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EMPLOYEE BENEFIT PLANS
 12 Months Ended
Sep. 30, 2023
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, 2023 and 2022:
U.S. Plans
Non U.S. Plans
(in millions)
2023202220232022
Changes in benefit obligation:
Benefit obligation, beginning of year$53.5 $71.4 $101.1 $176.1 
Service cost0.6 0.5 0.8 1.2 
Interest cost2.8 1.9 4.6 2.1 
Actuarial gain
(1.7)(16.1)(4.5)(45.7)
Benefits paid(4.3)(4.2)(4.2)(4.4)
Foreign currency exchange rate changes— — 8.7 (28.2)
Benefit obligation, end of year50.9 53.5 106.5 101.1 
Changes in plan assets:
Fair value of plan assets, beginning of year50.3 69.6 93.1 147.4 
Actual return on plan assets2.9 (15.2)(1.1)(30.1)
Employer contributions0.1 0.1 6.8 4.8 
Benefits paid(4.3)(4.2)(4.2)(4.4)
Foreign currency exchange rate changes— — 8.1 (24.6)
Fair value of plan assets, end of year49.0 50.3 102.7 93.1 
Funded Status$(1.9)$(3.2)$(3.8)$(8.0)
Amounts recognized in statement of financial position
Deferred charges and other$— $— $9.6 $4.6 
Other accrued expenses0.1 0.1 — — 
Other long-term liabilities1.8 3.1 13.4 12.6 
Accumulated other comprehensive loss9.4 10.9 23.8 21.8 
Weighted average assumptions
Discount rate5.72%5.37%
4.00 - 5.20%
3.70 - 5.20%
Rate of compensation increaseN/AN/A
2.75%
2.75%
The following table summarizes the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for defined benefit plans with projected benefit obligations in excess of plan assets:
U.S. PlansNon U.S. Plan
(in millions)2023202220232022
Projected benefit obligation$50.9 $53.5 $57.0 $51.8 
Accumulated benefit obligation50.9 53.5 57.0 49.0 
Fair value of plan assets49.0 50.3 43.5 39.2 
The following table contains the components of net periodic benefit cost from defined benefit plans for the years ended September 30, 2023, 2022 and 2021:
U.S. PlansNon U.S. Plans
(in millions)202320222021202320222021
Service cost$0.6 $0.5 $0.5 $0.8 $1.2 $1.5 
Interest cost2.8 1.9 1.8 4.6 2.1 2.1 
Expected return on assets(3.1)(3.2)(3.7)(3.9)(4.0)(4.0)
Recognized net actuarial loss— 0.8 1.4 0.8 2.8 3.4 
Net periodic benefit cost$0.3 $— $— $2.3 $2.1 $3.0 
Weighted average assumptions
Discount rate5.37%2.70%2.46%
3.70 - 5.20%
1.00 - 2.00%
0.70 - 1.75%
Expected return on plan assets5.25%5.00%6.00%
2.54 - 5.58%
0.99 - 4.06%
0.70 - 3.40%
Rate of compensation increaseN/AN/AN/A
2.75%
2.50%
 2.25%
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, 2023 and 2022:
U.S. Plans
Non U.S. Plans
Asset Type
2023202220232022
Equity Securities
30 %31 %— %— %
Fixed Income Securities
70 %69 %49 %42 %
Other
— %— %51 %58 %
Total
100 %100 %100 %100 %
The fair value of defined benefit plan assets by asset category as of September 30, 2023 and 2022 are as follows:
September 30, 2023September 30, 2022
(in millions)
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Cash & cash equivalents$0.3 $— $— $0.3 $0.2 $— $— $0.2 
Equity4.6 5.7 — 10.3 4.9 6.1 — 11.0 
Fixed income securities24.2 7.8 — 32.0 25.1 8.1 — 33.2 
Foreign equity4.5 — — 4.5 4.4 — — 4.4 
Foreign fixed income securities— 50.8 — 50.8 — 39.4 — 39.4 
Life insurance contracts— 40.7 — 40.7 — 36.7 — 36.7 
Annuity policy— — 10.4 10.4 — — 10.6 10.6 
Other— 2.7 — 2.7 — 7.9 — 7.9 
Total plan assets$33.6 $107.7 $10.4 $151.7 $34.6 $98.2 $10.6 $143.4 
Level 3 assets consistent of a purchased group annuity using plan assets and escrow funds withheld as part of the acquisition of Armitage during the year ended September 30, 2021, to cover the projected benefit obligation assumed in the purchase. The transaction represents an annuity buy-in, in accordance with United Kingdom ("UK") pension regulations, where the assets of the plan were invested in a bulk-purchase annuity policy with an insurance company, under which the Company retains both the fair value of the annuity contract and the pension benefit obligations related to this plan. Following the buy-in, individual policies will replace the bulk annuity policy in a buy-out transaction, which is expected to be completed in a subsequent period, where the Company would de-recognize the assets and liabilities of the pension plan and realize a settlement gain or loss as a component of the net periodic pension cost. As of September 30, 2023, the fair value of the annuity contract is based on the calculated pension benefit obligation covered.
The following benefit payments are expected to be paid:
(in millions)
U.S. PlansNon U.S. Plans
2024$4.9 $4.4 
20254.2 4.7 
20264.2 5.0 
20274.2 5.7 
20284.2 5.9 
2029 - 203319.9 30.8 
Defined Contribution Plans
The 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, 2023, 2022 and 2021, were $7.5 million, $7.4 million, and $6.0 million, respectively.