Benefit Plans

12 Months Ended

Dec. 30, 2023

Retirement Benefits [Abstract]

Benefit Plans

Benefit Plans

Pension and Other Postretirement Plans

The Company sponsors several qualified and nonqualified pension plans and other postretirement benefit plans for certain employees.  The information disclosed below does not include the pension plan in South Korea, as it it immaterial to the Company’s Consolidated Financial Statements. The following tables provide a reconciliation of the changes in the most significant plans’ benefit obligations and the fair value of the plans’ assets for 2023 and 2022, and a statement of the plans’ aggregate funded status:

	Pension Benefits				Other Benefits
(In thousands)	2023		2022		2023		2022
Change in benefit obligation:
Obligation at beginning of year	$	50,761	$	84,283	$	9,240	$	11,825
Service cost	—		—		183		291
Interest cost	2,454		1,450		439		346
Actuarial loss (gain)	1,508		(24,154)		(105)		(2,604)
Plan amendments/transference	—		—		101		—
Benefit payments	(3,582)		(2,512)		(686)		(547)
Foreign currency translation adjustment	3,294		(8,306)		385		(71)
Obligation at end of year	54,435		50,761		9,557		9,240
Change in fair value of plan assets:
Fair value of plan assets at beginning of year	62,298		79,478		—		—
Actual return on plan assets	410		(6,371)		—		—
Employer contributions	—		—		686		547
Benefit payments	(3,582)		(2,512)		(686)		(547)
Foreign currency translation adjustment	3,745		(8,297)		—		—
Fair value of plan assets at end of year	62,871		62,298		—		—
Funded (underfunded) status at end of year	$	8,436	$	11,537	$	(9,557)	$	(9,240)

The following represents amounts recognized in AOCI (before the effect of income taxes):

	Pension Benefits				Other Benefits
(In thousands)	2023		2022		2023		2022
Unrecognized net actuarial loss (gain)	$	7,728	$	2,870	$	(3,863)	$	(4,149)
Unrecognized prior service credit	—		—		(5)		(19)

As of December 30, 2023, $0.2 million of the actuarial net gain and the remainder of the prior service credit will, through amortization, be recognized as components of net periodic benefit cost in 2024.

The aggregate status of all overfunded plans is recognized as an asset and the aggregate status of all underfunded plans is recognized as a liability in the Consolidated Balance Sheets.  The amounts recognized as a liability are classified as current or long-term on a plan-by-plan basis.  Liabilities are classified as current to the extent the actuarial present value of benefits payable within the next 12 months exceeds the fair value of plan assets, with all remaining amounts classified as long-term.  

As of December 30, 2023 and December 31, 2022, the total funded status of the plans recognized in the Consolidated Balance Sheets was as follows:

	Pension Benefits				Other Benefits
(In thousands)	2023		2022		2023		2022
Long-term asset	$	8,436	$	11,537	$	—	$	—
Current liability	$	—	$	—	$	(1,041)	$	(1,068)
Long-term liability	—		—		(8,516)		(8,172)
Total funded (underfunded) status	$	8,436	$	11,537	$	(9,557)	$	(9,240)

The components of net periodic benefit cost (income) are as follows:

(In thousands)	2023		2022		2021
Pension benefits:
Interest cost	$	2,454	$	1,450	$	1,272
Expected return on plan assets	(3,260)		(3,568)		(3,671)
Amortization of net loss	—		897		1,536
Settlement charge	—		—		—
Net periodic benefit income	$	(806)	$	(1,221)	$	(863)
Other benefits:
Service cost	$	183	$	291	$	258
Interest cost	439		346		281
Amortization of prior service credit	(2)		(198)		(470)
Amortization of net gain	(449)		(220)		(103)
Curtailment gain	—		(1,756)		—
Net periodic benefit cost (income)	$	171	$	(1,537)	$	(34)

During 2022, the Company recognized a curtailment gain of $1.8 million related to one of its postretirement benefit plans.

The components of net periodic benefit cost (income) other than the service cost component are included in other income, net in the Consolidated Statements of Income.

The weighted average assumptions used in the measurement of the Company’s benefit obligations are as follows:

	Pension Benefits				Other Benefits
	2023		2022		2023		2022
Discount rate	4.40	%	4.80	%	5.96	%	6.08	%
Expected long-term return on plan assets	4.30	%	5.51	%	N/A		N/A
Rate of compensation increases	N/A		N/A		5.00	%	5.00	%
Rate of inflation	3.20	%	3.30	%	N/A		N/A

The weighted average assumptions used in the measurement of the Company’s net periodic benefit cost are as follows:

	Pension Benefits						Other Benefits
	2023		2022		2021		2023		2022		2021
Discount rate	4.80	%	1.90	%	1.40	%	6.08	%	3.73	%	2.92	%
Expected long-term return on plan assets	5.51	%	4.96	%	4.69	%	N/A		N/A		N/A
Rate of compensation increases	N/A		N/A		N/A		5.00	%	5.00	%	5.00	%
Rate of inflation	3.30	%	3.70	%	3.20	%	N/A		N/A		N/A

The Company’s Mexican postretirement plans use the rate of compensation increase in the benefit formulas.  Past service in the U.K. pension plan will be adjusted for the effects of inflation.  All other pension and postretirement plans use benefit formulas based on length of service.

The annual assumed rate of increase in the per capita cost of covered benefits (i.e., health care cost trend rate) is assumed to range from 4.9 to 8.2 percent for 2024, gradually decrease to 4.1 percent through 2040, and remain at that level thereafter.  The health care cost trend rate assumption does not have a significant effect on the amounts reported.

Pension Assets

The weighted average asset allocation of the Company’s pension fund assets are as follows:

	Pension Plan Assets
Asset category	2023		2022
Pooled liability investments	99	%	—	%
Equity securities (includes equity mutual funds)	—		67
Multi-asset securities	—		22
Cash and equivalents (includes money market funds)	1		1
Alternative investments	—		10
Total	100	%	100	%

The pension plan obligations are long-term and, accordingly, the plan assets are invested for the long-term.  Plan assets are monitored periodically.  Based upon results, investment managers and/or asset classes are redeployed when considered necessary.  None of the plans’ assets are expected to be returned to the Company during the next fiscal year.  The assets of the plans do not include investments in securities issued by the Company.  

The estimated rates of return on plan assets are the expected future long-term rates of earnings on plan assets and are forward-looking assumptions that materially affect pension cost.  Establishing the expected future rates of return on pension assets is a judgmental matter.  The Company reviews the expected long-term rates of return on an annual basis and revises as appropriate.  The expected long-term rate of return on plan assets was 4.30 percent for 2023 and 5.51 percent in 2022.

The Company’s investments for its pension plans are reported at fair value.  The following methods and assumptions were used to estimate the fair value of the Company’s plan asset investments:

Cash and money market funds – Valued at cost, which approximates fair value.

Pooled liability investments – These funds are primarily invested in U.K. government bonds and highly rated corporate bonds. The level 2 fair value is determined utilizing observable inputs of the underlying assets.

Mutual funds – Valued at the net asset value of shares held by the plans, based upon quoted market prices.

Limited partnerships – Limited partnerships comprise a diversified portfolio of real estate investments which are classified as Level 3 due to a lack of observable inputs existing at the measurement date. Accordingly, the estimated fair values may differ significantly from the values that would have been used had a ready market existed for these investments. Limited partnership investments are recorded at estimated fair value based on financial information received from the investment manager. The investment manager determines fair value based upon, among other things, property valuations received from valuation specialists at regular intervals.

The following table sets forth by level, within the fair value hierarchy, the assets of the plans at fair value:

	Fair Value Measurements at December 30, 2023
(In thousands)	Level 1		Level 2		Level 3		Total
Cash and money market funds	$	502	$	—	$	—	$	502
Pooled liability investments	—		62,369		—		62,369
Total	$	502	$	62,369	$	—	$	62,871

	Fair Value Measurements at December 31, 2022
(In thousands)	Level 1		Level 2		Level 3		Total
Cash and money market funds	$	829	$	—	$	—	$	829
Mutual funds (1)	—		55,441		—		55,441
Limited partnerships	—		—		6,028		6,028
Total	$	829	$	55,441	$	6,028	$	62,298

(1)Approximately 78 percent of mutual funds are actively managed funds and approximately 22 percent of mutual funds are index funds.  Additionally, 24 percent of the mutual funds’ assets are invested in non-U.S. multi-asset securities and 76 percent in non-U.S. equities.

The table below reflects the changes in the assets of the plan measured at fair value on a recurring basis using significant unobservable inputs (level 3 of fair value hierarchy) during the year ended December 30, 2023:

(In thousands)	Limited Partnerships
Balance, December 31, 2022	$	6,028
Liquidation	(6,028)
Balance, December 30, 2023	$	—

Contributions and Benefit Payments

The Company does not expect to contribute to the U.K. pension plan, other than to reimburse expenses, and expects to contribute $1.0 million to its other postretirement benefit plans in 2024. The Company expects future benefits to be paid from the plans as follows:

(In thousands)	Pension Benefits		Other Benefits
2024	$	3,418	$	1,042
2025	3,540		1,045
2026	3,667		1,080
2027	3,798		877
2028	3,934		922
2028-2032	21,886		4,146
Total	$	40,243	$	9,112

401(k) Plans

The Company sponsors voluntary employee savings plans that qualify under Section 401(k) of the Internal Revenue Code of 1986.  Compensation expense for the Company’s matching contribution to the 401(k) plans was $4.9 million in 2023, $4.9 million in 2022, and $4.5 million in 2021.  The Company match is a cash contribution.  Participants direct the investment of their account balances by allocating among a range of asset classes including mutual funds (equity, fixed income, and balanced funds) and money market funds.  The plans do not allow direct investment in securities issued by the Company.

U. K. Pension Plan

During 2023, a United Kingdom High Court issued a ruling involving another U.K. company’s defined benefit pension scheme regarding the impact of not obtaining certain documentation under section 37 of the Pension Scheme Act of 2003 could have on plan amendments in relation to the contracting out of state benefit pension. The ruling is subject to appeal and the Company will continue to evaluate this matter. The Company continues to account for it U.K. pension scheme in accordance with all relevant plan agreements and amendments, as they represent the terms that are mutually understood by the employer and plan participants.