Retirement Benefits (Tables)
|
12 Months Ended |
Sep. 30, 2015 |
Compensation and Retirement Disclosure [Abstract] |
|
Schedule of Net Benefit Costs |
The components of net periodic benefit cost (income) are (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Other Postretirement | | | Pension Benefits | | Benefits | | | 2015 | | 2014 | | 2013 | | 2015 | | 2014 | | 2013 | Service cost | | $ | 85.7 |
| | $ | 78.5 |
| | $ | 92.1 |
| | $ | 1.5 |
| | $ | 2.0 |
| | $ | 2.3 |
| Interest cost | | 167.2 |
| | 174.2 |
| | 160.2 |
| | 4.1 |
| | 6.5 |
| | 6.3 |
| Expected return on plan assets | | (223.2 | ) | | (217.9 | ) | | (226.3 | ) | | — |
| | — |
| | — |
| Amortization: | | | | | | | | | | | | | Prior service credit | | (2.7 | ) | | (2.7 | ) | | (2.5 | ) | | (14.5 | ) | | (10.2 | ) | | (10.7 | ) | Net actuarial loss | | 118.7 |
| | 99.7 |
| | 144.6 |
| | 4.5 |
| | 2.9 |
| | 4.4 |
| Settlements | | — |
| | (0.1 | ) | | — |
| | — |
| | — |
| | — |
| Net periodic benefit cost (income) | | $ | 145.7 |
| | $ | 131.7 |
| | $ | 168.1 |
| | $ | (4.4 | ) | | $ | 1.2 |
| | $ | 2.3 |
|
|
Schedule of Net Funded Status |
Benefit obligation, plan assets, funded status, and net liability information is summarized as follows (in millions): | | | | | | | | | | | | | | | | | | | | Pension Benefits | | Other Postretirement Benefits | | | 2015 | | 2014 | | 2015 | | 2014 | Benefit obligation at beginning of year | | $ | 4,236.6 |
| | $ | 3,804.8 |
| | $ | 122.2 |
| | $ | 150.2 |
| Service cost | | 85.7 |
| | 78.5 |
| | 1.5 |
| | 2.0 |
| Interest cost | | 167.2 |
| | 174.2 |
| | 4.1 |
| | 6.5 |
| Actuarial losses (gains) | | 230.2 |
| | 431.5 |
| | (20.1 | ) | | 14.2 |
| Plan amendments | | (3.5 | ) | | 1.2 |
| | — |
| | (37.0 | ) | Plan participant contributions | | 4.9 |
| | 5.4 |
| | 5.4 |
| | 8.2 |
| Benefits paid | | (329.1 | ) | | (218.8 | ) | | (17.7 | ) | | (21.0 | ) | Currency translation and other | | (109.8 | ) | | (40.2 | ) | | (2.1 | ) | | (0.9 | ) | Benefit obligation at end of year | | 4,282.2 |
| | 4,236.6 |
| | 93.3 |
| | 122.2 |
| Plan assets at beginning of year | | 3,591.0 |
| | 3,367.0 |
| | — |
| | — |
| Actual return on plan assets | | 29.5 |
| | 425.2 |
| | — |
| | — |
| Company contributions | | 41.0 |
| | 42.1 |
| | 12.3 |
| | 12.8 |
| Plan participant contributions | | 4.9 |
| | 5.4 |
| | 5.4 |
| | 8.2 |
| Benefits paid | | (329.1 | ) | | (218.8 | ) | | (17.7 | ) | | (21.0 | ) | Currency translation and other | | (74.8 | ) | | (29.9 | ) | | — |
| | — |
| Plan assets at end of year | | 3,262.5 |
| | 3,591.0 |
| | — |
| | — |
| Funded status of plans | | $ | (1,019.7 | ) | | $ | (645.6 | ) | | $ | (93.3 | ) | | $ | (122.2 | ) |
|
Schedule of Amounts Recognized in Balance Sheet |
| | | | | | | | | | | | | | | | | | Net amount on balance sheet consists of: | | | | | | | | | Other assets | | $ | 0.1 |
| | $ | 1.4 |
| | $ | — |
| | $ | — |
| Compensation and benefits | | (11.3 | ) | | (12.2 | ) | | (11.4 | ) | | (14.9 | ) | Retirement benefits | | (1,008.5 | ) | | (634.8 | ) | | (81.9 | ) | | (107.3 | ) | Net amount on balance sheet | | $ | (1,019.7 | ) | | $ | (645.6 | ) | | $ | (93.3 | ) | | $ | (122.2 | ) |
|
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) |
Amounts included in accumulated other comprehensive loss, net of tax, at September 30, 2015 and 2014 which have not yet been recognized in net periodic benefit cost are as follows (in millions): | | | | | | | | | | | | | | | | | | | | Pension Benefits | | Other Postretirement Benefits | | | 2015 | | 2014 | | 2015 | | 2014 | Prior service cost (credit) | | $ | 3.0 |
| | $ | 4.0 |
| | $ | (22.9 | ) | | $ | (31.9 | ) | Net actuarial loss | | 1,099.9 |
| | 904.7 |
| | 17.1 |
| | 32.6 |
| Total | | $ | 1,102.9 |
| | $ | 908.7 |
| | $ | (5.8 | ) | | $ | 0.7 |
|
|
Schedule of Assumptions Used |
Net Periodic Benefit Cost Assumptions Significant assumptions used in determining net periodic benefit cost included in the Consolidated Statement of Operations for the period ended September 30 are (in weighted averages): | | | | | | | | | | | | | | | | | | | | | | Pension Benefits September 30, | | Other Postretirement Benefits September 30, | | | 2015 | | 2014 | | 2013 | | 2015 | | 2014 | | 2013 | U.S. Plans | | | | | | | | | | | | | Discount rate | | 4.50 | % | | 5.05 | % | | 4.15 | % | | 3.65 | % | | 4.60 | % | | 3.85 | % | Expected return on plan assets | | 7.50 | % | | 7.50 | % | | 8.00 | % | | — |
| | — |
| | — |
| Compensation increase rate | | 3.75 | % | | 3.75 | % | | 4.00 | % | | — |
| | — |
| | — |
| Non-U.S. Plans | | | | | | | | | | | | | Discount rate | | 3.01 | % | | 3.69 | % | | 3.37 | % | | 3.50 | % | | 4.20 | % | | 3.80 | % | Expected return on plan assets | | 5.31 | % | | 5.33 | % | | 5.42 | % | | — |
| | — |
| | — |
| Compensation increase rate | | 3.16 | % | | 3.11 | % | | 3.03 | % | | — |
| | — |
| | — |
|
Net Benefit Obligation Assumptions Significant assumptions used in determining the benefit obligations included in the Consolidated Balance Sheet are (in weighted averages): | | | | | | | | | | | | | | | | Pension Benefits September 30, | | Other Postretirement Benefits September 30, | | | 2015 | | 2014 | | 2015 | | 2014 | U.S. Plans | | | | | | | | | Discount rate | | 4.55 | % | | 4.50 | % | | 3.85 | % | | 3.65 | % | Compensation increase rate | | 3.75 | % | | 3.75 | % | | — |
| | — |
| Health care cost trend rate(1) | | — |
| | — |
| | 7.00 | % | | 7.00 | % | Non-U.S. Plans | | | | | | | | | Discount rate | | 2.67 | % | | 3.01 | % | | 3.60 | % | | 3.50 | % | Compensation increase rate | | 3.11 | % | | 3.16 | % | | — |
| | — |
| Health care cost trend rate(1) | | — |
| | — |
| | 5.39 | % | | 5.83 | % |
| | (1) | The health care cost trend rate reflects the estimated increase in gross medical claims costs. As a result of the plan amendment adopted effective October 1, 2002, our effective per person retiree medical cost increase is zero percent beginning in 2005 for the majority of our postretirement benefit plans. For our other plans, we assume the gross health care cost trend rate will decrease to 5.50% in 2018 for U.S. Plans and 4.50% in 2017 for Non-U.S. Plans. |
|
Schedule Of Weighted Average Allocation Of Plan Assets |
Our global weighted-average targeted and actual asset allocations at September 30, by asset category, are: | | | | | | | | | | | | | | Allocation | | Target | | September 30, | Asset Category | | Range | | Allocations | | 2015 | | 2014 | Equity securities | | 40% | – | 65% | | 51% | | 48% | | 50% | Debt securities | | 30% | – | 50% | | 39% | | 43% | | 42% | Other | | 0% | – | 15% | | 10% | | 9% | | 8% |
|
Schedule of Allocation of Plan Assets |
The following table presents our pension plans’ investments measured at fair value as of September 30, 2015:
| | | | | | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Total | U.S. Plans | | | | | | | | | Cash and cash equivalents | | $ | 5.1 |
| | $ | — |
| | $ | — |
| | $ | 5.1 |
| Equity securities: | | | | | | | | | Common stock | | 628.5 |
| | — |
| | — |
| | 628.5 |
| Mutual funds | | 174.6 |
| | — |
| | — |
| | 174.6 |
| Common collective trusts | | — |
| | 467.5 |
| | — |
| | 467.5 |
| Fixed income securities: | | | | | | | | | Corporate debt | | — |
| | 643.8 |
| | — |
| | 643.8 |
| Government securities | | 212.0 |
| | 121.3 |
| | — |
| | 333.3 |
| Common collective trusts | | — |
| | 124.8 |
| | — |
| | 124.8 |
| Other types of investments: | | | | | | | | | Private equity | | — |
| | — |
| | 70.2 |
| | 70.2 |
| Alternative equity | | — |
| | — |
| | 50.7 |
| | 50.7 |
| Insurance contracts | | — |
| | — |
| | 0.9 |
| | 0.9 |
| Non-U.S. Plans | | | | | | | | | Cash and cash equivalents | | 2.3 |
| | — |
| | — |
| | 2.3 |
| Equity securities: | | | | | | | | | Common stock | | 37.0 |
| | — |
| | — |
| | 37.0 |
| Common collective trusts | | — |
| | 259.5 |
| | — |
| | 259.5 |
| Fixed income securities: | | | | | | | | | Corporate debt | | — |
| | 40.0 |
| | — |
| | 40.0 |
| Government securities | | 2.8 |
| | 6.6 |
| | — |
| | 9.4 |
| Common collective trusts | | — |
| | 258.6 |
| | — |
| | 258.6 |
| Other types of investments: | | | | | | | | | Real estate funds | | — |
| | 79.4 |
| | 8.7 |
| | 88.1 |
| Insurance contracts | | — |
| | — |
| | 63.8 |
| | 63.8 |
| Other | | — |
| | 1.3 |
| | 3.1 |
| | 4.4 |
| Total plan investments | | $ | 1,062.3 |
| | $ | 2,002.8 |
| | $ | 197.4 |
| | $ | 3,262.5 |
|
The following table presents our pension plans’ investments measured at fair value as of September 30, 2014: | | | | | | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Total | U.S. Plans | | | | | | | | | Cash and cash equivalents | | $ | 1.9 |
| | $ | — |
| | $ | — |
| | $ | 1.9 |
| Equity securities: | | | | | | | | | Common stock | | 706.8 |
| | — |
| | — |
| | 706.8 |
| Mutual funds | | 216.8 |
| | — |
| | — |
| | 216.8 |
| Common collective trusts | | — |
| | 527.2 |
| | — |
| | 527.2 |
| Fixed income securities: | | | | | | | | | Corporate debt | | — |
| | 692.6 |
| | — |
| | 692.6 |
| Government securities | | 231.4 |
| | 147.2 |
| | — |
| | 378.6 |
| Common collective trusts | | — |
| | 129.4 |
| | — |
| | 129.4 |
| Other types of investments: | | | | | | | | | Private equity | | — |
| | — |
| | 78.8 |
| | 78.8 |
| Alternative equity | | — |
| | — |
| | 49.9 |
| | 49.9 |
| Insurance contracts | | — |
| | — |
| | 0.9 |
| | 0.9 |
| Non-U.S. Plans | | | | | | | | | Cash and cash equivalents | | 7.2 |
| | — |
| | — |
| | 7.2 |
| Equity securities: | | | | | | | | | Common stock | | 46.4 |
| | — |
| | — |
| | 46.4 |
| Common collective trusts | | — |
| | 286.0 |
| | — |
| | 286.0 |
| Fixed income securities: | | | | | | | | | Corporate debt | | — |
| | 31.0 |
| | — |
| | 31.0 |
| Government securities | | 3.3 |
| | 14.9 |
| | — |
| | 18.2 |
| Common collective trusts | | — |
| | 266.7 |
| | — |
| | 266.7 |
| Other types of investments: | | | | | | | | | Real estate funds | | — |
| | 80.3 |
| | 8.6 |
| | 88.9 |
| Insurance contracts | | — |
| | — |
| | 57.8 |
| | 57.8 |
| Other | | — |
| | 2.6 |
| | 3.3 |
| | 5.9 |
| Total plan investments | | $ | 1,213.8 |
| | $ | 2,177.9 |
| | $ | 199.3 |
| | $ | 3,591.0 |
|
|
Defined Benefit Plan Change in Fair Value of Plan Assets Level Three |
The table below sets forth a summary of changes in fair market value of our pension plans’ Level 3 assets for the year ended September 30, 2015: | | | | | | | | | | | | | | | | | | | | | | | | Balance October 1, 2014 | | Realized Gains (Losses) | | Unrealized Gains (Losses) | | Purchases, Sales, Issuances, and Settlements, Net | | Balance September 30, 2015 | U.S. Plans | | | | | | | | | | | Private equity | | $ | 78.8 |
| | $ | 7.2 |
| | $ | (11.0 | ) | | $ | (4.8 | ) | | $ | 70.2 |
| Alternative equity | | 49.9 |
| | 4.0 |
| | 1.7 |
| | (4.9 | ) | | 50.7 |
| Insurance contracts | | 0.9 |
| | — |
| | — |
| | — |
| | 0.9 |
| Non-U.S. Plans | | | | | | | | | | | Real estate | | 8.6 |
| | — |
| | 0.1 |
| | — |
| | 8.7 |
| Insurance contracts | | 57.8 |
| | — |
| | 11.3 |
| | (5.3 | ) | | 63.8 |
| Other | | 3.3 |
| | — |
| | 0.1 |
| | (0.3 | ) | | 3.1 |
| | | $ | 199.3 |
| | $ | 11.2 |
| | $ | 2.2 |
| | $ | (15.3 | ) | | $ | 197.4 |
|
The table below sets forth a summary of changes in fair market value of our pension plans’ Level 3 assets for the year ended September 30, 2014: | | | | | | | | | | | | | | | | | | | | | | | | Balance October 1, 2013 | | Realized Gains (Losses) | | Unrealized Gains (Losses) | | Purchases, Sales, Issuances, and Settlements, Net | | Balance September 30, 2014 | U.S. Plans | | | | | | | | | | | Private equity | | $ | 80.4 |
| | $ | 7.8 |
| | $ | (3.5 | ) | | $ | (5.9 | ) | | $ | 78.8 |
| Alternative equity | | 42.1 |
| | 1.3 |
| | 2.8 |
| | 3.7 |
| | 49.9 |
| Insurance contracts | | 0.8 |
| | — |
| | — |
| | 0.1 |
| | 0.9 |
| Non-U.S. Plans | | | | | | | | | | | Real estate | | 8.3 |
| | — |
| | 0.3 |
| | — |
| | 8.6 |
| Insurance contracts | | 45.5 |
| | — |
| | 14.1 |
| | (1.8 | ) | | 57.8 |
| Other | | 4.2 |
| | — |
| | — |
| | (0.9 | ) | | 3.3 |
| | | $ | 181.3 |
| | $ | 9.1 |
| | $ | 13.7 |
| | $ | (4.8 | ) | | $ | 199.3 |
|
|
Schedule of Expected Benefit Payments |
The following benefit payments, which include employees’ expected future service, as applicable, are expected to be paid (in millions): | | | | | | | | | | | | Pension Benefits | | Other Postretirement Benefits | 2016 | | $ | 234.9 |
| | $ | 11.7 |
| 2017 | | 227.7 |
| | 11.6 |
| 2018 | | 242.1 |
| | 11.1 |
| 2019 | | 253.7 |
| | 10.8 |
| 2020 | | 264.3 |
| | 7.2 |
| 2021 – 2025 | | 1,428.6 |
| | 27.6 |
|
|
Schedule of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates |
A one percentage point change in assumed health care cost trend rates would have the following effect (in millions): | | | | | | | | | | | | | | | | | | | | One Percentage Point Increase | | One Percentage Point Decrease | | | 2015 | | 2014 | | 2015 | | 2014 | Increase (decrease) to total of service and interest cost components | | $ | 0.2 |
| | $ | 0.2 |
| | $ | (0.2 | ) | | $ | (0.1 | ) | Increase (decrease) to postretirement benefit obligation | | 3.0 |
| | 3.0 |
| | (2.6 | ) | | (2.6 | ) |
|
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets |
Information regarding our pension plans with accumulated benefit obligations in excess of the fair value of plan assets (underfunded plans) at September 30, 2015 and 2014 are as follows (in millions): | | | | | | | | | | | | 2015 | | 2014 | Projected benefit obligation | | $ | 4,281.0 |
| | $ | 3,919.1 |
| Accumulated benefit obligation | | 3,978.3 |
| | 3,651.5 |
| Fair value of plan assets | | 3,261.2 |
| | 3,277.8 |
|
|