Company: MRCY
Filing Date: 2025-08-11
Form Type: 10-K
Source: 0001049521-25-000024
Chunk: 127

Company: MERCURY SYSTEMS INC
Filing Date: 2025-08-11
Form: 10-K
Item: Item 8
Chunk 127
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 outlines the components of net periodic benefit cost of the Plan for the fiscal years ended June 27, 2025 and June 28, 2024:Fiscal Years Ended June 27, 2025June 28, 2024Service cost$1,164 $965 Interest cost320 481 Expected return on assets(247)(400)Amortization of prior service cost(227)(203)Amortization net of loss— (18)Settlement gain recognized(181)(354)Curtailment gain recognized(2,062)— Net periodic benefit (gain) cost$(1,233)$471 During fiscal year 2025, due to the sale of manufacturing operations to Cicor Group, there was a $2,062 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 June 27, 2025 and June 28, 2024:Fiscal Years Ended June 27, 2025June 28, 2024Discount rate1.20 %1.30 %Expected rate of return on Plan assets1.25 %1.30 %Expected inflation1.00 %1.20 %Rate of compensation increases3.00 %2.50 %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 June 27, 2025June 28, 2024Projected benefit obligation, beginning$21,878 $24,710 Service cost1,164 965 Interest cost320 481 Employee contributions1,106 1,235 Actuarial gain2,046 629 Benefits paid557 (881)Settlements (10,299)(5,239)Plan amendment(22)20 Curtailment(1,750)— Foreign exchange loss (gain) 2,722 (42)Projected benefit obligation at end of year$17,722 $21,878 

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The following table presents the change in Plan assets for the