Annual report pursuant to Section 13 and 15(d)

Employee Benefit Plans

v3.7.0.1
Employee Benefit Plans
 12 Months Ended
Jan. 31, 2017
Postemployment Benefits [Abstract]  
Employee Benefit Plans

13. Employee Benefit Plans

We sponsor a 401(k) retirement savings plan (the “Plan”) that covers substantially all domestic employees of SeaChange. The Plan allows employees to contribute gross salary through payroll deductions up to the legally mandated limit based on their jurisdiction. Participation in the Plan is available to full-time employees who meet eligibility requirements. We also contribute to various retirement plans for our employees outside the United States according to the local plans specific to each foreign location. Amounts contributed will vary. During fiscal 2017, 2016 and 2015, we contributed $1.4 million, $1.5 million and $1.7 million, respectively.

 

We have a statutory pension benefit obligation covering current employees in the Philippines. The components of the change in this pension benefit obligation as of January 31, 2017 and 2016 is as follows:

 

     January 31,  
         2017              2016      
     (Amounts in thousands)  

Projected benefit obligation, beginning of fiscal year

    $ 1,063      $ 1,247  

Service cost

      238        288  

Interest cost

      54        51  

Actuarial gain

      (801 )       (435 ) 

Foreign currency exchange rate changes

      (24 )       (88 ) 
  

 

 

     

 

 

  

Projected benefit obligation, end of fiscal year

    $ 530      $ 1,063  
  

 

 

     

 

 

  

Funded status at end of fiscal year(1)

    $ 530      $ 1,063  
  

 

 

     

 

 

  

 

(1) These unfunded amounts are included in other liabilities, long-term on our consolidated balance sheets for the periods presented.

The following sets forth the components of our net periodic benefit cost under the pension plan:

 

     January 31,  
     2017      2016      2015  
     (Amounts in thousands)  

Service cost

    $ 238      $ 288      $ 176  

Interest cost

      54        51        39  

Actuarial (gain) loss

      (801 )       (435 )       379  
  

 

 

     

 

 

     

 

 

  

Net periodic benefit cost

    $ (509 )     $ (96 )     $ 594  
  

 

 

     

 

 

     

 

 

  

Key weighted average assumptions used in the accounting for the pension plan to determine the benefit obligation and net benefit cost were as follows:

 

     January 31,  
     2017     2016  

Discount rate

      5.72 %      5.08 % 

Compensation increase rate

      5.00 %      7.00 % 

We do not anticipate to begin paying this obligation until fiscal 2022 and estimate $0.2 million in benefit payments through fiscal 2028.