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Employee Benefit Plans | 12 Months Ended
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Jul. 01, 2022
Retirement Benefits [Abstract] |
Employee Benefit Plans | Employee Benefit Plans Pension Plan The Company maintains a pension plan (the “Plan”) for its Swiss employees, which is administered by an independent pension fund. The Plan is mandated by Swiss law and meets the criteria for a defined benefit plan under ASC 715, Compensation—Retirement Benefits (“ASC 715”), since participants of the Plan are entitled to a defined rate of return on contributions made. The independent pension fund is a multi-employer plan with unrestricted joint liability for all participating companies for which the Plan’s overfunding or underfunding is allocated to each participating company based on an allocation key determined by the Plan. The Company recognizes a net asset or liability for the Plan equal to the difference between the projected benefit obligation of the Plan and the fair value of the Plan’s assets as required by ASC 715. The funded status may vary from year to year due to changes in the fair value of the Plan’s assets and variations on the underlying assumptions of the projected benefit obligation of the Plan. In fiscal 2021, the independent pension fund changed the conversion rate for accumulated retirement savings leading to a Plan amendment. The Company’s results contain the effects of this change in conversion rates by the independent pension fund as prior service costs. These prior service costs are amortized from AOCI to net periodic benefit costs over approximately nine years. At July 1, 2022, the accumulated benefit obligation of the Plan equals the fair value of the Plan's assets. The Plan's funded status at July 1, 2022 and July 2, 2021 was a net liability of $4,660 and $9,807, respectively, which is recorded in Other non-current liabilities on the Consolidated Balance Sheets. The Company recorded a net gain of $4,739 and $3,285 in AOCI during the fiscal years ended July 1, 2022 and July 2, 2021, respectively. Total employer contributions to the Plan were $1,056 during the year ended July 1, 2022, and the Company's total expected employer contributions to the Plan during fiscal 2023 are $1,093. The following table reflects the total pension benefits expected to be paid from the Plan, which is funded from contributions by participants and the Company.
Fiscal Year |  | Total
2023 |  | $ | 1,454 |
2024 |  | 1,539 |
2025 |  | 1,535 |
2026 |  | 1,506 |
2027 |  | 1,324 |
Thereafter (next 5 years) |  | 8,105 |
Total |  | $ | 15,463 |
The following table outlines the components of net periodic benefit cost of the Plan for the fiscal years ended July 1, 2022 and July 2, 2021:
| Fiscal Years Ended
| July 1, 2022 |  | July 2, 2021
Service cost | $ | 1,405 |  |  | $ | 1,708 |
Interest cost | 83 |  |  | 92 |
Expected return on assets | (272) |  |  | (277) |
Amortization of prior service cost | (190) |  |  | (64) |
Amortization net of loss | 5 |  |  | 185 |
Settlement loss recognized | — |  |  | 318 |
Net periodic benefit cost | $ | 1,031 |  |  | $ | 1,962 |
The following table reflects the related actuarial assumptions used to determine net periodic benefit cost of the Plan for the fiscal years ended July 1, 2022 and July 2, 2021:
| Fiscal Years Ended
| July 1, 2022 |  | July 2, 2021
Discount rate | 1.70 | % |  | 0.30 | %
Expected rate of return on Plan assets | 1.70 | % |  | 1.50 | %
Expected inflation | 1.00 | % |  | 1.00 | %
Rate of compensation increases | 1.50 | % |  | 1.50 | %
The calculation of the projected benefit obligation (“PBO”) utilized BVG 2020 Generational data for assumptions related to the mortality rates, disability rates, turnover rates and early retirement ages. The PBO represents the present value of Plan benefits earned through the end of the year, with an allowance for future salary and pension increases as well as turnover rates. The following table presents the change in projected benefit obligation for the periods presented:
| Fiscal Years Ended
| July 1, 2022 |  | July 2, 2021
Projected benefit obligation, beginning | $ | 28,614 |  |  | $ | 29,955 |
Service cost | 1,405 |  |  | 1,708 |
Interest cost | 83 |  |  | 92 |
Employee contributions | 2,606 |  |  | 2,145 |
Actuarial (gain) loss | (4,720) |  |  | (1,345) |
Benefits paid | (1,444) |  |  | (256) |
Plan amendment | — |  |  | (1,247) |
Settlements | — |  |  | (3,129) |
Foreign exchange (loss) gain | (1,035) |  |  | 691 |
Projected benefit obligation at end of year | $ | 25,509 |  |  | $ | 28,614 |
The following table presents the change in Plan assets for the periods presented:
| Fiscal Years Ended
| July 1, 2022 |  | July 2, 2021
Fair value of Plan assets, beginning | $ | 18,807 |  |  | $ | 18,078 |
Actual return on Plan assets | 514 |  |  | 474 |
Company contributions | 1,056 |  |  | 1,080 |
Employee contributions | 2,606 |  |  | 2,145 |
Benefits paid | (1,444) |  |  | (256) |
Settlements | — |  |  | (3,129) |
Foreign exchange (loss) gain | (690) |  |  | 415 |
Fair value of Plan assets at end of year | $ | 20,849 |  |  | $ | 18,807 |
The following table presents the Company's reconciliation of funded status for the period presented:
| As of
| July 1, 2022 |  | July 2, 2021
Projected benefit obligation at end of year | $ | 25,509 |  |  | $ | 28,614 |
Fair value of plan assets at end of year | 20,849 |  |  | 18,807 |
Funded status | $ | (4,660) |  |  | $ | (9,807) |
The fair value of Plan assets were $20,849 at July 1, 2022. The Plan is denominated in a foreign currency, the Swiss Franc, which can have an impact on the fair value of Plan assets. The Plan was not subject to material fluctuations during the years ended July 1, 2022 or July 2, 2021. The Plan’s assets are administered by an independent pension fund foundation (the “foundation”). As of July 1, 2022, the foundation has invested the assets of the Plan in various investments vehicles, including cash, real estate, equity securities and bonds. The investments are measured at fair value using a mix of Level 1, Level 2 and Level 3 inputs. 401(k) Plan The Company maintains a qualified 401(k) plan (the “401(k) Plan”) for its U.S. employees. During fiscal years 2022, 2021 and 2020, the Company matched employee contributions up to 3% of eligible compensation. The Company may also make optional contributions to the plan for any plan year at its discretion. Expense recognized by the Company for matching contributions related to the 401(k) plan was $7,603, $7,876 and $5,954 during the fiscal years ended July 1, 2022, July 2, 2021 and July 3, 2020, respectively.

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- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 712 -URI http://asc.fasb.org/topic&trid=2197446 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 710 -URI http://asc.fasb.org/topic&trid=2127225 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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