Employee Benefits (Tables)

12 Months Ended

Jan. 03, 2026

Schedule of Defined Benefit Plan, Plan with Projected Benefit Obligation in Excess of Plan Assets

The following table sets forth the funded status and amounts recognized in the consolidated balance sheet for the Company’s defined benefit plans.


(in millions)	January 3, 2026			December 28, 2024
Plan Assets
Fair value of plan assets at beginning of year	$	19.2		$	16.7
Employer contributions	2.4			1.8
Participant contributions	0.9			0.7
Realized net gains (losses) on plan assets	0.3			0.1
Benefits paid	(0.6)			(1.2)
Foreign currency revaluation and translation gains and (losses)	2.6			1.1
Fair value of plan assets at end of year	$	24.8		$	19.2

Projected Benefit Obligation
Projected benefit obligation at beginning of year	$	24.6		$	20.9
Service cost	1.7			1.5
Participant contributions	0.9			0.7
Interest cost	0.3			0.3
Actuarial gains (losses)	(0.4)			0.5
Benefits paid	(0.6)		(1)	(1.2)
Foreign currency revaluation and translation gains and (losses)	3.8			1.9
Projected benefit obligation at end of year	$	30.3		$	24.6
Funded status	$	(5.5)		$	(5.4)

______________

(1) Due to the timing of a cash transfer, there was a payable as of January 3, 2026, resulting in a negative allocation as of year end.

International defined benefit plans with accumulated benefit obligations in excess of fair value of plan assets consist of the following:


(in millions)	January 3, 2026		December 28, 2024
Projected benefit obligation	$	30.3	$	24.6
Accumulated benefit obligation	28.1		22.8
Fair value of plan assets	24.8		19.2

Schedule of Net Benefit Costs

The Company’s consolidated statement of operations reflect the following components of net periodic defined benefit costs:


(in millions)	Year Ended January 3, 2026		Year Ended December 28, 2024		Year Ended December 30, 2023
Service cost	$	1.7	$	1.5	$	1.2
Interest cost	0.3		0.3		0.5
Amortization of net losses	0.2		0.1		—

Amortization of prior service costs (credits)	—		(0.1)		—
Expected (gains) on plan assets	(0.8)		(0.7)		(0.7)

Net periodic defined benefit plan cost	$	1.4	$	1.1	$	1.0

On a weighted-average basis, the following assumptions were used to determine benefit obligations and to determine net periodic benefit cost:


	Year Ended January 3, 2026		Year Ended December 28, 2024
Assumptions - benefit obligations:
Discount rate	1.0	%	1.5	%
Rate of compensation increase	1.5		1.5
Assumptions - net periodic benefit costs:
Discount rate	1.0	%	1.5	%


Rate of compensation increase	1.5		1.5
Expected long-term return on plan assets(1)	3.5		3.7
Interest credit rate	1.3		1.5

______________

(1) The pension expected return on assets assumption is derived primarily from underlying investment allocations and historical risk premiums per each plan, adjusted for current and future expectations, such as easing of global inflationary pressure.

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

Classification of amounts recognized in the consolidated balance sheets are as follows:


(in millions)	January 3, 2026		December 28, 2024


Non-current liability	$	5.5	$	5.4

Schedule of Allocation of Plan Assets

The weighted-average asset allocations at year end by asset category were as follows:


	Actual Allocation
Asset category	January 3, 2026		December 28, 2024
Cash and cash equivalents(1)	(3.7)	%	(6.8)	%
Equity securities	39.6		36.0
Debt securities	33.7		44.1
Other	30.4		26.7

______________

(1) Due to the timing of a cash transfer, there was a payable as of January 3, 2026 and December 28, 2024, resulting in a negative allocation as of year end.

Schedule of Expected Benefit Payments

The estimated future benefit payments, based upon the same assumptions used to measure the benefit obligations and expected future employee service, were as follows:


(in millions)	Year Ended January 3, 2026

2026	$	1.2
2027	1.2
2028	1.2
2029	2.1
2030	1.2
Thereafter	7.8
Total	$	14.7

MASIMO CORP 10-K