Employee Benefit Plans

12 Months Ended

Jun. 27, 2025

Pension Plan

The Company maintains a pension plan (the “Plan”) for its Swiss employees, which is administered by an independent pension fund. The Plan is mandated by Swiss law and meets the criteria for a defined benefit plan under ASC 715, Compensation—Retirement Benefits (“ASC 715”), since participants of the Plan are entitled to a defined rate of return on contributions made. The independent pension fund is a multi-employer plan with unrestricted joint liability for all participating companies for which the Plan’s overfunding or underfunding is allocated to each participating company based on an allocation key determined by the Plan.

The Company recognizes a net asset or liability for the Plan equal to the difference between the projected benefit obligation of the Plan and the fair value of the Plan’s assets as required by ASC 715. The funded status may vary from year to year due to changes in the fair value of the Plan’s assets and variations on the underlying assumptions of the projected benefit obligation of the Plan.

In fiscal 2021, the independent pension fund changed the conversion rate for accumulated retirement savings leading to a Plan amendment. The Company’s results contain the effects of this change in conversion rates by the independent pension fund as prior service costs. These prior service costs are amortized from AOCI to net periodic benefit costs over approximately nine years.

At June 27, 2025, the accumulated benefit obligation of the Plan equals the fair value of the Plan's assets. The Plan's funded status at June 27, 2025 and June 28, 2024 was a net liability of $5,282 and $5,005, respectively, which is recorded in other non-current liabilities on the Consolidated Balance Sheets. The Company recognized net periodic benefit (gain) costs of $(1,233) and $471 associated with the Plan and a net loss of $1,809 and 1,383 in AOCI during the fiscal years ended June 27, 2025 and June 28, 2024, respectively. Total employer contributions to the Plan were $978 during the year ended June 27, 2025, and the Company's total expected employer contributions to the Plan during fiscal 2026 are $704.

The following table reflects the total pension benefits expected to be paid from the Plan, which is funded from contributions by participants and the Company.


Fiscal Year	Total
2026	$	665
2027	801
2028	1,070
2029	845
2030	939
Thereafter (next 5 years)	5,064
Total	$	9,384

The following table outlines the components of net periodic benefit cost of the Plan for the fiscal years ended June 27, 2025 and June 28, 2024:


	Fiscal Years Ended
	June 27, 2025		June 28, 2024
Service cost	$	1,164	$	965
Interest cost	320		481
Expected return on assets	(247)		(400)
Amortization of prior service cost	(227)		(203)
Amortization net of loss	—		(18)
Settlement gain recognized	(181)		(354)
Curtailment gain recognized	(2,062)		—
Net periodic benefit (gain) cost	$	(1,233)	$	471

During fiscal year 2025, due to the sale of manufacturing operations to Cicor Group, there was a $2,062 plan curtailment.

The following table reflects the related actuarial assumptions used to determine net periodic benefit cost of the Plan for the fiscal years ended June 27, 2025 and June 28, 2024:


	Fiscal Years Ended
	June 27, 2025		June 28, 2024
Discount rate	1.20	%	1.30	%
Expected rate of return on Plan assets	1.25	%	1.30	%
Expected inflation	1.00	%	1.20	%
Rate of compensation increases	3.00	%	2.50	%

The calculation of the projected benefit obligation (“PBO”) utilized BVG 2020 Generational data for assumptions related to the mortality rates, disability rates, turnover rates, and early retirement ages.

The PBO represents the present value of Plan benefits earned through the end of the year, with an allowance for future salary and pension increases as well as turnover rates. The following table presents the change in projected benefit obligation for the periods presented:


	Fiscal Years Ended
	June 27, 2025		June 28, 2024
Projected benefit obligation, beginning	$	21,878	$	24,710
Service cost	1,164		965
Interest cost	320		481

Employee contributions	1,106		1,235
Actuarial gain	2,046		629
Benefits paid	557		(881)
Settlements	(10,299)		(5,239)
Plan amendment	(22)		20
Curtailment	(1,750)		—
Foreign exchange loss (gain)	2,722		(42)
Projected benefit obligation at end of year	$	17,722	$	21,878

The following table presents the change in Plan assets for the periods presented:


	Fiscal Years Ended
	June 27, 2025		June 28, 2024
Fair value of Plan assets, beginning	$	16,873	$	20,559
Actual return on Plan assets	1,125		246
Company contributions	978		988

Employee contributions	1,106		1,235
Benefits paid	557		(881)
Settlements	(10,299)		(5,239)
Foreign exchange gain (loss)	2,100		(35)
Fair value of Plan assets at end of year	$	12,440	$	16,873

The following table presents the Company's reconciliation of funded status for the period presented:


	As of
	June 27, 2025		June 28, 2024
Projected benefit obligation at end of year	$	17,722	$	21,878
Fair value of plan assets at end of year	12,440		16,873
Funded status	$	(5,282)	$	(5,005)

The fair value of Plan assets was $12,440 at June 27, 2025. The Plan is denominated in a foreign currency, the Swiss Franc, which can have an impact on the fair value of Plan assets. The Plan was not subject to material fluctuations during the years ended June 27, 2025 or June 28, 2024. The Plan’s assets are administered by an independent pension fund foundation (the “foundation”). As of June 27, 2025, the foundation has invested the assets of the Plan in various investments vehicles, including cash, real estate, equity securities, and bonds. The investments are measured at fair value using a mix of Level 1, Level 2 and Level 3 inputs.

401(k) Plan

The Company maintains a qualified 401(k) plan (the “401(k) Plan”) for its U.S. employees. Effective in the first quarter of fiscal 2023, the Company increased the rate of its matching contributions from 3% to 6% of participants' eligible annual compensation and changed the form of these contributions from cash to Company stock. The Company may also make optional contributions to the plan for any plan year at its discretion. The Company had $3,068 and $2,901 of capitalized stock-based 401(k) matching compensation expense on the Consolidated Balance Sheet as of June 27, 2025 and June 28, 2024, respectively. Stock-based 401(k) matching compensation cost is measured based on the value of the matching amount and is recognized as expense as incurred. Expense recognized by the Company for matching contributions related to the 401(k) plan was $14,900, $15,853, and $15,665 during the fiscal years ended June 27, 2025, June 28, 2024, and June 30, 2023, respectively.

Deferred Compensation Plan

The Company implemented a nonqualified deferred compensation plan as of January 1, 2024, under which eligible employees may defer up to 50% of their base salaries and up to 100% of their annual incentive bonuses. The Company may also make employer contributions to participant accounts in its sole discretion, and currently matches participants’ deferrals under the plan of up to 6% of their eligible annual compensation in the form of deferred stock units (or at the Company’s election, a cash deferral credited to participants’ account balances). The Company’s matching obligations for participant deferrals made during each calendar year are subject to a financial performance condition for the Company's four fiscal quarters corresponding to such calendar year. In the case of the Company's matching obligations for participant deferrals made during calendar year 2024, the financial performance condition was fully satisfied, and the deferred stock units issued in respect of the Company's matching obligations vested accordingly. Participant deferrals under the plan are held in a rabbi trust and are subject to the claims of the Company’s creditors. Assets held by the rabbi trust are classified as trading securities and are recorded at fair value, with changes in value recorded as adjustments to other income. All deferrals or employer contributions under the plan, and all earnings thereon, are fully vested as and when made or credited to plan participants.

As of June 27, 2025, the Company held assets under the rabbi trust of $268, was subject to liabilities for amounts payable under the plan to participants (including accrued employer matching contributions not yet credited to plan participants) of $268. Assets related to this plan are included in Other assets, and liabilities related to this plan are included in Other long-term liabilities in the Consolidated Balance Sheets. During the fiscal year ended June 27, 2025, the Company recognized an immaterial value of compensation expense as a result of changes in the value of notional investments selected by plan

participants for the investment of their plan account balances, with the same amount being recorded as other income attributable to changes in the market value of the assets held by the rabbi trust.