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POST-RETIREMENT BENEFIT PLANS
 12 Months Ended
Oct. 31, 2024
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, Germany, the Netherlands and the United Kingdom. The Company uses a measurement date of October 31 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 U.S. defined benefit pension plan, 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 respective defined benefit pension plans, but are eligible to participate in a defined contribution retirement program. The category “International” represents the non-contributory defined benefit pension plans in Germany, the Netherlands and the United Kingdom for October 31, 2024 and Canada, Germany, the Netherlands, South Africa and the United Kingdom for October 31, 2023.
Pension plan contributions by the Company totaled $7.9 million during 2024, which consisted of $3.4 million of employer contributions and $4.5 million of benefits paid directly by the Company. Pension plan contributions, including benefits paid directly by the Company, totaled $27.5 million and $31.4 million during 2023 and 2022, respectively. Contributions, including benefits paid directly by the Company, during 2025 are expected to be approximately $5.9 million.
The following table presents the number of participants in the defined benefit plans:
October 31, 2024ConsolidatedUnited StatesInternational
Active participants1,323 1,239 84 
Vested former employees and deferred members3,129 2,672 457 
Retirees and beneficiaries3,446 2,240 1,206 
October 31, 2023ConsolidatedUnited StatesInternational
Active participants1,509 1,416 93 
Vested former employees and deferred members3,181 2,690 491 
Retirees and beneficiaries3,570 2,156 1,414 
The weighted average assumptions used to measure the year-end benefit obligations as of October 31 were as follows:
As of October 31,20242023
Discount rate5.11 %6.05 %
Rate of compensation increase2.96 %2.96 %
The weighted average assumptions used to determine the pension cost for the years ended October 31 were as follows:
For the year ended October 31,202420232022
Discount rate6.05 %5.61 %2.55 %
Expected return on plan assets 5.84 %4.99 %3.86 %
Rate of compensation increase2.96 %2.99 %2.96 %
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 believes 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 5.84% long-term expected return on those assets for cost recognition in 2024. 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, 2023, plan assets of $7.7 million were used to purchase $5.9 million in annuity contracts and pay $1.8 million in lump sums to retirees to settle the pension obligation and close the Canada pension plans. The settlement items described above resulted in non-cash pension settlement charges of $3.5 million of unrecognized net actuarial loss included in accumulated other comprehensive loss for the year ended October 31, 2023.
During the year ended October 31, 2022, $2.4 million of projected benefit obligation for plan participants in Turkey was irrevocably transferred to a third-party buyer through the sale of business (part of the FPS Divestiture) resulting in a $1.0 million loss in accumulated other comprehensive income for the year ended October 31, 2022 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, 2024
(in millions)ConsolidatedUnited StatesInternational
Service cost$6.8 $5.3 $1.5 
Interest cost34.9 26.7 8.2 
Expected return on plan assets(43.5)(33.4)(10.1)
Amortization of prior service benefit(0.3)(0.2)(0.1)
Recognized net actuarial gain(0.9)(0.9)— 
Net periodic pension cost$(3.0)$(2.5)$(0.5)
For the year ended October 31, 2023
(in millions)ConsolidatedUnited StatesInternational
Service cost$8.0 $6.5 $1.5 
Interest cost35.0 26.8 8.2 
Expected return on plan assets(39.0)(30.6)(8.4)
Amortization of prior service benefit(0.4)(0.3)(0.1)
Recognized net actuarial (gain) loss(2.1)(2.2)0.1 
Special Events
Settlement3.5 — 3.5 
Net periodic pension cost$5.0 $0.2 $4.8 
For the year ended October 31, 2022
(in millions)ConsolidatedUnited StatesInternational
Service cost$11.5 $10.0 $1.5 
Interest cost19.9 16.1 3.8 
Expected return on plan assets(32.5)(27.0)(5.5)
Amortization of prior service benefit(0.4)(0.3)(0.1)
Recognized net actuarial loss7.7 6.0 1.7 
Special Events
Divestiture charge1.0 — 1.0 
Net periodic pension cost$7.2 $4.8 $2.4 
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, 2024
(in millions)ConsolidatedUnited StatesInternational
Change in benefit obligation:
Benefit obligation at beginning of year$604.1 $437.5 $166.6 
Service cost6.8 5.3 1.5 
Interest cost34.9 26.7 8.2 
Plan participant contributions0.2 — 0.2 
Expenses paid from assets(3.2)(1.5)(1.7)
Actuarial loss52.8 40.8 12.0 
Foreign currency effect8.5 — 8.5 
Benefits paid(49.9)(38.9)(11.0)
Other(0.1)— (0.1)
Benefit obligation at end of year$654.1 $469.9 $184.2 
For the year ended October 31, 2023
(in millions)ConsolidatedUnited StatesInternational
Change in benefit obligation:
Benefit obligation at beginning of year$651.7 $470.3 $181.4 
Service cost8.0 6.5 1.5 
Interest cost35.0 26.8 8.2 
Plan participant contributions0.2 — 0.2 
Expenses paid from assets(3.4)(1.7)(1.7)
Actuarial gain(24.3)(12.8)(11.5)
Foreign currency effect9.7 — 9.7 
Benefits paid(65.1)(51.6)(13.5)
Settlements(7.7)— (7.7)
Benefit obligation at end of year$604.1 $437.5 $166.6 
The following tables set forth the PBO, ABO, plan assets and instances where the ABO exceeds the plan assets for the respective years:
(in millions)ConsolidatedUnited StatesInternational
Actuarial value of benefit obligations and plan assets
October 31, 2024
Projected benefit obligation$654.1 $469.9 $184.2 
Accumulated benefit obligation640.1 457.4 182.7 
Plan assets640.9 482.8 158.1 
October 31, 2023
Projected benefit obligation$604.1 $437.5 $166.6 
Accumulated benefit obligation589.8 424.5 165.3 
Plan assets584.0 431.6 152.4 
Plans with ABO in excess of Plan assets 
October 31, 2024
Accumulated benefit obligation$109.4 $28.8 $80.6 
Plan assets51.7 — 51.7 
October 31, 2023
Accumulated benefit obligation$104.4 $28.7 $75.7 
Plan assets49.4 — 49.4 
The actuarial (gain) loss for all pension plans was primarily related to a change in discount rates used to measure the benefit obligations of those plans.
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)
2025$69.7 
202661.2 
202757.1 
202855.8 
202955.6 
2030-2034245.7 
Plan assets
The assets of all the Company’s plans consist of U.S. and non-U.S. equity securities, government and corporate bonds, cash, insurance annuities and mutual funds.
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 and laws. 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
2025 Target
2024 Target
2024 Actual
Equity securities20 %20 %21 %
Debt securities53 %62 %53 %
Other27 %18 %26 %
Total100 %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 6 of the Notes to the Consolidated Financial Statements. 
For the year ended October 31, 2024
(in millions)ConsolidatedUnited StatesInternational
Change in plan assets:
Fair value of plan assets at beginning of year$584.0 $431.6 $152.4 
Actual return on plan assets96.9 88.5 8.4 
Expenses paid(3.2)(1.5)(1.7)
Plan participant contributions0.2 — 0.2 
Foreign currency impact8.7 — 8.7 
Employer contributions3.4 — 3.4 
Benefits paid out of plan(45.3)(35.8)(9.5)
Other(3.8)— (3.8)
Fair value of plan assets at end of year$640.9 $482.8 $158.1 
For the year ended October 31, 2023
(in millions)ConsolidatedUnited StatesInternational
Change in plan assets:
Fair value of plan assets at beginning of year$624.6 $451.1 $173.5 
Actual return on plan assets(0.8)10.3 (11.1)
Expenses paid(3.4)(1.7)(1.7)
Plan participant contributions0.2 — 0.2 
Foreign currency impact8.7 — 8.7 
Employer contributions23.7 21.0 2.7 
Benefits paid out of plan(61.3)(49.1)(12.2)
Settlements(7.7)— (7.7)
Fair value of plan assets at end of year$584.0 $431.6 $152.4 
The following table presents the fair value measurements for the pension assets:
Fair Value Measurement
As of October 31, 2024 (in millions)
Level 1Level 2Level 3Total
Asset Category
Mutual funds$40.0 $0.1 $— $40.1 
Cash6.9 — — 6.9 
Corporate bonds— 164.5 — 164.5 
Government bonds— 80.1 — 80.1 
Other assets— 4.2 — 4.2 
Total Assets in the Fair Value Hierarchy46.9 248.9 — 295.8 
Investments Measured at Net Asset Value
Insurance contracts153.6 
Common stock funds97.1 
Corporate bond funds116.9 
Investments at Fair Value*$46.9 $248.9 $— $663.4 
Fair Value Measurement
As of October 31, 2023 (in millions)
Level 1Level 2Level 3Total
Asset Category
Mutual funds$35.5 $24.3 $— $59.8 
Cash11.9 — — 11.9 
Corporate bonds— 159.1 — 159.1 
Government bonds— 57.5 — 57.5 
Other assets— 4.0 — 4.0 
Total Assets in the Fair Value Hierarchy47.4 244.9 — 292.3 
Investments Measured at Net Asset Value
Insurance contracts87.9 
Common stock funds83.4 
Corporate bond funds120.4 
Investments at Fair Value$47.4 $244.9 $— $584.0 
* Excludes net payables of $22.5 million as of October 31, 2024 which consists of interest and pending sales and purchases of securities.
Financial statement presentation including other comprehensive income:
As of October 31, 2024
(in millions)ConsolidatedUnited StatesInternational
Unrecognized net actuarial loss$115.1 $37.4 $77.7 
Unrecognized prior service benefit(0.8)— (0.8)
Accumulated other comprehensive loss - pre-tax$114.3 $37.4 $76.9 
Amounts recognized in the consolidated balance sheets consist of:
Prepaid benefit cost$46.0 $41.7 $4.3 
Accrued benefit liability(59.2)(28.8)(30.4)
Accumulated other comprehensive loss - pre-tax114.3 37.4 76.9 
Net amount recognized$101.1 $50.3 $50.8 
As of October 31, 2023
(in millions)ConsolidatedUnited StatesInternational
Unrecognized net actuarial loss$110.3 $50.7 $59.6 
Unrecognized prior service benefit(1.1)(0.2)(0.9)
Accumulated other comprehensive loss - pre-tax$109.2 $50.5 $58.7 
Amounts recognized in the consolidated balance sheets consist of:
Prepaid benefit cost$36.2 $22.8 $13.4 
Accrued benefit liability(56.3)(28.7)(27.6)
Accumulated other comprehensive loss - pre-tax109.2 50.5 58.7 
Net amount recognized$89.1 $44.6 $44.5 
(in millions)October 31, 2024October 31, 2023
Accumulated other comprehensive loss at beginning of year $109.2 $92.0 
Increase or (decrease) in accumulated other comprehensive loss
Net prior service cost amortized 0.3 0.4 
Net loss amortized 0.9 2.1 
Loss recognized due to settlement— (3.5)
Liability loss (gain)52.8 (24.3)
Asset (gain) loss(53.5)39.9 
Other adjustments0.3 — 
Increase in accumulated other comprehensive loss0.8 14.6 
Foreign currency impact4.3 2.6 
Accumulated other comprehensive loss at year end$114.3 $109.2 
Supplemental Employee Retirement Plan
The Company has a supplemental employee retirement plan that 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 in the U.S. For certain plans, the Company matches a percentage of each employee’s contribution up to a maximum percentage of base salary. The Company’s contributions to the 401(k) plans were $29.0 million, $29.1 million and $24.4 million in 2024, 2023 and 2022, respectively.