Employee Benefits

12 Months Ended

Apr. 24, 2021

Retirement Benefits [Abstract]

Employee Benefits

Employee Benefits

The table below summarizes the total costs associated with our employee retirement and welfare plans.

	Fiscal Year Ended
	(52 weeks)		(52 weeks)		(52 weeks)
(Amounts in thousands)	4/24/2021		4/25/2020		4/27/2019
401(k) Retirement Plan	$	7,313	$	9,380	$	9,128
Performance Compensation Retirement Plan	3,810		1,115		3,084
Deferred Compensation Plan	24		719		284
Non-Qualified Defined Benefit Retirement Plan (1)	803		796		805
Net Periodic Pension Cost (2)	—		—		35,998

(1)Primarily related to interest cost.

(2)Refer below for breakdown of net periodic pension cost.

401(k) Retirement Plan. Voluntary 401(k) retirement plans are offered to eligible employees within certain U.S. operating units. For most operating units, we make matching contributions based on specific formulas. On January 1, 2019, we increased our matching contributions for eligible employees which resulted in an additional expense of $1.7 million in fiscal 2019. As a result of the increased matching contributions, supplemental contributions awarded to eligible employees based on achievement of operating performance targets during fiscal 2019 were discontinued starting fiscal 2020. Additionally, on March 29, 2020, we announced a temporary freeze on 401(k) matching contributions as part of our COVID-19 action plan. During the second quarter of fiscal 2021 we reinstated 401(k) match for employees.

Performance Compensation Retirement Plan. A performance compensation retirement plan ("PCRP") is maintained for eligible highly compensated employees. The Company contributions to the plan are based on achievement of performance targets. Employees vest in these contributions if they achieve certain age and years of service with the Company, and can elect to receive benefit payments over a period ranging between five to twenty years after they leave the Company. Further information related to the plan is as follows:

(Amounts in thousands)	4/24/2021		4/25/2020
Short-term obligation included in other current liabilities	$	716	$	638
Long-term obligation included in other long-term liabilities	15,194		12,492

Executive Deferred Compensation Plan. We maintain an executive deferred compensation plan for eligible highly compensated employees, an element of which may include Company contributions. Further information related to the plan is as follows:

(Amounts in thousands)	4/24/2021		4/25/2020
Plan obligation included in other long-term liabilities	$	26,548	$	22,282
Cash surrender value on life insurance contracts included in other long-term assets (1)	41,133		34,562
Mutual funds held by plan included in other current assets (2)	10		76

(1)Life insurance contracts are related to the Executive Deferred Compensation Plan and the PCRP.

(2)Mutual funds are considered trading securities.

Non-Qualified Defined Benefit Retirement Plan. We maintain a non-qualified defined benefit retirement plan for certain former salaried employees. We hold available-for-sale marketable securities to fund future obligations of this plan in a Rabbi trust (refer to Note 8, Investments, and Note 20, Fair Value Measurements, for additional information on these investments). We are

not required to fund the non-qualified defined benefit retirement plan in fiscal 2022; however, we have the discretion to make contributions to the Rabbi trust. Further information related to the plan is as follows:

(Amounts in thousands)	4/24/2021			4/25/2020
Plan obligation included in long-term liabilities	$	15,783		$	16,846
Discount rate used to determine obligation	3.0		%	2.8		%

	Fiscal Year Ended
	(52 weeks)		(52 weeks)		(52 weeks)
(Amounts in thousands)	4/24/2021		4/25/2020		4/27/2019
Actuarial loss recognized in AOCI	$	347	$	218	$	190
Benefit payments (1)	1,091		1,091		1,091

(1)Benefit payments are scheduled to be between $1.0 million and $1.1 million annually for the next 10 years.

Defined Benefit Pension Plan. During the fourth quarter of fiscal 2019, we terminated our defined benefit pension plan for eligible factory hourly employees in our La-Z-Boy operating unit. In connection with the plan termination, we settled all future obligations under the plan through a combination of lump-sum payments to eligible participants who elected to receive them, and the transfer of any remaining benefit obligations under the plan to a highly rated insurance company.

As a result of these actions, we recognized a non-cash pre-tax pension termination charge of $32.7 million during the fourth quarter of fiscal 2019. During the second quarter of fiscal 2020, we received a pre-tax refund of $1.9 million from the insurance company, representing an overpayment of the expected benefit obligations that were settled during the fourth quarter of fiscal 2019. Both the initial charge and the refund were recorded as pension termination refund (charge) in our consolidated statement of income.

There were no net periodic pension costs associated with the terminated pension plan in the fiscal years ended April 24, 2021, or April 25, 2020. For the fiscal year ended April 27, 2019, net periodic pension costs were as follows:

	Fiscal Year Ended
	(52 weeks)
(Amounts in thousands)	4/27/2019
Service cost	$	851
Interest cost	4,464
Expected return on plan assets	(4,544)
Net amortization	2,556
Pension termination charge	32,671
Net periodic pension cost	$	35,998

The components of net periodic pension cost, other than the service cost, were included in other income (expense), net in our consolidated statement of income. Service cost was recorded in cost of sales in our consolidated statement of income.