The Company has Company-sponsored defined benefit pension plans covering employees in the United Kingdom ("U.K."), Germany, the Philippines, China, Japan, Mexico, Italy and France. The amount of the retirement benefits provided under the plans is based on years of service and final average pay.



(in thousands)	2019			2018
Change in benefit obligation:
Benefit obligation at beginning of year	$	102,833		$	67,268
Service cost	2,040			2,266
Interest cost	3,169			3,104
Net actuarial gain/(loss)	11,286			(7,321		)
Benefits paid from the trust	(3,323		)	(2,479		)
Benefits paid directly by the Company	(1,540		)	(1,802		)
Settlements	(1,924		)	(1,291		)
Acquisitions	—			48,358
Effect of exchange rate movements	1,735			(6,918		)
Plan amendment and other	2,645			1,648
Benefit obligation at end of year	$	116,921		$	102,833

Change in plan assets at fair value:
Fair value of plan assets at beginning of year	$	70,676		$	48,123
Actual return on plan assets	8,222			(2,847		)
Employer contributions	2,233			2,341
Benefits paid	(3,323		)	(2,479		)
Settlements	(1,072		)	(1,291		)
Acquisitions	—			31,954
Effect of exchange rate movements	1,766			(5,125		)
Fair value of plan assets at end of year	78,502			70,676
Net amount unfunded status	$	(38,419	)	$	(32,157	)



(in thousands)	2019			2018
Amounts recognized in the Consolidated Balance Sheets consist of:
Noncurrent assets	$	885		$	811
Current benefit liability	(1,106		)	(1,094		)
Noncurrent benefit liability	(38,198		)	(31,874		)
Net liability recognized	$	(38,419	)	$	(32,157	)

The amounts included in accumulated other comprehensive loss in the Consolidated Balance Sheets, excluding tax effects, that have not yet been recognized as components of net periodic benefit costs as of December 28, 2019 and December 29, 2018 were as following:

The estimated net actuarial loss and prior service cost which will be amortized from accumulated other comprehensive income (loss) into benefit cost in 2020 is approximately $0.4 million and $0.2 million, respectively.




(in thousands)	2019
Amortization of:
Prior service cost	$	80
Net actuarial loss	163
Amount arising during the period:
Prior service cost	(2,645		)
Net actuarial loss	(6,251		)
Settlement loss	260
Foreign currency adjustments	(131		)
Total	$	(8,524	)




(in thousands)	2019			2018			2017
Components of net periodic benefit cost:
Service cost	$	2,040		$	2,266		$	2,037
Interest cost	3,169			3,104			1,887
Expected return on plan assets	(3,187		)	(3,222		)	(1,990		)
Amortization of prior service and net actuarial loss	243			291			337
Net periodic benefit cost	2,265			2,439			2,271
Settlement loss / curtailment (gain)	260			238			(25		)
Total expense for the year	$	2,525		$	2,677		$	2,246

The following table provides a summary of under-funded or unfunded pension benefit plans with projected benefit obligations in excess of plan assets as of December 28, 2019 and December 29, 2018:

The following table provides a summary of under-funded or unfunded pension benefit plans with accumulated benefit obligations in excess of plan assets as of December 28, 2019 and December 29, 2018:

The Company also sponsors certain post-employment plans in foreign countries and other statutory benefit plans. For the fiscal year ended December 28, 2019, December 29, 2018, and December 30, 2017, the Company recorded $1.4 million, $1.8 million, $1.1 million expense, respectively, in Cost of Sales and Other expense (income), net within the Consolidated Statements of Net Income. As of December 28, 2019 and December 29, 2018, the Company reported benefit liabilities of $2.8 million and $2.7 million for these plans, of which $0.9 million and $1.1 million was recorded in Accrued liabilities and $1.9 million and $1.6 million was recorded in Other long-term liabilities on the Consolidated Balance Sheets, respectively. For fiscal year ended December 28, 2019, the pre-tax amounts recognized in other comprehensive income (loss) as components of net periodic benefit costs for these plans were $0.6 million.

Based upon analysis of the target asset allocation and historical returns by type of investment, the Company has assumed that the expected long-term rate of return will be 4.5% on plan assets. Assets are invested to maximize long-term return taking into consideration timing of settlement of the retirement liabilities and liquidity needs for benefits payments. Pension plan assets were invested as follows, and were not materially different from the target asset allocation:

The Company segregated its plan assets by the following major categories and level for determining their fair value as of December 28, 2019 and December 29, 2018. All plan assets that are valued using the net asset value per share (“NAV”) practical expedient have not been included within the fair value hierarchy but are separately disclosed.

Cash and cash equivalents – Carrying value approximates fair value. As such, these assets were classified as Level 1. The Company also invests in certain short-term investments which are valued using the amortized cost method and at NAV.

Equity – The values of individual equity securities were based on quoted prices in active markets. As such, these assets are classified as Level 1. Additionally, the Company invests in certain equity funds that are valued at calculated NAV.

Fixed income – Fixed income securities are typically priced based on a last trade basis and are exchange-traded. Accordingly, the Company classified fixed income securities as Level 1. The Company also invests in certain fixed income funds which are valued at NAV.

Insurance Contracts and other – This category includes insurance contracts that are valued by the re-insurer with the valuation inputs being not highly observable or traded on an open market. Accordingly, insurance contracts was categorized as Level 3. Additionally, this category includes other assets and liabilities including futures or swaps valued at NAV.

For any Level 2 and Level 3 plan assets, management reviews significant investments on a periodic basis including investigation of unusual fluctuations in price or returns and obtaining an understanding of the pricing methodology to assess the reliability of third-party pricing estimates.

The valuation methodologies described above may generate a fair value calculation that may not be indicative of net realizable value or future fair values. While the Company believes the valuation methodologies used are appropriate, the use of different methodologies or assumptions in calculating fair value could result in different amounts. The Company invests in various assets in which valuation is determined by NAV. The Company believes that the NAV is representative of fair value at the reporting date, as there are no significant restrictions on redemption of these investments or other reasons to indicate that the investment would be redeemed at an amount different than the NAV.



	Fair Value Measurements Using
(in thousands)	Level 1		Level 2		Level 3		NAV		Total
Equities	$	1,796	$	—	$	—	$	19,139	$	20,935
Fixed income	4,535		—		—		51,711		56,246
Insurance contracts and other	—		—		609		147		756
Cash and cash equivalents	387		—		—		178		565
Total pension plan assets	$	6,718	$	—	$	609	$	71,175	$	78,502



	Fair Value Measurements Using
(in thousands)	Level 1		Level 2		Level 3		NAV		Total
Equities	$	1,361	$	—	$	—	$	19,527	$	20,888
Fixed income	3,336		—		—		43,134		46,470
Insurance contracts and other	—		—		632		1,161		1,793
Cash and cash equivalents	702		—		—		823		1,525
Total pension plan assets	$	5,399	$	—	$	632	$	64,645	$	70,676

The Company also maintains a 401(k) savings plan covering substantially all U.S. employees. The Company matches 100% of the employee’s annual contributions for the first 4% of the employee’s eligible compensation. The Company may provide an additional discretionary match to participants and made discretionary matches of 2% of the employee’s eligible compensation for each of the fiscal year ended December 28, 2019, December 29, 2018 and December 30, 2017. Employees are immediately vested in their contributions plus actual earnings thereon, as well as the Company contributions. Company matching contributions amounted to $5.6 million, $4.5 million, and $3.5 million in 2019, 2018, and 2017, respectively.

The Company has a non-qualified Supplemental Retirement and Savings Plan which provides additional retirement benefits for certain management employees and named executive officers by allowing participants to defer a portion of their annual compensation. The Company maintains accounts for participants through which participants make investment elections. The investments are subject to the claims of the Company’s creditors and the Company is responsible for the payment of all benefits under the plan from its general assets. As of December 28, 2019, there was $10.5 million of marketable securities related to the plan included in Other assets and $10.5 million of accrued compensation benefits included in Other long-term liabilities. The marketable securities are classified as Level 1 under the fair value hierarchy as they are maintained in mutual funds with readily determinable fair value. The Company made matching contributions to the plan of $0.4 million in 2019.