PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS

9 Months Ended

Dec. 31, 2019

PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS

The Company sponsors several defined benefit pension plans covering some of its employees. Certain employee groups are ineligible to participate in the plans or have ceased to accrue additional benefits under the plans based upon their service to the Company or years of service accrued under the defined benefit pension plans. Benefits under the defined benefit plans are based on years of service and, for most non-represented employees, on average compensation for certain years. It is the Company’s policy to fund at least the minimum amount required for all qualified plans, using actuarial cost methods and assumptions acceptable under U.S. government regulations (and for non-U.S. plans, acceptable under local regulations), by making payments into a separate trust. The Company contributed 1,730,703 shares of common stock to this separate trust with an aggregate contribution value of approximately $50,000 on the contribution date. As a result of the contribution, the Company does not expect that it will have any required contribution to the Trust for the fiscal year ending March 31, 2021.

In addition to the defined benefit pension plans, the Company provides certain healthcare and life insurance benefits for eligible retired employees. Such benefits are unfunded. Employees achieve eligibility to participate in these contributory plans upon retirement from active service if they meet specified age and years of service requirements. Election to participate for some employees must be made at the date of retirement. Qualifying dependents at the date of retirement may also be eligible for medical coverage. Current plan documents reserve the right to amend or terminate the plans at any time, subject to applicable collective bargaining requirements for represented employees. From time to time, changes have been made to the benefits provided to various groups of plan participants. Premiums charged to most retirees for medical coverage prior to age 65 are based on years of service and are adjusted annually for changes in the cost of the plans as determined by an independent actuary. In addition to this medical inflation cost-sharing feature, the plans also have provisions for deductibles, co-payments, coinsurance percentages, out-of-pocket limits, schedules of reasonable fees, preferred provider networks, coordination of benefits with other plans and a Medicare carve-out.

In accordance with the Compensation – Retirement Benefits topic of ASC 715, the Company has recognized the funded status of the benefit obligation as of the date of the last re-measurement, on the accompanying condensed consolidated balance sheets. The funded status is measured as the difference between the fair value of the plan’s assets and the pension benefit obligation or accumulated postretirement benefit obligation, of the plan. In order to recognize the funded status, the Company determined the fair value of the plan assets. The majority of the plan assets are publicly traded investments, which were valued based on the market price as of the date of re-measurement. Investments that are not publicly traded were valued based on the estimated fair value of those investments based on our evaluation of data from fund managers and comparable market data.

Net Periodic Benefit Plan Costs

The components of net periodic benefit costs (income) for our postretirement benefit plans are shown in the following table:



	Pension Benefits
	Three Months Ended December 31,						Nine Months Ended December 31,
	2019			2018			2019			2018
Components of net periodic benefit costs:
Service cost	$	577		$	822		$	1,758		$	2,476
Interest cost	16,073			19,905			52,162			59,736
Expected return on plan assets	(35,210		)	(37,065		)	(106,566		)	(111,246		)
Amortization of prior service credits	(183		)	(907		)	(695		)	(2,722		)
Amortization of net loss	7,752			4,179			19,444			12,538
Curtailment loss	—			—			23,476			—
Special termination benefits	—			—			11,642			—
Net periodic benefit (income) expense	$	(10,991	)	$	(13,066	)	$	1,221		$	(39,218	)



	Other Postretirement Benefits
	Three Months Ended December 31,						Nine Months Ended December 31,
	2019			2018			2019			2018
Components of net periodic benefit costs:
Service cost	$	—		$	57		$	62		$	170
Interest cost	41			1,010			1,519			3,029
Amortization of prior service credits	(1,276		)	(1,164		)	(3,596		)	(3,491		)
Amortization of gain	(1,186		)	(2,463		)	(5,175		)	(7,389		)
Curtailment gain	—			—			(49,491		)	—
Net periodic benefit income	$	(2,421	)	$	(2,560	)	$	(56,681	)	$	(7,681	)

The following summarizes the key events whose effects on net periodic benefit cost and obligations are included in the tables above:

•

In September 2019, the Company ratified amendments to its pension and retiree welfare plans with a group of union-represented employees at the Company’s Grand Prairie, TX, facility in conjunction with an announced shutdown of this facility. Effective April 1, 2020, all current retiree welfare benefits for the union-represented retirees and active employees will cease. A new benefit consisting of a one-time credit to Heath Reimbursement Accounts for the current retirees will be provided. The Company and the union also agreed to increased pension benefits which are effective with the ratification of the agreement. This agreement resulted in a decrease of the projected other post-employment benefits ("OPEB") benefit obligation of $61,766. It also resulted in a one-time OPEB curtailment gain of $41,128. As a result of the planned shutdown, subsidized early retirement provisions within the retirement plan and the agreed-to pension benefit increases, a pension curtailment loss of $23,476 was recognized, along with a one-time charge of $11,642 for special termination benefits. The net curtailment gain and charge for special termination benefits are included in "Non-service defined benefit income" on the condensed consolidated statement of operations for the nine months ended December 31, 2019.

•

In August 2019, the Company ratified amendments to its pension and retiree welfare plans with a group of union-represented employees at the Company’s Nashville, TN, facility. Effective January 1, 2020, all current retiree welfare benefits for the union-represented retirees and active employees will cease. A new benefit consisting of a one-time credit to Heath Reimbursement Accounts for the current retirees will be provided. The Company and the union also agreed to increased pension benefits which are effective on February 1, 2020, and the union also agreed to increased pension benefits which are effective with the ratification of the agreement. This agreement resulted in a decrease of the

projected OPEB benefit obligation of $34,731. It also resulted in a one-time OPEB curtailment gain of $8,363. The agreed-to pension benefit increases resulted in an increase of the projected pension benefit obligation of $4,898. The curtailment gain is included in "Non-service defined benefit income" on the condensed consolidated statement of operations for the nine months ended December 31, 2019.