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Retirement Benefits
 12 Months Ended
Dec. 27, 2024
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 $12 million in 2024, $12 million in 2023 and $10 million in 2022.

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.

In December of 2023, the Company entered into an agreement under which approximately $147 million of pension obligations of its U.S. funded defined benefit pension plan were transferred to an insurance company. The Company recognized a non-cash pension settlement loss of approximately $42 million as a result of the transaction.

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 52 percent equity securities, 32 percent fixed income securities and 16 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 million as of December 27, 2024 and December 29, 2023.

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):
LevelDecember 27, 2024December 29, 2023
Cash and cash equivalents1$115 $1,425 
Insurance contract332,466 36,151 
Investments categorized in fair value hierarchy32,581 37,576 
Equity
U.S. Large CapN/A64,645 40,726 
InternationalN/A16,444 17,554 
Total equity81,089 58,280 
Fixed incomeN/A64,331 49,595 
Real estate and otherN/A4,545 15,400 
Investments measured at net asset value149,965 123,275 
Total$182,546 $160,851 


The following table is a reconciliation of pension assets measured at fair value using level 3 inputs (in thousands):
20242023
Balance, beginning of year$36,151 $32,163 
Purchases2,331 2,593 
Redemptions(4,133)(2,833)
Unrealized (losses) gains (1,883)4,228 
Balance, end of year$32,466 $36,151 

The following provides a reconciliation of the changes in the plans’ benefit obligations and fair value of assets over the periods ending December 27, 2024 and December 29, 2023, and a statement of the funded status as of the same dates (in thousands):
 Pension BenefitsPostretirement Medical Benefits
 2024202320242023
Change in benefit obligation
Obligation, beginning of year$213,575 $315,807 $22,654 $22,930 
Service cost5,097 5,729 344 348 
Interest cost9,194 16,535 1,148 1,165 
Actuarial (gain) loss (19,973)32,763 (2,153)(237)
Benefit payments(3,117)(12,103)(1,658)(1,552)
Plan amendments(285)(250)— — 
Settlements(3,579)(149,212)— — 
Exchange rate changes(3,603)4,306 — — 
Obligation, end of year$197,309 $213,575 $20,335 $22,654 
Change in plan assets
Fair value, beginning of year$160,851 $281,175 $— $— 
Actual return on assets7,658 14,504 — — 
Employer contributions23,216 23,066 1,658 1,552 
Benefit payments(3,117)(12,103)(1,658)(1,552)
Settlements(3,579)(149,212)— — 
Exchange rate changes(2,483)3,421 — — 
Fair value, end of year$182,546 $160,851 $— $— 
Unfunded status$(14,763)$(52,724)$(20,335)$(22,654)
Amounts recognized in consolidated balance sheets
Non-current assets$37,888 $215 $— $— 
Current liabilities2,421 1,749 1,633 1,745 
Non-current liabilities50,230 51,190 18,702 20,909 
Net$14,763 $52,724 $20,335 $22,654 
Changes in discount rates used to value pension obligations were the main drivers of actuarial gains in 2024 and losses in 2023. In 2024 and 2023, 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 $180 million for 2024 and $186 million for 2023. Information for plans with an accumulated benefit obligation in excess of plan assets follows (in thousands):
20242023
Projected benefit obligation$85,117 $89,206 
Accumulated benefit obligation80,746 81,701 
Fair value of plan assets32,466 36,150 
The components of net periodic benefit cost for the plans for 2024, 2023 and 2022 were as follows (in thousands):
 Pension BenefitsPostretirement Medical Benefits
 202420232022202420232022
Service cost-benefits earned during the period$5,097 $5,729 $8,242 $344 $348 $516 
Interest cost on projected benefit obligation9,194 16,535 10,996 1,148 1,165 839 
Expected return on assets(10,147)(19,141)(19,754)— — — 
Amortization of prior service cost(281)36 84 — — — 
Amortization of net loss3,255 5,999 4,701 — (133)345 
Settlement loss346 42,169 — — — — 
Cost of pension plans which are not significant and have not adopted ASC 715171 368 284 N/AN/AN/A
Net periodic benefit cost$7,635 $51,695 $4,553 $1,492 $1,380 $1,700 

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 $3 million in 2024, $44 million in 2023 and $1 million in 2022.

Amounts recognized in other comprehensive income (loss) in 2024 and 2023 were as follows (in thousands):
 Pension BenefitsPostretirement Medical Benefits
 2024202320242023
Net (loss) gain arising during the period$17,506 $(37,132)$2,153 $237 
Amortization of net loss (gain)3,255 5,999 — (133)
Prior service credit (cost) arising during the period285 250 — — 
Settlement loss346 42,169 — — 
Amortization of prior service (credit) cost(281)36 — — 
Total$21,111 $11,322 $2,153 $104 

Amounts included in accumulated other comprehensive income (loss) as of December 27, 2024 and December 29, 2023, that had not yet been recognized as components of net periodic benefit cost, were as follows (in thousands):
 Pension BenefitsPostretirement Medical Benefits
 2024202320242023
Prior service cost $2,026 $2,163 $— $— 
Net gain (loss)(22,954)(44,195)4,148 1,995 
Net gain (loss) before income taxes(20,928)(42,032)4,148 1,995 
Income taxes4,549 9,464 (914)(439)
Net$(16,379)$(32,568)$3,234 $1,556 
Assumptions used to determine the Company’s benefit obligations are shown below:
 Pension BenefitsPostretirement Medical Benefits
Weighted average assumptions2024202320242023
U.S. Plans
Discount rate5.9 %5.3 %5.8 %5.3 %
Rate of compensation increase2.5 %2.7 %N/AN/A
Non-U.S. Plans
Discount rate1.4 %2.1 %N/AN/A
Rate of compensation increase2.0 %1.7 %N/AN/A

Assumptions used to determine the Company’s net periodic benefit cost are shown below:
 Pension BenefitsPostretirement Medical Benefits
Weighted average assumptions            202420232022202420232022
U.S. Plans
Discount rate5.3 %5.6 %3.0 %5.3 %5.6 %2.9 %
Rate of compensation increase2.7 %2.7 %2.7 %N/AN/AN/A
Expected return on assets7.6 %7.6 %6.3 %N/AN/AN/A
Non-U.S. Plans
Discount rate2.1 %0.4 %0.4 %N/AN/AN/A
Rate of compensation increase1.7 %1.3 %1.3 %N/AN/AN/A
Expected return on assets2.1 %1.6 %1.0 %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 8.5 percent for 2025, decreasing each year to a constant rate of 4.0 percent for 2050 and thereafter, subject to the plan’s annual increase limitation.

The Company expects to contribute $2 million to its unfunded pension plans and $2 million to the postretirement medical plan in 2025. The Company will not be required to make contributions to the funded pension plan under minimum funding requirements for 2025. Estimated future benefit payments are as follows (in thousands):
Pension
Benefits		Postretirement
Medical Benefits
2025$6,148 $1,633 
20268,297 1,574 
202710,028 1,580 
202810,093 1,561 
202911,463 1,543 
Years 2030-203465,071 7,484