POST-RETIREMENT BENEFITS

401(k) Plan

In the U.S., we sponsor a 401(k) plan that allows voluntary contributions by eligible employees, who may elect to contribute up to the maximum allowed under the U.S. Internal Revenue Service regulations. We generally make 100 percent matching contributions on the first 3 percent and 50 percent matching contributions on the following 2 percent (up to a maximum of $18,500 per eligible employee in calendar year 2018). We recorded related expenses of $0.5 million, $0.5 million and $0.4 million in fiscal years ended June 30, 2018, July 1, 2017 and July 2, 2016, respectively.

U.K. Defined Contribution Plan

We contribute to a U.K. based defined contribution pension scheme for employees. Contributions under this plan and the related expenses were $1.4 million, $1.1 million and $1.2 million in the fiscal years ended June 30, 2018, July 1, 2017 and July 2, 2016, respectively.

Japan Defined Contribution Plan

We contribute to a Japan based defined contribution plan that provides retirement benefits to our employees in Japan. Under the defined contribution plan, contributions are provided based on grade level and totaled $0.5 million, $0.5 million and $0.5 million for the fiscal years ended June 30, 2018, July 1, 2017 and July 2, 2016, respectively. Employees can elect to receive the benefit as additional salary or contribute the benefit to the plan on a tax-deferred basis.

Japan Defined Benefit Plan

We contribute to a Japan based defined benefit plan that provides retirement benefits to our employees in Japan. Under the defined benefit plan in Japan (the "Japan Plan"), we calculate benefits based on an employee’s individual grade level and years of service. Employees are entitled to a lump sum benefit upon retirement or upon certain instances of termination.

As of June 30, 2018, there were no Japan Plan assets. As of June 30, 2018, there was $0.3 million in accrued expenses and other liabilities and $6.9 million in other non-current liabilities in our consolidated balance sheet, to account for the projected benefit obligations under the Japan Plan.

The reconciliation of the actuarial present value of the projected benefit obligations for the defined benefit plan for the fiscal years ended June 30, 2018 and July 1, 2017 was as follows:



	June 30, 2018			July 1, 2017
	(Thousands)
Change in projected benefit obligation:
Projected benefit obligation, beginning of period	$	6,552		$	6,912
Service cost	637			624
Interest cost	19			4
Benefits paid	(85		)	(197		)
Actuarial (gain) loss on obligation	(57		)	(213		)
Currency translation adjustment	83			(578		)
Projected benefit obligation, end of period	$	7,149		$	6,552
Amounts recognized in consolidated balance sheets:
Accrued expenses and other liabilities:
Underfunded pension liability	$	264		$	117
Other non-current liabilities:
Underfunded pension liability	$	6,885		$	6,435
Amounts recognized in accumulated other comprehensive income, net of tax:
Pension actuarial loss	$	101		$	150
Accumulated benefit obligation, end of period	$	7,149		$	6,552

Net periodic pension cost associated with the Japan Plan in fiscal years ended June 30, 2018, July 1, 2017 and July 2, 2016 include the following components:



	June 30, 2018		July 1, 2017		July 2, 2016
	(Thousands)
Service cost	$	637	$	624	$	560
Interest cost	19		4		48
Net periodic pension cost	$	656	$	628	$	608

The projected and accumulated benefit obligations for the Japan Plan were calculated as June 30, 2018 and July 1, 2017 using the following assumptions:



	June 30, 2018		July 1, 2017
Discount rate	0.3	%	0.1	%
Salary increase rate	2.2	%	2.2	%
Expected average remaining working life (in years)	14.0		14.3

As of June 30, 2018, the accumulated benefit obligation was $7.1 million. Estimated future benefit payments under the Japan Plan are estimated to be $0.3 million in fiscal year 2019, $0.4 million in fiscal year 2020, $0.3 million in fiscal year 2021, $0.3 million in fiscal year 2022, $0.5 million in fiscal year 2023 and a total of $3.4 million for the following 5 years.