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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):
Level20212020
Cash and cash equivalents1$303 $1,234 
Insurance contract330,926 31,877 
Investments categorized in fair value hierarchy31,229 33,111 
Equity
U.S. Large CapN/A110,569 89,003 
U.S. Small/Mid CapN/A11,338 20,313 
InternationalN/A56,128 56,761 
Total equity178,035 166,077 
Fixed incomeN/A130,774 161,706 
Real estate and otherN/A7,862 12,671 
Investments measured at net asset value316,671 340,454 
Total$347,900 $373,565 


The following table is a reconciliation of pension assets measured at fair value using level 3 inputs (in thousands):
20212020
Balance, beginning of year$31,877 $27,675 
Purchases2,430 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 BenefitsPostretirement Medical Benefits
 2021202020212020
Change in benefit obligation
Obligation, beginning of year$510,652 $449,419 $34,458 $30,646 
Service cost9,355 9,361 670 609 
Interest cost11,409 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 assets30,984 58,068 — — 
Employer contributions22,493 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 liabilities1,769 1,750 1,768 1,714 
Non-current liabilities68,382 144,481 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):
20212020
Projected benefit obligation$91,678 $463,959 
Accumulated benefit obligation88,927 418,372 
Fair value of plan assets30,926 317,727 
The components of net periodic benefit cost for the plans for 2021, 2020 and 2019 were as follows (in thousands):
 Pension BenefitsPostretirement Medical Benefits
 202120202019202120202019
Service cost-benefits earned during the period$9,355 $9,361 $7,735 $670 $609 $545 
Interest cost on projected benefit obligation11,409 13,313 15,103 832 1,016 1,162 
Expected return on assets(20,767)(18,814)(17,152)— — — 
Amortization of prior service cost246 294 279 — — — 
Amortization of net loss9,248 10,243 8,392 1,002 733 273 
Settlement loss12,285 — — — — — 
Cost of pension plans which are not significant and have not adopted ASC 715368 168 110 N/AN/AN/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 BenefitsPostretirement Medical Benefits
 2021202020212020
Net gain (loss) arising during the period$42,039 $(8,872)$2,391 $(3,572)
Amortization of net (gain) loss9,248 10,243 1,002 733 
Prior service credit (cost) arising during the period1,458 529 — — 
Settlement (gain) loss12,285 — — — 
Amortization of prior service (credit) cost246 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 BenefitsPostretirement Medical Benefits
 2021202020212020
Prior service cost $1,293 $(439)$— $— 
Net loss(70,995)(134,469)(7,498)(10,891)
Net before income taxes(69,702)(134,908)(7,498)(10,891)
Income taxes15,443 29,274 1,650 2,396 
Net$(54,259)$(105,634)$(5,848)$(8,495)
Assumptions used to determine the Company’s benefit obligations are shown below:
 Pension BenefitsPostretirement Medical Benefits
Weighted average assumptions2021202020212020
U.S. Plans
Discount rate3.0 %2.6 %2.9 %2.6 %
Rate of compensation increase2.7 %2.7 %N/AN/A
Non-U.S. Plans
Discount rate0.4 %0.4 %N/AN/A
Rate of compensation increase1.3 %1.3 %N/AN/A

Assumptions used to determine the Company’s net periodic benefit cost are shown below:
 Pension BenefitsPostretirement Medical Benefits
Weighted average assumptions            202120202019202120202019
U.S. Plans
Discount rate2.6 %3.5 %4.5 %2.6 %3.4 %4.5 %
Rate of compensation increase2.7 %2.8 %2.8 %N/AN/AN/A
Expected return on assets6.3 %6.8 %7.0 %N/AN/AN/A
Non-U.S. Plans
Discount rate0.4 %0.4 %1.3 %N/AN/AN/A
Rate of compensation increase1.3 %1.3 %1.4 %N/AN/AN/A
Expected return on assets1.0 %1.5 %2.0 %N/AN/AN/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 
202315,097 1,775 
202416,801 1,755 
202516,182 1,734 
202618,073 1,713 
Years 2027-2031102,198 8,362