Retirement Benefits
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Sep. 30, 2014
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits | Retirement Benefits The components of net periodic benefit cost are as follows (in millions):
During the first six months of fiscal 2015 and 2014, the Company made contributions of $5.0 million and $5.0 million, respectively, to its U.S. qualified pension plan trusts. In accordance with the Company's accounting policy for defined benefit pension and other postretirement benefit plans, actuarial gains and losses above a specified threshold are immediately recognized in the Company's operating results during the fourth quarter. This adjustment is typically recorded annually in connection with the Company's required year-end re-measurement of plan assets and benefit obligations, or upon any off-cycle re-measurement event. See Note 16 to the audited consolidated financial statements of the Company's fiscal 2014 Annual Report on Form 10-K for further information regarding retirement benefits. Lump Sum Settlement During the second quarter of fiscal 2015, the Company offered approximately 4,500 inactive participants in the domestic non-union defined benefit plans with vested benefits the opportunity to receive a lump sum settlement of the value of the participant’s pension benefit. Acceptance of the offer by a participant was completely voluntary, and if accepted, participants can elect to receive the settlement in the form of a single lump sum payment or in the form of a monthly annuity beginning during the third quarter of fiscal 2015. The election period for this voluntary offer closed on October 15, 2014 and, as a result of the settlement, the Company will perform an off-cycle re-measurement of the plan assets and benefit obligations of the domestic non-union defined benefit plans that will result in the immediate recognition of unrecognized non-cash actuarial gains/losses in our operating results during the third quarter of fiscal 2015. As of the date of this filing, the off-cycle re-measurement of the plan assets and benefit obligations has not been completed; however, the Company estimates a non-cash actuarial loss associated with the settlement of approximately $4 million to $8 million will be recognized in the operating results during the third quarter of fiscal 2015 . Other Recent Developments In October 2014, the Society of Actuaries issued revised mortality tables (RP 2014) and a mortality improvement scale (MP 2014) for use by actuaries, insurance companies, governments, benefit plan sponsors and others in setting assumptions regarding life expectancy in the United States for purposes of estimating pension and OPEB obligations, costs and required contribution amounts. The new mortality tables indicate substantial life expectancy improvements since the last study published in 2000 (RP 2000). The Company is currently evaluating the new tables and potential impacts to the March 31, 2015 valuation and future expected pension and OPEB plan contributions, which could be material to the Company's financial position and results from operations. |