Cooper's Retirement Income Plan (Plan), a defined benefit plan, covers substantially all full-time United States employees. Cooper's contributions are designed to fund normal cost on a current basis and to fund the estimated prior service cost of benefit improvements. The unit credit actuarial cost method is used to determine the annual cost. Cooper pays the entire cost of the Plan and funds such costs as they accrue. Virtually all of the assets of the Plan are comprised of equities and participation in equity and fixed income funds.

We use individual spot rates along the yield curve that correspond with the timing of each benefit payment to determine the service and interest costs of components of our net periodic benefit cost utilizing the correlation of projected cash outflows and corresponding spot rates on the yield curve.

The following table sets forth the Plan's benefit obligations and fair value of the Plan assets at October 31, 2019, 2018 and 2017 and the funded status of the Plan and net periodic pension costs for each of the years in the three-year periods ended October 31, 2019.



Years Ended October 31, (In millions)	2019			2018			2017
Change in benefit obligation
Benefit obligation, beginning of year	$	147.1		$	151.7		$	138.9
Service cost	10.1			10.7			10.2
Interest cost	6.1			5.0			4.4
Benefits paid	(10.2		)	(3.7		)	(2.6		)
Actuarial loss (gain)	36.6			(16.6		)	0.8
Benefit obligation, end of year	$	189.7		$	147.1		$	151.7
Change in plan assets
Fair value of plan assets, beginning of year	$	121.0		$	112.8		$	89.2
Actual return on plan assets	12.1			1.9			16.2
Employer contributions	13.1			10.0			10.0
Benefits paid	(10.2		)	(3.7		)	(2.6		)
Fair value of plan assets, end of year	$	136.0		$	121.0		$	112.8
Funded status at end of year	$	(53.7	)	$	(26.1	)	$	(38.9	)



Years Ended October 31, (In millions)	2019			2018			2017
Amounts recognized in the statement of financial position consist of:
Noncurrent liabilities	(53.7		)	(26.1		)	(38.9		)
Net amount recognized at year end	$	(53.7	)	$	(26.1	)	$	(38.9	)



Years Ended October 31, (In millions)	2019		2018		2017
Amounts recognized in accumulated other comprehensive income consist of:
Net loss	57.3		24.0		34.9
Accumulated other comprehensive income	$	57.3	$	24.0	$	34.9



Years Ended October 31, (In millions)	2019		2018		2017
Information for pension plans with projected benefit obligation in excess of plan assets
Projected benefit obligation	$	189.7	$	147.1	$	151.7
Fair value of plan assets	$	136.0	$	121.0	$	112.8



Years Ended October 31, (In millions)	2019		2018		2017
Information for pension plans with accumulated benefit obligations in excess of plan assets
Accumulated benefit obligation	$	170.8	$	130.5	$	133.3
Fair value of plan assets	$	136.0	$	121.0	$	112.8



Years Ended October 31, (In millions)	2019			2018			2017
Reconciliation of prepaid (accrued) pension cost
Accrued pension cost at prior fiscal year end	$	2.2		$	4.0		$	4.0
Net periodic benefit cost	7.2			8.2			10.0
Contributions made during the year	(13.1		)	(10.0		)	(10.0		)
Accrued pension cost at fiscal year end	$	(3.7	)	$	2.2		$	4.0



Years Ended October 31, (In millions)	2019			2018			2017
Components of net periodic benefit cost and other amounts recognized in (other comprehensive income) the fiscal year
Net periodic benefit cost:
Service cost	$	10.1		$	10.7		$	10.2
Interest cost	6.1			5.0			4.4
Expected return on plan assets	(9.8		)	(9.2		)	(7.3		)
Recognized actuarial loss	0.8			1.7			2.7
Net periodic pension cost	$	7.2		$	8.2		$	10.0



Years Ended October 31, (In millions)	2019			2018			2017
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net loss (gain)	34.2			(9.3		)	(8.1		)
Amortizations of net (gain)	(0.8		)	(1.7		)	(2.7		)
Total recognized in other comprehensive income	$	33.4		$	(11.0	)	$	(10.8	)
Total recognized in net periodic benefit cost and other comprehensive income	$	40.6		$	(2.8	)	$	(0.8	)



Years Ended October 31,	2019		2018		2017
Weighted-average assumptions used in computing the net periodic pension cost and projected benefit obligation at year end:
Discount rate for determining net periodic pension cost:
Projected Benefit Obligation	4.42	%	3.75	%	3.74	%
Service Cost	4.49	%	3.85	%	3.90	%
Interest Cost	4.22	%	3.39	%	3.23	%
Discount rate for determining benefit obligations at year end	3.13	%	4.42	%	3.75	%
Rate of compensation increase for determining expense	4.00	%	4.00	%	4.00	%
Rate of compensation increase for determining benefit obligations at year end	3.60	%	4.00	%	4.00	%
Expected rate of return on plan assets for determining net periodic pension cost	8.00	%	8.00	%	8.00	%
Expected rate of return on plan assets at year end	8.00	%	8.00	%	8.00	%
Measurement date for determining assets and benefit obligations at year end	10/31/2019		10/31/2018		10/31/2017

The discount rate enables us to state expected future cash flows at a present value on the measurement date. The discount rate used for the Plan is based primarily on the yields of a universe of high quality corporate bonds rated AA or above, with durations corresponding to the expected durations of the benefit obligations. A change in the discount rate will cause the present value of benefit obligations to change in the opposite direction. If a discount rate of 4.42%, which is 0.67% more than prior fiscal year, had been used, the projected benefit obligation would have been $158.5 million, and the accumulated benefit obligation would have been $143.7 million.

The expected rate of return on plan assets was determined based on a review of historical returns, both for this plan and for medium- to large-sized defined benefit pension funds with similar asset allocations. This review generated separate expected returns for each asset class listed below. These expected future returns were then blended based on this Plan's target asset allocation.

The projected benefit obligation experienced a net loss of approximately $36.6 million during the year. This loss is the result of assumption changes resulting in a loss of approximately $33.8 million, plus losses of approximately $2.6 million due to demographic experience. The key assumption changes were the decrease in the discount rate (loss of $43.5 million), and a change to the mortality table (gain of $0.4 million), changes to termination rates (gain of $3.9 million), changes to salary increase rates (gain of $1.7 million), addition of assumptions to reflect expected lump sum payments (loss of $0.3 million), and a change in the discount rate methodology (gain of $4.0 million). The primary reasons for demographic losses were salary increases higher than expected, an increase in the number of participants, and the net impact of other demographic changes.



Years Ended October 31,	2019		2018		2017
Asset category
Cash and cash equivalents	3.2	%	2.1	%	0.9	%
Corporate common stock	—	%	14.5	%	12.2	%
Equity mutual funds	63.7	%	47.4	%	49.9	%
Hedging Strategy Funds	4.9	%	—	%	—	%
Real estate funds	—	%	2.7	%	2.9	%
Bond mutual funds	28.2	%	33.3	%	34.1	%
Total	100.0	%	100.0	%	100.0	%

The Plan invests in a diversified portfolio of assets intended to minimize risk of poor returns while maximizing expected portfolio returns. To achieve the long-term rate of return, plan assets will be invested in a mixture of instruments, including but not limited to, corporate common stock (may include the Company's stock), investment grade bond funds, cash, balanced funds, real estate funds, small or large cap equity funds and international equity funds. The allocation of assets will be determined by the investment manager and will typically include 50% to 70% equities with the remainder invested in fixed income, real estate, alternatives and cash. Presently, this diversified portfolio is expected to return roughly 8% in the long run.



(In millions)	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Asset category
Cash and cash equivalents	$	4.4	$	4.4	$	—	$	—
Equity mutual funds	86.5		86.5		—		—
Hedging Strategy Funds	6.7		6.7		—		—
Bond mutual funds	38.4		15.3		23.1		—
Total	$	136.0	$	112.9	$	23.1	$	—

The Plan has an established process for determining the fair value of plan assets. Fair value is based upon quoted market prices, as Level 1 inputs, where available. For our investments in equity and bond mutual funds, and real estate funds, fair value is based on observable, Level 1 inputs, as price quotes are available and the fair values of these funds were not impacted by liquidity restrictions or the fund status. Level 2 assets are those where price quotes are not readily available and the fair value would be determined based on other observable inputs. Level 3 assets are those where price quotes are not readily available and the fair value would be determined based on unobservable inputs.

While we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

The Company contributions to the Plan were $13.1 million for fiscal 2019 and, $10.0 million for each of fiscal 2018 and 2017. We closely monitor the funded status of the Plan with respect to legislative and accounting rules. We expect to make contributions of about $10.0 million during fiscal 2020.

On June 18, 2019 the Board of Directors of the Company approved a soft freeze of the Plan effective August 1, 2019. The Plan was closed to employees hired on or after August 1, 2019, including former participants or employees rehired on or after August 1, 2019 and employees hired in connection with a stock or asset acquisition, merger or other similar transaction on or after August 1, 2019. Existing employees already covered by the Plan, continue to accrue their benefits. There was no material impact on the Company's results of operations, financial position and cash flows for fiscal 2019.

Cooper's 401(k) savings plan provides for the deferral of compensation as described in the Internal Revenue Code and is available to substantially all United States employees. Employees who participate in the 401(k) plan may elect to have up to 75% of their pre-tax salary or wages deferred and contributed to the trust established under the Plan. Cooper's contributions on account of participating employees, were $6.5 million, $5.9 million and $5.2 million for the years ended October 31, 2019, 2018 and 2017, respectively.

For our employees outside the United States, we also participate in country-specific defined contribution plans and government-sponsored retirement plans. The defined contribution plans are administered by third-party trustees and we are not directly responsible for providing benefits to participants of government-sponsored plans. The Company’s contributions to such plans are not significant individually or in the aggregate.