RETIREMENT BENEFIT PLANS

Profit Sharing Plans

The Company maintains defined contribution profit sharing and 401(k) plans covering substantially all of the employees of the Company and its subsidiaries as of March 31, 2017. Annual contributions under the plan are determined by the Board of Directors of the Company. Consolidated expense related to the plans for the years ended March 31, 2017, 2016 and 2015 was $864,000, $758,000 and $697,000, respectively.

Postretirement Medical Plan

The Company administers a postretirement medical plan covering certain persons who are employees or former employees of a former subsidiary. The plan is unfunded and frozen to new participants. The following table provides a reconciliation of the benefit obligation for the postretirement medical plan (in thousands):



	For the Years Ended March 31,
	2017			2016
Benefit obligation at beginning of year	$	816		$	883
Interest cost	33			32
Actuarial loss (gain)	3			(39		)
Benefits paid	(65		)	(60		)
Benefit obligation at end of year	$	787		$	816

As of March 31, 2017, $65,000 of the benefit obligation was recorded in accrued other expenses and $722,000 was recorded in other long-term obligations in the consolidated balance sheet. As of March 31, 2016, $65,000 of the benefit obligation was recorded in accrued other expenses and $751,000 was recorded in other long-term obligations in the consolidated balance sheet.

The net loss recognized in accumulated other comprehensive loss at March 31, 2017 was $69,000, net of tax, and the actuarial loss expected to be amortized from accumulated other comprehensive loss into net periodic benefit cost during fiscal 2018 is approximately $3,000.

The assumptions used to develop the net periodic benefit cost for the years ended March 31, 2017, 2016 and 2015 were a discount rate of 4.25%, 3.75%, and 4.50%, respectively, and assumed health care cost trend rate of 9% (9% for 2016 and 9% for 2015) trending down to an ultimate rate of 5% in 2025. The assumption used to develop the benefit obligation as of the years ended March 31, 2017 and 2016 was a discount rate of 4% (4.25% in 2016). The discount rate is determined based on the average of the Citigroup Pension Liability Index, Moody's Long Term Corporate Bond Yield, and Corporate Bond Rate calculated by the Internal Revenue Service.

Net periodic benefit costs for the postretirement medical plan were $33,000, $32,000 and $35,000 for the years ended March 31, 2017, 2016 and 2015, respectively.

Pension Plan

The Company administers a defined benefit pension plan that was acquired through the acquisition of McCall and covers certain employees of its United Kingdom subsidiary. The plan covers employees who meet the eligibility requirements as defined. The Company's funding policy is to make the minimum annual contribution that is required by applicable regulations, plus such amounts as the Company may determine to be appropriate from time to time. The plan is frozen to future accrual of benefits.

Reconciliations of changes in the defined benefit obligation, fair value of plan assets and statement of funded status from the date of acquisition through March 31, 2017 are as follows (in thousands):



	For the Year Ended
	March 31, 2017
Change in benefit obligation:
Benefit obligation at December 13, 2016	$	4,482
Interest cost	32
Actuarial loss	178
Benefits paid	(639		)
Foreign currency impact	(26		)
Benefit obligation at end of year	$	4,027

Change in plan assets:
Fair value of assets at December 13, 2016	$	4,511
Actual return on plan assets	66
Employer contributions	19
Benefits paid	(639		)
Foreign currency impact	(28		)
Fair value of plan assets at end of year	$	3,929

Funded status at year end	$	(98	)

As of March 31, 2017, the net benefit obligation of $98,000 was recorded in other long-term obligations in the consolidated balance sheet.

The net loss recognized in accumulated other comprehensive loss at March 31, 2017 was $124,000, net of tax. There is no estimated net loss, prior service cost or transition obligation for the defined benefit pension plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost during fiscal 2018.

The components of net periodic pension benefit for the period ended March 31, 2017 is as follows (in thousands):



	For the Year Ended
	March 31, 2017
Interest cost	$	32
Expected return on plan assets	(42		)
Net periodic pension benefit	$	(10	)

The assumption used to develop the net periodic pension benefit for the period ended March 31, 2017 was a discount rate of 2.70%. The assumption used to develop the benefit obligation as of March 31, 2017 was a discount rate of 2.70%. The Company has estimated the long-term rate of return on plan assets based primarily on contractual agreements with an insurance company. This rate of return approximated 4% during fiscal 2017.

The Company's overall investment strategy is to outsource investment risk to an insurance company in return for a contractual rate of return. Funds are deposited with the insurance company in return for an agreed upon interest rate return on the principal balance.

The accounting guidance on fair value measurements specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques (Level 1, 2 and 3). See Note 10 for a discussion of the fair value hierarchy. The fair values of the pension plan assets represents a guaranteed investment contract with an insurance company at March 31, 2017. The guaranteed investment contract is a Level 3 asset.

The Company expects to make contributions of $63,000 to the pension plan in fiscal 2018. The following table reflects the total benefits expected to be paid from the pension plan (in thousands):



2018	$	552
2019	450
2020	134
2021	19
2022	58
2023-2027	740