Annual report pursuant to Section 13 and 15(d)

PENSION AND OTHER POSTRETIREMENT PLANS (Tables)

v3.22.2.2
PENSION AND OTHER POSTRETIREMENT PLANS (Tables)
 12 Months Ended
Sep. 30, 2022
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, 2022 and 2021:
  Pension Other Postretirement
  2022 2021 2022 2021
Change in benefit obligation:
Benefit obligation, beginning of year $ 293,926  $ 318,887  $ 18,841  $ 19,431 
Acquisitions (1)
9,829  —  —  — 
Service cost 392  7,919  165  201 
Interest cost 1,127  6,145  411  376 
Actuarial gain (19,978) (8,045) (5,989) (660)
Curtailment gain —  (17,324) —  — 
Special termination benefits —  315  —  — 
Settlement (242,232) —  —  — 
Exchange gain (3,093) (133) —  — 
Benefit payments (3,362) (13,838) (615) (507)
Benefit obligation, end of year (2)
36,609  293,926  12,813  18,841 
Change in plan assets:        
Fair value, beginning of year 208,344  168,134  —  — 
Actual return 368  37,789  —  — 
Benefit payments (3,362) (13,838) (615) (507)
Employer contributions 36,882  16,259  615  507 
Settlement (242,232) —  —  — 
Fair value, end of year —  208,344  —  — 
Funded status (36,609) (85,582) (12,813) (18,841)
Unrecognized actuarial loss (gain) 5,140  49,545  (5,973) 16 
Unrecognized prior service (credit) cost (4,815) (309) (1,320) (1,684)
Net amount recognized $ (36,284) $ (36,346) $ (20,106) $ (20,509)
Amounts recognized in the consolidated balance sheet:        
Current liability $ (24,172) $ (779) $ (830) $ (883)
Noncurrent benefit liability (12,437) (84,803) (11,983) (17,958)
Accumulated other comprehensive loss (income) 325  49,236  (7,293) (1,668)
Net amount recognized $ (36,284) $ (36,346) $ (20,106) $ (20,509)
Amounts recognized in accumulated        
       other comprehensive loss (income):
       
Net actuarial loss (gain) $ 5,140  $ 49,545  $ (5,973) $ 16 
Prior service (credit) cost (4,815) (309) (1,320) (1,684)
Net amount recognized $ 325  $ 49,236  $ (7,293) $ (1,668)
(1) Benefit obligations assumed in connection with the acquisition of OLBRICH and R+S Automotive. For additional information, see Note 21.
(2) Gains and losses related to changes in assumptions (e.g., discount rate, mortality, etc.), asset, salary and other experience, and curtailments impacted benefit obligations.
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
  2022 2021 2020 2022 2021 2020
Service cost $ 392  $ 7,919  $ 8,679  $ 165  $ 201  $ 227 
Interest cost * 1,127  6,145  7,735  411  376  501 
Expected return on plan assets * (1,040) (10,809) (10,214) —  —  — 
Amortization:            
Prior service cost (152) (127) (186) (364) (364) (464)
Net actuarial loss * 469  9,769  9,767  —  —  — 
Curtailment gain * —  (220) —  —  —  — 
Special termination benefits * —  315  —  —  —  — 
Prior-service cost write-offs * —  261  —  —  —  — 
Settlement* 30,856  —  —  —  —  — 
Net benefit cost $ 31,652  $ 13,253  $ 15,781  $ 212  $ 213  $ 264 
* Non-service components of pension and postretirement expense are included in other income (deductions), net.
Contributions During Fiscal Year
Contributions made in fiscal 2022 are as follows:
Contributions Pension Other Postretirement
Principal defined benefit retirement plan $ 35,706  $ — 
Supplemental retirement plan 760  — 
Other retirement plans 416  — 
Other postretirement plan —  615 
Weighted-Average Assumptions for Principal Retirement and Other Postretirement Benefit Plans The weighted-average assumptions for those plans were:
  Pension
  
Other Postretirement   
  2022 2021 2020 2022 2021 2020
Discount rate 4.01  % 2.79  % 2.62  % 5.37  % 2.83  % 2.63  %
Return on plan assets —  % 3.10  % 6.75  % —  —  — 
Compensation increase —  % 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, 2021 was as follows:
  Plan Assets at
Asset Category 2021
Equity securities $ 4,075 
Fixed income, cash and cash equivalents 189,958 
Other investments 14,311 
  $ 208,344 
Fair Value Allocation of Plan Assets
The Company's defined benefit pension plans' asset categories at September 30, 2021 were as follows:

  September 30, 2021
Asset Category Level 1 Level 2 Level 3 Total
Equity securities - stocks (1)
$ 4,075  $ —  $ —  $ 4,075 
Fixed income securities 10,403  101,133  —  111,536 
Cash and cash equivalents 78,422  —  —  78,422 
Other investments —  —  14,311  14,311 
Total $ 92,900  $ 101,133  $ 14,311  $ 208,344 
(1) Includes $4,075 of of Matthews Class A Common Stock in Level 1.
Changes in Fair Value of Level 3 Plan Assets
Changes in the fair value of Level 3 assets at September 30, 2022 and 2021 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, 2022 $ 14,311  $ —  $ (14,700) $ 139  $ 250  $ — 
September 30, 2021 15,273  236  (2,144) 272  674  14,311 
Benefit Payments Expected to be Paid
Benefit payments expected to be paid are as follows:
Years ending September 30: Pension Benefits * Other Postretirement Benefits
2023 $ 24,790  $ 830 
2024 551  855 
2025 560  870 
2026 564  875 
2027 573  859 
2028-2032 3,067  4,206 
  $ 30,105  $ 8,495 
* Pension benefit amounts include the settlement of the SERP and ORRP in fiscal 2023 (see above for further details).