Company: MRCY
Filing Date: 2025-02-04
Form Type: 10-Q
Source: 0001049521-25-000009
Chunk: 101

Company: MERCURY SYSTEMS INC
Filing Date: 2025-02-04
Form: 10-Q
Item: Item 8
Chunk 101
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 SEC on August 13, 2024.

 During the second quarter and six months ended December 27, 2024, the Company made no borrowings or repayments. As of December 27, 2024, the Company was in compliance with all covenants and conditions under the Revolver and there were outstanding borrowings of $591,500 against the Revolver, resulting in interest expense of $8,430 and $17,336 for the second quarter and six months ended December 27, 2024. The borrowing capacity as defined under the Revolver as of December 27, 2024 is approximately $750,000 less outstanding borrowings of $591,500. There were outstanding letters of credit of $987 as of December 27, 2024. 

I.Employee Benefit Plan

PENSION PLANThe Company maintains a defined benefit 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”), because 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. The Plan's funded status at December 27, 2024 was a net liability of $5,057, which is recorded in Other non-current liabilities on the Consolidated Balance Sheet. The Company recognized net periodic benefit costs of $231 and $208 associated with the Plan and a net loss of $51 and $57 in AOCI during the second quarters ended December 27, 2024 and December 29, 2023, respectively. The Company recognized net periodic benefit costs of $463 and $415 associated with the Plan and a net loss of $105 and $113 in AOCI during the six months ended December 27, 2024 and December 29, 2023