Defined Benefit Plans (Tables)

12 Months Ended

Oct. 03, 2020

Components of net periodic cost are as follows for fiscal 2020, 2019, and 2018 (in thousands):


	Fiscal
	2020		2019		2018
Service cost	$	2,153	$	1,955	$	2,262
Interest cost	857		1,308		1,230
Expected return on plan assets	(682)		(817)		(787)
Recognized net actuarial (gain) loss	(690)		470		240
Foreign exchange impacts	66		(79)		(56)
Recognition of curtailment gain due to plan freeze	—		—		(1,236)
Net periodic pension cost	$	1,704	$	2,837	$	1,653

Schedule of Changes in Projected Benefit Obligations

The changes in projected benefit obligations and plan assets, as well as the ending balance sheet amounts for our defined benefit plans, are as follows (in thousands):


	Fiscal 2020		Fiscal 2019
Change in benefit obligation:
Projected benefit obligation at beginning of year	$	60,437	$	51,499

Service cost	2,153		1,955
Interest cost	857		1,308
Assumption change	(1,783)		9,505
Experience (gain) loss	22		(308)
Foreign exchange rate impacts	2,433		(1,889)
Benefits paid – total	(3,010)		(1,633)
Settlement gain	(502)		—
Projected benefit obligation at end of year	$	60,607	$	60,437

Projected benefit obligation at end of year:
U.S. plans	$	18,775	$	18,892
Foreign plans	41,832		41,545
Projected benefit obligation at end of year	$	60,607	$	60,437

Change in plan assets:
Fair value of plan assets at beginning of year	$	12,997	$	12,486

Actual return on plan assets	1,218		539
Employer contributions	208		455
Benefits paid – funded plan	(1,522)		(483)
Fair value of plan assets at end of year	$	12,901	$	12,997


Fair value of plan assets at end of year:
U.S. plans	$	12,645	$	12,766
Foreign plans	256		231
Fair value of plan assets at end of year	12,901		12,997
Unfunded status at end of year	$	(47,706)	$	(47,440)

Amounts recognized in the consolidated balance sheet:
Accrued benefit liability – current	$	(1,896)	$	(1,578)
Accrued benefit liability – non current	(45,810)		(45,862)
Accumulated other comprehensive (gain) loss (pre-tax)	456		2,590

Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets

The information for plans with an accumulated benefit obligation in excess of plan assets is as follows (in thousands):


	Fiscal year-end
	2020		2019
Projected benefit obligation	$	60,607	$	60,437
Accumulated benefit obligation	56,847		55,941
Fair value of plan assets	12,901		12,997

Weighted average rates to determine the net periodic benefit costs

The weighted-average rates used to determine the net periodic benefit costs are as follows:


	Fiscal 2020		Fiscal 2019
Discount rate:
U.S.	2.3	%	3.0	%
Foreign	1.2	%	0.8	%
Expected return on plan assets:
U.S.	5.0	%	5.8	%
Rate of compensation increase
U.S.	—	%	—	%
Foreign	2.2	%	2.1	%

Schedule of Expected Benefit Payments

Expected benefit payments for each of the next five fiscal years and the five years aggregated thereafter is as follows (in thousands):


	Amount
2021	$	2,597
2022	3,009
2023	2,492
2024	2,863
2025	2,942
2026-2030	16,329
Total	$	30,232

Schedule of Allocation of Plan Assets

Our pension plan asset allocations at October 3, 2020 and September 28, 2019 by asset category are as follows:


	Allocation
	Target		Fiscal 2020		Fiscal 2019
Equity securities	30	%	32	%	33	%
Debt securities	70	%	68	%	67	%
Total plan assets	100	%	100	%	100	%

Fair value of pension plan assets

The fair values of our pension plan assets, by level within the fair value hierarchy, at October 3, 2020 are as follows:


Asset categories	Level 1		Level 2		Level 3		Total
Cash and cash equivalents:
Money market	$	469	$	—	$	—	$	469
Equity securities:
Small cap	—		50		—		50
Mid cap	—		143		—		143
Large cap	—		293		—		293
Total market stock	—		2,140		—		2,140
International	—		1,166		—		1,166
Emerging markets	—		197		—		197
Debt securities:
Bonds and mortgages	—		3,323		—		3,323
Inflation protected	—		—		—		—
High yield	—		272		—		272
Liability driven investments	—		4,848		—		4,848
Total plan assets	$	469	$	12,432	$	—	$	12,901

The fair values of our pension plan assets, by level within the fair value hierarchy, at September 28, 2019 are as follows:


Asset categories	Level 1		Level 2		Level 3		Total
Cash and cash equivalents:
Money market	$	503	$	—	$	—	$	503
Equity securities:
Small cap	—		135		—		135
Mid cap	—		250		—		250
Large cap	—		751		—		751
Total market stock	—		1,689		—		1,689
International	—		1,276		—		1,276
Emerging markets	—		204		—		204
Debt securities:
Bonds and mortgages	—		3,110		—		3,110
Inflation protected	—		634		—		634
High yield	—		634		—		634
Liability driven investments	—		$	3,811	—		3,811
Total plan assets	$	503	$	12,494	$	—	$	12,997