Pension and Other Postretirement Benefits Disclosure [Text Block] | NOTE 15 EMPLOYEE BENEFIT PLANS Defined Contribution and Deferred Compensation Plans The Company has a 401(k) (“401(k) six 401(k) may, 401(k) $3.1 $2.9 $2.7 2016, 2015 2014, No 2016, 2015 2014. Under the Company’s nonqualified savings plans (“NSPs”), the Company provides eligible employees the opportunity to enter into agreements for the deferral of a specified percentage of their compensation, as defined in the NSPs. The NSPs call for Company matching contributions on a sliding scale based on the level of the employee’s contribution. The obligations of the Company under such agreements to pay the deferred compensation in the future in accordance with the terms of the NSPs are unsecured general obligations of the Company. Participants have no right, interest or claim in the assets of the Company, except as unsecured general creditors. The Company has established a rabbi trust to hold, invest and reinvest deferrals and contributions under the NSPs. If a change in control of the Company occurs, as defined in the NSPs, the Company will contribute an amount to the rabbi trust sufficient to pay the obligation owed to each participant. Deferred compensation in connection with the NSPs totaled $28.3 January 1, 2017. $25.3 January 1, 2017. Foreign Defined Benefit Plans The Company has trusteed defined benefit retirement plans which cover many of its European employees. The benefits are generally based on years of service and the employee’s average monthly compensation. Pension expense was $1.2 $2.1 $0.1 2016, 2015 2014, January 1, 2017, $19.4 $48.9 The tables presented below set forth the funded status of the Company’s significant foreign defined benefit plans and required disclosures in accordance with applicable accounting standards FISCAL YEAR 2016 2015 (in thousands) Change in benefit obligation Benefit obligation, beginning of year $ 243,717 $ 275,762 Service cost 1,032 1,061 Interest cost 6,580 8,384 Benefits and expenses paid (8,551 ) (10,004 ) Actuarial loss (gain) 73,600 (13,591 ) Member contributions 225 239 Currency translation adjustment (38,790 ) (18,134 ) Benefit obligation, end of year $ 277,813 $ 243,717 FISCAL YEAR 2016 2015 (in thousands) Change in plan assets Plan assets, beginning of year $ 239,281 $ 261,026 Actual return on assets 59,364 753 Company contributions 4,990 5,001 Benefits paid (8,551 ) (10,004 ) Currency translation adjustment (36,719 ) (17,496 ) Plan assets, end of year $ 258,365 $ 239,280 Reconciliation to balance sheet Funded status benefit asset/(liability) $ (19,448 ) $ (4,437 ) Net amount recognized $ (19,448 ) $ (4,437 ) Amounts recognized in accumulated other comprehensive income (after tax) Unrecognized actuarial loss $ 49,547 $ 39,411 Unamortized prior service costs (311 ) (347 ) Total amount recognized $ 49,236 $ 39,064 The above disclosure represents the aggregation of information related to the Company’s two January 1, 2017 January 3, 2016, one January 1, 2017 January 3, 2016. END OF FISCAL YEAR 2016 2015 (in thousands) UK Plan Projected Benefit Obligation $ 171,172 $ 168,178 Accumulated Benefit Obligation 171,172 168,178 Plan Assets 153,132 167,360 Europe Plan Projected Benefit Obligation $ 106,641 $ 75,539 Accumulated Benefit Obligation 103,242 71,005 Plan Assets 105,233 71,920 FISCAL YEAR 2016 2015 2014 (in thousands) Components of net periodic benefit cost Service cost $ 1,032 $ 1,061 $ 705 Interest cost 6,580 8,384 10,563 Expected return on plan assets (7,553 ) (8,764 ) (11,904 ) Amortization of prior service cost 33 33 19 Recognized net actuarial (gains)/losses 1076 1,359 648 Net periodic benefit cost $ 1,168 $ 2,073 $ 31 The Company reconciles the components of net periodic pension expense by comparing the beginning balance of assets and the beginning projected obligation against the assumptions of asset return and interest costs. Any significant differences will be explained. There were no such differences in 2016. The increase in projected benefit obligation and plan assets in the Europe plan was primarily as a result of a decision by the company to include in the 2016 four $32.2 2016. 3” For 2017, $1.3 2016, $21.1 $21.8 $0.7 FISCAL YEAR 2016 2015 2014 Weighted average assumptions used to determine net periodic benefit cost Discount rate 2.7 % 3.0 % 4.0 % Expected return on plan assets 3.1 % 4.0 % 4.2 % Rate of compensation 2.0 % 2.0 % 2.0 % Weighted average assumptions used to determine benefit obligations Discount rate 2.3 % 3.4 % 3.2 % Rate of compensation 2.0 % 2.0 % 2.0 % The expected long-term rate of return on plan assets assumption is based on weighted average expected returns for each asset class. Expected returns reflect a combination of historical performance analysis and the forward-looking views of the financial markets, and include input from actuaries, investment service firms and investment managers. The Company’s foreign defined benefit plans’ fair value of plan assets were in excess of the accumulated benefit obligations. The projected benefit obligations, accumulated benefit obligations and fair value of these plans are as follows: FISCAL YEAR 2016 2015 (in thousands) Projected benefit obligation $ 277,813 $ 243,717 Accumulated benefit obligations 274,414 239,183 Fair value of plan assets 258,365 239,280 The investment objectives of the foreign defined benefit plans are to maximize the return on the investments without exceeding the limits of the prudent pension fund investment, to ensure that the assets would be sufficient to exceed minimum funding requirements, and to achieve a favorable return against the performance expectation based on historic and projected rates of return over the short term. The goal is to optimize the long-term return on plan assets at a moderate level of risk, by balancing higher-returning assets, such as equity securities, with less volatile assets, such as fixed income securities. The assets are managed by professional investment firms and performance is evaluated periodically against specific benchmarks. The plans’ net assets did not include the Company’s own stock at January 1, 2017 January 3, 2016. The Company’s actual weighted average asset allocations for 2016 2015, 2017, FISCAL YEAR 2017 2016 2015 Target Allocation Percentage of Plan Assets at Year End Asset Category: Equity Securities 40% - 50% 43 % 49 % Debt and Debt Securities 35% - 45% 36 % 41 % Other 10 - 20% 21 % 10 % 100% 100 % 100 % Fair Value Measurements of Plan Assets Accounting standards establish a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure estimated fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 3 three Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 Inputs to the valuation methodology include: ● quoted prices for similar assets in active markets; ● quoted prices for identical or similar assets in inactive markets; ● inputs other than quoted prices that are observable for the asset; and ● inputs that are derived principally or corroborated by observable data by correlation or other means. Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following table sets forth by level within the fair value hierarchy the foreign defined benefit plans’ assets at fair value, as of January 1, 2017 January 3, 2016. Pension Plan Assets by Category as of January 1, 2017 Europe Plan UK Plan Total (in thousands) Level 1 $ 73,042 $ 80,048 $ 153,090 Level 2 0 50,364 50,364 Level 3 32,191 22,720 54,911 Total $ 105,233 $ 153,132 $ 258,365 Pension Plan Assets by Category as of January 3, 2016 Europe Plan UK Plan Total (in thousands) Level 1 $ 71,920 $ 93,846 $ 165,766 Level 2 0 59,228 59,228 Level 3 0 14,286 14,286 Total $ 71,920 $ 167,360 $ 239,280 The tables below detail the foreign defined benefit plans’ assets by asset allocation and fair value hierarchy: 2016 Level 1 Level 2 Level 3 (in thousands) Asset Class Equity Securities $ 110,738 $ 0 $ 0 Debt and Debt Securities 37,175 36,378 19,224 Other (including cash) 5,177 13,986 35,687 $ 153,090 $ 50,364 $ 54,911 2015 Level 1 Level 2 Level 3 (in thousands) Asset Class Equity Securities $ 117,889 $ 0 $ 0 Debt and Debt Securities 45,953 41,725 9,576 Other (including cash) 1,924 17,503 4,710 $ 165,766 $ 59,228 $ 14,286 With the exception of the $32.2 2016, 3 2016 2015 3 2016: 2016 (in thousands) Balance of level 3 assets, beginning of year $ 14,286 Interest cost 492 Benefits paid (606 ) Assets transferred in to Level 3 11,988 Actuarial gain (loss) 32,429 Translation adjustment (3,678 ) Ending Balance of level 3 assets $ 54,911 Actuarial gain (loss) includes the indexation asset of $32.2 During 2017, $3.0 FISCAL YEAR EXPECTED PAYMENTS (in thousands) 2017 $ 7,907 2018 8,134 2019 8,323 2020 8,532 2021 8,653 2022 - 2026 43,723 Domestic Defined Benefit Plan The Company maintains a domestic nonqualified salary continuation plan (“SCP”), which is designed to induce selected officers of the Company to remain in the employ of the Company by providing them with retirement, disability and death benefits in addition to those which they may 65 55) 15 10 10 one three The tables presented below set forth the required disclosures in accordance with applicable accounting standards, and amounts recognized in the consolidated financial statements related to the domestic SCP. FISCAL YEAR 2016 2015 (in thousands) Change in benefit obligation Benefit obligation, beginning of year $ 25,860 $ 24,016 Service cost 440 594 Interest cost 1,269 1,113 Benefits paid (1,012 ) (847 ) Actuarial loss (gain) 3,143 984 Benefit obligation, end of year $ 29,700 $ 25,860 The amounts recognized in the consolidated balance sheets are as follows: 2016 2015 (in thousands) Current liabilities $ 1,890 $ 1,009 Non-current liabilities 27,810 24,850 29,700 $ 25,859 The components of the amounts in accumulated other comprehensive income, after tax, are as follows: 2016 2015 (in thousands) Unrecognized actuarial loss $ 5,626 $ 4,226 The accumulated benefit obligation related to the SCP was $29.7 $23.6 January 1, 2017 January 3, 2016, 2016 2015 2014 (in thousands, except for assumptions) Assumptions used to determine net periodic benefit cost Discount rate 4.25 % 4.0 % 4.5 % Rate of compensation 4.0 % 4.0 % 4.0 % Assumptions used to determine benefit obligations Discount rate 3.85 % 4.25 % 4.0 % Rate of compensation 4.0 % 4.0 % 4.0 % Components of net periodic benefit cost Service cost $ 440 $ 594 $ 500 Interest cost 1,269 1,113 1,072 Amortizations 811 522 291 Net periodic benefit cost $ 2,520 $ 2,229 $ 1,863 The changes in other comprehensive income during 2016 $1.4 $1.9 $0.5 For 2017, $0.4 During 2016, $1.0 FISCAL YEAR EXPECTED PAYMENTS (in thousands) 2017 $ 1,890 2018 2,029 2019 2,029 2020 2,029 2021 2,029 2022 - 2026 9,859 |