,476

 
$
629

 
$
63,902

 
$
319

 
$
62,941

 
$
642

______________________________________________________________________________
(1) Level 2 plan assets consist of pooled investment funds which are unquoted and have no restriction on redemption. Fair value was determined using daily, weekly, or monthly trading activity which derives the unit price of the pooled fund.
(2) Level 3 plan assets are invested in reinsurance contracts whose value is the sum of the actuarial reserve and the profit participation of each contract. The actuarial reserve is the sum of discounted cash flows associated with future benefits and premiums.
Summary of changes in the fair value of the defined benefit pension plan's Level 3 assets
The table below sets forth a summary of changes in the fair value of the defined benefit pension plan’s Level 3 assets for the fiscal years ended March 31, 2019 and March 31, 2020 (amounts in thousands):
Balance at March 31, 2018
$
697

Actual return on plan assets
20

Employer contributions
233

Benefits paid
(247
)
Foreign currency exchange rate change
(61
)
Balance at March 31, 2019
$
642

Actual return on plan assets
18

Employer contributions
226

Benefits paid
(241
)
Foreign currency exchange rate change
(16
)
Balance at March 31, 2020
$
629