v3.26.1
Employee Benefit Plans
 12 Months Ended
Jul. 03, 2026
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
Pension Plan
The Company maintains a pension plan (the “Plan”) for its Swiss employees, which is administered by an independent pension fund. The Plan is mandated by Swiss law and meets the criteria for a defined benefit plan under ASC 715, Compensation—Retirement Benefits (“ASC 715”), since participants of the Plan are entitled to a defined rate of return on contributions made. The independent pension fund is a multi-employer plan with unrestricted joint liability for all participating companies for which the Plan’s overfunding or underfunding is allocated to each participating company based on an allocation key determined by the Plan.
The Company recognizes a net asset or liability for the Plan equal to the difference between the projected benefit obligation of the Plan and the fair value of the Plan’s assets as required by ASC 715. The funded status may vary from year to year due to changes in the fair value of the Plan’s assets and variations on the underlying assumptions of the projected benefit obligation of the Plan.
In fiscal 2021, the independent pension fund changed the conversion rate for accumulated retirement savings leading to a Plan amendment. The Company’s results contain the effects of this change in conversion rates by the independent pension fund as prior service costs. These prior service costs are amortized from AOCI to net periodic benefit costs over approximately nine years.
At July 3, 2026, the accumulated benefit obligation of the Plan equals the fair value of the Plan's assets. The Plan's funded status at July 3, 2026 and June 27, 2025 was a net liability of $3,053 and $5,282, respectively, which is recorded in Other non-current liabilities on the Consolidated Balance Sheets. The Company recognized net periodic benefit gains of $2,675 and $1,233 associated with the Plan and a net loss of $984 and 1,809 in AOCI during the fiscal years ended July 3, 2026 and June
27, 2025, respectively. Total employer contributions to the Plan were $598 during the year ended July 3, 2026, and the Company's total expected employer contributions to the Plan during fiscal 2027 are $412.
The following table reflects the total pension benefits expected to be paid from the Plan, which is funded from contributions by participants and the Company.
Fiscal Year Total
2027$444 
2028448 
2029458 
2030670 
2031654 
Thereafter (next 5 years)3,268 
Total$5,942 
The following table outlines the components of net periodic benefit cost of the Plan for the fiscal years ended July 3, 2026 and June 27, 2025:
Fiscal Years Ended
July 3, 2026June 27, 2025
Service cost$833 $1,164 
Interest cost211 320 
Expected return on assets(155)(247)
Amortization of prior service cost(225)(227)
Settlement gain recognized179 (181)
Curtailment gain recognized(3,518)(2,062)
Net periodic benefit gain$(2,675)$(1,233)
During fiscal year 2026, due to a reduction in force that impacted 39 employees, there was a $3,518 plan curtailment.
The following table reflects the related actuarial assumptions used to determine net periodic benefit cost of the Plan for the fiscal years ended July 3, 2026 and June 27, 2025:
Fiscal Years Ended
July 3, 2026June 27, 2025
Discount rate1.25 %1.20 %
Expected rate of return on Plan assets1.25 %1.25 %
Expected inflation1.00 %1.00 %
Rate of compensation increases3.00 %3.00 %
The calculation of the Projected Benefit Obligation (“PBO”) utilized BVG 2020 Generational data for assumptions related to the mortality rates, disability rates, turnover rates, and early retirement ages.
The PBO represents the present value of Plan benefits earned through the end of the year, with an allowance for future salary and pension increases as well as turnover rates. The following table presents the change in projected benefit obligation for the periods presented:
Fiscal Years Ended
July 3, 2026June 27, 2025
Projected benefit obligation, beginning$17,722 $21,878 
Service cost833 1,164 
Interest cost211 320 
Employee contributions3,755 1,106 
Actuarial gain593 2,046 
Benefits (received) paid(217)557 
Settlements (9,026)(10,299)
Plan amendment— (22)
Curtailment(3,205)(1,750)
Foreign exchange loss122 2,722 
Projected benefit obligation at end of year$10,788 $17,722 
The following table presents the change in Plan assets for the periods presented:
Fiscal Years Ended
July 3, 2026June 27, 2025
Fair value of Plan assets, beginning$12,440 $16,873 
Actual return on Plan assets48 1,125 
Company contributions598 978 
Employee contributions3,755 1,106 
Benefits (received) paid(217)557 
Settlements(9,026)(10,299)
Foreign exchange gain137 2,100 
Fair value of Plan assets at end of year$7,735 $12,440 
The following table presents the Company's reconciliation of funded status for the period presented:
As of
July 3, 2026June 27, 2025
Projected benefit obligation at end of year$10,788 $17,722 
Fair value of plan assets at end of year7,735 12,440 
Funded status$(3,053)$(5,282)
The fair value of Plan assets was $7,735 at July 3, 2026. The Plan is denominated in a foreign currency, the Swiss Franc, which can have an impact on the fair value of Plan assets. The Plan was not subject to material fluctuations during the years ended July 3, 2026 or June 27, 2025. The Plan’s assets are administered by an independent pension fund foundation (the “foundation”). As of July 3, 2026, the foundation has invested the assets of the Plan in various investments vehicles, including cash, real estate, equity securities, and bonds. The investments are measured at fair value using a mix of Level 1, Level 2 and Level 3 inputs.
401(k) Plan
The Company maintains a qualified 401(k) plan (the “401(k) Plan”) for its U.S. employees and matches participants' contributions to the plan and/or qualified student loan payments of up to 6% of their eligible annual compensation in Company stock. The Company may also make optional contributions to the plan for any plan year at its discretion. Stock-based 401(k) matching compensation cost is measured based on the value of the matching amount and is recognized as expense as incurred. Expense recognized by the Company for matching contributions related to the 401(k) plan was $19,181, $14,900, and $15,853 during the fiscal years ended July 3, 2026, June 27, 2025, and June 28, 2024, respectively.
Deferred Compensation Plan
The Company implemented a nonqualified deferred compensation plan as of January 1, 2024, under which eligible employees may defer up to 50% of their base salaries and up to 100% of their annual incentive bonuses. The Company may also make employer contributions to participant accounts in its sole discretion, and currently matches participants’ deferrals under the plan of up to 6% of their eligible annual compensation in the form of deferred stock units (or at the Company’s election, a cash-based deferral credited to participants’ account balances). The Company’s matching obligations for participant deferrals made during calendar year 2024 and 2025 were subject to a financial performance condition for the Company's four fiscal quarters corresponding to the respective calendar year. Each of these financial performance conditions was subsequently determined to have been fully satisfied, and the deferred stock units issued in respect of the Company's matching obligations vested accordingly. Participant deferrals under the plan are held in a rabbi trust and are subject to the claims of the Company’s creditors. Assets held by the rabbi trust are classified as trading securities and are recorded at fair value, with changes in value recorded as adjustments to other income. All deferrals or employer contributions under the plan, and all earnings thereon, are fully vested as and when made or credited to plan participants.
As of July 3, 2026, the Company held assets under the rabbi trust of $983, was subject to liabilities for amounts payable under the plan to participants (including accrued employer matching contributions not yet credited to plan participants) of $983. Assets related to this plan are included in Other assets, and liabilities related to this plan are included in Accrued compensation in the Consolidated Balance Sheets. During the fiscal years ended July 3, 2026 and June 27, 2025, the Company recognized an immaterial value of compensation expense as a result of changes in the value of notional investments selected by plan participants for the investment of their plan account balances, with the same amount being recorded as other income attributable to changes in the market value of the assets held by the rabbi trust.