RETIREMENT PLANS

Defined Contribution Plans

We have a Savings Plus Plan (the "Plan") that is a 401(k) plan that allows our U.S. employees to accumulate savings on a pre-tax basis. In addition, matching contributions are made to the Plan based upon pre-established rates. Our matching contributions amounted to approximately $5.1 million, $5.4 million, and $5.8 million in fiscal 2017, 2016, and 2015, respectively. Upon Board approval, additional discretionary contributions can also be made. No discretionary contributions were made for the Plan in fiscal 2017, 2016, or 2015.

Some of our subsidiaries also have defined contribution plans, to which both the employee and the employer make contributions. The employer contributions to these plans totaled $0.8 million in both fiscal 2017 and 2016 and $1.0 million in fiscal 2015.

Defined Benefit Plans

ASC Topic 715, Compensation — Retirement Benefits, requires an employer to: (a) recognize in its statement of financial position an asset for a plan’s over-funded status or a liability for a plan’s under-funded status; (b) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year (with limited exceptions); and (c) recognize changes in the funded status of a defined benefit post retirement plan in the year in which the changes occur. Accordingly, the Company is required to report changes in its funded status in comprehensive loss on its consolidated statement of stockholders’ equity and consolidated statement of comprehensive income (loss).

Benefits under these plans are generally based on either career average or final average salaries and creditable years of service as defined in the plans. The annual cost for these plans is determined using the projected unit credit actuarial cost method that includes actuarial assumptions and estimates which are subject to change.

Some of the our foreign subsidiaries have defined benefit pension plans covering substantially all full time employees at those subsidiaries. Net periodic benefit costs for the plans in the aggregate include the following components:



(In thousands)	2017			2016			2015
Service cost	$	3,404		$	3,560		$	2,979
Interest cost on benefit obligation	287			371			686
Expected return on plan assets	(308		)	(330		)	(449		)
Actuarial loss	532			598			107
Amortization of unrecognized prior service cost	(119		)	(38		)	(29		)
Amortization of unrecognized transition obligation	37			42			45
Settlement loss recognized	289			—			—
Totals	$	4,122		$	4,203		$	3,339

The activity under those defined benefit plans are as follows:



(In thousands)	April 1, 2017			April 2, 2016
Change in Benefit Obligation:
Benefit Obligation, beginning of year	$	(37,919	)	$	(40,567	)
Service cost	(3,404		)	(3,560		)
Interest cost	(287		)	(371		)
Benefits paid	1,291			3,780
Actuarial gain	4,615			424
Employee and plan participants contribution	(2,463		)	(1,839		)
Plan amendments	—			833
Plan settlements	6,960			—
Foreign currency changes	(138		)	3,381
Benefit obligation, end of year	$	(31,345	)	$	(37,919	)
Change in Plan Assets:
Fair value of plan assets, beginning of year	$	19,852		$	23,165
Company contributions	1,788			1,987
Benefits paid	(1,192		)	(3,779		)
Gain on plan assets	414			446
Employee and plan participants contributions	2,424			1,861
Plan settlements	(6,850		)	—
Foreign currency changes	849			(3,828		)
Fair value of Plan Assets, end of year	$	17,285		$	19,852
Funded Status^*	$	(14,060	)	$	(18,067	)
Unrecognized net actuarial loss	4,319			10,168
Unrecognized initial obligation	—			37
Unrecognized prior service cost	(1,019		)	(1,186		)
Net amount recognized	$	(10,760	)	$	(9,048	)
^* The unfunded status is all non-current

One of the benefit plans is funded by benefit payments made by the Company through the purchase of reinsurance contracts which do not qualify as plan assets under ASC Topic 715. Accordingly that plan has no assets included in the information presented above. The total liability for this plan was $8.8 million and $8.7 million as of April 1, 2017 and April 2, 2016, respectively, and the total asset value associated with the reinsurance contracts was $5.4 million as of both April 1, 2017 and April 2, 2016.

The accumulated benefit obligation for all plans was $28.7 million and $36.4 million for the fiscal year ended April 1, 2017 and April 2, 2016, respectively. There were no plans where the plan assets were greater than the accumulated benefit obligation as of April 1, 2017 and April 2, 2016.

The components of the change recorded in our accumulated other comprehensive loss related to our defined benefit plans, net of tax, are as follows (in thousands):



Balance, March 29, 2014	$	(4,592	)
Obligation at transition	(19		)
Actuarial loss	(6,198		)
Prior service cost	1,886
Balance as of March 28, 2015	$	(8,923	)
Obligation at transition	33
Actuarial loss	681
Prior service cost	717
Balance as of April 2, 2016	$	(7,492	)
Obligation at transition	32
Actuarial loss	5,126
Prior service cost	63
Balance as of April 1, 2017	$	(2,271	)

We expect to amortize $0.2 million from accumulated other comprehensive loss to net periodic benefit cost during fiscal 2018.

The weighted average rates used to determine the net periodic benefit costs and projected benefit obligations were as follows:



	2017		2016		2015
Discount rate	0.76	%	0.72	%	0.93	%
Rate of increased salary levels	1.43	%	1.58	%	1.65	%
Expected long-term rate of return on assets	1.10	%	1.20	%	1.68	%

Assumptions for expected long-term rate of return on plan assets are based upon actual historical returns, future expectations of returns for each asset class and the effect of periodic target asset allocation rebalancing. The results are adjusted for the payment of reasonable expenses of the plan from plan assets.

We have no other material obligation for post-retirement or post-employment benefits.

Our investment policy for pension plans is to balance risk and return through a diversified portfolio to reduce interest rate and market risk. Maturities are managed so that sufficient liquidity exists to meet immediate and future benefit payment requirements.

ASC Topic 820, Fair Value Measurements and Disclosures, provides guidance for reporting and measuring the plan assets of our defined benefit pension plan at fair value as of April 1, 2017. Using the same three-level valuation hierarchy for disclosure of fair value measurements as described in Note 6, Derivatives and Fair Value Measurements, all of the assets of the Company’s plan are classified within Level 2 of the fair value hierarchy because the plan assets are primarily insurance contracts.

Expected benefit payments for both plans are estimated using the same assumptions used in determining the company’s benefit obligation at April 1, 2017. Benefit payments will depend on future employment and compensation levels, average years employed and average life spans, among other factors, and changes in any of these factors could significantly affect these estimated future benefit payments.

Estimated future benefit payments are as follows:



(in thousands)
Fiscal 2018	$	1,396
Fiscal 2019	1,451
Fiscal 2020	1,394
Fiscal 2021	1,411
Fiscal 2022	1,617
Fiscal 2023-2027	6,869
	$	14,138

The Company's contributions for fiscal 2018 are expected to be consistent with the current year.