Employee Benefit Plans

12 Months Ended

Dec. 30, 2018

Retirement Benefits [Abstract]

Employee Benefit Plans

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. Savings plan expense was $13.6 million in fiscal year 2019, $13.2 million in fiscal year 2018, and $12.5 million in fiscal year 2017.

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 business 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 29, 2019			December 30, 2018			December 31, 2017
	(In thousands)
Service and administrative costs	$	6,598		$	6,853		$	4,951
Interest cost	16,546			16,146			16,707
Expected return on plan assets	(24,561		)	(28,939		)	(26,401		)
Actuarial loss (gain)	27,134			17,146			(7,085		)
Curtailment gain	(1,547		)	—			—
Amortization of prior service (credit) cost	(152		)	375			(195		)
Net periodic pension cost (credit)	$	24,018		$	11,581		$	(12,023	)

The Company recognizes actuarial gains and losses, unless an interim remeasurement is required, in the fourth quarter of the year in which the gains and losses occur, in accordance with the Company's accounting method for defined benefit pension plans and other postretirement benefits as described in Note 1, Nature of Operations and Accounting Policies. Such adjustments for gains and losses are primarily driven by events and circumstances beyond the Company's control, including changes in interest rates, the performance of the financial markets and mortality assumptions. Actuarial gains and losses, including other components of periodic pension cost, are recognized in the line item "Interest and other expense, net" in the consolidated statements of operations.

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 29, 2019 and December 30, 2018.

	December 29, 2019						December 30, 2018
	Non-U.S.			U.S.			Non-U.S.			U.S.
	(In thousands)
Actuarial present value of benefit obligations:
Accumulated benefit obligations	$	338,722		$	304,710		$	304,065		$	283,310
Change in benefit obligations:
Projected benefit obligations at beginning of year	$	311,168		$	283,310		$	343,410		$	308,713
Service and administrative costs	4,248			2,350			4,528			2,325
Interest cost	5,448			11,098			5,484			10,662
Benefits paid and plan expenses	(12,778		)	(21,162		)	(13,081		)	(19,709		)
Participants’ contributions	162			—			176			—
Business acquisitions	—			—			537			—
Plan amendments	—			—			533			—
Plan curtailments	(1,420		)	—			—			—
Actuarial loss (gain)	34,602			29,114			(13,141		)	(18,681		)
Effect of exchange rate changes	25			—			(17,278		)	—
Projected benefit obligations at end of year	$	341,455		$	304,710		$	311,168		$	283,310
Change in plan assets:
Fair value of plan assets at beginning of year	$	159,163		$	234,342		$	179,736		$	253,427
Actual return on plan assets	19,873			41,270			(5,653		)	(14,376		)
Benefits paid and plan expenses	(12,778		)	(21,162		)	(13,081		)	(19,709		)
Employer’s contributions	8,200			—			8,480			15,000
Participants’ contributions	162			—			176			—
Effect of exchange rate changes	5,240			—			(10,495		)	—
Fair value of plan assets at end of year	$	179,860		$	254,450		$	159,163		$	234,342
Net liabilities recognized in the consolidated balance sheets	$	(161,595	)	$	(50,260	)	$	(152,005	)	$	(48,968	)
Net amounts recognized in the consolidated balance sheets consist of:
Other assets	$	36,699		$	—		$	31,419		$	—
Current liabilities	(6,764		)	—			(6,752		)	—
Long-term liabilities	(191,530		)	(50,260		)	(176,672		)	(48,968		)
Net liabilities recognized in the consolidated balance sheets	$	(161,595	)	$	(50,260	)	$	(152,005	)	$	(48,968	)
Net amounts recognized in accumulated other comprehensive income consist of:
Prior service cost	$	—		$	—		$	(278	)	$	—
Actuarial assumptions as of the year-end measurement date:
Discount rate	1.34		%	3.01		%	2.07		%	4.05		%
Rate of compensation increase	3.36		%	None			3.48		%	None

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

	December 29, 2019				December 30, 2018				December 31, 2017
	Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.
Discount rate	2.07	%	4.05	%	1.99	%	3.56	%	2.06	%	4.06	%
Rate of compensation increase	3.48	%	None		3.50	%	None		3.64	%	None
Expected rate of return on assets	5.30	%	7.25	%	5.90	%	7.25	%	6.00	%	7.25	%

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 29, 2019		December 30, 2018
	(In thousands)
Pension Plans with Projected Benefit Obligations in Excess of Plan Assets
Projected benefit obligations	$	198,294	$	183,424
Fair value of plan assets	—		—
Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets
Accumulated benefit obligations	$	195,657	$	180,560
Fair value of plan assets	—		—

Assets of the defined benefit pension plans are primarily equity and debt securities. Asset allocations as of December 29, 2019 and December 30, 2018, and target asset allocations for fiscal year 2020 are as follows:

	Target Allocation				Percentage of Plan Assets at
	January 3, 2021				December 29, 2019				December 30, 2018
Asset Category	Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.
Equity securities	0-5%		40-60%		—	%	41	%	48	%	39	%
Debt securities	85-90%		40-60%		87	%	59	%	51	%	61	%
Other	10-15%		0-10%		13	%	—	%	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 rate of return 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 for certain plans, 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, and a bond matching approach for certain plans.

During fiscal year 2017, for the plans in the United States, the Society of Actuaries issued an updated projection scale, MP-2017, as of December 31, 2017. The adoption of MP-2017 resulted in a $2.6 million decrease to the projected benefit obligation at December 31, 2017. During fiscal year 2018, the Society of Actuaries issued an updated projection scale, MP-2018, which incorporated an additional year (2016) of U.S. population data and reduced the life expectancy used to determine the projected benefit obligation. The Company adopted MP-2018 as of December 30, 2018. The adoption of MP-2018 resulted in a $1.0 million decrease to the projected benefit obligation at December 30, 2018. During fiscal year 2019, the Society of Actuaries issued an updated projection scale, MP-2019, which incorporated an additional year (2017) of U.S. population data and reduced the life expectancy used to determine the projected benefit obligation. The Company adopted

MP-2019 as of December 29, 2019. The adoption of MP-2019 resulted in a $4.4 million decrease to the projected benefit obligation at December 29, 2019. The changes to the projected benefit obligations due to the adoption of the mortality base table and projection scale are included within "Actuarial loss (gain)" in the Change in Benefit Obligations for fiscal years 2019 and 2018 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 29, 2019 and December 30, 2018 by asset category, classified in the three levels of inputs described in Note 22 to the consolidated financial statements are as follows:

			Fair Value Measurements at December 29, 2019 Using:
	Total Carrying Value at December 29, 2019		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)
	(In thousands)
Cash	$	6,177	$	6,177	$	—	$	—
Equity securities:
U.S. large-cap	57,797		57,797		—		—
International large-cap value	26,914		26,914		—		—
U.S. small mid-cap	2,700		2,700		—		—
Emerging markets growth	12,853		12,853		—		—
Domestic real estate funds	2,010		2,010		—		—
Foreign real estate funds	22,688		—		—		22,688
Fixed income securities:
Non-U.S. treasury securities	93,473		—		93,473		—
Corporate and U.S. debt instruments	139,300		47,104		92,196		—
Corporate bonds	29,846		—		29,846		—
High yield bond funds	5,734		5,734		—		—
Other types of investments:
Multi-strategy hedge funds	1,721		—		—		1,721
Non-U.S. government index linked bonds	33,097		—		33,097		—
Total assets measured at fair value	$	434,310	$	161,289	$	248,612	$	24,409

			Fair Value Measurements at December 30, 2018 Using:
	Total Carrying Value at December 30, 2018		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)
	(In thousands)
Cash	$	6,326	$	6,326	$	—	$	—
Equity Securities:
U.S. large-cap	35,072		35,072		—		—
International large-cap value	24,175		24,175		—		—
U.S. small-cap	1,928		1,928		—		—
Emerging markets growth	11,993		11,993		—		—
Equity index funds	54,342		—		54,342		—
Domestic real estate funds	1,353		1,353		—		—
Foreign real estate funds	22,196		—		—		22,196
Commodity funds	886		886		—		—
Fixed income securities:
Non-U.S. Treasury Securities	23,352		—		23,352		—
Corporate and U.S. debt instruments	131,211		48,133		83,078		—
Corporate bonds	24,848		—		24,848		—
High yield bond funds	5,186		5,186		—		—
Other types of investments:
Multi-strategy hedge funds	16,934		—		—		16,934
Non-U.S. government index linked bonds	33,703		—		33,703		—
Total assets measured at fair value	$	393,505	$	135,052	$	219,323	$	39,130

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 29, 2019 compared to December 30, 2018. 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, foreign real estate 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 2019, 2018 and 2017 is as follows:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3):
		Foreign Real Estate Funds		Multi-strategy Hedge Funds			Total
	(In thousands)
Balance at January 1, 2017		$	—	$	23,790		$	23,790
Sales		—		(8,189		)	(8,189		)
Realized gains		—		1,542			1,542
Unrealized losses		—		(354		)	(354		)
Balance at December 31, 2017		—		16,789			16,789
Purchases		22,196		—			22,196
Unrealized gains		—		145			145
Balance at December 30, 2018		22,196		16,934			39,130
Sales		—		(15,586		)	(15,586		)
Realized gains		—		4,175			4,175
Unrealized gains (losses)		492		(3,802		)	(3,310		)
Balance at December 29, 2019		$	22,688	$	1,721		$	24,409

With respect to plans outside of the United States, the Company expects to contribute $6.6 million in the aggregate during fiscal year 2020. During fiscal years 2019, 2018 and 2017, the Company contributed $8.2 million, $8.5 million and $8.4 million in the aggregate, respectively, to pension plans outside of the United States. During fiscal year 2018, the Company contributed $15.0 million to its defined benefit pension plan in the United States for the plan year 2017.

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)
2020	$	11,540	$	19,200
2021	12,006		19,346
2022	12,083		19,449
2023	12,362		19,561
2024	13,119		19,539
2025-2029	66,950		94,159

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 29, 2019 and December 30, 2018, the projected benefit obligations were $25.7 million and $22.1 million, respectively. Assets with a fair value of $2.1 million and $1.8 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 29, 2019 and December 30, 2018, respectively. Pension expenses and income for this plan netted to expense of $4.8 million in fiscal year 2019, income of $0.3 million in fiscal year 2018 and expense of $3.2 million in fiscal year 2017.

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) cost included the following components for the fiscal years ended:

	December 29, 2019			December 30, 2018			December 31, 2017
	(In thousands)
Service cost	$	87		$	106		$	92
Interest cost	116			120			125
Expected return on plan assets	(1,175		)	(1,254		)	(1,114		)
Actuarial (gain) loss	(1,776		)	1,621			(741		)
Net periodic postretirement medical benefit (credit) cost	$	(2,748	)	$	593		$	(1,638	)

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 29, 2019 and December 30, 2018.

	December 29, 2019			December 30, 2018
	(In thousands)
Actuarial present value of benefit obligations:
Retirees	$	583		$	688
Active employees eligible to retire	362			408
Other active employees	1,966			2,317
Accumulated benefit obligations at beginning of year	2,911			3,413
Service cost	87			106
Interest cost	116			120
Benefits paid	(122		)	(117		)
Actuarial loss (gain)	108			(611		)
Change in accumulated benefit obligations during the year	189			(502		)
Retirees	611			583
Active employees eligible to retire	420			362
Other active employees	2,069			1,966
Accumulated benefit obligations at end of year	$	3,100		$	2,911
Change in plan assets:
Fair value of plan assets at beginning of year	$	16,279		$	17,374
Actual return on plan assets	2,937			(993		)
Benefits reimbursements paid	—			(102		)
Fair value of plan assets at end of year	$	19,216		$	16,279
Net assets recognized in the consolidated balance sheets	$	16,116		$	13,368
Net amounts recognized in the consolidated balance sheets consist of:
Other assets	$	16,116		$	13,368
Net amounts recognized in accumulated other comprehensive income consist of:
Prior service cost	$	—		$	—
Actuarial assumptions as of the year-end measurement date:
Discount rate	3.09		%	4.09		%

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

	December 29, 2019		December 30, 2018		December 31, 2017
Discount rate	4.09	%	3.60	%	4.11	%
Expected rate of return on assets	7.25	%	7.25	%	7.25	%

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 29, 2019 and December 30, 2018 by asset category, classified in the three levels of inputs described in Note 22, are as follows:

			Fair Value Measurements at December 29, 2019 Using:
	Total Carrying Value at December 29, 2019		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)
	(In thousands)
Cash	$	408	$	408	$	—	$	—
Equity securities:
U.S. large-cap	4,365		4,365		—		—
International large-cap value	2,033		2,033		—		—
U.S. small mid-cap	204		204		—		—
Emerging markets growth	971		971		—		—
Domestic real estate funds	152		152		—		—
Fixed income securities:
Corporate debt instruments	10,520		3,557		6,963		—
High yield bond funds	433		433		—		—
Other types of investments:
Multi-strategy hedge funds	130		—		—		130
Total assets measured at fair value	$	19,216	$	12,123	$	6,963	$	130

			Fair Value Measurements at December 30, 2018 Using:
	Total Carrying Value at December 30, 2018		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)
	(In thousands)
Cash	$	390	$	390	$	—	$	—
Equity securities:
U.S. large-cap	2,436		2,436		—		—
International large-cap value	1,679		1,679		—		—
U.S. small mid-cap	134		134		—		—
Emerging markets growth	833		833		—		—
Domestic real estate funds	94		94		—		—
Commodity funds	62		62		—		—
Fixed income securities:
Corporate debt instruments	9,115		3,344		5,771		—
High yield bond funds	360		360		—		—
Other types of investments:
Multi-strategy hedge funds	1,176		—		—		1,176
Total assets measured at fair value	$	16,279	$	9,332	$	5,771	$	1,176

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 2019, 2018 and 2017 is as follows:

	Fair Value  Measurements  Using Significant  Unobservable Inputs (Level 3):
	Multi-strategy Hedge Funds
	(In thousands)
Balance at January 1, 2017	$	1,508
Sales	(562		)
Realized gains	229
Unrealized losses	(24		)
Balance at December 31, 2017	1,151
Unrealized gains	25
Balance at December 30, 2018	1,176
Sales	(1,074		)
Realized gains	315
Unrealized losses	(287		)
Balance at December 29, 2019	$	130

The Company does not expect to make any contributions to the postretirement medical plan during fiscal year 2020.

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

Postretirement Medical Plan
	(In thousands)
2020	$	130
2021	146
2022	165
2023	177
2024	187
2025-2029	995

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 $1.1 million at each of December 29, 2019 and December 30, 2018.