RETIREMENT PLANS

Defined Contribution Plans

We have a Savings Plus Plan (the "401k Plan") that is a 401(k) plan that allows our U.S. employees to accumulate savings on a pre-tax basis. In addition, matching contributions are made to the 401k Plan based upon pre-established rates. Our matching contributions amounted to approximately $5.5 million, $5.1 million and $5.4 million in fiscal 2018, 2017 and 2016, respectively. Upon Board approval, additional discretionary contributions can also be made. No discretionary contributions were made for the 401k Plan in fiscal 2018, 2017, or 2016.

Some of our subsidiaries also have defined contribution plans, to which both the employee and the employer make contributions. The employer contributions to these plans totaled $0.7 million in fiscal 2018 and $0.8 million in both fiscal 2017 and 2016.

Defined Benefit Plans

ASC Topic 715, Compensation — Retirement Benefits, 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 post retirement plan in the year in which the changes occur. Accordingly, the Company is required to report changes in its funded status in comprehensive loss on its consolidated statement of stockholders’ equity and consolidated statement of comprehensive income (loss).

Benefits under these plans are generally based on either career average or final average salaries and creditable years of service as defined in the plans. The annual cost for these plans is determined using the projected unit credit actuarial cost method that includes actuarial assumptions and estimates that are subject to change.

Some of the our foreign subsidiaries have defined benefit pension plans covering substantially all full time employees at those subsidiaries. Net periodic benefit costs for the plans in the aggregate include the following components:



(In thousands)	2018			2017			2016
Service cost	$	2,651		$	3,404		$	3,560
Interest cost on benefit obligation	293			287			371
Expected return on plan assets	(215		)	(308		)	(330		)
Actuarial loss	186			532			598
Amortization of unrecognized prior service cost	(121		)	(119		)	(38		)
Amortization of unrecognized transition obligation	—			37			42
Plan settlements and curtailments	(445		)	289			—
Totals	$	2,349		$	4,122		$	4,203

The activity under those defined benefit plans are as follows:



(In thousands)	March 31, 2018			April 1, 2017
Change in Benefit Obligation:
Benefit Obligation, beginning of year	$	(31,345	)	$	(37,919	)
Service cost	(2,651		)	(3,404		)
Interest cost	(293		)	(287		)
Benefits paid	518			1,291
Actuarial gain	2,381			4,615
Employee and plan participants contribution	(3,441		)	(2,463		)
Plan settlements and curtailments	5,064			6,960
Foreign currency changes	(709		)	(138		)
Benefit obligation, end of year	$	(30,476	)	$	(31,345	)
Change in Plan Assets:
Fair value of plan assets, beginning of year	$	17,285		$	19,852
Company contributions	1,542			1,788
Benefits paid	(434		)	(1,192		)
(Loss) gain on plan assets	(200		)	414
Employee and plan participants contributions	3,490			2,424
Plan settlements	(4,531		)	(6,850		)
Foreign currency changes	(830		)	849
Fair value of plan assets, end of year	$	16,322		$	17,285
Funded Status^*	$	(14,154	)	$	(14,060	)
Unrecognized net actuarial loss	2,187			4,319
Unrecognized prior service cost	(698		)	(1,019		)
Net amount recognized	$	(12,665	)	$	(10,760	)
^* Substantially all of the unfunded status is non-current

One of the benefit plans is funded by benefit payments made by the Company through the purchase of reinsurance contracts that do not qualify as plan assets under ASC Topic 715. Accordingly that plan has no assets included in the information presented above. The total liability for this plan was $9.9 million and $8.8 million as of March 31, 2018 and April 1, 2017, respectively, and the total asset value associated with the reinsurance contracts was $6.5 million and $5.4 million at March 31, 2018 and April 1, 2017, respectively.

The accumulated benefit obligation for all plans was $29.6 million and $28.7 million for the fiscal year ended March 31, 2018 and April 1, 2017, respectively. There were no plans where the plan assets were greater than the accumulated benefit obligation as of March 31, 2018 and April 1, 2017.

The components of the change recorded in our accumulated other comprehensive loss related to our defined benefit plans, net of tax, are as follows (in thousands):



Balance, March 28, 2015	$	(8,923	)
Obligation at transition	33
Actuarial loss	681
Prior service cost	717
Balance as of April 2, 2016	$	(7,492	)
Obligation at transition	32
Actuarial loss	5,126
Prior service cost	62
Balance as of April 1, 2017	$	(2,272	)
Actuarial loss	1,922
Prior service cost	(125		)
Plan settlements and curtailments	152
Balance as of March 31, 2018	$	(323	)

We expect to amortize $0.2 million from accumulated other comprehensive loss to net periodic benefit cost during fiscal 2019.

The weighted average rates used to determine the net periodic benefit costs and projected benefit obligations were as follows:



	2018		2017		2016
Discount rate	1.07	%	0.76	%	0.72	%
Rate of increased salary levels	1.73	%	1.43	%	1.58	%
Expected long-term rate of return on assets	0.90	%	1.10	%	1.20	%

Assumptions for expected long-term rate of return on plan assets are based upon actual historical returns, future expectations of returns for each asset class and the effect of periodic target asset allocation rebalancing. The results are adjusted for the payment of reasonable expenses of the plan from plan assets.

We have no other material obligation for post-retirement or post-employment benefits.

Our investment policy for pension plans is to balance risk and return through a diversified portfolio to reduce interest rate and market risk. Maturities are managed so that sufficient liquidity exists to meet immediate and future benefit payment requirements.

ASC Topic 820, Fair Value Measurements and Disclosures, provides guidance for reporting and measuring the plan assets of our defined benefit pension plan at fair value as of March 31, 2018. Using the same three-level valuation hierarchy for disclosure of fair value measurements as described in Note 11, Derivatives and Fair Value Measurements, all of the assets of the Company’s plan are classified within Level 2 of the fair value hierarchy because the plan assets are primarily insurance contracts.

Expected benefit payments for both plans are estimated using the same assumptions used in determining the company’s benefit obligation at March 31, 2018. Benefit payments will depend on future employment and compensation levels, average years employed and average life spans, among other factors, and changes in any of these factors could significantly affect these estimated future benefit payments.

Estimated future benefit payments are as follows:



(In thousands)
Fiscal 2019	$	2,770
Fiscal 2020	1,351
Fiscal 2021	1,364
Fiscal 2022	1,529
Fiscal 2023	1,441
Fiscal 2024-2027	6,421
	$	14,876

The Company's contributions for fiscal 2019 are expected to be consistent with the current year.