Retirement Benefit Plans (Tables)

12 Months Ended

Sep. 30, 2019

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,
	2019			2018
Service cost	$	299		$	262
Interest cost	1,055			963
Expected return on plan assets	(1,573		)	(1,608		)
Amortization of net loss	429			641
Settlement cost	246			—
Net pension expense for defined benefit plans	$	456		$	258

Roll Forward of Defined Benefit Pension Plan Obligations and Assets

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



	2019			2018
Benefit obligations:
Benefit obligations at beginning of year	$	27,437		$	27,921
Service cost	299			262
Interest cost	1,055			963
Actuarial loss (gain)	3,691			178
Benefits paid	(1,914		)	(1,880		)
Currency translation	(20		)	(7		)
Benefit obligations at end of year	$	30,548		$	27,437
Plan assets:
Plan assets at beginning of year	$	22,052		$	21,691
Actual return on plan assets	622			2,118
Employer contributions	210			123
Benefits paid	(1,914		)	(1,880		)
Plan assets at end of year	$	20,970		$	22,052

Net Plan Assets Recognized in the Consolidated Balance Sheets



	Plans in which Benefit Obligations Exceed Assets at September 30,
	2019			2018
Reconciliation of funded status:
Plan assets less than projected benefit obligations	$	(9,574	)	$	(5,385	)
Amounts recognized in accumulated other comprehensive loss:
Net loss	11,404			7,432
Net amount recognized in the consolidated balance sheets	$	1,830		$	2,047
Amounts recognized in the consolidated balance sheets are:
Accrued liabilities	(46		)	(46		)
Pension liability	(9,528		)	(5,339		)
Accumulated other comprehensive loss – pretax	11,404			7,432
Net amount recognized in the consolidated balance sheets	$	1,830		$	2,047

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	$	—	$	755

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,
	2019		2018
Discount rate for liabilities	2.9	%	4.1	%
Discount rate for expenses	4.2	%	3.6	%
Expected return on assets	7.5	%	7.7	%

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, 2019 and 2018:



September 30, 2019	Asset Amount		Level 2		Level 3
U.S. equity securities:
Large value	$	435	$	435	$	—
Large blend	9,368		9,368		—
Large growth	625		625		—
Mid blend	163		163		—
Small blend	159		159		—
Non-U.S. equity securities:
Foreign large blend	1,607		1,607		—
Diversified emerging markets	17		17		—
U.S. debt securities:
Inflation protected bond	1,100		1,100		—
Intermediate term bond	6,974		4,969		2,005
High inflation bond	173		173		—
Non-U.S. debt securities:
Emerging markets bonds	106		106		—
Stable value:
Short-term bonds	243		243		—
Total plan assets at fair value	$	20,970	$	18,965	$	2,005



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

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
	2019		2018		Asset Allocation Range
U.S. equities	51	%	53	%	30% to 70%
Non-U.S. equities	8	%	8	%	0% to 20%
U.S. debt securities	39	%	37	%	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, 2019 and 2018 were as follows:



	2019		2018
Balance at beginning of year	$	1,815	$	2,175
Actual return on plan assets	190		1
Purchases and sales of plan assets, net	—		(361		)
Balance at end of year	$	2,005	$	1,815

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
2020	$	2,348
2021	2,020
2022	1,846
2023	1,931
2024	1,950
2025-2029	8,950

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

2019

2018

2019

2018

Fund ¹

Red

Green

Implemented

Yes

5/31/2020

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