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Retirement Benefit Plans
 12 Months Ended
Sep. 30, 2021
Retirement Benefits [Abstract]  
Retirement Benefit Plans Retirement Benefit Plans
Defined Benefit Plans
The Company and certain of its subsidiaries sponsor four defined benefit pension plans covering some of its employees. The Company’s funding policy for its defined benefit pension plans is based on an actuarially determined cost method allowable under Internal Revenue Service regulations. One of the defined benefit pension plans covers non-union employees of the Company’s U.S. operations who were hired prior to March 1, 2003. Benefit accruals ceased in March 2003. A second defined benefit plan covered employees at a business location that closed in December 2013, at which time benefits accruals ceased. The third defined pension plan covers one of the Company's union groups at the Cleveland location. See Notes 11 and 12, Commitment and Contingencies and Business information, for further discussion regarding its union status. Benefits accruals under this plan ceased in March 2020, when the then-current union disclaimed all interest in the bargaining unit. Curtailment occurred; however, there was no impact to consolidated financial statements. A new union has been certified and collective bargaining is underway. Such bargaining will determine whether benefit accruals under this plan will resume or whether retirement benefits will be provided through a defined contribution plan. The Company sponsors a fourth defined benefit plan for certain employees at its Maniago location. The plan is a severance entitlement payable to the Italian employees who qualified prior to December 27, 2006. The plan is considered an unfunded defined benefit plan and its liability is measured as the actuarial present value of the vested benefits to which the employees would be entitled if they separated at the consolidated balance sheet date.

The Company uses a September 30 measurement date for its U.S. defined benefit pension 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,
 20212020
Service cost$131 $341 
Interest cost699 832 
Expected return on plan assets(1,421)(1,453)
Amortization of net loss846 752 
Settlement cost274 239 
Net pension expense for defined benefit plans$529 $711 
The status of all defined benefit pension plans at September 30 is as follows:
20212020
Benefit obligations:
Benefit obligations at beginning of year$31,793 $30,548 
Service cost131 341 
Interest cost699 832 
Actuarial (gain) loss(967)2,037 
Benefits paid(2,349)(1,965)
Currency translation23 — 
Benefit obligations at end of year$29,330 $31,793 
Plan assets:
Plan assets at beginning of year$21,609 $20,970 
Actual return on plan assets3,825 1,930 
Employer contributions126 674 
Benefits paid(2,349)(1,965)
Plan assets at end of year$23,211 $21,609 

As shown within the above table, there was a decrease in the benefit obligation of $2,463 to $29,330 at September 30, 2021 compared with $31,793 at September 30, 2020. The primary drivers that attributed to the change pertained to updates in the mortality scale and the discount rate used along with asset returns being better than expected.
 Plans in which
Benefit Obligations
Exceed Assets at
September 30,
 20212020
Reconciliation of funded status:
Plan assets less than projected benefit obligations$(6,119)$(10,211)
Amounts recognized in accumulated other comprehensive loss:
Net loss7,482 11,973 
Net amount recognized in the consolidated balance sheets$1,363 $1,762 
Amounts recognized in the consolidated balance sheets are:
Accrued liabilities(46)(46)
Pension liability(6,073)(10,165)
Accumulated other comprehensive loss – pretax7,482 11,973 
Net amount recognized in the consolidated balance sheets$1,363 $1,762 

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,
 20212020
Discount rate for liabilities2.6 %2.3 %
Discount rate for expenses3.1 %2.9 %
Expected return on assets7.0 %7.2 %
The Company holds investments in pooled separate accounts and common/collective trusts, in which the fair value of assets of the underlying funds are determined in the following ways:

•U.S. equity securities are comprised of domestic equities that are priced using the closing price of the applicable nationally recognized stock exchange, as provided by industry standard vendors such as Interactive Data Corporation.

•Non-U.S. equity securities are comprised of international equities. These securities are priced using the closing price from the applicable foreign stock exchange.

•U.S. bond funds are comprised of domestic fixed income securities. Securities are priced by industry standards vendors, such as Interactive Data Corporation, using inputs such as benchmark yields, reported trades, broker/dealer quotes, or issuer spreads.

◦Included as part of the U.S. bond funds, are private placement funds, for which fair market value is not always commercially available, the fair value of these investments is primarily determined using a discounted cash flow model, which utilizes a discount rate based upon the average of spread surveys collected from private-market intermediaries who are active in both primary and secondary transactions, and takes into account, among other factors, the credit quality and industry sector of the issuer and the reduced liquidity associated with private placements.

•Non-U.S. bond funds are comprised of international fixed income securities. Securities are priced by Interactive Data Corporation, using inputs such as benchmark yields, reported trades, broker/dealer quotes, or issuer spreads.

•Stable value fund is comprised of short-term securities and cash equivalent securities, which seek to provide high current income consistent with the preservation of principal and liquidity. As permitted under relevant securities laws, securities in this type of fund are valued initially at cost and thereafter adjusted for amortization of any discount or premium.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. However, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement result.
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, 2021 and 2020:
September 30, 2021Asset
Amount		Level 2Level 3
U.S. equity securities:
Large value$514 $514 $— 
Large blend10,227 10,227 — 
Large growth519 519 — 
Mid blend223 223 — 
Small blend697 697 — 
Non-U.S. equity securities:
Foreign large blend1,807 1,807 — 
Diversified emerging markets86 86 — 
U.S. debt securities:
Inflation protected bond1,087 1,087 — 
Intermediate term bond7,396 5,288 2,108 
High inflation bond189 189 — 
Non-U.S. debt securities:
Emerging markets bonds164 164 — 
Stable value:
Short-term bonds302 302 — 
Total plan assets at fair value$23,211 $21,103 $2,108 
September 30, 2020Asset
Amount		Level 2Level 3
U.S. equity securities:
Large value$175 $175 $— 
Large blend9,334 9,334 — 
Large growth1,109 1,109 — 
Mid blend176 176 — 
Small blend224 224 — 
Non-U.S. equity securities:
Foreign large blend1,603 1,603 — 
Diversified emerging markets50 50 — 
U.S. debt securities:
Inflation protected bond1,028 1,028 — 
Intermediate term bond7,479 5,381 2,098 
High inflation bond178 178 — 
Non-U.S. debt securities:
Emerging markets bonds106 106 — 
Stable value:
Short-term bonds147 147 — 
Total plan assets at fair value$21,609 $19,511 $2,098 
Changes in the fair value of the Company’s Level 3 investments during the years ending September 30, 2021 and 2020 were as follows:

20212020
Balance at beginning of year$2,098 $2,005 
Actual return on plan assets52 128 
Purchases and sales of plan assets, net(42)(35)
Balance at end of year$2,108 $2,098 

Investment objectives relative to the assets of the Company’s defined benefit pension plans are to (i) optimize the long-term return on the plans’ assets while assuming an acceptable level of investment risk; (ii) maintain an appropriate diversification across asset categories and among investment managers; and (iii) maintain a careful monitoring of the risk level within each asset category. Asset allocation objectives are established to promote optimal expected returns and volatility characteristics given the long-term time horizon for fulfilling the obligations of the Company’s defined benefit pension plans. Selection of the appropriate asset allocation for the plans’ assets was based upon a review of the expected return and risk characteristics of each asset category in relation to the anticipated timing of future plan benefit payment obligations. The Company has a long-term objective for the allocation of plan assets. However, the Company realizes that actual allocations at any point in time will likely vary from this objective due principally to (i) the impact of market conditions on plan asset values and (ii) required cash contributions to and distribution from the plans. 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
 20212020
U.S. equities53 %51 %
30% to 70%
Non-U.S. equities8 %8 %
0% to 20%
U.S. debt securities37 %40 %
20% to 70%
Non-U.S. debt securities1 %— %
0% to10%
Other securities1 %1 %
0% to 60%
Total100 %100 %

External consultants assist the Company with monitoring the appropriateness of the above investment strategy and the related asset mix and performance. To develop the expected long-term rate of return assumptions on plan assets, generally the Company uses long-term historical information for the target asset mix selected. Adjustments are made to the expected long-term rate of return assumptions when deemed necessary based upon revised expectations of future investment performance of the overall investments markets.

The Company anticipates making approximately $83 in contributions to its defined benefit pension plans during fiscal 2022. The Company has carryover balances from previous periods that may be available for use as a credit to reduce the amount of contributions that the Company is required to make to certain of its defined benefit pension plans in fiscal 2022. The Company’s ability to elect to use such carryover balances will be determined based on the actual funded status of each defined benefit pension plan relative to the plan’s minimum regulatory funding requirements.
The following defined benefit payment amounts are expected to be made in the future:
Years Ending
September 30,
Projected
Benefit Payments
2022$2,188 
20231,813 
20241,844 
20251,924 
20261,793 
2027-20318,251 
Multi-Employer Plan
As noted within Note 12, Business Information, one of the bargaining units previously participated in a multi-employer plan; however, as part of the ratification of a new collective bargaining agreement in December 2019, there was a provision to withdraw from the existing multi-employer plan effective December 31, 2019. The withdrawal resulted in a liability of $739, which was recorded within the costs of goods sold line in fiscal 2020 of the consolidated statements of operations and is included in other long-term liabilities. The liability is payable in quarterly installments over the next 20 years. The next four quarterly installments are recorded in accrued liabilities of the consolidated balance sheet.

The Company's withdrawal from the multi-employer plan was to mitigate the risks associated with such type of plan. Subsequent to the withdrawal, the remaining risk to the Company is the potential occurrence of a "mass withdrawal" of all participating employers within three years of the Company's withdrawal date, in which case the Company could be assessed additional withdrawal liability.

Defined Contribution Plans
Substantially all non-union U.S. employees of the Company and its U.S. subsidiaries are eligible to participate in the Company’s U.S. defined contribution plan. The Company makes non-discretionary, regular matching contributions to this plan equal to an amount that represents one hundred percent (100%) of a participant’s deferral contribution up to one percent (1%) of eligible compensation plus eighty percent (80%) of a participant’s deferral contribution between one percent (1%) and six percent (6%) of eligible compensation. The Company’s regular matching contribution expense for its U.S. defined contribution plan in fiscal 2021 and 2020 was $571 and $648, respectively. This defined contribution plan provides that the Company may also make an additional discretionary matching contribution during those periods in which the Company achieves certain performance levels. The Company did not provide additional discretionary matching contributions in either fiscal 2021 and 2020.

Effective January 1, 2020, the Company sponsors a defined contribution plan for the Cleveland bargaining unit that withdrew from the multi-employer plan, as described above. The Company makes a non-elective contribution equal to $1.50 per work, vacation, or holiday hour, up to a maximum of 40 hours per week. The Company's non-elective contribution expense was $112 in fiscal 2021 and $56 in fiscal 2020.
The Company sponsors a defined contribution plan for certain of its Maniago union employees. The plan is a severance entitlement payable plan to Italian employees based on local government laws, which qualifies as a defined contribution plan.