Employee Retirement Plans

12 Months Ended

Oct. 31, 2022

Retirement Benefits [Abstract]

Employee Retirement Plans

15 Employee Retirement Plans

Defined Contribution Plan

The company maintains The Toro Company Retirement Plan for eligible employees. The company's expenses under this plan, which include costs related to matching contributions and discretionary retirement fund contributions, as applicable, were $35.3 million, $28.5 million, and $17.4 million for the fiscal years ended October 31, 2022, 2021, and 2020, respectively. The lower expense for the fiscal year ended October 31, 2020, as compared to the fiscal years ended October 31, 2022 and October 31, 2021, was primarily the result of the company's suspension of discretionary retirement fund contributions for fiscal 2020 as a proactive cost reduction measure to mitigate the anticipated adverse impacts of COVID-19. Discretionary retirement fund contributions were resumed for the fiscal years ended October 31, 2022 and October 31, 2021.

Defined Benefit Plans

The company has a defined benefit pension plan covering certain employees in the United Kingdom ("defined benefit retirement plan"). The company was also previously a sponsor to another defined benefit pension plan for certain employees in the U.S. (collectively with the defined benefit retirement plan, the "defined benefit retirement plans"). This defined benefit pension plan for certain employees in the U.S. was terminated as of October 31, 2020 and all accumulated benefit obligations of the company related to such plan have been satisfied. The projected and accumulated benefit obligation of the defined benefit retirement plan was $18.9 million and $35.1 million as of October 31, 2022 and 2021, respectively. The fair value of the defined benefit retirement plan assets as of October 31, 2022 and 2021 was $18.4 million and $33.0 million, respectively. The net funded status of the defined benefit retirement plan as of October 31, 2022 and 2021 was underfunded at $0.6 million and $2.1 million, respectively.

Service costs of the defined benefit retirement plans are presented in selling, general and administrative expense within the Consolidated Statements of Earnings. Non-service cost components of net periodic benefit cost (income), including realized gains or losses as a result of changes in actuarial valuation assumptions, are presented in other income, net within the Consolidated Statements of Earnings. The company recognized income of $0.2 million, $0.1 million, and $0.2 million for the fiscal years ended October 31, 2022, 2021, and 2020, respectively.

The company has omitted the remaining disclosures for the defined benefit retirement plans as the company deems these defined benefit retirement plans to be immaterial to its Consolidated Financial Statements.