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Retirement Plans
 12 Months Ended
Oct. 28, 2023
Retirement Benefits [Abstract]  
Retirement Plans Retirement Plans
The Company and its subsidiaries have various savings and retirement plans covering substantially all employees.
Defined Contribution Plans
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 plans for all eligible U.S. employees was $76.0 million in fiscal 2023, $65.2 million in fiscal 2022 and $52.1 million in fiscal 2021.
Non-Qualified Deferred Compensation Plan
The Deferred Compensation Plan (DCP) allows certain members of management and other highly-compensated employees and non-employee directors to defer receipt of all or any portion of their compensation. The DCP was established to provide participants with the opportunity to defer receiving all or a portion of their compensation, which includes salary, bonus, commissions and director fees. Under the DCP, the Company provides all participants (other than non-employee directors) with Company contributions equal to 8% of eligible deferred contributions. The DCP is a non-qualified plan that is maintained in a rabbi trust. The fair value of the investments held in the rabbi trust are included within other investments, with the current portion of the investment included in prepaid expenses and other current assets in the Consolidated Balance Sheets. See Note 2j, Fair Value, of the Notes to Consolidated Financial Statements for further information on these investments. The deferred compensation obligation represents DCP participant accumulated deferrals and earnings thereon since the inception of the DCP net of withdrawals. The deferred compensation obligation is included within other non-current liabilities, with the current portion of the obligation in accrued liabilities in the Consolidated Balance Sheets. The Company’s liability under the DCP is an unsecured general obligation of the Company.
Defined Benefit Pension and Post Retirement Benefit Plans
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, contribution and other retirement plans for certain non-U.S. employees was $55.3 million in fiscal 2023, $51.4 million in fiscal 2022 and $45.9 million in fiscal 2021.
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 Company has elected to measure defined benefit plan assets and obligations as of October 31, which is the month-end that is closest to its fiscal year-ends, which were October 28, 2023 for fiscal 2023 and October 29, 2022 for fiscal 2022.
As a result of the Acquisition, the Company acquired a postretirement plan that provides postretirement medical expenses to certain former employees of a Maxim acquired company and certain former Maxim executives in the U.S.
Components of Net Periodic Benefit Cost
Net annual periodic benefit cost of the Company’s pension and postretirement benefit plans for fiscal 2023, fiscal 2022 and fiscal 2021 is presented in the following table:
202320222021
Service cost$7,728 $10,914 $9,207 
Interest cost8,773 6,148 4,071 
Expected return on plan assets(5,236)(4,540)(3,759)
Recognized actuarial loss1,168 2,299 2,973 
Subtotal$12,433 $14,821 $12,492 
Settlement impact173 (35)(6)
Net periodic benefit cost$12,606 $14,786 $12,486 
The service cost component of net periodic benefit cost above is recorded in Cost of sales, Research and development, Selling, marketing, general and administrative expenses within the Consolidated Statements of Income, while the remaining components are recorded to Other, net.
Benefit Obligations and Plan Assets
Obligation and asset data of the Company’s pension and postretirement benefit plans at October 28, 2023 and October 29, 2022 is presented in the following table:
20232022
Change in Benefit Obligation  
Benefit obligation at beginning of year$157,730 $242,593 
Service cost7,728 10,914 
Interest cost8,773 6,148 
Acquisition of Maxim benefit obligation(3,880)— 
Settlement(1,887)(1,052)
Actuarial gain574 (68,806)
Benefits paid(6,352)(3,596)
Exchange rate adjustment5,182 (28,471)
Benefit obligation at end of year$167,868 $157,730 
Change in Plan Assets  
Fair value of plan assets at beginning of year$84,029 $128,283 
Actual return on plan assets(2,831)(34,231)
Employer contributions10,811 11,344 
Settlements(1,887)(1,052)
Benefits paid(6,352)(3,596)
Exchange rate adjustment3,836 (16,719)
Fair value of plan assets at end of year$87,606 $84,029 
Reconciliation of Funded Status  
Funded status$(80,262)$(73,701)
Amounts Recognized in the Balance Sheet  
Non-current assets$— $1,185 
Current liabilities$(4,222)$(2,638)
Non-current liabilities(76,040)(72,248)
Net amount recognized$(80,262)$(73,701)
20232022
Reconciliation of Amounts Recognized in the Statement of Financial Position  
Prior service credit(27)(29)
Net loss(12,304)(5,302)
Accumulated other comprehensive loss(12,331)(5,331)
Accumulated contributions less than net periodic benefit cost(67,931)(68,370)
Net amount recognized$(80,262)$(73,701)
Changes Recognized in Other Comprehensive Income (Loss)  
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss)  
Net gain/loss arising during the year $8,876 $(31,223)
Effect of exchange rates on amounts included in AOCI(536)(4,882)
Amounts recognized as a component of net periodic benefit cost  
Amortization or settlement recognition of net loss(1,340)(2,264)
Total recognized in other comprehensive gain/loss$7,000 $(38,369)
Total recognized in net periodic cost and other comprehensive loss$19,606 $(23,583)
Estimated amounts that will be amortized from AOCI over the next fiscal year  
Net loss$(1,281)$(1,067)
The accumulated benefit obligation for the Company’s pension and postretirement benefit plans was $120.1 million and $111.3 million at October 28, 2023 and October 29, 2022, respectively.
Information relating to the Company’s pension and postretirement benefit plans with projected benefit obligations in excess of plan assets and accumulated benefit obligations in excess of plan assets at October 28, 2023 and October 29, 2022 is presented in the following table:
20232022
Plans with projected benefit obligations in excess of plan assets:  
Projected benefit obligation$169,356 $120,763 
Fair value of plan assets$87,606 $45,879 
Plans with accumulated benefit obligations in excess of plan assets:  
Projected benefit obligation$112,200 $62,980 
Accumulated benefit obligation$98,477 $49,429 
Fair value of plan assets$45,555 $2,573 
Assumptions
The range of assumptions used for the Company’s pension and postretirement benefit plans reflects the different economic environments within the various countries as well as the differences in the attributes of the participants.
The projected benefit obligation was determined using the following weighted-average assumptions:
20232022
Discount rate5.73 %5.44 %
Rate of increase in compensation levels4.34 %4.08 %
Net annual periodic benefit cost was determined using the following weighted average assumptions:
20232022
Discount rate5.44 %2.77 %
Expected long-term return on plan assets5.84 %3.73 %
Rate of increase in compensation levels4.08 %3.70 %
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. 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 28, 2023 and October 29, 2022 using the same three-level hierarchy described in Note 2j, Fair Value, of the Notes to Consolidated Financial Statements:
October 28, 2023October 29, 2022
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)		TotalQuoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Other Observable Inputs
(Level 2)		Total
Unit trust funds(1)$— $4,803 $4,803 $— $3,625 $3,625 
Equities(1)7,851 8,375 16,226 6,700 7,767 14,467 
Fixed income securities(2)— 29,020 29,020 — 28,214 28,214 
Property (3)— 4,624 4,624 — 4,773 4,773 
Investment Funds (4)— 22,933 22,933 — 29,760 29,760 
Cash and cash equivalents10,000 — 10,000 3,190 — 3,190 
Total assets measured at fair value$17,851 $69,755 $87,606 $9,890 $74,139 $84,029 
_______________________________________
(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.
(2)Consists of 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)Consists of funds that primarily invest in global real estate and infrastructure funds. 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.
(4)Consists of liability driven investment funds that may hold a range of low-risk hedging instruments including but not limited to government bonds, interest rate and inflation swaps, physical inflation-linked and nominal gilts, synthetic gilts, cash and money market instruments. The investment funds are valued at the closing price reported if traded on an active market or at yields currently available on comparable securities of issuers with similar credit ratings.
Estimated future cash flows
Expected fiscal 2024 Company contributions and estimated future benefit payments are as follows:
Expected Company Contributions 
2024$8,779 
Expected Benefit Payments 
2024$7,470 
2025$6,481 
2026$6,719 
2027$7,481 
2028$8,618 
2029 through 2033$60,534