XML 35 R17.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Note 8 - Benefit Plans | 12 Months Ended
--- | ---
Dec. 30, 2017
Notes to Financial Statements |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 8 . Benefit Plans The Company has Company-sponsored defined benefit pension plans covering employees in the U.K., Germany, the Philippines, China, Japan, Mexico, Italy and France. The amount of the retirement benefits provided under the plans is based on years of service and final average pay. PolySwitch Acquisition During 2016, as a result of the PolySwitch acquisition, past service l iabilities were assumed by the Company in mainland China, France, Germany, Japan, Mexico, and Taiwan (China), together with a small amount of plan assets in Taiwan (China). Littelfuse Inc. Retirement Plan Termination The company received approval from the IRS on April 14, 2015 on its Application for Determination for Terminating Plan to terminate the U.S. defined benefit pension plan, the Littelfuse Inc. Retirement Plan, effective July 30, 2014. All plan liabilities were settled (either via lump sum payout or purchase of a group annuity contract) in the third quarter of 2015. A cash contribution of $9.1 million was made to the U.S. defined benefit plan ’s trust in the third quarter of 2015 to fully fund the plan on a buyout basis, and the eventual settlement of the plan’s liabilities triggered a settlement charge of $30.2 million in the third quarter of 2015. In the fourth quarter of 2015 there was an adjustment to the price of the annuity contract which resulted in a refund of premium to the company of $0.3 million. This refund of premium, effectively a re-measurement gain, was recognized in the fourth quarter of 2015 as a dollar-for-dollar adjustment to the $30.2 million earnings charge recognized in the third quarter of 2015, resulting in a final settlement loss of $29.9 million for the fiscal year ended January 2, 2016. During 2016, there were two further adjustments to the price of the annuity contract. Their combined effect resulted in a further refund of premium to the company of $0.3 million. This refund of premium was considered additional actual return on the assets during 2016, followed by a negative employer contribution of that same amount in the asset reconciliation table below. Benefit plan related information is as follows for the years 2017 and 2016:
(in thousands ) |  | 2017 |  |  | 2016 |
Change in benefit obligation: |  |  |  |  |  |  |  |
Benefit obligation at beginning of year |  | $ | 55,606 |  |  | $ | 50,282 |
Service cost |  |  | 2,037 |  |  |  | 1,509 |
Interest cost |  |  | 1,887 |  |  |  | 1,662 |
Net actuarial loss (gain) |  |  | (433 | ) |  |  | 10,190 |
Benefits paid from the trust |  |  | (1,405 | ) |  |  | (2,329 | )
Benefits paid directly by the Company |  |  | (1,098 | ) |  |  | 250 |
Curtailments and settlements |  |  | (31 | ) |  |  | (427 | )
Acquisitions |  |  | — |  |  |  | 2,023 |
Effect of exchange rate movements |  |  | 5,477 |  |  |  | (7,554 | )
Other |  |  | 5,228 |  |  |  | — |
Benefit obligation at end of year |  | $ | 67,268 |  |  | $ | 55,606 |
Change in plan assets at fair value: |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of year |  | $ | 42,208 |  |  | $ | 44,629 |
Actual return on plan assets |  |  | 2,962 |  |  |  | 6,929 |
Employer contributions |  |  | 264 |  |  |  | (126 | )
Benefits paid |  |  | (1,405 | ) |  |  | (2,329 | )
Acquisitions |  |  | — |  |  |  | 24 |
Effect of exchange rate movements |  |  | 4,094 |  |  |  | (6,919 | )
Fair value of plan assets at end of year |  |  | 48,123 |  |  |  | 42,208 |
Net amount recognized/(unfunded status) |  | $ | (19,145 | ) |  | $ | (13,398 | )
Amounts recognized in the Consolidated Balance Sheet s as of December 30, 2017 and December 31, 2016 consist of the following:
(in thousands ) |  | 2017 |  |  | 2016 |
Amounts recognized in the Consolidated Balance Sheet s consist of: |  |  |  |  |  |  |  |
Noncurrent assets |  | $ | 78 |  |  | $ | — |
Current benefit liability |  |  | (481 | ) |  |  | — |
Noncurrent benefit liability |  |  | (18,742 | ) |  |  | (13,398 | )
Net liability recognized |  | $ | (19,145 | ) |  | $ | (13,398 | )
Amounts recognized in accumulated other comprehensive income (loss), pre-tax as of December 30, 2017 and December 31, 2016 consist of:
(in thousands ) |  | 2017 |  |  | 2016 |
Net actuarial loss |  | $ | 12,261 |  |  | $ | 13,107 |
Prior service (cost) |  |  | — |  |  |  | — |
Net amount recognized , pre-tax |  | $ | 12,261 |  |  | $ | 13,107 |
The estimated net actuarial loss (gain) which will be amortized from accumulated other comprehensive income (loss) into benefit cost in 2018 is approximately $0.3 million. The components of pension exp ense for the years 2017, 2016, and 2015 are as follows:
|  |  |  |  |  |  |  |  |  | 2015 |
(in thousands ) |  | 2017 |  |  | 2016 |  |  | U.S. |  |  | Foreign |  |  | Total |
Components of net periodic benefit cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Service cost |  | $ | 2,037 |  |  | $ | 1,509 |  |  | $ | 750 |  |  | $ | 824 |  |  | $ | 1,574 |
Interest cost |  |  | 1,887 |  |  |  | 1,662 |  |  |  | 3,093 |  |  |  | 1,735 |  |  |  | 4,828 |
Expected return on plan assets |  |  | (1,990 | ) |  |  | (1,935 | ) |  |  | (2,749 | ) |  |  | (2,346 | ) |  |  | (5,095 | )
Amortization of losses |  |  | 337 |  |  |  | 306 |  |  |  | 870 |  |  |  | 221 |  |  |  | 1,091 |
Net periodic benefit cost |  |  | 2,271 |  |  |  | 1,542 |  |  |  | 1,964 |  |  |  | 434 |  |  |  | 2,398 |
Curtailment/Settlement loss (gain) |  |  | (25 | ) |  |  | (36 | ) |  |  | 29,928 |  |  |  | — |  |  |  | 29,928 |
Total expense (income) for the year |  | $ | 2,246 |  |  | $ | 1,506 |  |  | $ | 31,892 |  |  | $ | 434 |  |  | $ | 32,326 |
Weighted average assumptions used to determine net periodic benefit cost for the years 2017, 2016, and 2015 are as follows:
|  |  |  |  |  |  |  |  |  | 2015 |
|  | 2017 |  |  | 2016 |  |  | U.S. |  |  | Foreign |
Discount rate |  |  | 3.0 | % |  |  | 3.7 | % |  |  | 3.9 | % |  |  | 3.7 | %
Expected return on plan assets |  |  | 4.5 | % |  |  | 4.9 | % |  |  | 6.8 | % |  |  | 5.1 | %
Compensation increase rate |  |  | 4.5 | % |  |  | 5.3 | % |  |  | — |  |  |  | 5.3 | %
Measurement dates |  | 12/31/16 |  |  | 1/2/16 |  |  | 12/27/14 |  |  | 12/27/14 |
The accumulated benefit obligation for the foreign plans was $60.5 million and $51.3 million at December 30, 2017 and December 31, 2016, respectively. The following table provides a summary of under-funded or unfunded pension benefit plans with projected benefit obligations in excess of plan assets as of December 30, 2017 and December 31, 2016:
(in thousands ) |  | 2017 |  |  | 2016 |
Projected benefit obligation |  | $ | 28,515 |  |  | $ | 48,985 |
Fair value of plan assets |  |  | 9,292 |  |  |  | 42,179 |
The following table provides a summary of under-funded or unfunded pension benefit plans with accumulated benefit obligations in excess of plan assets as of December 30, 2017 and December 31, 2016:
(in thousands ) |  | 2017 |  |  | 2016 |
Accumulated benefit obligation |  | $ | 18,990 |  |  | $ | 51,306 |
Fair value of plan assets |  |  | 6,003 |  |  |  | 38,912 |
Weighted average assumptions used to determine benefit obligations as of December 30, 2017, December 31, 2016 and January 2, 2016 are as follows:
|  | 2017 |  |  | 201 6 |  |  | 201 5 |
Discount rate |  |  | 3.1 | % |  |  | 2.6 | % |  |  | 3.8 | %
Compensation increase rate |  |  | 5.0 | % |  |  | 4.5 | % |  |  | 6.2 | %
Measurement dates |  | 12/ 30/17 |  |  | 12/31/16 |  |  | 1/ 2/16 |
Expected benefit payments to be paid to participants for the fiscal year ending are as follows:
(in thousands ) |  | Expected Benefit Payments |
201 8 |  | $ | 2,467 |
201 9 |  |  | 2,474 |
20 20 |  |  | 2,473 |
202 1 |  |  | 2,802 |
202 2 |  |  | 2,776 |
2023-2027 |  |  | 16,777 |
The Company expects to make approximately $1.4 million of contributions to the plans in 2018. Defined Benefit Plan Assets Based upon analysis of the target asset allocation and historical retu rns by type of investment, the Company has assumed that the expected long-term rate of return will be 4.5% on plan assets. Assets are invested to maximize long-term return taking into consideration timing of settlement of the retirement liabilities and liquidity needs for benefits payments. Pension plan assets were invested as follows, and were not materially different from the target asset allocation:
|  | Asset Allocation |
|  | 2017 |  |  | 201 6 |
Equity securities |  |  | 35 | % |  |  | 32 | %
Debt securities |  |  | 64 | % |  |  | 65 | %
Cash and equivalents |  |  | 1 | % |  |  | 3 | %
|  |  | 100 | % |  |  | 100 | %
The Company segregated its plan assets by the following major categories and level for determining their fair value as of December 30, 2017 and December 31, 2016. All plan assets that are valued using the net asset value per share (“NAV”) practical expedient have not been included within the fair value hierarchy but are separately disclosed. Cash and cash equivalents – Carrying value approximates fair value. As such these assets were classified as Level 1. The Company also invests in certain short-term investments which are valued using the amortized cost method and at NAV. Equity – The values of individual equity securities were based on quoted prices in active markets. As such, these assets are classified as Level 1. Additionally, the Company invests in certain equity funds that are valued at calculated NAV. Fixed income – Fixed income securities are typically priced based on a last trade basis and are exchange-traded. Accordingly, the Company classified fixed income securities as Level 1. The Company also invests in certain fixed income funds which are valued at NAV. For any Level 2 plan assets, management reviews significant investments on a periodic basis including investigation of unusual fluctuations in price or returns and obtaining an understanding of the pricing methodology to assess the reliability of third -party pricing estimates. The valuation methodologies described above may generate a fair value calculation that may not be indicative of net realizable value or future fair values. While the Company believes the valuation methodologies used are appropriate, the use of different methodologies or assumptions in calculating fair value could result in different amounts. The Company invests in various assets in which valuation is determined by NAV. The Company believes that the NAV is representative of fair value at the reporting date, as there are no significant restrictions on redemption of these investments or other reasons to indicate that the investment would be redeemed at an amount different than the NAV. Th e following table presents the Company’s pension plan assets measured at fair value by classification within the fair value hierarchy as of December 30, 2017:
|  | Fair Value Measurements Usin g |  |  |  |  |  |  |  |  |
(in thousands ) |  | Level 1 |  |  | Level 2 |  |  | L evel 3 |  |  | NAV |  |  | Total |
Equities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Global Equity 50:50 Index Fund |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 7,898 |  |  | $ | 7,898 |
Global Equity 50:50 GBP Hedged Fund |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 8,134 |  |  |  | 8,134 |
Philippine Stock |  |  | 1,031 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,031 |
Fix ed income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment Grade Corporate Bond Funds |  |  | 6,003 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 6,003 |
Over 15y Gilts Index Fund |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,684 |  |  |  | 3,684 |
Active Corp Bond – Over 10 Yr Fund |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 6,835 |  |  |  | 6,835 |
Over 5y Index-Linked Gilts Fund |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 12,049 |  |  |  | 12,049 |
Philippine Long Gov ernment Securities |  |  | 1,362 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,362 |
Philippine Long Corporate Bonds |  |  | 723 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 723 |
Cash and equivalents |  |  | 173 |  |  |  | — |  |  |  | — |  |  |  | 231 |  |  |  | 404 |
Total pension plan assets |  | $ | 9,292 |  |  | $ | — |  |  | $ | — |  |  | $ | 38,831 |  |  | $ | 48,123 |
Th e following table presents the Company’s pension plan assets measured at fair value by classification within the fair value hierarchy as of December 31, 2016:
|  | Fair Value Measurements Using |  |  |  |  |  |  |  |  |
(in thousands ) |  | Level 1 |  |  | Level 2 |  |  | L evel 3 |  |  | NAV |  |  | Total |
Equities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Global Equity 50:50 Index Fund |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 6,321 |  |  | $ | 6,321 |
Global Equity 50:50 GBP Hedged Fund |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 6,406 |  |  |  | 6,406 |
Philippine Stock |  |  | 906 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 906 |
Fixed income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment Grade Corporate Bond Funds |  |  | 5,372 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 5,372 |
Over 15y Gilts Index Fund |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,265 |  |  |  | 3,265 |
Active Corp Bond – Over 10 Yr Fund |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 5,902 |  |  |  | 5,902 |
Over 5y Index-Linked Gilts Fund |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 10,724 |  |  |  | 10,724 |
Philippine Long Gov ernment Securities |  |  | 1,133 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,133 |
Philippine Long Corporate Bonds |  |  | 751 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 751 |
Cash and equivalents |  |  | 476 |  |  |  | — |  |  |  | — |  |  |  | 952 |  |  |  | 1,428 |
Total pension plan assets |  | $ | 8,638 |  |  | $ | — |  |  | $ | — |  |  | $ | 33,570 |  |  | $ | 42,208 |
Defined Contribution Plan The Company also maintains a 401 (k) savings plan covering substantially all U.S. employees. The Company matches 100% of the employee’s annual contributions for the first 4% of the employee’s eligible compensation. The Company may provide an additional discretionary match to participants and made discretionary matches of 2% of the employee’s eligible compensation for each of the years ended December 30, 2017, December 31, 2016 and January 2, 2016. Employees are immediately vested in their contributions plus actual earnings thereon, as well as the Company contributions. Company matching contributions amounted to $3.5 million, $3.2 million, and $2.8 million in 2017, 2016, and 2015, respectively. Non-qualified Supplemental Retirement and Savings Plan The C ompany has a non-qualified Supplemental Retirement and Savings Plan which provides additional retirement benefits for certain management employees and named executive officers by allowing participants to defer a portion of their annual compensation. The Company maintains accounts for participants through which participants make investment elections. The investments are subject to the claims of the Company’s creditors and the Company is responsible for the payment of all benefits under the plan from its general assets. As of December 30, 2017, there was $8.0 million of marketable securities related to the plan included in Other assets and $8.0 million of accrued compensation included in Other long-term liabilities . The marketable securities are classified as Level 1 under the fair value hierarchy as they are maintained in mutual funds with readily determinable fair value. The Company made matching contributions to the plan of $0.3 million in 2017.

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

X
- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration