Benefit Plans

12 Months Ended

Jan. 02, 2024

Retirement Benefits [Abstract]

Benefit Plans

13. Benefit Plans

We maintain a voluntary, contributory 401(k) plan for eligible team members. Team members may elect to contribute up to the IRS maximum for the plan year. Additionally, eligible participants may also elect catch-up contributions as provided for by the IRS. Our executive officers and other highly compensated team members are not eligible to participate in the 401(k) plan. Team member contributions are matched by us at a rate of 33% for the first 6% of deferred earnings. We contributed approximately $0.8 million, $0.6 million and $0.5 million in fiscal 2023, 2022 and 2021, respectively.

We also maintain a non-qualified deferred compensation plan (the “DCP”) for our executive officers and other highly compensated team members, as defined in the DCP, who are otherwise ineligible for participation in our 401(k) plan. The DCP allows participating team members to defer the receipt of a portion of their base compensation and up to 100% of their eligible bonuses. Additionally, the DCP allows for a voluntary company match as determined by our compensation committee. During fiscal 2023, there were no Company contributions made or accrued. We pay for related administrative costs, which were not material during fiscal 2023. Team member deferrals are deposited into a rabbi trust, and the funds are generally invested in individual variable life insurance contracts owned by us that are specifically designed to informally fund savings plans of this nature. Our investment in variable life insurance contracts, reflected in “Other assets, net” on our Consolidated Balance Sheets, was $10.4 million and $10.1 million as of January 2, 2024, and January 3, 2023, respectively. Our obligation to participating team members, included in “Other liabilities” on the accompanying Consolidated Balance Sheets, was $10.6 million and $10.1 million as of January 2, 2024, and January 3, 2023, respectively. All income and expenses related to the rabbi trust are reflected in our Consolidated Statements of Operations.