| Severance liabilities |
Severance liabilities The following table provides information regarding severance liabilities: | | | | | | | | | | | | | Years Ended | | (in thousands) | June 27,
2025 | | June 28,
2024 | | Changes in severance liabilities | | | | | Balance, beginning of the fiscal year | $ | 24,093 | | | $ | 22,370 | | | Current service cost | $ | 2,975 | | | $ | 2,655 | | | Interest cost | 966 | | | 747 | | | Benefit paid | (2,001) | | | (320) | | | Unrealized loss (gain) on exchange rate | 3,306 | | | (837) | | | Actuarial (gain) loss on obligation | 1,886 | | | (310) | | | Adjustment defined benefit obligation | — | | | (212) | | | | | | | Balance, end of the fiscal year | $ | 31,225 | | | $ | 24,093 | | | Changes in plan assets | | | | | Balance, beginning of the fiscal year | $ | — | | | $ | 349 | | | | | | | | | | | | | | | Adjustment plan assets | — | | | (349) | | | | | | | Balance, end of the fiscal year | $ | — | | | $ | — | | | Underfunded status | $ | (31,225) | | | $ | (24,093) | |
The following table sets forth our severance liabilities as of June 27, 2025: | | | | | | | (in thousands) | | | 2026 | $ | 2,001 | | | 2027 | 2,017 | | | 2028 | 2,738 | | | 2029 | 2,831 | | | 2030 | 3,562 | | | Thereafter | 18,076 | | | | | Total | $ | 31,225 | |
The amount recognized in the consolidated balance sheets under non-current liabilities was determined as follows: | | | | | | | | | | | | | (in thousands) | As of June 27,
2025 | | As of June 28,
2024 | | | | | | Non-current liabilities | $ | 31,225 | | | $ | 24,093 | |
The following table provides information regarding accumulated benefit obligations: | | | | | | | | | | | | | (in thousands) | As of June 27,
2025 | | As of June 28,
2024 | | Accumulated benefit obligations | $ | 22,140 | | | $ | 16,403 | |
The principal actuarial assumptions used were as follows: Weighted average actuarial assumptions used to determine severance liabilities | | | | | | | | | | | | | | | | | | | Years Ended | | June 27, 2025 | | June 28, 2024 | | June 30, 2023 | | Discount rate | 2.9% - 4.1% | | 3.9% - 5.5% | | 3.5% - 5.4% | | Future salary increases | 3.5% - 10.0% | | 3.5% - 10.0% | | 3.5% - 10.0% |
Weighted average actuarial assumptions used to determine benefit costs | | | | | | | | | | | | | | | | | | | Years Ended | | June 27, 2025 | | June 28, 2024 | | June 30, 2023 | | Discount rate | 5.2% | | 5.4% | | 3.8% | | Expected long-term rate of return on assets | 4.2% | | 5.2% | | 3.4% |
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