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Retirement, Pension and Other Postretirement Plans | 12 Months Ended
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Oct. 31, 2023
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 2023, 2022 and 2021 was approximately $29,511, $26,635 and $22,983, 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. During the second quarter of 2022, we completed a partial plan settlement transaction in regards to two of our U.S. pension plans in which plan assets amounting to $171,181 were used to purchase a group annuity contract from The Prudential Insurance Company of America ("Prudential"). The settlement resulted in a loss of $41,221, which is included in Pension settlement charge for U.S. Plans on the Consolidated Statements of Income. This transaction relieved the Company of its responsibility for the pension obligation related to certain retired employees and transferred the obligation and payment responsibility to Prudential for retirement benefits owed to approximately 1,500 retirees and other beneficiaries. The annuity contract covered retirees who commenced receiving benefits on or before November 1, 2021. The monthly retirement benefit payment amounts currently received by retirees and their beneficiaries did not change as a result of this transaction. Plan participants not included in the transaction remain in the plans and responsibility for payment of the retirement benefits remains with the Company. 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 States |  | International
| 2023 |  | 2022 |  | 2023 |  | 2022
Change in benefit obligation: |  |  |  |  |  |  |
Benefit obligation at beginning of year | $ | 303,520 |  |  | $ | 627,271 |  |  | $ | 60,880 |  |  | $ | 106,049 |
Service cost | 10,973 |  |  | 16,820 |  |  | 1,096 |  |  | 1,693 |
Interest cost | 16,699 |  |  | 14,486 |  |  | 2,513 |  |  | 1,105 |
Participant contributions | — |  |  | — |  |  | 79 |  |  | 72 |
Settlements | (1,499) |  |  | (171,181) |  |  | (607) |  |  | (1,446) |
Curtailments | — |  |  | (2,715) |  |  | (2) |  |  | (705) |
Foreign currency exchange rate change | — |  |  | — |  |  | 3,566 |  |  | (14,291) |
Actuarial (gain) loss | (4,120) |  |  | (165,697) |  |  | (2,361) |  |  | (29,414) |
Benefits paid | (6,387) |  |  | (15,464) |  |  | (2,351) |  |  | (2,183) |
Benefit obligation at end of year | $ | 319,186 |  |  | $ | 303,520 |  |  | $ | 62,813 |  |  | $ | 60,880 |
Change in plan assets: |  |  |  |  |  |  |
Beginning fair value of plan assets | $ | 333,851 |  |  | $ | 639,589 |  |  | $ | 38,316 |  |  | $ | 47,274 |
Actual return on plan assets | (6,307) |  |  | (121,912) |  |  | 117 |  |  | 301 |
Company contributions | 2,018 |  |  | 2,819 |  |  | 2,429 |  |  | 2,381 |
Participant contributions | — |  |  | — |  |  | 79 |  |  | 72 |
Settlements | (1,499) |  |  | (171,181) |  |  | (607) |  |  | (1,446) |
Foreign currency exchange rate change | — |  |  | — |  |  | 1,880 |  |  | (8,083) |
Benefits paid | (6,387) |  |  | (15,464) |  |  | (2,351) |  |  | (2,183) |
Ending fair value of plan assets | $ | 321,676 |  |  | $ | 333,851 |  |  | $ | 39,863 |  |  | $ | 38,316 |
Funded status at end of year | $ | 2,490 |  |  | $ | 30,331 |  |  | $ | (22,950) |  |  | $ | (22,564) |
Amounts recognized in financial statements: |  |  |  |  |  |  |
Noncurrent asset | $ | 11,473 |  |  | $ | 41,548 |  |  | $ | 9,991 |  |  | $ | 7,588 |
Accrued benefit liability | (1,494) |  |  | (813) |  |  | (5) |  |  | (5) |
Long-term pension obligations | (7,489) |  |  | (10,404) |  |  | (32,936) |  |  | (30,147) |
Total amount recognized in financial statements | $ | 2,490 |  |  | $ | 30,331 |  |  | $ | (22,950) |  |  | $ | (22,564) |
The net actuarial gain included in the projected benefit obligation for the United States pension plans for 2023 was primarily due to higher discount rates partially offset by losses due to demographic experience. The net actuarial gain included in the projected benefit obligation for the United States pension plans for 2022 was primarily due to higher discount rates partially offset by an increase in the compensation increase assumption. Amounts recognized in accumulated other comprehensive loss (income):
| United States |  | International
| 2023 |  | 2022 |  | 2023 |  | 2022
Net actuarial loss (gain) | $ | 102,506 |  |  | $ | 74,293 |  |  | $ | (3,122) |  |  | $ | (2,280) |
Prior service cost (credit) | — |  |  | — |  |  | (91) |  |  | (133) |
Accumulated other comprehensive loss (income) | $ | 102,506 |  |  | $ | 74,293 |  |  | $ | (3,213) |  |  | $ | (2,413) |
The following table summarizes the changes in accumulated other comprehensive loss (income):
| United States |  | International
| 2023 |  | 2022 |  | 2023 |  | 2022
Balance at beginning of year | $ | 74,293 |  |  | $ | 142,118 |  |  | $ | (2,413) |  |  | $ | 28,736 |
Net loss (gain) arising during the year | 28,303 |  |  | (16,010) |  |  | (943) |  |  | (28,234) |
Net (gain) recognized during the year | — |  |  | (7,504) |  |  | (79) |  |  | (2,278) |
Prior service adjustment recognized during the year | — |  |  | (48) |  |  | 50 |  |  | 104 |
Settlement (gain) loss | (90) |  |  | (41,548) |  |  | 425 |  |  | 29 |
Curtailment (gain) loss | — |  |  | (2,715) |  |  | 2 |  |  | 1,406 |
Exchange rate effect during the year | — |  |  | — |  |  | (255) |  |  | (2,176) |
Balance at end of year | $ | 102,506 |  |  | $ | 74,293 |  |  | $ | (3,213) |  |  | $ | (2,413) |
Information regarding the funded status of the Company's plans is as follows:
| United States |  | International
| 2023 |  | 2022 |  | 2023 |  | 2022
For plans with accumulated benefit obligation in excess of plan assets: |  |  |  |  |  |  |
Accumulated benefit obligation | $ | 8,703 |  |  | $ | 10,555 |  |  | $ | 36,413 |  |  | $ | 32,514 |
Fair value of plan assets | — |  |  | — |  |  | 5,115 |  |  | 4,724 |
For plans with projected benefit obligation in excess of plan assets: |  |  |  |  |  |  |
Projected benefit obligation | 8,983 |  |  | 11,217 |  |  | 38,039 |  |  | 34,931 |
Fair value of plan assets | — |  |  | — |  |  | 5,115 |  |  | 4,778 |
Net periodic pension costs include the following components:
| United States |  | International
| 2023 |  | 2022 |  | 2021 |  | 2023 |  | 2022 |  | 2021
Service cost | $ | 10,973 |  |  | $ | 16,820 |  |  | $ | 22,555 |  |  | $ | 1,096 |  |  | $ | 1,693 |  |  | $ | 2,120 |
Interest cost | 16,699 |  |  | 14,486 |  |  | 13,652 |  |  | 2,513 |  |  | 1,105 |  |  | 887 |
Expected return on plan assets | (26,116) |  |  | (27,776) |  |  | (28,410) |  |  | (1,532) |  |  | (1,430) |  |  | (1,585) |
Amortization of prior service credit | — |  |  | 48 |  |  | (64) |  |  | (50) |  |  | (104) |  |  | (303) |
Amortization of net actuarial loss | — |  |  | 7,504 |  |  | 14,885 |  |  | 79 |  |  | 2,278 |  |  | 3,144 |
Settlement loss (gain) | 90 |  |  | 41,548 |  |  | 4,111 |  |  | (425) |  |  | (29) |  |  | 32 |
Curtailment gain | — |  |  | — |  |  | — |  |  | (2) |  |  | (2,112) |  |  | — |
Total benefit cost | $ | 1,646 |  |  | $ | 52,630 |  |  | $ | 26,729 |  |  | $ | 1,679 |  |  | $ | 1,401 |  |  | $ | 4,295 |
Net periodic pension cost for 2023 included a settlement gain of $335 due to lump sum retirement payments. Net periodic pension cost for 2022 and 2021 included settlement losses of $298 and $4,143, respectively, due to lump sum retirement payments. Net periodic pension cost for 2022 included a curtailment gain of $2,112 due to the freeze of an international defined benefit plan. The components of net periodic pension cost other than service cost are included in Pension settlement charge for U.S. Plans and Other – net in our Consolidated Statements of Income. The weighted average assumptions used in the valuation of pension benefits were as follows:
| United States |  | International
| 2023 |  | 2022 |  | 2021 |  | 2023 |  | 2022 |  | 2021
Assumptions used to determine benefit obligations at October 31: |  |  |  |  |  |  |  |  |  |  |
Discount rate | 6.08 | % |  | 5.70 | % |  | 3.02 | % |  | 4.35 | % |  | 3.78 | % |  | 1.30 | %
Rate of compensation increase | 3.92 |  |  | 4.30 |  |  | 4.00 |  |  | 2.96 |  |  | 3.44 |  |  | 2.90 |
Assumptions used to determine net benefit costs for the years ended October 31: |  |  |  |  |  |  |  |  |  |  |
Discount rate - benefit obligation | 5.70 |  |  | 3.02 |  |  | 2.85 |  |  | 3.78 |  |  | 1.30 |  |  | 1.01 |
Discount rate - service cost | 5.89 |  |  | 3.42 |  |  | 3.30 |  |  | 2.88 |  |  | 1.14 |  |  | 0.93 |
Discount rate - interest cost | 5.37 |  |  | 2.35 |  |  | 2.10 |  |  | 3.85 |  |  | 1.37 |  |  | 0.80 |
Expected return on plan assets | 6.40 |  |  | 5.75 |  |  | 5.75 |  |  | 3.75 |  |  | 3.29 |  |  | 3.31 |
Rate of compensation increase | 3.87 |  |  | 4.00 |  |  | 4.00 |  |  | 3.44 |  |  | 2.90 |  |  | 2.69 |
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 2023, 2022 and 2021 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. The international plans include a cash balance plan with promised interest crediting rates. The weighted average crediting rates were 0.70%, 0.60% and 0.50% for 2023, 2022 and 2021, respectively. Net actuarial gains or losses are amortized to expense on a plan-by-plan basis when exceeding the accounting corridor, which is set at 10 percent of the greater of the plan assets or benefit obligations. Gains or losses within the corridor remain in other comprehensive income and are retested in subsequent measurements. 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, 2023 and 2022 is as follows:
| United States |  | International
| 2023 |  | 2022 |  | 2023 |  | 2022
Asset Category |  |  |  |  |  |  |
Equity securities | 3 | % |  | 3 | % |  | — | % |  | — | %
Debt securities | 43 |  |  | 42 |  |  | — |  |  | — |
Insurance contracts | — |  |  | — |  |  | 31 |  |  | 47 |
Pooled investment funds | 53 |  |  | 54 |  |  | 67 |  |  | 51 |
Other | 1 |  |  | 1 |  |  | 2 |  |  | 2 |
Total | 100 | % |  | 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 89 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 2023, the target in “return-seeking assets” is 30 percent and 70 percent in longer duration fixed income assets. Plan assets are diversified across multiple 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 guidelines established with each investment manager. Our international plans comprise 11 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, 2023 by asset category are in the table below:
| United States |  | International
| Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3
Cash | $ | 355 |  |  | $ | 355 |  |  | $ | — |  |  | $ | — |  |  | $ | 777 |  |  | $ | 777 |  |  | $ | — |  |  | $ | — |
Money market funds | 251 |  |  | 251 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic materials | 632 |  |  | 632 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Consumer goods | 1,614 |  |  | 1,614 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Financial | 1,787 |  |  | 1,787 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Healthcare | 1,368 |  |  | 1,368 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Industrial goods | 1,403 |  |  | 1,403 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Technology | 1,732 |  |  | 1,732 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government | 42,269 |  |  | 753 |  |  | 41,516 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Corporate | 94,650 |  |  | — |  |  | 94,650 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other | 2,640 |  |  | — |  |  | 2,640 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other types of investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Insurance contracts | — |  |  | — |  |  | — |  |  | — |  |  | 12,224 |  |  | — |  |  | — |  |  | 12,224 |
Other | 2,092 |  |  | 2,092 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total investments in the fair value hierarchy | $ | 150,793 |  |  | $ | 11,987 |  |  | $ | 138,806 |  |  | $ | — |  |  | $ | 13,001 |  |  | $ | 777 |  |  | $ | — |  |  | $ | 12,224 |
Investments measured at Net Asset Value: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate collective funds | 42,780 |  |  |  |  |  |  |  |  | — |  |  |  |  |  |  |
Pooled investment funds | 128,103 |  |  |  |  |  |  |  |  | 26,862 |  |  |  |  |  |  |
Total Investments at Fair Value | $ | 321,676 |  |  |  |  |  |  |  |  | $ | 39,863 |  |  |  |  |  |  |
The fair values of our pension plan assets at October 31, 2022 by asset category are in the table below:
| United States |  | International
| Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3
Cash | $ | 381 |  |  | $ | 381 |  |  | $ | — |  |  | $ | — |  |  | $ | 775 |  |  | $ | 775 |  |  | $ | — |  |  | $ | — |
Money market funds | 155 |  |  | 155 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic materials | 719 |  |  | 719 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Consumer goods | 1,802 |  |  | 1,802 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Financial | 1,489 |  |  | 1,489 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Healthcare | 1,801 |  |  | 1,801 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Industrial goods | 1,713 |  |  | 1,713 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Technology | 1,569 |  |  | 1,569 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government | 29,252 |  |  | 328 |  |  | 28,924 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Corporate | 109,433 |  |  | — |  |  | 109,433 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other | 2,964 |  |  | — |  |  | 2,964 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other types of investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Insurance contracts | — |  |  | — |  |  | — |  |  | — |  |  | 18,066 |  |  | — |  |  | — |  |  | 18,066 |
Other | 1,474 |  |  | 1,474 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total investments in the fair value hierarchy | $ | 152,752 |  |  | $ | 11,431 |  |  | $ | 141,321 |  |  | $ | — |  |  | $ | 18,841 |  |  | $ | 775 |  |  | $ | — |  |  | $ | 18,066 |
Investments measured at Net Asset Value: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate collective funds | 51,961 |  |  |  |  |  |  |  |  | — |  |  |  |  |  |
Pooled investment funds | 129,138 |  |  |  |  |  |  |  |  | 19,475 |  |  |  |  |  |  |
Total Investments at Fair Value | $ | 333,851 |  |  |  |  |  |  |  |  | $ | 38,316 |  |  |  |  |  |  |
These investment funds did not own a significant number of Nordson Corporation common shares for any year presented. The inputs and methodology used to measure fair value of plan assets are consistent with those described in Note 11. 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 value 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, 2023 and 2022 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 |  |
Beginning balance at October 31, 2022 | $ | 18,066 |  |  |
Actual return on plan assets: |  |  |
Purchases | 1,320 |  |  |
Sales | (8,007) |  |  |
Settlements | (607) |  |  |
Unrealized losses | 266 |  |  |
Foreign currency translation | 1,186 |  |  |
Ending balance at October 31, 2023 | $ | 12,224 |  |  |
| Fair Value Measurements Using Significant Unobservable Inputs (Level 3) |  |  |  |  |  |  |  |
| Insurance contracts |  |  |  |  |  |  |  |  |  |
Beginning balance at October 31, 2021 | $ | 23,993 |  |  |  |  |  |  |  |  |  |  |
Actual return on plan assets: |  |  |  |  |  |  |  |  |  |  |
Purchases | 1,525 |  |  |  |  |  |  |  |  |  |  |
Sales | (1,519) |  |  |  |  |  |  |  |  |  |  |
Settlements | (1,446) |  |  |  |  |  |  |  |  |  |  |
Unrealized losses | (254) |  |  |  |  |  |  |  |  |  |  |
Foreign currency translation | (4,233) |  |  |  |  |  |  |  |  |  |  |
Ending balance at October 31, 2022 | $ | 18,066 |  |  |  |  |  |  |  |  |  |  |
Contributions to pension plans in 2024 are estimated to be approximately $3,962. Retiree pension benefit payments, which include expected future service, are anticipated to be paid as follows:
Year |  | United States |  | International
2024 |  | $ | 9,620 |  |  | $ | 2,716 |
2025 |  | 11,828 |  |  | 3,082 |
2026 |  | 12,922 |  |  | 4,930 |
2027 |  | 14,992 |  |  | 3,740 |
2028 |  | 17,055 |  |  | 3,533 |
2029-2033 |  | 112,222 |  |  | 19,527 |
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 States |  | International
| 2023 |  | 2022 |  | 2023 |  | 2022
Change in benefit obligation: |  |  |  |  |  |  |
Benefit obligation at beginning of year | $ | 59,851 |  |  | $ | 85,290 |  |  | $ | 183 |  |  | $ | 416 |
Service cost | 399 |  |  | 687 |  |  | 5 |  |  | 12 |
Interest cost | 3,063 |  |  | 1,923 |  |  | 11 |  |  | 12 |
Participant contributions | 614 |  |  | 687 |  |  | — |  |  | — |
Foreign currency exchange rate change | — |  |  | — |  |  | 10 |  |  | (37) |
Actuarial (gain) loss | (7,301) |  |  | (25,513) |  |  | 35 |  |  | (215) |
Benefits paid | (3,193) |  |  | (3,223) |  |  | (8) |  |  | (5) |
Benefit obligation at end of year | $ | 53,433 |  |  | $ | 59,851 |  |  | $ | 236 |  |  | $ | 183 |
Change in plan assets: |  |  |  |  |  |  |
Beginning fair value of plan assets | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Company contributions | 2,579 |  |  | 2,536 |  |  | 8 |  |  | 5 |
Participant contributions | 614 |  |  | 687 |  |  | — |  |  | — |
Benefits paid | (3,193) |  |  | (3,223) |  |  | (8) |  |  | (5) |
Ending fair value of plan assets | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Funded status at end of year | $ | (53,433) |  |  | $ | (59,851) |  |  | $ | (236) |  |  | $ | (183) |
Amounts recognized in financial statements: |  |  |  |  |  |  |
Accrued benefit liability | $ | (2,800) |  |  | $ | (3,224) |  |  | $ | (7) |  |  | $ | (6) |
Long-term postretirement obligations | (50,633) |  |  | (56,627) |  |  | (229) |  |  | (177) |
Total amount recognized in financial statements | $ | (53,433) |  |  | $ | (59,851) |  |  | $ | (236) |  |  | $ | (183) |
| United States |  | International
| 2023 |  | 2022 |  | 2023 |  | 2022
Amounts recognized in accumulated other comprehensive (gain) loss: |  |  |  |  |  |  |
Net actuarial (gain) loss | $ | (12,336) |  |  | $ | (5,035) |  |  | $ | (540) |  |  | $ | (661) |
Accumulated other comprehensive (gain) loss | $ | (12,336) |  |  | $ | (5,035) |  |  | $ | (540) |  |  | $ | (661) |
The following table summarizes the changes in accumulated other comprehensive (gain) loss:
| United States |  | International
| 2023 |  | 2022 |  | 2023 |  | 2022
Balance at beginning of year | $ | (5,035) |  |  | $ | 21,456 |  |  | $ | (661) |  |  | $ | (543) |
Net (gain) loss arising during the year | (7,301) |  |  | (25,513) |  |  | 35 |  |  | (217) |
Net gain (loss) recognized during the year | — |  |  | (978) |  |  | 62 |  |  | 51 |
Exchange rate effect during the year | — |  |  | — |  |  | 24 |  |  | 48 |
Balance at end of year | $ | (12,336) |  |  | $ | (5,035) |  |  | $ | (540) |  |  | $ | (661) |
Net postretirement benefit costs include the following components:
| United States |  | International
| 2023 |  | 2022 |  | 2021 |  | 2023 |  | 2022 |  | 2021
Service cost | $ | 399 |  |  | $ | 687 |  |  | $ | 778 |  |  | $ | 5 |  |  | $ | 12 |  |  | $ | 15 |
Interest cost | 3,063 |  |  | 1,923 |  |  | 1,805 |  |  | 11 |  |  | 12 |  |  | 12 |
Amortization of prior service credit | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Amortization of net actuarial (gain) loss | — |  |  | 978 |  |  | 1,359 |  |  | (62) |  |  | (48) |  |  | (41) |
Total benefit cost (credit) | $ | 3,462 |  |  | $ | 3,588 |  |  | $ | 3,942 |  |  | $ | (46) |  |  | $ | (24) |  |  | $ | (14) |
The components of net postretirement benefit 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 postretirement benefits were as follows:
| United States |  | International
| 2023 |  | 2022 |  | 2021 |  | 2023 |  | 2022 |  | 2021
Assumptions used to determine benefit obligations at October 31: |  |  |  |  |  |  |  |  |  |  |
Discount rate | 6.02 | % |  | 5.59 | % |  | 2.98 | % |  | 5.63 | % |  | 5.41 | % |  | 3.43 | %
Health care cost trend rate | 3.40 |  |  | 3.50 |  |  | 3.34 |  |  | 4.86 |  |  | 4.65 |  |  | 4.43 |
Rate to which health care cost trend rate is assumed to incline/decline (ultimate trend rate) | 3.16 |  |  | 3.19 |  |  | 3.15 |  |  | 4.05 |  |  | 4.05 |  |  | 4.05 |
Year the rate reaches the ultimate trend rate | 2032 |  | 2032 |  | 2031 |  | 2040 |  | 2040 |  | 2040
Assumption used to determine net benefit costs for the years ended October 31: |  |  |  |  |  |  |  |  |  |  |
Discount rate benefit obligation | 5.59 | % |  | 2.98 | % |  | 2.84 | % |  | 5.41 | % |  | 3.43 | % |  | 2.94 | %
Discount rate service cost | 6.00 |  |  | 3.55 |  |  | 3.44 |  |  | 5.41 |  |  | 3.48 |  |  | 3.00 |
Discount rate interest cost | 5.22 |  |  | 2.30 |  |  | 2.08 |  |  | 5.38 |  |  | 3.13 |  |  | 2.60 |
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 exceeding 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. Contributions to postretirement plans in 2024 are estimated to be approximately $2,808. Retiree postretirement benefit payments are anticipated to be paid as follows:
Year | United States |  | International
2024 | $ | 2,801 |  |  | $ | 7 |
2025 | 2,958 |  |  | 7 |
2026 | 3,125 |  |  | 7 |
2027 | 3,295 |  |  | 7 |
2028 | 3,416 |  |  | 7 |
2029-2034 | 18,791 |  |  | 58 |

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