(9.) BENEFIT PLANS

Savings Plan

The Company sponsors a defined contribution 401(k) plan (the “Plan”), for its U.S. based employees. The Plan provides for the deferral of employee compensation under Internal Revenue Code §401(k) and a Company match.

The Company matches $0.50 per dollar of participant deferral, up to 6% of the compensation of each participant. Contributions from employees, as well at those matched by the Company, vest immediately. Net costs related to defined contribution plans were $6.8 million in 2018, $6.0 million in 2017 and $4.6 million in 2016.

Defined Benefit Plans

The Company is required to provide its employees located in Switzerland and Mexico certain statutorily mandated defined benefits. Under these plans, benefits accrue to employees based upon years of service, position, age and compensation. The defined benefit pension plan provided to the Company’s employees located in Switzerland is a funded contributory plan, while the plans that provide benefits to the Company’s employees located in Mexico are unfunded and noncontributory. The assets of the Switzerland plan are held at an AA- rated insurance carrier who bears the pension risk and longevity risk, and will be used to cover the pension liability for the remaining retirees of the Swiss plan, as well as the remaining employees at that location. The liability and corresponding expense related to these benefit plans is based on actuarial computations of current and future benefits for employees.

(9.) BENEFIT PLANS (Continued)

The Company’s fiscal year end dates are the measurement dates for its defined benefit plans. Information relating to the funding position of the Company’s defined benefit plans for fiscal years 2018 and 2017 were as follows (in thousands):



	2018			2017
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	2,608		$	2,285
Service cost	214			200
Interest cost	48			42
Plan participants’ contribution	84			75
Actuarial gain	(150		)	(90		)
Benefits (paid) transferred in, net	42			(11		)
Settlements	(619		)	—
Foreign currency translation	(24		)	107
Projected benefit obligation at end of year	2,203			2,608
Change in fair value of plan assets:
Fair value of plan assets at beginning of year	1,358			1,172
Employer contributions	83			56
Plan participants’ contributions	84			75
Actual loss on plan assets	(11		)	—
Benefits transferred in, net	62			—
Settlements	(619		)	—
Foreign currency translation	(11		)	55
Fair value of plan assets at end of year	946			1,358
Projected benefit obligation in excess of plan assets at end of year	$	1,257		$	1,250
Defined benefit liability classified as other current liabilities	$	54		$	32
Defined benefit liability classified as long-term liabilities	$	1,203		$	1,218
Accumulated benefit obligation at end of year	$	1,809		$	2,189

Amounts recognized in Accumulated Other Comprehensive Income (Loss) for fiscal years 2018 and 2017 are as follows (in thousands):



	2018			2017
Net (gain) loss occurring during the year	$	(130	)	$	74
Amortization of losses	(101		)	(45		)
Prior service cost	1			1
Amortization of prior service cost	(2		)	(2		)
Pre-tax adjustment (gain) loss	(232		)	28
Tax benefit	(70		)	(5		)
Net (gain) loss	$	(302	)	$	23

The amortization of amounts in Accumulated Other Comprehensive Income expected to be recognized as components of net periodic benefit expense during fiscal year 2019 are as follows (in thousands):



Amortization of net prior service cost	$	1
Amortization of net loss	5

(9.) BENEFIT PLANS (Continued)

Net pension cost for fiscal years 2018 and 2017 is comprised of the following (in thousands):



	2018			2017			2016
Service cost	$	214		$	200		$	173
Interest cost	48			42			36
Settlements loss	69			—			—
Expected return on assets	(17		)	(19		)	(18		)
Recognized net actuarial loss	33			44			38
Net pension cost	$	347		$	267		$	229

The weighted-average rates used in the actuarial valuations to determine the net pension cost for fiscal years 2018, 2017 and 2016 were as follows:



	2018	2017	2016
Discount rate	3.1%	2.9%	2.3%
Salary growth	3.2%	3.1%	2.4%
Expected rate of return on assets	1.3%	1.5%	2.0%

The weighted-average rates used in the actuarial valuations to determine the projected benefit obligation for fiscal years 2018, 2017 and 2016 were as follows:



	2018	2017	2016
Discount rate	6.0%	3.1%	2.9%
Salary growth	4.1%	3.2%	3.1%
Expected rate of return on assets	1.4%	1.3%	1.5%

The following table provides information by level for the defined benefit plan assets that are measured at fair value as of December 28, 2018 and December 29, 2017 (in thousands).



	Fair Value		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 28, 2018
Insurance contract	$	946	$	—	$	946	$	—
December 29, 2017
Insurance contract	$	1,358	$	—	$	1,358	$	—

The fair value of Level 2 plan assets are obtained from quoted market prices in inactive markets or valuation models with observable market data inputs to estimate fair value. These observable market data inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers and reference data. Refer to Note 1 “Summary of Significant Accounting Policies” for discussion of the fair value measurement terms of Levels 1, 2, and 3.

Estimated benefit payments over for the next ten years as of December 28, 2018 are as follows (in thousands):



	2019		2020	2021	2022	2023	2024-2028
Estimated benefit payments	$	104	121	124	134	145	964