Termination of Retirement Plans

9 Months Ended

Oct. 28, 2023

Retirement Benefits [Abstract]

Termination of Retirement Plans

9. Termination of Retirement Plans

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 nine months of fiscal 2023 of $1.7 million. The remaining pension liability, net of plan assets, at October 28, 2023 was approximately $0.1 million. The remaining plan assets are invested in short-term investments and cash equivalents.

Results for the nine months ended October 28, 2023, included a charge of $4.2 million recorded in the second quarter, 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 under the Pension Plan by the end of fiscal 2023, at which time the Company will recognize the remaining unrealized loss, including any remaining tax effects, that is part of "Accumulated Other Comprehensive Loss."

Net periodic pension cost for the three and nine months ended October 28, 2023 and October 29, 2022 was as follows:

	For the three months ended						For the nine months ended
	October 28, 2023			October 29, 2022			October 28, 2023			October 29, 2022
Net periodic pension cost:	(in thousands)
Interest cost on projected benefit obligation	$	131		$	102		$	392		$	309
Expected return on plan assets		(150	)		(179	)		(450	)		(541	)
Amortization of unrecognized loss		66			68			197			203
Loss on pension plan termination					—			4,174			—
Net periodic pension cost (income)	$	47		$	(9	)	$	4,313		$	(29	)

Assumptions used were as follows:

	For the three and nine months ended
	October 28, 2023			October 29, 2022
Discount rate		5.2	%		3.0	%
Expected return on plan assets		5.1	%		6.5	%

Supplemental Executive Retirement Plan ("SERP")

In connection with the acquisition of Casual Male Corp. in May 2002, the Company also assumed the liability of the Casual Male Supplemental Executive Retirement Plan.

On May 3, 2023, the Audit Committee approved the termination of the SERP, which was then approved and ratified by the Board of Directors on May 4, 2023. During the third quarter of fiscal 2023, the Company completed the termination of the SERP though the purchase of a nonparticipating annuity. In connection with that termination, during the third quarter of fiscal 2023, the Company made a cash contribution of $0.4 million and recognized a loss on the termination of the plan of $57,000, which included the recognition of the unrealized loss of $31,000 in Accumulated Other Comprehensive Loss