XML 38 R17.htm IDEA: XBRL DOCUMENT
v3.24.3

POST EMPLOYMENT BENEFITS | 12 Months Ended
--- | ---
Sep. 30, 2024
Retirement Benefits [Abstract] |
POST EMPLOYMENT BENEFITS | POST EMPLOYMENT BENEFITS Defined Benefit Plan The Company has a defined benefit plan in the U.K., the Harlan Laboratories UK Limited Occupational Pension Scheme (the "Pension Plan"), which operated through April 2012. As of April 30, 2012, the accumulation of plan benefits of employees in the Pension Plan was permanently suspended and therefore the Pension Plan was curtailed. The following tables summarize the changes in the benefit obligation funded status of the Pension Plan and amounts reflected in the Company’s consolidated balance sheets as of September 30, 2024 and 2023.
| Fiscal Year Ended September 30, | Fiscal Year Ended September 30,
| 2024 | 2023
Accumulated benefit obligation: | $ | 15,545 |  | $ | 12,957 |
Change in projected benefit obligation: |  |
Projected benefit obligation, beginning of period | $ | 12,957 |  | $ | 12,812 |
Other | 254 |  | — |
Interest cost | 741 |  | 733 |
Benefits paid | (684) |  | (570) |
Foreign currency translation adjustment | 1,328 |  | 1,235 |
Actuarial gains (losses) | 949 |  | (1,253) |
Projected benefit obligation at end of period | 15,545 |  | 12,957 |
Change in fair value of plan assets: |  |
Fair value of plan assets, beginning of period | $ | 15,993 |  | $ | 14,385 |
Actual gain (loss) on plan assets | 1,764 |  | (427) |
Employer contributions | — |  | 1,226 |
Foreign currency translation adjustment | 1,614 |  | 1,379 |
Benefits paid | (684) |  | (570) |
Fair value of plan assets, end of period | 18,687 |  | 15,993 |
Funded status | $ | 3,142 |  | $ | 3,036 |
In July 2024, the U.K. Court of Appeal upheld a ruling in the matter of Virgin Media Limited v NTL Pension Trustees II Limited, a decision that the Company was not a party to or involved in, that certain historical amendments for contracted out defined benefit schemes were invalid if they were not accompanied by the correct actuarial confirmation. The Company and its U.K. pension scheme trustee are reviewing this development and considering whether this decision has any implications for the Pension Plan. The net periodic benefit costs, which are presented within general and administrative expenses, under the Pension Plan were as follows:
| Fiscal Year Ended September 30, | Fiscal Year Ended September 30,
| 2024 | 2023
Components of net periodic benefit expense: |  |
Interest cost | 741 |  | 733 |
Expected return on assets | (786) |  | (798) |
Amortization of prior gain | (142) |  | (152) |
Net periodic benefit cost | $ | (187) |  | $ | (217) |
Gains Related to Changes in Benefit Obligation The actuarial gains during the twelve months ended September 30, 2024 were primarily due to decreased discount rate assumptions as a result of interest rate trends in the U.K. The actuarial gains during the twelve months ended September 30, 2023 were due to a significant increase in the discount rate as a result of rising interest rates in the U.K. The remainder of the changes in both periods were cumulative translation adjustments and gains in asset values. The Company uses the corridor approach when amortizing actuarial gains and losses. Under the corridor approach, the actuarial gains and actuarial losses in excess of 10% of the greater of the beginning of year benefit obligation or market related value of plan assets are amortized over a fixed period of 10 years. This is a shorter period than the expected average life expectancy of the members in the Plan. Assumptions The major assumptions used in determining the net periodic benefit costs for the fiscal year ended September 30, 2024 and 2023:
| Fiscal Year Ended September 30, | Fiscal Year Ended September 30,
| 2024 | 2023
Discount rate | 5.67 | % | 5.33 | %
Expected return on plan assets | 4.85 | % | 4.96 | %
Our expected return on plan asset assumption, used to determine benefit obligations, is based on historical long-term rates of return on investments. Many factors, including portfolio allocation, target portfolio allocation and expected expenses, are evaluated during the process of determining the expected return on plan assets. Discount rates were determined for the defined benefit retirement plan at the measurement date to reflect the yield of a portfolio of high-quality bonds matched against the timing and amounts of projected future benefit payments. At September 30, 2024, we are increasing our long-term rate of return assumption to 5.20% for pension plan assets. The major assumptions used in determining benefit obligations were as follows:
| Fiscal Year Ended September 30, | Fiscal Year Ended September 30,
| 2024 | 2023
Discount rate | 5.04 | % | 5.67 | %
Rate of compensation increases | 0.00 | % | 0.00 | %
Pension Plan Assets The Company maintains target allocation percentages among various asset categories based on an investment policy designed to achieve long-term objectives of return, while mitigating downside risk and considering expected cash flows. The Company’s investment policy is reviewed from time to time to ensure consistency with long-term objectives. Plan assets distribution was as follows:
| Fiscal Year Ended September 30, | Fiscal Year Ended September 30,
| 2024 | 2023
Cash | 2.69 | % | 3.31 | %
Equity securities | 3.47 |  | 2.35 |
Debt securities | 91.05 |  | 91.23 |
Real estate mutual fund | 1.10 |  | 1.20 |
Other | 1.69 |  | 1.91 |
Total | 100.00 | % | 100.00 | %
The fair value of total plan assets by asset category and fair value hierarchy levels as of September 30, 2024 were as follows:
| Fair value as of September 30, 2024 |  | Fair Value Measurements at Reporting Date Using:
|  | Level 1 |  | Level 2 |  | Level 3
Cash | $ | 432 |  |  | $ | 432 |  |  | $ | — |  |  | $ | — |
Fixed income securities: |  |  |  |  |  |  |
Investment grade corporate bonds | 9,300 |  |  | — |  |  | 9,300 |  |  | — |
Government bonds | 7,360 |  |  | — |  |  | 7,360 |  |  | — |
Other types of investments: |  |  |  |  |  |  |
Multi-asset fund | 1,595 |  |  | — |  |  | 1,595 |  |  |
Total | $ | 18,687 |  |  | $ | 432 |  |  | $ | 18,255 |  |  | $ | — |
The method of calculation of the fair value of each level of investment is described in Note 2 - Summary of Significant Accounting Policies. The fair value of total plan assets by asset category and fair value hierarchy levels as of September 30, 2023 were as follows:
| Fair value as of September 30, 2023 |  | Fair Value Measurements at Reporting Date Using:
|  | Level 1 |  | Level 2 |  | Level 3
Cash | $ | 431 |  |  | $ | 431 |  |  | $ | — |  |  | $ | — |
Fixed income securities: |  |  |  |  |  |  |
Investment grade corporate bonds | 14,184 |  |  | — |  |  | 14,184 |  |  | — |
Other types of investments: |  |  |  |  |  |  |
Multi-asset fund | 1,378 |  |  | — |  |  | 1,378 |  |  | — |
Total | $ | 15,993 |  |  | $ | 431 |  |  | $ | 15,562 |  |  | $ | — |
The method of calculation of the fair value of each level of investment is described in Note 2 - Summary of Significant Accounting Policies. Pension Funding and Payments During the fiscal year ended September 30, 2024, the Company did not contribute to the Pension Plan and does not expect to contribute any amounts to the Pension Plan within the next twelve months. Estimated pension benefit payments expected to be paid in cash in each of the next five years and in the aggregate for the following five years thereafter are as follows:
| 2025 |  | 2026 |  | 2027 |  | 2028 |  | 2029 |  | Thereafter |  | Total
Projected Benefit Payments | $ | 726 |  |  | $ | 863 |  |  | $ | 1,080 |  |  | $ | 908 |  |  | $ | 897 |  |  | $ | 4,786 |  |  | $ | 9,260 |
Defined Contribution Plans The Company has defined contribution benefit plans that cover its employees in the U.S., U.K. (the Group Personal Pension Plan) and the Netherlands. Defined contribution benefit expense for the twelve months ended September 30, 2024 and 2023 were $2,807 and $4,596, respectively.

X
- References No definition available. + Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for defined benefit plan. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 55 -Paragraph 17 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480482/715-20-55-17 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 912 -SubTopic 715 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477317/912-715-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/715-20/tableOfContent + Details
Name: | us-gaap_DefinedBenefitPlanTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration