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Benefit Plans | 12 Months Ended
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Dec. 30, 2023
Retirement Benefits [Abstract] |
Benefit Plans | Benefit Plans Pension and Other Postretirement Plans The Company sponsors several qualified and nonqualified pension plans and other postretirement benefit plans for certain employees. The information disclosed below does not include the pension plan in South Korea, as it it immaterial to the Company’s Consolidated Financial Statements. The following tables provide a reconciliation of the changes in the most significant plans’ benefit obligations and the fair value of the plans’ assets for 2023 and 2022, and a statement of the plans’ aggregate funded status:
|  | Pension Benefits |  | Other Benefits
(In thousands) |  | 2023 |  | 2022 |  | 2023 |  | 2022
Change in benefit obligation: |  |  |  |  |  |  |  |
Obligation at beginning of year |  | $ | 50,761 |  |  | $ | 84,283 |  |  | $ | 9,240 |  |  | $ | 11,825 |
Service cost |  | — |  |  | — |  |  | 183 |  |  | 291 |
Interest cost |  | 2,454 |  |  | 1,450 |  |  | 439 |  |  | 346 |
Actuarial loss (gain) |  | 1,508 |  |  | (24,154) |  |  | (105) |  |  | (2,604) |
Plan amendments/transference |  | — |  |  | — |  |  | 101 |  |  | — |
Benefit payments |  | (3,582) |  |  | (2,512) |  |  | (686) |  |  | (547) |
Foreign currency translation adjustment |  | 3,294 |  |  | (8,306) |  |  | 385 |  |  | (71) |
Obligation at end of year |  | 54,435 |  |  | 50,761 |  |  | 9,557 |  |  | 9,240 |
Change in fair value of plan assets: |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of year |  | 62,298 |  |  | 79,478 |  |  | — |  |  | — |
Actual return on plan assets |  | 410 |  |  | (6,371) |  |  | — |  |  | — |
Employer contributions |  | — |  |  | — |  |  | 686 |  |  | 547 |
Benefit payments |  | (3,582) |  |  | (2,512) |  |  | (686) |  |  | (547) |
Foreign currency translation adjustment |  | 3,745 |  |  | (8,297) |  |  | — |  |  | — |
Fair value of plan assets at end of year |  | 62,871 |  |  | 62,298 |  |  | — |  |  | — |
Funded (underfunded) status at end of year |  | $ | 8,436 |  |  | $ | 11,537 |  |  | $ | (9,557) |  |  | $ | (9,240) |
The following represents amounts recognized in AOCI (before the effect of income taxes):
|  | Pension Benefits |  | Other Benefits
(In thousands) |  | 2023 |  | 2022 |  | 2023 |  | 2022
Unrecognized net actuarial loss (gain) |  | $ | 7,728 |  |  | $ | 2,870 |  |  | $ | (3,863) |  |  | $ | (4,149) |
Unrecognized prior service credit |  | — |  |  | — |  |  | (5) |  |  | (19) |
As of December 30, 2023, $0.2 million of the actuarial net gain and the remainder of the prior service credit will, through amortization, be recognized as components of net periodic benefit cost in 2024. The aggregate status of all overfunded plans is recognized as an asset and the aggregate status of all underfunded plans is recognized as a liability in the Consolidated Balance Sheets. The amounts recognized as a liability are classified as current or long-term on a plan-by-plan basis. Liabilities are classified as current to the extent the actuarial present value of benefits payable within the next 12 months exceeds the fair value of plan assets, with all remaining amounts classified as long-term. As of December 30, 2023 and December 31, 2022, the total funded status of the plans recognized in the Consolidated Balance Sheets was as follows:
|  | Pension Benefits |  | Other Benefits
(In thousands) |  | 2023 |  | 2022 |  | 2023 |  | 2022
Long-term asset |  | $ | 8,436 |  |  | $ | 11,537 |  |  | $ | — |  |  | $ | — |
Current liability |  | $ | — |  |  | $ | — |  |  | $ | (1,041) |  |  | $ | (1,068) |
Long-term liability |  | — |  |  | — |  |  | (8,516) |  |  | (8,172) |
Total funded (underfunded) status |  | $ | 8,436 |  |  | $ | 11,537 |  |  | $ | (9,557) |  |  | $ | (9,240) |
The components of net periodic benefit cost (income) are as follows:
(In thousands) |  | 2023 |  | 2022 |  | 2021
Pension benefits: |  |  |  |  |  |
Interest cost |  | $ | 2,454 |  |  | $ | 1,450 |  |  | $ | 1,272 |
Expected return on plan assets |  | (3,260) |  |  | (3,568) |  |  | (3,671) |
Amortization of net loss |  | — |  |  | 897 |  |  | 1,536 |
Settlement charge |  | — |  |  | — |  |  | — |
Net periodic benefit income |  | $ | (806) |  |  | $ | (1,221) |  |  | $ | (863) |
Other benefits: |  |  |  |  |  |
Service cost |  | $ | 183 |  |  | $ | 291 |  |  | $ | 258 |
Interest cost |  | 439 |  |  | 346 |  |  | 281 |
Amortization of prior service credit |  | (2) |  |  | (198) |  |  | (470) |
Amortization of net gain |  | (449) |  |  | (220) |  |  | (103) |
Curtailment gain |  | — |  |  | (1,756) |  |  | — |
Net periodic benefit cost (income) |  | $ | 171 |  |  | $ | (1,537) |  |  | $ | (34) |
During 2022, the Company recognized a curtailment gain of $1.8 million related to one of its postretirement benefit plans. The components of net periodic benefit cost (income) other than the service cost component are included in other income, net in the Consolidated Statements of Income. The weighted average assumptions used in the measurement of the Company’s benefit obligations are as follows:
|  | Pension Benefits |  | Other Benefits
|  | 2023 |  | 2022 |  | 2023 |  | 2022
Discount rate |  | 4.40 | % |  | 4.80 | % |  | 5.96 | % |  | 6.08 | %
Expected long-term return on plan assets |  | 4.30 | % |  | 5.51 | % |  | N/A |  | N/A
Rate of compensation increases |  | N/A |  | N/A |  | 5.00 | % |  | 5.00 | %
Rate of inflation |  | 3.20 | % |  | 3.30 | % |  | N/A |  | N/A
The weighted average assumptions used in the measurement of the Company’s net periodic benefit cost are as follows:
|  | Pension Benefits |  | Other Benefits
|  | 2023 |  | 2022 |  | 2021 |  | 2023 |  | 2022 |  | 2021
Discount rate |  | 4.80 | % |  | 1.90 | % |  | 1.40 | % |  | 6.08 | % |  | 3.73 | % |  | 2.92 | %
Expected long-term return on plan assets |  | 5.51 | % |  | 4.96 | % |  | 4.69 | % |  | N/A |  | N/A |  | N/A
Rate of compensation increases |  | N/A |  | N/A |  | N/A |  | 5.00 | % |  | 5.00 | % |  | 5.00 | %
Rate of inflation |  | 3.30 | % |  | 3.70 | % |  | 3.20 | % |  | N/A |  | N/A |  | N/A
The Company’s Mexican postretirement plans use the rate of compensation increase in the benefit formulas. Past service in the U.K. pension plan will be adjusted for the effects of inflation. All other pension and postretirement plans use benefit formulas based on length of service. The annual assumed rate of increase in the per capita cost of covered benefits (i.e., health care cost trend rate) is assumed to range from 4.9 to 8.2 percent for 2024, gradually decrease to 4.1 percent through 2040, and remain at that level thereafter. The health care cost trend rate assumption does not have a significant effect on the amounts reported. Pension Assets The weighted average asset allocation of the Company’s pension fund assets are as follows:
|  | Pension Plan Assets
Asset category |  | 2023 |  | 2022
Pooled liability investments |  | 99 | % |  | — | %
Equity securities (includes equity mutual funds) |  | — |  |  | 67 |
Multi-asset securities |  | — |  |  | 22 |
Cash and equivalents (includes money market funds) |  | 1 |  |  | 1 |
Alternative investments |  | — |  |  | 10 |
Total |  | 100 | % |  | 100 | %
The pension plan obligations are long-term and, accordingly, the plan assets are invested for the long-term. Plan assets are monitored periodically. Based upon results, investment managers and/or asset classes are redeployed when considered necessary. None of the plans’ assets are expected to be returned to the Company during the next fiscal year. The assets of the plans do not include investments in securities issued by the Company. The estimated rates of return on plan assets are the expected future long-term rates of earnings on plan assets and are forward-looking assumptions that materially affect pension cost. Establishing the expected future rates of return on pension assets is a judgmental matter. The Company reviews the expected long-term rates of return on an annual basis and revises as appropriate. The expected long-term rate of return on plan assets was 4.30 percent for 2023 and 5.51 percent in 2022. The Company’s investments for its pension plans are reported at fair value. The following methods and assumptions were used to estimate the fair value of the Company’s plan asset investments: Cash and money market funds – Valued at cost, which approximates fair value. Pooled liability investments – These funds are primarily invested in U.K. government bonds and highly rated corporate bonds. The level 2 fair value is determined utilizing observable inputs of the underlying assets. Mutual funds – Valued at the net asset value of shares held by the plans, based upon quoted market prices. Limited partnerships – Limited partnerships comprise a diversified portfolio of real estate investments which are classified as Level 3 due to a lack of observable inputs existing at the measurement date. Accordingly, the estimated fair values may differ significantly from the values that would have been used had a ready market existed for these investments. Limited partnership investments are recorded at estimated fair value based on financial information received from the investment manager. The investment manager determines fair value based upon, among other things, property valuations received from valuation specialists at regular intervals. The following table sets forth by level, within the fair value hierarchy, the assets of the plans at fair value:
|  | Fair Value Measurements at December 30, 2023
(In thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Cash and money market funds |  | $ | 502 |  |  | $ | — |  |  | $ | — |  |  | $ | 502 |
Pooled liability investments |  | — |  |  | 62,369 |  |  | — |  |  | 62,369 |
Total |  | $ | 502 |  |  | $ | 62,369 |  |  | $ | — |  |  | $ | 62,871 |
|  | Fair Value Measurements at December 31, 2022
(In thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Cash and money market funds |  | $ | 829 |  |  | $ | — |  |  | $ | — |  |  | $ | 829 |
Mutual funds (1) |  | — |  |  | 55,441 |  |  | — |  |  | 55,441 |
Limited partnerships |  | — |  |  | — |  |  | 6,028 |  |  | 6,028 |
Total |  | $ | 829 |  |  | $ | 55,441 |  |  | $ | 6,028 |  |  | $ | 62,298 |
(1)Approximately 78 percent of mutual funds are actively managed funds and approximately 22 percent of mutual funds are index funds. Additionally, 24 percent of the mutual funds’ assets are invested in non-U.S. multi-asset securities and 76 percent in non-U.S. equities. The table below reflects the changes in the assets of the plan measured at fair value on a recurring basis using significant unobservable inputs (level 3 of fair value hierarchy) during the year ended December 30, 2023:
(In thousands) |  | Limited Partnerships
Balance, December 31, 2022 |  | $ | 6,028 |
Liquidation |  | (6,028) |
Balance, December 30, 2023 |  | $ | — |
Contributions and Benefit Payments The Company does not expect to contribute to the U.K. pension plan, other than to reimburse expenses, and expects to contribute $1.0 million to its other postretirement benefit plans in 2024. The Company expects future benefits to be paid from the plans as follows:
(In thousands) |  | Pension Benefits |  | Other Benefits
2024 |  | $ | 3,418 |  |  | $ | 1,042 |
2025 |  | 3,540 |  |  | 1,045 |
2026 |  | 3,667 |  |  | 1,080 |
2027 |  | 3,798 |  |  | 877 |
2028 |  | 3,934 |  |  | 922 |
2028-2032 |  | 21,886 |  |  | 4,146 |
Total |  | $ | 40,243 |  |  | $ | 9,112 |
401(k) Plans The Company sponsors voluntary employee savings plans that qualify under Section 401(k) of the Internal Revenue Code of 1986. Compensation expense for the Company’s matching contribution to the 401(k) plans was $4.9 million in 2023, $4.9 million in 2022, and $4.5 million in 2021. The Company match is a cash contribution. Participants direct the investment of their account balances by allocating among a range of asset classes including mutual funds (equity, fixed income, and balanced funds) and money market funds. The plans do not allow direct investment in securities issued by the Company. U. K. Pension Plan During 2023, a United Kingdom High Court issued a ruling involving another U.K. company’s defined benefit pension scheme regarding the impact of not obtaining certain documentation under section 37 of the Pension Scheme Act of 2003 could have on plan amendments in relation to the contracting out of state benefit pension. The ruling is subject to appeal and the Company will continue to evaluate this matter. The Company continues to account for it U.K. pension scheme in accordance with all relevant plan agreements and amendments, as they represent the terms that are mutually understood by the employer and plan participants.

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