Retirement Plans

12 Months Ended

Dec. 30, 2022

Retirement Benefits [Abstract]

Retirement Plans

9. RETIREMENT PLANS

Defined Benefit Plan

Cinos Korea has a noncontributory defined benefit pension plan covering substantially all of its employees upon their retirement. Ham-Let has a noncontributory defined benefit pension plans covering its employees in Israel upon their retirement. The benefits for these plans are based on expected years of service and average compensation. The net period costs are recognized as employees render the services necessary to earn the postretirement benefits. The Company records annual amounts relating to the pension plan based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return, compensation increases and turnover rates. The Company reviews its assumptions on an annual basis and makes modifications to the assumptions based on current and expected rates of return and trends when it is appropriate to do so. The effect of modifications to those assumptions is recorded in accumulated other comprehensive income and amortized to net periodic cost over future periods using the corridor method. The Company believes that the assumptions utilized in recording its obligations under the plans are reasonable based on its experience and market conditions.

As of December 30, 2022, the aggregate benefit obligation of the plans is $10.2 million and the total fair value of the benefit plan assets, which are invested in several fixed deposit accounts with financial institutions is $10.8 million, resulting in overfunded pension benefit obligations of $0.6 million. The amounts recognized in the Consolidated Statement of Operations for the years ended December 30, 2022 and December 31, 2021 was $2.0 million and $2.5 million, respectively. The amount recognized in accumulated other comprehensive income was $1.2 million for both year ended December 30, 2022 and December 31, 2021. The contributions to the plans by the Company and its subsidiaries during the years ended December 30, 2022 and December 31, 2021, was $3.0 million and $3.2 million, respectively.

As of December 30, 2022, the Company’s future payment obligations for the respective fiscal years are as follows:

(In millions)
2023	$	1.2
2024		1.3
2025		2.1
2026		1.0
2027		1.1
Thereafter		5.6
Total	$	12.3

Employee Savings and Retirement Plan

The Company sponsors a 401(k) savings and retirement plan (the “401(k) Plan”) for all U.S. employees who meet certain eligibility requirements. Participants could elect to contribute to the 401(k) Plan, on a pre-tax basis, up to 25.0% of their salary to a maximum of the IRS limit. The Company matches 50.0% of each employee's contribution up to a maximum of 6.0% of employee's eligible earnings. The Company made discretionary employer contributions of approximately $3.3 million, $2.7 million and $2.3 million to the 401(k) Plan in 2022, 2021 and 2020, respectively.