v3.26.1
PENSION BENEFIT PLANS
 12 Months Ended
Mar. 31, 2026
Retirement Benefits [Abstract]  
PENSION BENEFIT PLANS

NOTE 16 – PENSION BENEFIT PLANS

401(k) Plan

The Company has a defined contribution program for certain employees that is qualified under Section 401(k) of the Internal Revenue Code of 1986, as amended. The Company matches 50% of the employee's contribution up to 6% of the employee’s salary. NetScout contributions vest at a rate of 25% per year of service. NetScout made matching contributions of $5.7 million, $5.8 million, and $7.0 million to the plan for the fiscal years ended March 31, 2026, 2025 and 2024, respectively.

Defined Benefit Pension Plan

Certain of the Company's non-U.S. employees participate in certain noncontributory defined benefit pension plans. None of the Company's employees in the U.S. participate in any noncontributory defined benefit pension plans. In general, these plans are funded based on considerations relating to legal requirements, underlying asset returns, the plan's funded status, the anticipated deductibility of the contribution, local practices, market conditions, interest rates and other factors.

The Company recognizes on its balance sheet a liability equal to the under-funded benefit obligation of its defined benefit pension plan. Actuarial gains or losses are not recognized as components of net periodic benefit cost, but are recognized, net of tax, as a component of other comprehensive income (loss).

The following sets forth the amounts included in accumulated other comprehensive income (loss) at March 31, 2026 and 2025 (in thousands):

 

 

March 31,

 

 

2026

 

 

2025

 

Unrecognized actuarial net gain

$

7,392

 

 

$

6,732

 

 

For fiscal year 2026 and 2025, the unrecognized net actuarial gains exceeded 10% of the projected benefit obligation at the beginning of the fiscal year, therefore, amortization of such excess has been included in net periodic benefit costs during the years ended March 31, 2026 and 2025. The amortization period is the average remaining service period that active employees are expected to receive benefits, unless a plan is mostly inactive in which case the amortization period is the average remaining life expectancy of the plan participants.

The following sets forth the change in accumulated other comprehensive income (loss) during the fiscal years ended March 31, 2026 and 2025 (in thousands):

 

 

March 31,

 

 

2026

 

 

2025

 

Unrecognized actuarial gain

$

(1,305

)

 

$

(1,396

)

Amortization of net actuarial gain

 

644

 

 

 

466

 

Change in accumulated other comprehensive income (loss)

$

(661

)

 

$

(930

)

 

The following sets forth the components of the Company's net periodic pension cost of the noncontributory defined benefit pension plans for the fiscal years ended March 31, 2026, 2025, and 2024 (in thousands):

 

 

Fiscal Years Ended March 31,

 

 

2026

 

 

2025

 

 

2024

 

Service cost

$

173

 

 

$

193

 

 

$

206

 

Interest cost

 

1,100

 

 

 

981

 

 

 

999

 

Amortization of net gain

 

(644

)

 

 

(466

)

 

 

(928

)

Net periodic pension cost

$

629

 

 

$

708

 

 

$

277

 

 

The components of the change in benefit obligation of the pension plan at March 31, 2026 and 2025 are as follows (in thousands):

 

 

March 31,

 

 

2026

 

 

2025

 

Benefit obligation, at beginning of year

$

26,023

 

 

$

27,051

 

Service cost

 

173

 

 

 

193

 

Interest cost

 

1,100

 

 

 

981

 

Benefits paid and other

 

(841

)

 

 

(645

)

Actuarial gain

 

(1,305

)

 

 

(1,396

)

Foreign exchange rate impact

 

1,863

 

 

 

(161

)

Benefit obligation, at end of year

$

27,013

 

 

$

26,023

 

 

The Company's benefit obligation of the pension plan is reported in the following components of the Company's consolidated balance sheet at March 31, 2026 and 2025:

 

 

March 31,

 

 

2026

 

 

2025

 

Accrued compensation

$

997

 

 

$

830

 

Accrued long-term retirement benefits

 

26,016

 

 

 

25,193

 

Benefit obligation, at end of year

$

27,013

 

 

$

26,023

 

 

The reconciliation of the beginning and ending balances of the fair value of the assets of the pension plan at March 31, 2026 and 2025 are as follows (in thousands):

 

 

March 31,

 

 

2026

 

 

2025

 

Fair value to plan assets, at beginning of year

$

—

 

 

$

—

 

Employer direct benefit payments

 

841

 

 

 

645

 

Benefits paid and other

 

(841

)

 

 

(645

)

Fair value of plan assets, at end of year

$

—

 

 

$

—

 

 

Weighted average assumptions used to determine net periodic pension cost at date of measurement:

 

 

March 31,

 

2026

 

 

2025

 

 

2024

 

Discount rate

 

4.40

%

 

4.00

%

 

 

3.70

%

Rate of compensation increase

 

3.00

%

 

3.00

%

 

 

3.00

%

 

During the fiscal year ended March 31, 2026, the Company contributed $0.8 million to its defined benefit pension plan. The following sets forth benefit payments, which reflect expected future service, as appropriate, expected to be paid by the plan in the periods indicated (in thousands):

 

2027

$

997

 

2028

$

1,121

 

2029

$

1,206

 

2030

$

1,282

 

2031

$

1,376

 

2032-2036

$

8,049