Employee Benefit Plans

12 Months Ended

Mar. 31, 2021

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plans

Defined Benefit Plans

The Company has defined benefit pension plans that cover certain French and German employees. Most of these defined pension plans, which were acquired in the Atmel and Microsemi acquisitions, are unfunded. Plan benefits are provided in accordance with local statutory requirements. Benefits are based on years of service and employee compensation levels. Pension liabilities and charges are based upon various assumptions, updated annually, including discount rates, future salary increases, employee turnover, and mortality rates. The Company’s French pension plan provides for termination benefits paid to covered French employees only at retirement, and consists of approximately one to five months of salary. The Company's German pension plan provides for defined benefit payouts for covered German employees following retirement.

The change in projected benefit obligation and the accumulated benefit obligation, were as follows (in millions):

	Fiscal Year Ended March 31,
	2021			2020
Projected benefit obligation at the beginning of the year	$	70.0		$	72.7
Service cost	1.6			1.7
Interest cost	1.0			0.9
Actuarial losses (gains)	8.2			(2.6)
Benefits paid	(1.5)			(1.5)
Foreign currency exchange rate changes	3.7			(1.2)
Projected benefit obligation at the end of the year	$	83.0		$	70.0
Accumulated benefit obligation at the end of the year	$	76.3		$	65.1
Weighted average assumptions:
Discount rate	0.93		%	1.48		%
Rate of compensation increase	3.01		%	2.77		%

The Company's pension liability represents the present value of estimated future benefits to be paid. The discount rate is based on the quarterly average yield for Euros treasuries with a duration of 30 years, plus a supplement for corporate bonds (Euros, AA rating). Net actuarial losses (gains), which are included in accumulated other comprehensive loss in the Company's consolidated balance sheets, will be recognized as a component of net periodic cost over the average remaining service period.

Future estimated expected benefit payments for fiscal year 2022 through 2031 are as follows (in millions):

Fiscal Year Ending March 31,	Expected Benefit Payments
2022	$	1.6
2023	1.7
2024	2.2
2025	2.4
2026	2.6
2027 through 2031	14.6
Total	$	25.1

The Company's net periodic pension cost for fiscal 2022 is expected to be approximately $3.6 million.