Annual report pursuant to Section 13 and 15(d)

Retirement Benefits (Tables)

v3.21.2
Retirement Benefits (Tables)
12 Months Ended
Sep. 30, 2021
Pension Plans Defined Benefit  
Retirement and Postemployment Benefits  
Components of net pension costs The components of net pension costs under defined benefit retirement plans were:
 
U.S. Pension Benefits
Year Ended September 30,
Non-U.S. Pension Benefits
Year Ended September 30,
  2021 2020 2019 2021 2020 2019
Service cost $ 0.7  $ 1.4  $ 2.3  $ 2.0  $ 1.9  $ 1.2 
Interest cost 5.8  8.0  9.8  0.7  0.6  1.2 
Expected return on plan assets (10.9) (12.8) (13.3) (0.9) (0.8) (0.5)
Amortization of unrecognized prior service cost, net —  —  0.1  0.1  0.1  0.1 
Amortization of actuarial loss 2.2  4.8  1.2  2.9  2.5  0.9 
Settlement expense —  —  0.2  0.3  1.0  0.4 
Net pension costs (1)
$ (2.2) $ 1.4  $ 0.3  $ 5.1  $ 5.3  $ 3.3 
Schedule of changes in projected benefit obligations, plan assets, and funded status, along with amounts recognized in the consolidated balance sheets for defined benefit retirement plans The change in benefit obligation and funded status of the Company’s defined benefit retirement plans were:
U.S. Pension Benefits
September 30,
Non-U.S. Pension Benefits
September 30,
  2021 2020 2021 2020
Change in benefit obligation:        
Projected benefit obligation at beginning of year $ 316.6  $ 300.4  $ 184.8  $ 137.8 
Projected benefit obligation attributable to acquisitions —  —  —  37.7 
Service cost 0.7  1.4  2.0  1.9 
Interest cost 5.8  8.0  0.7  0.6 
Actuarial (gain) loss (5.5) 20.6  (7.0) 2.3 
Benefits paid (15.3) (13.8) (5.4) (3.4)
Gain due to settlement —  —  (4.1) (4.7)
Employee contributions —  —  1.0  1.0 
Effect of exchange rates on projected benefit obligation —  —  (0.3) 11.6 
Projected benefit obligation at end of year 302.3  316.6  171.7  184.8 
Change in plan assets:        
Fair value of plan assets at beginning of year 297.9  280.6  43.8  33.5 
Fair value of pension assets attributable to acquisitions —  —  —  7.6 
Actual return (loss) on plan assets 18.8  29.3  3.2  (1.1)
Employee and employer contributions 1.9  1.8  10.1  9.2 
Benefits paid (15.4) (13.8) (5.4) (3.4)
Settlements —  —  (4.1) (4.7)
Effect of exchange rates on plan assets —  —  —  2.7 
Fair value of plan assets at end of year 303.2  297.9  47.6  43.8 
Funded status:        
Plan assets less than benefit obligations $ 0.9  $ (18.7) $ (124.1) $ (141.0)
Amounts recorded in the Consolidated Balance Sheets:        
Prepaid pension costs, non-current $ 28.0  $ 9.0  $ 1.6  $ 0.5 
Accrued pension costs, current portion (2.0) (2.0) (7.2) (8.1)
Accrued pension costs, long-term portion (25.1) (25.7) (118.5) (133.3)
Plan assets less than benefit obligations $ 0.9  $ (18.7) $ (124.1) $ (140.9)
Schedule of accumulated benefit obligation in excess of plan assets Selected information for plans with accumulated benefit obligations in excess of plan assets was:
 
U.S. Pension Benefits
September 30,
Non-U.S. Pension Benefits
September 30,
  2021 2020 2021 2020
Projected benefit obligation $ 27.1  $ 27.7  $ 125.8  $ 184.8 
Accumulated benefit obligation 27.1  27.7  125.7  180.9 
Fair value of plan assets —  —  0.1  43.8 
Summary of actuarial assumptions
The weighted-average assumptions used in accounting for defined benefit retirement plans were:
 
U.S. Pension Benefits
Year Ended September 30,
Non-U.S. Pension Benefits
Year Ended September 30,
  2021 2020 2019 2021 2020 2019
Discount rate for obligation, end of year 2.8  % 2.6  % 3.1  % 0.8  % 0.6  % 0.3  %
Discount rate for expense, during the year 3.9  % 3.0  % 4.1  % 0.7  % 0.3  % 1.5  %
Expected rate of return on plan assets 4.0  % 4.1  % 5.2  % 2.0  % 1.9  % 1.5  %
Rate of compensation increase 2.4  % 3.0  % 3.0  % 2.0  % 2.0  % 2.0  %
Schedule of fair value of pension plan assets by asset category
Fair Value at September 30, 2021 Using Inputs Considered as:
  Total Level 1 Level 2 Level 3
Non-U.S. Pension Plans        
Cash equivalents $ 4.8  $ 4.8  $ —  $ — 
Equity securities 16.3  16.3  —  — 
Other types of investments:
Government index funds 4.8  4.8  —  — 
Corporate bond funds 13.7  13.7  —  — 
Real estate and real estate funds 4.5  —  —  4.5 
Other 3.5  —  3.5  — 
Total Non-U.S. pension plan assets $ 47.6  $ 39.6  $ 3.5  $ 4.5 
 
  Fair Value at September 30, 2020 Using Inputs Considered as:
  Total Level 1 Level 2 Level 3
Non-U.S. Pension Plans        
Cash equivalents $ 5.6  $ 5.6  $ —  $ — 
Equity securities 12.4  12.4  —  — 
Other types of investments: 0 0 0 0
Government index funds 6.0  6.0  —  — 
Corporate bond funds 12.7  12.7  —  — 
Real estate and real estate funds 3.8  —  —  3.8 
Other 3.3  —  3.3  — 
Total Non-U.S. pension plan assets $ 43.8  $ 36.7  $ 3.3  $ 3.8 
Schedule of estimated future benefit payments The following represents estimated future benefit payments, including expected future service, which are expected to be paid from plan assets or Company contributions as necessary:
U.S. Pension Plans
Projected Pension
Benefits Payout
Non-U.S. Pension Plans
Projected Pension
Benefits Payout
2022 $ 16.1  $ 9.1 
2023 16.2  9.2 
2024 16.5  8.8 
2025 16.7  8.6 
2026 16.9  8.8 
2027-2031 84.6  41.1 
Other Postretirement Benefits Plan  
Retirement and Postemployment Benefits  
Schedule of changes in projected benefit obligations, plan assets, and funded status, along with amounts recognized in the consolidated balance sheets for defined benefit retirement plans
  September 30,
  2021 2020
Benefit obligation at beginning of year $ 8.5  $ 8.2 
Interest cost 0.1  0.2 
Service cost 0.3  0.2 
Actuarial loss 0.2  2.0 
Benefits paid (0.6) (2.1)
Benefit obligation at end of year $ 8.5  $ 8.5 
Amounts recorded in the consolidated balance sheets:    
Accrued postretirement benefits, current portion $ 0.8  $ 0.7 
Accrued postretirement benefits, long-term portion 7.7  7.8 
Net amount recognized $ 8.5  $ 8.5 
Schedule of weighted average assumptions under the postretirement healthcare plan
The weighted-average assumptions used in revaluing the Company’s obligation under the postretirement healthcare plan were:
 
  Year Ended September 30,
  2021 2020 2019
Discount rate for obligation 2.4  % 2.1  % 2.8  %
Healthcare cost rate assumed for next year 6.4  % 6.6  % 6.9  %
Ultimate trend rate 4.5  % 4.5  % 4.5  %