EMPLOYEE BENEFIT PLANS (Tables)
|
12 Months Ended |
Mar. 31, 2020 |
|---|
| EMPLOYEE BENEFIT PLANS [Abstract] |
|
| Schedule of Accumulated and Projected Benefit Obligations |
The following tables provide a rollforward of the projected benefit obligation and the fair value of plan assets, set forth the defined benefit retirement plans’ funded status and provide detail of the components of net periodic pension cost calculated for the U.K. pension plans. The measurement date adopted is March 31. For the purposes of amortizing gains and losses, the 10% corridor approach has been adopted and assets are taken at fair market value. Any such gains or losses are amortized over the average remaining life expectancy of the plan members.
| |
|
Successor |
|
|
Predecessor |
|
| |
|
Five Months
Ended
March 31,
2020
|
|
|
Seven Months
Ended
October 31,
2019
|
|
|
Fiscal Year Ended
March 31,
2019
|
|
Change in benefit obligation: |
|
|
|
|
(In thousands) |
|
Projected benefit obligation (PBO) at beginning of period |
|
$ |
528,858 |
|
|
$ |
504,076 |
|
|
$ |
545,128 |
|
Service cost |
|
|
594 |
|
|
|
29 |
|
|
|
655 |
|
Interest cost |
|
|
4,109 |
|
|
|
6,705 |
|
|
|
12,984 |
|
Actuarial loss (gain) |
|
|
(5,545 |
) |
|
|
34,618 |
|
|
|
9,702 |
|
Benefit payments and expenses |
|
|
(11,394 |
) |
|
|
(13,882 |
) |
|
|
(28,593 |
) |
Plan amendments |
|
|
— |
|
|
|
— |
|
|
|
3,020 |
|
Effect of exchange rate changes |
|
|
(21,630 |
) |
|
|
(2,688 |
) |
|
|
(38,820 |
) |
Projected benefit obligation (PBO) at end of period |
|
$ |
494,992 |
|
|
$ |
528,858 |
|
|
$ |
504,076 |
|
|
| Schedule of Change in Plan Assets |
The following tables provide a rollforward of the projected benefit obligation and the fair value of plan assets, set forth the defined benefit retirement plans’ funded status and provide detail of the components of net periodic pension cost calculated for the U.K. pension plans. The measurement date adopted is March 31. For the purposes of amortizing gains and losses, the 10% corridor approach has been adopted and assets are taken at fair market value. Any such gains or losses are amortized over the average remaining life expectancy of the plan members.
Change in plan assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Market value of assets at beginning of period |
|
$ |
495,343 |
|
|
$ |
478,350 |
|
|
$ |
508,375 |
|
Actual return on assets |
|
|
6,827 |
|
|
|
24,633 |
|
|
|
18,121 |
|
Employer contributions |
|
|
7,144 |
|
|
|
9,032 |
|
|
|
16,644 |
|
Benefit payments and expenses |
|
|
(11,394 |
) |
|
|
(13,882 |
) |
|
|
(28,593 |
) |
Effect of exchange rate changes |
|
|
(20,783 |
) |
|
|
(2,790 |
) |
|
|
(36,197 |
) |
Market value of assets at end of period |
|
$ |
477,137 |
|
|
$ |
495,343 |
|
|
$ |
478,350 |
|
|
| Schedule of Net Funded Status |
The following tables provide a rollforward of the projected benefit obligation and the fair value of plan assets, set forth the defined benefit retirement plans’ funded status and provide detail of the components of net periodic pension cost calculated for the U.K. pension plans. The measurement date adopted is March 31. For the purposes of amortizing gains and losses, the 10% corridor approach has been adopted and assets are taken at fair market value. Any such gains or losses are amortized over the average remaining life expectancy of the plan members.
Reconciliation of funded status: |
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated benefit obligation (ABO) |
|
$ |
494,992 |
|
|
$ |
528,858 |
|
|
$ |
504,076 |
|
Projected benefit obligation (PBO) |
|
$ |
494,992 |
|
|
$ |
528,858 |
|
|
$ |
504,076 |
|
Fair value of assets |
|
|
(477,137 |
) |
|
|
(495,343 |
) |
|
|
(478,350 |
) |
Net recognized pension liability |
|
$ |
17,855 |
|
|
$ |
33,515 |
|
|
$ |
25,726 |
|
Amounts recognized in accumulated other comprehensive loss |
|
$ |
(6,389 |
) |
|
$ |
— |
|
|
$ |
219,232 |
|
|
| Schedule of Components of Net Periodic Pension Cost |
The following tables provide a rollforward of the projected benefit obligation and the fair value of plan assets, set forth the defined benefit retirement plans’ funded status and provide detail of the components of net periodic pension cost calculated for the U.K. pension plans. The measurement date adopted is March 31. For the purposes of amortizing gains and losses, the 10% corridor approach has been adopted and assets are taken at fair market value. Any such gains or losses are amortized over the average remaining life expectancy of the plan members.
| |
|
Successor |
|
|
|
|
|
|
|
|
|
|
|
|
Five Months
Ended
March 31,
|
|
|
Seven Months
Ended
October 31,
|
|
|
Fiscal Year Ended March 31,
|
|
| |
|
2020 |
|
|
2019 |
|
|
2019
|
|
|
2018
|
|
| |
|
|
|
|
|
|
|
(In thousands) |
|
|
|
|
Components of net periodic pension cost: |
|
|
|
|
|
|
|
|
|
|
|
|
Service cost for benefits earned during the period
|
|
$ |
594 |
|
|
$ |
29 |
|
|
$ |
655 |
|
|
$ |
856 |
|
Interest cost on PBO |
|
|
4,109 |
|
|
|
6,705 |
|
|
|
12,984 |
|
|
|
12,914 |
|
Expected return on assets |
|
|
(5,735 |
) |
|
|
(5,610 |
) |
|
|
(17,118 |
) |
|
|
(21,184 |
) |
Amortization of unrecognized losses
|
|
|
— |
|
|
|
— |
|
|
|
8,001 |
|
|
|
8,151 |
|
Net periodic pension cost
|
|
$ |
(1,032 |
) |
|
$ |
1,124 |
|
|
$ |
4,522 |
|
|
$ |
737 |
|
|
| Schedule of Assumptions |
Actuarial assumptions used to develop the components of the U.K. plans were as follows:
| |
|
Successor |
|
|
|
|
|
Predecessor |
|
| |
|
Five Months
Ended
March 31,
2020
|
|
|
Seven Months
Ended
October 31,
2019
|
|
|
|
|
| |
Fiscal Year Ended March 31, |
|
| |
|
2019 |
|
|
|
2018 |
|
Discount rate
|
|
|
1.90 |
% |
|
|
1.90 |
% |
|
|
2.60 |
% |
|
|
2.40 |
% |
Expected long-term rate of return on assets
|
|
|
2.80 |
% |
|
|
2.80 |
% |
|
|
3.62 |
% |
|
|
4.41 |
% |
Pension increase rate . |
|
|
2.80 |
% |
|
|
2.80 |
% |
|
|
2.90 |
% |
|
|
3.00 |
% |
|
| Schedule of Investment Strategy |
The market value of the plan’s assets as of March 31, 2020 (Successor) and March 31, 2019 (Predecessor) was allocated between asset classes as follows. Details of target allocation percentages under the Plan Trustee’s investment strategies as of the same dates are also included.
| |
|
Successor |
|
|
|
Predecessor |
|
|
Successor |
|
|
|
Predecessor |
|
Asset Category |
|
Target Allocation
as of March 31,
2020
|
|
|
|
Target Allocation
as of March 31,
2019
|
|
|
Actual Allocation
as of March 31,
2020
|
|
|
|
Actual Allocation
as of March 31,
2019
|
|
Equity securities |
|
|
25.3 |
% |
|
|
|
25.4 |
% |
|
|
23.0 |
% |
|
|
|
24.1 |
% |
Debt securities
|
|
|
25.0 |
% |
|
|
|
34.8 |
% |
|
|
27.1 |
% |
|
|
|
44.5 |
% |
Property
|
|
|
7.4 |
% |
|
|
|
7.4 |
% |
|
|
6.5 |
% |
|
|
|
6.1 |
% |
Other assets
|
|
|
42.3 |
% |
|
|
|
32.4 |
% |
|
|
43.4 |
% |
|
|
|
25.3 |
% |
Total |
|
|
100.0 |
% |
|
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
100.0 |
% |
|
| Schedule of Fair Value Hierarchy |
The following table summarizes, by level within the fair value hierarchy, the plan assets as of March 31, 2020 (Successor), which are valued at fair value (in thousands):
| |
|
|
|
|
|
|
Successor
|
|
|
|
|
|
| |
|
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
|
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
|
|
Balance as of
March 31, 2020
|
|
Cash and cash equivalents
|
|
$ |
8,680 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
8,680 |
|
Cash plus
|
|
|
— |
|
|
|
10,788 |
|
|
|
— |
|
|
|
10,788 |
|
Equity investments - U.K. |
|
|
992 |
|
|
|
— |
|
|
|
— |
|
|
|
992 |
|
Equity investments - Non-U.K.
|
|
|
1,488 |
|
|
|
— |
|
|
|
— |
|
|
|
1,488 |
|
Insurance Linked Securities |
|
|
— |
|
|
|
24,303 |
|
|
|
— |
|
|
|
24,303 |
|
Illiquid credit |
|
|
— |
|
|
|
— |
|
|
|
28,271 |
|
|
|
28,271 |
|
Diversified growth (absolute return) funds
|
|
|
868 |
|
|
|
40,919 |
|
|
|
— |
|
|
|
41,787 |
|
Government debt securities
|
|
|
248 |
|
|
|
86,549 |
|
|
|
— |
|
|
|
86,797 |
|
Corporate debt securities
|
|
|
1,612 |
|
|
|
— |
|
|
|
— |
|
|
|
1,612 |
|
Alternatives
|
|
|
— |
|
|
|
41,167 |
|
|
|
— |
|
|
|
41,167 |
|
Property debt |
|
|
— |
|
|
|
— |
|
|
|
31,247 |
|
|
|
31,247 |
|
Multi asset credit |
|
|
— |
|
|
|
40,918 |
|
|
|
— |
|
|
|
40,918 |
|
Insurance policies
|
|
|
— |
|
|
|
— |
|
|
|
159,087 |
|
|
|
159,087 |
|
Total investments
|
|
$ |
13,888 |
|
|
$ |
244,644 |
|
|
$ |
218,605 |
|
|
$ |
477,137 |
|
The following table summarizes, by level within the fair value hierarchy, the plan assets as of March 31, 2019 (Predecessor), which are valued at fair value (in thousands):
|
|
|
|
|
Predecessor |
|
|
|
|
| |
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
|
Balance as of
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
26,191 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
26,191 |
|
Cash plus |
|
|
— |
|
|
|
84,438 |
|
|
|
— |
|
|
|
84,438 |
|
Equity investments - U.K.
|
|
|
— |
|
|
|
2,476 |
|
|
|
— |
|
|
|
2,476 |
|
Equity investments - Non-U.K.
|
|
|
— |
|
|
|
1,303 |
|
|
|
— |
|
|
|
1,303 |
|
Insurance Linked Securities
|
|
|
— |
|
|
|
— |
|
|
|
25,279 |
|
|
|
25,279 |
|
Illiquid credit
|
|
|
— |
|
|
|
— |
|
|
|
40,004 |
|
|
|
40,004 |
|
Diversified growth (absolute return) funds
|
|
|
— |
|
|
|
86,001 |
|
|
|
— |
|
|
|
86,001 |
|
Government debt securities
|
|
|
— |
|
|
|
138,384 |
|
|
|
— |
|
|
|
138,384 |
|
Corporate debt securities
|
|
|
— |
|
|
|
74,274 |
|
|
|
— |
|
|
|
74,274 |
|
Total investments |
|
$ |
26,191 |
|
|
$ |
386,876 |
|
|
$ |
65,283 |
|
|
$ |
478,350 |
|
|
| Future Benefit Payments |
Estimated future benefit payments over each of the next five fiscal years from March 31, 2020 (Successor) and in the aggregate for the following five fiscal years after fiscal year 2025 are as follows (in thousands):
| |
|
|
Successor |
|
Projected Benefit Payments by the Plans for Fiscal Years Ending March 31, |
|
|
Payments |
|
2021 |
|
|
$ |
21,451 |
|
2022 |
|
|
|
21,823 |
|
2023 |
|
|
|
22,567 |
|
2024 |
|
|
|
22,815 |
|
2025 |
|
|
|
23,187 |
|
Aggregate 2026 - 2030
|
|
|
|
119,408 |
|
|
| Schedule of Stock Option Activity |
No stock-based compensation was awarded in fiscal year 2020 under the 2007 Plan. The 2007 Plan and all awards thereunder were cancelled effective upon emergence from bankruptcy on October 31, 2019 (Predecessor).
| |
|
Weighted
Average
Exercise
Prices
|
|
|
Number of
Shares
|
|
| |
| |
|
|
|
|
|
|
Outstanding at March 31, 2019 (Predecessor)
|
|
$ |
26.49 |
|
|
|
3,217,723 |
|
Expired or forfeited
|
|
|
25.74 |
|
|
|
(130,023 |
) |
Cancelled
|
|
|
26.54 |
|
|
|
(3,087,700 |
) |
Outstanding at October 31, 2019 (Predecessor)
|
|
|
— |
|
|
|
— |
|
|
| Schedule of Black Scholes Assumptions |
The following table shows the assumptions used to compute the stock-based compensation expense for stock option grants issued during fiscal year 2019 (Predecessor) and fiscal year 2018 (Predecessor).
| |
|
Predecessor |
|
|
|
Fiscal Year Ended
March 31,
|
|
|
|
2019 |
|
|
2018 |
|
Risk free interest rate |
|
|
2.76 |
% |
|
|
1.78 |
% |
Expected life (years)
|
|
|
5 |
|
|
|
5 |
|
Volatility |
|
|
62.8 |
% |
|
|
56.1 |
% |
Dividend yield |
|
|
— |
% |
|
|
3.98 |
% |
Weighted average grant-date fair value of options granted |
|
$ |
6.71 |
|
|
$ |
2.53 |
|
|
| Schedule of Non-vested Restricted Stock and Restricted Stock Units |
The following is a summary of non-vested restricted stock:
| |
|
Units |
|
|
Weighted
Average
Grant Date Fair
Value per Unit
|
|
Non-vested as of March 31, 2019 (Predecessor)
|
|
|
860,362 |
|
|
$ |
9.43 |
|
Forfeited
|
|
|
(18,788 |
) |
|
|
9.39 |
|
Cancelled
|
|
|
(841,574 |
) |
|
|
9.43 |
|
Non-vested as of October 31, 2019 (Predecessor) |
|
|
— |
|
|
|
— |
|
|
| Schedule of Separation Programs |
The expense related to the VSPs and ISPs is follows (in thousands):
| |
|
Successor |
|
|
|
|
|
Predecessor |
|
| |
|
Five Months
Ended
March 31,
|
|
|
Seven Months
Ended
October 31,
|
|
|
Fiscal Year Ended March 31, |
|
VSP: |
|
2020
|
|
|
2019
|
|
|
2019 |
|
|
2018
|
|
Direct cost
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
105 |
|
General and administrative
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
1,017 |
|
Total
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,122 |
|
ISP: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct cost
|
|
$ |
104 |
|
|
$ |
4,376 |
|
|
$ |
7,125 |
|
|
$ |
11,538 |
|
General and administrative
|
|
|
123 |
|
|
|
163 |
|
|
|
2,110 |
|
|
|
9,676 |
|
Total
|
|
$ |
227 |
|
|
$ |
4,539 |
|
|
$ |
9,235 |
|
|
$ |
21,214 |
|
|
| Schedule of Stock-based Compensation Expense for Stock Options |
The following table shows the assumptions used to compute the stock-based compensation expense for stock options granted during the five months ended March 31, 2020 (Successor):
| |
|
Common Stock
Options
|
|
|
Preferred Stock
Options
|
|
Risk free interest rate
|
|
1.61% to 1.91% |
|
|
1.61% to 1.66% |
|
Expected life (years)
|
|
3 to 10 years |
|
|
3 to 4 years |
|
Volatility
|
|
|
44% – 45 |
% |
|
|
45% – 47 |
% |
Dividend yield
|
|
|
— |
% |
|
|
— |
% |
Weighted average exercise price of options granted
|
|
$36.37 per option |
|
|
$36.37 per option |
|
Weighted average grant-date fair value of options granted
|
|
$13.00 per option |
|
|
$59.52 per option |
|
|