Employee Benefit Plans |
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Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefits Disclosure [Text Block] | Note 10 — Employee Benefit Plans The Company maintains a passive pension plan (the “Swiss Plan”) covering employees of its Swiss subsidiary, which is accounted for as a defined benefit plan. Defined Benefit Plan-Switzerland In Switzerland employers are required to provide a minimum pension plan for their staff. Contributions of both the employees and employer finance the Swiss Plan. The amount of the contributions is defined by the plan regulations and cannot be decreased without amending the plan regulations. It is required that the employer contribute an amount equal to or greater than the employee contribution. The following table shows the changes in the benefit obligation and plan assets and the Swiss Plan’s funded status as of December 30, 2016 and January 1, 2016 (in thousands):
The underfunded balance of $2.8 million and $2.9 million was included in other long-term liabilities (pension liability) on the consolidated balance sheets as of December 30, 2016 and January 1, 2016, respectively. Net periodic pension cost associated with the Swiss Plan during the years ended December 30, 2016, January 1, 2016 and January 2, 2015 include the following components (in thousands):
Changes in other comprehensive income (loss), net of tax, associated with the Swiss Plan in the year ended December 30, 2016, January 1, 2016 and January 2, 2015 include the following components (in thousands):
The amount in accumulated other comprehensive loss as of December 30, 2016 that is expected to be recognized as a component of the net periodic pension costs during fiscal year 2017 is $73,000. Net periodic pension cost and projected and accumulated pension obligation for the Company’s Swiss Plan were calculated on December 30, 2016 and January 1, 2016 using the following assumptions:
The discount rates are based on an assumed pension benefit maturity of 10 to 15 years. The rate was estimated using the rate of return for high quality Swiss corporate bonds that mature in eight years. This maturity was used as there are significant numbers of high quality Swiss bonds, but very few bonds issued with maturities with longer lives. To determine an appropriate discount rate, the eight-year rate of return was then extrapolated along the yield curve of Swiss government bonds. The salary increase rate was based on the Company’s best estimate of future increases over time. The expected long-term rate of return on plan assets is based on the expected asset allocation and assumptions concerning long-term interest rates, inflation rates, and risk premiums for equities above the risk-free rates of return. These assumptions take into consideration historical long-term rates of return for relevant asset categories Under Swiss law, pension funds are legally independent from the employer and all the contributions are invested with regulated entities. The Company has a contract with Allianz Suisse Life Insurance Company’s BVG Collective Foundation (the “Foundation”) to manage its Swiss pension fund. Multiple employers contract with the Foundation to manage the employers’ respective pension plans. The Foundation manages the pension plans of its contracted employers as a collective entity. The investment strategy is determined by the Foundation and applies to all members of the collective Foundation. There are no separate financial statements for each employer contract. The pension plan assets of all the employers that contract with the Foundation are comingled. They are considered multiple-employer plans under ASC 715-30-35-70 and therefore accounted for as single-employer plans. As there are no separate financial statements for each employer contract, there are no individual investments that can be directly attributed to the Company’s pension plan assets. However, the funds contributed by an employer are specifically earmarked for its employees and the total assets of the plan allocable to Company’s employees are separately tracked by the Foundation. The lack of visibility into the specific investments of the plan assets and how they are valued is a significant unobservable input, therefore, the Company considers the plan assets collectively to be Level 3 assets under the fair value hierarchy (see Note 1). Plan assets totaled $3.6 million and $3.5 million as of December 30, 2016 and January 1, 2016, respectively. The table below sets forth the fair value of Plan assets at December 30, 2016 and January 1, 2016, and the related activity in fiscal years 2015 and 2016, in accordance with ASC 715-20-50-1(d) (in thousands):
During fiscal 2017, the Company expects to make cash contributions totaling approximately $238,000 to the Swiss Plan. The estimated future benefit payments for the Swiss Plan are as follows (in thousands):
Defined Benefit Plan-Japan STAAR Japan maintains a noncontributory defined benefit pension plan (“Japan Plan”) substantially covering all the employees of STAAR Japan. Benefits under the Japan Plan are earned, vested, and accumulated based on a point-system, primarily based on the combination of years of service, actual and expected future grades (management or non-management) and actual and future zone (performance) levels of the employees. Each point earned is worth a fixed monetary value, 1,000 Yen per point, regardless of the level grade or zone of the employee. Gross benefits are calculated based on the cumulative number of points earned over the service period multiplied by 1,000 Yen. The mandatory retirement age limit is 60 years old. STAAR Japan administers the pension plan and funds the obligations of the Japan Plan from STAAR Japan’s operating cash flows. STAAR Japan is not required, and does not intend, to provide contributions to the Plan to meet benefit obligations and therefore does not have any plan assets. Benefit payments are made to beneficiaries as they become due. The funded status of the benefit plan at December 30, 2016 and January 1, 2016 is as follows (in thousands):
The underfunded balance of $1,240,000 and $1,035,000, respectively, was included in other long-term liabilities (pension liability) on the consolidated balance sheets as of December 30, 2016 and January 1, 2016. Net periodic pension cost associated with the Japan Plan for the years ended December 30, 2016, January 1, 2016 and January 2, 2015 includes the following components (in thousands):
Changes in other comprehensive income (loss), net of tax, associated with the Japan Plan for the years ended December 30, 2016, January 1, 2016 and January 2, 2015 include the following components (in thousands):
The amount in accumulated other comprehensive loss as of December 30, 2016 that is expected to be recognized as a component of the net periodic pension cost in fiscal 2017 is approximately $7,300. Net periodic pension cost and projected and accumulated pension obligation for the Company’s Japan Plan were calculated on December 30, 2016 and January 1, 2016 using the following assumptions:
The discount rate of 0.30% as of December 30, 2016 and the discount rate of 0.50% as of January 1, 2016 are based on the approximate Japanese government bond rate with a term of 10 to 20 years. The salary increase average rate was based on the Company’s best estimate of future increases over time. The estimated future benefit payments for the Japan Plan are as follows (in thousands):
Defined Contribution Plan The Company has a 401(k) profit sharing plan (“401(k) Plan”) for the benefit of qualified employees in the U.S. During the fiscal year ended December 30, 2016, employees who participate may elect to make salary deferral contributions to the 401(k) Plan up to the $18,000 of the employees’ eligible payroll subject to annual Internal Revenue Code maximum limitations (with a $6,000 annual catch-up contribution permitted for those over 50 years old). The Company’s contribution percentage is 80% of the employee’s contribution up to the first 6% of the employee’s compensation. In addition, STAAR may make a discretionary contribution to qualified employees, in accordance with the 401(k) Plan. During the years ended December 30, 2016, January 1, 2016, and January 2, 2015, the Company made contributions, net of forfeitures, of $703,000, $625,000, and $518,000, respectively, to the 401(k) Plan. |