XML 34 R18.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Employee Benefits | 12 Months Ended
--- | ---
Oct. 31, 2016
Compensation and Retirement Disclosure [Abstract] |
Employee Benefits | Employee Benefits Cooper's Retirement Income Plan Cooper's Retirement Income Plan (Plan), a defined benefit plan, covers substantially all full-time United States employees. Cooper's contributions are designed to fund normal cost on a current basis and to fund the estimated prior service cost of benefit improvements. The unit credit actuarial cost method is used to determine the annual cost. Cooper pays the entire cost of the Plan and funds such costs as they accrue. Virtually all of the assets of the Plan are comprised of equities and participation in equity and fixed income funds. Beginning in fiscal 2016, we refined the method used to determine the service and interest cost components of our net periodic benefit cost. Previously, the cost was determined using a single weighted-average discount rate derived from the yield curve. Under the refined method, known as the spot rate approach, we will use individual spot rates along the yield curve that correspond with the timing of each benefit payment. We believe this change provides a more precise measurement of service and interest costs by improving the correlation between projected cash outflows and corresponding spot rates on the yield curve. Compared to the previous method, the spot rate approach decreased the service and interest components of our benefit costs in fiscal 2016, which was immaterial. There is no impact on the total benefit obligation. We will account for this change prospectively as a change in accounting estimate. The following table sets forth the Plan's benefit obligations and fair value of the Plan assets at October 31, 2016, and the funded status of the Plan and net periodic pension costs for each of the years in the three-year period ended October 31, 2016. Retirement Income Plan
Years Ended October 31, (In millions) | 2016 |  | 2015 |  | 2014
Change in benefit obligation |  |  |  |  |
Benefit obligation, beginning of year | $ | 117.3 |  |  | $ | 101.1 |  |  | $ | 84.2 |
Service cost | 8.9 |  |  | 8.8 |  |  | 7.1 |
Interest cost | 4.3 |  |  | 4.6 |  |  | 4.0 |
Benefits paid | (2.3 | ) |  | (4.7 | ) |  | (1.8 | )
Actuarial loss (gain) | 10.7 |  |  | 7.5 |  |  | 7.6 |
Benefit obligation, end of year | $ | 138.9 |  |  | $ | 117.3 |  |  | $ | 101.1 |
Change in plan assets |  |  |  |  |
Fair value of plan assets, beginning of year | $ | 79.5 |  |  | $ | 72.2 |  |  | $ | 59.3 |
Actual return on plan assets | 2.0 |  |  | 2.0 |  |  | 5.9 |
Employer contributions | 10.0 |  |  | 10.0 |  |  | 8.8 |
Benefits paid | (2.3 | ) |  | (4.7 | ) |  | (1.8 | )
Fair value of plan assets, end of year | $ | 89.2 |  |  | $ | 79.5 |  |  | $ | 72.2 |
Funded status at end of year | $ | (49.7 | ) |  | $ | (37.8 | ) |  | $ | (28.9 | )
Years Ended October 31, (In millions) | 2016 |  | 2015 |  | 2014
Amounts recognized in the statement of financial position consist of: |  |  |  |  |
Noncurrent asset | $ | — |  |  | $ | — |  |  | $ | — |
Current liability | — |  |  | — |  |  | — |
Noncurrent liabilities | (49.7 | ) |  | (37.8 | ) |  | (28.9 | )
Net amount recognized at year end | $ | (49.7 | ) |  | $ | (37.8 | ) |  | $ | (28.9 | )
Years Ended October 31, (In millions) | 2016 |  | 2015 |  | 2014
Amounts recognized in accumulated other comprehensive income consist of: |  |  |  |  |
Net transition obligation | $ | — |  |  | $ | — |  |  | $ | — |
Prior service cost | — |  |  | — |  |  | — |
Net loss | 45.8 |  |  | 32.1 |  |  | 22.1 |
Accumulated other comprehensive income | $ | 45.8 |  |  | $ | 32.1 |  |  | $ | 22.1 |
Years Ended October 31, (In millions) | 2016 |  | 2015 |  | 2014
Information for pension plans with accumulated benefit obligations in excess of plan assets |  |  |  |  |
Projected benefit obligation | $ | 138.9 |  |  | $ | 117.3 |  |  | $ | 101.1 |
Accumulated benefit obligation | $ | 121.2 |  |  | $ | 102.6 |  |  | $ | 88.6 |
Fair value of plan assets | $ | 89.2 |  |  | $ | 79.5 |  |  | $ | 72.2 |
Years Ended October 31, (In millions) | 2016 |  | 2015 |  | 2014
Reconciliation of prepaid (accrued) pension cost |  |  |  |  |
Accrued pension cost at prior fiscal year end | $ | (5.7 | ) |  | $ | (6.8 | ) |  | $ | (8.9 | )
Net periodic benefit cost | 8.3 |  |  | 8.9 |  |  | 6.7 |
Contributions made during the year | 10.0 |  |  | 10.0 |  |  | 8.8 |
Accrued pension cost at fiscal year end | $ | (4.0 | ) |  | $ | (5.7 | ) |  | $ | (6.8 | )
Years Ended October 31, (In millions) | 2016 |  | 2015 |  | 2014
Components of net periodic benefit cost and other amounts recognized in other comprehensive income |  |  |  |  |
Net periodic benefit cost: |  |  |  |  |
Service cost | $ | 8.9 |  |  | $ | 8.8 |  |  | $ | 7.1 |
Interest cost | 4.3 |  |  | 4.6 |  |  | 4.0 |
Expected return on plan assets | (6.6 | ) |  | (6.0 | ) |  | (5.0 | )
Amortization of transitional (asset) or obligation | — |  |  | — |  |  | — |
Amortization of prior service cost | — |  |  | — |  |  | — |
Recognized actuarial loss | 1.7 |  |  | 1.5 |  |  | 0.6 |
Net periodic pension cost | $ | 8.3 |  |  | $ | 8.9 |  |  | $ | 6.7 |
Years Ended October 31, (In millions) | 2016 |  | 2015 |  | 2014
Other changes in plan assets and benefit obligations recognized in other comprehensive income |  |  |  |  |
Net transition obligation | $ | — |  |  | $ | — |  |  | $ | — |
Prior service cost | — |  |  | — |  |  | — |
Net loss (gain) | 15.4 |  |  | 11.5 |  |  | 6.7 |
Amortizations of net transition obligation | — |  |  | — |  |  | — |
Amortizations of prior service cost | — |  |  | — |  |  | — |
Amortizations of net (gain) | (1.7 | ) |  | (1.5 | ) |  | (0.6 | )
Total recognized in other comprehensive income | $ | 13.7 |  |  | $ | 10.0 |  |  | $ | 6.1 |
Total recognized in net periodic benefit cost and other comprehensive income | $ | 22.0 |  |  | $ | 18.9 |  |  | $ | 12.8 |
There is no estimated net transition obligation or prior service cost, but $2.7 million of estimated net loss for the plan will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year.
Years Ended October 31, | 2016 |  | 2015 |  | 2014
Weighted-average assumptions used in computing the net periodic pension cost and projected benefit obligation at year end: |  |  |  |  |
Discount rate for determining net periodic pension cost: |  |  |  |  |
Projected Benefit Obligation | 4.25 | % |  | 4.25 | % |  | 4.75 | %
Service Cost | 4.42 | % |  | 4.25 | % |  | 4.75 | %
Interest Cost | 3.70 | % |  | 4.25 | % |  | 4.75 | %
Discount rate for determining benefit obligations at year end | 3.74 | % |  | 4.25 | % |  | 4.25 | %
Rate of compensation increase for determining expense | 4.00 | % |  | 4.00 | % |  | 4.00 | %
Rate of compensation increase for determining benefit obligations at year end | 4.00 | % |  | 4.00 | % |  | 4.00 | %
Expected rate of return on plan assets for determining net periodic pension cost | 8.00 | % |  | 8.00 | % |  | 8.00 | %
Expected rate of return on plan assets at year end | 8.00 | % |  | 8.00 | % |  | 8.00 | %
Measurement date for determining assets and benefit obligations at year end | 10/31/2016 |  |  | 10/31/2015 |  |  | 10/31/2014 |
The discount rate enables us to state expected future cash flows at a present value on the measurement date. The discount rate used for the plan is based primarily on the yields of a universe of high quality corporate bonds or the spot rate of high quality AA-rated corporate bonds, with durations corresponding to the expected durations of the benefit obligations. A change in the discount rate will cause the present value of benefit obligations to change in the opposite direction. If a discount rate of 4.25%, which is similar to prior fiscal year, had been used, the projected benefit obligation would have been $126.7 million, and the accumulated benefit obligation would have been $111.2 million. The expected rate of return on plan assets was determined based on a review of historical returns, both for this plan and for medium- to large-sized defined benefit pension funds with similar asset allocations. This review generated separate expected returns for each asset class listed below. These expected future returns were then blended based on this Plan's target asset allocation. Plan Assets Weighted-average asset allocations at year end, by asset category are as follows:
Years Ended October 31, | 2016 |  | 2015 |  | 2014
Asset category |  |  |  |  |
Cash and cash equivalents | 4.9 | % |  | 2.2 | % |  | 3.0 | %
Corporate common stock | 8.9 | % |  | 9.0 | % |  | 9.0 | %
Equity mutual funds | 47.2 | % |  | 52.0 | % |  | 52.1 | %
Real estate funds | 4.3 | % |  | 3.3 | % |  | 4.1 | %
Bond mutual funds | 34.7 | % |  | 33.5 | % |  | 31.8 | %
Total | 100.0 | % |  | 100.0 | % |  | 100.0 | %
The Plan invests in a diversified portfolio of assets intended to minimize risk of poor returns while maximizing expected portfolio returns. To achieve the long-term rate of return, plan assets will be invested in a mixture of instruments, including but not limited to, corporate common stock (may include the Company's stock), investment grade bond funds, cash, balanced funds, real estate funds, small or large cap equity funds and international equity funds. The allocation of assets will be determined by the investment manager, and will typically include 50% to 80% equities with the remainder invested in fixed income and cash. Presently, this diversified portfolio is expected to return roughly 8.0% in the long run. The expected rate of return on assets is 8.0%. Fair Value Measurement of Plan Assets
(In millions) | Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Asset category |  |  |  |  |  |  |
Cash and cash equivalents | $ | 4.4 |  |  | $ | 4.4 |  |  | $ | — |  |  | $ | — |
Corporate common stock | 8.0 |  |  | 8.0 |  |  | — |  |  | — |
Equity mutual funds | 42.1 |  |  | 42.1 |  |  | — |  |  | — |
Real estate funds | 3.8 |  |  | 3.8 |  |  | — |  |  | — |
Bond mutual funds | 30.9 |  |  | 30.9 |  |  | — |  |  | — |
Total | $ | 89.2 |  |  | $ | 89.2 |  |  | $ | — |  |  | $ | — |
The Plan has an established process for determining the fair value of plan assets. Fair value is based upon quoted market prices, as Level 1 inputs, where available. For our investments in equity and bond mutual funds, and real estate funds, fair value is based on observable, Level 1 inputs, as price quotes are available and the fair values of these funds were not impacted by liquidity restrictions or the fund status. Level 2 assets are those where price quotes are not readily available and the fair value would be determined based on other observable inputs. Level 3 assets are those where price quotes are not readily available and the fair value would be determined based on unobservable inputs. While we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Plan Cash Flows Contributions The Company contributions to the pension plan were $10.0 million, $10.0 million and $8.8 million for fiscal 2016, 2015 and 2014, respectively. We closely monitor the funded status of the Plan with respect to legislative and accounting rules. We expect to make contributions of about $10.0 million during fiscal 2017. Estimated Future Benefit Payments
Years (In millions) |
2017 | $ | 2.9 |
2018 | $ | 3.3 |
2019 | $ | 3.8 |
2020 | $ | 4.3 |
2021 | $ | 4.8 |
2022-2026 | $ | 32.8 |
Cooper's 401(k) Savings Plan Cooper's 401(k) savings plan provides for the deferral of compensation as described in the Internal Revenue Code and is available to substantially all United States employees. Employees who participate in the 401(k) plan may elect to have up to 75% of their pre-tax salary or wages deferred and contributed to the trust established under the plan. Cooper's contributions on account of participating employees, were $4.4 million, $4.2 million and $4.0 million for the years ended October 31, 2016, 2015 and 2014, respectively. International Pension Plans For our employees outside the United States, we also participate in country-specific defined contribution plans and government-sponsored retirement plans. The defined contribution plans are administered by third-party trustees and we are not directly responsible for providing benefits to participants of government-sponsored plans. The Company’s contributions to such plans are not significant individually or in the aggregate.

X
- References No definition available. + Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 80 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=65877416&loc=SL14450702-114947 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65897934&loc=d3e2410-114920 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6414203&loc=d3e39675-114964 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 70 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=49170846&loc=d3e28014-114942 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66047640&loc=d3e39622-114963 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration