POST EMPLOYMENT PLANS

Defined Contribution Plans

We have a qualified profit-sharing and investment plan under Section 401(k) of the IRS, which covers substantially all U.S. employees. Our contributions to the plan include an annual nondiscretionary contribution of 3% of an employee's eligible compensation and a discretionary contribution at the option of the Board of Directors. Additionally, we match a portion of employees' contributions. Our contributions to the plan were $24.6 million, $25.6 million, and $23.0 million in fiscal years 2015, 2014, and 2013, respectively.

We also have a defined contribution plan that covers Ireland employees. We contribute up to 18% of each participating employee’s annual eligible salary on a monthly basis. In connection with matching contributions under the Irish defined contribution plan, we recorded $0.7 million and $0.5 million of expense in fiscal year 2015 and from December 18, 2013 to June 28, 2014, respectively.

For the defined contribution plans associated with the Omega acquisition, we pay contributions to pension insurance plans. From March 30, 2015 to June 27, 2015, we recorded $0.6 million in connection with matching contributions to the defined contribution plans.

Pension and Postretirement Healthcare Benefit Plans

We assumed the liability of two defined benefit plans (staff and executive plan) for employees based in Ireland with the Elan acquisition in 2013. These plans were closed to new entrants from March 31, 2009, and a defined contribution plan was established for employees in Ireland hired after this date. In January 2013, Elan ceased the future accrual of benefits to the active members of the defined benefit pension plans. Active members became deferred members of the defined benefit plans on January 31, 2013 and became members of the defined contribution plan on February 1, 2013.

As of March 11, 2015, both plans (staff and executive plan) were merged and all plan assets and liabilities were transferred from the executive scheme to the staff scheme as a result of a plan combination. The value of plan assets and liabilities transferred were derived by reference to market conditions and assumptions as at March 11, 2015.

In general, upon retirement, eligible Ireland employees in the staff plan are entitled to a pension calculated at 1/60^th (1/52^nd for the executive plan) of their final salary for each year of service, subject to a maximum of 40 years. The investments of the plans at June 27, 2015 consisted of units held in independently administered funds.

In connection with the Omega acquisition, we also assumed the liability of a number of defined benefit plans as well as a postretirement healthcare plan. The defined benefit plans cover employees based primarily in the Netherlands, Germany, France, and Norway. Omega companies operate various pension plans across each country.

Finally, we provide certain healthcare benefits to eligible U.S. employees and their dependents who meet certain age and service requirements when they retire. Generally, benefits are provided to eligible retirees after age 65 and to their dependents. Increases in our contribution for benefits are limited to increases in the Consumer Price Index. Additional healthcare cost increases are paid through participant contributions. We accrue the expected costs of such benefits during a portion of the employees’ years of service. The plan is not funded. Under current plan provisions, the plan is not eligible for any U.S. federal subsidy related to the Medicare Modernization Act of 2003 Part D Subsidy.

The change in the projected benefit obligation and plan assets at June 27, 2015 and June 28, 2014 consisted of the following (in millions):



	Pension Benefits						Other Benefits
	Fiscal Year
	2015 *			2014 **			2015 *			2014
Projected benefit obligation at beginning of period	$	89.0		$	—		$	4.6		$	3.9
Acquisitions	70.4			84.4			1.0			—
Service costs	0.9			—			0.3			0.5
Interest cost	2.4			1.4			0.2			0.3
Actuarial loss	(6.8		)	12.1			—			—
Benefits paid	(0.9		)	(0.2		)	(0.1		)	(0.1		)
Settlements	—			(8.0		)	—			—
Foreign currency translation	(14.7		)	(0.7		)	—			—
Benefit obligation at end of period	$	140.3		$	89.0		$	6.0		$	4.6
Fair value of plan assets at beginning of period	99.6			—			—			—
Acquisitions	49.9			107.3			—			—
Actual return on plan assets	(1.0		)	5.4			—			—
Benefits paid	(0.1		)	(0.2		)	—			—
Settlements	—			(12.1		)	—			—
Employer contributions	2.4			—			—			—
Foreign currency translation	(17.5		)	(0.8		)	—			—
Fair value of plan assets at end of period	$	133.3		$	99.6		$	—		$	—
Funded (unfunded) status recognized in other assets	$	(7.0	)	$	10.6		$	(6.0	)	$	(4.6	)


*	Includes Omega activity from March 30, 2015 to June 27, 2015.


**	Includes Elan activity from December 18, 2013 to June 28, 2014.

Total defined benefit pension asset of $12.8 million is recorded in Other Assets and total defined benefit pension liability of $19.8 million is recorded in Other long term liabilities. The total accumulated benefit obligation for the defined benefit pension plans was $136.6 million and $89.0 million at June 27, 2015 and June 28, 2014, respectively. As of June 27, 2015 and June 28, 2014, the unamortized net actuarial loss in AOCI for defined benefit pension was $9.2 million and $11.9 million, respectively. The estimated amount to be recognized from AOCI into net periodic cost during the next twelve months is $0.8 million.

Total other benefits liability of $6.0 million is recorded in Other long term liabilities. The unfunded accumulated projected benefit obligation related to other benefits was $6.0 million and $4.6 million at June 27, 2015 and June 28, 2014, respectively. As of June 27, 2015 and June 28, 2014, an unrecognized actuarial gain of $0.1 million was included in OCI, net of tax.

At June 27, 2015, the total estimated future benefit payments to be paid by the plans for the next five years was approximately $6.5 million for pension benefits and $1.0 million for other benefits as follows (in millions):



Payment Due	Pension Benefits		Other Benefits
< 1 year	$	0.8	$	0.1
1 - 2 years	1.1		0.2
3 - 4 years	1.2		0.2
4 - 5 years	1.5		0.2
5 - 6 years	1.9		0.3
> 6 years	13.4		1.8

The expected benefits to be paid are based on the same assumptions used to measure our benefit obligation at June 27, 2015, including the expected future employee service. We expect to contribute $2.0 million to the defined benefit plans within the next year.

Net periodic pension cost for fiscal years 2015 and 2014 consisted of the following (in millions):



	Pension Benefits						Other Benefits
	Fiscal Year
	2015 *			2014 **			2015 *		2014
Service cost	$	0.9		$	—		$	0.3	$	0.5
Interest cost	2.4			1.4			0.2		0.3
Expected return on plan assets	(2.7		)	(1.9		)	—		0.6
Net actuarial loss	1.0			0.7			0.1
Net periodic pension cost	$	1.6		$	0.2		$	0.6	$	1.4


*	Includes Omega activity from March 30, 2015 to June 27, 2015.


**	Includes Elan activity from December 18, 2013 to June 28, 2014.

The weighted-average assumptions used to determine net periodic pension cost and benefit obligation as of June 27, 2015 and June 28, 2014 were:



	Pension Benefits				Other Benefits
	Fiscal Year
	2015 *		2014 **		2015 *		2014
Discount rate	2.11	%	2.90	%	4.25	%	4.25	%
Inflation	1.93	%	2.00	%
Expected return on assets	2.85	%	2.92	%


*	Includes Omega activity from March 30, 2015 to June 27, 2015.


**	Includes Elan activity from December 18, 2013 to June 28, 2014.

The discount rate is based on market yields at the valuation date and chosen with reference to the yields available on high-quality corporate bonds, having regard to the duration of the plan's liabilities.

As of June 27, 2015, the expected weighted-average long-term rate of return on assets of 2.85% was calculated based on the assumptions of the following returns for each asset class:



Equities	5.8	%
Bonds	1.2	%
Absolute return fund	3.5	%
Insurance contracts	2.3	%
Property	4.8	%

The investment mix of the pension plans' assets is a blended asset allocation, with a diversified portfolio of shares listed and traded on recognized exchanges.

As of June 27, 2015, the current long-term asset allocation ranges of the trusts are as follows:



Equities	10% - 20%
Bonds	30% - 40%
Absolute return	20% - 30%
Insurance contracts	20% - 30%
Property	0% - 10%
Other	0% - 10%

The purpose of the pension funds is to provide a flow of income for members in retirement. A flow of income delivered through fixed interest bonds provides a costly but close match to this objective. Equities are held within the portfolio as a means of reducing this cost, but holding equities creates a strategic risk because they give a very different pattern of return. Property investments are held to help diversify the portfolio. Investment risk is measured and monitored on an ongoing basis through annual liability measurements, periodic asset/liability studies, and investment portfolio reviews.

The following table sets forth the fair value of the pension plan assets, as of June 27, 2015 (in millions):



	Quoted Prices in Active Markets		Other Observable Inputs		Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Equities	$	16.7	$	—	$	—	$	16.7
Bonds	49.7		—		—		49.7
Absolute return fund	34.8		—		—		34.8
Insurance contracts	—		—		31.5		31.5
Property	—		—		0.4		0.4
Other	0.2		—		—		0.2
Total	$	101.4	$	—	$	31.9	$	133.3

The following table sets forth the fair value of the pension plan assets, as of June 28, 2014 (in millions):



	Quoted Prices in Active Markets		Other Observable Inputs		Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Equities	$	20.8	$	—	$	—	$	20.8
Bonds	48.3		—		—		48.3
Property	—		—		0.8		0.8
Other	0.1		—		—		0.1
Absolute return fund	29.6		—		—		29.6
Total	$	98.8	$	—	$	0.8	$	99.6

For a discussion of the fair value levels and the valuation methodologies used to measure equities, bonds, and the absolute return fund, see Note 5.

The following table sets forth a summary of the changes in the fair value of the Level 3 pension plan assets, which were measured at fair value on a recurring basis for fiscal years 2015 and 2014 (in millions):



	Fiscal Year
	2015 *			2014 **
Level 3 assets held at beginning of year	$	0.8		$	—
Acquisitions	31.5			0.7
Unrealized gains	(0.4		)	0.1
Level 3 assets held at end of year	$	31.9		$	0.8


*	Includes Omega activity from March 30, 2015 to June 27, 2015.


**	Includes Elan activity from December 18, 2013 to June 28, 2014.

All properties in the fund are valued by independent valuation experts by forecasting the returns of the market at regular intervals. The inputs to the forecasts include gross national product growth, interest rates and inflation.

The fair value of the insurance contracts is an estimate of the amount that would be received in an orderly sale to a market participant at the measurement date. The amount the plan would receive from the contract holder if the contracts were terminated is the primary input and is unobservable. The insurance contracts are therefore classified as Level 3 investments.

Deferred Compensation Plans

We have non-qualified plans related to deferred compensation and executive retention that allow certain employees and directors to defer compensation subject to specific requirements. Although the plans are not formally funded, we own insurance policies that had a cash surrender value of $32.7 million and $28.0 million at June 27, 2015 and June 28, 2014, respectively, that are intended as a long-term funding source for these plans. The assets, which are recorded in Other non-current assets, are not a committed funding source and may, under certain circumstances, be subject to claims from creditors. The deferred compensation liability of $32.3 million and $28.1 million at June 27, 2015 and June 28, 2014, respectively, was recorded in Other non-current liabilities.

Israeli Post Employment Benefits

Israeli labor laws and agreements require us to pay benefits to employees dismissed or retiring under certain circumstances. Severance pay is calculated on the basis of the most recent employee salary levels and the length of employee service. Our Israeli subsidiaries also provide retirement bonuses to certain managerial employees. We make regular deposits to retirement funds and purchase insurance policies to partially fund these liabilities. The deposited funds may be withdrawn only upon the fulfillment of requirements pursuant to Israeli labor laws. The liability related to these post employment benefits, which is recorded in Other non-current liabilities, was $21.3 million and $24.0 million at June 27, 2015 and June 28, 2014, respectively. We funded $17.3 million and $19.3 million of this amount, which is recorded in Other non-current assets, as of June 27, 2015 and June 28, 2014, respectively. Our contributions to the above plans were $1.0 million, $0.4 million, and $0.9 million for fiscal years 2015, 2014, and 2013, respectively.