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Employee Benefit Plans
 12 Months Ended
Sep. 30, 2020
Retirement Benefits [Abstract]  
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS
Defined Benefit Plans
The Company has various defined benefit pension plans covering some of its employees. Plans generally provide benefits of stated amounts for each year of service. The Company funds its pension plans in accordance with the requirements of the defined benefit pension plans and, where applicable, in amounts sufficient to satisfy the minimum funding requirements of applicable laws. Additionally, in compliance with the Company’s funding policy, annual contributions to defined benefit plans are equal to the actuarial recommendations or statutory requirements in the respective countries. The Company sponsors or participates in a number of other non-U.S. pension arrangements, including various retirement and termination benefit plans, some of which are covered by local law or coordinated with government-sponsored plans, which are not significant in the aggregate. The following tables provide additional information on the pension plans as of September 30, 2020 and 2019:
U.S. Plans
Non U.S. Plans
(in millions)
2020201920202019
Changes in benefit obligation:
Benefit obligation, beginning of year$80.2 $70.5 $167.8 $148.9 
Service cost0.7 0.4 2.2 1.9 
Interest cost2.2 2.8 2.3 3.4 
Actuarial loss (gain)2.3 10.3 (0.9)27.5 
Settlements and curtailments(4.6)— (1.6)— 
Plan Amendments— — — 0.2 
Benefits paid(4.8)(3.8)(4.1)(5.9)
Foreign currency exchange rate changes— — 9.4 (8.2)
Benefit obligation, end of year76.0 80.2 175.1 167.8 
Changes in plan assets:
Fair value of plan assets, beginning of year68.6 69.3 120.0 115.8 
Actual return on plan assets5.1 2.7 1.1 13.5 
Employer contributions0.3 0.4 5.3 3.1 
Settlements and curtailments(4.6)— — — 
Benefits paid(4.8)(3.8)(4.1)(5.9)
Foreign currency exchange rate changes— — 6.9 (6.5)
Fair value of plan assets, end of year64.6 68.6 129.2 120.0 
Funded Status$(11.4)$(11.6)$(45.9)$(47.8)
Amounts recognized in statement of financial position
Deferred charges and other$— $— $3.0 $3.0 
Other accrued expenses0.3 0.3 0.4 0.5 
Other long-term liabilities11.1 11.3 48.5 50.3 
Accumulated other comprehensive loss18.8 19.3 51.3 49.9 
Weighted average assumptions
Discount rate2.46%3.04%
0.50 - 6.90%
0.75 - 7.70%
Rate of compensation increaseN/AN/A
2.25 - 6.00%
2.25 - 6.00%
The net loss in Accumulated Other Comprehensive Loss expected to be recognized in continuing operations during the year ended September 30, 2021 is $4.4 million.
The following table contains the components of net periodic benefit cost from defined benefit plans for the years ended September 30, 2020, 2019 and 2018:
U.S. PlansNon U.S. Plans
(in millions)202020192018202020192018
Service cost$0.7 $0.4 $0.4 $2.2 $1.9 $2.0 
Interest cost2.2 2.8 2.7 2.3 3.4 3.6 
Expected return on assets(4.1)(4.4)(4.5)(3.9)(3.9)(4.2)
Settlements and curtailments0.9 — — 0.1 0.3 0.1 
Recognized net actuarial loss0.9 0.2 1.1 3.4 1.8 1.4 
Net periodic benefit cost$0.6 $(1.0)$(0.3)$4.1 $3.5 $2.9 
Weighted average assumptions
Discount rate3.04%4.10%3.70%
0.75 - 7.70%
1.00 - 8.30%
1.13 - 7.50%
Expected return on plan assets6.50%6.50%7.00%
0.75 - 3.40%
1.00 - 4.01%
1.13 - 4.13%
Rate of compensation increaseN/AN/AN/A
2.25 - 6.00%
2.25 - 7.00%
1.37 - 7.00%
The discount rate is used to calculate the projected benefit obligation. The discount rate used is based on the rate of return on government bonds as well as current market conditions of the respective countries where the plans are established. The expected return on plan assets is based on the Company’s expectation of the long-term average rate of return of the capital market in which the plans invest. The expected return reflects the target asset allocations and considers the historical returns earned for each asset category. The components of net periodic benefit cost other than the service cost component are recognized as Other Non-Operating (Income) Expense, Net on the Statement of Income.
The Company established formal investment policies for the assets associated with these plans. Policy objectives include maximizing long-term return at acceptable risk levels, diversifying among asset classes, if appropriate, and among investment managers, as well as establishing relevant risk parameters within each asset class. Specific asset class targets are based on the results of periodic asset/liability studies. The investment policies permit variances from the targets within certain parameters. The plan assets currently do not include holdings of the Company’s common stock.
Below is a summary allocation of defined benefit plan assets as of September 30, 2020 and 2019:
U.S. Plans
Non U.S. Plans
Asset Type
2020201920202019
Equity Securities
46 %62 %— %— %
Fixed Income Securities
51 %35 %19 %20 %
Other
3 %3 %81 %80 %
Total
100 %100 %100 %100 %
The fair value of defined benefit plan assets by asset category as of September 30, 2020 and 2019 are as follows:
September 30, 2020September 30, 2019
(in millions)
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Cash & cash equivalents
$9.3 $— $— $9.3 $8.3 $— $— $8.3 
Equity
11.9 10.7 — 22.6 16.8 13.1 — 29.9 
Fixed income securities
22.3 6.4 — 28.7 21.6 — — 21.6 
Foreign equity
7.2 — — 7.2 11.4 — — 11.4 
Foreign fixed income securities
1.3 24.7 — 26.0 2.1 23.6 — 25.7 
Life insurance contracts
— 42.1 — 42.1 — 37.4 — 37.4 
Other
1.7 56.2 — 57.9 2.2 52.1 — 54.3 
Total plan assets
$53.7 $140.1 $— $193.8 $62.4 $126.2 $— $188.6 
The following benefit payments are expected to be paid:
(in millions)
Amount
2021$9.0 
20228.5 
20238.7 
20249.4 
20259.9 
2025-2029
55.3 
Defined Contribution PlansThe Company sponsored defined contribution plans in which eligible participants may defer a fixed amount or a percentage of their eligible compensation, subject to limitations, pursuant to Section 401(k) of the Internal Revenue Code. The Company made discretionary matching contributions of eligible compensation. The Company also sponsors defined contribution plans for eligible employees of certain foreign subsidiaries. Contributions are discretionary and evaluated annually. Aggregate contributions charged to operations, including discretionary amounts, for the years ended September 30, 2020, 2019 and 2018, were $12.0 million, $11.7 million, and $10.7 million, respectively.