Retirement Benefit Plans (Tables)

12 Months Ended

Sep. 30, 2017

Net Pension Expense for Defined Benefit Plans

Net pension expense, benefit obligations and plan assets for the Company-sponsored defined benefit pension plans consists of the following:



	Years Ended September 30,
	2017			2016
Service cost	$	324		$	280
Interest cost	883			1,017
Expected return on plan assets	(1,615		)	(1,632		)
Amortization of net loss	861			828
Settlement cost	—			223
Net pension expense for defined benefit plan	$	453		$	716

Roll Forward of Defined Benefit Pension Plan Obligations and Assets

The status of all defined benefit pension plans at September 30 is as follows:



	2017			2016
Benefit obligations:
Benefit obligations at beginning of year	$	29,731		$	27,685
Service cost	324			280
Interest cost	883			1,017
Actuarial (loss) gain	(1,292		)	2,405
Benefits paid	(1,740		)	(1,659		)
Currency translation	15			3
Benefit obligations at end of year	$	27,921		$	29,731
Plan assets:
Plan assets at beginning of year	$	21,344		$	20,896
Actual return on plan assets	1,978			2,061
Employer contributions	109			46
Benefits paid	(1,740		)	(1,659		)
Plan assets at end of year	$	21,691		$	21,344

Net Plan Assets Recognized in the Consolidated Balance Sheets



	Plans in which Benefit Obligations Exceed Assets at September 30,
	2017			2016
Reconciliation of funded status:
Plan assets less than projected benefit obligations	$	(6,230	)	$	(8,387	)
Amounts recognized in accumulated other comprehensive loss:
Net loss	8,406			10,926
Net amount recognized in the consolidated balance sheets	$	2,176		$	2,539
Amounts recognized in the consolidated balance sheets are:
Accrued liabilities	(46		)	(46		)
Pension liability	(6,184		)	(8,341		)
Accumulated other comprehensive loss – pretax	8,406			10,926
Net amount recognized in the consolidated balance sheets	$	2,176		$	2,539

Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized as Components of Net Periodic Benefit Costs

The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit costs during fiscal 2018 are as follows:



	Plans in which Assets Exceed Benefit Obligations		Plans in which Benefit Obligations Exceed Assets
Net loss	$	—	$	669

Weighted-Average Assumptions Used in Developing Benefit Obligation and Net Pension Expense

Where applicable, the following weighted-average assumptions were used in developing the benefit obligation and the net pension expense for defined benefit pension plans:



	Years Ended September 30,
	2017		2016
Discount rate for liabilities	3.6	%	3.1	%
Discount rate for expenses	3.1	%	3.8	%
Expected return on assets	7.9	%	8.0	%

Fair Values and Asset Allocation Ranges of Defined Benefit Plan Investments

The following tables set forth the asset allocation of the Company’s defined benefit pension plan assets and summarize the fair values and levels within the fair value hierarchy for such plan assets as of September 30, 2017 and 2016:



September 30, 2017	Asset Amount		Level 2		Level 3
U.S. equity securities:
Large value	$	681	$	681	$	—
Large blend	9,788		9,788		—
Large growth	470		470		—
Mid blend	79		79		—
Small blend	111		111		—
Non-U.S. equity securities:
Foreign large blend	1,731		1,731		—
Diversified emerging markets	19		19		—
U.S. debt securities:
Inflation protected bond	1,089		1,089		—
Intermediate term bond	7,240		5,065		2,175
High inflation bond	187		187		—
Non-U.S. debt securities:
Emerging markets bonds	77		77		—
Stable value:
Short-term bonds	219		219		—
Total plan assets at fair value	$	21,691	$	19,516	$	2,175



September 30, 2016	Asset Amount		Level 2		Level 3
U.S. equity securities:
Large value	$	492	$	492	$	—
Large blend	9,593		9,593		—
Large growth	503		503		—
Mid blend	57		57		—
Small blend	56		56		—
Non-U.S. equity securities:
Foreign large blend	1,565		1,565		—
Diversified emerging markets	18		18		—
U.S. debt securities:
Inflation protected bond	537		537		—
Intermediate term bond	7,747		5,562		2,185
High inflation bond	360		360		—
Non-U.S. debt securities:
Emerging markets bonds	66		66		—
Stable value:
Short-term bonds	350		350		—
Total plan assets at fair value	$	21,344	$	19,159	$	2,185

The “Asset Allocation Range” listed below anticipates these potential scenarios and provides flexibility for the Plan’s investments to vary around the objective without triggering a reallocation of the assets, as noted by the following:



	Percent of Plan Assets at September 30,				Asset Allocation Range
	2017		2016		Asset Allocation Range
U.S. equities	51	%	50	%	30% to 70%
Non-U.S. equities	8	%	7	%	0% to 20%
U.S. debt securities	39	%	41	%	20% to 70%
Non-U.S. debt securities	1	%	—	%	0% to 10%
Other securities	1	%	2	%	0% to 60%
Total	100	%	100	%

Changes in the Fair Value of Level 3 Defined Benefit Plan Investments

Changes in the fair value of the Company’s Level 3 investments during the years ending September 30, 2017 and 2016 were as follows:



	2017			2016
Balance at beginning of year	$	2,185		$	2,045
Actual return on plan assets	26			126
Purchases and sales of plan assets, net	(36		)	14
Balance at end of year	$	2,175		$	2,185

Schedule of Projected Future Defined Benefit Plan Payments

The following defined benefit payment amounts are expected to be made in the future:



Years Ending September 30,	Projected Benefit Payments
2018	$	1,897
2019	1,723
2020	1,901
2021	1,920
2022	1,740
2023-2027	8,986

Schedule of Contributions in U.S. Multi-Employer Retirement Plan for Certain Union Employees

The Company contributes to one (1) U.S. multi-employer retirement plan for certain union employees, as follow:

Pension

Fund

Pension Protection Act Zone Status

FIP/RP Status

Pending/

Implemented

Contributions by the Company

Surcharge

Imposed

Expiration of

Collective

Bargaining

Agreement

2017

2016

2017

2016

Fund ¹

Green

5/31/2020

¹ The fund is the IAM National Pension Fund – EIN 51-6031295 / Plan number 2. The IAM National Pension Fund utilized the special 30-year amortization provided by Public law 111-192, section 211 to amortize its losses from 2008.