Retirement Plans

12 Months Ended

Dec. 28, 2019

The Company maintains certain defined contribution (“DC”) retirement plans covering qualifying employees. The total expense with respect to these DC plans was $7.3 million for the year ended December 28, 2019 (2018—$4.4 million; 2017—$2.0 million).

The Company also maintains several defined benefit (“DB”) plans acquired as a part of acquisitions covering certain U.S. and non-U.S. employees, referred to as the U.S. and International Plans, respectively. Retirement benefits are based on years of service multiplied by a monthly benefit factor. Pension costs are funded in accordance with the provisions of the applicable law.

Our U.S. Plan is closed to new participants and is frozen. The Company uses a December 28, 2019 measurement date for all DB plans. Any variation differences based on three days of trading are deemed immaterial.

In the third quarter of 2017, our Eden business relocated its corporate headquarters from Switzerland to Spain, which resulted in the dismissal or relocation of certain non-U.S. employees of the International Plans. As a result of the dismissal or relocation of the certain non-U.S. employees, we recorded a gain on pension curtailment of approximately $4.5 million to other expense (income), net, in the Consolidated Statement of Operations for the year ended December 30, 2017.

Obligations and Funded Status

The following table summarizes the change in the projected benefit obligation, change in plan assets and unfunded status of the DB plans as of December 28, 2019 and December 29, 2018:



	December 28, 2019
(in millions of U.S. dollars)	U.S.			International			Total
Change in Projected Benefit Obligation
Projected benefit obligation at beginning of year	$	7.9		$	10.8		$	18.7
Plan amendment	—			0.4			0.4
Service cost	—			0.8			0.8
Interest cost	0.3			0.2			0.5
Plan participant contributions	—			0.3			0.3
Benefit payments	(0.4		)	(1.5		)	(1.9		)
Actuarial losses	0.8			1.5			2.3
Translation losses	—			0.6			0.6
Projected benefit obligation at end of year	$	8.6		$	13.1		$	21.7
Change in Plan Assets
Plan assets beginning of year	$	6.9		$	5.8		$	12.7
Employer contributions	0.3			0.5			0.8
Plan participant contributions	—			0.3			0.3
Benefit payments	(0.4		)	(1.0		)	(1.4		)
Settlement gains	—			0.2			0.2
Actual return on plan assets	1.3			(0.1		)	1.2
Translation gains	—			0.2			0.2
Fair value at end of year	$	8.1		$	5.9		$	14.0
Funded Status of Plan
Projected benefit obligation	$	(8.6	)	$	(13.1	)	$	(21.7	)
Fair value of plan assets	8.1			5.9			14.0
Unfunded status	$	(0.5	)	$	(7.2	)	$	(7.7	)



	December 29, 2018
(in millions of U.S. dollars)	U.S.			International			Total
Change in Projected Benefit Obligation
Projected benefit obligation at beginning of year	$	8.4		$	12.8		$	21.2
Plan amendment	—			(0.1		)	(0.1		)
Service cost	—			0.8			0.8
Interest cost	0.3			0.1			0.4
Plan participant contributions	—			0.3			0.3
Benefit payments	(0.4		)	(1.4		)	(1.8		)
Actuarial gains	(0.4		)	(0.4		)	(0.8		)
Settlement gains	—			(0.8		)	(0.8		)
Translation gains	—			(0.5		)	(0.5		)
Projected benefit obligation at end of year	$	7.9		$	10.8		$	18.7
Change in Plan Assets
Plan assets beginning of year	$	7.1		$	6.6		$	13.7
Employer contributions	0.3			0.4			0.7
Plan participant contributions	—			0.3			0.3
Benefit payments	(0.4		)	(0.8		)	(1.2		)
Settlement losses	—			(0.5		)	(0.5		)
Actual return on plan assets	(0.1		)	—			(0.1		)
Translation losses	—			(0.2		)	(0.2		)
Fair value at end of year	$	6.9		$	5.8		$	12.7
Funded Status of Plan
Projected benefit obligation	$	(7.9	)	$	(10.8	)	$	(18.7	)
Fair value of plan assets	6.9			5.8			12.7
Unfunded status	$	(1.0	)	$	(5.0	)	$	(6.0	)

The accumulated benefit obligation for the U.S. Plans equaled $8.6 million and $7.9 million at the end of 2019 and 2018, respectively. The accumulated benefit obligation for the International Plans equaled $13.1 million and $10.8 million at the end of 2019 and 2018, respectively.

Periodic Pension Costs

The components of net periodic pension cost were as follows:



	December 28, 2019
(in millions of U.S. dollars)	U.S.			International		Total
Service cost	$	—		$	0.8	$	0.8
Interest cost	0.3			0.2		0.5
Expected return on plan assets	(0.5		)	—		(0.5		)
Net periodic pension (benefit) cost	$	(0.2	)	$	1.0	$	0.8



	December 29, 2018
(in millions of U.S. dollars)	U.S.			International			Total
Service cost	$	—		$	0.8		$	0.8
Interest cost	0.3			0.1			0.4
Expected return on plan assets	(0.5		)	—			(0.5		)
Recognized net gain due to settlement	—			(0.3		)	(0.3		)
Net periodic pension (benefit) cost	$	(0.2	)	$	0.6		$	0.4



	December 30, 2017
(in millions of U.S. dollars)	U.S.			International			Total
Service cost	$	—		$	1.5		$	1.5
Interest cost	(0.3		)	0.3			—
Expected return on plan assets	0.4			(0.3		)	0.1
Curtailment gain	—			(4.5		)	(4.5		)
Net periodic pension cost (benefit)	$	0.1		$	(3.0	)	$	(2.9	)

Accumulated Other Comprehensive Loss

Amounts included in accumulated other comprehensive loss, net of tax, at year-end which have not yet been recognized in net periodic benefit cost were as follows:



	December 28, 2019
(in millions of U.S. dollars)	U.S.			International			Total
Unrecognized net actuarial loss	$	(0.1	)	$	(0.9	)	$	(1.0	)
Total accumulated other comprehensive loss	$	(0.1	)	$	(0.9	)	$	(1.0	)

	December 29, 2018
(in millions of U.S. dollars)	U.S.			International			Total
Unrecognized net actuarial (loss) income	$	(0.1	)	$	0.4		$	0.3
Total accumulated other comprehensive (loss) income	$	(0.1	)	$	0.4		$	0.3

	December 30, 2017
(in millions of U.S. dollars)	U.S.			International			Total
Unrecognized net actuarial loss	$	(0.6	)	$	(16.2	)	$	(16.8	)
Total accumulated other comprehensive loss	$	(0.6	)	$	(16.2	)	$	(16.8	)

Actuarial Assumptions

The following table summarizes the weighted average actuarial assumptions used to determine the projected benefit obligation:



	For the Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
U.S. Plans
Discount rate	3.0	%	4.0	%	3.5	%
Expected long-term rate of return on plan assets	6.3	%	6.3	%	7.0	%
International Plans
Discount rate	1.1	%	2.4	%	2.0	%
Expected long-term rate of return on plan assets	1.3	%	2.7	%	3.1	%
Rate of compensation increase	2.7	%	1.4	%	1.4	%
CPI Inflation factor	0.3	%	0.3	%	0.3	%

The following table summarizes the weighted average actuarial assumptions used to determine net periodic benefit cost:



	For the Year Ended
	December 28, 2019		December 29, 2018		December 30, 2017
U.S. Plans
Discount rate	4.0	%	3.5	%	3.8	%
Expected long-term rate of return on plan assets	6.3	%	6.3	%	7.0	%
International Plans
Discount rate	1.1	%	2.4	%	2.0	%
Expected long-term rate of return on plan assets	1.3	%	2.7	%	3.1	%
Inflation factor	0.3	%	0.3	%	0.3	%

The Company utilizes a yield curve analysis to determine the discount rates for its DB plan obligations. The yield curve considers pricing and yield information for high quality corporate bonds with maturities matched to estimated payouts of future pension benefits. The Company evaluates its assumption regarding the estimated long-term rate of return on plan assets based on historical experience, future expectations of investment returns, asset allocations, and its investment strategy. The Company’s long-term rate of return on plan assets reflect expectations of projected weighted average market returns of plan assets. Changes in expected returns on plan assets also reflect any adjustments to the Company’s targeted asset allocation.

Asset Mix

Our DB plans weighted-average asset allocations by asset category were as follows:



	December 28, 2019		December 29, 2018
U.S. Plans
Equity securities	46.3	%	42.8	%
Fixed income investments	53.7	%	57.2	%
International Plans
Equity securities	56.8	%	58.6	%
Fixed income investments	33.2	%	31.0	%
Real estate	10.0	%	10.4	%

Plan Assets

Our investment policy is that plan assets will be managed utilizing an investment philosophy and approach characterized by all of the following, listed in priority order: (1) emphasis on total return, (2) emphasis on high-quality securities, (3) sufficient income and stability of income, (4) safety of principal with limited volatility of capital through proper diversification and (5) sufficient liquidity. The target allocation percentages for the U.S. Plans’ assets range between 30% to 45% in equity securities and 55% to 70% in fixed income investments. The target allocation percentages for the International Plans’ assets range between 50% to 80% in equity securities, 20% to 50% in fixed income investments, 0% to 30% in real estate and 0% to 15% in alternative investments. None of our equity or debt securities are included in plan assets.

Cash Flows

We expect to contribute $1.6 million to the DB plans during the 2020 fiscal year.

The following benefit payments are expected to be paid in the periods indicated below:



(in millions of U.S. dollars)	U.S.		International		Total
Expected benefit payments
FY 2020	$	0.4	$	1.2	$	1.6
FY 2021	0.4		0.6		1.0
FY 2022	0.5		0.5		1.0
FY 2023	0.5		0.4		0.9
FY 2024	0.5		0.6		1.1
FY 2025 through FY 2029	2.6		9.7		12.3

The fair values of the Company’s U.S. plan assets are measured daily at their net asset value and valued at $8.1 million and $6.9 million at December 28, 2019 and December 29, 2018, respectively.

The fair values of the Company’s International plan assets at December 28, 2019 and December 29, 2018 were as follows:



	December 28, 2019
(in millions of U.S. dollars)	Level 1		Level 2		Level 3
Mutual funds:
Non-U.S. equity securities	1.6		—		—
Fixed income:
Non-U.S. bonds	1.7		—		—
Insurance contract	—		2.0		—
Real estate:
Real estate	—		0.6		—
Total	$	3.3	$	2.6	$	—



	December 29, 2018
(in millions of U.S. dollars)	Level 1		Level 2		Level 3
Mutual funds:
Non-U.S. equity securities	1.6		—		—
Fixed income:
Non-U.S. bonds	1.9		—		—
Insurance contract	—		1.8		—
Real estate:
Real estate	—		0.6		—
Total	$	3.5	$	2.4	$	—