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Pension And Other Postretirement Benefit Plans | 12 Months Ended
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Mar. 31, 2024
Retirement Benefits [Abstract] |
Pension And Other Postretirement Benefit Plans | PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS Defined Benefit Plans Description of Plans The Company sponsors several defined benefit pension plans covering salaried and certain hourly employees in the U.S., as well as certain foreign and other employee groups. These plans provide retirement benefits based primarily on employee compensation and years of service. Plan assets consist primarily of equity and fixed income investments. The Company also sponsors defined benefit plans that provide postretirement health and life insurance benefits for eligible U.S. employees and retirees who have attained specific age and service levels, although postretirement life insurance benefits were discontinued in fiscal year 2015 for all employees who were not already retired. The health benefits are funded by the Company as the costs of those benefits are incurred. The plan design includes cost-sharing features such as deductibles and coinsurance. The life insurance benefits are funded with deposits to a reserve account held by an insurance company. The Company has the right to amend or discontinue its pension and other postretirement benefit plans at any time. In the following disclosures, the term “accumulated benefit obligation” (“ABO”) represents the actuarial present value of estimated future benefit payments earned by participants in the Company's defined benefit pension plans as of the balance sheet date without regard to the estimated effect of future compensation increases on those benefits. The term does not apply to other postretirement benefits. “Projected benefit obligation” refers to the projected benefit obligation (“PBO”) for pension benefits and the accumulated postretirement benefit obligation (“APBO”) for other postretirement benefits. These amounts represent the actuarial present value of estimated future benefit payments earned by participants in the benefit plans as of the balance sheet date. For pension benefits, the PBO includes the estimated effect of future compensation increases on those benefits. Actuarial Assumptions Assumptions used for financial reporting purposes to compute net periodic benefit cost and benefit obligations for the Company's primary defined benefit plans were as follows:
| Pension Benefits |  | Other Postretirement Benefits
| 2024 |  | 2023 |  | 2022 |  | 2024 |  | 2023 |  | 2022
Discount rates: |  |  |  |  |  |  |  |  |  |  |
Benefit cost for plan year | 5.00 | % |  | 3.70 | % |  | 3.30 | % |  | 4.90 | % |  | 3.60 | % |  | 2.90 | %
Benefit obligation at end of plan year | 5.27 | % |  | 5.00 | % |  | 3.70 | % |  | 5.17 | % |  | 4.90 | % |  | 3.60 | %
Expected long-term return on plan assets: |  |  |  |  |  |  |  |  |  |  |
Benefit cost for plan year | 6.50 | % |  | 5.50 | % |  | 5.50 | % |  | 3.00 | % |  | 3.00 | % |  | 3.00 | %
Salary scale: |  |  |  |  |  |  |  |  |  |  |
Benefit cost for plan year | 4.00 | % |  | 4.00 | % |  | 4.00 | % |  | 4.00 | % |  | 4.00 | % |  | 4.00 | %
Benefit obligation at end of plan year | 4.00 | % |  | 4.00 | % |  | 4.00 | % |  | 4.00 | % |  | 4.00 | % |  | 4.00 | %
Healthcare cost trend rate | N/A |  | N/A |  | N/A |  | 6.97 | % |  | 6.97 | % |  | 6.17 | %
Changes in the discount rates in the above table reflect prevailing market interest rates at the end of each fiscal year when the benefit obligations are actuarially measured. The expected long-term return on plan assets is developed from financial models used to project future returns on the underlying assets of the funded plans and is reviewed on an annual basis. The healthcare cost trend rate used by the Company is based on a study of medical cost inflation rates that is reviewed and updated annually for continued applicability. The trend assumption of 6.97% in 2024 declines gradually to 4.44% in 2032. The Company has caps in place on postretirement medical benefits that limit its cost for a large segment of the retiree population. As a result, changes to the healthcare cost trend rate have a limited impact on the postretirement medical plan liability and expense. Benefit Obligations, Plan Assets, and Funded Status The following table reflects the changes in benefit obligations and plan assets in fiscal years 2024 and 2023, as well as the funded status of the plans at March 31, 2024 and 2023:
| Pension Benefits |  | Other Postretirement Benefits
| March 31, |  | March 31,
| 2024 |  | 2023 |  | 2024 |  | 2023
Actuarial present value of benefit obligation: |  |  |  |  |  |  |
Accumulated benefit obligation | $ | 231,685 |  |  | $ | 235,540 |  |  |  |  |
Projected benefit obligation | 237,626 |  |  | 241,399 |  |  | $ | 20,077 |  |  | $ | 20,716 |
Change in projected benefit obligation: |  |  |  |  |  |  |
Projected benefit obligation, beginning of year | $ | 241,399 |  |  | $ | 277,050 |  |  | $ | 20,716 |  |  | $ | 24,957 |
Service cost | 5,214 |  |  | 6,172 |  |  | 239 |  |  | 115 |
Interest cost | 11,566 |  |  | 9,670 |  |  | 1,049 |  |  | 944 |
Effect of discount rate change | (5,147) |  |  | (31,621) |  |  | (255) |  |  | (1,906) |
Foreign currency exchange rate changes | (298) |  |  | (543) |  |  | 30 |  |  | (145) |
Other | 2,197 |  |  | (2,120) |  |  | 589 |  |  | (659) |
Benefit payments | (17,305) |  |  | (17,209) |  |  | (2,291) |  |  | (2,590) |
Projected benefit obligation, end of year | $ | 237,626 |  |  | $ | 241,399 |  |  | $ | 20,077 |  |  | $ | 20,716 |
Change in plan assets: |  |  |  |  |  |  |
Plan assets at fair value, beginning of year | $ | 221,953 |  |  | $ | 256,013 |  |  | $ | 2,257 |  |  | $ | 2,706 |
Actual return on plan assets | 11,666 |  |  | (20,613) |  |  | 174 |  |  | 73 |
Employer contributions | 4,257 |  |  | 4,038 |  |  | 1,794 |  |  | 2,068 |
Foreign currency exchange rate changes | (235) |  |  | (276) |  |  | — |  |  | — |
Benefit payments | (17,305) |  |  | (17,209) |  |  | (2,291) |  |  | (2,590) |
Plan assets at fair value, end of year | $ | 220,336 |  |  | $ | 221,953 |  |  | $ | 1,934 |  |  | $ | 2,257 |
Funded status: |  |  |  |  |  |  |
Funded status of the plans, end of year | $ | (17,290) |  |  | $ | (19,446) |  |  | $ | (18,143) |  |  | $ | (18,459) |
The Company funds its non-regulated U.S. pension plan, one of its foreign pension plans, and its postretirement medical plans on a pay-as-you-go basis as the benefit payments are incurred. The unfunded PBO for those pension plans and postretirement benefit plans was $27.9 million and $16.6 million, respectively, at March 31, 2024. The funded status of the Company’s plans at the end of fiscal years 2024 and 2023 was reported in the consolidated balance sheets as follows:
| Pension Benefits |  | Other Postretirement Benefits
| March 31, |  | March 31,
| 2024 |  | 2023 |  | 2024 |  | 2023
Noncurrent assets (included in Pension asset) | $ | 11,857 |  |  | $ | 9,984 |  |  | $ | — |  |  | $ | — |
Current liability (included in Accrued expenses and other current liabilities) | (2,344) |  |  | (3,352) |  |  | (1,695) |  |  | (1,768) |
Noncurrent liability (reported as Pensions and other postretirement benefits) | (26,803) |  |  | (26,078) |  |  | (16,448) |  |  | (16,691) |
Amounts recognized in the consolidated balance sheets | $ | (17,290) |  |  | $ | (19,446) |  |  | $ | (18,143) |  |  | $ | (18,459) |
Additional information on the funded status of the Company’s plans as of the respective measurement dates for the fiscal years ended March 31, 2024 and 2023, is as follows:
| Pension Benefits |  | Other Postretirement Benefits
| March 31, |  | March 31,
| 2024 |  | 2023 |  | 2024 |  | 2023
For plans with a projected benefit obligation in excess of plan assets: |  |  |  |  |  |  |
Aggregate projected benefit obligation (PBO) | $ | 36,842 |  |  | $ | 29,430 |  |  | $ | 20,078 |  |  | $ | 20,716 |
Aggregate fair value of plan assets | — |  |  | — |  |  | 1,934 |  |  | 2,257 |
For plans with an accumulated benefit obligation in excess of plan assets: |  |  |  |  |  |  |
Aggregate accumulated benefit obligation (ABO) | 35,640 |  |  | 28,487 |  |  | N/A |  | N/A
Aggregate fair value of plan assets | — |  |  | — |  |  | N/A |  | N/A
Net Periodic Benefit Cost The components of the Company’s net periodic benefit cost were as follows:
| Pension Benefits |  | Other Postretirement Benefits
| Fiscal Year Ended March 31, |  | Fiscal Year Ended March 31,
| 2024 |  | 2023 |  | 2022 |  | 2024 |  | 2023 |  | 2022
Components of net periodic benefit cost: |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | 5,214 |  |  | $ | 6,172 |  |  | $ | 6,674 |  |  | $ | 239 |  |  | $ | 115 |  |  | $ | 170 |
Interest cost | 11,566 |  |  | 9,670 |  |  | 8,754 |  |  | 1,049 |  |  | 944 |  |  | 950 |
Expected return on plan assets | (15,504) |  |  | (13,630) |  |  | (13,562) |  |  | (63) |  |  | (76) |  |  | (86) |
Net amortization and deferral | 659 |  |  | 2,038 |  |  | 1,679 |  |  | (791) |  |  | (737) |  |  | (422) |
Net periodic benefit cost | $ | 1,935 |  |  | $ | 4,250 |  |  | $ | 3,545 |  |  | $ | 434 |  |  | $ | 246 |  |  | $ | 612 |
A one-percentage-point increase or decrease in the assumed healthcare cost trend rate would not result in a significant change to the March 31, 2024 APBO or the aggregate service and interest cost components of the net periodic postretirement benefit expense for fiscal year 2025. Amounts Included in Accumulated Other Comprehensive Loss Amounts included in accumulated other comprehensive loss at the beginning of the year are amortized as a component of net periodic benefit cost during the year. The amounts recognized in other comprehensive income or loss for fiscal years 2024 and 2023 and the amounts included in accumulated other comprehensive loss at the end of those fiscal years are shown below. All amounts shown are before allocated income taxes.
| Pension Benefits |  | Other Postretirement Benefits
| March 31, |  | March 31,
| 2024 |  | 2023 |  | 2024 |  | 2023
Change in net actuarial loss (gain): |  |  |  |  |  |  |
Net actuarial loss (gain), beginning of year | $ | 64,114 |  |  | $ | 67,280 |  |  | $ | (8,332) |  |  | $ | (6,681) |
Losses (gains) arising during the year | 107 |  |  | (98) |  |  | 377 |  |  | (2,223) |
Amortization included in net periodic benefit cost during the year | (793) |  |  | (3,068) |  |  | 786 |  |  | 572 |
Net actuarial loss (gain), end of year | 63,428 |  |  | 64,114 |  |  | (7,169) |  |  | (8,332) |
Change in prior service cost (benefit): |  |  |  |  |  |  |
Prior service cost (benefit), beginning of year | (457) |  |  | (1,487) |  |  | (36) |  |  | (201) |
Prior service cost (benefit) arising during the year | 692 |  |  | — |  |  | — |  |  | — |
Amortization included in net periodic benefit cost during the year | 134 |  |  | 1,030 |  |  | 5 |  |  | 165 |
Prior service cost (benefit), end of year | 369 |  |  | (457) |  |  | (31) |  |  | (36) |
Total amounts in accumulated other comprehensive loss at end of year, before income taxes | $ | 63,797 |  |  | $ | 63,657 |  |  | $ | (7,200) |  |  | $ | (8,368) |
Amounts in the above table reflect the Company and its consolidated subsidiaries. The accumulated other comprehensive loss reported in the consolidated balance sheets also includes pension and other postretirement benefit amounts related to ownership interests in unconsolidated affiliates. The Company expects to recognize approximately $0.2 million of the March 31, 2024 net actuarial loss and $0.1 million of the March 31, 2024 prior service benefit in net periodic benefit cost during fiscal year 2025. Allocation of Pension Plan Assets The Company has established, and periodically adjusts, target asset allocations for its investments in its U.S. ERISA-regulated defined benefit pension plan, which represents 97% of consolidated plan assets and 84% of consolidated PBO at March 31, 2024, to balance the needs of liquidity, total return, and risk control. The assets are required to be diversified across asset classes and investment styles to achieve that balance. During the year, the asset allocation is reviewed for adherence to the target policy and rebalanced to the targeted weights. The Company reviews the expected long-term returns of the asset allocation each year to help determine whether changes are needed. The return is evaluated on a weighted-average basis in relation to inflation. The assumed long-term rate of return used to calculate annual benefit expense is based on the asset allocation and expected market returns for the respective asset classes. The weighted–average target pension asset allocation and target ranges at the March 31, 2024 measurement date and the actual asset allocations at the March 31, 2024 and 2023 measurement dates by major asset category were as follows:
|  |  |  |  |  |  | Actual Allocation
| Target Allocation |  |  |  |  |  | March 31,
Major Asset Category |  | Range |  | 2024 |  | 2023
Equity securities | 29.0 | % |  | 19 | % | - | 39% |  | 26.7 | % |  | 27.5 | %
Fixed income securities (1) | 66.0 | % |  | 56 | % | - | 76% |  | 67.3 | % |  | 66.0 | %
Alternative investments | 5.0 | % |  | 0 | % | - | 10% |  | 6.0 | % |  | 6.5 | %
Total | 100.0 | % |  |  |  |  |  | 100.0 | % |  | 100.0 | %
(1)Actual amounts include high yield securities and cash balances held for the payment of benefits. Universal makes regular contributions to its pension and other postretirement benefit plans. As previously noted, for postretirement health benefits, contributions reflect funding of those benefits as they are incurred. The Company expects to make no contributions to its ERISA regulated defined benefit pension plan and $4.1 million to its non-ERISA regulated pension plans in fiscal year 2025. Estimated future benefit payments to be made from the Company’s plans are as follows:
| Pension Benefits |  | Other Postretirement Benefits
Fiscal Year |  |  |
2025 | $ | 17,126 |  |  | $ | 2,100 |
2026 | 18,141 |  |  | 1,929 |
2027 | 23,644 |  |  | 1,856 |
2028 | 19,017 |  |  | 1,774 |
2029 | 17,345 |  |  | 1,681 |
2030 - 2033 | 85,512 |  |  | 7,729 |
Fair Values of Pension Plan Assets Assets held by the Company's defined benefit pension plans primarily consist of equity securities, fixed income securities, and alternative investments. Equity securities are primarily invested in actively-traded mutual funds with underlying common stock investments in U.S. and foreign companies ranging in size from small to large corporations. Fixed income securities are also held primarily through actively-traded mutual funds with the underlying investments in both U.S. and foreign securities. The methodologies for determining the fair values of the plan assets are outlined below. Where the values are based on quoted prices for the securities in an active market, they are classified as Level 1 of the fair value hierarchy. Where secondary pricing sources are used, they are classified as Level 2 of the hierarchy. Pricing models that use significant unobservable inputs are classified as Level 3. •Equity securities: Investments in equity securities through actively-traded mutual funds are valued based on the NAVs of the units held in the respective funds, which are determined by obtaining quoted prices on nationally recognized securities exchanges. These securities are classified as Level 1. •Fixed income securities: Fixed income investments that are held through mutual funds are valued based on the NAVs of the units held in the respective funds, which are determined by obtaining quoted prices on nationally recognized securities exchanges. These securities are classified as Level 1. Other fixed income investments are valued at an estimated price that a dealer would pay for a similar security on the valuation date using observable market inputs and are classified as Level 2. These market inputs may include yield curves for similarly rated securities. Small amounts of cash are held in common collective trusts. Fixed income securities also include insurance assets, which are valued based on an actuarial calculation. Those securities are classified as Level 3. •Alternative investments: Real estate assets are valued using valuation models that incorporate income and market approaches, including external appraisals, to derive fair values. The hedge fund allocation is a fund of hedge funds and is valued by the manager based on the NAV of each fund. These models use significant unobservable inputs and are classified as Level 3 within the fair value hierarchy. Fair values of the assets of the Company’s pension plans as of March 31, 2024 and 2023, classified based on how their values were determined under the fair value hierarchy are as follows:
| March 31, 2024
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Equity securities | $ | 56,243 |  |  | $ | — |  |  | $ | — |  |  | $ | 56,243 |
Fixed income securities (1) | 143,740 |  |  | — |  |  | 7,695 |  |  | 151,435 |
Alternative investments | — |  |  | — |  |  | 12,658 |  |  | 12,658 |
Total investments | $ | 199,983 |  |  | $ | — |  |  | $ | 20,353 |  |  | $ | 220,336 |
| March 31, 2023
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Equity securities | $ | 58,745 |  |  | $ | — |  |  | $ | — |  |  | $ | 58,745 |
Fixed income securities (1) | 142,335 |  |  | — |  |  | 6,917 |  |  | 149,252 |
Alternative investments | — |  |  | — |  |  | 13,956 |  |  | 13,956 |
Total investments | $ | 201,080 |  |  | $ | — |  |  | $ | 20,873 |  |  | $ | 221,953 |
(1)Includes high yield securities and cash and cash equivalent balances. Other Benefit Plans Universal and several subsidiaries offer employer defined contribution savings plans. Amounts charged to expense for these plans were approximately $4.3 million for fiscal year 2024, $3.4 million for fiscal year 2023, and $3.0 million for fiscal year 2022.

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