Employee Benefit Plans |
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Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Defined Contribution Plan The Company sponsors the Employees’ Capital Accumulation Plan, or ECAP, which is a qualified defined contribution plan that covers eligible U.S. and international employees. The ECAP provides for distributions, subject to certain vesting provisions, to participants by reason of retirement, death, disability, or termination of employment. Effective April 1, 2014, the Company transitioned from a discretionary employer contribution to an annual matching contribution of up to 6% of eligible annual income as determined by the Internal Revenue Code for the ECAP. Total expense recognized under ECAP for fiscal 2017, 2016, and 2015 was $116.6 million, $108.7 million, and $110.7 million, respectively, and the Company-paid contributions were $114.8 million, $107.5 million, and $124.8 million, respectively. Defined Benefit Plan and Other Postretirement Benefit Plans The Company provides postretirement healthcare benefits to former officers under a medical indemnity insurance plan, with premiums paid by the Company. This plan is referred to as the Officer Medical Plan. The Company also established a non-qualified defined benefit plan for all officers in May 1995, or the Retired Officers' Bonus Plan, which pays a lump-sum amount of $10,000 per year of service as an officer, provided the officer meets retirement vesting requirements. The Company also provides a fixed annual allowance after retirement to cover financial counseling and other expenses. The Retired Officers' Bonus Plan is not salary related, but rather is based primarily on years of service. In the fourth quarter of fiscal 2017, the Company adopted a new plan which will provide for a one-time, lump sum retirement payment of one month’s salary when a vice-president retires from the Company, effective April 1, 2017. This is referred to as the Retired Vice-President Bonus Plan. The Company recognizes a liability for the defined benefit plans' underfunded status, measures the defined benefit plans' obligations that determine its funded status as of the end of the fiscal year, and recognizes as a component of accumulated other comprehensive income the changes in the defined benefit plans' funded status that are not recognized as components of net periodic benefit cost.The components of net postretirement medical expense for the Officer Medical Plan were as follows:
The weighted-average discount rate used to determine the year-end benefit obligations was as follows:
Assumed healthcare cost trend rates for the Officer Medical Plan at March 31, 2017 and 2016 were as follows:
Assumed healthcare cost trend rates have a significant effect on the amounts reported for the healthcare plans. A one-percentage-point change in assumed healthcare cost trend rates calculated as of March 31, 2017 would have the following effects:
Total defined benefit plan expense, consisting of service, interest, and net actuarial gain associated with the Retired Officers' Bonus Plan was $0.7 million, $0.7 million, and $0.7 million for fiscal 2017, 2016, and 2015, respectively. Benefits paid associated with the Retired Officers’ Bonus Plan were $0.9 million, $0.3 million, and $1.3 million for fiscal 2017, 2016, and 2015, respectively. The end-of-period benefit obligation of $4.4 million and $4.5 million as of March 31, 2017 and 2016, respectively, is included in postretirement obligations within other long-term liabilities in the accompanying consolidated balance sheets. The projected benefit obligation associated with the Retired Vice-President Bonus Plan was $1.0 million as of March 31, 2017, which was recorded as postretirement obligations within other long-term liabilities in the accompanying consolidated balance sheets. Accumulated other comprehensive loss for fiscal 2017 includes unrecognized gross actuarial gain and prior service cost of $1.1 million, reduced by taxes of $0.4 million, that has not yet been recognized in net periodic pension cost for fiscal 2017 for the Retired Officers’ Bonus Plan, the Officer Medical Plan, and the Retired Vice-President Bonus Plan. Accumulated other comprehensive loss includes unrecognized gross actuarial gain of $0.7 million, reduced by taxes of $0.3 million for fiscal 2016 that has not yet been recognized in net periodic pension cost for the Retired Officers’ Bonus Plan and the Officer Medical Plan. The amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic cost in fiscal 2018 are $2.3 million of net actuarial loss, $0.1 million of net prior service cost, and $0 of net transition (asset) obligation. The changes in the benefit obligation, plan assets, and funded status of the Officer Medical Plan were as follows:
As of March 31, 2017 and 2016, the unfunded status of the Officer Medical Plan was $118.1 million and $114.0 million, respectively, which is included in other long-term liabilities in the accompanying consolidated balance sheets. Funded Status for Defined Benefit Plans Generally, annual contributions are made at such times and in amounts as required by law and may, from time to time, exceed minimum funding requirements. The Retired Officers’ Bonus Plan and the Retired Vice-President Bonus Plan are unfunded plans and contributions are made as benefits are paid. As of March 31, 2017 and 2016, there were no plan assets for either the Retired Officers’ Bonus Plan or the Retired Vice-President Bonus Plan and therefore, the accumulated liability of $5.4 million and $4.5 million, respectively, is unfunded. The liability will be distributed in a lump-sum payment as each officer or vice-president retires. The expected future medical benefit payments and related contributions are as follows:
Long-term Disability Benefits The Company offers medical and dental benefits to inactive employees (and their eligible dependents) on long-term disability. These benefits do not vary with an employee's years of service; therefore, the Company is required to accrue the costs of the benefits at the date the inactive employee becomes disability eligible and elects to participate in the benefit. The accrued cost for such benefits is calculated using an actuarial estimate. As discussed in Note 2, the Company identified misstatements associated with these benefits and as result, the effects of the immaterial misstatements have been corrected in the current period. The accrued cost for these benefits was $22.5 million at March 31, 2017 and is presented in other long-term liabilities. The cumulative effect of the changes in the historical actuarial gains and losses, including for fiscal 2017, has been recognized in earnings for $6.9 million and is recorded in general and administrative expenses. |