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Post Retirement Benefit Plans | 12 Months Ended
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Oct. 31, 2019
Retirement Benefits [Abstract] |
Post Retirement Benefit Plans | POST-RETIREMENT BENEFIT PLANS Defined Benefit Pension Plans The Company has certain non-contributory defined benefit pension plans for salaried and hourly employees 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 employees plans’ benefits are based primarily on years of service and earnings. The hourly employees plans’ benefits are based primarily upon years of service, and certain benefit provisions are subject to collective bargaining. The Company contributes an amount that is not less than the minimum funding and not 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 are not eligible to participate in the defined benefit pension plans, but are eligible to participate in a defined contribution retirement program. Salaried employees outside the U.S. also have various dates in which they are not eligible to participate in the defined benefit pension plans, but are eligible to 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 $26.5 million during 2019, which consisted of $22.6 million of employer contributions and $3.9 million of benefits paid directly by the Company. Pension plan contributions, including benefits paid directly by the Company, totaled $85.5 million and $14.4 million during 2018 and 2017, respectively. Contributions, including benefits paid directly by the Company, during 2020 are expected to be approximately $27.7 million. The following table presents the number of participants in the defined benefit plans:
October 31, 2019 | Consolidated |  | United States |  | Germany |  | United Kingdom |  | Netherlands |  | Other International
Active participants | 2,455 |  |  | 2,351 |  |  | 41 |  |  | — |  |  | 63 |  |  | — |
Vested former employees and deferred members | 5,236 |  |  | 4,643 |  |  | 86 |  |  | 366 |  |  | 97 |  |  | 44 |
Retirees and beneficiaries | 6,462 |  |  | 5,074 |  |  | 258 |  |  | 662 |  |  | 414 |  |  | 54 |
October 31, 2018 | Consolidated |  | United States |  | Germany |  | United Kingdom |  | Netherlands |  | Other International
Active participants | 1,332 |  |  | 1,214 |  |  | 47 |  |  | — |  |  | 71 |  |  | — |
Vested former employees and deferred members | 1,433 |  |  | 790 |  |  | 85 |  |  | 419 |  |  | 95 |  |  | 44 |
Retirees and beneficiaries | 2,389 |  |  | 942 |  |  | 253 |  |  | 699 |  |  | 441 |  |  | 54 |
The actuarial assumptions are used to measure the year-end benefit obligations as of October 31, 2019 and the pension costs for the year were as follows:
For the year ended October 31, 2019 | Consolidated(1) |  | United States |  | Germany |  | United Kingdom |  | Netherlands |  | Other International
Discount rate | 2.74 | % |  | 3.27 | % |  | 0.73 | % |  | 1.76 | % |  | 0.74 | % |  | 3.98 | %
Expected return on plan assets | 4.12 | % |  | 5.10 | % |  | N/A |  |  | 3.60 | % |  | 1.51 | % |  | 6.00 | %
Rate of compensation increase | 2.85 | % |  | 3.00 | % |  | 2.75 | % |  | N/A |  |  | 2.25 | % |  | N/A |
For the year ended October 31, 2018 | Consolidated(1) |  | United States |  | Germany |  | United Kingdom |  | Netherlands |  | Other International
Discount rate | 3.48 | % |  | 4.59 | % |  | 1.80 | % |  | 2.50 | % |  | 1.64 | % |  | 4.84 | %
Expected return on plan assets | 4.53 | % |  | 6.25 | % |  | N/A |  |  | 3.60 | % |  | 1.45 | % |  | 5.69 | %
Rate of compensation increase | 2.85 | % |  | 3.00 | % |  | 2.75 | % |  | N/A |  |  | 2.25 | % |  | N/A |
For the year ended October 31, 2017 | Consolidated(1) |  | United States |  | Germany |  | United Kingdom |  | Netherlands |  | Other International
Discount rate | 3.01 | % |  | 3.79 | % |  | 1.72 | % |  | 2.37 | % |  | 1.55 | % |  | 4.46 | %
Expected return on plan assets | 5.39 | % |  | 6.25 | % |  | N/A |  |  | 6.00 | % |  | 1.20 | % |  | 5.70 | %
Rate of compensation increase | 2.87 | % |  | 3.00 | % |  | 2.75 | % |  | N/A |  |  | 2.25 | % |  | N/A |
(1)This column represents the weighted average of the regions. The discount rate is determined by developing a hypothetical portfolio of individual high-quality corporate bonds available at the measurement date, the coupon and principal payments of which would be sufficient to satisfy the plans’ expected future benefit payments as defined for the projected benefit obligation. The discount rate by country is equivalent to the average yield on that hypothetical portfolio of bonds and is a reflection of current market settlement rates on such high quality bonds, government treasuries, and annuity purchase rates. To determine the expected long-term rate of return on pension plan assets, the Company considers current and expected asset allocations, as well as historical and expected returns on various categories of plan assets. In developing future return expectations for the defined benefit pension plans’ assets; the Company formulates views on the future economic environment, both in the U.S. and globally. The Company evaluates 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. The Company takes into account expected volatility by asset class and diversification across classes to determine expected overall portfolio results given current and expected allocations. The Company uses published mortality tables for determining the expected lives of plan participants and believe that the tables selected are most-closely associated with the expected lives of plan participants as the tables are based on the country in which the participant is employed. Based on the Company's analysis of future expectations of asset performance, past return results, and its current and expected asset allocations, the Company has assumed a 4.12% long-term expected return on those assets for cost recognition in 2019. For the defined benefit pension plans, the Company applies its expected rate of return to a market-related value of assets, which stabilizes variability in the amounts to which the Company applies that expected return. The Company amortizes 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. During the year ended October 31, 2018, in the United Kingdom, lump sum payments totaling $4.7 million were made from the defined benefit plan assets to certain participants who agreed to such payments representing the current fair value of the participant's respective pension benefit. These lump sum payments resulted in a non-cash pension settlement charge of $1.3 million for the year ended October 31, 2018. During the year ended October 31, 2017, in the United States, an annuity contract for approximately $49.2 million was purchased with defined benefit plan assets, and the pension obligation for certain retirees was irrevocably transferred from that plan to the annuity contract. Additionally, lump sum payments totaling $45.2 million were made from the defined benefit plan assets to certain participants who voluntarily agreed to such payments, representing the current fair value of the participant's respective pension benefit. The settlement items described above resulted in a decrease in the fair value of plan assets and the projected benefit obligation of $94.4 million and a non-cash pension settlement charge of $25.9 million of unrecognized net actuarial loss that was included in accumulated other comprehensive loss. Additionally, in the United Kingdom, lump sum payments totaling $7.3 million were made from the defined benefit plan assets to certain participants who voluntarily agreed to such payments, representing the current fair value of the participant's respective pension benefit. These lump sum payments resulted in a non-cash pension settlement charge of $1.2 million of unrecognized net actuarial loss that was included in accumulated other comprehensive loss. Finally, $1.8 million of projected benefit obligation for certain retirees in Germany was irrevocably transferred to a third-party buyer through the sale of a business resulting in $0.7 million of unrecognized net actuarial loss that was included in accumulated other comprehensive loss that was recognized as a loss on sale of business. Benefit Obligations The components of net periodic pension cost include the following:
For the year ended October 31, 2019 | Consolidated |  | United States |  | Germany |  | United Kingdom |  | Netherlands |  | Other International
(in millions) |  |  |  |  |
Service cost | $ | 14.1 |  |  | $ | 12.7 |  |  | $ | 0.3 |  |  | $ | 0.5 |  |  | $ | 0.5 |  |  | $ | 0.1 |
Interest cost | 31.0 |  |  | 25.4 |  |  | 0.5 |  |  | 3.9 |  |  | 0.9 |  |  | 0.3 |
Expected return on plan assets | (38.8 | ) |  | (30.5 | ) |  | — |  |  | (6.2 | ) |  | (1.3 | ) |  | (0.8 | )
Amortization of prior service (cost) benefit | (0.1 | ) |  | (0.1 | ) |  | — |  |  | 0.1 |  |  | (0.1 | ) |  | — |
Recognized net actuarial loss | 7.1 |  |  | 5.0 |  |  | 0.9 |  |  | 1.2 |  |  | — |  |  | — |
Net periodic pension (benefit) cost | $ | 13.3 |  |  | $ | 12.5 |  |  | $ | 1.7 |  |  | $ | (0.5 | ) |  | $ | — |  |  | $ | (0.4 | )
For the year ended October 31, 2018 | Consolidated |  | United States |  | Germany |  | United Kingdom |  | Netherlands |  | Other International
(in millions) |  |  |  |  |
Service cost | $ | 12.3 |  |  | $ | 10.8 |  |  | $ | 0.4 |  |  | $ | 0.5 |  |  | $ | 0.5 |  |  | $ | 0.1 |
Interest cost | 18.9 |  |  | 13.2 |  |  | 0.5 |  |  | 4.0 |  |  | 0.9 |  |  | 0.3 |
Expected return on plan assets | (25.5 | ) |  | (16.8 | ) |  | — |  |  | (6.5 | ) |  | (1.4 | ) |  | (0.8 | )
Amortization of prior service cost | (0.2 | ) |  | (0.1 | ) |  | — |  |  | — |  |  | (0.1 | ) |  | — |
Recognized net actuarial loss | 11.0 |  |  | 8.1 |  |  | 1.1 |  |  | 1.7 |  |  | — |  |  | 0.1 |
Other Adjustments | 2.8 |  |  | — |  |  | — |  |  | 2.8 |  |  | — |  |  | — |
Special Events |  |  |  |  |  |  |  |  |  |  |
Settlement | 1.3 |  |  | — |  |  | — |  |  | 1.3 |  |  | — |  |  | — |
Net periodic pension (benefit) cost | $ | 20.6 |  |  | $ | 15.2 |  |  | $ | 2.0 |  |  | $ | 3.8 |  |  | $ | (0.1 | ) |  | $ | (0.3 | )
For the year ended October 31, 2017 | Consolidated |  | United States |  | Germany |  | United Kingdom |  | Netherlands |  | Other International
(in millions) |  |  |  |  |
Service cost | $ | 13.3 |  |  | $ | 11.8 |  |  | $ | 0.5 |  |  | $ | 0.5 |  |  | $ | 0.4 |  |  | $ | 0.1 |
Interest cost | 18.2 |  |  | 12.9 |  |  | 0.5 |  |  | 3.8 |  |  | 0.7 |  |  | 0.3 |
Expected return on plan assets | (27.7 | ) |  | (15.6 | ) |  | — |  |  | (10.2 | ) |  | (1.2 | ) |  | (0.7 | )
Amortization of prior service cost | (0.1 | ) |  | — |  |  | — |  |  | — |  |  | (0.1 | ) |  | — |
Recognized net actuarial loss | 10.9 |  |  | 8.1 |  |  | 1.3 |  |  | 1.5 |  |  | — |  |  | — |
Special Events |  |  |  |  |  |  |  |  |  |  |
Settlement* | 27.8 |  |  | $ | 25.9 |  |  | $ | 0.7 |  |  | $ | 1.2 |  |  | $ | — |  |  | $ | — |
Net periodic pension (benefit) cost | $ | 42.4 |  |  | $ | 43.1 |  |  | $ | 3.0 |  |  | $ | (3.2 | ) |  | $ | (0.2 | ) |  | $ | (0.3 | )
*Includes $0.7M that was recorded as a loss on sale of business |  |  |  |  |  |  |  |
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:
For the year ended October 31, 2019 | Consolidated |  | United States |  | Germany |  | United Kingdom |  | Netherlands |  | Other International
(in millions) |  |  |  |  |
Change in benefit obligation: |  |  |  |  |  |  |  |  |  |  |
Benefit obligation at beginning of year | $ | 662.4 |  |  | $ | 351.9 |  |  | $ | 38.1 |  |  | $ | 176.3 |  |  | $ | 85.4 |  |  | $ | 10.7 |
Service cost | 14.1 |  |  | 12.7 |  |  | 0.3 |  |  | 0.5 |  |  | 0.5 |  |  | 0.1 |
Interest cost | 31.0 |  |  | 25.4 |  |  | 0.5 |  |  | 3.9 |  |  | 0.9 |  |  | 0.3 |
Plan participant contributions | 0.2 |  |  | — |  |  | — |  |  | — |  |  | 0.2 |  |  | — |
Expenses paid from assets | (5.9 | ) |  | (5.1 | ) |  | — |  |  | (0.7 | ) |  | — |  |  | (0.1 | )
Actuarial loss | 131.0 |  |  | 105.5 |  |  | 7.4 |  |  | 6.0 |  |  | 11.0 |  |  | 1.1 |
Foreign currency effect | (1.8 | ) |  | — |  |  | (0.9 | ) |  | 1.1 |  |  | (1.9 | ) |  | (0.1 | )
Benefits paid | (61.6 | ) |  | (48.7 | ) |  | (1.3 | ) |  | (6.3 | ) |  | (4.8 | ) |  | (0.5 | )
Acquisitions | 389.3 |  |  | 389.3 |  |  | — |  |  | — |  |  | — |  |  | — |
Benefit obligation at end of year | $ | 1,158.7 |  |  | $ | 831.0 |  |  | $ | 44.1 |  |  | $ | 180.8 |  |  | $ | 91.3 |  |  | $ | 11.5 |
For the year ended October 31, 2018 | Consolidated |  | United States |  | Germany |  | United Kingdom |  | Netherlands |  | Other International
(in millions) |  |  |  |  |
Change in benefit obligation: |  |  |  |  |  |  |  |  |  |  |
Benefit obligation at beginning of year | $ | 717.8 |  |  | $ | 387.6 |  |  | $ | 39.9 |  |  | $ | 186.9 |  |  | $ | 91.8 |  |  | $ | 11.6 |
Service cost | 12.3 |  |  | 10.8 |  |  | 0.4 |  |  | 0.5 |  |  | 0.5 |  |  | 0.1 |
Interest cost | 18.9 |  |  | 13.2 |  |  | 0.5 |  |  | 4.0 |  |  | 0.9 |  |  | 0.3 |
Plan participant contributions | 0.2 |  |  | — |  |  | — |  |  | — |  |  | 0.2 |  |  | — |
Expenses paid from assets | (1.7 | ) |  | (1.0 | ) |  | — |  |  | (0.6 | ) |  | — |  |  | (0.1 | )
Plan Amendments | 3.3 |  |  | — |  |  | — |  |  | 3.5 |  |  | (0.2 | ) |  | — |
Actuarial gain | (39.1 | ) |  | (33.5 | ) |  | (0.5 | ) |  | (3.9 | ) |  | (0.9 | ) |  | (0.3 | )
Foreign currency effect | (7.1 | ) |  | — |  |  | (0.8 | ) |  | (4.3 | ) |  | (1.7 | ) |  | (0.3 | )
Benefits paid | (42.2 | ) |  | (25.2 | ) |  | (1.4 | ) |  | (9.8 | ) |  | (5.2 | ) |  | (0.6 | )
Benefit obligation at end of year | $ | 662.4 |  |  | $ | 351.9 |  |  | $ | 38.1 |  |  | $ | 176.3 |  |  | $ | 85.4 |  |  | $ | 10.7 |
The following tables set forth the PBO, ABO, plan assets and instances where the ABO exceeds the plan assets for the respective years:
Actuarial value of benefit obligations |  |  |  |  |  |  |  |  |  |  |
(in millions) | Consolidated |  | United States |  | Germany |  | United Kingdom |  | Netherlands |  | Other International
October 31, 2019 |  |  |  |  |  |  |  |  |  |  |
Projected benefit obligation | $ | 1,158.7 |  |  | $ | 831.0 |  |  | $ | 44.1 |  |  | $ | 180.8 |  |  | $ | 91.3 |  |  | $ | 11.5 |
Accumulated benefit obligation | 1,131.3 |  |  | 806.8 |  |  | 42.6 |  |  | 180.8 |  |  | 89.6 |  |  | 11.5 |
Plan assets | 1,017.0 |  |  | 698.7 |  |  | — |  |  | 209.8 |  |  | 94.5 |  |  | 14.0 |
October 31, 2018 |  |  |  |  |  |  |  |  |  |  |
Projected benefit obligation | $ | 662.4 |  |  | $ | 351.9 |  |  | $ | 38.1 |  |  | $ | 176.3 |  |  | $ | 85.4 |  |  | $ | 10.7 |
Accumulated benefit obligation | 638.9 |  |  | 330.4 |  |  | 37.2 |  |  | 176.3 |  |  | 84.3 |  |  | 10.7 |
Plan assets | 594.8 |  |  | 311.9 |  |  | — |  |  | 178.7 |  |  | 90.6 |  |  | 13.6 |
Plans with ABO in excess of Plan assets |  |  |  |  |  |  |  |  |  |  |
October 31, 2019 |  |  |  |  |  |  |  |  |  |  |
Accumulated benefit obligation | $ | 860.9 |  |  | $ | 806.8 |  |  | $ | 42.6 |  |  | $ | — |  |  | $ | — |  |  | $ | 11.5 |
Plan assets | 709.7 |  |  | 698.9 |  |  | — |  |  | — |  |  | — |  |  | 10.8 |
October 31, 2018 |  |  |  |  |  |  |  |  |  |  |
Accumulated benefit obligation | $ | 171.1 |  |  | $ | 28.8 |  |  | $ | 37.2 |  |  | $ | 104.6 |  |  | $ | — |  |  | $ | 0.5 |
Plan assets | 94.7 |  |  | — |  |  | — |  |  | 94.2 |  |  | — |  |  | 0.5 |
Future benefit payments for the Company's global plans, which reflect expected future service, as appropriate, during the next five years, and in the aggregate for the five years thereafter, are as follows:
(in millions) | Expected Benefit Payments
Year(s) |
2020 | $ | 59.7 |
2021 | 60.2 |
2022 | 62.0 |
2023 | 65.6 |
2024 | 67.2 |
2025-2029 | 323.6 |
Plan assets The plans’ assets consist of U.S. and non-U.S. equity securities, government and corporate bonds, cash, insurance annuity mutual funds and not more than the allowable number of shares of the Company’s common stock. The plans' assets include shares of the Company's common stock in the amount of 175,320 Class A shares and 111,270 Class B shares at October 31, 2019 and 247,504 Class A shares and 160,710 Class B shares at October 31, 2018. 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/or 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:
Asset Category | 2020 Target |  | 2019 Target |  | 2019 Actual
Equity securities | 29 | % |  | 15 | % |  | 31 | %
Debt securities | 55 | % |  | 63 | % |  | 51 | %
Other | 16 | % |  | 22 | % |  | 18 | %
Total | 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 9.
For the year ended October 31, 2019 | Consolidated |  | United States |  | Germany |  | United Kingdom |  | Netherlands |  | Other International
(in millions) |  |  |  |  |
Change in plan assets: |  |  |  |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of year | $ | 594.8 |  |  | $ | 311.9 |  |  | $ | — |  |  | $ | 178.7 |  |  | $ | 90.6 |  |  | $ | 13.6 |
Actual return on plan assets | 140.1 |  |  | 93.4 |  |  | — |  |  | 35.2 |  |  | 10.7 |  |  | 0.8 |
Expenses paid | (5.9 | ) |  | (5.1 | ) |  | — |  |  | (0.7 | ) |  | — |  |  | (0.1 | )
Plan participant contributions | 0.2 |  |  | — |  |  | — |  |  | — |  |  | 0.2 |  |  | — |
Foreign currency impact | (0.7 | ) |  | — |  |  | — |  |  | 1.3 |  |  | (2.1 | ) |  | 0.1 |
Employer contributions | 22.7 |  |  | 21.0 |  |  | — |  |  | 1.6 |  |  | — |  |  | 0.1 |
Benefits paid out of plan | (57.8 | ) |  | (46.1 | ) |  | — |  |  | (6.3 | ) |  | (4.9 | ) |  | (0.5 | )
Acquisitions | 323.6 |  |  | 323.6 |  |  | — |  |  | — |  |  | — |  |  | — |
Fair value of plan assets at end of year | $ | 1,017.0 |  |  | $ | 698.7 |  |  | $ | — |  |  | $ | 209.8 |  |  | $ | 94.5 |  |  | $ | 14.0 |
For the year ended October 31, 2018 | Consolidated |  | United States |  | Germany |  | United Kingdom |  | Netherlands |  | Other International
(in millions) |  |  |  |  |
Change in plan assets: |  |  |  |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of year | $ | 568.6 |  |  | $ | 268.6 |  |  | $ | — |  |  | $ | 188.9 |  |  | $ | 97.5 |  |  | $ | 13.6 |
Actual return on plan assets | (8.7 | ) |  | (12.9 | ) |  | — |  |  | 3.2 |  |  | (0.1 | ) |  | 1.1 |
Expenses paid | (1.7 | ) |  | (1.0 | ) |  | — |  |  | (0.6 | ) |  | — |  |  | (0.1 | )
Plan participant contributions | 0.2 |  |  | — |  |  | — |  |  | — |  |  | 0.2 |  |  | — |
Foreign currency impact | (6.9 | ) |  | — |  |  | — |  |  | (4.6 | ) |  | (1.8 | ) |  | (0.5 | )
Employer contributions | 81.7 |  |  | 80.0 |  |  | — |  |  | 1.6 |  |  | — |  |  | 0.1 |
Benefits paid out of plan | (38.4 | ) |  | (22.8 | ) |  | — |  |  | (9.8 | ) |  | (5.2 | ) |  | (0.6 | )
Fair value of plan assets at end of year | $ | 594.8 |  |  | $ | 311.9 |  |  | $ | — |  |  | $ | 178.7 |  |  | $ | 90.6 |  |  | $ | 13.6 |
The following table presents the fair value measurements for the pension assets:
As of October 31, 2019 (in millions) | Fair Value Measurement
Asset Category | Level 1 |  | Level 2 |  | Level 3 |  | Total
Mutual funds | $ | 25.6 |  |  | $ | 137.4 |  |  | $ | — |  |  | $ | 163.0 |
Common stock | 27.6 |  |  | — |  |  | — |  |  | 27.6 |
Cash | 6.5 |  |  | — |  |  | — |  |  | 6.5 |
Corporate bonds | — |  |  | 134.8 |  |  | — |  |  | 134.8 |
Government bonds | — |  |  | 39.8 |  |  | — |  |  | 39.8 |
Other assets | — |  |  | 0.2 |  |  | — |  |  | 0.2 |
Total Assets in the Fair Value Hierarchy | $ | 59.7 |  |  | $ | 312.2 |  |  | $ | — |  |  | $ | 371.9 |
Investments Measured at Net Asset Value |  |  |  |  |  |  |  |
Mutual funds |  |  |  |  |  |  | 358.5 |
Insurance contracts |  |  |  |  |  |  | 130.2 |
Common stock funds |  |  |  |  |  |  | 81.5 |
Corporate bond funds |  |  |  |  |  |  | 70.8 |
Government bond funds |  |  |  |  |  |  | 4.1 |
Investments at Fair Value | $ | 59.7 |  |  | $ | 312.2 |  |  | $ | — |  |  | $ | 1,017.0 |
As of October 31, 2018 (in millions) | Fair Value Measurement
Asset Category | Level 1 |  | Level 2 |  | Level 3 |  | Total
Mutual funds | $ | 63.0 |  |  | $ | 140.7 |  |  | $ | — |  |  | $ | 203.7 |
Common stock | 35.9 |  |  | — |  |  | — |  |  | 35.9 |
Cash | 1.9 |  |  | — |  |  | — |  |  | 1.9 |
Corporate bonds | — |  |  | 26.1 |  |  | — |  |  | 26.1 |
Government bonds | — |  |  | 17.8 |  |  | — |  |  | 17.8 |
Other assets | — |  |  | 0.8 |  |  | — |  |  | 0.8 |
Total Assets in the Fair Value Hierarchy | $ | 100.8 |  |  | $ | 185.4 |  |  | $ | — |  |  | $ | 286.2 |
Investments Measured at Net Asset Value |  |  |  |  |  |  |  |
Mutual funds |  |  |  |  |  |  | 44.6 |
Insurance contracts |  |  |  |  |  |  | 124.0 |
Common stock funds |  |  |  |  |  |  | 42.7 |
Corporate bond funds |  |  |  |  |  |  | 97.3 |
Investments at Fair Value | $ | 100.8 |  |  | $ | 185.4 |  |  | $ | — |  |  | $ | 594.8 |
Financial statement presentation including other comprehensive income:
As of October 31, 2019 | Consolidated |  | United States |  | Germany |  | United Kingdom |  | Netherlands |  | Other International
(in millions) |  |  |  |  |
Unrecognized net actuarial loss | $ | 171.8 |  |  | $ | 120.5 |  |  | $ | 19.2 |  |  | $ | 25.3 |  |  | $ | 3.1 |  |  | $ | 3.7 |
Unrecognized prior service cost (credit) | 0.8 |  |  | (1.0 | ) |  | — |  |  | 3.3 |  |  | (1.5 | ) |  | — |
Accumulated other comprehensive loss (gain) - Pre-tax | $ | 172.6 |  |  | $ | 119.5 |  |  | $ | 19.2 |  |  | $ | 28.6 |  |  | $ | 1.6 |  |  | $ | 3.7 |
Amounts recognized in the Consolidated Balance Sheets consist of: |  |  |  |  |  |  |  |  |  |  |
Prepaid benefit cost | $ | 35.4 |  |  | $ | — |  |  | $ | — |  |  | $ | 29.0 |  |  | $ | 3.2 |  |  | $ | 3.2 |
Accrued benefit liability | (177.0 | ) |  | (132.2 | ) |  | (44.1 | ) |  | — |  |  | — |  |  | (0.7 | )
Accumulated other comprehensive loss | 172.6 |  |  | 119.5 |  |  | 19.2 |  |  | 28.6 |  |  | 1.6 |  |  | 3.7 |
Net amount recognized | $ | 31.0 |  |  | $ | (12.7 | ) |  | $ | (24.9 | ) |  | $ | 57.6 |  |  | $ | 4.8 |  |  | $ | 6.2 |
As of October 31, 2018 | Consolidated |  | United States |  | Germany |  | United Kingdom |  | Netherlands |  | Other International
(in millions) |  |  |  |  |
Unrecognized net actuarial loss | $ | 149.7 |  |  | $ | 82.9 |  |  | $ | 13.1 |  |  | $ | 49.5 |  |  | $ | 1.5 |  |  | $ | 2.7 |
Unrecognized prior service cost (credit) | 0.7 |  |  | (1.1 | ) |  | — |  |  | 3.5 |  |  | (1.7 | ) |  | — |
Accumulated other comprehensive loss (gain) - Pre-tax | $ | 150.4 |  |  | $ | 81.8 |  |  | $ | 13.1 |  |  | $ | 53.0 |  |  | $ | (0.2 | ) |  | $ | 2.7 |
Amounts recognized in the Consolidated Balance Sheets consist of: |  |  |  |  |  |  |  |  |  |  |
Prepaid benefit cost | $ | 10.4 |  |  | $ | — |  |  | $ | — |  |  | $ | 2.3 |  |  | $ | 5.0 |  |  | $ | 3.1 |
Accrued benefit liability | (78.0 | ) |  | (39.9 | ) |  | (38.1 | ) |  | — |  |  | — |  |  | — |
Accumulated other comprehensive loss (gain) | 150.4 |  |  | 81.8 |  |  | 13.1 |  |  | 53.0 |  |  | (0.2 | ) |  | 2.7 |
Net amount recognized | $ | 82.8 |  |  | $ | 41.9 |  |  | $ | (25.0 | ) |  | $ | 55.3 |  |  | $ | 4.8 |  |  | $ | 5.8 |
(in millions) | October 31, 2019 |  | October 31, 2018
Accumulated other comprehensive loss at beginning of year | $ | 150.4 |  |  | $ | 168.1 |
Increase or (decrease) in accumulated other comprehensive loss |  |  |
Net prior service benefit amortized | 0.1 |  |  | 0.2 |
Net loss amortized | (7.1 | ) |  | (11.0 | )
Loss recognized due to settlement | — |  |  | (1.4 | )
Prior service credit | — |  |  | 3.3 |
Liability loss (gain) | 131.0 |  |  | (39.2 | )
Asset (gain) loss | (101.3 | ) |  | 34.6 |
Other adjustments | — |  |  | (2.7 | )
Increase (decrease) in accumulated other comprehensive loss | $ | 22.7 |  |  | $ | (16.2 | )
Foreign currency impact | (0.5 | ) |  | (1.5 | )
Accumulated other comprehensive loss at year end | $ | 172.6 |  |  | $ | 150.4 |
In 2020, the Company expects to record an amortization gain of $0.2 million of prior service credits from shareholders’ equity into pension costs. 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. The present benefit obligation of the supplemental employee retirement plan is included in the United States defined benefit pension plans above. 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 $21.8 million in 2019, $9.4 million in 2018 and $8.3 million in 2017. Post-retirement Health Care and Life Insurance Benefits The Company has certain post-retirement unfunded health and life insurance benefit plans in the United States and South Africa. The Company uses a measurement date of October 31 for its post-retirement benefit plans. Benefits paid directly by the Company totaled $0.9 million, $1.0 million and $0.8 million for the years ending 2019, 2018 and 2017 respectively. Benefits paid directly by the Company during 2020 are expected to be approximately $1.3 million. The following table presents the number of participants in the post-retirement health and life insurance benefit plan:
October 31, 2019 | Consolidated |  | United States |  | South Africa
Active participants | 9 |  |  | 3 |  |  | 6 |
Retirees and beneficiaries | 1,065 |  |  | 986 |  |  | 79 |
October 31, 2018 | Consolidated |  | United States |  | South Africa
Active participants | 12 |  |  | 5 |  |  | 7 |
Retirees and beneficiaries | 625 |  |  | 542 |  |  | 83 |
The discount rate actuarial assumptions at October 31 used to measure the year-end benefit obligations and the pension costs for the subsequent year were as follows:
For the year ended: | Consolidated |  | United States |  | South Africa
October 31, 2019 | 3.52 | % |  | 2.95 | % |  | 9.20 | %
October 31, 2018 | 5.02 | % |  | 4.39 | % |  | 10.10 | %
The components of net periodic income for the post-retirement benefits include the following:
| Year Ended October 31,
(in millions) | 2019 |  | 2018 |  | 2017
Interest cost | $ | 0.5 |  |  | $ | 0.5 |  |  | $ | 0.5 |
Amortization of prior service benefit | (1.3 | ) |  | (1.4 | ) |  | (1.4 | )
Recognized net actuarial gain | (0.3 | ) |  | (0.2 | ) |  | (0.2 | )
Net periodic income | $ | (1.1 | ) |  | $ | (1.1 | ) |  | $ | (1.1 | )
The following table sets forth the plans’ change in benefit obligation:
(in millions) | October 31, 2019 |  | October 31, 2018
Benefit obligation at beginning of year | $ | 10.7 |  |  | $ | 12.6 |
Interest cost | 0.5 |  |  | 0.5 |
Actuarial loss (gain) | 0.5 |  |  | (1.4 | )
Benefits paid | (1.0 | ) |  | (1.0 | )
Acquisition | 1.5 |  |  | — |
Benefit obligation at end of year | $ | 12.2 |  |  | $ | 10.7 |
Financial statement presentation included other comprehensive income:
(in millions) | October 31, 2019 |  | October 31, 2018
Unrecognized net actuarial gain | $ | (2.8 | ) |  | $ | (3.6 | )
Unrecognized prior service credit | (0.4 | ) |  | (1.6 | )
Accumulated other comprehensive income | $ | (3.2 | ) |  | $ | (5.2 | )
The accumulated post-retirement health and life insurance benefit obligation and fair value of plan assets for the consolidated plans were $12.2 million and zero, respectively, as of October 31, 2019 compared to $10.7 million and zero, respectively, as of October 31, 2018. The healthcare cost trend rates on gross eligible charges are as follows:
| Medical
Current trend rate | 6.3 | %
Ultimate trend rate | 4.7 | %
Year ultimate trend rate reached (South Africa) | 2020 |
Year ultimate trend rate reached (US) | 2026 |
A one-percentage point change in assumed health care cost trend rates would have the following effects:
(in millions) | 1-Percentage-Point Increase |  | 1-Percentage-Point Decrease
Effect on total of service and interest cost components | $ | — |  |  | $ | — |
Effect on post-retirement benefit obligation | 0.2 |  |  | (0.2 | )
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 expected to be as follows:
(in millions) | Expected Benefit Payments
Year(s) |
2020 | $ | 1.3 |
2021 | 1.3 |
2022 | 1.2 |
2023 | 1.1 |
2024 | 1.0 |
2025-2029 | 4.2 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 712 -URI http://asc.fasb.org/topic&trid=2197446 + Details
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