XML 65 R46.htm IDEA: XBRL DOCUMENT

Retirement Benefits (Tables)

12 Months Ended

Sep. 30, 2020

Schedule of Net Periodic Benefit Cost (Income)

The components of net periodic benefit cost (income) are (in millions):



	Pension Benefits									Other Postretirement Benefits
	2020			2019			2018			2020			2019			2018
Service cost	$	91.1		$	78.2		$	88.9		$	1.0		$	0.9		$	1.3
Interest cost	136.4			158.3			155.3			1.6			2.3			2.4
Expected return on plan assets	(244.8		)	(244.7		)	(244.8		)	—			—			—
Amortization:
Prior service cost (credit)	0.9			1.2			0.6			(5.4		)	(5.4		)	(5.5		)
Net actuarial loss	147.3			77.8			113.4			1.4			0.9			1.7
Settlements	—			1.2			0.7			—			—			—
Net periodic benefit cost (income)	$	130.9		$	72.0		$	114.1		$	(1.4	)	$	(1.3	)	$	(0.1	)

Schedule of Assumptions Used

Significant assumptions used in determining net periodic benefit cost (income) are (in weighted averages):



	Pension Benefits						Other Postretirement Benefits
	2020		2019		2018		2020		2019		2018
U.S. Plans
Discount rate	3.30	%	4.35	%	3.90	%	2.90	%	4.15	%	3.40	%
Expected return on plan assets	7.50	%	7.50	%	7.50	%	—		—		—
Compensation increase rate	3.40	%	3.50	%	3.50	%	—		—		—
Non-U.S. Plans
Discount rate	1.60	%	2.48	%	2.30	%	2.65	%	3.30	%	3.20	%
Expected return on plan assets	5.11	%	5.22	%	5.19	%	—		—		—
Compensation increase rate	3.06	%	3.02	%	2.99	%	—		—		—

Significant assumptions used in determining the benefit obligations are (in weighted averages):



	Pension Benefits				Other Postretirement Benefits
	2020		2019		2020		2019
U.S. Plans
Discount rate	2.90	%	3.30	%	2.15	%	2.90	%
Compensation increase rate	3.40	%	3.40	%	—		—
Health care cost trend rate⁽¹⁾	—		—		6.25	%	6.50	%
Non-U.S. Plans
Discount rate	1.56	%	1.60	%	2.20	%	2.65	%
Compensation increase rate	2.90	%	3.06	%	—		—
Health care cost trend rate⁽¹⁾	—		—		4.50	%	4.50	%

⁽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 5.00% in 2022 for U.S. Plans and will not change in 2021 for Non-U.S. Plans.

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
	2020			2019			2020			2019
Benefit obligation at beginning of year	$	4,907.3		$	4,259.5		$	60.7		$	62.4
Service cost	91.1			78.2			1.0			0.9
Interest cost	136.4			158.3			1.6			2.3
Actuarial losses (gains)	154.1			720.4			(1.4		)	4.7
Acquisitions	(0.6		)	—			—			—
Plan amendments	—			(4.9		)	—			—
Plan participant contributions	3.1			3.4			3.0			3.4
Benefits paid	(285.0		)	(263.1		)	(7.8		)	(12.8		)
Settlements	(10.5		)	(6.2		)	—			—
Currency translation and other	31.0			(38.3		)	(0.1		)	(0.2		)
Benefit obligation at end of year	5,026.9			4,907.3			57.0			60.7
Plan assets at beginning of year	3,753.1			3,754.8			—			—
Actual return on plan assets	266.0			263.6			—			—
Company contributions	84.1			30.9			4.8			9.4
Plan participant contributions	3.1			3.4			3.0			3.4
Benefits paid	(285.0		)	(263.1		)	(7.8		)	(12.8		)
Settlements	(10.5		)	(6.2		)	—			—
Currency translation and other	27.2			(30.3		)	—			—
Plan assets at end of year	3,838.0			3,753.1			—			—
Funded status of plans	$	(1,188.9	)	$	(1,154.2	)	$	(57.0	)	$	(60.7	)

Schedule of Amounts Recognized in Balance Sheet



Net amount on balance sheet consists of:
Other assets	$	27.9		$	6.5		$	—		$	—
Compensation and benefits	(13.9		)	(12.7		)	(5.8		)	(7.3		)
Retirement benefits	(1,202.9		)	(1,148.0		)	(51.2		)	(53.4		)
Net amount on balance sheet	$	(1,188.9	)	$	(1,154.2	)	$	(57.0	)	$	(60.7	)

Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss)

Amounts included in accumulated other comprehensive loss, net of tax, which have not yet been recognized in net periodic benefit cost are as follows (in millions):



	Pension Benefits				Other Postretirement Benefits
	2020		2019		2020		2019
Prior service cost (credit)	$	3.3	$	2.7	$	—	$	(4.1	)
Net actuarial loss	1,262.1		1,127.7		5.8		7.4
Total	$	1,265.4	$	1,130.4	$	5.8	$	3.3

Schedule of Accumulated and Projected Benefit Obligations

Information regarding our pension plans with projected benefit obligations in excess of the fair value of plan assets (underfunded plans) are as follows (in millions):



	2020		2019
Projected benefit obligation	$	4,482.0	$	4,607.4
Fair value of plan assets	3,265.2		3,446.7

Information regarding our pension plans with accumulated benefit obligations in excess of the fair value of plan assets (underfunded plans) are as follows (in millions):



	2020		2019
Accumulated benefit obligation	$	4,113.4	$	4,019.7
Fair value of plan assets	3,265.2		3,205.2

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
2021	$	335.2	$	5.8
2022	324.6		5.7
2023	301.1		5.4
2024	302.3		5.1
2025	302.3		4.7
2026-2030	1,468.0		18.9

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	2020	2019
Equity securities	40%	–	65%	54%	50%	49%
Debt securities	30%	–	50%	38%	43%	44%
Other	0%	–	15%	7%	7%	7%

Schedule of Allocation of Plan Assets

The following table presents our pension plans’ investments measured at fair value as of September 30, 2020:



	Level 1		Level 2		Level 3		Total
U.S. Plans
Cash and cash equivalents	$	1.4	$	—	$	—	$	1.4
Equity securities:
Mutual funds	112.4		—		—		112.4
Common stock	947.7		—		—		947.7
Common collective trusts	—		467.4		—		467.4
Fixed income securities:
Corporate debt	—		699.3		—		699.3
Government securities	244.7		133.1		—		377.8
Common collective trusts	—		169.0		—		169.0
Other types of investments:
Insurance contracts	—		—		0.9		0.9
Total U.S. Plans investments in fair value hierarchy	$	1,306.2	$	1,468.8	$	0.9	2,775.9
U.S. Plans investments measured at NAV:
Private equity							23.5
Alternative equity							18.4
Total U.S. Plans investments							2,817.8
Non-U.S. Plans
Cash and cash equivalents	$	1.9	$	—	$	—	1.9
Equity securities:
Common stock	62.4		—		—		62.4
Common collective trusts	—		329.3		—		329.3
Fixed income securities:
Corporate debt	—		65.6		—		65.6
Government securities	1.1		—		—		1.1
Common collective trusts	—		350.9		—		350.9
Other types of investments:
Real estate funds	—		78.9		—		78.9
Insurance contracts	—		—		110.2		110.2
Other	—		—		4.6		4.6
Total Non-U.S. Plans investments in fair value hierarchy	$	65.4	$	824.7	$	114.8	1,004.9
Non-U.S. Plans investments measured at NAV:
Real estate funds							15.3
Total Non-U.S. Plans investments							1,020.2
Total investments measured at fair value							$	3,838.0

The following table presents our pension plans’ investments measured at fair value as of September 30, 2019:



	Level 1		Level 2		Level 3		Total
U.S. Plans
Cash and cash equivalents	$	2.6	$	—	$	—	$	2.6
Equity securities:
Mutual funds	129.7		—		—		129.7
Common stock	919.7		—		—		919.7
Common collective trusts	—		419.0		—		419.0
Fixed income securities:
Corporate debt	—		698.7		—		698.7
Government securities	285.1		130.0		—		415.1
Common collective trusts	—		138.4		—		138.4
Other types of investments:
Insurance contracts	—		—		0.9		0.9
Total U.S. Plans investments in fair value hierarchy	$	1,337.1	$	1,386.1	$	0.9	2,724.1
U.S. Plans investments measured at NAV:
Private equity							31.6
Alternative equity							25.6
Total U.S. Plans investments							2,781.3
Non-U.S. Plans
Cash and cash equivalents	$	16.6	$	—	$	—	16.6
Equity securities:
Common stock	63.4		—		—		63.4
Common collective trusts	—		304.5		—		304.5
Fixed income securities:
Corporate debt	—		61.2		—		61.2
Government securities	1.3		—		—		1.3
Common collective trusts	—		329.7		—		329.7
Other types of investments:
Real estate funds	—		85.1		—		85.1
Insurance contracts	—		—		95.4		95.4
Other	—		—		4.5		4.5
Total Non-U.S. Plans investments in fair value hierarchy	$	81.3	$	780.5	$	99.9	961.7
Non-U.S. Plans investments measured at NAV:
Real estate funds							10.1
Total Non-U.S. Plans investments							971.8
Total investments measured at fair value							$	3,753.1

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, 2020:



	Balance October 1, 2019		Realized Gains (Losses)		Unrealized Gains (Losses)		Purchases, Sales, Issuances, and Settlements, Net		Balance September 30, 2020
U.S. Plans
Insurance contracts	$	0.9	$	—	$	—	$	—	$	0.9
Non-U.S. Plans
Insurance contracts	95.4		—		13.0		1.8		110.2
Other	4.5		—		0.1		—		4.6
	$	100.8	$	—	$	13.1	$	1.8	$	115.7

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, 2019:



	Balance October 1, 2018		Realized Gains (Losses)		Unrealized Gains (Losses)			Purchases, Sales, Issuances, and Settlements, Net		Balance September 30, 2019
U.S. Plans
Insurance contracts	$	0.9	$	—	$	—		$	—	$	0.9
Non-U.S. Plans
Insurance contracts	79.1		—		14.3			2.0		95.4
Other	4.6		—		(0.1		)	—		4.5
	$	84.6	$	—	$	14.2		$	2.0	$	100.8