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Defined Benefit Plans
 12 Months Ended
Jan. 30, 2021
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
Defined Benefit Plans Defined Benefit Plans
The Company maintains defined benefit plans for certain employees primarily in the U.S. and Switzerland. In accordance with authoritative guidance for defined benefit pension and other postretirement plans, an asset for a plan’s over funded status or a liability for a plan’s underfunded status is recognized in the consolidated balance sheets; plan assets and obligations that determine the plan’s funded status are measured as of the end of the Company’s fiscal year; and changes in the funded status of defined benefit postretirement plans are recognized in the year in which they occur. Such changes are reported in other comprehensive income (loss) as a separate component of stockholders’ equity.
The Company’s pension obligations and related costs are calculated using actuarial concepts, within the authoritative guidance framework, and are considered Level 3 inputs as defined in Note 21. The Company uses the corridor approach to amortize unrecognized actuarial gains or losses over the average remaining service life of active participants. The life expectancy, estimated retirement age, discount rate, estimated future compensation and expected return on plan assets are important elements of expense and/or liability measurement. These critical assumptions are evaluated annually which enables expected future payments for benefits to be stated at present
value on the measurement date. If actual results are not consistent with actuarial assumptions, the amounts recognized for the defined benefit plans could change significantly.
Supplemental Executive Retirement Plan
On August 23, 2005, the Board of Directors of the Company adopted a Supplemental Executive Retirement Plan (“SERP”) which became effective January 1, 2006. The SERP provides select employees who satisfy certain eligibility requirements with certain benefits upon retirement, termination of employment, death, disability or a change in control of the Company, in certain prescribed circumstances.
As a non-qualified pension plan, no dedicated funding of the SERP is required; however, the Company has made periodic payments into insurance policies held in a rabbi trust to fund the expected obligations arising under the non-qualified SERP. The amount of any future payments into the insurance policies, if any, may vary depending on investment performance of the trust. The cash surrender values of the insurance policies were $72.1 million and $67.7 million as of January 30, 2021 and February 1, 2020, respectively, and were included in other assets in the Company’s consolidated balance sheets. As a result of changes in the value of the insurance policy investments, the Company recorded unrealized gains (losses) of $6.1 million, $7.6 million and $(1.1) million in other income (expense) during fiscal 2021, fiscal 2020 and fiscal 2019, respectively.
The Company assumed a discount rate of approximately 2.3% and 2.5% for the years ended January 30, 2021 and February 1, 2020, respectively, as part of the actuarial valuation performed to calculate the projected benefit obligation, based on the timing of cash flows expected to be made in the future to the participants, applied to high quality yield curves. The Company also considers recent updates to the mortality tables and mortality improvement scale published by the Society of Actuaries in developing its best estimate of the expected mortality rates for its plan participants.
Aggregate benefits projected to be paid in the next five fiscal years are approximately $1.9 million in fiscal 2022, $1.9 million in fiscal 2023, $1.8 million in fiscal 2024, $3.7 million in fiscal 2025 and $3.7 million in fiscal 2026. Aggregate benefits projected to be paid in the five fiscal years following fiscal 2026 amount to $17.8 million.
Foreign Pension Plans
In certain foreign jurisdictions, primarily in Switzerland, the Company is required to guarantee the returns on Company sponsored defined contribution plans in accordance with local regulations. These plans are typically government-mandated defined contribution plans that provide employees with a minimum investment return, and as such, are treated under pension accounting in accordance with authoritative guidance. The minimum investment return for our Swiss pension plan was 1.00% during calendar 2020 and calendar 2019. Under the Swiss pension plan, both the Company and certain of its employees with annual earnings in excess of government determined amounts are required to make contributions into a fund managed by an independent investment fiduciary. The Company’s contributions must be made in an amount at least equal to the employee’s contribution. Minimum employee contributions are based on the respective employee’s age, salary and gender.
As of January 30, 2021 and February 1, 2020, actuarial assumptions used by the Company to calculate the projected benefit obligation and the fair value of the plans assets related to its Swiss pension plan included discount rates of 0.05% and (0.15)%, respectively, and expected returns on plan assets of 0.50% and 0.50%, respectively.
The components of net periodic defined benefit pension cost to accumulated comprehensive income (loss) for fiscal 2021, fiscal 2020 and fiscal 2019 related to the Company’s defined benefit plans are as follows (in thousands):
Year Ended January 30, 2021
SERPForeign Pension
Plans		Total
Service cost$— $3,155 $3,155 
Interest cost1,277 32 1,309 
Expected return on plan assets— (186)(186)
Net amortization of unrecognized prior service credit— (66)(66)
Net amortization of actuarial losses40 357 397 
Net periodic defined benefit pension cost$1,317 $3,292 $4,609 
Unrecognized prior service credit charged to comprehensive income (loss)$— $(66)$(66)
Unrecognized net actuarial loss charged to comprehensive income (loss)40 357 397 
Net actuarial losses(767)(236)(1,003)
Foreign currency and other adjustments— (383)(383)
Related tax impact168 (21)147 
Total periodic defined benefit pension cost and other charges to other comprehensive income (loss) and accumulated other comprehensive income (loss)$(559)$(349)$(908)
Year Ended February 1, 2020
SERPForeign Pension
Plans		Total
Service cost$— $3,211 $3,211 
Interest cost1,924 270 2,194 
Expected return on plan assets— (310)(310)
Net amortization of unrecognized prior service credit— (39)(39)
Net amortization of actuarial losses62 384 446 
Net periodic defined benefit pension cost$1,986 $3,516 $5,502 
Unrecognized prior service credit charged to comprehensive income (loss)$— $(39)$(39)
Unrecognized net actuarial loss charged to comprehensive income (loss)62 384 446 
Net actuarial gains (losses)449 (43)406 
Foreign currency and other adjustments— (34)(34)
Related tax impact(118)50 (68)
Total periodic defined benefit pension cost and other charges to other comprehensive income (loss) and accumulated other comprehensive income (loss)$393 $318 $711 
Year Ended February 2, 2019
SERPForeign Pension
Plans		Total
Service cost$— $3,039 $3,039 
Interest cost1,887 225 2,112 
Expected return on plan assets— (303)(303)
Net amortization of unrecognized prior service credit— (28)(28)
Net amortization of actuarial losses187 413 600 
Net periodic defined benefit pension cost$2,074 $3,346 $5,420 
Unrecognized prior service credit charged to comprehensive income (loss)$— $(28)$(28)
Unrecognized net actuarial loss charged to comprehensive income (loss)187 413 600 
Net actuarial gains (losses)2,787 (1,054)1,733 
Foreign currency and other adjustments— 311 311 
Related tax impact(686)82 (604)
Total periodic defined benefit pension cost and other charges to other comprehensive income (loss) and accumulated other comprehensive income (loss)$2,288 $(276)$2,012 
Included in accumulated other comprehensive income (loss), before tax, as of January 30, 2021 and February 1, 2020 are the following amounts that have not yet been recognized in net periodic defined benefit pension cost (in thousands):
Jan 30, 2021Feb 1, 2020
SERPForeign Pension
Plans		TotalSERPForeign Pension
Plans		Total
Unrecognized prior service credit$— $(161)$(161)$— $(227)$(227)
Unrecognized net actuarial loss6,696 5,355 12,051 5,969 5,093 11,062 
Total included in accumulated other comprehensive loss$6,696 $5,194 $11,890 $5,969 $4,866 $10,835 
The following table summarizes the funded status of the Company’s defined benefit plans and the amounts recognized in the Company’s consolidated balance sheets (in thousands):
Jan 30, 2021Feb 1, 2020
SERPForeign Pension
Plans		TotalSERPForeign Pension
Plans		Total
Projected benefit obligation$(52,268)$(41,461)$(93,729)$(51,939)$(34,779)$(86,718)
Plan assets at fair value1
— 35,015 35,015 — 28,893 28,893 
Net liability2
$(52,268)$(6,446)$(58,714)$(51,939)$(5,886)$(57,825)
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1The SERP is a non-qualified pension plan and hence the insurance policies are not considered to be plan assets. Accordingly, the table above does not include the insurance policies with cash surrender values of $72.1 million and $67.7 million as of January 30, 2021 and February 1, 2020, respectively.
2The net liability was included in accrued expenses and other long-term liabilities in the Company’s consolidated balance sheets depending on the expected timing of payments.
A reconciliation of the changes in the projected benefit obligation for fiscal 2021 and fiscal 2020 is as follows (in thousands):
Projected Benefit Obligation
 SERPForeign Pension
Plans		Total
Balance at February 2, 2019$52,162 $31,105 $83,267 
Service cost— 3,211 3,211 
Interest cost1,924 270 2,194 
Actuarial gains(449)(82)(531)
Contributions by plan participants— 2,920 2,920 
Payments(1,698)(3,292)(4,990)
Foreign currency and other adjustments— 647 647 
Balance at February 1, 2020$51,939 $34,779 $86,718 
Service cost— 3,165 3,165 
Interest cost1,277 32 1,309 
Actuarial losses767 286 1,053 
Contributions by plan participants— 3,863 3,863 
Payments(1,715)(3,421)(5,136)
Foreign currency and other adjustments— 2,757 2,757 
Balance at January 30, 2021$52,268 $41,461 $93,729 
The SERP is a non-qualified pension plan and hence the insurance policies are not considered to be plan assets. Accordingly, the table below does not include the insurance policies with cash surrender values of $72.1 million and $67.7 million as of January 30, 2021 and February 1, 2020, respectively. A reconciliation of the changes in plan assets for the Company’s foreign pension plans for fiscal 2021 and fiscal 2020 is as follows (in thousands):
 Plan Assets
Balance at February 2, 2019$25,358 
Actual return on plan assets186 
Contributions by employer3,158 
Contributions by plan participants2,920 
Payments(3,292)
Foreign currency and other adjustments563 
Balance at February 1, 2020$28,893 
Actual return on plan assets247 
Contributions by employer3,184 
Contributions by plan participants3,863 
Payments(3,421)
Foreign currency and other adjustments2,249 
Balance at January 30, 2021$35,015