Employee Benefit Plans

6 Months Ended

Jul. 01, 2023

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plans

Net pension cost for the three and six months ended July 1, 2023 and July 2, 2022 includes the following components (in thousands):

	Pension Benefits				Pension Benefits
	Three Months Ended				Six Months Ended
	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Service cost	$	683	$	798	$	1,358	$	1,626
Interest cost	1,961		1,312		3,917		2,632
Expected return on plan assets	(1,805)		(2,156)		(3,608)		(4,321)
Amortization of prior service cost	—		6		—		11
Amortization of actuarial loss	434		570		868		1,140
Net pension cost	$	1,273	$	530	$	2,535	$	1,088

Based on actuarial estimates at July 1, 2023, the Company expects to contribute approximately $3.7 million to its pension plans to meet funding requirements during the next twelve months. Additionally, the Company has made tax deductible discretionary and required contributions to its pension plans for the six months ended July 1, 2023 and July 2, 2022 of approximately $1.6 million and $1.5 million, respectively.  

The Company participates in various multiemployer pension plans which provide defined benefits to certain employees covered by labor contracts.  These plans are not administered by the Company and contributions are determined in accordance with provisions of negotiated labor contracts to meet their pension benefit obligations to their participants. The Company's contributions to each multiemployer plan represent less than 5% of the total contributions to each plan. Based on the most currently available information, the Company has determined that, if a withdrawal were to occur, withdrawal liabilities on two of the plans in which the Company currently participates could be material to the Company, with one of these material plans certified as critical or red zone. With respect to the other multiemployer pension plans in which the Company participates and which are not individually significant, five plans have certified as critical or red zone and one plan has certified as endangered as defined by the Pension Protection Act of 2006.

The Company currently has withdrawal liabilities recorded on four U.S. multiemployer plans in which it participated. During the second quarter of fiscal 2023, the Company was notified by one of their multiemployer plans that an additional partial withdrawal liability was incurred and the Company also received a notification that another one of its multiemployer plans liabilities was being reduced. As a result of these events, the Company recorded an additional liability of approximately $2.8 million. As of July 1, 2023, the Company has an aggregate accrued liability of approximately $6.6 million representing the present value of scheduled withdrawal liability payments on the multiemployer plans that have given notice of withdrawal. While the Company has no ability to calculate a possible current liability for under-funded multiemployer plans that could terminate or could require additional funding under the Pension Protection Act of 2006, the amounts could be material.