Employee Retirement Plans (Tables)

12 Months Ended

Jul. 02, 2022

Schedule of changes in the benefit obligations and plan assets of the pension and benefits plans

The change in the benefit obligations of pension plans in Japan, Switzerland, and Thailand, and the change in plan assets in Switzerland were as follows (in millions):



	July 2, 2022		July 3, 2021
Change in projected benefit obligation:
Benefit obligation at beginning of year	$	20.6	$	20.9

Service cost	1.8		2.0
Interest cost	0.1		0.1
Plan participants’ contributions	0.5		0.5
Actuarial gains (1)	(3.9)		(1.2)
Benefits paid	(0.2)		(1.7)

Plan amendments	(0.2)		—
Foreign exchange impact	(1.2)		—
Benefit obligation at end of year	$	17.5	$	20.6

Change in plan assets:
Fair value of plan assets at beginning of year	$	9.8	$	9.1
Actual return on plan assets	(0.2)		1.2
Employer contribution	0.6		0.5
Plan participants’ contribution	0.5		0.5
Benefits paid	(0.2)		(1.5)
Foreign exchange impact	(0.7)		—
Fair value of plan assets at end of year	$	9.8	$	9.8

Funded status (2)	$	(7.7)	$	(10.8)

Changes in benefit obligations and plan assets recognized in other comprehensive income:
Prior service cost	$	(0.1)	$	0.1
Amortization of accumulated net actuarial loss	(0.1)		(0.4)
Net actuarial gain	(3.6)		(2.2)
Loss recognized due to settlement	—		(0.3)
	$	(3.8)	$	(2.8)

Accumulated benefit obligation	$	14.0	$	16.5

(1) Actuarial gains are primarily driven by changes in discount rates.

(2) As of July 2, 2022 and July 3, 2021, $7.7 million and $10.8 million were recorded in other non-current liabilities on our consolidated balance sheets, respectively, to account for the PBO. Please refer to “Note 8. Balance Sheet Details”.

Schedule of net periodic pension cost

Net periodic pension costs in Japan, Switzerland and Thailand include the following components for the periods presented (in millions):


	Years Ended
	July 2, 2022		July 3, 2021		June 27, 2020
Service cost	$	1.8	$	2.0	$	3.5
Interest cost	0.1		0.1		0.2
Amortization of prior service cost	(0.1)		(0.1)		—
Expected return on plan assets	(0.2)		(0.3)		(0.3)

Amortization of net loss	0.2		0.3		0.3
Settlement losses	—		0.3		—
Net periodic pension cost	$	1.8	$	2.3	$	3.7

Schedule of assumptions used to determine net periodic cost and benefit obligation

The following table summarizes the weighted-average assumptions used to determine net periodic cost and benefit obligation for our defined benefit plans in Japan, Switzerland and Thailand:


	Years Ended
	July 2, 2022		July 3, 2021
Assumptions used to determine net periodic cost:
Discount rate	1.1	%	0.6	%
Expected long-term return on plan assets	2.0	%	2.7	%
Salary increase rate	3.7	%	3.4	%
Assumptions used to determine benefit obligation at end of year:
Discount rate	1.9	%	0.7	%
Salary increase rate	3.1	%	2.9	%

Schedule of percentage of asset allocations and plan's assets at fair value

The following table sets forth the plan assets of our defined benefit plan in Switzerland at fair value and the percentage of assets allocations as of July 2, 2022 and July 3, 2021 (in millions, except percentage data):


							Fair Value Measurement as of July 2, 2022
	Target Allocation		Total		Percentage of Plan Asset		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Assets:
Global equity	33	%	$	3.2	33	%	$	—	$	3.2
Fixed income	32	%	3.1		30	%	—		3.1
Alternative investment	12	%	1.2		13	%	—		1.2
Cash	1	%	0.1		1	%	0.1		—
Other assets	22	%	2.2		23	%	—		2.2
Total Assets	100	%	$	9.8	100	%	$	0.1	$	9.7


							Fair Value Measurement as of July 3, 2021
	Target Allocation		Total		Percentage of Plan Asset		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Assets:
Global equity	31	%	$	3.0	30	%	$	—	$	3.0
Fixed income	31	%	3.0		29	%	—		3.0
Alternative investment	15	%	1.5		18	%	—		1.5
Cash	1	%	0.1		1	%	0.1		—
Other assets	22	%	2.2		22	%	—		2.2
Total Assets	100	%	$	9.8	100	%	$	0.1	$	9.7

Schedule of defined benefit plans disclosures

The following benefit payments are estimated to be paid from our defined benefit pension plans (in millions):


Fiscal Years	Total
2023	$	1.5
2024	0.8
2025	1.2
2026	1.0
2027	1.1
Next five years	8.8
Total expected benefit payments	14.4