Employee Benefit Plans

401(k) Retirement Plan

The Company sponsors a single 401(k) retirement plan covering substantially all full-time, non-union employees, as well as union employees at two of its manufacturing facilities. Under the plan, employees are allowed to contribute up to 60 percent of eligible earnings to the plan, up to statutory limits. The Company contributes a match of 100 percent of the first one percent contributed and 50 percent of the next five percent contributed on eligible compensation that non-union employees contribute and according to contract terms for union employees. The Company match was $7.5 million in fiscal 2018, $6.2 million in fiscal 2017 and $5.4 million in fiscal 2016.

Deferred Compensation Plan

The Company maintains a plan that allows participants to defer compensation. The deferred compensation liability was $10.7 million and $7.7 million at March 3, 2018 and March 4, 2017, respectively. The Company has investments in corporate-owned life insurance policies (COLI) of $10.8 million and money market funds (classified as cash equivalents) of $0.4 million with the intention of utilizing them as long-term funding sources for this plan. The COLI assets are recorded at their net cash surrender values and are included in other non-current assets in the consolidated balance sheet.

Plans under Collective Bargaining Agreements

We contribute to various multi-employer union retirement plans, which provide retirement benefits to the majority of our union employees; none of the plans are considered significant. The total contribution to these plans in fiscal 2018, 2017 and 2016 was $2.9 million, $3.9 million and $3.6 million, respectively.

Pension Plan

The Company sponsors the Tubelite Inc. Hourly Employees' Pension Plan, a defined-benefit pension plan that was frozen to new entrants in fiscal 2004, with no additional benefits accruing to plan participants after such time.

Officers' Supplemental Executive Retirement Plan (SERP)

The Company sponsors an unfunded SERP for the benefit of certain executives, a defined-benefit pension plan that was frozen to new entrants in fiscal 2009, with no additional benefits accruing to plan participants after such time.

Obligations and Funded Status of Defined-Benefit Pension Plans

The following tables present reconciliations of the benefit obligation of the defined-benefit pension plans and the funded status of the defined-benefit pension plans. The Tubelite plan uses a measurement date as of the calendar month-end closest to our fiscal year-end, while the SERP uses a measurement date aligned with our fiscal year-end.



(In thousands)	2018			2017
Change in projected benefit obligation
Benefit obligation beginning of period	$	14,492		$	14,900
Interest cost	531			555
Actuarial (gain) loss	(175		)	54
Benefits paid	(1,014		)	(1,017		)
Benefit obligation at measurement date	13,834			14,492
Change in plan assets
Fair value of plan assets beginning of period	$	4,185		$	4,261
Actual return on plan assets	10			73
Company contributions	988			868
Benefits paid	(1,014		)	(1,017		)
Fair value of plan assets at measurement date	4,169			4,185
Underfunded status	$	(9,665	)	$	(10,307	)

The underfunded status of our plans was recognized in the consolidated balance sheets:



(In thousands)	2018			2017
Current liabilities	$	(668	)	$	(672	)
Other non-current liabilities	(8,997		)	(9,635		)
Total	$	(9,665	)	$	(10,307	)

The following was included in accumulated other comprehensive loss and has not yet been recognized as a component of net periodic benefit cost:



(In thousands)	2018		2017
Net actuarial loss	$	5,325	$	5,696

The amount recognized in comprehensive earnings, net of tax expense, was:



(In thousands)	2018		2017
Net actuarial gain	$	284	$	130

Components of the defined-benefit pension plans' net periodic benefit cost:



(In thousands)	2018			2017			2016
Interest cost	$	531		$	555		$	566
Expected return on assets	(41		)	(41		)	(137		)
Amortization of unrecognized net loss	228			225			249
Net periodic benefit cost	$	718		$	739		$	678

Total net periodic pension benefit cost is expected to be approximately $0.7 million in fiscal 2019. The estimated net actuarial loss for the defined-benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost for fiscal 2019 is $0.2 million, net of tax benefit.

Additional Information

Assumptions



Benefit Obligation Weighted-Average Assumptions	2018		2017		2016
Discount rate	3.80	%	3.80	%	3.85	%



Net Periodic Benefit Expense Weighted-Average Assumptions	2018		2017		2016
Discount rate	3.80	%	3.85	%	3.60	%
Expected long-term rate of return on assets	2.00	%	2.00	%	2.00	%

Discount rate. The discount rate reflects the current rate at which the defined-benefit plans' pension liabilities could be effectively settled at the end of the year based on the measurement date. The discount rate was determined by matching the expected benefit payments to payments from the Principal Discount Yield Curve. There are no known or anticipated changes in the discount rate assumption that will have a significant impact on pension expense in fiscal 2019.

Expected return on assets. To develop the expected long-term rate of return on assets, we considered historical long-term rates of return achieved by the plan investments, the plan's investment strategy, and current and projected market conditions. In accordance with its policy, the assets of the Tubelite plan are invested in a short-term bond fund and carried at fair value based on prices from recent trades of similar securities, which would be classified as Level 2 in the valuation hierarchy. We do not maintain assets intended for the future use of the SERP.

Contributions

Company contributions to the plans for each of fiscal 2018 and 2017 totaled $1.0 million, which equaled or exceeded the minimum funding requirement.

Estimated Future Benefit Payments

The following benefit payments, which reflect expected future service, are expected to be paid by the plans:



(In thousands)	2019		2020		2021		2022		2023		2024-2028
Estimated future benefit payments	$	1,048	$	1,021	$	1,004	$	975	$	945	$	4,387