Note 11 - Employee Benefits

3 Months Ended

May 05, 2018

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

11

.           Employee benefits

401

(k) tax deferred savings plan

We maintain a

401

(k) tax deferred savings plan for the benefit of qualified employees who are based in the United States.  Under the

401

(k) tax deferred savings plan, U.S. based employees

may

elect to reduce their current annual taxable compensation up to the statutorily prescribed limit, which is

$18,000

in calendar year

2017.

  Employees age

50

or over

may

elect to contribute an additional

$6,000.

 We made matching contributions to the

401

(k) tax deferred savings plan during the

three

months ended

April 29, 2017

of

$0.2

million.

Endowment insurance pension plan

In relation to our acquisition of our DTV business in

May 2012,

we added operations in Shanghai, China.  The “Procedures of Shanghai Municipality on Endowment Insurance for Town Employees” require us to provide pension insurance for Shanghai employees.  The mandatory plan is managed by the local authority.  Under the current plan, an employee will contribute

8.0%

of the annual base to the plan and the employer will match

20%

of the annual base.  From

April 2016

to

March 2017,

the annual base is capped at RMB

17,817

per employee and from

April 2017

to

March 2018,

the annual base is capped at RMB

19,512

per employee. For the

three

months ended

April 29, 2017,

we made matching contributions of

$0.6

million

Retirement pension plans

We maintained retirement pension plans for the benefit of qualified employees in Denmark, Taiwan, The Netherlands, and Germany. We made matching contributions under these plans of

$0.2

million for the

three

months ended

April 29, 2017.

Severance plan

We maintained a severance plan for several Israeli employees pursuant to Israel's Severance Pay Law based on the most recent salary of the employees multiplied by the number of years of employment.  Upon termination of employment, employees were entitled to

one

month salary for each year of employment or a portion thereof.  As of

May 5, 2018,

we have

no

remaining severance liability.

Employee termination benefits

Termination benefits are payable when an employee is involuntarily terminated, or whenever an employee accepts voluntary termination in exchange for termination benefits. For the accounting treatment and timing recognition of involuntarily termination benefits, the Company distinguishes between

one

-time termination benefit arrangements and ongoing termination benefit arrangements. A

one

-time termination benefit arrangement is established by a termination plan and applies to a specified termination event. One-time involuntary termination benefits are recognized as a liability when the termination plan meets certain criteria and has been communicated to employees. If employees are required to render future service in order to receive these

one

-time termination benefits, the liability is recognized ratably over the future service period. Termination benefits other than

one

-time termination benefits are termination benefits for which the communication criterion is

not

met but that are committed to by management, or termination obligations that are

not

specifically determined in a new and single plan. These termination benefits include all legal, contractual and past practice termination obligations to be paid to employees in case of involuntary termination. These termination benefits are accrued for when commitment creates a present obligation to our employees for the benefits expected to be paid, when it is probable that employees will be entitled to the benefits and the amount can be reasonably estimated.  As discussed in Note

9,

we recorded restructuring charges of

$0.4

million, which includes termination benefits of

$0.2

million for the

three

months ended

April 29, 2017.