Employee Benefit Plans

9 Months Ended

Apr. 30, 2023

Retirement Benefits, Description [Abstract]

Employee Benefit Plans

Note 13. Employee Benefit Plans

The Company has defined benefit pension plans for certain hourly and salaried employees. They consist of plans in the U.S., Belgium, Germany, Mexico and the United Kingdom. These plans generally provide pension benefits based on years of service and compensation level. Components of net periodic pension costs other than the service cost component are included in other income, net in the Condensed Consolidated Statements of Earnings.

Net periodic pension costs for the Company’s pension plans were as follows (in millions):

	Three Months Ended April 30,				Nine Months Ended April 30,
	2023		2022		2023		2022
Service cost	$	1.6	$	1.8	$	4.8	$	5.4
Interest cost	4.2		2.4		12.6		7.4
Expected return on assets	(6.4)		(6.2)		(19.1)		(18.7)
Prior service cost amortization	0.1		0.1		0.2		0.2
Actuarial loss amortization	0.5		1.8		1.6		5.4
Settlement charge	3.3		1.1		3.3		2.3
Net periodic pension costs	$	3.3	$	1.0	$	3.4	$	2.0

In the third quarter of fiscal 2023, the Company recorded a pension settlement charge of $3.3 million as a result of lump sum distributions exceeding the service and interest cost components of the annual net periodic pension cost. The corresponding remeasurement resulted in a decrease in the Company’s pension assets and a corresponding adjustment to other comprehensive loss in the Condensed Consolidated Statements of Comprehensive Income of $4.4 million. See Note 11.

In the second and third quarters of fiscal 2022, the Company recorded pension settlement charges of $1.2 million and $1.1 million, respectively, as a result of lump sum distributions exceeding the service and interest cost components of the annual net periodic pension cost. The corresponding remeasurements resulted in a decrease in the Company’s pension assets and a corresponding adjustment to other comprehensive loss in the Condensed Consolidated Statements of Comprehensive Income of $1.7 million and $7.6 million in the second and third quarters of fiscal 2022, respectively. See Note 11.

The Company’s general funding policy is to make at least the minimum required contributions as required by applicable regulations, plus any additional amounts it determines to be appropriate. Future required pension plan contributions may change significantly depending on the actual rate of return on plan assets, discount rates and regulatory requirements.