Employee Benefit Plans

Savings Plan: The Company has a 401(k) Savings Plan for the benefit of all qualified U.S. employees, with such employees receiving matching contributions in the amount equal to 100.0% of the first 5.0% of eligible compensation up to applicable Internal Revenue Service limits. Such matching contributions have been in effect since February 1, 2011 for all employees except former employees of Caliper, who received matching contributions of 50.0% of the first 5.0% of eligible compensation up to applicable Internal Revenue Service limits until December 31, 2012, and received matching contributions of 100.0% of the first 5.0% of eligible compensation up to applicable Internal Revenue Service limits after December 31, 2012. Savings plan expense was $12.2 million in fiscal year 2014, $12.8 million in fiscal year 2013 and $12.3 million in fiscal year 2012.

Pension Plans: The Company has a defined benefit pension plan covering certain U.S. employees and non-U.S. pension plans for certain non-U.S. employees. The principal U.S. defined benefit pension plan was closed to new hires effective January 31, 2001, and benefits for those employed by the Company’s former Life Sciences businesses were frozen as of that date. Plan benefits were frozen as of March 2003 for those employed by the Company’s former Analytical Instruments business and corporate employees. Plan benefits were frozen as of January 31, 2011 for all remaining employees that were still actively accruing in the plan. The plans provide benefits that are based on an employee’s years of service and compensation near retirement.

Net periodic pension cost (credit) for U.S. and non-U.S. plans included the following components for fiscal years ended:



	December 28, 2014			December 29, 2013			December 30, 2012
	(In thousands)
Service cost	$	4,070		$	3,664		$	3,852
Interest cost	23,475			21,334			23,164
Expected return on plan assets	(25,007		)	(25,106		)	(20,768		)
Actuarial loss (gain)	71,700			(16,464		)	28,355
Amortization of prior service cost	(281		)	(267		)	(242		)
Net periodic pension cost (credit)	$	73,957		$	(16,839	)	$	34,361

In the third quarter of fiscal year 2014, the Company notified employees of its intention to terminate their employment as part of the Q3 2014 restructuring plan. The removal of these participants may decrease the expected future service lives in excess of the curtailment limit for one of the Company's pension plans, which would result in a curtailment gain. If the curtailment occurs, the curtailment will be measured and recorded when the notified employees are separated from the Company. As part of a curtailment, the Company is required to remeasure the pension plan's assets and liabilities based upon current discount rates and the fair value of the pension plan's assets as of the curtailment date, which may result in an additional gain or (loss) in addition to the curtailment gain. Employee separation is expected to be completed during the first half of fiscal year 2015.

The following table sets forth the changes in the funded status of the principal U.S. pension plan and the principal non-U.S. pension plans and the amounts recognized in the Company’s consolidated balance sheets as of December 28, 2014 and December 29, 2013.



	December 28, 2014						December 29, 2013
	Non-U.S.			U.S.			Non-U.S.			U.S.
	(In thousands)
Actuarial present value of benefit obligations:
Accumulated benefit obligations	$	291,640		$	327,632		$	277,125		$	279,299
Change in benefit obligations:
Projected benefit obligations at beginning of year	$	288,216		$	279,299		$	278,707		$	301,770
Service cost	2,670			1,400			2,589			1,075
Interest cost	10,575			12,900			9,834			11,500
Benefits paid and plan expenses	(12,280		)	(19,282		)	(11,218		)	(17,817		)
Participants’ contributions	394			—			391			—
Plan settlement	—			—			(918		)	—
Actuarial loss (gain)	42,095			53,315			1,678			(17,229		)
Effect of exchange rate changes	(27,861		)	—			7,153			—
Projected benefit obligations at end of year	$	303,809		$	327,632		$	288,216		$	279,299
Change in plan assets:
Fair value of plan assets at beginning of year	$	143,704		$	249,756		$	114,515		$	221,755
Actual return on plan assets	22,939			25,780			17,201			8,818
Benefits paid and plan expenses	(12,280		)	(19,282		)	(11,218		)	(17,817		)
Employer’s contributions	11,195			—			20,200			37,000
Participants’ contributions	394			—			391			—
Plan settlement	—			—			(918		)	—
Effect of exchange rate changes	(9,185		)	—			3,533			—
Fair value of plan assets at end of year	156,767			256,254			143,704			249,756
Net liabilities recognized in the consolidated balance sheets	$	(147,042	)	$	(71,378	)	$	(144,512	)	$	(29,543	)
Net amounts recognized in the consolidated balance sheets consist of:
Noncurrent assets	$	9,825		$	—		$	6,879		$	—
Current liabilities	(6,786		)	—			(7,360		)	—
Noncurrent liabilities	(150,081		)	(71,378		)	(144,031		)	(29,543		)
Net liabilities recognized in the consolidated balance sheets	$	(147,042	)	$	(71,378	)	$	(144,512	)	$	(29,543	)
Net amounts recognized in accumulated other comprehensive income consist of:
Prior service cost	$	(1,371	)	$	—		$	(1,745	)	$	—
Net amounts recognized in accumulated other comprehensive income	$	(1,371	)	$	—		$	(1,745	)	$	—
Actuarial assumptions as of the year-end measurement date:
Discount rate	2.75		%	4.08		%	3.77		%	4.77		%
Rate of compensation increase	3.07		%	None			3.23		%	None

Actuarial assumptions used to determine net periodic pension cost during the year were as follows:



	December 28, 2014				December 29, 2013				December 30, 2012
	Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.
Discount rate	3.77	%	4.77	%	3.62	%	3.92	%	4.91	%	4.10	%
Rate of compensation increase	3.23	%	None		2.88	%	None		3.22	%	3.50	%
Expected rate of return on assets	5.30	%	7.25	%	5.50	%	7.50	%	5.40	%	7.75	%

The following table provides a breakdown of the non-U.S. benefit obligations and fair value of assets for pension plans that have benefit obligations in excess of plan assets:



	December 28, 2014		December 29, 2013
	(In thousands)
Pension Plans with Projected Benefit Obligations in Excess of Plan Assets
Projected benefit obligations	$	156,867	$	151,391
Fair value of plan assets	—		—

Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets
Accumulated benefit obligations	$	153,239	$	148,235
Fair value of plan assets	—		—

Assets of the defined benefit pension plans are primarily equity and debt securities. Asset allocations as of December 28, 2014 and December 29, 2013, and target asset allocations for fiscal year 2015 are as follows:



	Target Allocation				Percentage of Plan Assets at
	January 3, 2016				December 28, 2014				December 29, 2013
Asset Category	Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.
Equity securities	45-55%		40-50%		49	%	39	%	51	%	43	%
Debt securities	45-55%		50-60%		50	%	61	%	48	%	57	%
Other	0-5%		0-5%		1	%	—	%	1	%	—	%
Total	100	%	100	%	100	%	100	%	100	%	100	%

The Company maintains target allocation percentages among various asset classes based on investment policies established for the pension plans which are designed to maximize the total rate of return (income and appreciation) after inflation within the limits of prudent risk taking, while providing for adequate near-term liquidity for benefit payments.

The Company’s expected returns on assets assumptions are derived from management’s estimates, as well as other information compiled by management, including studies that utilize customary procedures and techniques. The studies include a review of anticipated future long-term performance of individual asset classes and consideration of the appropriate asset allocation strategy given the anticipated requirements of the plans to determine the average rate of earnings expected on the funds invested to provide for the pension plans benefits. While the study gives appropriate consideration to recent fund performance and historical returns, the assumption is primarily a long-term, prospective rate.

The Company's discount rate assumptions are derived from a range of factors, including a yield curve composed of the rates of return on high-quality fixed-income corporate bonds available at the measurement date and the related expected duration for the obligations.

For the plans in the United States, as of December 28, 2014 the Company adopted the new mortality base table, RP-2014, with projection scale, MP-2014, that was published by the Society of Actuaries in 2014. The adoption of the new mortality base table resulted in a $32.1 million increase to the projected benefit obligation at December 28, 2014 and is included within "Actuarial loss (gain)" in the Change in Benefit Obligation for fiscal year 2014 above.

The target allocations for plan assets are listed in the above table. Equity securities primarily include investments in large-cap and mid-cap companies located in the United States and abroad, and equity index funds. Debt securities include corporate bonds of companies from diversified industries, high-yield bonds, and U.S. government securities. Other types of investments include investments in non-U.S. government index linked bonds, multi-strategy hedge funds and venture capital funds that follow several different strategies.

The fair values of the Company’s pension plan assets as of December 28, 2014 and December 29, 2013 by asset category, classified in the three levels of inputs described in Note 21 to the consolidated financial statements are as follows:



			Fair Value Measurements at December 28, 2014 Using:
	Total Carrying Value at December 28, 2014		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Cash	$	4,971	$	4,971	$	—	$	—
Equity Securities:
U.S. large-cap	28,602		28,602		—		—
International large-cap value	25,202		25,202		—		—
Emerging markets growth	13,010		13,010		—		—
Equity index funds	77,432		—		77,432		—
Domestic real estate funds	2,860		2,860		—		—
Commodity funds	7,423		7,423		—		—
Fixed income securities:
Non-U.S. Treasury Securities	22,025		—		22,025		—
Corporate and U.S. debt instruments	147,834		53,813		94,021		—
Corporate bonds	25,164		—		25,164		—
High yield bond funds	3,614		3,614		—		—
Other types of investments:
Multi-strategy hedge funds	23,332		—		—		23,332
Venture capital funds	1		—		—		1
Non-U.S. government index linked bonds	31,551		—		31,551		—
Total assets measured at fair value	$	413,021	$	139,495	$	250,193	$	23,333



			Fair Value Measurements at December 29, 2013 Using:
	Total Carrying Value at December 29, 2013		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Cash	$	4,458	$	4,458	$	—	$	—
Equity Securities:
U.S. large-cap	34,127		34,127		—		—
International large-cap value	27,595		27,595		—		—
Emerging markets growth	12,517		12,517		—		—
Equity index funds	73,796		—		73,796		—
Domestic real estate funds	2,471		2,471		—		—
Commodity funds	8,179		8,179		—		—
Fixed income securities:
Non-U.S. Treasury Securities	18,344		—		18,344		—
Corporate and U.S. debt instruments	132,828		45,215		87,613		—
Corporate bonds	22,619		—		22,619		—
High yield bond funds	6,170		6,170		—		—
Other types of investments:
Multi-strategy hedge funds	22,689		—		—		22,689
Venture capital funds	8		—		—		8
Non-U.S. government index linked bonds	27,659		—		27,659		—
Total assets measured at fair value	$	393,460	$	140,732	$	230,031	$	22,697

Valuation Techniques: Valuation techniques utilized need to maximize the use of observable inputs and minimize the use of unobservable inputs. There have been no changes in the methodologies utilized at December 28, 2014 compared to December 29, 2013. The following is a description of the valuation techniques utilized to measure the fair value of the assets shown in the table above.

Equity Securities: Shares of registered investment companies that are publicly traded are categorized as Level 1 assets; they are valued at quoted market prices that represent the net asset value of the fund. These instruments have active markets.

Equity index funds are mutual funds that are not publicly traded and are comprised primarily of underlying equity securities that are publicly traded on exchanges. Price quotes for the assets held by these funds are readily observable and available. Equity index funds are categorized as Level 2 assets.

Fixed Income Securities: Fixed income mutual funds that are publicly traded are valued at quoted market prices that represent the net asset value of securities held by the fund and are categorized as Level 1 assets.

Fixed income index funds that are not publicly traded are stated at net asset value as determined by the issuer of the fund based on the fair value of the underlying investments and are categorized as Level 2 assets.

Individual fixed income bonds are categorized as Level 2 assets except where sufficient quoted prices exist in active markets, in which case such securities are categorized as Level 1 assets. These securities are valued using third-party pricing services. These services may use, for example, model-based pricing methods that utilize observable market data as inputs. Broker dealer bids or quotes of securities with similar characteristics may also be used.

Other Types of Investments: Non-U.S. government index link bond funds are not publicly traded and are stated at net asset value as determined by the issuer of the fund based on the fair value of the underlying investments. Underlying investments consist of bonds in which payment of income on the principal is related to a specific price index and are categorized as Level 2 assets.

Hedge funds, private equity funds and venture capital funds are valued at fair value by using the net asset values provided by the investment managers and are updated, if necessary, using analytical procedures, appraisals, public market data and/or inquiry of the investment managers. The net asset values are determined based upon the fair values of the underlying investments in the funds. These other investments invest primarily in readily available marketable securities and allocate gains, losses, and expense to the investor based on the ownership percentage as described in the fund agreements. They are categorized as Level 3 assets.

The Company's policy is to recognize significant transfers between levels at the actual date of the event.

A reconciliation of the beginning and ending Level 3 assets for fiscal years 2014, 2013, and 2012 is as follows:



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3):
	Common Collective Trusts/Private Funds			Venture Capital Funds			Multi-strategy Hedge Funds		Total
	(In thousands)
Balance at January 1, 2012	$	—		$	7		$	19,285	$	19,292
Realized losses	1,162			—			—		1,162
Unrealized gains	19			—			977		996
Purchases	9,448			—			—		9,448
Issuances, Sales and Settlements	(10,467		)	—			—		(10,467		)
Balance at December 30, 2012	162			7			20,262		20,431
Realized gains	7			—			—		7
Unrealized (losses) gains	(19		)	1			2,427		2,409
Issuances, Sales and Settlements	(150		)	—			—		(150		)
Balance at December 29, 2013	—			8			22,689		22,697
Realized gains	—			—			—		—
Unrealized (losses) gains	—			(7		)	643		636
Purchases	—			—			—		—
Issuances, Sales and Settlements	—			—			—		—
Balance at December 28, 2014	$	—		$	1		$	23,332	$	23,333

The Company expects to contribute $20.0 million, in the aggregate, during the first quarter of fiscal year 2015, for the 2014 plan year to one of its plans within the United States. With respect to plans outside of the United States, the Company expects to contribute $10.2 million in the aggregate during fiscal year 2015. During fiscal year 2014, the Company made contributions of $11.2 million, in the aggregate, to plans outside of the United States. During fiscal year 2013, the Company made contributions of $37.0 million for the 2012 plan year to its defined benefit pension plan in the United States. During fiscal year 2013, the Company contributed $20.2 million, in the aggregate, to plans outside of the United States, which includes an additional contribution of $10.0 million to its defined benefit pension plan in the United Kingdom. During fiscal year 2012, the Company contributed $17.0 million for the 2011 plan year to its defined benefit pension plans in the United States, and $10.9 million in the aggregate to its defined benefit pension plans outside of the United States.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows:



	Non-U.S.		U.S.
	(In thousands)
2015	$	11,320	$	18,169
2016	11,832		18,268
2017	12,028		18,363
2018	12,475		18,657
2019	13,067		18,857
2020-2024	70,926		97,713

The Company also sponsors a supplemental executive retirement plan to provide senior management with benefits in excess of normal pension benefits. Effective July 31, 2000, this plan was closed to new entrants. At December 28, 2014 and December 29, 2013, the projected benefit obligations were $24.5 million and $21.1 million, respectively. Assets with a fair value of $0.5 million and $0.3 million, segregated in a trust (which is included in marketable securities and investments on the consolidated balance sheets), were available to meet this obligation as of December 28, 2014 and December 29, 2013, respectively. Pension income and expenses for this plan netted to an expense of $4.8 million in fiscal year 2014, income of $0.4 million in fiscal year 2013 and an expense of $2.5 million in fiscal year 2012.

Postretirement Medical Plans: The Company provides healthcare benefits for eligible retired U.S. employees under a comprehensive major medical plan or under health maintenance organizations where available. Eligible U.S. employees qualify for retiree health benefits if they retire directly from the Company and have at least ten years of service. Generally, the major medical plan pays stated percentages of covered expenses after a deductible is met and takes into consideration payments by other group coverage and by Medicare. The plan requires retiree contributions under most circumstances and has provisions for cost-sharing charges. Effective January 1, 2000, this plan was closed to new hires. For employees retiring after 1991, the Company has capped its medical premium contribution based on employees’ years of service. The Company funds the amount allowable under a 401(h) provision in the Company’s defined benefit pension plan. Assets of the plan are primarily equity and debt securities and are available only to pay retiree health benefits.

Net periodic postretirement medical benefit credit included the following components for the fiscal years ended:



	December 28, 2014			December 29, 2013			December 30, 2012
	(In thousands)
Service cost	$	95		$	106		$	106
Interest cost	155			135			144
Expected return on plan assets	(964		)	(965		)	(877		)
Actuarial gain	(384		)	(182		)	(929		)
Net periodic postretirement medical benefit credit	$	(1,098	)	$	(906	)	$	(1,556	)

The following table sets forth the changes in the postretirement medical plan’s funded status and the amounts recognized in the Company’s consolidated balance sheets as of December 28, 2014 and December 29, 2013.



	December 28, 2014			December 29, 2013
	(In thousands)
Actuarial present value of benefit obligations:
Retirees	$	1,159		$	1,331
Active employees eligible to retire	388			470
Other active employees	1,795			2,009
Accumulated benefit obligations at beginning of year	3,342			3,810
Service cost	95			106
Interest cost	155			135
Benefits paid	(157		)	(189		)
Actuarial loss (gain)	141			(520		)
Change in accumulated benefit obligations during the year	234			(468		)
Retirees	1,033			1,159
Active employees eligible to retire	424			388
Other active employees	2,119			1,795
Accumulated benefit obligations at end of year	3,576			3,342
Change in plan assets:
Fair value of plan assets at beginning of year	13,396			12,958
Actual return on plan assets	1,332			438
Fair value of plan assets at end of year	14,728			13,396
Net assets recognized in the consolidated balance sheets	$	11,152		$	10,054
Net amounts recognized in the consolidated balance sheets consist of:
Noncurrent assets	$	11,152		$	10,054
Net assets recognized in the consolidated balance sheets	$	11,152		$	10,054
Net amounts recognized in accumulated other comprehensive income consist of:
Prior service cost	$	—		$	—
Net amounts recognized in accumulated other comprehensive income	$	—		$	—
Actuarial assumptions as of the year-end measurement date:
Discount rate	4.10		%	4.77		%

Actuarial assumptions used to determine net cost during the year are as follows:



	December 28, 2014		December 29, 2013		December 30, 2012
Discount rate	4.77	%	3.86	%	4.00	%
Expected rate of return on assets	7.25	%	7.50	%	7.75	%

The Company maintains a master trust for plan assets related to the U.S. defined benefit plans and the U.S. postretirement medical plan. Accordingly, investment policies, target asset allocations and actual asset allocations are the same as those disclosed for the U.S. defined benefit plans.

The fair values of the Company’s plan assets at December 28, 2014 and December 29, 2013 by asset category, classified in the three levels of inputs described in Note 21, are as follows:



			Fair Value Measurements at December 28, 2014 Using:
	Total Carrying Value at December 28, 2014		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Cash	$	248	$	248	$	—	$	—
Equity Securities:
U.S. large-cap	1,644		1,644		—		—
International large-cap value	1,449		1,449		—		—
Emerging markets growth	748		748		—		—
Domestic real estate funds	164		164		—		—
Commodity funds	427		427		—		—
Fixed income securities:
Corporate debt instruments	8,499		3,094		5,405		—
High yield bond funds	208		208		—		—
Other types of investments:
Multi-strategy hedge funds	1,341		—		—		1,341
Total assets measured at fair value	$	14,728	$	7,982	$	5,405	$	1,341



			Fair Value Measurements at December 29, 2013 Using:
	Total Carrying Value at December 29, 2013		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Cash	$	167	$	167	$	—	$	—
Equity Securities:
U.S large-cap	1,831		1,831		—		—
International large-cap value	1,480		1,480		—		—
Emerging markets growth	672		672		—		—
Domestic real estate funds	133		133		—		—
Commodity funds	439		439		—		—
Fixed income securities:
Corporate debt instruments	7,126		2,426		4,700		—
High yield bond funds	331		331		—		—
Other types of investments:
Multi-strategy hedge funds	1,217		—		—		1,217
Total assets measured at fair value	$	13,396	$	7,479	$	4,700	$	1,217

Valuation Techniques: Valuation techniques are the same as those disclosed for the U.S. defined benefit plans above.

A reconciliation of the beginning and ending Level 3 assets for fiscal years 2014, 2013, and 2012 is as follows:



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3):
	Common Collective Trusts/Private Funds			Venture Capital Funds			Multi-strategy Hedge Funds		Total
	(In thousands)
Balance at January 1, 2012	$	—		$	1		$	1,129	$	1,130
Realized gains	68			—			—		68
Unrealized gains	1			—			55		56
Purchases	552			—			—		552
Issuances, Sales and Settlements	(612		)	—			—		(612		)
Balance at December 30, 2012	9			1			1,184		1,194
Realized gains	—			—			—		—
Unrealized (losses) gains	(1		)	(1		)	33		31
Purchases	—			—			—		—
Issuances, Sales and Settlements	(8		)	—			—		(8		)
Balance at December 29, 2013	—			—			1,217		1,217
Realized gains	—			—			—		—
Unrealized gains	—			—			124		124
Purchases	—			—			—		—
Issuances, Sales and Settlements	—			—			—		—
Balance at December 28, 2014	$	—		$	—		$	1,341	$	1,341

The Company does not expect to make any contributions to the postretirement medical plan during fiscal year 2015.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows:



Postretirement Medical Plan
	(In thousands)
2015	$	167
2016	174
2017	182
2018	192
2019	200
2020-2024	1,159

Deferred Compensation Plans: During fiscal year 1998, the Company implemented a nonqualified deferred compensation plan that provides benefits payable to officers and certain key employees or their designated beneficiaries at specified future dates, or upon retirement or death. The plan was amended to eliminate deferral elections, with the exception of Company 401(k) excess contributions for eligible participants, for plan years beginning January 1, 2011. Benefit payments under the plan are funded by contributions from participants, and for certain participants, contributions by the Company. The obligations related to the deferred compensation plan totaled $1.0 million for both December 28, 2014 and December 29, 2013.