Retirement Benefits

12 Months Ended

Dec. 29, 2024

Retirement Benefits [Abstract]

Retirement Benefits

13. Retirement Benefits

U.S. Defined Contribution Plans

The Company provides a qualified defined contribution plan covering substantially all U.S.-based full-time employees, except officers and certain other employees. The plan offers a savings feature with Company matching contributions. Assets of this plan are held by an independent trustee for the sole benefit of participating employees. 

A nonqualified plan is provided for officers and certain other employees. This plan includes provisions for salary deferrals and Company matching contributions. 

In addition to the plans above, the Company also provides a qualified plan and a nonqualified plan to certain U.S.-based temporary employees.

The liability for the nonqualified plans was $260.5 million and $233.8 million as of year-end 2024 and 2023, respectively, the current portion of which is included in current accrued payroll and related taxes in the consolidated balance sheet. The cost of participants’ earnings or loss on this liability, which were included in SG&A expenses in the consolidated statements of earnings, was earnings of $29.8 million in 2024, earnings of $32.9 million in 2023 and a loss of $36.3 million in 2022.

In connection with the administration of these plans, the Company has purchased company-owned variable universal life insurance policies insuring the lives of certain current and former officers and key employees. The cash surrender value of these policies, which is based primarily on investments in mutual funds and can only be used for payment of the Company’s obligations related to the nonqualified deferred compensation plan noted above, was $258.1 million and $230.3 million at year-end 2024 and 2023, respectively, and is reflected as a discrete line item in the consolidated balance sheet. During 2024, there were proceeds of $1.7 million in connection with these policies. In 2023, there were no proceeds in connection with these policies. In 2022, proceeds of $1.5 million were received in connection with these policies. Tax-free earnings or loss on these assets, which were included in SG&A expenses in the consolidated statements of earnings and which offset the related earnings or loss on the liability, were earnings of $30.9 million in 2024, earnings of $32.2 million in 2023 and a loss of $36.0 million in 2022. 

The net expense for retirement benefits for the qualified and nonqualified plans, including Company-matching contributions for full-time employees, totaled $8.6 million in 2024, $10.9 million in 2023 and $9.4 million in 2022, and is included in total SG&A expenses in the consolidated statements of earnings. The expense related to retirement plan contributions for temporary employees is included in cost of services in the consolidated statements of earnings.

International Defined Benefit Plans

The Company had several defined benefit pension plans in locations outside of the United States. The total projected benefit obligation, assets and unfunded liability for these plans as of year-end 2023 were $9.7 million, $8.0 million and $1.7 million, respectively, all of which were included as held for sale (see Acquisitions and Dispositions footnote). Total pension expense for these plans was $0.2 million in 2023 and $0.4 million in 2022. These plans are no longer effective in 2024.