Annual report pursuant to Section 13 and 15(d)

Retirement Benefits (Tables)

v3.5.0.2
Retirement Benefits (Tables)
12 Months Ended
Sep. 30, 2016
Pension Plans Defined Benefit  
Retirement and Postemployment Benefits  
Components of net pension costs
Effect on Operations — 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,
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Service cost
$
3.9

 
$
4.3

 
$
4.0

 
$
1.8

 
$
1.7

 
$
1.6

Interest cost
9.5

 
14.4

 
14.5

 
1.8

 
2.8

 
4.2

Expected return on plan assets
(9.7
)
 
(14.3
)
 
(14.0
)
 
(1.0
)
 
(1.0
)
 
(1.0
)
Amortization of unrecognized prior service cost, net
0.6

 
0.9

 
0.9

 
0.1

 

 

Amortization of actuarial loss
3.8

 
5.3

 
3.8

 
0.3

 
0.1

 

Settlement expense

 
17.7

 

 
0.5

 

 

Net pension costs
$
8.1

 
$
28.3

 
$
9.2

 
$
3.5

 
$
3.6

 
$
4.8

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,
 
2016
 
2015
 
2016
 
2015
Change in benefit obligation:
 

 
 

 
 

 
 

Projected benefit obligation at beginning of year
$
272.2

 
$
338.5

 
$
134.2

 
$
142.9

Service cost
3.9

 
4.3

 
1.8

 
1.7

Interest cost
9.5

 
14.4

 
1.8

 
2.8

Amendments

 

 

 
0.7

Actuarial loss
19.7

 
10.0

 
11.7

 
6.2

Benefits paid
(11.1
)
 
(89.0
)
 
(8.8
)
 
(8.3
)
Gain due to settlement

 
(6.0
)
 

 

Employee contributions

 

 
0.7

 
0.8

Effect of exchange rates on projected benefit obligation

 

 
(0.5
)
 
(12.6
)
Projected benefit obligation at end of year
294.2

 
272.2

 
140.9

 
134.2

 
 
 
 
 
 
 
 
Change in plan assets:
 

 
 

 
 

 
 

Fair value of plan assets at beginning of year
158.9

 
249.7

 
29.5

 
29.4

Actual return on plan assets
19.1

 
(8.6
)
 
0.5

 

Employee and employer contributions
6.8

 
6.8

 
8.5

 
8.9

Benefits paid
(11.1
)
 
(89.0
)
 
(8.8
)
 
(8.3
)
Effect of exchange rates on plan assets

 

 

 
(0.5
)
Fair value of plan assets at end of year
173.7

 
158.9

 
29.7

 
29.5

 
 
 
 
 
 
 
 
Funded status:
 

 
 

 
 

 
 

Plan assets less than benefit obligations
$
(120.5
)
 
$
(113.3
)
 
$
(111.2
)
 
$
(104.7
)
 
 
 
 
 
 
 
 
Amounts recorded in the consolidated balance sheets:
 

 
 

 
 

 
 

Accrued pension costs, current portion
$
(1.8
)
 
$
(1.8
)
 
$
(6.6
)
 
$
(6.9
)
Accrued pension costs, long-term portion
(118.7
)
 
(111.5
)
 
(104.6
)
 
(97.8
)
Plan assets less than benefit obligations
$
(120.5
)
 
$
(113.3
)
 
$
(111.2
)
 
$
(104.7
)
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,
 
2016
 
2015
 
2016
 
2015
Projected benefit obligation
$
294.2

 
$
272.2

 
$
108.6

 
$
134.2

Accumulated benefit obligation
276.5

 
258.9

 
108.6

 
131.2

Fair value of plan assets
173.7

 
158.9

 

 
29.5

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,
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Discount rate for obligation, end of year
3.6
%
 
4.4
%
 
4.4
%
 
1.0
%
 
2.1
%
 
2.3
%
Discount rate for expense, during the year
4.4
%
 
4.4
%
 
4.9
%
 
1.7
%
 
1.9
%
 
3.0
%
Expected rate of return on plan assets
5.5
%
 
6.3
%
 
6.6
%
 
2.0
%
 
3.5
%
 
3.5
%
Rate of compensation increase
3.0
%
 
3.0
%
 
3.0
%
 
2.0
%
 
0.2
%
 
0.2
%
Schedule of fair value of pension plan assets by asset category
 
Fair Value at September 30, 2016 Using Inputs Considered as:
 
Total
 
Level 1
 
Level 2
 
Level 3
Non-U.S. Pension Plans
 

 
 

 
 

 
 

Cash equivalents
$
4.1

 
$
4.1

 
$

 
$

Equity securities
6.5

 
6.5

 

 

Other types of investments:
 
 
 
 
 
 
 
Government index funds
5.8

 
5.8

 

 

Corporate bond funds
9.7

 
9.7

 

 

Real estate and real estate funds
2.0

 

 

 
2.0

Other
1.6

 

 
1.6

 

Total Non-U.S. pension plan assets
$
29.7

 
$
26.1

 
$
1.6

 
$
2.0

 
 
Fair Value at September 30, 2015 Using Inputs Considered as:
 
Total
 
Level 1
 
Level 2
 
Level 3
Non-U.S. Pension Plans
 

 
 

 
 

 
 

Cash equivalents
$
5.5

 
$
5.5

 
$

 
$

Equity securities
5.9

 
5.9

 

 

Other types of investments:
5.2

 
5.2

 
0

 
0

Government index funds
5.2

 
5.2

 

 

Corporate bond funds
9.9

 
9.9

 

 

Real estate and real estate funds
2.0

 

 

 
2.0

Other
1.0

 

 
1.0

 

Total Non-U.S. pension plan assets
$
29.5

 
$
26.5

 
$
1.0

 
$
2.0

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
2017
$
12.0

 
$
7.6

2018
12.3

 
7.9

2019
13.2

 
7.2

2020
14.1

 
7.4

2021
14.8

 
6.8

2022 - 2026
83.2

 
33.0

Other Postretirement Benefit Plans  
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,
 
2016
 
2015
Benefit obligation at beginning of year
$
10.3

 
$
8.9

Interest cost
0.3

 
0.3

Service cost
0.4

 
0.4

Actuarial loss
0.2

 
1.1

Net benefits paid
(0.9
)
 
(0.4
)
Benefit obligation at end of year
$
10.3

 
$
10.3

 
 
 
 
Amounts recorded in the balance sheets:
 

 
 

Accrued postretirement benefits, current portion
$
0.9

 
$
0.9

Accrued postretirement benefits, long-term portion
9.4

 
9.4

Net amount recognized
$
10.3

 
$
10.3

Schedule of weighted average assumptions under the postretirement healthcare plan
The weighted-average assumptions used in revaluing our obligation under the postretirement healthcare plan were:
 
 
Year Ended September 30,
 
2016
 
2015
 
2014
Discount rate for obligation
3.1
%
 
3.7
%
 
3.7
%
Healthcare cost rate assumed for next year
7.3
%
 
7.6
%
 
7.2
%
Ultimate trend rate
4.5
%
 
4.5
%
 
5.0
%