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Employee Benefit and Retirement Plans
 12 Months Ended
Apr. 30, 2021
Retirement Benefits [Abstract]  
Employee Benefit and Retirement Plans Employee Benefit and Retirement Plans
 
Retirement Savings Plans
 
Under the American Woodmark Corporation Retirement Savings Plan (the "Plan"), all employees who are at least 18 years old and have been employed by the Company for at least six consecutive months are eligible to receive Company stock through a discretionary profit-sharing contribution and a 401(k) matching contribution based upon the employee's contribution to the Plan.
 
Discretionary profit-sharing contributions ranging from 0-5% of net income, based on predetermined net income levels of the Company, may be made annually in the form of Company stock. The Company recognized expenses for profit-sharing contributions of $2.9 million, $3.7 million, and $3.8 million in fiscal years 2021, 2020, and 2019, respectively.  
 
The Company matches 100% of an employee's annual 401(k) contributions to the Plan up to 4% of annual compensation. 

On January 1, 2019, the Plan merged with the RSI Plan to transfer all assets of the RSI Plan into the Plan. 

The expense for 401(k) matching contributions for both plans was $11.9 million, $10.1 million, and $9.9 million, in fiscal years 2021, 2020, and 2019, respectively.

Pension Benefits
 
Prior to April 30, 2020, the Company had two defined benefit pension plans covering many of the Company's employees hired prior to April 30, 2012. Effective April 30, 2012, the Company froze all future benefit accruals under the Company's defined benefit pension plans.

Effective April 30, 2020, these plans were merged into one plan and the plan name was changed to the American Woodmark Corporation Employee Pension Plan (the "Pension Plan"). The Pension Plan provides defined benefits based on years of service and final average earnings (for salaried employees) or benefit rate (for hourly employees).
 
On November 16, 2020 the Company filed an application with the Internal Revenue Service to terminate the Pension Plan with an effective date of December 31, 2020 (the "Plan Termination Date"), in a standard termination and the Company expects to incur approximately $1.6 million to terminate the Pension Plan, $0.4 million of which was incurred in fiscal 2021. In connection with the Pension Plan termination and in addition to the Pension Plan termination costs, the Company may be required to make an additional funding contribution to the Pension Plan in order to ensure the Pension Plan is fully funded on a termination basis as of the Benefit Distribution Date, with the amount of such contribution still to be determined. The Benefit Distribution Date will be determined once the Company receives approval from certain regulatory agencies. The additional funding contribution is expected to be funded from cash on hand and the amount will vary depending on the lump sum distribution take rate and the interest rate on the Benefit Distribution Date.
 
Included in accumulated other comprehensive loss at April 30, 2021 is $73.1 million ($54.6 million net of tax) related to net unrecognized actuarial losses that have not yet been recognized in net periodic pension benefit costs. The Company expects to recognize $1.2 million ($0.9 million net of tax) in net actuarial losses in net periodic pension benefit costs during fiscal 2022.   The Company uses an April 30 measurement date for its Pension Plan.
The following provides a reconciliation of benefit obligations, plan assets and funded status of the Company's non-contributory Pension Plan as of April 30:
 APRIL 30
(in thousands)20212020
CHANGE IN PROJECTED BENEFIT OBLIGATION  
Projected benefit obligation at beginning of year$191,184 $168,788 
Interest cost4,662 5,974 
Actuarial gains6,759 22,293 
Benefits paid(6,068)(5,871)
Projected benefit obligation at end of year$196,537 $191,184 
CHANGE IN PLAN ASSETS  
Fair value of plan assets at beginning of year$190,743 $169,471 
Actual return on plan assets8,877 26,674 
Company contributions— 469 
Benefits paid(6,068)(5,871)
Fair value of plan assets at end of year$193,552 $190,743 
Funded status of the plan$(2,985)$(441)

The accumulated benefit obligation for the Pension Plan was $196.5 million and $191.2 million at April 30, 2021 and 2020, respectively.
 APRIL 30
(in thousands)202120202019
COMPONENTS OF NET PERIODIC PENSION BENEFIT COST   
Interest cost$4,662 $5,974 $6,269 
Expected return on plan assets(8,430)(8,327)(8,509)
Recognized net actuarial loss1,761 1,692 1,648 
Pension benefit cost$(2,007)$(661)$(592)

The components of net periodic pension benefit cost do not include service costs or prior service costs due to the Pension Plan being frozen.

Actuarial Assumptions:  The discount rate at April 30 was used to measure the year-end benefit obligations and the earnings effects for the subsequent year. Actuarial assumptions used to determine benefit obligations and earnings effects for the Pension Plan follows:
 FISCAL YEARS ENDED APRIL 30
 20212020
WEIGHTED-AVERAGE ASSUMPTIONS TO DETERMINE BENEFIT OBLIGATIONS  
Discount rate2.80 %3.16 %
 FISCAL YEARS ENDED APRIL 30
 202120202019
WEIGHTED-AVERAGE ASSUMPTIONS TO DETERMINE NET PERIODIC PENSION BENEFIT COST   
Discount rate3.16 %4.02 %4.18%
Expected return on plan assets3.25 %5.0 %5.5 %
The Company bases the discount rate on a current yield curve developed from a portfolio of high-quality fixed-income investments with maturities consistent with the projected benefit payout period. The long-term rate of return on assets is determined based on consideration of historical and forward-looking returns and the current and expected asset allocation strategy.

The method used to determine the service and interest costs is known as the spot rate approach, under which individual spot rates along the yield curve that correspond with the timing of each benefit payment are used.

In developing the expected long-term rate of return assumption for the assets of the Pension Plan, the Company evaluated input from its third party pension plan asset managers, including their review of asset class return expectations and long-term inflation assumptions.
 
The Company amortizes experience gains and losses, as well as the effects of changes in actuarial assumptions and plan provisions, over the average remaining lifetime of employees expected to receive benefits under the Pension Plan.
 
Contributions:  The Company funds the Pension Plan in amounts sufficient to meet minimum funding requirements under applicable employee benefit and tax laws plus additional amounts the Company deems appropriate.
 
The Company expects to contribute $2.5 million to its Pension Plan in fiscal 2022.  The Company made no contributions to its Pension Plan in fiscal 2021 and made contributions of $0.5 million in fiscal 2020. 
 
Estimated Future Benefit Payments: The following benefit payments are expected to be paid: 
FISCAL YEARBENEFIT PAYMENTS (in thousands)
  
2022$199,685 

Plan Assets:  Pension assets by major category and the type of fair value measurement as of April 30, 2021 and 2020 are presented in the following tables:
FAIR VALUE MEASUREMENTS AT APRIL 30, 2021
(in thousands)TOTALQUOTED PRICES IN ACTIVE MARKETS (LEVEL 1)SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)SIGNIFICANT UNOBSERVABLE INPUTS         (LEVEL 3)
Cash Equivalents$80,524 $80,524 $— $— 
Fixed Income Funds:  
Investment Grade Fixed Income113,028 113,028 — — 
Total plan assets193,552 193,552 $— $— 
FAIR VALUE MEASUREMENTS AT APRIL 30, 2020
(in thousands)TOTALQUOTED PRICES IN ACTIVE MARKETS (LEVEL 1)SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)SIGNIFICANT UNOBSERVABLE INPUTS         (LEVEL 3)
Cash Equivalents$490 $490 $— $— 
Equity Funds: 
US Equity37,569 37,569 — — 
International Equity24,578 24,578 — 
Fixed Income Funds: 
Investment Grade Fixed Income128,106 128,106 — — 
Total plan assets$190,743 $190,743 $— $— 
Investment Strategy:  The Company has established formal investment policies for the assets associated with its Pension Plan.  The objectives of the investment strategies include preservation of capital and long-term growth of capital while avoiding excessive risk.  Target allocation percentages are established at an asset class level by the Company's Pension Committee.  Target allocation ranges are guidelines, not limitations, and the Pension Committee may approve allocations above or below a target range.
 
During a period of uncertainty in the equity and fixed income markets, the Pension Committee may suspend the Target Asset Allocation and manage the investment mix as it sees reasonable, prudent and in the best interest of the plans to better protect the value of the plan assets.

The Company's Pension Plan's weighted-average asset allocations at April 30, 2021 and 2020, by asset category, were as follows:
 PLAN ASSET ALLOCATION
 202120212020
APRIL 30TARGETACTUALACTUAL
Cash Equivalents— %42.0 %— %
Equity Funds— %— %33.0 %
Fixed Income Funds100.0 %58.0 %67.0 %
Total100.0 %100.0 %100.0 %