Employee Benefit Plans (Tables)

12 Months Ended

Jan. 03, 2021

Retirement Benefits [Abstract]

Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan

The tables presented below set forth the funded status of the Company’s significant foreign defined benefit plans and required disclosures in accordance with applicable accounting standards:

	Fiscal Year
	2020		2019
	(in thousands)
Change in benefit obligation:
Benefit obligation, beginning of year	$	314,841	$	285,508
Service cost	1,070		1,589
Interest cost	4,038		5,676
Benefits and expenses paid	(12,041)		(13,034)
Actuarial loss (gain)	31,618		37,409
Curtailment gain	—		(2,421)
Member contributions	—		221
Currency translation adjustment	24,917		(107)
Benefit obligation, end of year	$	364,443	$	314,841
Change in plan assets:
Plan assets, beginning of year	$	266,450	$	249,313
Actual return on assets	25,239		24,999
Company contributions	4,451		3,954
Benefits paid	(12,041)		(13,034)
Currency translation adjustment	19,432		1,218
Plan assets, end of year	$	303,531	$	266,450
Reconciliation to balance sheet
Funded status benefit asset (liability)	$	(60,912)	$	(48,391)
Amounts recognized in accumulated other comprehensive income, after tax:
Unrecognized actuarial loss	$	58,257	$	47,561
Unamortized prior service credits	—		—
Total amount recognized	$	58,257	$	47,561
Accumulated benefit obligation	$	364,443	$	314,841

The following table summarizes this information as of January 3, 2021 and December 29, 2019. 

	End of Fiscal Year
	2020		2019
	(in thousands)
UK Plan
Projected benefit obligation	$	198,215	$	170,958
Accumulated benefit obligation	198,215		170,958
Plan assets	193,991		174,156
Dutch Plan
Projected benefit obligation	$	116,379	$	100,996
Accumulated benefit obligation	116,379		100,996
Plan assets	109,540		92,294
nora Plan
Projected benefit obligation	$	49,849	$	42,887
Accumulated benefit obligation	49,849		42,887
Plan assets	—		—

The tables presented below set forth the required disclosures in accordance with applicable accounting standards, and amounts recognized in the consolidated financial statements related to the domestic SCP. There is no service cost component of the change in benefit obligation in 2020 and 2019 as there are no longer any active participants in the plan.

	Fiscal Year
	2020		2019
	(in thousands)
Change in benefit obligation:
Benefit obligation, beginning of year	$	31,740	$	29,142
Interest cost	938		1,154
Benefits paid	(2,030)		(2,030)
Actuarial loss (gain)	3,186		3,474
Benefit obligation, end of year	$	33,834	$	31,740

Schedule of Net Periodic Benefit Cost

	Fiscal Year
	2020		2019		2018
	(in thousands)
Components of net periodic benefit cost:
Service cost	$	1,070	$	1,589	$	1,112
Interest cost	4,038		5,676		5,467
Expected return on plan assets	(4,256)		(5,561)		(6,234)
Amortization of prior service cost	106		63		(27)
Amortization of net actuarial (gains) losses	1,549		991		1,394
Curtailment gain	—		(453)		—
Net periodic benefit cost	$	2,507	$	2,305	$	1,712

Schedule of Assumptions Used to Determine Net Periodic Benefit Cost

	Fiscal Year
	2020		2019		2018
Weighted average assumptions used to determine net periodic benefit cost:
Discount rate	1.0	%	1.9	%	1.9	%
Expected return on plan assets	1.2	%	2.1	%	1.8	%
Rate of compensation	—	%	1.75	%	1.75	%
Weighted average assumptions used to determine benefit obligations:
Discount rate	1.0	%	1.7	%	2.5	%
Rate of compensation	—	%	1.75	%	1.75	%

The accumulated benefit obligation related to the SCP was $33.8 million and $31.7 million as of January 3, 2021 and December 29, 2019, respectively. The SCP is currently unfunded; as such, the benefit obligations disclosed are also the benefit obligations in excess of the plan assets. The Company uses insurance instruments to help limit its exposure under the SCP.

	Fiscal Year
	2020			2019			2018
	(in thousands, except for assumptions)
Assumptions used to determine net periodic benefit cost:
Discount rate	3.05		%	4.10		%	3.50		%
Rate of compensation	—			—			—
Assumptions used to determine benefit obligations:
Discount rate	2.15		%	3.05		%	4.10		%
Rate of compensation	—			—			—
Components of net periodic benefit cost:
Service cost	$	—		$	—		$	—
Interest cost	938			1,154			1,082
Amortizations	558			375			464
Net periodic benefit cost	$	1,496		$	1,529		$	1,546

Schedule of Allocation of Plan Assets

The Company’s actual weighted average asset allocations for 2020 and 2019, and the targeted asset allocation for 2021, of the foreign defined benefit plans by asset category, are as follows:

	Fiscal Year
	2021			2020	2019
Asset Category	Target Allocation			Percentage of Plan Assets at Year End
Equity securities	1%	—	3%	3%	3%
Debt and debt securities	50%	—	60%	60%	61%
Short-term investments	1%	—	2%	—%	1%
Other investments	35%	—	40%	37%	35%
	100%			100%	100%

As noted above, the Dutch pension plan assets as represented by the insurance contract are classified as a Level 3 asset and included in the “Other” asset category.

	Pension Plan Assets by Category as of January 3, 2021
	Dutch Plan		UK Plan		Total
	(in thousands)
Level 1	$	—	$	70,904	$	70,904
Level 2	—		95,004		95,004
Level 3	109,540		28,083		137,623
Total	$	109,540	$	193,991	$	303,531

	Pension Plan Assets by Category as of December 29, 2019
	Dutch Plan		UK Plan		Total
	(in thousands)
Level 1	$	—	$	64,151	$	64,151
Level 2	—		87,047		87,047
Level 3	92,294		22,958		115,252
Total	$	92,294	$	174,156	$	266,450

The tables below detail the foreign defined benefit plans’ assets by asset allocation and fair value hierarchy:

	End of Fiscal Year 2020
Asset Category	Level 1		Level 2		Level 3
			(in thousands)
Equity securities	$	9,113	$	—	$	—
Debt and debt securities	60,699		95,004		25,927
Short-term investments (1)	1,092		—		—
Other investments (2)	—		—		111,696
	$	70,904	$	95,004	$	137,623

	End of Fiscal Year 2019
Asset Category	Level 1		Level 2		Level 3
	(in thousands)
Equity securities	$	8,143	$	—	$	—
Debt and debt securities	54,686		87,047		19,996
Short-term Investments (1)	1,322		—		—
Other Investments (2)	—		—		95,256
	$	64,151	$	87,047	$	115,252

(1) Short-term investments are generally invested in interest-bearing accounts.

(2) Other investments is comprised of insurance contracts.

Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets

The table below indicates the change in value related to these level 3 assets during 2020 and 2019:

	Fiscal Year
	2020		2019
	(in thousands)
Balance of level 3 assets, beginning of year	$	115,252	$	109,254
Actual return on plan assets (1)	6,767		5,463
Purchases, sales and settlements, net	437		663
Assets transferred into level 3	3,934		2,101
Translation adjustment	11,233		(2,229)
Balance of level 3 assets, end of year	$	137,623	$	115,252

(1) Includes $10.1 million and $6.2 million for 2020 and 2019, respectively, of unrealized gains recognized during the period in other comprehensive income (loss) for assets held at year end.

Schedule of Expected Future Benefit Payments

During 2021, the Company expects to contribute $5.2 million to the plans. It is anticipated that future benefit payments for the foreign defined benefit plans will be as follows:

Fiscal Year	Expected Payments
	(in thousands)
2021	$	12,038
2022	12,097
2023	12,351
2024	12,595
2025	12,764
2026-2030	66,169

During 2020, the Company contributed $2.0 million in the form of direct benefit payments for its domestic SCP. It is anticipated that future benefit payments for the SCP will be as follows:

Fiscal Year	Expected Payments
	(in thousands)
2021	$	2,030
2022	2,030
2023	2,030
2024	2,030
2025	2,030
2026-2030	9,447

Schedule of Amounts Recognized in Consolidated Balance Sheet and Accumulated Other Comprehensive Income

The amounts recognized in the consolidated balance sheets are as follows:

	End of Fiscal Year
	2020		2019
	(in thousands)
Current liabilities	$	2,030	$	2,030
Non-current liabilities	31,804		29,710
Total benefit obligation	$	33,834	$	31,740

The components of the amounts in accumulated other comprehensive income, after tax, are as follows:

	Fiscal Year
	2020		2019
	(in thousands)
Unrecognized actuarial loss	$	11,031	$	9,139