PENSION AND OTHER POSTRETIREMENT PLANS (Tables)
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12 Months Ended |
Sep. 30, 2020 |
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| Retirement Benefits [Abstract] |
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| Reconciliation of Benefit Obligations, Plan Assets and Funded Status of Pension Plans |
The following provides a reconciliation of benefit obligations, plan assets and funded status of the plans as of the Company's actuarial valuation as of September 30, 2020 and 2019:
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Pension |
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Other Postretirement |
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2020 |
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2019 |
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2020 |
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2019 |
| Change in benefit obligation: |
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| Benefit obligation, beginning of year |
$ |
289,957 |
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$ |
241,553 |
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$ |
20,952 |
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$ |
18,826 |
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| Service cost |
8,679 |
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|
7,998 |
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|
227 |
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|
244 |
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| Interest cost |
7,735 |
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|
9,202 |
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|
501 |
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|
718 |
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| Actuarial loss (gain) |
23,827 |
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|
43,198 |
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(1,402) |
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|
2,212 |
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| Exchange loss (gain) |
799 |
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(581) |
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— |
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— |
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| Benefit payments |
(12,110) |
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(11,413) |
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(847) |
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|
(1,048) |
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| Benefit obligation, end of year |
318,887 |
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289,957 |
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19,431 |
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20,952 |
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| Change in plan assets: |
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Fair value, beginning of year (1)
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155,313 |
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|
158,662 |
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— |
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— |
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| Actual return |
8,705 |
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|
6,852 |
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— |
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— |
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| Benefit payments |
(12,110) |
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(11,413) |
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|
(847) |
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|
(1,048) |
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| Employer contributions |
16,226 |
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|
1,212 |
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|
847 |
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|
1,048 |
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Fair value, end of year (1)
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168,134 |
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|
155,313 |
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— |
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— |
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Funded status (1)
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(150,753) |
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(134,644) |
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(19,431) |
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(20,952) |
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| Unrecognized actuarial loss (gain) |
110,971 |
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|
95,741 |
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|
676 |
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(106) |
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| Unrecognized prior service cost |
343 |
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(367) |
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(2,048) |
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(330) |
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| Net amount recognized |
$ |
(39,439) |
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$ |
(39,270) |
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$ |
(20,803) |
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$ |
(21,388) |
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| Amounts recognized in the consolidated balance sheet: |
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| Current liability |
$ |
(905) |
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$ |
(882) |
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$ |
(831) |
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$ |
(989) |
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| Noncurrent benefit liability |
(149,848) |
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(133,762) |
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(18,600) |
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(19,963) |
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| Accumulated other comprehensive loss (income) |
111,314 |
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95,374 |
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(1,372) |
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(436) |
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| Net amount recognized |
$ |
(39,439) |
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$ |
(39,270) |
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$ |
(20,803) |
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$ |
(21,388) |
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| Amounts recognized in accumulated |
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other comprehensive loss (income):
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| Net actuarial loss (income) |
$ |
110,971 |
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$ |
95,741 |
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$ |
676 |
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$ |
(106) |
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| Prior service cost |
343 |
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(367) |
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(2,048) |
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(330) |
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| Net amount recognized |
$ |
111,314 |
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$ |
95,374 |
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$ |
(1,372) |
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$ |
(436) |
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(1) The fair value of plan assets and funded status do not include the value of investments held in trust for the Company's non-qualified supplemental retirement plan. These investments totaled $24,610 and $22,986 as of September 30, 2020 and 2019, respectively. Refer to Note 7, "Investments" for further details.
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| Net Periodic Pension and Other Postretirement Benefit Cost |
Net periodic pension and other postretirement benefit cost for the plans included the following:
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Pension |
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Other Postretirement |
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2020 |
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2019 |
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2018 |
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2020 |
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2019 |
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2018 |
| Service cost |
$ |
8,679 |
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$ |
7,998 |
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$ |
8,159 |
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$ |
227 |
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$ |
244 |
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$ |
335 |
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| Interest cost * |
7,735 |
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9,202 |
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8,210 |
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|
501 |
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|
718 |
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|
631 |
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| Expected return on plan assets * |
(10,214) |
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(10,304) |
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(10,136) |
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— |
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— |
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— |
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| Amortization: |
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| Prior service cost |
(186) |
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(186) |
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(138) |
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(464) |
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(195) |
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(195) |
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| Net actuarial loss * |
9,767 |
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4,245 |
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7,018 |
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— |
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(59) |
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— |
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| Net benefit cost |
$ |
15,781 |
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$ |
10,955 |
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$ |
13,113 |
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$ |
264 |
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$ |
708 |
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$ |
771 |
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* Non-service components of pension and postretirement expense are included in other income (deductions), net.
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| Contributions During Fiscal Year |
Contributions made in fiscal 2020 are as follows:
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| Contributions |
Pension |
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Other Postretirement |
| Principal retirement plan * |
$ |
14,983 |
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$ |
— |
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| Supplemental retirement plan |
821 |
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— |
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| Other retirement plans |
422 |
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— |
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| Other postretirement plan |
— |
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|
847 |
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* Amount represents contribution of Matthews Class A Common Stock (see above).
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| Amounts of AOCI Expected to be Recognized in Net Periodic Benefit Costs |
Amounts of AOCI expected to be recognized in net periodic benefit costs in fiscal 2021 include:
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Pension
Benefits |
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Other
Postretirement
Benefits |
| Net actuarial loss |
$ |
12,076 |
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$ |
— |
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| Prior service cost |
(68) |
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(364) |
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| Weighted-Average Assumptions for Principal Retirement and Other Postretirement Benefit Plans |
The weighted-average assumptions for those plans were:
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Pension |
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Other Postretirement
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2020 |
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2019 |
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2018 |
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2020 |
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2019 |
|
2018 |
| Discount rate |
2.62 |
% |
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3.13 |
% |
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4.21 |
% |
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2.63 |
% |
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3.10 |
% |
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4.19 |
% |
| Return on plan assets |
6.75 |
% |
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6.75 |
% |
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6.75 |
% |
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— |
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— |
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— |
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| Compensation increase |
3.50 |
% |
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3.50 |
% |
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3.50 |
% |
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— |
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— |
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— |
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| Weighted Average Asset Allocation and Target Allocation |
The Company's defined benefit pension plans' weighted-average asset allocation at September 30, 2020 and 2019 and weighted-average target allocation were as follows:
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Plan Assets at |
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Target |
| Asset Category |
2020 |
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2019 |
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Allocation*
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| Equity securities |
$ |
118,677 |
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$ |
105,297 |
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65 |
% |
| Fixed income, cash and cash equivalents |
34,184 |
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|
39,156 |
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25 |
% |
| Other investments |
15,273 |
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|
10,860 |
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10 |
% |
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$ |
168,134 |
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$ |
155,313 |
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|
100 |
% |
* Target allocation relates to the Company's primary defined benefit pension plan as of September 30, 2020.
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| Fair Value Allocation of Plan Assets |
The Company's defined benefit pension plans' asset categories at September 30, 2020 and 2019 were as follows:
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September 30, 2020 |
| Asset Category |
Level 1 |
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Level 2 |
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Level 3 |
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Total |
Equity securities - stocks (1)
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$ |
37,089 |
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$ |
— |
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$ |
— |
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$ |
37,089 |
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| Equity securities - mutual funds |
81,588 |
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— |
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— |
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|
81,588 |
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| Fixed income securities |
11,738 |
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|
20,086 |
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— |
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31,824 |
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| Cash and cash equivalents |
2,360 |
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— |
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— |
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2,360 |
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| Other investments |
— |
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— |
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15,273 |
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|
15,273 |
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| Total |
$ |
132,775 |
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$ |
20,086 |
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$ |
15,273 |
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$ |
168,134 |
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(1) Includes $14,936 of of Matthews Class A Common Stock in Level 1.
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September 30, 2019 |
| Asset Category |
Level 1 |
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Level 2 |
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Level 3 |
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Total |
| Equity securities - stocks |
$ |
54,985 |
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$ |
— |
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$ |
— |
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$ |
54,985 |
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| Equity securities - mutual funds |
50,312 |
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— |
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— |
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|
50,312 |
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| Fixed income securities |
15,829 |
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|
18,968 |
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— |
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|
34,797 |
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| Cash and cash equivalents |
4,359 |
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— |
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|
— |
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|
4,359 |
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| Other investments |
— |
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— |
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|
10,860 |
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|
10,860 |
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| Total |
$ |
125,485 |
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$ |
18,968 |
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$ |
10,860 |
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$ |
155,313 |
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| Changes in Fair Value of Level 3 Plan Assets |
Changes in the fair value of Level 3 assets at September 30, 2020 and 2019 are summarized as follows:
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| Asset Category |
Fair Value, Beginning of Period |
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Acquisitions |
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Dispositions |
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Realized Gains |
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Unrealized Gains (Losses) |
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Fair Value, End of Period |
| Other investments: |
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| Fiscal Year Ended: |
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| September 30, 2020 |
$ |
10,860 |
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$ |
10,835 |
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$ |
(6,326) |
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$ |
220 |
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$ |
(316) |
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$ |
15,273 |
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| September 30, 2019 |
10,115 |
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|
4,162 |
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(2,786) |
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|
685 |
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(1,316) |
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|
10,860 |
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| Benefit Payments Expected to be Paid |
Benefit payments expected to be paid are as follows:
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| Years ending September 30: |
Pension Benefits |
|
Other Postretirement Benefits |
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| 2021 |
$ |
11,363 |
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$ |
831 |
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| 2022 |
12,302 |
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|
858 |
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| 2023 |
12,630 |
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|
887 |
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| 2024 |
14,138 |
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|
910 |
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| 2025 |
14,252 |
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|
931 |
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| 2026-2030 |
78,163 |
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|
4,557 |
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| |
$ |
142,848 |
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$ |
8,974 |
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