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Retirement, Pension and Other Postretirement Plans
 12 Months Ended
Oct. 31, 2020
Retirement Benefits [Abstract]  
Retirement, Pension and Other Postretirement Plans Retirement, pension and other postretirement plans
Retirement plans — We have funded contributory retirement plans covering certain employees. Our contributions are primarily determined by the terms of the plans, subject to the limitation that they shall not exceed the amounts deductible for income tax purposes. We also sponsor unfunded contributory supplemental retirement plans for certain employees. Generally, benefits under these plans vest gradually over a period of approximately three years from date of employment, and are based on the employee’s contribution. The expense applicable to retirement plans for 2020, 2019 and 2018 was approximately $20,265, $22,573 and $22,634, respectively.
Pension plans — We have various pension plans covering a portion of our United States and international employees. Pension plan benefits are generally based on years of employment and, for salaried employees, the level of compensation. Actuarially determined amounts are contributed to United States plans to provide sufficient assets to meet future benefit payment requirements. We also sponsor an unfunded supplemental pension plan for certain employees. International subsidiaries fund their pension plans according to local requirements.
A reconciliation of the benefit obligations, plan assets, accrued benefit cost and the amount recognized in financial statements for pension plans is as follows:
United StatesInternational
2020201920202019
Change in benefit obligation:    
Benefit obligation at beginning of year$551,997 $425,605 $97,990 $87,227 
Service cost20,635 14,587 2,099 1,933 
Interest cost15,824 18,304 1,025 1,670 
Participant contributions— — 83 83 
Plan amendments— — — 186 
Settlements(4,992)— — (3,018)
Foreign currency exchange rate change— — 2,814 106 
Actuarial loss47,788 107,662 2,729 11,852 
Benefits paid(15,484)(14,161)(1,891)(2,049)
Benefit obligation at end of year$615,768 $551,997 $104,849 $97,990 
Change in plan assets:
Beginning fair value of plan assets$448,931 $361,073 $39,640 $39,617 
Actual return on plan assets41,712 76,700 3,697 707 
Company contributions40,083 25,319 3,365 3,696 
Participant contributions— — 83 83 
Settlements(4,992)— — (3,018)
Foreign currency exchange rate change— — 582 604 
Benefits paid(15,484)(14,161)(1,891)(2,049)
Ending fair value of plan assets$510,250 $448,931 $45,476 $39,640 
Funded status at end of year$(105,518)$(103,066)$(59,373)$(58,350)
Amounts recognized in financial statements:
Noncurrent asset$3,162 $2,171 $3,321 $1,375 
Accrued benefit liability(5,211)(6,435)(634)(21)
Long-term pension obligations(103,469)(98,802)(62,060)(59,704)
Total amount recognized in financial statements$(105,518)$(103,066)$(59,373)$(58,350)
 
 United StatesInternational
 2020201920202019
Amounts recognized in accumulated other comprehensive (gain) loss:
Net actuarial loss$192,593 $178,390 $32,097 $33,826 
Prior service credit(16)(100)(2,137)(2,342)
Accumulated other comprehensive loss$192,577 $178,290 $29,960 $31,484 
Amounts expected to be recognized during next fiscal year:
Amortization of net actuarial loss$14,297 $13,591 $3,049 $2,945 
Amortization of prior service credit(81)(84)(299)(288)
Total$14,216 $13,507 $2,750 $2,657 
The following table summarizes the changes in accumulated other comprehensive loss: 
United StatesInternational
2020201920202019
Balance at beginning of year$178,290 $130,627 $31,484 $20,460 
Net loss arising during the year30,743 54,304 305 12,737 
Prior service cost arising during the year— — — 186 
Net gain recognized during the year(14,032)(6,702)(2,972)(1,696)
Prior service credit recognized during the year84 61 290 303 
Settlement loss(2,508)— — (470)
Exchange rate effect during the year— — 853 (36)
Balance at end of year$192,577 $178,290 $29,960 $31,484 
Information regarding the accumulated benefit obligation is as follows:
United StatesInternational
2020201920202019
For all plans:
Accumulated benefit obligation$571,036 $513,861 $96,252 $83,439 
For plans with benefit obligations in excess of plan assets:
Projected benefit obligation553,403 491,816 92,775 86,534 
Accumulated benefit obligation508,671 453,681 85,189 73,293 
Fair value of plan assets444,723 386,580 30,797 27,769 
Net periodic pension costs include the following components:
United StatesInternational
202020192018202020192018
Service cost$20,635 $14,587 $13,052 $2,099 $1,933 $2,048 
Interest cost15,824 18,304 14,797 1,025 1,670 1,656 
Expected return on plan assets(24,667)(23,341)(21,964)(1,273)(1,592)(1,512)
Amortization of prior service cost (credit)(84)(61)(22)(290)(303)(316)
Amortization of net actuarial loss14,032 6,702 9,479 2,972 1,696 2,115 
Settlement loss2,508 — — — 470 252 
Total benefit cost$28,248 $16,191 $15,342 $4,533 $3,874 $4,243 
Net periodic pension cost for 2020, 2019 and 2018 included a settlement loss of $2,508, $470 and $252, respectively, due to lump sum retirement payments.
The components of net periodic pension cost other than service cost are included in Other – net in our Consolidated Statements of Income.
The weighted average assumptions used in the valuation of pension benefits were as follows:
United StatesInternational
202020192018202020192018
Assumptions used to determine benefit obligations at October 31:
Discount rate2.85 %3.25 %4.53 %1.01 %1.26 %2.14 %
Rate of compensation increase4.00 4.00 3.90 2.69 3.12 3.12 
Assumptions used to determine net benefit costs for the years ended October 31:
Discount rate - benefit obligation3.25 4.53 3.80 1.26 2.14 2.07 
Discount rate - service cost3.56 4.70 4.01 1.12 1.82 1.76 
Discount rate - interest cost2.78 4.15 3.31 1.05 1.90 1.83 
Expected return on plan assets5.75 6.00 6.00 3.22 3.96 3.91 
Rate of compensation increase4.00 3.90 3.61 3.12 3.12 3.13 
The amortization of prior service cost is determined using a straight-line amortization of the cost over the average remaining service period of employees expected to receive benefits under the plans.
The discount rate reflects the current rate at which pension liabilities could be effectively settled at the end of the year. The discount rate used considers a yield derived from matching projected pension payments with maturities of a portfolio of available bonds that receive the highest rating given from a recognized investments ratings agency. The changes in the discount rates in 2020, 2019, and 2018 are due to changes in yields for these types of investments as a result of the economic environment.
In determining the expected return on plan assets using the calculated value of plan assets, we consider both historical performance and an estimate of future long-term rates of return on assets similar to those in our plans. We consult with and consider the opinions of financial and other professionals in developing appropriate return assumptions. The rate of compensation increase is based on management’s estimates using historical experience and expected increases in rates.
Net actuarial gains or losses are amortized to expense on a plan-by-plan basis when they exceed the accounting corridor, which is set at 10 percent of the greater of the plan assets or benefit obligations. Gains or losses outside of the corridor are subject to amortization over an average employee future service period that differs by plan. If substantially all of the plan’s participants are no longer actively accruing benefits, the average life expectancy is used.  
The allocation of pension plan assets as of October 31, 2020 and 2019 is as follows:
 United StatesInternational
 2020201920202019
Asset Category
Equity securities11 %11 %— %— %
Debt securities49 53 — — 
Insurance contracts— — 54 54 
Pooled investment funds39 35 44 45 
Other1 1 2 1 
Total100 %100 %100 %100 %
Our investment objective for defined benefit plan assets is to meet the plans’ benefit obligations, while minimizing the potential for future required plan contributions.
Our United States plans comprise 92 percent of the Company's worldwide pension assets. In general, the investment strategies focus on asset class diversification, liquidity to meet benefit payments and an appropriate balance of long-term investment return and risk. Target ranges for asset allocations are determined by dynamically matching the actuarial projections of the plans’ future liabilities and benefit payments with expected long-term rates of return on the assets, taking into account investment return volatility and correlations across asset classes. For 2020, the target in “return-seeking assets” is 30 percent and 70 percent in fixed income assets. Plan assets are diversified across several investment managers and are invested in liquid funds that are selected to track broad market indices. Investment risk is carefully controlled with plan assets rebalanced to target allocations on a periodic basis and continual monitoring of investment managers’ performance relative to the investment guidelines established with each investment manager.
Our international plans comprise 8 percent of the Company's worldwide pension assets. Asset allocations are developed on a country-specific basis. Our investment strategy is to cover pension obligations with insurance contracts or to employ independent managers to invest the assets.
The fair values of our pension plan assets at October 31, 2020 by asset category are in the table below:
United StatesInternational
TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Cash$1,331 $1,331 $— $— $759 $759 $— $— 
Money market funds5,059 5,059 — — — — — — 
Equity securities:
Basic materials1,750 1,750 — — — — — — 
Consumer goods5,024 5,024 — — — — — — 
Financial4,745 4,745 — — — — — — 
Healthcare4,518 4,518 — — — — — — 
Industrial goods3,588 3,588 — — — — — — 
Technology5,706 5,706 — — — — — — 
Utilities685 685 — — — — — — 
Mutual funds24,266 24,266 — — — — — — 
Fixed income securities:
U.S. Government71,855 8,267 63,588 — — — — — 
Corporate173,046 — 173,046 — — — — — 
Other6,673 — 6,673 — — — — — 
Other types of investments:
Insurance contracts— — — — 24,496 — — 24,496 
Other845 845 — — — — — — 
Total investments in the fair value hierarchy$309,091 $65,784 $243,307 $— $25,255 $759 $— $24,496 
Investments measured at Net Asset Value:
Real estate collective funds38,996 — 
Pooled investment funds162,163 20,221 
Total Investments at Fair Value$510,250 $45,476 
The fair values of our pension plan assets at October 31, 2019 by asset category are in the table below:
United StatesInternational
TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Cash$1,208 $1,208 $— $— $441 $441 $— $— 
Money market funds5,566 5,566 — — — — — — 
Equity securities:
Basic materials2,318 2,318 — — — — — — 
Consumer goods4,412 4,412 — — — — — — 
Financial6,120 6,120 — — — — — — 
Healthcare4,460 4,460 — — — — — — 
Industrial goods3,152 3,152 — — — — — — 
Technology5,064 5,064 — — — — — — 
Utilities937 937 — — — — — — 
Mutual funds19,674 19,674 — — — — — — 
Fixed income securities:
U.S.  Government83,025 13,094 69,931 — — — — — 
Corporate151,607 — 151,607 — — — — — 
Other5,051 — 5,051 — — — — — 
Other types of investments:
Insurance contracts— — — — 21,245 — — 21,245 
Other1,101 1,101 — — — — — — 
Total investments in the fair value hierarchy$293,695 $67,106 $226,589 $— $21,686 $441 $— $21,245 
Investments measured at Net Asset Value:
Real estate collective funds33,917 —
Pooled investment funds121,319 17,954 
Total Investments at Fair Value$448,931 $39,640 
These investment funds did not own a significant number of shares of Nordson Corporation common stock for any year presented.
The inputs and methodology used to measure fair value of plan assets are consistent with those described in Note 12. Following are the valuation methodologies used to measure these assets:
•Money market funds - Money market funds are public investment vehicles that are valued with a net asset value of one dollar. This is a quoted price in an active market and is classified as Level 1.
•Equity securities - Common stocks and mutual funds are valued at the closing price reported on the active market on which the individual securities are traded and are classified as Level 1.
•Fixed income securities - U.S. Treasury bills reflect the closing price on the active market in which the securities are traded and are classified as Level 1. Securities of U.S. agencies are valued using bid evaluations and are classified as Level 2. Corporate fixed income securities are valued using evaluated prices, such as dealer quotes, bids and offers and are therefore classified as Level 2.
•Insurance contracts - Insurance contracts are investments with various insurance companies. The contract value represents the best estimate of fair value. These contracts do not hold any specific assets. These investments are classified as Level 3.
•Real estate collective funds – These funds are valued using the net asset value of the underlying properties. Net asset value is calculated using a combination of key inputs, such as revenue and expense growth rates, terminal capitalization rates and discount rates.
•Pooled investment funds - These are public investment vehicles valued using the net asset value. The net asset value is based on the value of the assets owned by the plan, less liabilities. These investments are not quoted on an active exchange.
The following tables present an analysis of changes during the years ended October 31, 2020 and 2019 in Level 3 plan assets, by plan asset class, for U.S. and international pension plans using significant unobservable inputs to measure fair value:
Fair Value Measurements
Using Significant Unobservable
Inputs (Level 3)
Insurance
contracts		Total
Beginning balance at October 31, 2019$21,245 $21,245 
Actual return on plan assets:
Assets held, end of year1,739 1,739 
Assets sold during the period— — 
Purchases2,462 2,462 
Sales(1,495)(1,495)
Foreign currency translation545 545 
Ending balance at October 31, 2020$24,496 $24,496 
Fair Value Measurements
Using Significant Unobservable
Inputs (Level 3)
Insurance
contracts		Total
Beginning balance at October 31, 2018$21,645 $21,645 
Actual return on plan assets:
Assets held, end of year913 913 
Assets sold during the period— — 
Purchases2,431 2,431 
Sales(4,102)(4,102)
Foreign currency translation358 358 
Ending balance at October 31, 2019$21,245 $21,245 
Contributions to pension plans in 2021 are estimated to be approximately $43,721.
Retiree pension benefit payments, which reflect expected future service, are anticipated to be paid as follows:
YearUnited StatesInternational
2021$23,045 $3,488 
202220,262 3,042 
202321,686 3,069 
202423,213 3,527 
202525,209 3,721 
2026-2030150,280 19,949 
Other postretirement plans - We sponsor an unfunded postretirement health care benefit plan covering certain of our United States employees. Employees hired after January 1, 2002, are not eligible to participate in this plan.  For eligible retirees under the age of 65 who enroll in the plan, the plan is contributory in nature, with retiree contributions in the form of premiums that are adjusted annually. For eligible retirees age 65 and older who enroll in the plan, the plan delivers a benefit in the form of a Health Reimbursement Account (HRA), which retirees use for eligible reimbursable expenses, including premiums paid for purchase of a Medicare supplement plan or other out-of-pocket medical expenses such as deductibles or co-pays.
A reconciliation of the benefit obligations, accrued benefit cost and the amount recognized in financial statements for other postretirement plans is as follows:
 United StatesInternational
 2020201920202019
Change in benefit obligation:    
Benefit obligation at beginning of year$88,660 $72,010 $454 $512 
Service cost666 545 15 16 
Interest cost2,345 2,984 13 19 
Participant contributions611 684 — — 
Foreign currency exchange rate change— — (5)(1)
Actuarial (gain) loss(2,024)15,101 (26)(86)
Benefits paid(2,613)(2,664)(6)(6)
Benefit obligation at end of year$87,645 $88,660 $445 $454 
Change in plan assets:
Beginning fair value of plan assets$— $— $— $— 
Company contributions2,002 1,980 6 6 
Participant contributions611 684 — — 
Benefits paid(2,613)(2,664)(6)(6)
Ending fair value of plan assets$— $— $— $— 
Funded status at end of year$(87,645)$(88,660)$(445)$(454)
Amounts recognized in financial statements:
Accrued benefit liability$(2,835)$(2,740)$(6)$(6)
Long-term postretirement obligations(84,810)(85,920)(439)(448)
Total amount recognized in financial statements$(87,645)$(88,660)$(445)$(454)
 United StatesInternational
 2020201920202019
Amounts recognized in accumulated other comprehensive (gain) loss:
Net actuarial (gain) loss$25,614 $28,992 $(466)$(482)
Prior service credit— (16)— — 
Accumulated other comprehensive (gain) loss$25,614 $28,976 $(466)$(482)
Amounts expected to be recognized during next fiscal year:
Amortization of net actuarial (gain) loss$1,388 $1,674 $(39)$(37)
Amortization of prior service credit— (16)— — 
Total$1,388 $1,658 $(39)$(37)
The following table summarizes the changes in accumulated other comprehensive (gain) loss:
 United StatesInternational
 2020201920202019
Balance at beginning of year$28,976 $14,483 $(482)$(423)
Net (gain) loss arising during the year(2,024)15,101 (26)(86)
Net gain (loss) recognized during the year(1,355)(634)36 28 
Prior service credit recognized during the year17 26 — — 
Exchange rate effect during the year— — 6 (1)
Balance at end of year$25,614 $28,976 $(466)$(482)
Net postretirement benefit costs include the following components:
 United StatesInternational
 202020192018202020192018
Service cost$666 $545 $709 $15 $16 $20 
Interest cost2,345 2,984 2,557 13 19 20 
Amortization of prior service credit(17)(26)(99)— — — 
Amortization of net actuarial (gain) loss1,355 634 1,079 (36)(28)(20)
Total benefit cost (credit)$4,349 $4,137 $4,246 $(8)$7 $20 
The weighted average assumptions used in the valuation of postretirement benefits were as follows:
 United StatesInternational
 202020192018202020192018
Assumptions used to determine benefit obligations at October 31:
Discount rate2.84 %3.27 %4.56 %2.94 %3.03 %3.88 %
Health care cost trend rate3.40 3.62 3.75 4.22 4.00 6.35 
Rate to which health care cost trend rate is assumed to incline/decline (ultimate trend rate)3.17 3.24 3.27 4.05 4.05 3.50 
Year the rate reaches the ultimate trend rate202620262026204020402037
Assumption used to determine net benefit costs for the years ended October 31:
Discount rate benefit obligation3.27 %4.56 %3.86 %3.03 %3.88 %3.52 %
Discount rate service cost3.61 4.77 4.11 3.05 3.90 3.54 
Discount rate interest cost2.79 4.18 3.39 2.88 3.80 3.40 
The weighted average health care trend rates reflect expected increases in the Company’s portion of the obligation.
Net actuarial gains or losses are amortized to expense on a plan-by-plan basis when they exceed the accounting corridor, which is set at 10 percent of the greater of the plan assets or benefit obligations. Gains or losses outside of the corridor are subject to amortization over an average employee future service period that differs by plan. If substantially all of the plan’s participants are no longer actively accruing benefits, the average life expectancy is used.
A one-percentage point change in the assumed health care cost trend rate would have the following effects. Bracketed numbers represent decreases in expense and obligation amounts.
United StatesInternational
1% Point
Increase		1% Point
Decrease		1% Point
Increase		1% Point
Decrease
Health care trend rate:
Effect on total net postretirement benefit cost components in 2020$431 $(345)$7 $(5)
Effect on postretirement obligation as of October 31, 2020$11,019 $(9,100)$103 $(80)
Contributions to postretirement plans in 2021 are estimated to be approximately $2,800.
Retiree postretirement benefit payments are anticipated to be paid as follows:
YearUnited StatesInternational
2021$2,835 $6 
20223,047 6 
20233,238 6 
20243,444 6 
20253,623 6 
2026-203020,133 46