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Employee Benefit Plans
 12 Months Ended
Sep. 30, 2023
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]  
Employee Benefit Plans Employee Benefit Plans
We maintain multiple employee benefit plans, covering employees at certain locations.
Our qualified U.S. defined benefit pension plan is not open to new entrants. New employees are not eligible to participate in the pension plan. Instead, we make contributions for those employees to an employee-directed investment fund in the Moog Inc. Retirement Savings Plan ("RSP"), which consists of two defined contribution options, the RSP and the RSP(+). Effective January 1, 2020, all employees hired prior to January 1, 2019 are eligible to either participate in the new RSP(+) or remain in the existing RSP. All employees hired after January 1, 2019 are automatically enrolled in the new RSP(+). The Company’s contributions to both the RSP and RSP(+) are based on a percentage of the employee’s eligible compensation and age and are in addition to the employer match on voluntary employee contributions.
The RSP and RSP(+) includes an employee stock ownership feature. As one of the investment alternatives, participants in the RSP and RSP(+) can acquire our stock at market value. Shares are allocated and compensation expense is recognized as the employer share match is earned. At September 30, 2023, the participants in the RSP and RSP(+) owned 1,814,252 Class B shares.
Expense for all defined contribution plans consists of:
202320222021
U.S. defined contribution plans$45,868 $43,550 $36,131 
Non-U.S. defined contribution plans8,650 8,157 8,890 
Total expense for defined contribution plans$54,518 $51,707 $45,021 
As of January 1, 2021, one of our non-U.S. defined benefit plans was replaced by a defined contribution plan. The transaction eliminated balance sheet exposure for the plan, reducing the projected benefit obligation by $63,333, the fair value of plan assets by $57,643 and resulted in a curtailment gain of $5,830.
The changes in projected benefit obligations and plan assets and the funded status of the U.S. and non-U.S. defined benefit plans are as follows:
  
U.S. PlansNon-U.S. Plans
  
2023202220232022
Change in projected benefit obligation:
Projected benefit obligation at prior year measurement date$530,946 $704,989 $127,739 $205,093 
Service cost12,913 19,827 2,674 4,248 
Interest cost28,112 18,246 5,448 2,413 
Contributions by plan participants— — 170 184 
Actuarial (gains) losses(17,701)(198,538)(5,874)(48,255)
Foreign currency exchange impact— — 8,838 (28,435)
Benefits paid(17,391)(12,845)(6,514)(5,136)
Settlements(40,518)— (2,146)(2,312)
Other(1,485)(733)(161)(61)
Projected benefit obligation at measurement date$494,876 $530,946 $130,174 $127,739 
Change in plan assets:
Fair value of assets at prior year measurement date$445,723 $640,513 $90,994 $127,766 
Actual return on plan assets20 (186,536)1,828 (17,686)
Employer contributions6,095 5,324 7,455 8,210 
Contributions by plan participants— — 170 184 
Benefits paid(17,391)(12,845)(6,514)(5,136)
Settlements(40,518)— (2,146)(2,312)
Foreign currency exchange impact— — 5,558 (19,971)
Other(1,485)(733)(161)(61)
Fair value of assets at measurement date$392,444 $445,723 $97,184 $90,994 
Funded status and amount recognized in assets and liabilities$(102,432)$(85,223)$(32,990)$(36,745)
Amount recognized in assets and liabilities:
Long-term assets$— $— $13,647 $10,672 
Current and long-term pension liabilities(102,432)(85,223)(46,637)(47,417)
Amount recognized in assets and liabilities$(102,432)$(85,223)$(32,990)$(36,745)
Amount recognized in AOCIL, before taxes:
Prior service cost (credit)$— $— $737 $724 
Actuarial losses145,536 160,659 10,726 13,209 
Amount recognized in AOCIL, before taxes$145,536 $160,659 $11,463 $13,933 
On September 26, 2023, we made a lump sum payment to certain retirees and beneficiaries in our qualified U.S. defined benefit pension plan. The settlement reduced the projected benefit obligation and fair value of assets by $40,518 and resulted in a one-time settlement charge of $12,542.
Our funding policy is to contribute at least the amount required by law in the respective countries.
The total accumulated benefit obligation as of the measurement date for all defined benefit pension plans was $587,754 in 2023 and $611,225 in 2022. At the measurement date in 2023, our plans had fair values of plan assets totaling $489,628. The following table provides aggregate information for the pension plans, which have accumulated benefit obligations in excess of plan assets:
September 30, 2023October 1, 2022
Accumulated benefit obligation$138,054 $130,315 
Fair value of plan assets13,107 11,231 
The following table provides aggregate information for the pension plans, which have projected benefit obligations in excess of plan assets:
September 30, 2023October 1, 2022
Projected benefit obligation$583,029 $615,339 
Fair value of plan assets433,960 482,700 
Weighted-average assumptions used to determine net periodic benefit cost and weighted-average assumptions used to determine benefit obligations as of the measurement dates are as follows:
  
U.S. PlansNon-U.S. Plans
  
202320222021202320222021
Assumptions for net periodic benefit cost:
Service cost discount rate5.5 %3.3 %3.1 %4.5 %2.0 %1.5 %
Interest cost discount rate5.4 %2.7 %2.6 %4.5 %1.7 %1.2 %
Return on assets6.5 %5.0 %5.0 %4.3 %2.9 %3.2 %
Rate of compensation increase3.8 %3.5 %3.3 %3.2 %3.0 %2.6 %
Assumptions for benefit obligations:
Discount rate5.9 %5.5 %3.2 %4.7 %4.4 %1.8 %
Rate of compensation increase3.8 %3.8 %3.5 %3.2 %3.1 %2.8 %
Pension plan investment policies and strategies are developed on a plan specific basis, which varies by country. The overall objective for the long-term expected return on both domestic and international plan assets is to earn a rate of return over time to meet anticipated benefit payments in accordance with plan provisions. The long-term investment objective of both the domestic and international retirement plans is to maintain the economic value of plan assets and future contributions by producing positive rates of investment return after subtracting inflation, benefit payments and expenses. Each of the plan’s strategic asset allocations is based on this long-term perspective and short-term fluctuations are viewed with appropriate perspective.
The U.S. qualified defined benefit plan’s assets are invested for long-term investment results. To accommodate the long-term investment horizon while providing appropriate liquidity, the plan maintains a liquid cash reserve sufficient to allow the plan to meet its benefit payment, fee and expense obligations. Its assets are broadly diversified to help alleviate the risk of adverse returns in any one security or investment class. The international plans’ assets are invested in both low-risk and high-risk investments in order to achieve the long-term investment strategy objective. Investment risks for both domestic and international plans are considered within the context of the entire asset allocation, rather than on a security-by-security basis.
The U.S. qualified defined benefit plan and certain international plans have investment committees that are responsible for formulating investment policies, developing manager guidelines and objectives and approving and managing qualified advisors and investment managers. The guidelines established for each of the plans define permitted investments within each asset class and apply certain restrictions such as limits on concentrated holdings in order to meet overall investment objectives.
Pension obligations and the related costs are determined using actuarial valuations that involve several assumptions. The return on assets assumption reflects the average rate of return expected on funds invested or to be invested to provide for the benefits included in the projected benefit obligation. In determining the return on assets assumption, we consider the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance. Asset management objectives include maintaining an adequate level of diversification to reduce interest rate and market risk and to provide adequate liquidity to meet immediate and future benefit payment requirements.
In determining our U.S. pension expense for 2023, we assumed an average rate of return on U.S. pension assets of approximately 6.5% measured over a planning horizon with reasonable and acceptable levels of risk. The rate of return was based on the actual asset allocation of 30% in equity securities and 70% in fixed income securities at October 1, 2022. In determining our non-U.S. pension expense for 2023, we assumed an average rate of return on non-U.S. pension assets of approximately 4.3% measured over a planning horizon with reasonable and acceptable levels of risk. The rate of return assumed an average asset allocation of 40% in equity securities and 60% in fixed income securities and other investments.
The weighted average asset allocations by asset category for the pension plans as of September 30, 2023 and October 1, 2022 are as follows:
  
U.S. PlansNon-U.S. Plans
  
Target2023
Actual		2022
Actual		Target2023
Actual		2022
Actual
Asset category:
Equity35%-45%40%30%20%-40%25%26%
Fixed Income55%-65%60%70%50%-70%68%65%
Other—%—%—%5%-15%7%9%
The valuation methodologies used for pension plan assets measured at fair value have been applied consistently.
Shares of registered investment companies: Consists of both equity and fixed income mutual funds. Valued at quoted market prices that represent the net asset value ("NAV") of shares held by the plan at year end.

Equity securities: Traded on national exchanges are valued at the last reported sales price. Investments denominated in foreign currencies are translated into U.S. dollars using the last reported exchange rate.

Fixed income securities: Valued using methods, such as dealer quotes, available trade information, spreads, bids and offers provided by a pricing vendor.

Money market funds: Institutional short-term investment vehicles valued daily.

Cash and cash equivalents: Direct cash holdings valued at cost (Level 1) or cash collateral for the initial margin requirements on futures contracts (Level 2) which approximates fair value.

Collective investment trust: NAV of the fund is calculated daily or weekly by the investment manager.

Unit linked life insurance funds: NAV value of the fund is calculated daily by the investment manager.

Investment in insurance contracts: Valued at contract value, which is the fair value of the underlying investment of the insurance company.
Limited partnerships: Valued at NAV of units held. The NAV is used as a practical expedient to estimate fair value. The NAV is based on the fair value of the underlying investments held by the fund less its liability. This practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different from the reported NAV.
Securities or other assets for which market quotations are not readily available or for which market quotations do not represent the value at the time of pricing (including certain illiquid securities) are fair valued in accordance with procedures established under the supervision and responsibility of the Trustee of that investment. Such procedures may include the use of independent pricing services or affiliated advisor pricing, which use prices based upon yields or prices of securities of comparable quality, coupon, maturity and type, indications as to values from dealers, operating data and general market conditions.
The following tables present the consolidated plan assets using the fair value hierarchy, which is described in Note 13 - Fair Value, as of September 30, 2023 and October 1, 2022.
U.S. Plans, September 30, 2023
Level 1
Level 2
Level 3
Total
Investments at fair value:
Shares of registered investment companies:
Equity funds$143,528 $— $— $143,528 
Fixed income funds125,724 — — 125,724 
Money market funds— 9,386 — 9,386 
Cash and cash equivalents— 8,410 — 8,410 
Total investments in fair value hierarchy269,252 17,796 — 287,048 
Investments measured at NAV practical expedient (1)105,396 
Total investments at fair value$269,252 $17,796 $— $392,444 
Non-U.S. Plans, September 30, 2023Level 1Level 2Level 3Total
Investments at fair value:
Mutual funds:
Equity funds$— $6,346 $— $6,346 
Fixed income funds— 6,567 — 6,567 
Equity securities6,694 — — 6,694 
Fixed income securities— 19,045 — 19,045 
Collective investment trusts— 19,044 — 19,044 
Unit linked life insurance funds— 35,988 — 35,988 
Money market funds— 904 — 904 
Cash and cash equivalents978 — — 978 
Insurance contracts and other— — 1,618 1,618 
Total investments at fair value$7,672 $87,894 $1,618 $97,184 
U.S. Plans, October 1, 2022Level 1Level 2Level 3Total
Investments at fair value:
Shares of registered investment companies:
Equity funds$116,598 $— $— $116,598 
Fixed income funds180,291 — — 180,291 
Money market funds— 7,144 — 7,144 
Cash and cash equivalents— 5,790 — 5,790 
Total investments in fair value hierarchy
296,889 12,934 — 309,823 
Investments measured at NAV practical expedient (1)135,900 
Total investments at fair value$296,889 $12,934 $— $445,723 
Non-U.S. Plans, October 1, 2022Level 1Level 2Level 3Total
Investments at fair value:
Mutual funds:
Equity funds$— $5,091 $— $5,091 
Fixed income funds— 6,020 — 6,020 
Equity securities5,739 — — 5,739 
Fixed income securities— 18,515 — 18,515 
Collective investment trusts— 17,229 — 17,229 
Unit linked life insurance funds— 35,089 — 35,089 
Money market funds— 840 — 840 
Cash and cash equivalents465 — — 465 
Insurance contracts and other
— — 2,006 2,006 
Total investments at fair value$6,204 $82,784 $2,006 $90,994 
(1)Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the total retirement plan assets.
The following is a roll forward of the consolidated plan assets classified as Level 3 within the fair value hierarchy:
  
  
Non-U.S. Plans
Balance at October 2, 2021$2,991 
Return on assets36 
Purchases from contributions to Plans1,430 
Settlements paid in cash(1,801)
Foreign currency translation
(650)
Balance at October 1, 20222,006 
Return on assets23 
Purchases from contributions to Plans2,310 
Settlements paid in cash(2,684)
Foreign currency translation(37)
Balance at September 30, 2023$1,618 
The following table summarizes investments measured at fair value based on NAV per share as of September 30, 2023:
Fair Value
September 30, 2023October 1, 2022Unfunded CommitmentsRedemption FrequencyRedemption Notice Period
Collective investment trusts$92,140 $119,470 $— Daily5 days
Limited partnerships (1)13,256 16,430 3,799 Varies10-45 days
Total$105,396 $135,900 $3,799 
(1)Investments in limited partnerships held by us invest primarily in emerging markets, equity and equity related securities. The strategy for the partnerships is to have exposure to certain markets or to securities that are judged to achieve superior earnings growth and/or judged undervalued relative to intrinsic value.
The preceding methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although we believe the 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 fair value measurement at the reporting date.
Expense for defined benefit plans is as follows:
  
U.S. PlansNon-U.S. Plans
202320222021202320222021
Service cost$12,913 $19,827 $22,488 $2,674 $4,248 $5,290 
Interest cost28,112 18,246 17,103 5,448 2,413 2,277 
Expected return on plan assets(28,589)(29,803)(30,543)(4,244)(3,401)(4,102)
Amortization of prior service cost— — — 55 58 45 
Amortization of actuarial loss13,449 15,586 13,721 399 3,877 5,568 
Curtailment gain— — — — — (5,830)
Settlement (gain) loss12,542 — — (151)280 (44)
Total expense for defined benefit plans
$38,427 $23,856 $22,769 $4,181 $7,475 $3,204 
Benefits expected to be paid to the participants of the plans are:
 
U.S. Plans
Non-U.S. Plans
2024$19,653 $6,479 
202522,702 6,743 
202625,438 7,920 
202727,999 7,115 
202830,434 8,865 
Five years thereafter182,979 42,211 
We presently anticipate contributing approximately $6,200 to the SERP Trust for the non-qualified plan and $7,500 to the non-U.S. plans in 2024.
We provide postretirement health care benefits to certain domestic retirees, who were hired prior to October 1, 1989. There are no plan assets. The changes in the accumulated benefit obligation of this unfunded plan for 2023 and 2022 are shown in the following table:
September 30, 2023October 1, 2022
Change in Accumulated Postretirement Benefit Obligation (APBO):
APBO at prior year measurement date$3,674 $6,281 
Service cost16 33 
Interest cost166 90 
Contributions by plan participants453 559 
Benefits paid(903)(478)
Actuarial (gains) losses(566)(2,811)
APBO at measurement date$2,840 $3,674 
Funded status$(2,840)$(3,674)
Accrued postretirement benefit liability$2,840 $3,674 
Amount recognized in AOCIL, before taxes:
Actuarial gains5,252 7,579 
Amount recognized in AOCIL, before taxes$5,252 $7,579 
The cost of the postretirement benefit plan is as follows:
202320222021
Service cost$16 $33 $52 
Interest cost166 90 124 
Amortization of actuarial gain(2,321)(1,274)(513)
Net periodic postretirement benefit income$(2,139)$(1,151)$(337)
As of the measurement date, the assumed discount rate used in the accounting for the postretirement benefit obligation was 5.6% in 2023, 5.2% in 2022 and 2.5% in 2021. The assumed service cost discount rate and interest cost discount rate used in the accounting for the net periodic postretirement benefit cost were 5.1% and 5.1%, respectively in 2023, 2.7% and 1.5%, respectively in 2022 and 2.5% and 1.4%, respectively in 2021.
For measurement purposes, a 7.3% annual per capita rate of increase of medical and drug costs were assumed for 2024, gradually decreasing to 4.5% for 2035 and years thereafter.
Employee and management profit sharing reflects a discretionary payment based on our financial performance. Profit share expense was $38,702, $32,993 and $34,257 in 2023, 2022 and 2021, respectively.