Retirement Benefit Plans (Tables)

12 Months Ended

Sep. 30, 2018

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,
	2018			2017
Service cost	$	262		$	324
Interest cost	963			883
Expected return on plan assets	(1,608		)	(1,615		)
Amortization of net loss	641			861
Net pension expense for defined benefit plan	$	258		$	453

Roll Forward of Defined Benefit Pension Plan Obligations and Assets

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



	2018			2017
Benefit obligations:
Benefit obligations at beginning of year	$	27,921		$	29,731
Service cost	262			324
Interest cost	963			883
Actuarial (loss) gain	178			(1,292		)
Benefits paid	(1,880		)	(1,740		)
Currency translation	(7		)	15
Benefit obligations at end of year	$	27,437		$	27,921
Plan assets:
Plan assets at beginning of year	$	21,691		$	21,344
Actual return on plan assets	2,118			1,978
Employer contributions	123			109
Benefits paid	(1,880		)	(1,740		)
Plan assets at end of year	$	22,052		$	21,691

Net Plan Assets Recognized in the Consolidated Balance Sheets



	Plans in which Benefit Obligations Exceed Assets at September 30,
	2018			2017
Reconciliation of funded status:
Plan assets less than projected benefit obligations	$	(5,385	)	$	(6,230	)
Amounts recognized in accumulated other comprehensive loss:
Net loss	7,432			8,406
Net amount recognized in the consolidated balance sheets	$	2,047		$	2,176
Amounts recognized in the consolidated balance sheets are:
Accrued liabilities	(46		)	(46		)
Pension liability	(5,339		)	(6,184		)
Accumulated other comprehensive loss – pretax	7,432			8,406
Net amount recognized in the consolidated balance sheets	$	2,047		$	2,176

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 2019 are as follows:



	Plans in which Assets Exceed Benefit Obligations		Plans in which Benefit Obligations Exceed Assets
Net loss	$	—	$	426

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,
	2018		2017
Discount rate for liabilities	4.1	%	3.6	%
Discount rate for expenses	3.6	%	3.1	%
Expected return on assets	7.7	%	7.9	%

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, 2018 and 2017:



September 30, 2018	Asset Amount		Level 2		Level 3
U.S. equity securities:
Large value	$	446	$	446	$	—
Large blend	9,910		9,910		—
Large growth	825		825		—
Mid blend	228		228		—
Small blend	229		229		—
Non-U.S. equity securities:
Foreign large blend	1,714		1,714		—
Diversified emerging markets	18		18		—
U.S. debt securities:
Inflation protected bond	1,184		1,184		—
Intermediate term bond	6,811		4,996		1,815
High inflation bond	182		182		—
Non-U.S. debt securities:
Emerging markets bonds	38		38		—
Stable value:
Short-term bonds	467		467		—
Total plan assets at fair value	$	22,052	$	20,237	$	1,815



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

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
	2018		2017		Asset Allocation Range
U.S. equities	53	%	51	%	30% to 70%
Non-U.S. equities	8	%	8	%	0% to 20%
U.S. debt securities	37	%	39	%	20% to 70%
Non-U.S. debt securities	—	%	1	%	0% to 10%
Other securities	2	%	1	%	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, 2018 and 2017 were as follows:



	2018			2017
Balance at beginning of year	$	2,175		$	2,185
Actual return on plan assets	1			26
Purchases and sales of plan assets, net	(361		)	(36		)
Balance at end of year	$	1,815		$	2,175

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
2019	$	1,986
2020	1,969
2021	1,968
2022	1,827
2023	1,911
2024-2028	9,199

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

2018

2017

2018

2017

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.