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Employee Benefit Plans
 12 Months Ended
Jan. 03, 2021
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 $14.1 million in fiscal year 2020, $13.6 million in fiscal year 2019, and $13.2 million in fiscal year 2018.

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 for U.S. and non-U.S. plans included the following components for fiscal years ended:
 
January 3,
2021		December 29,
2019		December 30,
2018
(In thousands)
Service and administrative costs$7,414 $6,598 $6,853 
Interest cost12,876 16,546 16,146 
Expected return on plan assets(21,786)(24,561)(28,939)
Actuarial loss20,291 27,134 17,146 
Curtailment gain— (1,547)— 
Amortization of prior service (credit) cost— (152)375 
Net periodic pension cost$18,795 $24,018 $11,581 
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 January 3, 2021 and December 29, 2019.
 
 January 3, 2021December 29, 2019
Non-U.S.U.S.Non-U.S.U.S.
(In thousands)
Actuarial present value of benefit obligations:
Accumulated benefit obligations$392,948 $317,679 $338,722 $304,710 
Change in benefit obligations:
Projected benefit obligations at beginning of year$341,455 $304,710 $311,168 $283,310 
Service and administrative costs5,314 2,100 4,248 2,350 
Interest cost3,991 8,885 5,448 11,098 
Benefits paid and plan expenses(15,823)(20,510)(12,778)(21,162)
Participants’ contributions37 — 162 — 
Business acquisitions(120)— — — 
Plan curtailments— — (1,420)— 
Actuarial loss35,910 22,494 34,602 29,114 
Effect of exchange rate changes24,575 — 25 — 
Projected benefit obligations at end of year$395,339 $317,679 $341,455 $304,710 
Change in plan assets:
Fair value of plan assets at beginning of year$179,860 $254,450 $159,163 $234,342 
Actual return on plan assets25,153 34,746 19,873 41,270 
Benefits paid and plan expenses(15,823)(20,510)(12,778)(21,162)
Employer’s contributions7,506 — 8,200 — 
Participants’ contributions37 — 162 — 
Effect of exchange rate changes8,011 — 5,240 — 
Fair value of plan assets at end of year$204,744 $268,686 $179,860 $254,450 
Net liabilities recognized in the consolidated balance sheets$(190,595)$(48,993)$(161,595)$(50,260)
Net amounts recognized in the consolidated balance sheets consist of:
Other assets$36,295 $— $36,699 $— 
Current liabilities(7,597)— (6,764)— 
Long-term liabilities(219,293)(48,993)(191,530)(50,260)
Net liabilities recognized in the consolidated balance sheets$(190,595)$(48,993)$(161,595)$(50,260)
Net amounts recognized in accumulated other comprehensive income consist of:
Prior service cost$— $— $— $— 
Actuarial assumptions as of the year-end measurement date:
Discount rate0.92 %2.21 %1.34 %3.01 %
Rate of compensation increase2.78 %None3.36 %None
Actuarial assumptions used to determine net periodic pension cost during the year were as follows:
January 3, 2021December 29, 2019December 30, 2018
Non-U.S.U.S.Non-U.S.U.S.Non-U.S.U.S.
Discount rate1.34 %3.01 %2.07 %4.05 %1.99 %3.56 %
Rate of compensation increase3.36 %None3.48 %None3.50 %None
Expected rate of return on assets2.20 %7.25 %5.30 %7.25 %5.90 %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:
January 3,
2021		December 29,
2019
(In thousands)
Pension Plans with Projected Benefit Obligations in Excess of Plan Assets
Projected benefit obligations$226,890 $198,294 
Fair value of plan assets— — 
Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets
Accumulated benefit obligations$224,499 $195,657 
Fair value of plan assets— — 
 
Assets of the defined benefit pension plans are primarily equity and debt securities. Asset allocations as of January 3, 2021 and December 29, 2019, and target asset allocations for fiscal year 2021 are as follows:

 Target AllocationPercentage of Plan Assets at
January 2, 2022January 3, 2021December 29, 2019
Asset CategoryNon-U.S.U.S.Non-U.S.U.S.Non-U.S.U.S.
Equity securities0-5%40-60%— %45 %— %41 %
Debt securities85-90%40-60%88 %55 %87 %59 %
Other10-15%0-10%12 %— %13 %— %
Total100 %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 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. During fiscal
year 2020, the Society of Actuaries issued an updated projection scale, MP-2020, which incorporated an additional year (2018) of U.S. population data and made a few adjustments to the long-term rate of mortality improvement assumed. The Company adopted MP-2020 as of January 3, 2021. The adoption of MP-2020 resulted in a $2.7 million decrease to the projected benefit obligation at January 3, 2021. 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 2020 and 2019 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 January 3, 2021 and December 29, 2019 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 January 3, 2021 Using:
Total Carrying
Value at
January 3, 2021		Quoted Prices in
Active Markets
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable 
Inputs
(Level 3)
(In thousands)
Cash$6,363 $6,363 $— $— 
Equity securities:
U.S. large-cap78,234 78,234 — — 
International large-cap value28,315 28,315 — — 
Emerging markets growth13,594 13,594 — — 
Foreign real estate funds23,259 — — 23,259 
Fixed income securities:
Non-U.S. treasury securities106,315 — 106,315 — 
Corporate and U.S. debt instruments140,349 43,500 96,849 — 
Corporate bonds35,816 — 35,816 — 
High yield bond funds2,954 2,954 — — 
Other types of investments:
Non-U.S. government index linked bonds38,231 — 38,231 — 
Total assets measured at fair value$473,430 $172,960 $277,211 $23,259 
 
 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-cap57,797 57,797 — — 
International large-cap value26,914 26,914 — — 
U.S. small mid-cap2,700 2,700 — — 
Emerging markets growth12,853 12,853 — — 
Domestic real estate funds2,010 2,010 — — 
Foreign real estate funds22,688 — — 22,688 
Fixed income securities:
Non-U.S. Treasury Securities93,473 — 93,473 — 
Corporate and U.S. debt instruments139,300 47,104 92,196 — 
Corporate bonds29,846 — 29,846 — 
High yield bond funds5,734 5,734 — — 
Other types of investments:
Multi-strategy hedge funds1,721 — — 1,721 
Non-U.S. government index linked bonds33,097 — 33,097 — 
Total assets measured at fair value$434,310 $161,289 $248,612 $24,409 

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 January 3, 2021 compared to December 29, 2019. 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 2020, 2019 and 2018 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 December 31, 2017$— $16,789 $16,789 
Unrealized gains— 145 145 
Purchases22,196 — 22,196 
Balance at December 30, 201822,196 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, 201922,688 1,721 24,409 
Sales— (1,721)(1,721)
Unrealized gains571 — 571 
Balance at January 3, 2021$23,259 $— $23,259 
 
With respect to plans outside of the United States, the Company expects to contribute $7.6 million in the aggregate during fiscal year 2021. During fiscal years 2020, 2019 and 2018, the Company contributed $7.5 million, $8.2 million and $8.5 million in the aggregate, respectively, to pension plans outside of the United States. During fiscal year 2021, the Company contributed $20.0 million to its defined benefit pension plan in the United States for the plan year 2019.
 
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)
2021$12,932 $19,373 
202212,960 19,435 
202313,349 19,504 
202414,152 19,495 
202514,206 19,390 
2026-203072,747 92,258 
 
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 January 3, 2021 and December 29, 2019, the projected benefit obligations were $25.9 million and $25.7 million, respectively. Assets with a fair value of $1.9 million and $2.1 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 January 3, 2021 and December 29, 2019, respectively. Pension expenses and income for this plan netted to expense of $2.1 million in fiscal year 2020, expense of $4.8 million in fiscal year 2019 and income of $0.3 million in fiscal year 2018.
 
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:
 
January 3,
2021		December 29,
2019		December 30,
2018
(In thousands)
Service cost$73 $87 $106 
Interest cost94 116 120 
Expected return on plan assets(1,389)(1,175)(1,254)
Actuarial (gain) loss(1,647)(1,776)1,621 
Net periodic postretirement medical benefit (credit) cost$(2,869)$(2,748)$593 

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 January 3, 2021 and December 29, 2019.
 
January 3,
2021		December 29,
2019
(In thousands)
Actuarial present value of benefit obligations:
Retirees$611 $583 
Active employees eligible to retire420 362 
Other active employees2,069 1,966 
Accumulated benefit obligations at beginning of year3,100 2,911 
Service cost73 87 
Interest cost94 116 
Benefits paid(101)(122)
Actuarial (gain) loss(179)108 
Change in accumulated benefit obligations during the year(113)189 
Retirees545 611 
Active employees eligible to retire1,232 420 
Other active employees1,211 2,069 
Accumulated benefit obligations at end of year$2,988 $3,100 
Change in plan assets:
Fair value of plan assets at beginning of year$19,216 $16,279 
Actual return on plan assets2,756 2,937 
Fair value of plan assets at end of year$21,972 $19,216 
Net assets recognized in the consolidated balance sheets$18,984 $16,116 
Net amounts recognized in the consolidated balance sheets consist of:
Other assets$18,984 $16,116 
Net amounts recognized in accumulated other comprehensive income consist of:
Prior service cost$— $— 
Actuarial assumptions as of the year-end measurement date:
Discount rate2.34 %3.09 %
Actuarial assumptions used to determine net cost during the year are as follows:
January 3,
2021		December 29,
2019		December 30,
2018
Discount rate3.09 %4.09 %3.60 %
Expected rate of return on assets7.25 %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 January 3, 2021 and December 29, 2019 by asset category, classified in the three levels of inputs described in Note 22, are as follows:
 
 Fair Value Measurements at January 3, 2021 Using:
Total Carrying
Value at
January 3, 2021		Quoted Prices in
Active Markets
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
 Inputs
(Level 3)
(In thousands)
Cash$428 $428 $— $— 
Equity securities:
U.S. large-cap6,398 6,398 — — 
International large-cap value2,315 2,315 — — 
Emerging markets growth1,112 1,112 — — 
Fixed income securities:
Corporate and U.S. debt instruments11,477 3,557 7,920 — 
High yield bond funds242 242 — — 
Total assets measured at fair value$21,972 $14,052 $7,920 $— 
 
 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-cap4,365 4,365 — — 
International large-cap value2,033 2,033 — — 
U.S. small mid-cap204 204 — — 
Emerging markets growth971 971 — — 
Domestic real estate funds152 152 — — 
Fixed income securities:
Corporate debt instruments10,520 3,557 6,963 — 
High yield bond funds433 433 — — 
Other types of investments:
Multi-strategy hedge funds130 — — 130 
Total assets measured at fair value$19,216 $12,123 $6,963 $130 
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 2020, 2019 and 2018 is as follows:
 
 Fair Value 
Measurements 
Using
Significant 
Unobservable
Inputs
(Level 3):
Multi-strategy
Hedge
Funds
(In thousands)
Balance at December 31, 2017$1,151 
Unrealized gains25 
Balance at December 30, 20181,176 
Sales(1,074)
Realized gains315 
Unrealized losses(287)
Balance at December 29, 2019130 
Sales(130)
Balance at January 3, 2021$— 
 
The Company does not expect to make any contributions to the postretirement medical plan during fiscal year 2021.
 
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows:
 
Postretirement Medical Plan
 (In thousands)
2021$119 
2022137 
2023150 
2024161 
2025172 
2026-2030883 
 
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 $0.6 million and $1.1 million as of January 3, 2021 and December 29, 2019, respectively.