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Employee Benefit Plans | 12 Months Ended
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Jun. 28, 2024
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 June 28, 2024, the accumulated benefit obligation of the Plan equals the fair value of the Plan's assets. The Plan's funded status at June 28, 2024 and June 30, 2023 was a net liability of $5,005 and $4,151, respectively, which is recorded in other non-current liabilities on the Consolidated Balance Sheets. The Company recognized net periodic benefit costs of $471 and $440 associated with the Plan and a net (loss) gain of $(1,383) and $142 in AOCI during the fiscal years ended June 28, 2024 and June 30, 2023, respectively. Total employer contributions to the Plan were $988 during the year ended June 28, 2024, and the Company's total expected employer contributions to the Plan during fiscal 2025 are $927. 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
2025 |  | $ | 788 |
2026 |  | 935 |
2027 |  | 969 |
2028 |  | 1,312 |
2029 |  | 1,463 |
Thereafter (next 5 years) |  | 6,314 |
Total |  | $ | 11,781 |
The following table outlines the components of net periodic benefit cost of the Plan for the fiscal years ended June 28, 2024 and June 30, 2023:
| Fiscal Years Ended
| June 28, 2024 |  | June 30, 2023
Service cost | $ | 965 |  |  | $ | 1,068 |
Interest cost | 481 |  |  | 463 |
Expected return on assets | (400) |  |  | (379) |
Amortization of prior service cost | (203) |  |  | (203) |
Amortization net of loss | (18) |  |  | — |
Settlement loss recognized | (354) |  |  | (509) |
Net periodic benefit cost | $ | 471 |  |  | $ | 440 |
The following table reflects the related actuarial assumptions used to determine net periodic benefit cost of the Plan for the fiscal years ended June 28, 2024 and June 30, 2023:
| Fiscal Years Ended
| June 28, 2024 |  | June 30, 2023
Discount rate | 1.30 | % |  | 1.95 | %
Expected rate of return on Plan assets | 1.30 | % |  | 1.95 | %
Expected inflation | 1.20 | % |  | 1.00 | %
Rate of compensation increases | 2.50 | % |  | 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
| June 28, 2024 |  | June 30, 2023
Projected benefit obligation, beginning | $ | 24,710 |  |  | $ | 25,509 |
Service cost | 965 |  |  | 1,068 |
Interest cost | 481 |  |  | 463 |
Employee contributions | 1,235 |  |  | 1,439 |
Actuarial (loss) gain | 629 |  |  | (516) |
Benefits paid | (881) |  |  | (246) |
Settlements | (5,239) |  |  | (4,770) |
Plan amendment | 20 |  |  | — |
Foreign exchange (gain) loss | (42) |  |  | 1,763 |
Projected benefit obligation at end of year | $ | 21,878 |  |  | $ | 24,710 |
The following table presents the change in Plan assets for the periods presented:
| Fiscal Years Ended
| June 28, 2024 |  | June 30, 2023
Fair value of Plan assets, beginning | $ | 20,559 |  |  | $ | 20,849 |
Actual return on Plan assets | 246 |  |  | 700 |
Company contributions | 988 |  |  | 1,158 |
Employee contributions | 1,235 |  |  | 1,439 |
Benefits paid | (881) |  |  | (246) |
Settlements | (5,239) |  |  | (4,770) |
Foreign exchange (loss) gain | (35) |  |  | 1,429 |
Fair value of Plan assets at end of year | $ | 16,873 |  |  | $ | 20,559 |
The following table presents the Company's reconciliation of funded status for the period presented:
| As of
| June 28, 2024 |  | June 30, 2023
Projected benefit obligation at end of year | $ | 21,878 |  |  | $ | 24,710 |
Fair value of plan assets at end of year | 16,873 |  |  | 20,559 |
Funded status | $ | (5,005) |  |  | $ | (4,151) |
The fair value of Plan assets was $16,873 at June 28, 2024. 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 June 28, 2024 or June 30, 2023. The Plan’s assets are administered by an independent pension fund foundation (the “foundation”). As of June 28, 2024, 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. Effective in the first quarter of fiscal 2023, the Company increased the rate of its matching contributions from 3% to 6% of participants' eligible annual compensation and changed the form of these contributions from cash to Company stock. The Company may also make optional contributions to the plan for any plan year at its discretion. The Company had $2,901 of capitalized stock-based 401(k) matching compensation expense on the Consolidated Balance Sheet at June 28, 2024. Stock-based 401(k) matching compensation cost is measured based on the value of the matching amount and is recognized as expense as incurred. Expense recognized by the Company for matching contributions related to the 401(k) plan was $15,853, $15,665, and $7,603 during the fiscal years ended June 28, 2024, June 30, 2023, and July 1, 2022, respectively. Deferred Compensation Plan The Company implemented a nonqualified deferred compensation plan as of January 1, 2024, under which eligible employees may defer up to 50% of their base salaries and up to 100% of their annual incentive bonuses. The Company may also make employer contributions to participant accounts in its sole discretion, and for calendar year 2024, will match participants’ deferrals under the plan of up to 6% of their eligible annual compensation in the form of deferred stock units (or at the Company’s election, a cash deferral credited to participants’ account balances). The Company’s matching obligation for 2024 is subject to the satisfaction of a financial performance condition for the 2024 calendar year. Participant deferrals under the plan are held in a Rabbi trust and are subject to the claims of the Company’s creditors. Assets held by the rabbi trust are classified as trading securities and are recorded at fair value, with changes in value recorded as adjustments to other income. All deferrals or employer contributions under the plan, and all earnings thereon, are fully vested as and when made or credited to plan participants. As of June 28, 2024, the Company held assets under the rabbi trust of $88, was subject to liabilities for amounts payable under the plan to participants (including accrued employer matching contributions not yet credited to plan participants) of $88. Assets related to this plan are included in Other assets, and liabilities related to this plan are included in Other long-term liabilities in the Consolidated Balance Sheets. During the fiscal year ended June 28, 2024, the Company recognized an immaterial value of compensation expense as a result of changes in the value of notional investments selected by plan participants for the investment of their plan account balances, with the same amount being recorded as other income attributable to changes in the market value of the assets held by the Rabbi trust. The nonqualified deferred compensation plan was not in place as of June 30, 2023.

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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 -Topic 710 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//710/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 712 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//712/tableOfContent Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 715 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//715/tableOfContent Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//718/tableOfContent + Details
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