Annual report pursuant to Section 13 and 15(d)

Deferred Compensation and Retirement Plans (Tables)

v3.19.2
Deferred Compensation and Retirement Plans (Tables)
12 Months Ended
Apr. 30, 2019
Total Benefit Obligations

The total benefit obligations for these plans were as follows:

 

 

 

Year Ended April 30,

 

 

 

2019

 

 

2018

 

 

 

(in thousands)

 

Deferred compensation and pension plans

 

$

123,238

 

 

$

100,404

 

Medical and Life Insurance plan

 

 

7,310

 

 

 

7,157

 

International retirement plans

 

 

14,744

 

 

 

13,729

 

Executive Capital Accumulation Plan

 

 

130,161

 

 

 

128,430

 

Total benefit obligation

 

 

275,453

 

 

 

249,720

 

Less: current portion of benefit obligation

 

 

(17,818

)

 

 

(21,991

)

Non-current benefit obligation

 

$

257,635

 

 

$

227,729

 

Fair Value Measurements of Defined Benefit Plan Assets The fair value measurements of the defined benefit plan assets fall within the following levels of the fair value hierarchy as of April 30, 2019 and 2018:

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(in thousands)

 

April 30, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

$

 

 

$

24,931

 

 

$

 

 

$

24,931

 

Money market funds

 

 

200

 

 

 

 

 

 

 

 

 

200

 

Total

 

$

200

 

 

$

24,931

 

 

$

 

 

$

25,131

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

April 30, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

$

 

 

$

25,899

 

 

$

 

 

$

25,899

 

Money market funds

 

 

191

 

 

 

 

 

 

 

 

 

191

 

Total

 

$

191

 

 

$

25,899

 

 

$

 

 

$

26,090

 

 

Components of Net Periodic Benefits Costs

The components of net periodic benefits costs are as follows:

 

 

 

Year Ended April 30,

 

 

 

2019

 

 

2018

 

 

2017

 

 

 

(in thousands)

 

Service cost

 

$

17,281

 

 

$

11,373

 

 

$

5,402

 

Interest cost

 

 

5,044

 

 

 

3,787

 

 

 

3,925

 

Amortization of actuarial loss

 

 

1,798

 

 

 

2,308

 

 

 

3,051

 

Expected return on plan assets

 

 

(1,568

)

 

 

(1,594

)

 

 

(1,559

)

Net periodic benefit cost (1)

 

$

22,555

 

 

$

15,874

 

 

$

10,819

 

Weighted-Average Assumptions Used in Calculating Benefit Obligation

The weighted-average assumptions used in calculating the benefit obligations were as follows:

 

 

 

Year Ended April 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Discount rate, beginning of year

 

 

3.93

%

 

 

3.57

%

 

 

3.18

%

Discount rate, end of year

 

 

3.57

%

 

 

3.93

%

 

 

3.57

%

Rate of compensation increase

 

 

0.00

%

 

 

0.00

%

 

 

0.00

%

Expected long-term rates of return on plan assets

 

 

6.00

%

 

 

6.25

%

 

 

6.50

%

Expected Benefit Payments Associated With Future Service

Benefit payments, which reflect expected future service, as appropriate, are expected to be paid over the next ten years as follows:

 

Year Ending April 30,

 

Deferred Retirement Plans

 

 

 

(in thousands)

 

2020

 

$

10,595

 

2021

 

 

10,507

 

2022

 

 

10,068

 

2023

 

 

9,305

 

2024

 

 

19,150

 

2025-2029

 

 

165,527

 

Deferred Compensation and Pension Plans  
Reconciliation Of Benefit Obligation

The following tables reconcile the benefit obligation for the deferred compensation plans:

 

 

 

Year Ended April 30,

 

 

 

2019

 

 

2018

 

 

 

(in thousands)

 

Change in benefit obligation:

 

 

 

 

 

 

 

 

Benefit obligation, beginning of year

 

$

126,494

 

 

$

121,042

 

Service cost

 

 

17,281

 

 

 

11,373

 

Interest cost

 

 

5,044

 

 

 

3,787

 

Actuarial loss (gain)

 

 

7,803

 

 

 

(1,574

)

Administrative expenses paid

 

 

(272

)

 

 

(166

)

Benefits paid from plan assets

 

 

(1,877

)

 

 

(1,833

)

Benefits paid from cash

 

 

(6,104

)

 

 

(6,135

)

Benefit obligation, end of year

 

 

148,369

 

 

 

126,494

 

 

 

 

 

 

 

 

 

 

Change in fair value of plan assets:

 

 

 

 

 

 

 

 

Fair value of plan assets, beginning of year

 

 

26,090

 

 

 

25,446

 

Actual return on plan assets

 

 

1,160

 

 

 

2,425

 

Benefits paid from plan assets

 

 

(1,877

)

 

 

(1,833

)

Administrative expenses paid

 

 

(272

)

 

 

(166

)

Employer contributions

 

 

30

 

 

 

218

 

Fair value of plan assets, end of year

 

 

25,131

 

 

 

26,090

 

 

 

 

 

 

 

 

 

 

Funded status and balance, end of year (1)

 

$

(123,238

)

 

$

(100,404

)

 

 

 

 

 

 

 

 

 

Current liability

 

$

8,331

 

 

$

6,496

 

Non-current liability

 

 

114,907

 

 

 

93,908

 

Total liability

 

$

123,238

 

 

$

100,404

 

 

 

 

 

 

 

 

 

 

Plan Assets - weighted-average asset allocation:

 

 

 

 

 

 

 

 

Debt securities

 

 

54

%

 

 

55

%

Equity securities

 

 

45

%

 

 

44

%

Other

 

 

1

%

 

 

1

%

Total

 

 

100

%

 

 

100

%

 

(1)

The Company purchased COLI contracts insuring the lives of certain employees eligible to participate in the deferred compensation and pension plans as a means of funding benefits under such plans. As of April 30, 2019 and 2018, the Company held contracts with gross CSV of $219.2 million and $186.8 million, offset by outstanding policy loans of $93.2 million and $66.7 million, respectively.

Medical and Life Insurance plan  
Components of Net Periodic Benefits Costs

The components of net periodic benefits costs are as follows:

 

 

 

Year Ended April 30,

 

 

 

2019

 

 

2018

 

 

2017

 

 

 

(in thousands)

 

Service cost

 

$

 

 

$

91

 

 

$

150

 

Interest cost

 

 

243

 

 

 

369

 

 

 

431

 

Net periodic service credit amortization

 

 

(308

)

 

 

(308

)

 

 

 

Amortization of actuarial gain

 

 

(14

)

 

 

 

 

 

 

Net periodic benefit cost (1)

 

$

(79

)

 

$

152

 

 

$

581

 

Weighted-Average Assumptions Used in Calculating Benefit Obligation

The weighted-average assumptions used in calculating the medical and life insurance plan were as follows:

 

 

 

Year Ended April 30,

 

 

 

2019

 

 

2018

 

 

2017

 

Discount rate, beginning of year

 

 

3.94

%

 

 

3.75

%

 

 

3.36

%

Discount rate, end of year

 

 

3.67

%

 

 

3.94

%

 

 

3.75

%

Healthcare care cost trend rate

 

 

6.50

%

 

 

7.00

%

 

 

7.00

%

Expected Benefit Payments Associated With Future Service

Benefit payments, which reflect expected future service, as appropriate, are expected to be paid over the next ten years as follows:

 

Year Ending April 30,

 

Medical and Life Insurance

 

 

 

(in thousands)

 

2020

 

$

651

 

2021

 

 

646

 

2022

 

 

632

 

2023

 

 

616

 

2024

 

 

597

 

2025-2029

 

 

2,542

 

Reconciliation of Benefit Obligation

The following table reconciles the benefit obligation for the medical and life insurance plan:

 

 

 

Year End April 30,

 

 

 

2019

 

 

2018

 

 

 

(in thousands)

 

Change in benefit obligation:

 

 

 

 

 

 

 

 

Benefit obligation, beginning of year

 

$

7,157

 

 

$

12,147

 

Plan amendment

 

 

 

 

 

(4,008

)

Service cost

 

 

 

 

 

91

 

Interest cost

 

 

243

 

 

 

369

 

Actuarial loss (gain)

 

 

520

 

 

 

(875

)

Benefits paid

 

 

(610

)

 

 

(567

)

Benefit obligation, end of year

 

$

7,310

 

 

$

7,157

 

 

 

 

 

 

 

 

 

 

Current liability

 

$

643

 

 

$

668

 

Non-current liability

 

 

6,667

 

 

 

6,489

 

Total liability

 

$

7,310

 

 

$

7,157

 

Executive Capital Accumulation Plan  
Reconciliation of Benefit Obligation

Changes in the ECAP liability were as follows:

 

 

 

Year Ended April 30,

 

 

 

2019

 

 

2018

 

 

 

(in thousands)

 

Balance, beginning of year

 

$

128,430

 

 

$

111,584

 

Employee contributions

 

 

4,852

 

 

 

5,036

 

Amortization of employer contributions

 

 

9,573

 

 

 

12,175

 

Gain on investment

 

 

8,697

 

 

 

11,095

 

Employee distributions

 

 

(20,891

)

 

 

(11,923

)

Exchange rate fluctuations

 

 

(500

)

 

 

463

 

Balance, end of year

 

 

130,161

 

 

 

128,430

 

Less: current portion

 

 

(8,844

)

 

 

(14,827

)

Non-current portion

 

$

121,317

 

 

$

113,603