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POST RETIREMENT BENEFIT PLANS | 12 Months Ended
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Oct. 31, 2012
POST RETIREMENT BENEFIT PLANS | NOTE 13 – POST RETIREMENT BENEFIT PLANS Defined Benefit Pension Plans The Company has certain non-contributory defined benefit pension plans in the United States, Canada, Germany, the Netherlands, South Africa and the United Kingdom. The Company uses a measurement date of October 31 for fair value purposes for its pension plans. The salaried plans’ benefits are based primarily on years of service and earnings. The hourly plans’ benefits are based primarily upon years of service. Certain benefit provisions are subject to collective bargaining. The Company contributes an amount that is not less than the minimum funding or more than the maximum tax-deductible amount to these plans. Salaried employees in the United States who commence service on or after November 1, 2007 and in various dates in the preceding five years for the non-U.S. plans will not be eligible to participate in the defined benefit pension plans, but will participate in a defined contribution retirement program. The category “Other International” represents the noncontributory defined benefit pension plans in Canada and South Africa. Pension plan contributions by the Company totaled $18.0 million, $32.6 million, and $23.0 million during 2012, 2011 and 2010, respectively. Contributions during 2013 are expected to be approximately $13.1 million. The following table presents the number of participants in the defined benefit plans:
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other |
October 31, 2012 |  | Consolidated |  |  | USA |  |  | Germany |  |  | United Kingdom |  |  | Netherlands |  |  | International |
Active participants |  |  | 2,402 |  |  |  | 2,004 |  |  |  | 127 |  |  |  | 158 |  |  |  | 48 |  |  |  | 65 |
Vested former employees |  |  | 3,660 |  |  |  | 2,913 |  |  |  | 63 |  |  |  | 418 |  |  |  | 249 |  |  |  | 17 |
Retirees and beneficiaries |  |  | 4,043 |  |  |  | 2,210 |  |  |  | 248 |  |  |  | 726 |  |  |  | 804 |  |  |  | 55 |
Other plan participants |  |  | 35 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 35 |  |  |  | 0 |
October 31, 2011 |  | Consolidated |  |  | USA |  |  | Germany |  |  | United Kingdom |  |  | Netherlands |  |  | Other Intl |
Active participants |  |  | 2,507 |  |  |  | 2,113 |  |  |  | 125 |  |  |  | 158 |  |  |  | 46 |  |  |  | 65 |
Vested former employees |  |  | 3,581 |  |  |  | 2,923 |  |  |  | 68 |  |  |  | 418 |  |  |  | 154 |  |  |  | 18 |
Retirees and beneficiaries |  |  | 3,749 |  |  |  | 2,142 |  |  |  | 245 |  |  |  | 726 |  |  |  | 583 |  |  |  | 53 |
Other plan participants |  |  | 1 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1 |  |  |  | 0 |
The actuarial assumptions at October 31 are used to measure the year-end benefit obligations and the pension costs for the subsequent year were as follows:
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other |
For the year ended October 31, 2012 |  | Consolidated |  |  | United States |  |  | Germany |  |  | United Kingdom |  |  | Netherlands |  |  | International |
Discount rate |  |  | 3.92 | % |  |  | 4.00 | % |  |  | 3.50 | % |  |  | 4.25 | % |  |  | 3.25 | % |  |  | 4.89 | %
Expected return on plan assets |  |  | 6.46 | % |  |  | 6.75 | % |  |  | N/A |  |  |  | 6.75 | % |  |  | 5.00 | % |  |  | 6.55 | %
Rate of compensation increase |  |  | 2.99 | % |  |  | 3.00 | % |  |  | 2.75 | % |  |  | 3.50 | % |  |  | 2.25 | % |  |  | 2.29 | %
For the year ended October 31, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Discount rate |  |  | 4.94 | % |  |  | 4.90 | % |  |  | 5.25 | % |  |  | 5.00 | % |  |  | 5.00 | % |  |  | 5.55 | %
Expected return on plan assets |  |  | 7.20 | % |  |  | 8.25 | % |  |  | N/A |  |  |  | 7.50 | % |  |  | 4.25 | % |  |  | 6.60 | %
Rate of compensation increase |  |  | 3.13 | % |  |  | 3.00 | % |  |  | 2.75 | % |  |  | 4.00 | % |  |  | 2.25 | % |  |  | 2.70 | %
For the year ended October 31, 2010 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Discount rate |  |  | 5.20 | % |  |  | 5.50 | % |  |  | 5.00 | % |  |  | 5.25 | % |  |  | 4.25 | % |  |  | 5.44 | %
Expected return on plan assets |  |  | 7.50 | % |  |  | 8.25 | % |  |  | N/A |  |  |  | 7.50 | % |  |  | 6.00 | % |  |  | 6.68 | %
Rate of compensation increase |  |  | 3.11 | % |  |  | 3.00 | % |  |  | 2.75 | % |  |  | 4.00 | % |  |  | 2.25 | % |  |  | 3.01 | %
To determine the expected long-term rate of return on pension plan assets, we consider current and expected asset allocations, as well as historical and expected returns on various categories of plan assets. In developing future return expectations for our defined benefit pension plans’ assets, we formulate views on the future economic environment, both in the U.S. and abroad. We evaluate general market trends and historical relationships among a number of key variables that impact asset class returns, such as expected earnings growth, inflation, valuations, yields and spreads, using both internal and external sources. We also take into account expected volatility by asset class and diversification across classes to determine expected overall portfolio results given current and expected allocations. Based on our analysis of future expectations of asset performance, past return results, and our current and expected asset allocations, we have assumed a 6.5% long-term expected return on those assets for cost recognition in 2012. For the defined benefit pension plans, we apply our expected rate of return to a market-related value of assets, which stabilizes variability in the amounts to which we apply that expected return. We amortize experience gains and losses as well as the effects of changes in actuarial assumptions and plan provisions over a period no longer than the average future service of employees. Benefit Obligations The components of net periodic pension cost include the following (Dollars in millions):
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other |
For the year ended October 31, 2012 |  | Consolidated |  |  | United States |  |  | Germany |  |  | United Kingdom |  |  | Netherlands |  |  | International |
Service cost |  | $ | 13.4 |  |  | $ | 10.0 |  |  | $ | 0.4 |  |  | $ | 2.1 |  |  | $ | 0.5 |  |  | $ | 0.4 |
Interest cost |  |  | 29.6 |  |  |  | 16.6 |  |  |  | 1.4 |  |  |  | 7.0 |  |  |  | 3.9 |  |  |  | 0.7 |
Expected return on plan assets |  |  | (33.9 | ) |  |  | (17.6 | ) |  |  | — |  |  |  | (11.8 | ) |  |  | (3.6 | ) |  |  | (0.9 | )
Amortization of prior service cost |  |  | 1.5 |  |  |  | 1.5 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Recognized net actuarial loss |  |  | 11.4 |  |  |  | 9.9 |  |  |  | 0.1 |  |  |  | 0.6 |  |  |  | 0.4 |  |  |  | 0.4 |
Net periodic pension cost |  |  | 22.0 |  |  |  | 20.4 |  |  |  | 1.9 |  |  |  | (2.1 | ) |  |  | 1.2 |  |  |  | 0.6 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other |
For the year ended October 31, 2011 |  | Consolidated |  |  | United States |  |  | Germany |  |  | United Kingdom |  |  | Netherlands |  |  | International |
Service cost |  | $ | 12.7 |  |  | $ | 9.0 |  |  | $ | 0.5 |  |  | $ | 2.1 |  |  | $ | 0.7 |  |  | $ | 0.4 |
Interest cost |  |  | 29.6 |  |  |  | 16.6 |  |  |  | 1.4 |  |  |  | 7.1 |  |  |  | 3.9 |  |  |  | 0.6 |
Expected return on plan assets |  |  | (36.8 | ) |  |  | (19.7 | ) |  |  | — |  |  |  | (12.7 | ) |  |  | (3.7 | ) |  |  | (0.7 | )
Amortization of prior service cost |  |  | 1.9 |  |  |  | 1.9 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Recognized net actuarial loss |  |  | 8.4 |  |  |  | 7.1 |  |  |  | 0.1 |  |  |  | 0.4 |  |  |  | 0.4 |  |  |  | 0.4 |
Net periodic pension cost |  | $ | 15.8 |  |  | $ | 14.9 |  |  | $ | 2.0 |  |  | $ | (3.1 | ) |  | $ | 1.3 |  |  | $ | 0.7 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other |
For the year ended October 31, 2010 |  | Consolidated |  |  | United States |  |  | Germany |  |  | United Kingdom |  |  | Netherlands |  |  | International |
Service cost |  | $ | 12.7 |  |  | $ | 9.2 |  |  | $ | 0.4 |  |  | $ | 2.3 |  |  | $ | 0.4 |  |  | $ | 0.4 |
Interest cost |  |  | 29.3 |  |  |  | 16.0 |  |  |  | 1.4 |  |  |  | 7.0 |  |  |  | 4.3 |  |  |  | 0.6 |
Expected return on plan assets |  |  | (34.8 | ) |  |  | (18.1 | ) |  |  | — |  |  |  | (11.6 | ) |  |  | (4.4 | ) |  |  | (0.7 | )
Amortization of transition net asset |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Amortization of prior service cost |  |  | 0.9 |  |  |  | 0.9 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Recognized net actuarial loss |  |  | 6.7 |  |  |  | 5.9 |  |  |  | — |  |  |  | 0.5 |  |  |  | — |  |  |  | 0.3 |
Net periodic pension cost |  | $ | 14.8 |  |  | $ | 13.9 |  |  | $ | 1.8 |  |  | $ | (1.8 | ) |  | $ | 0.3 |  |  | $ | 0.6 |
Benefit obligations are described in the following tables. Accumulated and projected benefit obligations (ABO and PBO) represent the obligations of a pension plan for past service as of the measurement date. ABO is the present value of benefits earned to date with benefits computed based on current compensation levels. PBO is ABO increased to reflect expected future compensation. The following table sets forth the plans’ change in projected benefit obligation (Dollars in millions):
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other |
|  | Consolidated |  |  | USA |  |  | Germany |  |  | United Kingdom |  |  | Netherlands |  |  | International |
For the year ended October 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Change in benefit obligation: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Benefit obligation at beginning of year |  | $ | 616.2 |  |  | $ | 345.5 |  |  | $ | 27.9 |  |  | $ | 142.1 |  |  | $ | 85.3 |  |  | $ | 15.4 |
Service cost |  |  | 13.4 |  |  |  | 10.0 |  |  |  | 0.4 |  |  |  | 2.1 |  |  |  | 0.5 |  |  |  | 0.4 |
Interest cost |  |  | 29.6 |  |  |  | 16.6 |  |  |  | 1.4 |  |  |  | 7.0 |  |  |  | 3.9 |  |  |  | 0.7 |
Plan participant contributions |  |  | 0.3 |  |  |  | — |  |  |  | — |  |  |  | 0.1 |  |  |  | 0.2 |  |  |  | — |
Expenses paid from assets |  |  | (1.1 | ) |  |  | (1.1 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Multi-plan combination |  |  | 1.7 |  |  |  | — |  |  |  | — |  |  |  | 1.7 |  |  |  | — |  |  |  | — |
Actuarial loss |  |  | 91.9 |  |  |  | 47.3 |  |  |  | 8.4 |  |  |  | 11.4 |  |  |  | 24.0 |  |  |  | 0.8 |
Foreign currency effect |  |  | (1.7 | ) |  |  | — |  |  |  | (1.5 | ) |  |  | 3.9 |  |  |  | (4.5 | ) |  |  | 0.4 |
Benefits paid |  |  | (27.9 | ) |  |  | (13.6 | ) |  |  | (1.3 | ) |  |  | (6.4 | ) |  |  | (6.0 | ) |  |  | (0.6 | )
Benefit obligation at end of year |  | $ | 722.4 |  |  | $ | 404.7 |  |  | $ | 35.3 |  |  | $ | 161.9 |  |  | $ | 103.4 |  |  | $ | 17.1 |
For the year ended October 31, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Change in benefit obligation: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Benefit obligation at beginning of year |  | $ | 580.7 |  |  | $ | 309.5 |  |  | $ | 28.5 |  |  | $ | 134.5 |  |  | $ | 94.9 |  |  | $ | 13.3 |
Service cost |  |  | 12.7 |  |  |  | 9.0 |  |  |  | 0.5 |  |  |  | 2.1 |  |  |  | 0.7 |  |  |  | 0.4 |
Interest cost |  |  | 29.5 |  |  |  | 16.6 |  |  |  | 1.4 |  |  |  | 7.0 |  |  |  | 3.9 |  |  |  | 0.6 |
Plan participant contributions |  |  | 0.5 |  |  |  | — |  |  |  | — |  |  |  | 0.3 |  |  |  | 0.2 |  |  |  | — |
Amendments |  |  | (1.7 | ) |  |  | (0.7 | ) |  |  | — |  |  |  | (1.0 | ) |  |  | — |  |  |  | — |
Actuarial (gain) loss |  |  | 25.0 |  |  |  | 24.8 |  |  |  | (0.8 | ) |  |  | 6.2 |  |  |  | (7.0 | ) |  |  | 1.8 |
Foreign currency effect |  |  | (2.9 | ) |  |  | — |  |  |  | (0.4 | ) |  |  | (1.3 | ) |  |  | (1.2 | ) |  |  | — |
Benefits paid |  |  | (27.6 | ) |  |  | (13.7 | ) |  |  | (1.3 | ) |  |  | (5.7 | ) |  |  | (6.2 | ) |  |  | (0.7 | )
Benefit obligation at end of year |  | $ | 616.2 |  |  | $ | 345.5 |  |  | $ | 27.9 |  |  | $ | 142.1 |  |  | $ | 85.3 |  |  | $ | 15.4 |
The following tables set forth the PBO, ABO, plan assets and instances where the ABO exceeds the plan assets for the respective years (Dollars in millions):
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other |
Actuarial value of benefit obligations |  | Consolidated |  |  | USA |  |  | Germany |  |  | United Kingdom |  |  | Netherlands |  |  | International |
October 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Projected benefit obligation |  |  | 722.4 |  |  |  | 404.7 |  |  |  | 35.3 |  |  |  | 161.9 |  |  |  | 103.4 |  |  |  | 17.1 |
Accumulated benefit obligation |  |  | 687.8 |  |  |  | 382.0 |  |  |  | 32.5 |  |  |  | 156.6 |  |  |  | 102.0 |  |  |  | 14.7 |
Plan assets |  |  | 599.1 |  |  |  | 298.4 |  |  |  | — |  |  |  | 187.4 |  |  |  | 99.3 |  |  |  | 14.0 |
October 31, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Projected benefit obligation |  |  | 616.2 |  |  |  | 345.5 |  |  |  | 27.9 |  |  |  | 142.1 |  |  |  | 85.3 |  |  |  | 15.4 |
Accumulated benefit obligation |  |  | 589.1 |  |  |  | 327.2 |  |  |  | 26.0 |  |  |  | 138.3 |  |  |  | 84.4 |  |  |  | 13.2 |
Plan assets |  |  | 540.3 |  |  |  | 263.0 |  |  |  | — |  |  |  | 176.7 |  |  |  | 87.9 |  |  |  | 12.7 |
Plans with ABO in excess of Plan assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
October 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accumulated benefit obligation |  |  | 531.2 |  |  |  | 382.0 |  |  |  | 32.5 |  |  |  | — |  |  |  | 102.0 |  |  |  | 14.7 |
Plan assets |  |  | 408.3 |  |  |  | 298.4 |  |  |  | — |  |  |  | — |  |  |  | 99.3 |  |  |  | 10.6 |
October 31, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accumulated benefit obligation |  |  | 366.4 |  |  |  | 327.2 |  |  |  | 26.0 |  |  |  | — |  |  |  | — |  |  |  | 13.2 |
Plan assets |  |  | 272.1 |  |  |  | 263.0 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 9.1 |
Future benefit payments, which reflect expected future service, as appropriate, during the next five years, and in the aggregate for the five years thereafter, are as follows (Dollars in millions):
Year |  | Expected benefit payments |
2013 |  | $ | 45.6 |
2014 |  | $ | 31.2 |
2015 |  | $ | 31.9 |
2016 |  | $ | 33.0 |
2017 |  | $ | 34.4 |
2018-2022 |  | $ | 184.0 |
Plan assets The plans’ assets consist of domestic and foreign equity securities, government and corporate bonds, cash, mutual funds and not more than the allowable number of shares of the Company’s common stock, which was 247,504 Class A shares and 160,710 Class B shares at October 31, 2012 and 2011. The investment policy reflects the long-term nature of the plans’ funding obligations. The assets are invested to provide the opportunity for both income and growth of principal. This objective is pursued as a long-term goal designed to provide required benefits for participants without undue risk. It is expected that this objective can be achieved through a well-diversified asset portfolio. All equity investments are made within the guidelines of quality, marketability and diversification mandated by the Employee Retirement Income Security Act and other relevant statutes. Investment managers are directed to maintain equity portfolios at a risk level approximately equivalent to that of the specific benchmark established for that portfolio. The Company’s weighted average asset allocations at the measurement date and the target asset allocations by category are as follows:
|  | 2012 |  |  | 2012 |  |  | 2011 |  |  | 2011 |
Asset Category |  | Target |  |  | Actual |  |  | Target |  |  | Actual |
Equity securities |  |  | 34 | % |  |  | 34 | % |  |  | 41 | % |  |  | 42 | %
Debt securities |  |  | 45 | % |  |  | 45 | % |  |  | 35 | % |  |  | 34 | %
Other |  |  | 21 | % |  |  | 21 | % |  |  | 24 | % |  |  | 24 | %
Total |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  |  | 100 | %
The fair value of the pension plans’ investments is presented below. The inputs and valuation techniques used to measure the fair value of the assets are consistently applied and described in Note 1.
|  | Consolidated |  |  | USA |  |  | Germany |  |  | United Kingdom |  |  | Netherlands |  |  | Other International |
For the year ended October 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Change in plan assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of year |  | $ | 540.3 |  |  | $ | 263.0 |  |  | $ | — |  |  | $ | 176.7 |  |  | $ | 87.9 |  |  | $ | 12.7 |
Actual return on plan assets |  |  | 66.2 |  |  |  | 35.3 |  |  |  | — |  |  |  | 8.6 |  |  |  | 21.9 |  |  |  | 0.4 |
Expenses paid |  |  | (1.1 | ) |  |  | (1.1 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Plan participant contributions |  |  | 0.3 |  |  |  | — |  |  |  | — |  |  |  | 0.1 |  |  |  | 0.2 |  |  |  | — |
Multi-plan combination |  |  | 1.7 |  |  |  | — |  |  |  | — |  |  |  | 1.7 |  |  |  | — |  |  |  | — |
Foreign currency impact |  |  | (0.2 | ) |  |  | — |  |  |  | — |  |  |  | 4.5 |  |  |  | (4.7 | ) |  |  | — |
Employer contributions |  |  | 18.0 |  |  |  | 14.3 |  |  |  | — |  |  |  | 2.2 |  |  |  | — |  |  |  | 1.5 |
Benefits paid |  |  | (26.1 | ) |  |  | (13.1 | ) |  |  | — |  |  |  | (6.4 | ) |  |  | (6.0 | ) |  |  | (0.6 | )
Fair value of plan assets at end of year |  | $ | 599.1 |  |  | $ | 298.4 |  |  | $ | — |  |  | $ | 187.4 |  |  | $ | 99.3 |  |  | $ | 14.0 |
For the year ended October 31, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Change in plan assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of year |  | $ | 514.7 |  |  | $ | 228.3 |  |  | $ | — |  |  | $ | 178.5 |  |  | $ | 97.7 |  |  | $ | 10.2 |
Actual return on plan assets |  |  | 21.4 |  |  |  | 21.0 |  |  |  | — |  |  |  | 2.8 |  |  |  | (2.6 | ) |  |  | 0.2 |
Expenses paid |  |  | (1.0 | ) |  |  | (1.0 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Plan participant contributions |  |  | 0.5 |  |  |  | — |  |  |  | — |  |  |  | 0.3 |  |  |  | 0.2 |  |  |  | — |
Other |  |  | 1.1 |  |  |  | — |  |  |  | — |  |  |  | (0.7 | ) |  |  | — |  |  |  | 1.8 |
Foreign currency effects |  |  | (3.2 | ) |  |  | — |  |  |  | — |  |  |  | (1.5 | ) |  |  | (1.2 | ) |  |  | (0.5 | )
Employer contributions |  |  | 32.6 |  |  |  | 27.9 |  |  |  | — |  |  |  | 3.0 |  |  |  | — |  |  |  | 1.7 |
Benefits paid |  |  | (25.8 | ) |  |  | (13.2 | ) |  |  | — |  |  |  | (5.7 | ) |  |  | (6.2 | ) |  |  | (0.7 | )
Fair value of plan assets at end of year |  | $ | 540.3 |  |  | $ | 263.0 |  |  | $ | — |  |  | $ | 176.7 |  |  | $ | 87.9 |  |  | $ | 12.7 |
The following table presents the fair value measurements for the pension assets: As of October 31, 2012 (Dollars in millions)
|  | Fair Value Measurement |
Asset Category |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Equity securities |  | $ | 7.7 |  |  | $ | 216.3 |  |  | $ | — |  |  | $ | 224.0 |
Fixed income |  |  | 89.0 |  |  |  | 99.3 |  |  |  | — |  |  |  | 188.3 |
Debt securities |  |  | — |  |  |  | 56.8 |  |  |  | — |  |  |  | 56.8 |
Insurance annuity |  |  | — |  |  |  | — |  |  |  | 99.3 |  |  |  | 99.3 |
Other |  |  | 15.1 |  |  |  | 15.6 |  |  |  | — |  |  |  | 30.7 |
Total |  | $ | 111.8 |  |  | $ | 388.0 |  |  | $ | 99.3 |  |  | $ | 599.1 |
As of October 31, 2011 (Dollars in millions)
|  | Fair Value Measurement |
Asset Category |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Equity securities |  | $ | 78.0 |  |  | $ | 149.3 |  |  | $ | — |  |  | $ | 227.3 |
Fixed income |  |  | 75.9 |  |  |  | 75.8 |  |  |  | — |  |  |  | 151.7 |
Debt securities |  |  | — |  |  |  | 28.1 |  |  |  | — |  |  |  | 28.1 |
Insurance annuity |  |  | — |  |  |  | — |  |  |  | 87.9 |  |  |  | 87.9 |
Other |  |  | 17.8 |  |  |  | 27.5 |  |  |  | — |  |  |  | 45.3 |
Total |  | $ | 171.7 |  |  | $ | 280.7 |  |  | $ | 87.9 |  |  | $ | 540.3 |
The following table presents a reconciliation of the beginning and ending balances of the fair value measurements using significant unobservable inputs (Level 3). There have been no transfers in or out of level 3:
|  | Non-U.S. Pension Plan |
(Dollars in millions) |  | 2012 |  |  | 2011 |
Balance at beginning of year |  | $ | 87.9 |  |  | $ | 97.7 |
Actual return on plan assets held at reporting date: |  |  |  |  |  |  |  |
Assets still held at reporting date |  |  | 21.9 |  |  |  | (2.6 | )
Plan participant contributions |  |  | 0.2 |  |  |  | 0.2 |
Settlements |  |  | (6.0 | ) |  |  | (6.2 | )
Currency impact |  |  | (4.7 | ) |  |  | (1.2 | )
Balance at end of year |  | $ | 99.3 |  |  | $ | 87.9 |
Financial statement presentation including other comprehensive income:
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other |
As of October 31, 2012 |  | Consolidated |  |  | USA |  |  | Germany |  |  | United Kingdom |  |  | Netherlands |  |  | International |
Unrecognized net actuarial loss |  | $ | 203.5 |  |  | $ | 140.9 |  |  | $ | 12.0 |  |  | $ | 26.0 |  |  | $ | 17.6 |  |  | $ | 7.0 |
Unrecognized prior service cost |  |  | 0.9 |  |  |  | 0.9 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Unrecognized initial net obligation |  |  | 0.4 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 0.4 |
Accumulated other comprehensive loss |  | $ | 204.8 |  |  | $ | 141.8 |  |  | $ | 12.0 |  |  | $ | 26.0 |  |  | $ | 17.6 |  |  | $ | 7.4 |
Amounts recognized in the Consolidated Balance Sheets consist of: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Prepaid benefit cost |  | $ | 28.8 |  |  | $ | — |  |  | $ | — |  |  | $ | 25.6 |  |  | $ | — |  |  | $ | 3.2 |
Accrued benefit liability |  |  | (152.1 | ) |  |  | (106.3 | ) |  |  | (35.3 | ) |  |  | — |  |  |  | (4.1 | ) |  |  | (6.4 | )
Accumulated other comprehensive loss |  |  | 204.8 |  |  |  | 141.8 |  |  |  | 12.0 |  |  |  | 26.0 |  |  |  | 17.6 |  |  |  | 7.4 |
Net amount recognized |  | $ | 81.5 |  |  | $ | 35.5 |  |  | $ | (23.3 | ) |  | $ | 51.6 |  |  | $ | 13.5 |  |  | $ | 4.2 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other |
As of October 31, 2011 |  | Consolidated |  |  | USA |  |  | Germany |  |  | United Kingdom |  |  | Netherlands |  |  | International |
Unrecognized net actuarial loss |  | $ | 153.4 |  |  | $ | 119.5 |  |  | $ | 3.9 |  |  | $ | 11.5 |  |  | $ | 12.9 |  |  | $ | 5.6 |
Unrecognized prior service cost |  |  | 4.7 |  |  |  | 4.7 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Unrecognized initial net obligation |  |  | 0.5 |  |  |  | (0.1 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 0.6 |
Accumulated other comprehensive loss |  | $ | 158.6 |  |  | $ | 124.1 |  |  | $ | 3.9 |  |  | $ | 11.5 |  |  | $ | 12.9 |  |  | $ | 6.2 |
Amounts recognized in the Consolidated Balance Sheets consist of: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Prepaid benefit cost |  | $ | 40.7 |  |  | $ | — |  |  | $ | — |  |  | $ | 34.6 |  |  | $ | 2.6 |  |  | $ | 3.5 |
Accrued benefit liability |  |  | (115.0 | ) |  |  | (80.9 | ) |  |  | (27.9 | ) |  |  | — |  |  |  | — |  |  |  | (6.2 | )
Accumulated other comprehensive loss |  |  | 158.6 |  |  |  | 124.1 |  |  |  | 3.9 |  |  |  | 11.5 |  |  |  | 12.9 |  |  |  | 6.2 |
Net amount recognized |  | $ | 84.3 |  |  | $ | 43.2 |  |  | $ | (24.0 | ) |  | $ | 46.1 |  |  | $ | 15.5 |  |  | $ | 3.5 |
|  | October 31, 2012 |  |  | October 31, 2011 |
Accumulated other comprehensive loss at beginning of year |  | $ | 158.6 |  |  | $ | 132.3 |
Increase or (decrease) in accumulated other comprehensive (income) or loss |  |  |  |  |  |  |  |
Net transition obligation amortized during fiscal year |  |  | (0.1 | ) |  |  | (0.1 | )
Net prior service costs amortized during fiscal year |  |  | (1.5 | ) |  |  | (1.9 | )
Net loss amortzied during fiscal year |  |  | (11.3 | ) |  |  | (8.4 | )
Prior service (cost) or credit recognized during fiscal year due to curtailment |  |  | (2.3 | ) |  |  | 0.3 |
Prior service costs occuring during fiscal year |  |  | — |  |  |  | 25.0 |
Liability loss occuring during fiscal year |  |  | 92.0 |  |  |  | 13.7 |
Asset (gain) occuring during fiscal year |  |  | (30.7 | ) |  |  | (2.0 | )
Increase in accumulated other comprehensive or loss |  | $ | 46.1 |  |  | $ | 26.6 |
Foreign currency impact |  |  | 0.1 |  |  |  | (0.3 | )
Accumulated other comprehensive (income) or loss at Current fiscal year end |  | $ | 204.8 |  |  | $ | 158.6 |
In 2013, the Company expects to record an amortization loss of $16.4 million of prior service costs from shareholders’ equity into pension costs. Defined contribution plans The Company has several voluntary 401(k) savings plans that cover eligible employees. For certain plans, the Company matches a percentage of each employee’s contribution up to a maximum percentage of base salary. Company contributions to the 401(k) plans were $3.9 million in 2012, $3.6 million in 2011 and $2.9 million in 2010. Supplemental Employee Retirement Plan The Company has a supplemental employee retirement plan which is an unfunded plan providing supplementary retirement benefits primarily to certain executives and longer-service employees. Postretirement Health Care and Life Insurance Benefits The Company has certain postretirement health and life insurance benefit plans in the United States and South Africa. The Company uses a measurement date of October 31 for its postretirement benefit plans. The following table presents the number of participants in the post-retirement health and life insurance benefit plans:
October 31, 2012 |  | Consolidated |  |  | USA |  |  | South Africa |
Active participants |  |  | 31 |  |  |  | 12 |  |  |  | 19 |
Vested former employees |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Retirees and beneficiaries |  |  | 916 |  |  |  | 812 |  |  |  | 104 |
Other plan participants |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
October 31, 2011 |  | Consolidated |  |  | USA |  |  | South Africa |
Active participants |  |  | 32 |  |  |  | 12 |  |  |  | 20 |
Vested former employees |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Retirees and beneficiaries |  |  | 1,112 |  |  |  | 1,000 |  |  |  | 112 |
Other plan participants |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
The discount rate actuarial assumptions at October 31 are used to measure the year-end benefit obligations and the pension costs for the subsequent year were as follows:
|  | Consolidated |  |  | United States |  |  | South Africa |
For the year ended October 31, 2012 |  |  | 4.77 | % |  |  | 4.00 | % |  |  | 7.75 | %
For the year ended October 31, 2011 |  |  | 5.56 | % |  |  | 4.90 | % |  |  | 8.25 | %
The components of net periodic cost for the postretirement benefits include the following (Dollars in millions):
For the years ended October 31, |  | 2012 |  |  | 2011 |  |  | 2010 |
Service cost |  | $ | — |  |  | $ | — |  |  | $ | — |
Interest cost |  |  | 1.1 |  |  |  | 1.2 |  |  |  | 1.6 |
Amortization of prior service cost |  |  | (1.6 | ) |  |  | (1.6 | ) |  |  | (1.3 | )
Recognized net actuarial loss (gain) |  |  | — |  |  |  | (0.1 | ) |  |  | (0.1 | )
Net periodic (income) cost |  | $ | (0.5 | ) |  | $ | (0.5 | ) |  | $ | 0.2 |
The following table sets forth the plans’ change in benefit obligation, change in plan assets and amounts recognized in the consolidated financial statements (Dollars in millions):
|  | October 31, 2012 |  |  | October 31, 2011 |
Benefit obligation at beginning of year |  | $ | 20.8 |  |  | $ | 21.6 |
Service cost |  |  | — |  |  |  | — |
Interest cost |  |  | 1.0 |  |  |  | 1.2 |
Actuarial loss |  |  | 0.2 |  |  |  | 0.8 |
Foreign currency effect |  |  | (0.3 | ) |  |  | (0.5 | )
Plan amendments |  |  | — |  |  |  | — |
Benefits paid |  |  | (2.4 | ) |  |  | (2.3 | )
Benefit obligation at end of year |  | $ | 19.3 |  |  | $ | 20.8 |
Funded status |  | $ | (19.3 | ) |  | $ | (20.8 | )
Unrecognized net actuarial loss |  |  | (0.9 | ) |  |  | (1.1 | )
Unrecognized prior service credit |  |  | (10.7 | ) |  |  | (12.4 | )
Net amount recognized |  | $ | (30.9 | ) |  | $ | (34.3 | )
The accumulated postretirement health and life insurance benefit obligation and fair value of plan assets for the consolidated plans were $19.3 million and $0, respectively, as of October 31, 2012 compared to $20.8 million and $0, respectively, as of October 31, 2011. The healthcare cost trend rates on gross eligible charges are as follows:
|  | Medical |
Current trend rate |  |  | 7.2 | %
Ultimate trend rate |  |  | 5.2 | %
Year ultimate trend rate reached |  |  | 2018 |
A one-percentage point change in assumed health care cost trend rates would have the following effects (Dollars in thousands):
|  | 1-Percentage-Point Increase |  |  | 1-Percentage-Point Decrease |
Effect on total of service and interest cost components |  | $ | 55 |  |  | $ | (47 | )
Effect on postretirement benefit obligation |  | $ | 664 |  |  | $ | (553 | )
Future benefit payments, which reflect expected future service, as appropriate, during the next five years, and in the aggregate for the five years thereafter, are as follows (Dollars in millions):
Year |  | Expected benefit payments |
2013 |  | $ | 2.3 |
2014 |  | $ | 2.0 |
2015 |  | $ | 1.8 |
2016 |  | $ | 1.7 |
2017 |  | $ | 1.6 |
2018-2022 |  | $ | 6.9 |

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- Definition The entire disclosure for postemployment benefits, which may include supplemental unemployment benefits, obligations recognized for all types of benefits provided to former or inactive employees, their beneficiaries, and covered dependents after employment but before retirement. Disclosure may also include discussion that an obligation for postemployment benefits is not accrued in accordance with regulation only because the amount cannot be reasonably estimated. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 712 -SubTopic 10 -Section 25 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6410138&loc=d3e79691-111665 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 712 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6410195&loc=d3e80090-111668 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 112 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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