Employee Benefit Plans

12 Months Ended

Mar. 31, 2017

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plans

401(k) Plan

We maintain 401(k) plans for employees meeting certain service requirements. Generally, the plans allow eligible employees to contribute a portion of their compensation, and we match 100% of the first 1% of the employee's pre-tax contributions and 50% of the next 5% of the employee's pre-tax contributions. We may also make discretionary contributions each year for the benefit of all eligible employees under the plans. Agilysys matching contributions were $1.4 million, $1.5 million, and $1.3 million in fiscal 2017, 2016, and 2015, respectively.

Endorsement Split-Dollar Life Insurance

Agilysys provides certain former executives with life insurance benefits through endorsement split-dollar life insurance arrangements. We entered into non-cancelable agreements with each of the former executives, whereby we must maintain the life insurance policy for a specified amount and split a portion of the policy benefits with their designated beneficiary. In fiscal 2016, we increased the value of two of these policies by $0.5 million due to the anticipated redemption and recorded the benefit in "Other (income) expenses, net" in the accompanying Consolidated Statements of Operations. In the first quarter of fiscal 2015, one policy was redeemed for $2.0 million. During fiscal 2017, we received $2.2 million related to the death benefit due to us on redemption of two of these policies.

Our investment in these corporate-owned life insurance policies were recorded at their cash surrender value, which approximates fair value at the balance sheet date. In the consolidated balance sheets as of March 31, 2017, the cash surrender value of $0.8 million for the remaining policies were held in “Other non-current assets,” and the present value of future proceeds owed to those executives' designated beneficiary of $0.1 million, which approximates fair value, were recorded within "Other non-current liabilities."

At March 31, 2016, the aggregate cash surrender value of the underlying corporate-owned split-dollar life insurance contracts which were classified within “Other current assets” and "Other non-current assets” in our Consolidated Balance Sheets was $1.9 million and $0.8 million (net of policy loans of $0.1 million), respectively.

Changes in the cash surrender value of these policies related to gains and losses incurred on these investments are classified within “Other (income) expenses, net” in the accompanying Consolidated Statements of Operations. We recorded a gain of $18,000 dollars in fiscal 2017, a gain of $0.6 million in fiscal 2016 and a gain of $0.1 million in fiscal 2015 related to the corporate-owned life insurance policies.