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Long-term Employee Benefits | 12 Months Ended
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Dec. 29, 2024
Retirement Benefits [Abstract] |
Long-term Employee Benefits | Long-term Employee Benefits Defined Benefit Plans and Other Post-employment Benefits In connection with the Combinations, the Company assumed certain defined benefit plan obligations and acquired related plan assets for employees of non-U.S. subsidiaries. In addition to these defined benefit plans, the Company also assumed one non-U.S. post-employment benefit plan and a replacement retiree health care reimbursement plan for certain U.S employees. The U.S. plan is funded on a pay-as-you-go basis and is not accepting new participants. Obligation and Funded Status The measurement dates used to determine the defined benefit and other post-employment benefit obligations were December 29, 2024 and December 31, 2023. The following tables set forth the changes to the PBO and plan assets:
| Fiscal Year Ended
(In millions) | December 29, 2024 |  | December 31, 2023
Defined Benefit Plans |  |  |
Change in benefit obligation: |  |  |
PBO at beginning of year | $ | 36.9 |  |  | $ | 33.9 |
Service cost | 2.1 |  |  | 2.0 |
Interest cost | 1.1 |  |  | 1.0 |
Contributions by plan participants | 0.1 |  |  | — |
Benefits paid | (1.3) |  |  | (0.2) |
Actuarial (gain) loss | (1.4) |  |  | 2.8 |
Settlements | (1.8) |  |  | (2.4) |
Foreign currency exchange rate changes | (2.7) |  |  | (0.2) |
PBO at end of year | $ | 33.0 |  |  | $ | 36.9 |
Change in plan assets: |  |  |
Fair value of plan assets at beginning of year | $ | 20.4 |  |  | $ | 20.6 |
Actual return on plan assets | 1.0 |  |  | 1.1 |
Employer contributions | 2.6 |  |  | 2.1 |
Benefits paid | (1.0) |  |  | (0.2) |
Settlements | (1.9) |  |  | (2.4) |
Foreign currency exchange rate changes | (1.8) |  |  | (0.8) |
Fair value of plan assets at end of year | $ | 19.3 |  |  | $ | 20.4 |
Funded status at end of year | $ | (13.7) |  |  | $ | (16.5) |
Amounts recognized on the Consolidated Balance Sheets: |  |  |
Other assets | $ | 1.3 |  |  | $ | 0.7 |
Other current liabilities | (0.4) |  |  | (0.4) |
Other liabilities | (14.6) |  |  | (16.8) |
Net amount recognized | $ | (13.7) |  |  | $ | (16.5) |
| Fiscal Year Ended
(In millions) | December 29, 2024 |  | December 31, 2023
Other Post-employment Benefits |  |  |
Change in benefit obligation: |  |  |
PBO at beginning of year | $ | 18.5 |  |  | $ | 18.6 |
Service cost | 0.4 |  |  | 0.4 |
Interest cost | 0.8 |  |  | 0.9 |
Benefits paid | (1.3) |  |  | (1.1) |
Actuarial gain | (1.0) |  |  | (0.3) |
PBO at end of year | $ | 17.4 |  |  | $ | 18.5 |
Amounts recognized on the Consolidated Balance Sheets: |  |  |
Other current liabilities | $ | (3.8) |  |  | $ | (3.9) |
Other liabilities | (13.6) |  |  | (14.6) |
Net amount recognized | $ | (17.4) |  |  | $ | (18.5) |
PBO is the actuarial present value of benefits attributable to employee service rendered to date and reflects the effects of estimated future pay increases. The ABO is the actuarial present value of benefits attributable to employee service to date, but does not include the effects of estimated future pay increases. The following table reflects the ABO for all defined benefit plans as of December 29, 2024 and December 31, 2023. Further, the table reflects the aggregate PBO, ABO and fair value of plan assets for defined benefit plans with PBO in excess of plan assets and for defined benefit plans with ABO in excess of plan assets.
(In millions) | December 29, 2024 |  | December 31, 2023
ABO | $ | 26.3 |  |  | $ | 29.3 |
Plans with PBO in excess of plan assets |  |  |
PBO | $ | 20.7 |  |  | $ | 22.2 |
Fair value of plan assets | 6.1 |  |  | 5.7
Plans with ABO in excess of plan assets |  |  |
PBO | $ | 18.6 |  |  | $ | 20.4 |
ABO | 16.2 |  |  | 17.6
Fair value of plan assets | 4.2 |  |  | 4.0
The pre-tax amounts that are not yet reflected in the net periodic benefit cost and are included in AOCI as of December 29, 2024 and December 31, 2023 include the following:
| Fiscal Year Ended
(In millions) | December 29, 2024 |  | December 31, 2023
Defined Benefit Plans |  |  |
Accumulated net actuarial losses | $ | (0.5) |  |  | $ | (2.3) |
Accumulated prior service credit | $ | 0.1 |  |  | $ | 0.1 |
Other Post-employment Benefits |  |  |
Accumulated net actuarial gains | $ | 1.9 |  |  | $ | 0.9 |
These accumulated net actuarial gains and losses for defined benefit plans and other post-employment benefits primarily relate to differences between the actual net periodic expense and the expected net periodic expense from differences in significant assumptions, including primarily return on plan assets and discount rates used in these estimates. Components of Net Periodic Benefit Cost Net periodic benefit cost for the Company’s defined benefit plans was $2.8 million and $2.5 million for the fiscal years ended December 29, 2024 and December 31, 2023, respectively, and was primarily related to service cost. Changes in plan assets and benefit obligations recognized in other comprehensive (loss) income were $(1.8) million and $2.1 million for the fiscal years ended December 29, 2024 and December 31, 2023, respectively. Net periodic benefit cost for the Company’s other post-employment benefit plans was $1.2 million and $1.3 million for the fiscal years ended December 29, 2024 and December 31, 2023, respectively, and was primarily related to interest cost. Changes in benefit obligations recognized in other comprehensive (loss) income were $(1.0) million for the fiscal year ended December 29, 2024 and were not material for fiscal year ended December 31, 2023. The components of net periodic benefit cost other than the service cost component are recorded in Other expense, net in the Consolidated Statements of (Loss) Income. Assumptions and Sensitivities The following assumptions were used to measure the fair value of the benefit obligations and associated plan assets for the periods below:
| December 29, 2024 |  | December 31, 2023
Defined Benefit Plans |  |  |
Weighted average discount rate | 3.3 | % |  | 3.3 | %
Weighted average rate of compensation increases | 3.3 | % |  | 3.2 | %
Other Post-employment Benefits |  |  |
Weighted average discount rate | 5.0 | % |  | 4.8 | %
The critical assumptions used in determining the net periodic benefit cost for fiscal years ended 2024 and 2023 are as follows:
| December 29, 2024 |  | December 31, 2023
Defined Benefit Plans |  |  |
Weighted average discount rate | 3.3 | % |  | 3.1 | %
Weighted average expected rate of compensation increases | 3.2 | % |  | 3.0 | %
Weighted average expected return on plan assets | 2.9 | % |  | 2.5 | %
Other Post-employment Benefits |  |  |
Weighted average discount rate | 4.8 | % |  | 5.5 | %
The discount rates used reflect the expected future cash flow based on plan provisions, participant data and the currencies in which the expected future cash flows will occur. For the majority of defined benefit obligations, the Company utilizes prevailing long-term high quality corporate bond indices applicable to the respective country at the measurement date. In countries where established corporate bond markets do not exist, the Company utilizes other index movement and duration analysis to determine discount rates. The long-term rate of return on plan assets assumptions reflect economic assumptions applicable to each country and assumptions related to the preliminary assessments regarding the type of investments to be held by the respective plans. The discount rate is determined as of each measurement date, based on a review of yield rates associated with long-term, high-quality corporate bonds. The calculation separately discounts benefit payments using the spot rates from a long-term, high-quality corporate bond yield curve. The long-term rate of return on plan assets assumption represents the expected average rate of earnings on the funds invested to provide for the benefits included in the benefit obligations and is determined based on a number of factors, including historical market index returns, the anticipated long-term allocation of the plans, historical plan return data, plan expenses and the potential to outperform market index returns. A significant factor in estimating future per capita cost of covered healthcare benefits for retirees is the healthcare cost trend rate assumption. The health care cost trend rate assumptions for other post-retirement benefit plans are as follows:
| December 29, 2024
Health care cost trend rate assumed for next year - Pre-65 | 5.80 | %
Health care cost trend rate assumed for next year - Post-65 | 5.63 | %
Rate to which the cost trend rate is assumed to decline | 4.00 | %
Year that the trend rate reaches the ultimate trend rate | 2047
Anticipated Contributions to Defined Benefit Plans For funded plans, the Company’s policy is to fund amounts for defined benefit plans sufficient to meet minimum requirements set forth in applicable benefit and local tax laws. Based on the same assumptions used to measure the defined benefit obligations at December 29, 2024, the Company expects to contribute $2.0 million to defined benefit plans in fiscal year 2025. Estimated Future Benefit Payments The following table reflects the total benefit payments expected to be made for defined benefit plans and other long-term post-employment benefits:
(In millions) | Defined Benefit Plans |  | Other Post-employment Benefit Plans
2025 | $ | 1.7 |  |  | $ | 3.8 |
2026 | 1.3 |  |  | 3.1 |
2027 | 2.2 |  |  | 2.6 |
2028 | 1.8 |  |  | 1.9 |
2029 | 2.0 |  |  | 1.5 |
2030-2034 | 13.3 |  |  | 5.6 |
Plan Assets The tables below present the fair value of the defined benefit plans by level within the fair value hierarchy, as described in “—Note 1. Basis of Presentation and Summary of Significant Accounting Policies” at December 29, 2024 and December 31, 2023.
| Fair Value Measurements at December 29, 2024
(In millions) | Total |  | Level 1 |  | Level 2 |  | Level 3
U.S. equity securities | $ | 2.2 |  |  | $ | 2.2 |  |  | $ | — |  |  | $ | — |
Japan equity securities | 3.0 |  |  | 3.0 |  |  | — |  |  | — |
Other international equity securities | 0.9 |  |  | 0.9 |  |  | — |  |  | — |
U.S. government bonds | 0.5 |  |  | 0.5 |  |  | — |  |  | — |
Japan government bonds | 1.2 |  |  | 1.2 |  |  | — |  |  | — |
Other international government bonds | 1.8 |  |  | 1.8 |  |  | — |  |  | — |
Cash and cash equivalents | 3.6 |  |  | 3.6 |  |  | — |  |  | — |
Insurance contracts | 6.1 |  |  | — |  |  | — |  |  | 6.1 |
Total | $ | 19.3 |  |  | $ | 13.2 |  |  | $ | — |  |  | $ | 6.1 |
| Fair Value Measurements at December 31, 2023
(In millions) | Total |  | Level 1 |  | Level 2 |  | Level 3
U.S. equity securities | $ | 2.1 |  |  | $ | 2.1 |  |  | $ | — |  |  | $ | — |
Japan equity securities | 3.6 |  |  | 3.6 |  |  | — |  |  | — |
Other international equity securities | 1.5 |  |  | 1.5 |  |  | — |  |  | — |
U.S. government bonds | 0.4 |  |  | 0.4 |  |  | — |  |  | — |
Japan government bonds | 0.5 |  |  | 0.5 |  |  | — |  |  | — |
Other international government bonds | 1.5 |  |  | 1.5 |  |  | — |  |  | — |
Cash and cash equivalents | 5.1 |  |  | 5.1 |  |  | — |  |  | — |
Insurance contracts | 5.7 |  |  | — |  |  | — |  |  | 5.7 |
Total | $ | 20.4 |  |  | $ | 14.7 |  |  | $ | — |  |  | $ | 5.7 |
The Company has funded defined benefit plans in Japan, Korea and Philippines. The Japanese and Philippines plan asset consists primarily of Japan equity and government bond securities, U.S. equity and government bond securities, other international equity and debt securities and cash and cash equivalents. The plan assets are invested in assets with quoted prices in active markets and therefore are classified as Level 1 assets. The Company’s investment strategy is to maintain a target rate of return that is higher than that required to maintain sound defined benefit plan management into the future. In order to achieve its investment targets, the Company has established an asset composition ratio which was formulated from a long-term perspective, taking into account the maturity of the defined benefit plan and other factors. The Company considers expected returns and risks of returns, as well as the correlation between the returns of each investment asset, the diversification of its investments, and other factors related to risk management in order to maximize returns in accordance with its targeted asset mix to achieve its investment targets. The target allocation rates of the Japanese plan are 46% for debt securities, 51% for equity securities and 3% for other assets. The table below presents a roll-forward of activity for the Level 3 assets for fiscal years ended 2024 and 2023:
(In millions) | Level 3 Assets
Balance at January 1, 2023 | $ | 6.1 |
Transfers out | (1.0) |
Net purchases and settlements | 0.6
Balance at December 31, 2023 | $ | 5.7 |
Net purchases and settlements | 0.4 |
Balance at December 29, 2024 | $ | 6.1 |
Defined Contribution Plans The Company offers defined contribution plans to eligible employees primarily in the U.S., whereby employees contribute a portion of their compensation. Company matching and other Company contributions are also provided to the plans. Once Company matching contributions have been paid, the Company has no further payment obligations. The Company’s contributions for its employees totaled approximately $23.6 million, $18.6 million and $15.1 million for fiscal years ended 2024, 2023 and 2022, respectively, which are recognized as expense as incurred in the Consolidated Statements of (Loss) Income.

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