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Retirement Plans | 12 Months Ended
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Sep. 30, 2021
Retirement Benefits [Abstract] |
Pension and Other Postretirement Benefits Disclosure | Retirement Plans Defined Benefit Plans. We have had various pension plans (“Pension Plans”), which we funded in accordance with their requirements and, where applicable, in amounts sufficient to satisfy the minimum funding requirements of applicable laws. The Pension Plans provided benefits based on years of service and compensation or at stated amounts for each year of service. The annual measurement date for all Pension Plans was September 30. After September 30, 2019, our only remaining defined benefit plan was our United States Pension Plan (“Plan”). During 2019, we settled our obligations to our Canadian pension plan participants through a combination of lump-sum payments and purchases of annuities. We made a net contribution to the plans of $0.7 million, which was included in pension costs other than service, to fund these settlements. As a result, we no longer have any plan assets or obligation in connection with any Canadian defined benefit pension plan. During 2018, under terms of a negotiated labor contract, a group of our collectively bargained employees are no longer accruing benefits under a multi-employer pension plan. The affected employees are now participants in our defined contribution retirement plan with an employer match and one-time contribution of $0.4 million, which vested through 2020. During 2019, we recorded and paid an estimated settlement liability for exiting this plan, which resulted in an expense of $1.1 million, which we included in Strategic reorganization and other charges. As a result, we no longer have any plan assets or obligation in connection with any multi-employer pension plan. A summary of key assumptions for the valuations of our Pension Plans is as follows
| 2021 |  | 2020 |  | 2019
Weighted average used to determine benefit obligations: |  |  |  |  |
Discount rate | 3.01 | % |  | 2.84 | % |  | 3.26 | %
Weighted average used to determine net periodic cost: |  |  |  |  |
Discount rate | 2.84 | % |  | 3.26 | % |  | 4.37 | %
Expected return on plan assets | 4.50 | % |  | 5.00 | % |  | 4.93 | %
The discount rates for determining the present value of pension obligations were selected using a “bond settlement” approach, which constructs a hypothetical bond portfolio that could be purchased such that the coupon payments and maturity values could be used to satisfy the projected benefit payments. The discount rate is the equivalent rate that results in the present value of the projected benefit payments equaling the market value of this bond portfolio. Only high quality (AA graded or higher), non-callable corporate bonds are included in this bond portfolio. We rely on the Pension Plans’ actuaries to assist in the development of the discount rate model. The expected returns on plan assets were determined with the assistance of the Pension Plans’ actuaries and investment consultants. Expected returns on plan assets were developed using forward looking returns over a time horizon of 10 to 15 years for major asset classes along with projected risk and historical correlations. Amounts recognized for Pension Plans are presented below.
| 2021 |  | 2020
| (in millions)
Projected benefit obligations: |  |  |
Beginning of year | $ | 359.5 |  |  | $ | 356.6 |
Service cost | 1.5 |  |  | 1.5 |
Interest cost | 9.9 |  |  | 11.2 |
Actuarial gain | (10.8) |  |  | 13.7 |
Benefits paid | (23.3) |  |  | (23.5) |
End of year | $ | 336.8 |  |  | $ | 359.5 |
Accumulated benefit obligations at end of year | $ | 336.8 |  |  | $ | 359.5 |
Plan assets: |  |  |
Beginning of year | $ | 360.4 |  |  | $ | 351.6 |
Actual return on plan assets | 16.4 |  |  | 32.2 |
Employer contributions | — |  |  | 0.1 |
Benefits paid | (23.3) |  |  | (23.5) |
End of year | $ | 353.5 |  |  | $ | 360.4 |
Accrued benefit cost at end of year: |  |  |
Funded status | $ | 16.8 |  |  | $ | 0.9 |
Recognized on balance sheet: |  |  |
Other noncurrent assets | $ | 16.8 |  |  | $ | 0.9 |
Recognized in accumulated other comprehensive income (loss), before tax: |  |  |
Net actuarial loss | 59.9 |  |  | 74.0 |
| $ | 59.9 |  |  | $ | 74.0 |
The components of net periodic benefit cost for our Pension Plans are presented below.
| 2021 |  | 2020 |  | 2019 |  |  |  |
| (in millions)
Service cost | $ | 1.5 |  |  | $ | 1.5 |  |  | $ | 1.6 |  |  |  |  |
Components of net periodic cost (benefit) excluded from operating income: |  |  |  |  |  |  |  |  |
Interest cost | 9.9 |  |  | 11.2 |  |  | 13.9 |  |  |  |  |
Expected return on plan assets | (15.7) |  |  | (16.9) |  |  | (16.2) |  |  |  |  |
Amortization of actuarial net loss | 2.5 |  |  | 2.8 |  |  | 1.9 |  |  |  |  |
Pension settlement | — |  |  | — |  |  | 0.7 |  |  |  |  |
Other | — |  |  | (0.1) |  |  | 0.1 |  |  |  |  |
Pension (benefit) cost other than service | (3.3) |  |  | (3.0) |  |  | 0.4 |  |  |  |  |
Net periodic benefit (benefit) cost | $ | (1.8) |  |  | $ | (1.5) |  |  | $ | 2.0 |  |  |  |  |
Plan activity in accumulated other comprehensive loss, before tax, in 2021 is presented below, in millions.
Balance at beginning of year | $ | 74.0 |
Actuarial gain | (11.6) |
Prior year actuarial loss amortization to net periodic cost | (2.5) |
Balance at end of year | $ | 59.9 |
We amortize amounts in accumulated other comprehensive loss representing unrecognized prior year service cost and unrecognized loss related to the Pension Plans over the weighted average life expectancy of their inactive participants. Actuarial gains and losses are amortized using a corridor approach. The gain/loss corridor is equal to 10% of the greater of the benefit obligation and the market-related value of assets. Gains and losses in excess of the corridor are generally amortized over the average remaining lifetime of the plan participants. We expect to amortize $1.7 million of unrecognized loss into net periodic benefit cost from accumulated other comprehensive loss in 2022. Strategic asset allocations, tactical range at September 30, 2021 and actual asset allocations are as follows:
| Strategic asset allocation |  |  |  |  |  |  | Actual asset allocations at
|  |  |  |  |  |  | September 30,
|  | Tactical range |  | 2021 |  | 2020 |  | 2019
Fixed income investments | 70 | % |  | 65 |  | - | 70 | % |  |  | 70 | % |  | 78 | % |  | 79 | %
Equity investments | 30 |  |  | 25 |  | - | 30 | % |  |  | 29 |  |  | 21 |  |  | 19 |
Cash | — |  |  | 0 |  | - | 5 | % |  |  | 1 |  |  | 1 |  |  | 2 |
| 100 | % |  |  |  |  |  |  | 100 | % |  | 100 | % |  | 100 | %
Assets of the Plan are allocated to various investments to attain diversification and reasonable risk-adjusted returns while also managing the exposure to asset and liability volatility. These ranges are targets and deviations may occur from time to time as a result of market fluctuations. Portfolio assets are typically rebalanced to the allocation targets at least annually. The assets of the Plan are primarily invested in investment trusts valued at net asset value, which in turn hold fixed income and equity investments. The valuation methodologies used to measure the assets of the Plan at fair value are: •Fixed income fund investments held by the investment trusts are valued using the closing price reported in the active market in which the investment is traded or based on yields currently available on comparable securities of issuers with similar credit ratings; •Equity investments held by the investment trusts are valued using the closing price reported on the active market when reliable market quotations are readily available. When market quotations are not readily available, these assets are valued by a method the trustees believe accurately reflects fair value; and •Mutual funds are valued at the closing price reported on the active market. The assets of the Plan by level within the fair value hierarchy are as follows:
| September 30, 2021
| Level 1 |  | Level 2 |  |  |  | Total
| (in millions)
Fixed income | $ | 176.7 |  |  | $ | 70.3 |  |  |  |  | $ | 247.0 |
Equity: |  |  |  |  |  |  |
Large cap index funds | 52.1 |  |  | — |  |  |  |  | 52.1 |
International stocks: |  |  |  |  |  |  |
International funds | 52.5 |  |  | — |  |  |  |  | 52.5 |
Total equity | 104.6 |  |  | — |  |  |  |  | 104.6 |
Cash and cash equivalents | 1.9 |  |  | — |  |  |  |  | 1.9 |
| $ | 283.2 |  |  | $ | 70.3 |  |  |  |  | $ | 353.5 |
| September 30, 2020
| Level 1 |  | Level 2 |  |  |  | Total
| (in millions)
Fixed income | $ | — |  |  | $ | 280.3 |  |  |  |  | $ | 280.3 |
Equity: |  |  |  |  |  |  |
Large cap index funds | — |  |  | 32.8 |  |  |  |  | 32.8 |
Mid cap index funds | — |  |  | 13.5 |  |  |  |  | 13.5 |
Small cap growth funds | — |  |  | 12.7 |  |  |  |  | 12.7 |
International stocks: |  |  |  |  |  |  |
Mutual funds | 7.4 |  |  | — |  |  |  |  | 7.4 |
International funds | — |  |  | 10.4 |  |  |  |  | 10.4 |
Total equity | 7.4 |  |  | 69.4 |  |  |  |  | 76.8 |
Cash and cash equivalents | 3.3 |  |  | — |  |  |  |  | 3.3 |
| $ | 10.7 |  |  | $ | 349.7 |  |  |  |  | $ | 360.4 |
Our estimated future pension benefit payments are presented below (in millions).
2022 | $ | 24.1 |
2023 | 23.9 |
2024 | 23.5 |
2025 | 23.1 |
2026 | 22.7 |
2027-2031 | $ | 104.7 |
Defined Contribution Retirement Plans. Certain of our employees participate in defined contribution 401(k) plans or similar plans outside of the United States. We make matching contributions as a function of employee contributions which were $5.9 million, $5.3 million and $5.5 million during 2021, 2020 and 2019, respectively.

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