Pension Benefits

6 Months Ended

Oct. 31, 2021

Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]

Pension Benefits

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.

On November 16, 2020, the Company filed an application with the Internal Revenue Service to terminate the American Woodmark Corporation Employee Pension Plan (the "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 Plan, of which $0.4 million and $0.6 million was incurred in the three and six months ended October 31, 2021, and $0.4 million was incurred in all of fiscal 2021. In connection with the Plan termination and in addition to the Plan termination costs, the Company may be required to make an additional funding contribution to the Plan in order to ensure the 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 cash available under our credit agreement, and the amount will vary depending on the lump sum distribution take rate and the interest rate on the Benefit Distribution Date. The expected Benefit Distribution Date is December 1, 2021.

Net periodic pension benefit cost consisted of the following for the three- and six-month periods ended October 31, 2021 and 2020: 

	Three Months Ended				Six Months Ended
	October 31,				October 31,
(in thousands)	2021		2020		2021		2020
Interest cost	$	1,349	$	1,166	$	2,698	$	2,331
Expected return on plan assets	(1,543)		(2,108)		(3,086)		(4,215)
Recognized net actuarial loss	498		440		997		880
Net periodic pension benefit	$	304	$	(502)	$	609	$	(1,004)

The Company did not contribute to the Plan in the first six months of fiscal 2022. Expected funding for the remainder of fiscal 2022 will be determined on the Benefit Distribution Date . The Company made no contributions to the Plan in fiscal 2021.