Retirement Plans

The Company and its subsidiaries have various savings and retirement plans covering substantially all employees. The Company maintains a defined contribution plan for the benefit of its eligible U.S. employees. This plan provides for Company contributions of up to 5% of each participant’s total eligible compensation. In addition, the Company contributes an amount equal to each participant’s pre-tax contribution, if any, up to a maximum of 3% of each participant’s total eligible compensation. The total expense related to the defined contribution plan for U.S. employees was $26.3 million in fiscal 2015, $24.1 million in fiscal 2014 and $23.1 million in fiscal 2013. The Company also has various defined benefit pension and other retirement plans for certain non-U.S. employees that are consistent with local statutory requirements and practices. The total expense related to the various defined benefit pension and other retirement plans for certain non-U.S. employees, excluding settlement charges related to the Company's Irish defined benefit plan, was $33.3 million in fiscal 2015, $29.8 million in fiscal 2014 and $26.5 million in fiscal 2013.

Non-U.S. Plan Disclosures

During fiscal 2015, the Company converted the benefits provided to participants in the Company’s Irish defined benefits pension plan (the DB Plan) to benefits provided under the Company’s Irish defined contribution plan. As a result, in fiscal 2015 the Company recorded expenses of $223.7 million, including settlement charges, legal, accounting and other professional fees to settle the pension obligation. The assets related to the DB Plan were liquidated and used to purchase annuities for retirees and distributed to active and deferred members' accounts in the Company's Irish defined contribution plan in connection with the plan conversion. Accordingly, plan assets for the DB Plan were zero as of the end of fiscal 2015.

The Company’s funding policy for its foreign defined benefit pension plans is consistent with the local requirements of each country. The plans’ assets consist primarily of U.S. and non-U.S. equity securities, bonds, property and cash. The benefit obligations and related assets under these plans have been measured at October 31, 2015 and November 1, 2014.

Components of Net Periodic Benefit Cost

Net annual periodic pension cost of non-U.S. plans is presented in the following table:



	2015			2014			2013
Service cost	$	15,675		$	13,532		$	11,323
Interest cost	11,636			14,051			12,528
Expected return on plan assets	(13,509		)	(13,615		)	(11,771		)
Amortization of prior service cost	(229		)	(240		)	(235		)
Amortization of transition obligation	18			19			20
Recognized actuarial loss	7,257			4,544			2,999
Subtotal	$	20,848		$	18,291		$	14,864
Curtailment impact	(4,463		)	—			—
Settlement impact	226,810			—			—
Net periodic pension cost	$	243,195		$	18,291		$	14,864

Benefit Obligations and Plan Assets

Obligation and asset data of the Company’s non-U.S. plans at each fiscal year end is presented in the following table:



	2015			2014
Change in Benefit Obligation
Benefit obligation at beginning of year	$	455,205		$	347,665
Service cost	15,675			13,532
Interest cost	11,636			14,051
Participant contributions	1,895			2,466
Plan amendments	—			(1,106		)
Curtailment	(20,586		)	—
Settlement	(412,136		)	—
Premiums paid	(332		)	(381		)
Actuarial loss	114,767			112,984
Benefits paid	(4,449		)	(3,195		)
Exchange rate adjustment	(55,142		)	(30,811		)
Benefit obligation at end of year	$	106,533		$	455,205
Change in Plan Assets
Fair value of plan assets at beginning of year	$	269,371		$	249,329
Actual return on plan assets	24,283			21,596
Employer contributions	228,582			16,045
Participant contributions	1,895			2,466
Settlements	(412,136		)	—
Premiums paid	(332		)	(381		)
Benefits paid	(4,449		)	(3,195		)
Exchange rate adjustment	(36,849		)	(16,489		)
Fair value of plan assets at end of year	$	70,365		$	269,371
Reconciliation of Funded Status
Funded status	$	(36,168	)	$	(185,834	)
Amounts Recognized in the Balance Sheet
Non-current assets	$	3,246		$	—
Current liabilities	(595		)	(605		)
Non-current liabilities	(38,819		)	(185,229		)
Net amount recognized	$	(36,168	)	$	(185,834	)



	2015			2014
Reconciliation of Amounts Recognized in the Statement of Financial Position
Initial net obligation	$	(44	)	$	(63	)
Prior service credit	—			5,121
Net loss	(19,620		)	(197,073		)
Accumulated other comprehensive loss	(19,664		)	(192,015		)
Accumulated contributions (less than) in excess of net periodic benefit cost	(16,504		)	6,181
Net amount recognized	$	(36,168	)	$	(185,834	)
Changes Recognized in Other Comprehensive Income
Changes in plan assets and benefit obligations recognized in other comprehensive income
Prior service cost	$	—		$	(1,106	)
Net loss arising during the year (includes curtailment gains not recognized as a component of net periodic cost)	$	83,610		$	105,003
Effect of exchange rates on amounts included in accumulated other comprehensive income (loss)	(26,366		)	(13,872		)
Amounts recognized as a component of net periodic benefit cost
Amortization, settlement or curtailment recognition of net transition obligation	(18		)	(19		)
Amortization or curtailment recognition of prior service credit (cost)	4,490			240
Amortization or settlement recognition of net loss	(234,067		)	(4,544		)
Total recognized in other comprehensive loss	$	(172,351	)	$	85,702
Total recognized in net periodic cost and other comprehensive loss	$	70,844		$	103,993
Estimated amounts that will be amortized from accumulated other comprehensive (loss) income over the next fiscal year
Initial net obligation	$	(17	)	$	(19	)
Prior service credit	—			275
Net loss	(697		)	(8,564		)
Total	$	(714	)	$	(8,308	)

The accumulated benefit obligation for non-U.S. pension plans was $88.5 million and $351.9 million at October 31, 2015 and November 1, 2014, respectively.

Information relating to the Company’s non-U.S. plans with projected benefit obligations in excess of plan assets and accumulated benefit obligations in excess of plan assets at each fiscal year end is presented in the following table:



	2015		2014
Plans with projected benefit obligations in excess of plan assets:
Projected benefit obligation	$	61,713	$	455,205
Fair value of plan assets	$	22,300	$	269,371
Plans with accumulated benefit obligations in excess of plan assets:
Projected benefit obligation	$	36,986	$	384,225
Accumulated benefit obligation	$	31,790	$	298,620
Fair value of plan assets	$	487	$	201,119

Assumptions

The range of assumptions used for the non-U.S. defined benefit plans reflects the different economic environments within the various countries. The projected benefit obligation was determined using the following weighted-average assumptions:



	2015		2014
Discount rate	3.64	%	2.95	%
Rate of increase in compensation levels	3.05	%	2.77	%

Net annual periodic pension cost was determined using the following weighted average assumptions:



	2015		2014
Discount rate	2.95	%	4.05	%
Expected long-term return on plan assets	5.80	%	5.46	%
Rate of increase in compensation levels	2.77	%	2.84	%

The expected long-term rate of return on assets is a weighted-average of the long-term rates of return selected for the various countries where the Company has funded pension plans. The expected long-term rate of return on assets assumption is selected based on the facts and circumstances that exist as of the measurement date and the specific portfolio mix of plan assets. Management, in conjunction with its actuaries, reviewed anticipated future long-term performance of individual asset categories and considered the asset allocation strategy adopted by the Company and/or the trustees of the plans. While the review considered recent fund performance and historical returns, the assumption is primarily a long-term prospective rate.

The Company’s investment strategy is based on an expectation that equity securities will outperform debt securities over the long term. Accordingly, in order to maximize the return on assets, a majority of assets are invested in equities. Investments within each asset class are diversified to reduce the impact of losses in single investments. The use of derivative instruments is permitted where appropriate and necessary to achieve overall investment policy objectives and asset class targets.

The Company establishes strategic asset allocation percentage targets and appropriate benchmarks for each significant asset class to obtain a prudent balance between return and risk. The interaction between plan assets and benefit obligations is periodically studied by the Company and its actuaries to assist in the establishment of strategic asset allocation targets.

Fair value of plan assets

The following table presents plan assets measured at fair value on a recurring basis by investment categories as of October 31, 2015 and November 1, 2014 using the same three-level hierarchy described in Note 2j:



	October 31, 2015								November 1, 2014
	Fair Value Measurement at Reporting Date Using:								Fair Value Measurement at Reporting Date Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Total
Unit trust funds(1)	$	—	$	5,198	$	—	$	5,198	$	—	$	201,554	$	—	$	201,554
Equities(1)	—		30,196		77		30,273		—		30,113		121		30,234
Fixed income securities(2)	—		34,504		—		34,504		—		33,746		—		33,746
Property(3)	—		—		—		—		—		—		3,029		3,029
Cash and cash equivalents	390		—		—		390		808		—		—		808
Total assets measured at fair value	$	390	$	69,898	$	77	$	70,365	$	808	$	265,413	$	3,150	$	269,371

_______________________________________

(1)

The majority of the assets in these categories are invested in a mix of equities, including those from North America, Europe and Asia. The funds are valued using the net asset value method in which an average of the market prices for underlying investments is used to value the fund. Due to the nature of the underlying assets of these funds, changes in market conditions and the economic environment may significantly impact the net asset value of these investments and, consequently, the fair value of the investments. These investments are redeemable at net asset value to the extent provided in the documentation governing the investments. However, these redemption rights may be restricted in accordance with governing documents. Publicly traded securities are valued at the last trade or closing price reported in the active market in which the individual securities are traded. Level 3 securities are valued at book value per share based upon the financial statements of the investment.


(2)	The majority of the assets in this category are invested in funds primarily concentrated in non-U.S. debt instruments. The funds are valued using the net asset value method in which an average of the market prices for underlying investments is used to value the fund.


(3)	The majority of the assets in this category are invested in properties in Ireland, the United Kingdom, Europe and other established international markets. Investments in properties are stated at estimated fair values based upon valuations by external independent property appraisers.

The table below presents a reconciliation of the plan assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for fiscal years 2015 and 2014.



	Properties			Equities
Balance as of November 2, 2013	$	3,146		$	125
Purchases, sales, and settlements, net	3			(1		)
Realized and unrealized return on plan assets	120			—
Exchange rate adjustment	(240		)	(3		)
Balance as of November 1, 2014	$	3,029		$	121
Purchases, sales, and settlements, net	(2,907		)	(37		)
Realized and unrealized return on plan assets	152			—
Exchange rate adjustment	(274		)	(7		)
Balance as of October 31, 2015	$	—		$	77

Estimated future cash flows

Expected fiscal 2016 Company contributions and estimated future benefit payments are as follows:



Expected Company Contributions
2016	$	4,236
Expected Benefit Payments
2016	$	2,140
2017	$	1,653
2018	$	1,743
2019	$	2,100
2020	$	2,227
2021 through 2025	$	17,296