Retirement Benefits

3 Months Ended

Dec. 31, 2019

RETIREMENT BENEFITS

The components of net periodic benefit cost for our defined benefit pension plans for the three months ended 31 December 2019 and 2018 were as follows:



	Pension Benefits
	2019						2018
Three Months Ended 31 December	U.S.			International			U.S.			International
Service cost		$5.8			$5.9			$5.4			$4.9
Interest cost	22.8			6.2			28.4			9.0
Expected return on plan assets	(47.2		)	(19.5		)	(43.1		)	(18.9		)
Prior service cost amortization	0.3			—			0.3			—
Actuarial loss amortization	21.0			4.9			16.1			2.8
Settlements	—			—			0.8			0.2
Special termination benefits	—			—			0.7			—
Other	—			0.2			—			0.3
Net Periodic (Benefit) Cost		$2.7			($2.3	)		$8.6			($1.7	)

Our service costs are primarily included within "Cost of sales" and "Selling and administrative" on our consolidated income statements. The amount of service costs capitalized in the first three months of fiscal years 2020 and 2019 were not material. The non-service related costs, including pension settlement losses, are presented outside operating income within "Other non-operating income (expense), net."

For the three months ended 31 December 2019 and 2018, our cash contributions to funded pension plans and benefit payments under unfunded pension plans were $8.3 and $19.5, respectively. Total contributions for fiscal year 2020 are expected to be approximately $30 to $40. During fiscal year 2019, total contributions were $40.2.

U.K. Lloyds Pensions Equalization Ruling

On 26 October 2018, the United Kingdom High Court issued a ruling related to the equalization of pension plan participants’ benefits for the gender effects of Guaranteed Minimum Pensions. As a result of this ruling, we estimated the impact of retroactively increasing benefits in our U.K. plan in accordance with the High Court ruling. We treated the additional benefits as a prior service cost, which resulted in an increase to our projected benefit obligation and accumulated other comprehensive loss of $4.7 during the first quarter of fiscal year 2019. We are amortizing this cost over the average remaining life expectancy of the U.K. participants.