Employee Benefit Plans

9 Months Ended

Jun. 30, 2013

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Employee Benefit Plans

Employee Benefit Plans

Defined Benefit Plans - Oshkosh and certain of its subsidiaries sponsor multiple defined benefit pension plans covering certain Oshkosh and Pierce Manufacturing Inc. ("Pierce") employees. The benefits provided are based primarily on average compensation, years of service and date of birth. Hourly plans are generally based on years of service and a benefit dollar multiplier. The Company periodically amends the plans, including changing the benefit dollar multipliers and other revisions. In September 2012, the Company amended its Oshkosh and Pierce defined benefit plans, freezing benefit accruals for Oshkosh and Pierce salaried employees effective December 31, 2012. The amendment provided that salaried participants in the Oshkosh and Pierce pension plans would not receive credit, other than for vesting purposes, for eligible earnings paid for any month of service worked after the effective date. All accrued benefits under the plans as of the effective date remained intact, and service credits for vesting and retirement eligibility continued in accordance with the terms of the plans. As a result of the formal decision to freeze the plans' benefit accruals, net periodic benefit costs decreased significantly in fiscal 2013. The employee pension benefit is expected to be offset by additional employer contributions to the Company's defined contribution plan which began in January 2013.

SERPs - The Company maintains defined benefit SERPs for certain executive officers of the Company and its subsidiaries. Benefits are based upon the employees' earnings. The Oshkosh SERP was amended to freeze benefits under the plan effective December 31, 2012. The Company has established a rabbi trust (the "Trust") to fund obligations under the Oshkosh SERP. The Trust is invested in money market and mutual funds. As of June 30, 2013, the Trust held assets of $19.4 million. The Trust assets are subject to the claims of the Company's creditors. The Trust assets are included in "Other long-term assets" in the accompanying Condensed Consolidated Balance Sheets.

Postretirement Medical Plans - Oshkosh and certain of its subsidiaries sponsor multiple postretirement benefit plans covering Oshkosh, JLG Industries, Inc. and Kewaunee Fabrications, LLC hourly and salaried active employees, retirees and their spouses. The plans generally provide health benefits based on years of service and date of birth. These plans are unfunded. In September 2012, the Oshkosh plan was amended to eliminate postretirement benefits coverage for salaried employees retiring at age 55 or older effective December 31, 2012, except for existing eligible employees who are at least age 55 with at least five years of service by December 31, 2012 who elect to retire on or before December 31, 2013.

Components of net periodic pension benefit cost were as follows (in millions):

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Components of net periodic benefit cost
Service cost	$	3.7		$	5.6		$	11.3		$	16.7
Interest cost	3.9			4.0			11.9			12.2
Expected return on plan assets	(4.1		)	(3.9		)	(12.4		)	(11.7		)
Amortization of prior service cost	0.4			0.5			1.3			1.7
Curtailment	—			—			2.8			—
Amortization of net actuarial loss	1.1			1.9			3.3			5.5
Net periodic benefit cost	$	5.0		$	8.1		$	18.2		$	24.4

In connection with staffing reductions in the defense segment as a result of declining sales to the U.S. Department of Defense ("DoD"), pension curtailment charges of $2.8 million were recorded for the nine months ended June 30, 2013. The Company expects to contribute between $10.0 million and $15.0 million to its pension plans in fiscal 2013 compared to $35.8 million in fiscal 2012.

Components of net periodic other post-employment benefit cost were as follows (in millions):

	Three Months Ended					Nine Months Ended
	June 30,					June 30,
	2013			2012		2013			2012
Components of net periodic benefit cost
Service cost	$	1.6		$	1.8	$	5.4		$	5.4
Interest cost	0.8			0.9		2.4			2.6
Amortization of prior service cost	(0.1		)	—		(0.3		)	—
Curtailment	(1.9		)	—		(2.9		)	—
Amortization of net actuarial loss	0.2			0.3		0.8			0.9
Net periodic benefit cost	$	0.6		$	3.0	$	5.4		$	8.9

In connection with staffing reductions in the defense segment, other post-employment curtailment benefits of $1.9 million and $2.9 million were recorded for the three and nine months ended June 30, 2013. The Company made contributions to fund benefit payments of $1.3 million and $1.0 million for the nine months ended June 30, 2013 and 2012, respectively, under its other post-employment benefit plans. The Company estimates that it will make additional contributions of approximately $0.4 million under these other post-employment benefit plans prior to the end of fiscal 2013.

401(k) Plans - The Company has defined contribution 401(k) plans covering substantially all domestic employees. Amounts expensed for Company matching and discretionary contributions were $7.3 million and $4.7 million for the three months ended June 30, 2013 and 2012, respectively. Amounts expensed for Company matching and discretionary contributions were $20.7 million and $14.2 million for the nine months ended June 30, 2013 and 2012, respectively. The increase in defined contribution costs during fiscal 2013 was generally a result of additional Company contributions beginning in January 2013 to offset benefit reductions associated with the curtailment of benefits under the defined benefit pension plan.