Termination of Noncontributory Pension Plan

6 Months Ended

Jul. 29, 2023

Retirement Benefits [Abstract]

Termination of Noncontributory Pension Plan

10. Termination of Noncontributory Pension Plan

In connection with the acquisition of Casual Male Corp. in May 2002, the Company assumed the assets and liabilities of the Casual Male Noncontributory Pension Plan “Casual Male Corp. Retirement Plan”, which was previously known as the J. Baker, Inc. Qualified Plan (the “Pension Plan”). Casual Male Corp. froze all future benefits under this plan on May 1, 1997.

On May 3, 2023, the Audit Committee approved the termination of the Pension Plan, which was then approved and ratified by the Board of Directors on May 4, 2023 with a final termination approval on June 8, 2023. On July 1, 2023, the Company completed a partial settlement through the purchase of nonparticipating annuities. The Company made a cash contribution during the first six months of fiscal 2023 of $1.6 million. The remaining pension liability, net of plan assets, at July 29, 2023 is approximately $0.2 million. The remaining plan assets are invested in short-term investments and cash equivalents.

In the second quarter of fiscal 2023, the Company recognized a charge of $4.2 million, representing a pro-rata portion of the unrealized loss in "Accumulated Other Comprehensive Loss" on the Consolidated Balance Sheet. The Company expects to settle the remaining obligation and terminate the Pension Plan by the end of fiscal 2023, at which time the Company will recognize the remaining unrealized loss that is part of "Accumulated Other Comprehensive Loss."

Net periodic pension cost for the three and six months ended July 29, 2023 and July 30, 2022 was as follows:

	For the three months ended						For the six months ended
	July 29, 2023			July 30. 2022			July 29, 2023			July 30. 2022
Net periodic pension cost:	(in thousands)
Interest cost on projected benefit obligation	$	129		$	102		$	261		$	207
Expected return on plan assets		(160	)		(178	)		(300	)		(362	)
Amortization of unrecognized loss		65			68			131			135
Loss on pension plan termination		4,174			—			4,174			—
Net periodic pension cost (income)	$	4,208		$	(8	)	$	4,266		$	(20	)

Assumptions used were as follows:

	For the six months ended
	July 29, 2023			July 30. 2022
Discount rate		5.2	%		3.0	%
Expected return on plan assets		5.1	%		6.5	%