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Retirement Benefits
 12 Months Ended
Dec. 30, 2022
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 $11.0 million in 2022, $10.0 million in 2021 and $8.7 million in 2020.

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. The Company restructured one of its U.S. qualified defined benefit plans in 2021. Under the restructuring, the plan transferred $63 million of liabilities and assets associated with certain plan participants to an insurance company via the purchase of a group annuity contract, and the Company recognized a $12 million settlement loss, included in 2021 other expense, net. This charge represents the acceleration of deferred charges previously accrued in accumulated other comprehensive income. 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. The benefits offered to the plans’ participants were unchanged.

For U.S. plans, benefits are based on years of service and the highest 5 consecutive years’ earnings in the 10 years preceding retirement. Plans are funded annually in amounts consistent with minimum funding levels and maximum tax deduction limits, although the Company may make additional voluntary contributions from time to time to improve the funded status of its plans.

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 $2.3 million as of December 30, 2022 and $2.4 million as of December 31, 2021.

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):
Level20222021
Cash and cash equivalents1$351 $303 
Insurance contract332,163 30,926 
Investments categorized in fair value hierarchy32,514 31,229 
Equity
U.S. Large CapN/A74,838 110,569 
U.S. Small/Mid CapN/A5,191 11,338 
InternationalN/A37,862 56,128 
Total equity117,891 178,035 
Fixed incomeN/A93,262 130,774 
Real estate and otherN/A37,508 7,862 
Investments measured at net asset value248,661 316,671 
Total$281,175 $347,900 


The following table is a reconciliation of pension assets measured at fair value using level 3 inputs (in thousands):
20222021
Balance, beginning of year$30,926 $31,877 
Purchases2,431 2,430 
Redemptions(669)(2,556)
Unrealized losses(525)(825)
Balance, end of year$32,163 $30,926 
The following provides a reconciliation of the changes in the plans’ benefit obligations and fair value of assets over the periods ending December 30, 2022, and December 31, 2021, and a statement of the funded status as of the same dates (in thousands):
 Pension BenefitsPostretirement Medical Benefits
 2022202120222021
Change in benefit obligation
Obligation, beginning of year$418,051 $510,652 $32,122 $34,458 
Service cost8,242 9,355 516 670 
Interest cost10,996 11,409 839 832 
Actuarial (gain) loss (110,467)(31,093)(9,044)(2,391)
Benefit payments(9,122)(13,360)(1,503)(1,447)
Plan amendments(267)(1,458)— — 
Settlements— (64,886)— — 
Exchange rate changes(1,626)(2,568)— — 
Obligation, end of year$315,807 $418,051 $22,930 $32,122 
Change in plan assets
Fair value, beginning of year$347,900 $373,565 $— $— 
Actual return on assets(80,078)30,984 — — 
Employer contributions22,756 22,493 1,503 1,447 
Benefit payments(9,122)(13,360)(1,503)(1,447)
Settlements— (64,886)— — 
Exchange rate changes(281)(896)— — 
Fair value, end of year$281,175 $347,900 $— $— 
Unfunded status$(34,632)$(70,151)$(22,930)$(32,122)
Amounts recognized in consolidated balance sheets
Non-current assets$5,398 $— $— $— 
Current liabilities1,860 1,769 1,763 1,768 
Non-current liabilities38,170 68,382 21,167 30,354 
Net$34,632 $70,151 $22,930 $32,122 

Changes in discount rates used to value pension obligations were the main drivers of actuarial gains in 2022 and 2021. In 2022 and 2021, 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 $297 million for 2022 and $388 million for 2021. Information for plans with an accumulated benefit obligation in excess of plan assets follows (in thousands):
20222021
Projected benefit obligation$72,190 $91,678 
Accumulated benefit obligation69,395 88,927 
Fair value of plan assets32,164 30,926 
The components of net periodic benefit cost for the plans for 2022, 2021 and 2020 were as follows (in thousands):
 Pension BenefitsPostretirement Medical Benefits
 202220212020202220212020
Service cost-benefits earned during the period$8,242 $9,355 $9,361 $516 $670 $609 
Interest cost on projected benefit obligation10,996 11,409 13,313 839 832 1,016 
Expected return on assets(19,754)(20,767)(18,814)— — — 
Amortization of prior service cost84 246 294 — — — 
Amortization of net loss4,701 9,248 10,243 345 1,002 733 
Settlement loss— 12,285 — — — — 
Cost of pension plans which are not significant and have not adopted ASC 715284 368 168 N/AN/AN/A
Net periodic benefit cost$4,553 $22,144 $14,565 $1,700 $2,504 $2,358 

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 $1 million in 2022, $12 million in 2021 and $5 million in 2020.

Amounts recognized in other comprehensive income (loss) in 2022 and 2021 were as follows (in thousands):
 Pension BenefitsPostretirement Medical Benefits
 2022202120222021
Net gain (loss) arising during the period$11,189 $42,039 $9,044 $2,391 
Amortization of net (gain) loss4,701 9,248 345 1,002 
Prior service credit (cost) arising during the period267 1,458 — — 
Settlement (gain) loss— 12,285 — — 
Amortization of prior service (credit) cost84 246 — — 
Total$16,241 $65,276 $9,389 $3,393 

Amounts included in accumulated other comprehensive income (loss) as of December 30, 2022 and December 31, 2021, that had not yet been recognized as components of net periodic benefit cost, were as follows (in thousands):
 Pension BenefitsPostretirement Medical Benefits
 2022202120222021
Prior service cost $1,668 $1,293 $— $— 
Net gain (loss)(55,084)(70,995)1,891 (7,498)
Net gain (loss) before income taxes(53,416)(69,702)1,891 (7,498)
Income taxes12,207 15,443 (416)1,650 
Net$(41,209)$(54,259)$1,475 $(5,848)
Assumptions used to determine the Company’s benefit obligations are shown below:
 Pension BenefitsPostretirement Medical Benefits
Weighted average assumptions2022202120222021
U.S. Plans
Discount rate5.6 %3.0 %5.6 %2.9 %
Rate of compensation increase2.7 %2.7 %N/AN/A
Non-U.S. Plans
Discount rate2.4 %0.4 %N/AN/A
Rate of compensation increase1.8 %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            202220212020202220212020
U.S. Plans
Discount rate3.0 %2.6 %3.5 %2.9 %2.6 %3.4 %
Rate of compensation increase2.7 %2.7 %2.8 %N/AN/AN/A
Expected return on assets6.3 %6.3 %6.8 %N/AN/AN/A
Non-U.S. Plans
Discount rate0.4 %0.4 %0.4 %N/AN/AN/A
Rate of compensation increase1.3 %1.3 %1.3 %N/AN/AN/A
Expected return on assets1.0 %1.0 %1.5 %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 8.5 percent for 2023, 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 $1.9 million to its unfunded pension plans and $1.8 million to the postretirement medical plan in 2023. The Company will not be required to make contributions to the funded pension plan under minimum funding requirements for 2023. Estimated future benefit payments are as follows (in thousands):
Pension
Benefits		Postretirement
Medical Benefits
2023$15,583 $1,763 
202417,035 1,748 
202516,406 1,735 
202618,585 1,715 
202720,116 1,699 
Years 2028-2032107,755 8,136