PENSION BENEFIT PLANS

12 Months Ended

Mar. 31, 2021

Retirement Benefits [Abstract]

PENSION BENEFIT PLANS

PENSION BENEFIT PLANS

401(k) Plan

The Company has a defined contribution program for certain employees that is qualified under Section 401(k) of the Internal Revenue Code of 1986, as amended. The Company matches 50% of the employee's contribution up to 6% of the employee’s salary. NetScout contributions vest at a rate of 25% per year of service. NetScout made matching contributions of $6.7 million, $6.7 million and $6.6 million to the plan for the fiscal years ended March 31, 2021, 2020 and 2019, respectively.

Defined Benefit Pension Plan

Certain of the Company's non-U.S. employees participate in certain noncontributory defined benefit pension plans. None of the Company's employees in the U.S. participate in any noncontributory defined benefit pension plans. In general, these plans are funded based on considerations relating to legal requirements, underlying asset returns, the plan's funded status, the anticipated deductibility of the contribution, local practices, market conditions, interest rates and other factors.

The components of the change in benefit obligation of the pension plan is as follows (in thousands):

	March 31,		March 31,
	2021		2020
Benefit obligation, at beginning of year	$	32,805	$	34,895
Service cost	333		341
Interest cost	667		603
Benefits paid and other	(400)		(359)
Actuarial loss (gain)	2,205		(1,644)
Foreign exchange rate impact	1,976		(1,031)
Benefit obligation, at end of year	$	37,586	$	32,805

The reconciliation of the beginning and ending balances of the fair value of the assets of the pension plan is as follows (in thousands):

	March 31,		March 31,
	2021		2020
Fair value of plan assets, at beginning of year	$	—	$	—
Employer direct benefit payments	400		359
Benefits paid and other	(400)		(359)
Fair value of plan assets, at end of year	$	—	$	—

The following sets forth the components of the Company's net periodic pension cost of the noncontributory defined benefit pension plans for the fiscal years ended March 31, 2021, 2020, and 2019 (in thousands):

	Fiscal Year Ended March 31,
	2021		2020		2019
Service cost	$	333	$	341	$	304
Interest cost	667		603		704
Net periodic pension cost	$	1,000	$	944	$	1,008

Weighted average assumptions used to determine net periodic pension cost at date of measurement:

	March 31,		March 31,		March 31,
	2021		2020		2019
Discount rate	1.60	%	1.90	%	1.80	%
Rate of compensation increase	3.00	%	3.00	%	3.00	%

As of March 31, 2021, unrecognized actuarial loss of $2.2 million ($1.5 million, net of tax) which have not yet been recognized in net periodic pension cost are included in accumulated other comprehensive income (loss). The unrecognized actuarial gains and losses are calculated as the difference between the actuarially determined projected benefit obligation and the value of the plan assets less accrued pension costs. None of this amount is expected to be recognized in net periodic pension costs during the fiscal year ending March 31, 2021. No plan assets are expected to be returned to the Company during the fiscal year ending March 31, 2021.

Expected Contributions

During the fiscal year ended March 31, 2021, the Company contributed $400 thousand to its defined benefit pension plan. The following sets forth benefit payments, which reflect expected future service, as appropriate, expected to be paid by the plan in the periods indicated (in thousands):

2022	$	485
2023	$	553
2024	$	605
2025	$	716
2026	$	932
2027 - 2031	$	5,656