Defined Benefit Plans

6 Months Ended

Jul. 29, 2023

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Defined Benefit Plans

Defined Benefit Plans

Supplemental Executive Retirement Plan

The Company’s Supplemental Executive Retirement Plan (“SERP”) provides select employees who satisfy certain eligibility requirements with certain benefits upon retirement, termination of employment, death, disability or a change in control of the Company, in certain prescribed circumstances. As a non-qualified pension plan, no dedicated funding of the SERP is required; however, the Company has made periodic payments into insurance policies held in a rabbi trust to fund the expected obligations arising under the non-qualified SERP. The cash surrender values of the insurance policies were $63.6 million and $64.4 million as of July 29, 2023 and January 28, 2023, respectively, and were included in other assets in the Company’s condensed consolidated balance sheets. As a result of changes in the value of the insurance policy investments, the Company recorded immaterial unrealized gains in other income (expense) during the three and six months ended July 29, 2023, respectively, and unrealized losses of $0.2 million and $3.5 million in other income (expense) during the three and six months ended July 30, 2022, respectively. The projected benefit obligation was $42.3 million and $42.4 million as of July 29, 2023 and January 28, 2023, respectively, and was included in accrued expenses and other current liabilities and other long-term liabilities in the Company’s condensed consolidated balance sheets depending on the expected timing of payments. SERP benefit payments of $0.5 million were made during each of the three months ended July 29, 2023 and July 30, 2022. SERP benefit payments of $1.0 million were made during each of the six months ended July 29, 2023 and July 30, 2022.

Foreign Pension Plans

In certain foreign jurisdictions, primarily in Switzerland, the Company is required to guarantee the returns on Company-sponsored defined contribution plans in accordance with local regulations. The Company’s contributions must be made in an amount at least equal to the employee’s contribution. Minimum employee contributions are based on the respective employee’s age, salary and gender.

As of July 29, 2023 and January 28, 2023, the foreign pension plans had a total projected benefit obligation of $51.9 million and $47.4 million, respectively, and plan assets held in independent investment fiduciaries of $45.2 million and $41.2 million, respectively. The net liability of $6.7 million and $6.2 million was included in other long-term liabilities in the Company’s condensed consolidated balance sheets as of July 29, 2023 and January 28, 2023, respectively.

The components of net periodic defined benefit pension cost related to the Company’s defined benefit plans are (in thousands):

	SERP		Foreign Pension Plans		Total
	Three Months Ended Jul 29, 2023
Service cost	$	—	$	935	$	935
Interest cost	466		229		695
Expected return on plan assets	—		(203)		(203)
Net amortization of unrecognized prior service credit	—		(40)		(40)
Net amortization of actuarial losses	—		65		65
Net periodic defined benefit pension cost	$	466	$	986	$	1,452

	Six Months Ended Jul 29, 2023
Service cost	$	—	$	1,848	$	1,848
Interest cost	931		453		1,384
Expected return on plan assets	—		(402)		(402)
Net amortization of unrecognized prior service credit	—		(79)		(79)
Net amortization of actuarial losses	—		127		127
Net periodic defined benefit pension cost	$	931	$	1,947	$	2,878

	SERP		Foreign Pension Plans		Total
	Three Months Ended Jul 30, 2022
Service cost	$	—	$	741	$	741
Interest cost	334		55		389
Expected return on plan assets	—		(67)		(67)
Net amortization of unrecognized prior service credit	—		(22)		(22)
Net amortization of actuarial losses	—		12		12
Net periodic defined benefit pension cost	$	334	$	719	$	1,053

	Six Months Ended Jul 30, 2022
Service cost	$	—	$	1,516	$	1,516
Interest cost	667		112		779
Expected return on plan assets	—		(137)		(137)
Net amortization of unrecognized prior service credit	—		(45)		(45)
Net amortization of actuarial losses	17		25		42
Net periodic defined benefit pension cost	$	684	$	1,471	$	2,155