Annual report pursuant to Section 13 and 15(d)

PENSION AND OTHER POSTRETIREMENT PLANS (Tables)

v3.19.3
PENSION AND OTHER POSTRETIREMENT PLANS (Tables)
12 Months Ended
Sep. 30, 2019
Retirement Benefits [Abstract]  
Reconciliation of Benefit Obligations, Plan Assets and Funded Status of Pension Plans The following provides a reconciliation of benefit obligations, plan assets and funded status of the plans as of the Company's actuarial valuation as of September 30, 2019 and 2018:

 
Pension
 
Other Postretirement
 
2019
 
2018
 
2019
 
2018
Change in benefit obligation:
 
 
 
 
 
 
 
Benefit obligation, beginning of year
$
241,553

 
$
259,672

 
$
18,826

 
$
20,316

Service cost
7,998

 
8,159

 
244

 
335

Interest cost
9,202

 
8,210

 
718

 
631

Actuarial loss (gain)
43,198

 
(15,229
)
 
2,212

 
(907
)
Exchange gain
(581
)
 
(180
)
 

 

Benefit payments
(11,413
)
 
(19,079
)
 
(1,048
)
 
(1,549
)
Benefit obligation, end of year
289,957

 
241,553

 
20,952

 
18,826

 
 
 
 
 
 
 
 
Change in plan assets:
 

 
 

 
 

 
 

Fair value, beginning of year
158,662

 
155,634

 

 

Actual return
6,852

 
10,914

 

 

Benefit payments (1)
(11,413
)
 
(19,079
)
 
(1,048
)
 
(1,549
)
Employer contributions
1,212

 
11,193

 
1,048

 
1,549

Fair value, end of year
155,313

 
158,662

 

 

 
 
 
 
 
 
 
 
Funded status
(134,644
)
 
(82,892
)
 
(20,952
)
 
(18,828
)
Unrecognized actuarial loss (gain)
95,741

 
53,405

 
(106
)
 
(2,376
)
Unrecognized prior service cost
(367
)
 
(552
)
 
(330
)
 
(525
)
Net amount recognized
$
(39,270
)
 
$
(30,039
)
 
$
(21,388
)
 
$
(21,729
)
 
 
 
 
 
 
 
 
Amounts recognized in the consolidated balance sheet:
 

 
 

 
 

 
 

Current liability
$
(882
)
 
$
(857
)
 
$
(989
)
 
$
(1,075
)
Noncurrent benefit liability
(133,762
)
 
(82,035
)
 
(19,963
)
 
(17,753
)
Accumulated other comprehensive loss (income)
95,374

 
52,853

 
(436
)
 
(2,901
)
Net amount recognized
$
(39,270
)
 
$
(30,039
)
 
$
(21,388
)
 
$
(21,729
)
 
 
 
 
 
 
 
 
Amounts recognized in accumulated
 

 
 

 
 

 
 

       other comprehensive loss (income):
 

 
 

 
 

 
 

Net actuarial loss (income)
$
95,741

 
$
53,405

 
$
(106
)
 
$
(2,376
)
Prior service cost
(367
)
 
(552
)
 
(330
)
 
(525
)
Net amount recognized
$
95,374

 
$
52,853

 
$
(436
)
 
$
(2,901
)

(1) Pension benefit payments in fiscal 2018 included approximately $6,800 of lump sum distributions that were made to certain terminated vested employees as settlements of the employees' pension obligations. These distributions did not meet the threshold to qualify as settlements under U.S. GAAP and therefore, no unamortized actuarial losses were recognized in the Statements of Income upon completion of the lump sum distributions.
Net Periodic Pension and Other Postretirement Benefit Cost
Net periodic pension and other postretirement benefit cost for the plans included the following:
 
Pension
 
Other Postretirement
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Service cost
$
7,998

 
$
8,159

 
$
8,553

 
$
244

 
$
335

 
$
392

Interest cost *
9,202

 
8,210

 
7,362

 
718

 
631

 
626

Expected return on plan assets *
(10,304
)
 
(10,136
)
 
(9,249
)
 

 

 

Amortization:
 

 
 

 
 

 
 

 
 

 
 

Prior service cost
(186
)
 
(138
)
 
(181
)
 
(195
)
 
(195
)
 
(195
)
Net actuarial loss *
4,245

 
7,018

 
10,034

 
(59
)
 

 

Net benefit cost
$
10,955

 
$
13,113

 
$
16,519

 
$
708

 
$
771

 
$
823


* Non-service components of pension and postretirement expense are included in other income (deductions), net.
Contributions During Fiscal Year
Contributions made in fiscal 2019 are as follows:
Contributions
Pension
 
Other Postretirement
Supplemental retirement plan
$
793

 
$

Other retirement plans
419

 

Other postretirement plan

 
1,048


Amounts of AOCI Expected to be Recognized in Net Periodic Benefit Costs
Amounts of AOCI expected to be recognized in net periodic benefit costs in fiscal 2020 include:

 
Pension
Benefits
 
Other
Postretirement
Benefits
Net actuarial loss
$
9,790

 
$

Prior service cost
(186
)
 
(94
)












Weighted-Average Assumptions for Principal Retirement and Other Postretirement Benefit Plans The weighted-average assumptions for those plans were:
 
Pension
 
  
Other Postretirement   
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Discount rate
3.13
%
 
4.21
%
 
3.76
%
 
3.10
%
 
4.19
%
 
3.72
%
Return on plan assets
6.75
%
 
6.75
%
 
6.75
%
 

 

 

Compensation increase
3.50
%
 
3.50
%
 
3.50
%
 

 

 


Weighted Average Asset Allocation and Target Allocation
The Company's defined benefit pension plans' weighted-average asset allocation at September 30, 2019 and 2018 and weighted-average target allocation were as follows:
 
Plan Assets at
 
Target
Asset Category
2019
 
2018
 
Allocation*
Equity securities
$
105,297

 
$
92,745

 
65
%
Fixed income, cash and cash equivalents
39,156

 
44,250

 
25
%
Other investments
10,860

 
21,667

 
10
%
 
$
155,313

 
$
158,662

 
100
%
 
 
 
 
 
 
* Target allocation relates to the Company's primary defined benefit pension plan as of September 30, 2019.

Fair Value Allocation of Plan Assets
The Company's defined benefit pension plans' asset categories at September 30, 2019 and 2018 were as follows:
 
September 30, 2019
Asset Category
Level 1
 
Level 2
 
Level 3
 
Total
Equity securities - stocks
$
54,985

 
$

 
$

 
$
54,985

Equity securities - mutual funds
50,312

 

 

 
50,312

Fixed income securities
15,829

 
18,968

 

 
34,797

Cash and cash equivalents
4,359

 

 

 
4,359

Other investments

 

 
10,860

 
10,860

Total
$
125,485

 
$
18,968

 
$
10,860

 
$
155,313



 
September 30, 2018
Asset Category
Level 1
 
Level 2
 
Level 3
 
Total
Equity securities - stocks
$
46,628

 
$

 
$

 
$
46,628

Equity securities - mutual funds
46,117

 

 

 
46,117

Fixed income securities
26,789

 
14,785

 

 
41,574

Cash and cash equivalents
2,676

 

 

 
2,676

Other investments
11,552

 

 
10,115

 
21,667

Total
$
133,762

 
$
14,785

 
$
10,115

 
$
158,662


Changes in Fair Value of Level 3 Plan Assets
Changes in the fair value of Level 3 assets at September 30, 2019 and 2018 are summarized as follows:

Asset Category
Fair Value, Beginning of Period
 
Acquisitions
 
Dispositions
 
Realized Gains
 
Unrealized Gains (Losses)
 
Fair Value, End of Period
Other investments:
 
 
 
 
 
 
 
 
 
 
 
Fiscal Year Ended:
 
 
 
 
 
 
 
 
 
 
 
September 30, 2019
$
10,115

 
$
4,162

 
$
(2,786
)
 
$
685

 
$
(1,316
)
 
$
10,860

September 30, 2018
9,480

 

 
(149
)
 
261

 
523

 
10,115










Benefit Payments Expected to be Paid
Benefit payments expected to be paid are as follows:
Years ending September 30:
Pension Benefits
 
Other Postretirement Benefits
 
 
 
 
2020
$
10,733

 
$
989

2021
11,057

 
1,021

2022
12,360

 
1,051

2023
12,690

 
1,082

2024
14,038

 
1,127

2025-2029
75,514

 
5,832

 
$
136,392

 
$
11,102