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EMPLOYEE BENEFIT PLANS
 3 Months Ended
Mar. 30, 2024
Retirement Benefits [Abstract]  
EMPLOYEE BENEFIT PLANS

NOTE 8. EMPLOYEE BENEFIT PLANS

Net periodic pension benefits for the North America and UK pension plans and other postretirement benefit plans (the “Plans”) are recorded at the Corporate level. The service cost for the Plans are reflected in Selling, general and administrative expenses, and the other components of net periodic pension benefits are reflected in Other income, net, in the Condensed Consolidated Statements of Operations.

PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS – NORTH AMERICA

The components of net periodic pension benefit for the Company’s North America pension plans are as follows:

 

 

First Quarter

 

(In millions)

 

2024

 

 

2023

 

Interest cost

 

$

7

 

 

$

8

 

Expected return on plan assets

 

 

(7

)

 

 

(9

)

Amortization of gain

 

 

—

 

 

 

(1

)

Net periodic pension benefit

 

$

—

 

 

$

(2

)

The North America qualified pension plan is in a net asset position and included in Other assets in the Condensed Consolidated Balance Sheets at March 30, 2024 and December 30, 2023. The North America nonqualified pension plan is in a net liability position and included in Pension and postretirement obligations, net in the Condensed Consolidated Balance Sheets at March 30, 2024 and December 30, 2023. In the first quarter of 2024, $1 million of cash contributions were made to the North America pension plans. The Company expects to make additional cash contributions of approximately $1 million to the North America pension plans during the remainder of 2024.

PENSION PLAN – UNITED KINGDOM

The components of net periodic pension benefit for the Company’s pension plan in the United Kingdom (“UK”) are as follows:

 

 

First Quarter

 

(In millions)

 

2024

 

 

2023

 

Interest cost

 

$

2

 

 

$

2

 

Expected return on plan assets

 

 

(1

)

 

 

(2

)

Net periodic pension benefit

 

$

1

 

 

$

—

 

 

The Company has a frozen defined benefit pension plan in the United Kingdom. In July 2023, in accordance with applicable UK pension regulations, Trustees of the UK pension plan entered into an agreement with an insurer for the bulk annuity purchase of the plan, covering 100% of the plan’s members. This agreement, or buy-in, resulted in an exchange of plan assets for an annuity that covers the plan’s future projected benefit obligations. The Company anticipates the buyout of the plan and transfer of future benefit obligations of plan participants to be completed with existing plan funds in 2025. Accordingly, the Company does not expect the transaction to result in material cash inflows or outflows. At the completion of the buy-out, the Company will remove the assets and liabilities of the UK pension plan from its Consolidated Balance Sheet and a final non-cash plan settlement loss will be included in net periodic pension cost.

 

The UK pension plan is in a net asset position and included in Other assets in the Condensed Consolidated Balance Sheets at March 30, 2024. There was no net funded amount as of December 30, 2023. In the first quarter of 2024, cash contributions of $1 million were made to the UK pension plan. The Company anticipates making further cash contributions of $1 million to the UK pension plan during the remainder of 2024.