Employee Benefit Plans

401(k) Retirement Plan

The Company sponsors a single 401(k) retirement plan covering substantially all full-time non-union employees, as well as union employees at two of its manufacturing facilities. Under the plan, employees are allowed to contribute up to 60 percent of their eligible earnings to this plan, up to statutory limits. The Company contributes a match of 100 percent of the first one percent contributed and 50 percent of the next five percent contributed on eligible compensation that non-union employees contribute and according to contract terms for union employees. The Company match was $4.7 million in fiscal 2015, $4.2 million in fiscal 2014 and $3.6 million in fiscal 2013.

Deferred Compensation Plan

The Company maintains a deferred compensation plan that allows participants to defer compensation and save for retirement and other short-term needs. The deferred compensation liability was $4.2 million and $3.4 million at February 28, 2015 and March 1, 2014, respectively, and is included in other current and non-current liabilities in the consolidated balance sheet. The Company has investments in corporate-owned life insurance policies (COLI) of $4.0 million and mutual funds of $0.3 million with the intention of utilizing them as a long-term funding source for the deferred compensation plan. The COLI assets are recorded at their net cash surrender values and are included in other non-current assets in the consolidated balance sheet. The mutual fund investments are recorded at estimated fair value, based on quoted market prices, and are included in other non-current assets in the consolidated balance sheet.

Plans under Collective Bargaining Agreements

The Company contributes to various multi-employer union retirement plans, which provide retirement benefits to the majority of its union employees; none of the plans are considered significant. The total contribution to these plans in fiscal 2015, 2014 and 2013 was $4.3 million, $3.7 million and $4.8 million, respectively.

Pension Plan

The Company sponsors the Tubelite, Inc. Hourly Employees' Pension Plan (Tubelite plan). This plan is a defined-benefit pension plan that was frozen to new entrants, with no additional years of service credit for participating employees as of January 1, 2004.

Officers' Supplemental Executive Retirement Plan (SERP)

The Company sponsors an unfunded SERP for the benefit of certain executives. The plan is considered a defined-benefit pension plan which is based principally on an employee's years of service and compensation levels near retirement. The SERP is frozen to new entrants and no additional benefits accrue for plan participants.

Obligations and Funded Status of Defined-Benefit Pensions Plans

The following tables present reconciliations of the benefit obligation of the defined-benefit pension plans and the funded status of the defined-benefit pension plans. Both the Tubelite plan and the SERP use a fiscal year-end measurement date.



(In thousands)	2015			2014
Change in benefit obligation
Benefit obligation beginning of period	$	14,274		$	14,869
Interest cost	550			538
Actuarial loss (gain)	2,424			(113		)
Benefits paid	(995		)	(1,020		)
Benefit obligation at measurement date	$	16,253		$	14,274

Change in plan assets
Fair value of plan assets beginning of period	$	4,430		$	4,709
Actual return on plan assets	134			(66		)
Company contributions	850			807
Benefits paid	(995		)	(1,020		)
Fair value of plan assets at measurement date	$	4,419		$	4,430

Funded status - net amount recognized	$	(11,834	)	$	(9,844	)

Amounts recognized in the consolidated balance sheets consist of:



(In thousands)	2015			2014
Current liabilities	$	(648	)	$	(638	)
Other non-current liabilities	(11,186		)	(9,206		)
Total	$	(11,834	)	$	(9,844	)

Amounts included in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost consist of:



(In thousands)	2015		2014
Net actuarial loss	$	6,857	$	4,569
Accumulated other comprehensive loss	$	6,857	$	4,569

The amount recognized in comprehensive earnings for fiscal 2015 and 2014, net of tax expense, is as follows:



(In thousands)	2015		2014
Net actuarial loss (gain)	$	1,458	$	(19	)
Total	$	1,458	$	(19	)

Components of the defined-benefit pension plans' net periodic benefit cost are as follows:



(In thousands)	2015			2014			2013
Interest cost	$	550		$	538		$	570
Expected return on assets	(171		)	(183		)	(177		)
Amortization of unrecognized net loss	172			163			211
Net periodic benefit cost	$	551		$	518		$	604

The estimated net actuarial loss for the defined-benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost for fiscal 2016 is $0.2 million, net of tax benefit.

Additional Information

Assumptions

Weighted-average assumptions used at the measurement date to determine the defined-benefit plans' benefit obligation for the following fiscal years are as follows:



(Percentages)	2015		2014		2013
Discount rate	3.60	%	4.00	%	3.75	%

Weighted-average assumptions used at the measurement date to determine the defined-benefit plans' net periodic benefit cost for the following fiscal years are as follows:



(Percentages)	2015		2014		2013
Discount rate	4.00	%	3.75	%	4.00	%
Expected return on assets	4.50	%	4.50	%	4.50	%

Discount rate. The discount rate reflects the current rate at which the defined-benefit plans' pension liabilities could be effectively settled at the end of the year based on the measurement date. The discount rate was determined by matching the expected benefit payments to payments from the Principal Discount Yield Curve. This produced a discount rate of 3.60 percent. There are no known or anticipated changes in the discount rate assumption that will impact the pension expense in fiscal year 2016.

Expected return on assets. To develop the expected long-term rate of return on asset assumption, the Company considered historical long-term rates of return for broad asset classes, actual past rates of return achieved by the plan, the general mix of assets held by the plan and the stated investment policy for the plan. This resulted in the selection of the 4.50 percent long-term rate of return on assets assumption.

Net periodic benefit cost. Total net periodic pension benefit cost was $0.6 million in fiscal 2015, $0.5 million in fiscal 2014 and $0.6 million in fiscal 2013. Total net periodic pension benefit cost is expected to be approximately $0.7 million in fiscal 2016. The net periodic pension benefit cost for fiscal 2016 has been estimated assuming a discount rate of 3.60 percent.

Contributions

Pension contributions to the plans for fiscal 2015 and 2014 totaled $0.9 million and $0.8 million, respectively. Because the SERP is unfunded, contributions to that plan represent benefit payments made. The pension contributions in fiscal 2015 and 2014 equaled or exceeded the minimum funding requirement. Fiscal 2016 pension contributions are expected to total $1.0 million.

Estimated Future Benefit Payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid by the plans as follows:



(In thousands)
Fiscal 2016	$	1,028
Fiscal 2017	1,027
Fiscal 2018	1,016
Fiscal 2019	1,043
Fiscal 2020	1,030
Fiscal 2021-2025	4,860

Plan Assets

The Company does not maintain assets intended for the future use of the SERP. In accordance with its policy, the assets of the Tubelite plan have been invested in a bond fund, the assets are carried at fair value based on prices from recent trades of similar securities, and are classified as Level 2 in the valuation hierarchy.

Employee Stock Purchase Plan

The Company also sponsors an employee stock purchase plan into which its employees may contribute up to $500 per week on an after-tax basis. The Company contributes a match of 15 percent of the employee contribution. Contributions and Company match funds are used to purchase shares of Company stock on the open market. The Company match to this plan was $0.1 million in each of fiscal 2015, 2014 and 2013.