XML 30 R19.htm IDEA: XBRL DOCUMENT v3.25.2
Retirement Plans and Other Post-Employment Benefits
 12 Months Ended
Jun. 29, 2025
Retirement Benefits [Abstract]  
Retirement Plans and Other Post-Employment Benefits

NOTE 7. RETIREMENT PLANS AND OTHER POST-EMPLOYMENT BENEFITS

Supplemental Executive Retirement Plan

The Company has a Supplemental Executive Retirement Plan (“SERP”), which is a nonqualified plan that provides certain executives with a supplemental benefit upon retirement. The plan provides an annual 8% contribution based on a participant's base salary and cash bonus. The projected benefit obligation under the SERP was $1.6 million at June 29, 2025 and $2.6 million at June 30, 2024. The Company holds assets in a Rabbi Trust related to this retirement obligation. The Rabbi Trust assets do not qualify as plan assets. The assets had a value of $1.6 million at June 29, 2025, $531,000 of which were included in Other current assets due to planned retirements and $1.1 million were included in Other noncurrent assets in the accompanying consolidated balance sheets at June 29, 2025. The assets had a value of $1.6 million at June 30, 2024 and were included in Other noncurrent assets in the accompanying consolidated balance sheets.

Postretirement Health and Postretirement Life Plans

The Company also sponsors a postretirement health care plan for eligible U.S. retirees hired prior to June 1, 2001. The expected cost of retiree health care benefits is recognized during the years employees render service. The postretirement health care plan is unfunded. The projected benefit obligation for this plan was $0.3 million at June 29, 2025 and June 30, 2024. Additionally, the Company sponsors a postretirement life insurance plan for U.S. salaried employees who retired prior to October 1, 2001 and U.S. hourly employees who were hired prior to June 27, 2005 and retired prior to January 1, 2010. The postretirement life plan is unfunded. The projected benefit obligation for this plan was $0.8 million at June 29, 2025 and June 30, 2024.

The current and long-term portions of the funded status of the SERP and postretirement plans are included in Accrued payroll and benefits and post-employment benefits, respectively, in the accompanying consolidated balance sheets.

Mexico Post-employment Benefits

The Company is obligated to pay seniority premiums and legal indemnities at the time of separation of an employee in our Mexico operations (collectively, "Mexico post-employment benefits"), in accordance with Mexican Federal Labor Laws. The benefit formula is based on an employee's seniority, age and salary. The following tables summarize the Mexico post-employment benefits net periodic benefit cost (credit), funded status and actuarial assumptions (in thousands):

 

 

Years Ended

 

 

 

June 29, 2025

 

 

June 30, 2024

 

Components of net periodic benefit cost:

 

 

 

 

 

 

Service cost

 

$

1,012

 

 

$

1,027

 

Interest cost

 

 

849

 

 

 

910

 

Return on plan assets

 

 

(118

)

 

 

(113

)

Plan settlements

 

 

(50

)

 

 

—

 

Actuarial (gain) loss

 

 

16

 

 

 

(159

)

Net periodic benefit cost

 

$

1,709

 

 

$

1,665

 

 

Weighted-average assumptions:

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligations:

 

 

 

 

 

 

Discount rate

 

 

9.0

%

 

 

8.0

%

Expected return on plan assets

 

 

9.5

%

 

 

9.0

%

Rate of compensation increases

 

 

5.0

%

 

 

5.0

%

 

 

 

 

 

 

 

Net periodic benefit cost:

 

 

 

 

 

 

Discount rate

 

 

8.0

%

 

 

8.5

%

Expected return on plan assets

 

 

9.0

%

 

 

9.0

%

Rate of compensation increases

 

 

5.0

%

 

 

5.0

%

 

 

 

 

 

 

 

Benefit obligation at beginning of year

 

$

12,296

 

 

$

11,568

 

Service cost

 

 

1,012

 

 

 

1,027

 

Interest cost

 

 

849

 

 

 

910

 

Benefits paid

 

 

(918

)

 

 

(303

)

Plan settlements

 

 

(655

)

 

 

—

 

Actuarial (gain) loss

 

 

16

 

 

 

(159

)

Currency translation adjustment

 

 

(602

)

 

 

(747

)

Benefit obligation at end of year

 

$

11,998

 

 

$

12,296

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

$

1,158

 

 

$

1,128

 

Actual return

 

 

118

 

 

 

113

 

Employer contribution

 

 

918

 

 

 

303

 

Benefits paid

 

 

(918

)

 

 

(303

)

Currency translation adjustment

 

 

(23

)

 

 

(83

)

Fair value of plan assets at end of year

 

$

1,253

 

 

$

1,158

 

Funded status – accrued benefit obligations

 

$

(10,745

)

 

$

(11,138

)

Amounts recognized in consolidated balance sheets:

 

 

 

 

 

 

Accrued payroll and benefits (current liabilities)

 

$

300

 

 

$

11,138

 

Post-employment benefits (noncurrent liabilities)

 

 

10,445

 

 

 

-

 

Net amount recognized

 

$

10,745

 

 

$

11,138

 

 

 

The accumulated benefit obligation for our Mexico post-employment benefits was $6.7 million at June 29, 2025 and $6.9 million at June 30, 2024.

 

We expect to contribute $956,000 to our Mexico post-employment benefit plan assets in fiscal 2026. The following benefit payments, which reflect expected years of future service, as appropriate, are expected to be paid during the fiscal years noted below (in thousands):

 

 

 

Mexico Post-employment Benefits

 

2026

 

$

956

 

2027

 

$

700

 

2028

 

$

1,123

 

2029

 

$

1,273

 

2030

 

$

1,524

 

2031-2035

 

$

11,761

 

Other Plans

The Company maintains a 401(k) plan for substantially all U.S. employees. Under plan provisions, the Company matches 100% of participant contributions to the plan, up to 5% of the employee's eligible base pay. Contributions to the 401(k) Plan were $2.0 million in fiscal 2025 compared with $1.9 million in fiscal 2024.