Employee Benefit Plans (Tables)

12 Months Ended

Jan. 01, 2021

Schedule of Defined Contribution, Net of Forfeitures, 401(k) Plan

The Company’s contributions, net of forfeitures, to the 401(k) Plan were as follows (in thousands):

	Years Ended
	2020		2019		2018
Employer contributions, net of forfeitures	$	1,281	$	1,279	$	996

Swiss Plan

Schedule of Defined Benefit Plans Disclosures

The following table shows the changes in the benefit obligation and plan assets and the Swiss Plan’s funded status as of January 1, 2021 and January 3, 2020 (in thousands):

Note 11 – Employee Benefit Plans (Continued)

Defined Benefit Plan – Switzerland (Continued)

	2020			2019
Change in Projected Benefit Obligation:
Projected benefit obligation, beginning of period	$	12,864		$	8,794
Service cost		1,139			739
Interest cost		51			77
Participant contributions		579			458
Benefits deposited (paid)		6,299			492
Actuarial loss		4,620			2,429
Prior service credit		(82	)		(125	)
Projected benefit obligation, end of period	$	25,470		$	12,864
Change in Plan Assets:
Plan assets at fair value, beginning of period	$	6,774		$	5,130
Actual return on plan assets (including foreign currency impact)		1,195			152
Employer contributions		704			542
Participant contributions		579			458
Benefits deposited (paid)		6,299			492
Plan assets at fair value, end of period	$	15,551		$	6,774
Funded status (pension liability), end of year(1)	$	(9,919	)	$	(6,090	)
Amount Recognized in Accumulated Other Comprehensive Income    (Loss), net of tax:
Actuarial loss on plan assets	$	(198	)	$	(1,031	)
Actuarial loss on benefit obligation		(8,453	)		(4,317	)
Actuarial gain recognized in current year		1,029			744
Prior service credit		301			258
Effect of curtailments		610			609
Accumulated other comprehensive loss	$	(6,711	)	$	(3,737	)
Accumulated benefit obligation at year end	$	(24,291	)	$	(12,043	)

⁽¹⁾ The underfunded balance was included in pension liability on the Consolidated Balance Sheets.

The change in the Projected Benefit Obligation during fiscal year 2020 was due to an increase in participant contributions, an increase in the number of participants, a translation effect (as the Swiss Plan is in Swiss Francs but the Company’s Swiss subsidiary currency is U.S. dollar, as described in Note 1) and a slight reduction in the discount rate.

Schedule of Net Benefit Costs

Net periodic pension cost associated with the Swiss Plan included the following components (in thousands):

	Years Ended
	2020			2019			2018
Service cost(1)	$	1,139		$	739		$	474
Interest cost(2)		51			77			56
Expected return on plan assets(2)		(264	)		(147	)		(116	)
Prior service credit(2),(3)		(34	)		(21	)		(21	)
Actuarial loss recognized in current period(2),(3)		318			129			113
Net periodic pension cost	$	1,210		$	777		$	506

⁽¹⁾ Recognized in selling general and administrative expenses on the Consolidated Statements of Income.

⁽²⁾ Recognized in other income (expense), net, on the Consolidated Statements of Income.

⁽³⁾ Amounts reclassified from accumulated other comprehensive income (loss).

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

Changes in other comprehensive income (loss), net of tax, associated with the Swiss Plan included the following components (in thousands):

	Years Ended
	2020			2019			2018
Current year actuarial gain (loss) on plan assets	$	833		$	4		$	(101	)
Current year actuarial loss on benefit obligation		(4,136	)		(2,172	)		(243	)
Actuarial gain recorded in current year		285			114			103
Prior service credit		43			93			(19	)
Effect of curtailments		1			—			—
Change in other comprehensive loss	$	(2,974	)	$	(1,961	)	$	(260	)

Schedule of Assumptions Used

Net periodic pension cost and projected and accumulated pension obligation for the Company’s Swiss Plan were calculated on January 1, 2021 and January 3, 2020 using the following assumptions:

	2020			2019
Discount rate		0.2	%		0.3	%
Salary increases		2.0	%		2.0	%
Expected return on plan assets		2.5	%		2.5	%
Expected average remaining working lives in years		10.1			10.0

Schedule of Changes in Fair Value of Plan Assets

The table below sets forth the fair value of Plan assets at January 3, 2020 and January 1, 2021, and the related activity in years ended 2019 and 2020, in accordance with ASC 715-20-50-1(d) (in thousands):

	Insurance Contracts (Level 3)
Beginning balance at December 28, 2018	$	5,130
Actual return on plan assets		152
Purchases, sales, and settlement		1,492
Ending balance at January 3, 2020	$	6,774
Actual return on plan assets		1,195
Purchases, sales, and settlement		7,582
Ending balance at January 1, 2021	$	15,551

Schedule Of Defined Benefit Plan Estimated Future Benefit Payments

The estimated future benefit payments for the Swiss Plan are as follows (in thousands):

Year Ended	Amount
2021	$	72
2022		96
2023		138
2024		156
2025		176
Thereafter		9,281
Total	$	9,919

Japan Plan

Schedule of Defined Benefit Plans Disclosures

Note 11 – Employee Benefit Plans (Continued)

Defined Benefit Plan-Japan (Continued)

The funded status of the benefit plan at January 1, 2021 and January 3, 2020 was as follows (in thousands): 

	2020			2019
Change in Projected Benefit Obligation:
Projected benefit obligation, beginning of period	$	1,750		$	1,646
Service cost		180			185
Interest cost		5			7
Actuarial gain		34			(58	)
Benefits paid		(35	)		(66	)
Foreign exchange adjustment		87			36
Projected benefit obligation, end of period	$	2,021		$	1,750
Change in Plan Assets:
Plan assets at fair value, beginning of period	$	—		$	—
Actual return on plan assets		—			—
Employer contributions		—			—
Benefits paid		—			—
Distribution of plan assets		—			—
Foreign exchange adjustment		—			—
Plan assets at fair value, end of period	$	—		$	—
Funded status (pension liability), end of year(1)	$	(2,021	)	$	(1,750	)
Amount Recognized in Accumulated Other Comprehensive Income    (Loss), net of tax:
Transition obligation	$	—		$	—
Actuarial loss		(38	)		(37	)
Prior service cost		7			7
Net gain		46			68
Accumulated other comprehensive income	$	15		$	38
Accumulated benefit obligation at year end	$	(1,858	)	$	(1,599	)

⁽¹⁾ The underfunded balance was included in pension liability on the Consolidated Balance Sheets.

Schedule of Net Benefit Costs

Net periodic pension cost associated with the Japan Plan included the following components (in thousands):

	Years Ended
	2020			2019			2018
Service cost(1)	$	180		$	185		$	153
Interest cost(2)		5			7			4
Net amortization of transitional obligation(2),(3)		—			—			11
Prior service credit(2),(3)		(1	)		(1	)		(1	)
Net periodic pension cost	$	184		$	191		$	167

⁽¹⁾ Recognized in selling general and administrative expenses on the Consolidated Statements of Income.

⁽²⁾ Recognized in other income (expense), net, on the Consolidated Statements of Income.

⁽³⁾ Amounts reclassified from accumulated other comprehensive loss.

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

Note 11 – Employee Benefit Plans (Continued)

Defined Benefit Plan-Japan (Continued)

Changes in other comprehensive income (loss), net of tax, associated with the Japan Plan include the following components (in thousands):

	Years Ended
	2020			2019			2018
Amortization of net transition obligation	$	—		$	—		$	7
Amortization of actuarial loss		(1	)		(1	)		(1	)
Prior service cost		—			(1	)		—
Actuarial income (loss) recorded in current year		(22	)		30			(84	)
Change in other comprehensive income (loss)	$	(23	)	$	28		$	(78	)

Schedule of Assumptions Used

Net periodic pension cost and projected and accumulated pension obligation for the Company’s Japan Plan were calculated on January 1, 2021 and January 3, 2020 using the following assumptions:

	2020			2019
Discount rate		0.3	%		0.3	%
Salary increases		4.4	%		4.5	%
Expected return on plan assets	N/A			N/A
Expected average remaining working lives in years		10.7			10.0

Schedule Of Defined Benefit Plan Estimated Future Benefit Payments

The estimated future benefit payments for the Japan Plan are as follows (in thousands):

Year Ended	Amount
2021	$	104
2022		39
2023		212
2024		93
2025		212
Thereafter		1,361
Total	$	2,021