Employee Retirement Plans

12 Months Ended

Jan. 31, 2016

Employee Retirement Plans

Employee Retirement Plans

10. EMPLOYEE RETIREMENT PLANS

B/E Aerospace sponsored and contributes to a qualified, defined contribution savings and investment plan, covering substantially all U.S. employees, including current KLX employees that transferred to KLX from B/E Aerospace. Balances related to the Company employees’ participation in B/E Aerospace’s plans were determined by specifically identifying the balances for the Company’s participants. The B/E Aerospace, Inc. Savings Plan was established pursuant to Section 401(k) of the Internal Revenue Code. Under the terms of this plan, covered employees could contribute up to 100% of their pay, limited to certain statutory maximum contributions for 2014 and 2013. Participants are vested in matching contributions immediately and the matching percentage is 100% of the first 3% of employee contributions and 50% on the next 2% of employee contributions. Total expense for the plan was $3.6,  $2.8,$1.6and $0.4for the years ended January 31, 2016,  December 31, 2014 and 2013  and the one month ended January 31, 2015, respectively.  B/E Aerospace also sponsored and contributed to a supplemental executive retirement plan (“SERP”), which was established pursuant to Section 409A of the Internal Revenue Code, for certain B/E Aerospace and Company employees. The SERP is an unfunded plan maintained for the purpose of providing deferred compensation for certain employees. This plan allows certain employees to annually elect to defer a portion of their compensation, on a pre‑tax basis, until their retirement. The retirement benefit to be provided is based on the amount of compensation deferred. The Former Parent made cash matching contributions and earnings on deferrals at various levels, which varies by position. Compensation expense under this program was $2.4,  $0.1 and $0.2 for the years ended January 31, 2016,  December 31, 2014 and 2013, respectively. Compensation expense was immaterial under this program for the one month ended January 31, 2015. The Company and its subsidiaries participate in government‑sponsored programs in certain foreign countries. The Company funds these plans based on legal requirements, tax considerations, local practices and investment opportunities. Upon the Spin‑off, the Company adopted employee retirement plans substantially similar to those of the B/E Aerospace.