| Summary of Mexico Post-employment Benefits Net Periodic Benefit Cost (Credit) |
The following tables summarize the Mexico post-employment benefits net periodic benefit cost (credit), and actuarial assumptions (in thousands):
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Years Ended |
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June 28, 2026 |
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June 29, 2025 |
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June 30, 2024 |
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Components of net periodic benefit cost: |
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Service cost |
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$ |
1,068 |
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$ |
1,012 |
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$ |
1,027 |
|
Interest cost |
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|
1,118 |
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|
849 |
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|
910 |
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Return on plan assets |
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|
(113 |
) |
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|
(118 |
) |
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|
(113 |
) |
Plan settlements and curtailments |
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|
(269 |
) |
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(50 |
) |
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|
— |
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Actuarial (gain) loss |
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(380 |
) |
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16 |
|
|
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(159 |
) |
Net periodic benefit cost |
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$ |
1,424 |
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|
$ |
1,709 |
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$ |
1,665 |
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Weighted-average assumptions: |
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Benefit obligations: |
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Discount rate |
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9.7 |
% |
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9.0 |
% |
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|
8.0 |
% |
Expected return on plan assets |
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9.7 |
% |
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9.5 |
% |
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|
9.0 |
% |
Rate of compensation increases |
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5.0 |
% |
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|
5.0 |
% |
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|
5.0 |
% |
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Net periodic benefit cost: |
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Discount rate |
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|
9.2 |
% |
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|
8.0 |
% |
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8.5 |
% |
Expected return on plan assets |
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9.2 |
% |
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|
9.0 |
% |
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|
9.0 |
% |
Rate of compensation increases |
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|
5.0 |
% |
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5.0 |
% |
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|
5.0 |
% |
A reconciliation of the change in benefit obligation and the change in plan assets for the years ended June 28, 2026 and June 29, 2025 (in thousands):
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June 28, 2026 |
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June 29, 2025 |
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Benefit obligation at beginning of year |
|
$ |
11,998 |
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$ |
12,296 |
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Service cost |
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|
1,068 |
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|
1,012 |
|
Interest cost |
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|
1,118 |
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|
849 |
|
Benefits paid |
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(1,553 |
) |
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|
(918 |
) |
Plan settlements |
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|
(269 |
) |
|
|
(655 |
) |
Actuarial (gain) loss |
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|
(380 |
) |
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|
16 |
|
Currency translation adjustment |
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|
903 |
|
|
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(602 |
) |
Benefit obligation at end of year |
|
$ |
12,885 |
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$ |
11,998 |
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Fair value of plan assets at beginning of year |
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$ |
1,253 |
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$ |
1,158 |
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Actual return |
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|
113 |
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|
118 |
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Employer contribution |
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1,553 |
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|
918 |
|
Benefits paid |
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|
(1,553 |
) |
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|
(918 |
) |
Currency translation adjustment |
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|
97 |
|
|
|
(23 |
) |
Fair value of plan assets at end of year |
|
$ |
1,463 |
|
|
$ |
1,253 |
|
Funded status – accrued benefit obligations |
|
$ |
(11,422 |
) |
|
$ |
(10,745 |
) |
Amounts recognized in consolidated balance sheets: |
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Accrued payroll and benefits (current liabilities) |
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$ |
565 |
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$ |
300 |
|
Post-employment benefits (noncurrent liabilities) |
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10,857 |
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|
10,445 |
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Net amount recognized |
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$ |
11,422 |
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$ |
10,745 |
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| Schedule of Benefit Payments Which Reflect Expected Years of Future Service |
The following benefit payments, which reflect expected years of future service, as appropriate, are expected to be paid during the fiscal years noted below (in thousands):
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Fiscal Year |
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Mexico Post-employment Benefits |
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2027 |
|
$ |
865 |
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2028 |
|
$ |
997 |
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2029 |
|
$ |
1,287 |
|
2030 |
|
$ |
1,619 |
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2031 |
|
$ |
1,788 |
|
2032-2036 |
|
$ |
11,675 |
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