Benefit Plans

6 Months Ended

Jul. 02, 2022

Retirement Benefits [Abstract]

Benefit Plans

Benefit Plans

The Company has company-sponsored defined benefit pension plans covering employees in the U.K., Germany, the Philippines, China, Japan, Mexico, Italy and France. The amount of the retirement benefits provided under the plans is based on years of service and final average pay.

The Company recognizes interest cost, expected return on plan assets, and amortization of prior service, net within Other expense (income), net in the Condensed Consolidated Statements of Net Income. The components of net periodic benefit cost for the three and six months ended July 2, 2022 and June 26, 2021 were as follows: 

	For the Three Months Ended				For the Six Months Ended
(in thousands)	July 2, 2022		June 26, 2021		July 2, 2022		June 26, 2021
Components of net periodic benefit cost:
Service cost	$	750	$	700	$	1,518	$	1,402
Interest cost	628		443		1,272		883
Expected return on plan assets	(380)		(371)		(783)		(738)
Amortization of prior service and net actuarial loss	96		334		197		665
Net periodic benefit cost	$	1,094	$	1,106	$	2,204	$	2,212

The Company expects to make approximately $2.6 million of contributions to the plans and pay $1.8 million of benefits directly in 2022.

The Company also sponsors certain post-employment plans in foreign countries and other statutory benefit plans. The Company recorded expense of $0.5 million for both the three months ended July 2, 2022 and June 26, 2021, respectively, and $1.0 million for both the six months ended July 2, 2022 and June 26, 2021, respectively, in Cost of Sales and Other expense (income), net within the Condensed Consolidated Statements of Net Income. The pre-tax amounts recognized in other comprehensive loss (income) as components of net periodic benefit costs for these plans were $0.1 million and $0.2 million for the three months ended July 2, 2022 and June 26, 2021, respectively, and $0.2 million and $0.3 million for the six months ended July 2, 2022 and June 26, 2021, respectively.