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Retirement Benefit Plans | 12 Months Ended
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Sep. 30, 2012
Retirement Benefit Plans [Abstract] |
Retirement Benefit Plans | 8. Retirement Benefit Plans
8. | Retirement Benefit Plans
Defined Benefit Plans The Company and certain of its subsidiaries sponsor defined benefit pension plans covering most of its employees. The Company’s funding policy for its defined benefit pension plans is based on an actuarially determined cost method allowable under Internal Revenue Service regulations. One of the Company’s defined benefit pension plans, which covers substantially all non-union employees of the Company’s U.S. operations who were hired prior to March 1, 2003, was frozen in 2003. Consequently, although the plan otherwise continues, the plan ceased the accrual of additional pension benefits for service subsequent to March 1, 2003. The Company uses a September 30 measurement date for its U.S. defined benefit pension plans. Net pension expense, benefit obligations and plan assets for the Company-sponsored defined benefit pension plans consists of the following:
|  | Years Ended September 30, |
|  | 2012 |  |  | 2011 |
Service cost |  | $ | 266 |  |  | $ | 273 |
Interest cost |  |  | 988 |  |  |  | 1,059 |
Expected return on plan assets |  |  | (1,413 | ) |  |  | (1,454 | )
Amortization of prior service cost |  |  | 47 |  |  |  | 117 |
Amortization of net loss |  |  | 861 |  |  |  | 682 |
Early retirement expense |  |  | 0 |  |  |  | 61 |
Settlement cost |  |  | 513 |  |  |  | 0 |
Net pension expense for defined benefit plan |  | $ | 1,262 |  |  | $ | 738 |
The status of all defined benefit pension plans at September 30 is as follows:
|  | 2012 |  |  | 2011 |
Benefit obligations: |  |  |  |  |  |  |  |
Benefit obligations at beginning of year |  | $ | 24,030 |  |  | $ | 21,889 |
Service cost |  |  | 266 |  |  |  | 273 |
Interest cost |  |  | 988 |  |  |  | 1,059 |
Amendments |  |  | 0 |  |  |  | 0 |
Actuarial loss |  |  | 2,659 |  |  |  | 1,821 |
Benefits paid |  |  | (1,637 | ) |  |  | (1,073 | )
Early retirement expense |  |  | 0 |  |  |  | 61 |
Benefit obligations at end of year |  | $ | 26,306 |  |  | $ | 24,030 |
Plan assets: |  |  |  |  |  |  |  |
Plan assets at beginning of year |  | $ | 16,642 |  |  | $ | 16,653 |
Actual return on plan assets |  |  | 2,929 |  |  |  | 364 |
Employer contributions |  |  | 1,015 |  |  |  | 698 |
Benefits paid |  |  | (1,637 | ) |  |  | (1,073 | )
Plan assets at end of year |  | $ | 18,949 |  |  | $ | 16,642 |
|  | Plans in which Assets Exceed Benefit Obligations at September 30, |  |  | Plans in which Benefit Obligations Exceed Assets at September 30, |
|  | 2012 |  |  | 2011 |  |  | 2012 |  |  | 2011 |
Reconciliation of funded status: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Plan assets in excess of (less than) projected benefit obligations |  | $ | 520 |  |  | $ | 772 |  |  | $ | (7,877 | ) |  | $ | (8,160 | )
Amounts recognized in accumulated other comprehensive loss: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net loss |  |  | 872 |  |  |  | 562 |  |  |  | 9,907 |  |  |  | 10,449 |
Prior service cost |  |  | 0 |  |  |  | 39 |  |  |  | 31 |  |  |  | 39 |
Net amount recognized in the consolidated balance sheets |  | $ | 1,392 |  |  | $ | 1,373 |  |  | $ | 2,061 |  |  | $ | 2,328 |
Amounts recognized in the consolidated balance sheets are: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other assets |  | $ | 520 |  |  | $ | 772 |  |  | $ | 0 |  |  | $ | 0 |
Other long-term liabilities |  |  | 0 |  |  |  | 0 |  |  |  | (7,877 | ) |  |  | (8,160 | )
Accumulated other comprehensive loss – pretax |  |  | 872 |  |  |  | 601 |  |  |  | 9,938 |  |  |  | 10,488 |
Net amount recognized in the consolidated balance sheets |  | $ | 1,392 |  |  | $ | 1,373 |  |  | $ | 2,061 |  |  | $ | 2,328 |
The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit costs during fiscal 2013 are as follows:
|  | Plans in which Assets Exceed Benefit Obligations |  |  | Plans in which Benefit Obligations Exceed Assets |
Net loss |  | $ | 44 |  |  | $ | 862 |
Prior service cost |  |  | 0 |  |  |  | 8 |
Total |  | $ | 44 |  |  | $ | 870 |
Where applicable, the following weighted-average assumptions were used in developing the benefit obligation and the net pension expense for defined benefit pension plans:
|  | Years Ended September 30, |
|  | 2012 |  |  | 2011 |
Discount rate for liabilities |  |  | 3.6 | % |  |  | 4.2 | %
Discount rate for expenses |  |  | 4.2 | % |  |  | 5.0 | %
Expected return on assets |  |  | 8.1 | % |  |  | 8.3 | %
The Company classifies and discloses pension plan assets in one of the following three categories: (i) Level 1 - quoted market prices in active markets for identical assets; (ii) Level 2 - observable market based inputs or unobservable inputs that are corroborated by market data or (iii) Level 3 - unobservable inputs that are not corroborated by market data. Level 1 and Level 2 assets are valued using market based inputs. Level 3 asset values are determined by the trustees using a discounted cash flow model. The following tables set forth the asset allocation of the Company’s defined benefit pension plan assets and summarize the fair values and levels within the fair value hierarchy for such plan assets as of September 30, 2012 and 2011:
September 30, 2012 |  | Asset Amount |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
U.S. equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Large value |  | $ | 288 |  |  | $ | 0 |  |  | $ | 288 |  |  | $ | 0 |
Large blend |  |  | 8,592 |  |  |  | 0 |  |  |  | 8,592 |  |  |  | 0 |
Large growth |  |  | 640 |  |  |  | 0 |  |  |  | 640 |  |  |  | 0 |
Mid blend |  |  | 19 |  |  |  | 0 |  |  |  | 19 |  |  |  | 0 |
Small blend |  |  | 4 |  |  |  | 0 |  |  |  | 4 |  |  |  | 0 |
Non-U.S equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign large blend |  |  | 1,295 |  |  |  | 0 |  |  |  | 1,295 |  |  |  | 0 |
Diversified emerging markets |  |  | 70 |  |  |  | 0 |  |  |  | 70 |  |  |  | 0 |
U.S. debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Inflation protected bond |  |  | 952 |  |  |  | 0 |  |  |  | 952 |  |  |  | 0 |
Intermediate term bond |  |  | 6,412 |  |  |  | 0 |  |  |  | 4,319 |  |  |  | 2,093 |
High inflation bond |  |  | 299 |  |  |  | 0 |  |  |  | 299 |  |  |  | 0 |
Non-U.S. debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Emerging markets bonds |  |  | 239 |  |  |  | 0 |  |  |  | 239 |  |  |  | 0 |
Stable value: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term bonds |  |  | 139 |  |  |  | 139 |  |  |  | 0 |  |  |  | 0 |
Total plan assets at fair value |  | $ | 18,949 |  |  | $ | 139 |  |  | $ | 16,717 |  |  | $ | 2,093 |
September 30, 2011 |  | Asset Amount |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
U.S. equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Large value |  | $ | 204 |  |  | $ | 0 |  |  | $ | 204 |  |  | $ | 0 |
Large blend |  |  | 6,945 |  |  |  | 0 |  |  |  | 6,945 |  |  |  | 0 |
Large growth |  |  | 832 |  |  |  | 0 |  |  |  | 832 |  |  |  | 0 |
Mid blend |  |  | 43 |  |  |  | 0 |  |  |  | 43 |  |  |  | 0 |
Small blend |  |  | 34 |  |  |  | 0 |  |  |  | 34 |  |  |  | 0 |
Non-U.S. equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign large blend |  |  | 1,048 |  |  |  | 0 |  |  |  | 1,048 |  |  |  | 0 |
Diversified emerging markets |  |  | 109 |  |  |  | 0 |  |  |  | 109 |  |  |  | 0 |
U.S. debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Inflation protected bond |  |  | 489 |  |  |  | 0 |  |  |  | 489 |  |  |  | 0 |
Intermediate term bond |  |  | 6,176 |  |  |  | 0 |  |  |  | 4,083 |  |  |  | 2,093 |
High inflation bond |  |  | 328 |  |  |  | 0 |  |  |  | 328 |  |  |  | 0 |
Non-U.S. debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Emerging markets bonds |  |  | 257 |  |  |  | 0 |  |  |  | 257 |  |  |  | 0 |
Stable value: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term bonds |  |  | 177 |  |  |  | 177 |  |  |  | 0 |  |  |  | 0 |
Total plan assets at fair value |  | $ | 16,642 |  |  | $ | 177 |  |  | $ | 14,372 |  |  | $ | 2,093 |
Changes in the fair value of the Company’s Level 3 investments during the years ending September 30, 2012 and 2011 were as follows:
|  | 2012 |  |  | 2011 |
Balance at beginning of year |  | $ | 2,093 |  |  | $ | 1,911 |
Actual return on plan assets |  |  | 118 |  |  |  | 144 |
Purchases and sales of plan assets, net |  |  | (118 | ) |  |  | 38 |
Balance at end of year |  | $ | 2,093 |  |  | $ | 2,093 |
Investment objectives relative to the assets of the Company’s defined benefit pension plans are to (i) optimize the long-term return on the plans’ assets while assuming an acceptable level of investment risk, (ii) maintain an appropriate diversification across asset categories and among investment managers, and (iii) maintain a careful monitoring of the risk level within each asset category. Asset allocation objectives are established to promote optimal expected returns and volatility characteristics given the long-term time horizon for fulfilling the obligations of the Company’s defined benefit pension plans. Selection of the appropriate asset allocation for the plans’ assets was based upon a review of the expected return and risk characteristics of each asset category in relation to the anticipated timing of future plan benefit payment obligations. The Company has a long-term objective for the allocation of plan assets. However, the Company realizes that actual allocations at any point in time will likely vary from this objective due principally to (i) the impact of market conditions on plan asset values and (ii) required cash contributions to and distribution from the plans. The “Asset Allocation Range” anticipates these potential scenarios and provides flexibility for the Plan’s investments to vary around the objective without triggering a reallocation of the assets, as noted by the following:
|  | Percent of Plan Assets at September 30, |  |  | Asset Allocation Range |
|  | 2012 |  |  | 2011 |  |
U.S. equities |  |  | 50 | % |  |  | 48 | % |  |  | 30% to 70% |
Non-U.S. equities |  |  | 7 | % |  |  | 7 | % |  |  | 0% to 20% |
U.S. debt securities |  |  | 41 | % |  |  | 42 | % |  |  | 20% to 70% |
Non-U.S. debt securities |  |  | 1 | % |  |  | 2 | % |  |  | 0% to 10% |
Other securities |  |  | 1 | % |  |  | 1 | % |  |  | 0% to 60% |
Total |  |  | 100 | % |  |  | 100 | % |  |  |  |
External consultants assist the Company with monitoring the appropriateness of the above investment strategy and the related asset mix and performance. To develop the expected long-term rate of return assumptions on plan assets, generally the Company uses long-term historical information for the target asset mix selected. Adjustments are made to the expected long-term rate of return assumptions when deemed necessary based upon revised expectations of future investment performance of the overall investments markets. The Company expects to make contributions of approximately $1,423 to its defined benefit pension plans during fiscal 2013. The Company has carryover balances from previous periods that may be available for use as a credit to reduce the amount of contributions that the Company is required to make to certain of its defined benefit pension plans in fiscal 2013. The Company’s ability to elect to use such carryover balances will be determined based on the actual funded status of each defined benefit pension plan relative to the plan’s minimum regulatory funding requirements. The following defined benefit payment amounts are expected to be made in the future:
Years Ending September 30, |  | Projected Benefit Payments |
2013 |  | $ | 1,991 |
2014 |  |  | 1,370 |
2015 |  |  | 1,269 |
2016 |  |  | 1,288 |
2017 |  |  | 1,804 |
2018-2022 |  |  | 8,279 |
Multi-Employer Plans The Company contributes to two (2) U.S. multi-employer retirement plans for certain union employees, as follow:
Pension Fund |  | Pension Protection Act Zone Status |  |  | FIP/RP Status Pending/ Implemented |  |  | Contributions by the Company |  |  | Surcharge Imposed |  |  | Expiration of Collective Bargaining Agreement |
|  | 2012 |  |  | 2011 |  |  |  | 2012 |  |  | 2011 |  |  |
Fund 1 |  |  | Green |  |  |  | Green |  |  |  | No |  |  | $ | 52 |  |  | $ | 60 |  |  |  | No |  |  |  | 5/31/2015 |
Fund 2 |  |  | Yellow |  |  |  | Yellow |  |  |  | Implemented |  |  | $ | 205 |  |  | $ | 144 |  |  |  | Yes |  |  |  | 7/31/2013 |
1 | The fund is the IAM National Pension Fund – EIN 51-6031295 / Plan number 002. The IAM National Pension Fund utilized the special 30-year amortization provided by Public law 111-192, section 211 to amortize its losses from 2008.
2 | The fund is the Boilermaker-Blacksmith National Pension Trust – EIN 48-6168020 / Plan number 001.
The plans’ year-end to which the zone status relates is December 31, 2011 and 2010. The risks of participating in the multi-employer retirement plan are different from a single-employer plan in that i) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers, and iii) if the Company chooses to stop participating in the multi-employer retirement plan, the Company may be required to pay the plan an amount based on the unfunded status of the plan, referred to as a withdrawal liability. Defined Contribution Plans Substantially all non-union U.S. employees of the Company and its U.S. subsidiaries are eligible to participate in the Company’s U.S. defined contribution plan. The Company makes non-discretionary, regular matching contributions to this plan equal to an amount that represents one hundred percent (100%) of a participant’s deferral contribution up to one percent (1%) of eligible compensation plus eighty percent (80%) of a participant’s deferral contribution between one percent (1%) and six percent (6%) of eligible compensation. The Company’s regular matching contribution expense for its U.S. defined contribution plan in 2012 and 2011 was $607 and $343, respectively. This defined contribution plan provides that the Company may also make an additional discretionary matching contribution during those periods in which the Company achieves certain performance levels. The Company’s additional discretionary matching contribution expense in 2012 and 2011 was $71 and $185, respectively. The Company’s United Kingdom subsidiary sponsors a defined contribution plan for certain of its employees. The Company contributes annually 5% of eligible employees’ compensation, as defined. Total contribution expense in 2012 and 2011 was $21 and $20, respectively. The Company’s Swedish subsidiary sponsors defined contribution plans for its employees. The Company contributes annually a percentage of eligible employees’ compensation, as defined. Total contribution expense in fiscal 2012 and 2011 was $9 and $6, respectively.

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- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 7, 21, 22 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FAS106-2 -Paragraph 20, 21, 22 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Implementation Guide (Q and A) -Number FAS88 -Paragraph 63 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 106 -Paragraph 518 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5, 6, 7, 8 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph b -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 8 -Subparagraph m -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 87 -Paragraph 264 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 30 -Paragraph 26 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 03-2 -Paragraph 8 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph h -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph a -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph q -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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