XML 30 R17.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Retirement Benefits | 12 Months Ended
--- | ---
Dec. 31, 2021
Retirement Benefits [Abstract] |
Retirement Benefits | Retirement Benefits The Company has a defined contribution plan, under Section 401(k) of the Internal Revenue Code, which provides retirement benefits to most U.S. employees. For all employees who choose to participate, the Company matches employee contributions at a 100 percent rate, up to 3 percent of the employee’s compensation. For employees not covered by a defined benefit plan, the Company contributed an amount equal to 2 percent of the employee’s compensation. Employer contributions totaled $10.0 million in 2021, $8.7 million in 2020 and $8.4 million in 2019. The Company’s postretirement medical plan provides certain medical benefits for retired U.S. employees. Employees hired before January 1, 2005, are eligible for these benefits upon retirement and fulfillment of other eligibility requirements as specified by the plan. The Company has both funded and unfunded noncontributory defined benefit pension plans that together cover most U.S. employees hired before January 1, 2006, certain directors and some of the employees of the Company’s non-U.S. subsidiaries. For U.S. plans, benefits are based on years of service and the highest 5 consecutive years’ earnings in the 10 years preceding retirement. The Company funds annually in amounts consistent with minimum funding levels and maximum tax deduction limits. In October of 2021, the Company entered into an agreement under which approximately $63 million of pension obligations of its two U.S. funded defined benefit pension plans were transferred to an insurance company. Under the agreement, the Company purchased a group annuity contract for approximately 417 plan participants that provides for an irrevocable commitment to make annuity payments to the affected participants. The payment obligation and administration thereof for the affected participants was transferred from the pension plans to the insurance company. The transfer did not change the amount of the monthly pension benefits received by the affected participants. Subsequent to the transfer of pension obligations, the smaller of the two pension plans was merged into the larger plan in December of 2021, with the larger plan being the surviving funded pension plan. This arrangement is part of the Company’s effort to reduce the overall size and volatility of its pension plan obligations. The purchase of the group annuity contract was funded through existing plan assets. The Company recognized a non-cash pension settlement loss of approximately $12 million as a result of the transaction. This charge represents the acceleration of deferred charges currently accrued in accumulated other comprehensive income. Investment policies and strategies of the U.S. funded pension plan are based on participant demographics. As the plan covers active participants and retirees with higher benefit amounts, investments are based on a long-term view of economic growth and weighted toward equity securities. The primary goal of the plan’s investments is to ensure that the plan’s liabilities are met over time. In developing strategic asset allocation guidelines, an emphasis is placed on the long-term characteristics of individual asset classes, and the benefits of diversification among multiple asset classes. The plan invests primarily in domestic and international equities, fixed income securities, which include treasuries, highly-rated corporate bonds and high-yield bonds and real estate. Strategic target allocations for plan assets are 53 percent equity securities, 42 percent fixed income securities and 5 percent real estate and alternative investments. Plan assets are held in a trust for the benefit of plan participants and are invested in various commingled funds, most of which are sponsored by the trustee. The fair values for commingled equity, fixed-income and real estate investments are measured using net asset values, which take into consideration the value of underlying fund investments, as well as the other accrued assets and liabilities of a fund, in order to determine a per share market value. Certain trustee-sponsored funds allow redemptions monthly or quarterly, with 10 days or 60 days advance notice, while most of the funds allow redemptions daily. The plan had unfunded commitments to make additional investments in certain funds totaling $2.4 million as of December 31, 2021 and December 25, 2020. The Company maintains a defined contribution plan covering employees of a Swiss subsidiary, funded by Company and employee contributions. Responsibility for pension coverage under Swiss law has been transferred to a Swiss insurance company. Plan assets are invested in an insurance contract that guarantees a federally mandated annual rate of return. The value of the plan assets is effectively the value of the insurance contract. The performance of the underlying assets held by the insurance company has no direct impact on the surrender value of the insurance contract. The insurance backed assets have no active market and are classified as level 3 in the fair value hierarchy. Assets of all plans by category and fair value measurement level were as follows (in thousands):
| Level |  | 2021 |  | 2020
Cash and cash equivalents | 1 |  | $ | 303 |  |  | $ | 1,234 |
Insurance contract | 3 |  | 30,926 |  |  | 31,877 |
Investments categorized in fair value hierarchy |  |  | 31,229 |  |  | 33,111 |
Equity |  |  |  |  |
U.S. Large Cap | N/A |  | 110,569 |  |  | 89,003 |
U.S. Small/Mid Cap | N/A |  | 11,338 |  |  | 20,313 |
International | N/A |  | 56,128 |  |  | 56,761 |
Total equity |  |  | 178,035 |  |  | 166,077 |
Fixed income | N/A |  | 130,774 |  |  | 161,706 |
Real estate and other | N/A |  | 7,862 |  |  | 12,671 |
Investments measured at net asset value |  |  | 316,671 |  |  | 340,454 |
Total |  |  | $ | 347,900 |  |  | $ | 373,565 |
The following table is a reconciliation of pension assets measured at fair value using level 3 inputs (in thousands):
| 2021 |  | 2020
Balance, beginning of year | $ | 31,877 |  |  | $ | 27,675 |
Purchases | 2,430 |  |  | 2,255 |
Redemptions | (2,556) |  |  | (1,425) |
Unrealized gains | (825) |  |  | 3,372 |
Balance, end of year | $ | 30,926 |  |  | $ | 31,877 |
The following provides a reconciliation of the changes in the plans’ benefit obligations and fair value of assets over the periods ending December 31, 2021, and December 25, 2020, and a statement of the funded status as of the same dates (in thousands):
| Pension Benefits |  | Postretirement Medical Benefits
| 2021 |  | 2020 |  | 2021 |  | 2020
Change in benefit obligation |  |  |  |  |  |  |
Obligation, beginning of year | $ | 510,652 |  |  | $ | 449,419 |  |  | $ | 34,458 |  |  | $ | 30,646 |
Service cost | 9,355 |  |  | 9,361 |  |  | 670 |  |  | 609 |
Interest cost | 11,409 |  |  | 13,313 |  |  | 832 |  |  | 1,016 |
Actuarial (gain) loss | (31,093) |  |  | 46,545 |  |  | (2,391) |  |  | 3,572 |
Benefit payments | (13,360) |  |  | (13,602) |  |  | (1,447) |  |  | (1,385) |
Plan amendments | (1,458) |  |  | (529) |  |  | — |  |  | — |
Settlements | (64,886) |  |  | — |  |  | — |  |  | — |
Exchange rate changes | (2,568) |  |  | 6,145 |  |  | — |  |  | — |
Obligation, end of year | $ | 418,051 |  |  | $ | 510,652 |  |  | $ | 32,122 |  |  | $ | 34,458 |
Change in plan assets |  |  |  |  |  |  |
Fair value, beginning of year | $ | 373,565 |  |  | $ | 303,944 |  |  | $ | — |  |  | $ | — |
Actual return on assets | 30,984 |  |  | 58,068 |  |  | — |  |  | — |
Employer contributions | 22,493 |  |  | 22,237 |  |  | 1,447 |  |  | 1,385 |
Benefit payments | (13,360) |  |  | (13,602) |  |  | (1,447) |  |  | (1,385) |
Settlements | (64,886) |  |  | — |  |  | — |  |  | — |
Exchange rate changes | (896) |  |  | 2,918 |  |  | — |  |  | — |
Fair value, end of year | $ | 347,900 |  |  | $ | 373,565 |  |  | $ | — |  |  | $ | — |
Funded status | $ | (70,151) |  |  | $ | (137,087) |  |  | $ | (32,122) |  |  | $ | (34,458) |
Amounts recognized in consolidated balance sheets |  |  |  |  |  |  |
Non-current assets | $ | — |  |  | $ | 9,144 |  |  | $ | — |  |  | $ | — |
Current liabilities | 1,769 |  |  | 1,750 |  |  | 1,768 |  |  | 1,714 |
Non-current liabilities | 68,382 |  |  | 144,481 |  |  | 30,354 |  |  | 32,744 |
Net | $ | 70,151 |  |  | $ | 137,087 |  |  | $ | 32,122 |  |  | $ | 34,458 |
Changes in discount rates used to value pension obligations were the main drivers of actuarial gains in 2021 and actuarial losses in 2020. In 2021 and 2020, the Company made a $20 million voluntary contribution each year to one of its U.S. qualified defined benefit plans. The accumulated benefit obligation as of year-end for all defined benefit pension plans was $388 million for 2021 and $465 million for 2020. Information for plans with an accumulated benefit obligation in excess of plan assets follows (in thousands):
| 2021 |  | 2020
Projected benefit obligation | $ | 91,678 |  |  | $ | 463,959 |
Accumulated benefit obligation | 88,927 |  |  | 418,372 |
Fair value of plan assets | 30,926 |  |  | 317,727 |
The components of net periodic benefit cost for the plans for 2021, 2020 and 2019 were as follows (in thousands):
| Pension Benefits |  | Postretirement Medical Benefits
| 2021 |  | 2020 |  | 2019 |  | 2021 |  | 2020 |  | 2019
Service cost-benefits earned during the period | $ | 9,355 |  |  | $ | 9,361 |  |  | $ | 7,735 |  |  | $ | 670 |  |  | $ | 609 |  |  | $ | 545 |
Interest cost on projected benefit obligation | 11,409 |  |  | 13,313 |  |  | 15,103 |  |  | 832 |  |  | 1,016 |  |  | 1,162 |
Expected return on assets | (20,767) |  |  | (18,814) |  |  | (17,152) |  |  | — |  |  | — |  |  | — |
Amortization of prior service cost | 246 |  |  | 294 |  |  | 279 |  |  | — |  |  | — |  |  | — |
Amortization of net loss | 9,248 |  |  | 10,243 |  |  | 8,392 |  |  | 1,002 |  |  | 733 |  |  | 273 |
Settlement loss | 12,285 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Cost of pension plans which are not significant and have not adopted ASC 715 | 368 |  |  | 168 |  |  | 110 |  |  | N/A |  | N/A |  | N/A
Net periodic benefit cost | $ | 22,144 |  |  | $ | 14,565 |  |  | $ | 14,467 |  |  | $ | 2,504 |  |  | $ | 2,358 |  |  | $ | 1,980 |
Net periodic benefit cost is disaggregated between service cost presented as operating expense and other components of pension cost presented as non-operating expense. Other components of pension cost and changes in cash surrender value of insurance contracts intended to fund certain non-qualified pension and deferred compensation arrangements included in non-operating expenses totaled $12 million in 2021, $5 million in 2020 and $5 million in 2019. Amounts recognized in other comprehensive income (loss) in 2021 and 2020 were as follows (in thousands):
| Pension Benefits |  | Postretirement Medical Benefits
| 2021 |  | 2020 |  | 2021 |  | 2020
Net gain (loss) arising during the period | $ | 42,039 |  |  | $ | (8,872) |  |  | $ | 2,391 |  |  | $ | (3,572) |
Amortization of net (gain) loss | 9,248 |  |  | 10,243 |  |  | 1,002 |  |  | 733 |
Prior service credit (cost) arising during the period | 1,458 |  |  | 529 |  |  | — |  |  | — |
Settlement (gain) loss | 12,285 |  |  | — |  |  | — |  |  | — |
Amortization of prior service (credit) cost | 246 |  |  | 294 |  |  | — |  |  | — |
Total | $ | 65,276 |  |  | $ | 2,194 |  |  | $ | 3,393 |  |  | $ | (2,839) |
Amounts included in accumulated other comprehensive income (loss) as of December 31, 2021 and December 25, 2020, that had not yet been recognized as components of net periodic benefit cost, were as follows (in thousands):
| Pension Benefits |  | Postretirement Medical Benefits
| 2021 |  | 2020 |  | 2021 |  | 2020
Prior service cost | $ | 1,293 |  |  | $ | (439) |  |  | $ | — |  |  | $ | — |
Net loss | (70,995) |  |  | (134,469) |  |  | (7,498) |  |  | (10,891) |
Net before income taxes | (69,702) |  |  | (134,908) |  |  | (7,498) |  |  | (10,891) |
Income taxes | 15,443 |  |  | 29,274 |  |  | 1,650 |  |  | 2,396 |
Net | $ | (54,259) |  |  | $ | (105,634) |  |  | $ | (5,848) |  |  | $ | (8,495) |
Assumptions used to determine the Company’s benefit obligations are shown below:
|  | Pension Benefits |  | Postretirement Medical Benefits
Weighted average assumptions |  | 2021 |  | 2020 |  | 2021 |  | 2020
U.S. Plans |  |  |  |  |  |  |  |
Discount rate |  | 3.0 | % |  | 2.6 | % |  | 2.9 | % |  | 2.6 | %
Rate of compensation increase |  | 2.7 | % |  | 2.7 | % |  | N/A |  | N/A
Non-U.S. Plans |  |  |  |  |  |  |  |
Discount rate |  | 0.4 | % |  | 0.4 | % |  | N/A |  | N/A
Rate of compensation increase |  | 1.3 | % |  | 1.3 | % |  | N/A |  | N/A
Assumptions used to determine the Company’s net periodic benefit cost are shown below:
|  | Pension Benefits |  | Postretirement Medical Benefits
Weighted average assumptions |  | 2021 |  | 2020 |  | 2019 |  | 2021 |  | 2020 |  | 2019
U.S. Plans |  |  |  |  |  |  |  |  |  |  |  |
Discount rate |  | 2.6 | % |  | 3.5 | % |  | 4.5 | % |  | 2.6 | % |  | 3.4 | % |  | 4.5 | %
Rate of compensation increase |  | 2.7 | % |  | 2.8 | % |  | 2.8 | % |  | N/A |  | N/A |  | N/A
Expected return on assets |  | 6.3 | % |  | 6.8 | % |  | 7.0 | % |  | N/A |  | N/A |  | N/A
Non-U.S. Plans |  |  |  |  |  |  |  |  |  |  |  |
Discount rate |  | 0.4 | % |  | 0.4 | % |  | 1.3 | % |  | N/A |  | N/A |  | N/A
Rate of compensation increase |  | 1.3 | % |  | 1.3 | % |  | 1.4 | % |  | N/A |  | N/A |  | N/A
Expected return on assets |  | 1.0 | % |  | 1.5 | % |  | 2.0 | % |  | N/A |  | N/A |  | N/A
Several sources of information are considered in determining the expected rate of return assumption, including the allocation of plan assets, the input of actuaries and professional investment advisers, and historical long-term returns. In setting the return assumption, the Company recognizes that historical returns are not always indicative of future returns and also considers the long-term nature of its pension obligations. The Company’s U.S. retirement medical plan limits the annual cost increase that will be paid by the Company to 3 percent. In measuring the accumulated postretirement benefit obligation (APBO), the annual trend rate for health care costs was assumed to be 7.6 percent for 2022, decreasing each year to a constant rate of 4.5 percent for 2038 and thereafter, subject to the plan’s annual increase limitation. The Company expects to contribute $1.8 million to its unfunded pension plans and $1.8 million to the postretirement medical plan in 2022. The Company will not be required to make contributions to the funded pension plan under minimum funding requirements for 2022. Estimated future benefit payments are as follows (in thousands):
| Pension Benefits |  | Postretirement Medical Benefits
2022 | $ | 13,553 |  |  | $ | 1,768 |
2023 | 15,097 |  |  | 1,775 |
2024 | 16,801 |  |  | 1,755 |
2025 | 16,182 |  |  | 1,734 |
2026 | 18,073 |  |  | 1,713 |
Years 2027-2031 | 102,198 |  |  | 8,362 |

X
- References No definition available. + Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for retirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 55 -Paragraph 17 -URI http://asc.fasb.org/extlink&oid=123450688&loc=d3e4179-114921 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section S99 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=21916913&loc=d3e273930-122802 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(i) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (o) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (p) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 70 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=49170846&loc=d3e28014-114942 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 3 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=6414203&loc=d3e39689-114964 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(iv)(03) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (q) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (r)(1) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(iii) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (l) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (r)(2) -URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration