PENSION AND OTHER POSTRETIREMENT PLANS (Tables)
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12 Months Ended |
Sep. 30, 2021 |
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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, 2021 and 2020:
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Pension |
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Other Postretirement |
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2021 |
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2020 |
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2021 |
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2020 |
| Change in benefit obligation: |
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| Benefit obligation, beginning 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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| Service cost |
7,919 |
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|
8,679 |
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|
201 |
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|
227 |
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| Interest cost |
6,145 |
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|
7,735 |
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|
376 |
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|
501 |
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| Actuarial (gain) loss |
(8,045) |
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|
23,827 |
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(660) |
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|
(1,402) |
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| Curtailment gain |
(17,324) |
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— |
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— |
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— |
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| Special termination benefits |
315 |
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— |
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— |
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— |
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| Exchange (gain) loss |
(133) |
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|
799 |
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— |
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— |
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| Benefit payments |
(13,838) |
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(12,110) |
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|
(507) |
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|
(847) |
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Benefit obligation, end of year (1)
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293,926 |
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318,887 |
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18,841 |
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19,431 |
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| Change in plan assets: |
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Fair value, beginning of year (2)
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168,134 |
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|
155,313 |
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— |
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— |
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| Actual return |
37,789 |
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|
8,705 |
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— |
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— |
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| Benefit payments |
(13,838) |
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(12,110) |
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(507) |
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|
(847) |
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| Employer contributions |
16,259 |
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|
16,226 |
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|
507 |
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|
847 |
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Fair value, end of year (2)
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208,344 |
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168,134 |
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— |
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— |
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Funded status (2)
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(85,582) |
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(150,753) |
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(18,841) |
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(19,431) |
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| Unrecognized actuarial loss |
49,545 |
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|
110,971 |
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16 |
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|
676 |
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| Unrecognized prior service (credit) cost |
(309) |
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|
343 |
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(1,684) |
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(2,048) |
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| Net amount recognized |
$ |
(36,346) |
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$ |
(39,439) |
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$ |
(20,509) |
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$ |
(20,803) |
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| Amounts recognized in the consolidated balance sheet: |
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| Current liability |
$ |
(779) |
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$ |
(905) |
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$ |
(883) |
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$ |
(831) |
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| Noncurrent benefit liability |
(84,803) |
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(149,848) |
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(17,958) |
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(18,600) |
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| Accumulated other comprehensive loss (income) |
49,236 |
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|
111,314 |
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(1,668) |
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(1,372) |
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| Net amount recognized |
$ |
(36,346) |
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$ |
(39,439) |
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$ |
(20,509) |
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$ |
(20,803) |
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| Amounts recognized in accumulated |
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other comprehensive loss (income):
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| Net actuarial loss |
$ |
49,545 |
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$ |
110,971 |
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$ |
16 |
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$ |
676 |
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| Prior service (credit) cost |
(309) |
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|
343 |
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(1,684) |
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(2,048) |
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| Net amount recognized |
$ |
49,236 |
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$ |
111,314 |
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$ |
(1,668) |
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$ |
(1,372) |
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(1) Gains and losses related to changes in assumptions (e.g., discount rate, mortality, etc.), asset, salary and other experience, and curtailments impacted benefit obligations.
(2) The fair value of plan assets and funded status do not include the value of investments and restricted cash held in trust for the Company's non-qualified SERP. The combined value of these investments and restricted cash totaled $26,103 and $24,610 as of September 30, 2021 and 2020, 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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2021 |
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2020 |
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2019 |
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2021 |
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2020 |
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2019 |
| Service cost |
$ |
7,919 |
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$ |
8,679 |
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$ |
7,998 |
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$ |
201 |
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$ |
227 |
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$ |
244 |
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| Interest cost * |
6,145 |
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7,735 |
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9,202 |
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|
376 |
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|
501 |
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|
718 |
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| Expected return on plan assets * |
(10,809) |
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(10,214) |
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(10,304) |
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— |
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— |
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— |
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| Amortization: |
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| Prior service cost |
(127) |
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(186) |
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(186) |
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(364) |
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(464) |
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(195) |
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| Net actuarial loss * |
9,769 |
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9,767 |
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|
4,245 |
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— |
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— |
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(59) |
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| Curtailment gain * |
(220) |
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— |
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— |
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— |
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— |
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— |
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| Special termination benefits * |
315 |
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— |
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— |
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— |
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— |
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— |
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| Prior-service cost write-offs * |
261 |
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— |
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— |
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— |
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— |
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— |
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| Net benefit cost |
$ |
13,253 |
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$ |
15,781 |
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$ |
10,955 |
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$ |
213 |
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$ |
264 |
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$ |
708 |
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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 2021 are as follows:
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| Contributions |
Pension |
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Other Postretirement |
| Principal defined benefit retirement plan |
$ |
15,000 |
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$ |
— |
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| Supplemental retirement plan |
806 |
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— |
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| Other retirement plans |
453 |
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— |
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| Other postretirement plan |
— |
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|
507 |
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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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| |
2021 |
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2020 |
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2019 |
|
2021 |
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2020 |
|
2019 |
| Discount rate |
2.79 |
% |
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2.62 |
% |
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3.13 |
% |
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2.83 |
% |
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2.63 |
% |
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3.10 |
% |
| Return on plan assets |
3.10 |
% |
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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, 2021 and 2020 and weighted-average target allocation were as follows:
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Plan Assets at |
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Target |
| Asset Category |
2021 |
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2020 |
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Allocation*
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| Equity securities |
$ |
4,075 |
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$ |
118,677 |
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— |
% |
| Fixed income, cash and cash equivalents |
189,958 |
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|
34,184 |
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|
100 |
% |
| Other investments |
14,311 |
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|
15,273 |
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— |
% |
| |
$ |
208,344 |
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$ |
168,134 |
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|
100 |
% |
* Target allocation relates to the Company's DB Plan as of September 30, 2021. During fiscal 2021, the investment policy for the Company's DB Plan was updated to establish modified asset allocation targets. The updated investment objective is intended to reduce risk assets in favor of fixed income investments as a result of the planned termination and expected settlement of the DB Plan in fiscal 2022.
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| Fair Value Allocation of Plan Assets |
The Company's defined benefit pension plans' asset categories at September 30, 2021 and 2020 were as follows:
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September 30, 2021 |
| 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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$ |
4,075 |
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$ |
— |
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$ |
— |
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$ |
4,075 |
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| Fixed income securities |
10,403 |
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|
101,133 |
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— |
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|
111,536 |
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| Cash and cash equivalents |
78,422 |
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— |
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|
— |
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|
78,422 |
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| Other investments |
— |
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— |
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|
14,311 |
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|
14,311 |
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| Total |
$ |
92,900 |
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$ |
101,133 |
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$ |
14,311 |
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$ |
208,344 |
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(1) Includes $4,075 of of Matthews Class A Common Stock in Level 1.
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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)
|
$ |
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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|
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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| Changes in Fair Value of Level 3 Plan Assets |
Changes in the fair value of Level 3 assets at September 30, 2021 and 2020 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, 2021 |
$ |
15,273 |
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|
$ |
236 |
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$ |
(2,144) |
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|
$ |
272 |
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|
$ |
674 |
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$ |
14,311 |
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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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| 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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| 2022 |
$ |
12,152 |
|
|
$ |
884 |
|
| 2023 |
35,644 |
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|
906 |
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| 2024 |
12,609 |
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|
924 |
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| 2025 |
12,673 |
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|
937 |
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| 2026 |
13,057 |
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|
940 |
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| 2027-2031 |
67,218 |
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|
4,546 |
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| |
$ |
153,353 |
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|
$ |
9,137 |
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* Pension benefit amounts do not reflect the planned termination and expected settlement of the DB Plan in fiscal 2022 (see above for further details).
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