Benefit Plans

12 Months Ended

Sep. 30, 2011


Note 8 —	Benefit Plans

The Company has defined benefit pension plans covering substantially all of its employees in the United States and certain foreign locations. The Company also provides certain postretirement healthcare and life insurance benefits to qualifying domestic retirees. Postretirement healthcare and life insurance benefit plans in foreign countries are not material. The measurement date used for the Company’s employee benefit plans is September 30.

Net pension and other postretirement cost for the years ended September 30 included the following components:


	Pension Plans									Other Postretirement Benefits
	2011			2010			2009			2011			2010		2009

Service cost	$	88,692		$	72,901		$	55,004		$	5,842		$	5,007	$	3,441
Interest cost		93,228			90,432			87,480			13,143			14,190		15,338
Expected return on plan assets		(103,081	)		(99,199	)		(86,819	)		—			—		—
Amortization of prior service (credit) cost		(1,294	)		(1,091	)		(1,099	)		(686	)		4		(463	)
Amortization of loss (gain)		55,735			41,812			17,235			4,465			3,408		(143	)
Amortization of net asset		(34	)		(47	)		(59	)		—			—		—
Curtailment/settlement loss		1,096			—			—			—			—		—

	$	134,342		$	104,808		$	71,742		$	22,764		$	22,609	$	18,173

Net pension cost attributable to foreign plans included in the preceding table was $34,429, $25,820 and $24,971 in 2011, 2010 and 2009, respectively.

The change in benefit obligation, change in fair value of plan assets, funded status and amounts recognized in the Consolidated Balance Sheets for these plans were as follows:


							Other Postretirement
	Pension Plans						Benefits
	2011			2010			2011			2010

Change in benefit obligation:
Beginning obligation	$	1,911,295		$	1,635,334		$	260,124		$	249,593
Service cost		88,692			72,901			5,842			5,007
Interest cost		93,228			90,432			13,143			14,190
Plan amendments		(3,683	)		60			—			(6,702	)
Benefits paid		(108,381	)		(101,394	)		(25,776	)		(25,046	)
Actuarial loss		22,146			224,890			8,277			16,233
Other, includes translation		(6,856	)		(10,928	)		7,848			6,849

Benefit obligation at September 30	$	1,996,441		$	1,911,295		$	269,458		$	260,124

Change in fair value of plan assets:
Beginning fair value	$	1,413,848		$	1,209,135		$	—		$	—
Actual return on plan assets		1,391			109,310			—			—
Employer contribution		53,505			207,775			—			—
Benefits paid		(108,381	)		(101,394	)		—			—
Other, includes translation		(7,633	)		(10,978	)		—			—

Plan assets at September 30	$	1,352,730		$	1,413,848		$	—		$	—

Funded Status at September 30:
Unfunded benefit obligation	$	(643,711	)	$	(497,447	)	$	(269,458	)	$	(260,124	)

Amounts recognized in the Consolidated Balance Sheets at September 30:
Other	$	3,217		$	143		$	—		$	—
Salaries, wages and related items		(6,042	)		(6,492	)		(18,188	)		(17,875	)
Long-term Employee Benefit Obligations		(640,886	)		(491,098	)		(251,270	)		(242,249	)

Net amount recognized	$	(643,711	)	$	(497,447	)	$	(269,458	)	$	(260,124	)

Amounts recognized in Accumulated other comprehensive (loss) income before income taxes at September 30:
Net transition asset	$	398		$	513		$	—		$	—
Prior service credit		9,193			6,530			6,013			6,699
Net actuarial loss		(911,146	)		(843,284	)		(70,653	)		(67,009	)

Net amount recognized	$	(901,555	)	$	(836,241	)	$	(64,640	)	$	(60,310	)

Foreign pension plan assets at fair value included in the preceding table were $419,452 and $402,298 at September 30, 2011 and 2010, respectively. The foreign pension plan projected benefit obligations were $500,969 and $560,640 at September 30, 2011 and 2010, respectively.

Pension plans with accumulated benefit obligations in excess of plan assets and plans with projected benefit obligations in excess of plan assets consist of the following at September 30:


	Accumulated Benefit				Projected Benefit
	Obligation Exceeds the				Obligation Exceeds the
	Fair Value of Plan Assets				Fair Value of Plan Assets
	2011		2010		2011		2010

Projected benefit obligation	$	1,616,534	$	1,669,986	$	1,862,441	$	1,903,939
Accumulated benefit obligation	$	1,338,643	$	1,410,029
Fair value of plan assets	$	989,043	$	1,224,095	$	1,215,513	$	1,406,349

The estimated net actuarial loss and prior service credit for pension benefits that will be amortized from Accumulated other comprehensive (loss) income into net pension costs over the next fiscal year are expected to be $(62,700) and $1,772, respectively. The estimated net actuarial loss and prior service credit for other postretirement benefits that will be amortized from Accumulated other comprehensive (loss) income into net other postretirement costs over the next fiscal year are expected to be $(4,645) and $690, respectively.

The weighted average assumptions used in determining pension plan information were as follows:


	2011			2010			2009

Net Cost
Discount rate:
U.S. plans(A)		5.20	%		5.90	%		8.00	%
Foreign plans		4.68			5.63			6.03
Expected return on plan assets:
U.S. plans		8.00			8.00			8.00
Foreign plans		6.31			6.38			6.45
Rate of compensation increase:
U.S. plans(A)		4.50			4.50			4.50
Foreign plans		3.56			3.35			3.56
Benefit Obligation
Discount rate:
U.S. plans(A)		4.90			5.20			5.90
Foreign plans		5.26			4.68			5.63
Rate of compensation increase:
U.S. plans(A)		4.25			4.50			4.50
Foreign plans		3.61			3.56			3.35


(A)		Also used to determine other postretirement and postemployment benefit plan information.

At September 30, 2011 the assumed healthcare trend rates were 7.6% pre and post age 65, gradually decreasing to an ultimate rate of 5.0% beginning in 2024. At September 30, 2010 the corresponding assumed healthcare trend rates were 7.8% pre and post age 65, gradually decreasing to an ultimate rate of 4.5% beginning in 2027. A one percentage point increase in assumed healthcare cost trend rates in each year would increase the accumulated postretirement benefit obligation as of September 30, 2011 by $8,566 and the aggregate of the service cost and interest cost components of 2011 annual expense by $828. A one percentage point decrease in the assumed healthcare cost trend rates in each year would decrease the accumulated postretirement benefit obligation as of September 30, 2011 by $7,617 and the aggregate of the 2011 service cost and interest cost by $723.

Expected Rate of Return on Plan Assets

The expected rate of return on plan assets is based upon expectations of long-term average rates of return to be achieved by the underlying investment portfolios. In establishing this assumption, the Company considers many factors, including historical assumptions compared with actual results; benchmark data; expected returns on various plan asset classes, as well as current and expected asset allocations.

Expected Funding

The Company’s funding policy for its defined benefit pension plans is to contribute amounts sufficient to meet legal funding requirements, plus any additional amounts that may be appropriate considering the funded status of the plans, tax consequences, the cash flow generated by the Company and other factors. While the Company does not anticipate any significant required contributions to its pension plans in 2012, the Company made a discretionary contribution of $100,000 to its U.S. pension plan in October 2011.

Expected benefit payments are as follows:


			Other
	Pension		Postretirement
	Plans		Benefits

2012	$	128,921	$	18,188
2013		96,178		18,708
2014		101,061		19,224
2015		111,483		19,778
2016		116,066		20,199
2017-2021		735,367		102,714

Expected receipts of the subsidy under the Medicare Prescription Drug Improvement and Modernization Act of 2003, which are not reflected in the expected other postretirement benefit payments included in the preceding table, are as follows: 2012, $2,314; 2013, $2,440; 2014, $2,549; 2015, $2,623; 2016, $2,684; 2017-2021, $13,800.

Investments

The Company’s primary objective is to achieve returns sufficient to meet future benefit obligations. It seeks to generate above market returns by investing in more volatile asset classes such as equities while at the same time controlling risk with allocations to more stable asset classes like fixed income.

U.S. Plans

The Company’s U.S. plans comprise 69% of total benefit plan investments, based on September 30, 2011 market values, and have a target asset mix of 65% equities and 35% fixed income. This mix was established based on an analysis of projected benefit payments and estimates of long-term returns, volatilities and correlations for various asset classes. The mix is reviewed periodically by the named fiduciary of the plans and is intended to provide above-market returns at an acceptable level of risk over time.

The established target mix includes ranges by which the target may deviate in order to accommodate normal market fluctuations. Routine cash flows are used to bring the mix closer to target and a move outside of the acceptable ranges will signal the potential for a formal rebalancing, based on an assessment of current market conditions and transaction costs. Any tactical deviations from the established asset mix require the approval of the named fiduciary.

The U.S. plans may enter into both exchange traded and non-exchange traded derivative transactions in order to manage interest rate exposure, volatility, term structure of interest rates, and sector and currency exposures within the fixed income portfolios. The Company has established minimum credit quality standards for counterparties in such transactions.

The following table provides the fair value measurements of U.S. plan assets, as well as the measurement techniques and inputs utilized to measure fair value of these assets, at September 30, 2011 and 2010.


	Total U.S.
	Plan Asset		Quoted Prices in		Significant
	Balances at		Active Markets		Other		Significant
	September 30,		for Identical		Observable		Unobservable
	2011		Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)

Fixed Income:
Mortgage and asset-backed securities(A)	$	165,042	$	—	$	165,042	$	—
Corporate bonds(B)		111,954		—		111,954		—
Government and agency-U.S.(C)		41,885		26,577		15,308		—
Government and agency-Foreign(D)		6,836		—		6,836		—
Other(E)		8,277		—		8,277		—
Equity securities(F)		562,047		435,847		126,200		—
Cash and cash equivalents(G)		37,237		37,237		—		—

Fair value of plan assets	$	933,278	$	499,661	$	433,617	$	—


	Total U.S.
	Plan Asset		Quoted Prices in		Significant
	Balances at		Active Markets		Other		Significant
	September 30,		for Identical		Observable		Unobservable
	2010		Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)

Fixed Income:
Mortgage and asset-backed securities(A)	$	160,189	$	—	$	160,189	$	—
Corporate bonds(B)		109,331		—		109,331		—
Government and agency-U.S. (C)		41,175		21,416		19,759		—
Government and agency-Foreign(D)		15,960		—		15,960		—
Other(E)		3,337		—		3,337		—
Equity securities(F)		631,877		396,188		235,689		—
Cash and cash equivalents(G)		42,681		42,681		—		—

Fair value of plan assets	$	1,004,550	$	460,285	$	544,265	$	—


(A)		Values are based upon a combination of observable prices, independent pricing services and relevant broker quotes.

(B)		Values are based upon comparable securities with similar yields and credit ratings.

(C)		Values of instruments classified as Level 1 are based on the closing price reported on the major market on which the investments are traded. Values of instruments classified as Level 2 are based upon quoted market prices from observable pricing sources.

(D)		Values are based upon quoted market prices from observable pricing sources.

(E)		Classification contains various immaterial investments and valuation varies by investment type. Values are primarily based upon quoted market prices from observable pricing sources.

(F)		Values of instruments classified as Level 1 are based on the closing price reported on the major market on which the investments are traded. Values of instruments classified as Level 2 are based on the net asset value provided by the fund administrator, which is based on the value of the underlying assets owned by the fund, less its liabilities and then divided by the number of fund units outstanding.

(G)		Values are based upon quoted market prices or broker/dealer quotations.

The U.S. portion of fixed income assets is invested in mortgage-backed, corporate, government and agency and asset-backed instruments. Mortgage-backed securities consist of residential mortgage pass-through certificates. Corporate bonds are diversified across industry and sector and, while consisting primarily of investment grade instruments, include an allocation to high-yield debt as well. U.S. government investments consist of obligations of the U.S. Treasury and its agencies.

The non-U.S. portion of fixed income investments consists primarily of corporate bonds in developed markets but includes an allocation to emerging markets debt as well. The value of derivative instruments is not material and is included in the “Other” category provided in the table above.

Equity securities included within the plans’ assets consist of publicly-traded U.S. and non-U.S. equity securities. In order to achieve appropriate diversification, these portfolios are allocated among multiple asset managers and invested across market sectors, investment styles, capitalization weights and geographic regions.

A portion of the U.S. plans’ assets consists of investments in cash and cash equivalents, primarily to accommodate liquidity requirements relating to trade settlement and benefit payment activity.

Foreign Plans

Foreign plan assets comprise 31% of the Company’s total benefit plan assets, based on market value at September 30, 2011. Such plans have local independent fiduciary committees, with responsibility for development and oversight of investment policy, including asset allocation decisions. In making such decisions, consideration is given to local regulations, investment practices and funding rules.

The following table provides the fair value measurements of foreign plan assets, as well as the measurement techniques and inputs utilized to measure fair value of these assets, at September 30, 2011 and 2010.


	Total Foreign
	Plan Asset		Quoted Prices in		Significant
	Balances at		Active Markets		Other		Significant
	September 30,		for Identical		Observable		Unobservable
	2011		Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)

Fixed Income:
Corporate bonds(A)	$	34,905	$	—	$	34,905	$	—
Government and agency-U.S.(B)		1,065		1,065		—		—
Government and agency-Foreign(C)		77,949		36,687		41,262		—
Other(D)		—		—		—		—
Equity securities(E)		215,309		201,325		13,726		258
Cash and cash equivalents(F)		1,191		1,191		—		—
Real estate(G)		10,688		—		—		10,688
Insurance contracts(H)		78,345		—		—		78,345

Fair value of plan assets	$	419,452	$	240,268	$	89,893	$	89,291


	Total Foreign
	Plan Asset		Quoted Prices in		Significant
	Balances at		Active Markets		Other		Significant
	September 30,		for Identical		Observable		Unobservable
	2010		Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)

Fixed Income:
Corporate bonds(A)	$	36,541	$	—	$	36,541	$	—
Government and agency-U.S.(B)		—		—		—		—
Government and agency-Foreign(C)		65,561		34,387		31,174		—
Other(D)		8,797		—		8,797		—
Equity securities(E)		220,102		207,577		12,258		267
Cash and cash equivalents(F)		6,478		6,478		—		—
Real estate(G)		9,486		—		—		9,486
Insurance contracts(H)		62,333		—		89		62,244

Fair value of plan assets	$	409,298	$	248,442	$	88,859	$	71,997


(A)		Values are based upon comparable securities with similar yields and credit ratings.

(B)		Values are based on the closing price reported on the major market on which the investments are traded.

(C)		Values of instruments classified as Level 1 are based on the closing price reported on the major market on which the investments are traded. Values of instruments classified as Level 2 are based upon quoted market prices from observable pricing sources.

(D)		Values are based upon quoted market prices from observable pricing sources.

(E)		Values of instruments classified as Level 1 are based on the closing price reported on the major market on which the investments are traded. Values of instruments classified as Level 2 are based on the net asset value provided by the fund administrator, which is based on the value of the underlying assets owned by the fund, less its liabilities and then divided by the number of fund units outstanding.

(F)		Values are based upon quoted market prices or broker/dealer quotations.

(G)		Values represent the estimated fair value based on the fair value of the underlying investment value or cost, adjusted for any accumulated earnings or losses.

(H)		Values approximately represent cash surrender value.

Fixed income investments include corporate, U.S. government and non-U.S. government securities. Equity securities included in the foreign plan assets consist of publicly-traded U.S. and non-U.S. equity securities. Real estate investments consist of investments in funds holding an interest in real properties. The foreign plans also hold a portion of assets in cash and cash equivalents, in order to accommodate liquidity requirements.

The following table summarizes the changes, for the years ended September 30, 2011 and 2010, in the fair value of foreign pension assets measured using Level 3 inputs:


	Equity			Real			Insurance			Total
	Securities			Estate			Contracts			Assets

Balance at September 30, 2009	$	494		$	8,987		$	59,078		$	68,559
Actual return on plan assets:
Relating to assets held at September 30, 2010		—			558			2,075			2,633
Relating to assets sold during the period		(199	)		185			—			(14	)
Purchases, sales and settlements, net		7			122			—			129
Transfers in (out) from other categories		(3	)		—			4,866			4,863
Exchange rate changes		(32	)		(366	)		(3,775	)		(4,173	)

Balance at September 30, 2010	$	267		$	9,486		$	62,244		$	71,997
Actual return on plan assets:
Relating to assets held at September 30, 2011		(4	)		46			2,613			2,655
Relating to assets sold during the period		—			—			—			—
Purchases, sales and settlements, net		—			1,363			14,710			16,073
Transfers in (out) from other categories		—			—			92			92
Exchange rate changes		(5	)		(207	)		(1,314	)		(1,526	)

Balance at September 30, 2011	$	258			10,688		$	78,345		$	89,291

Postemployment Benefits

The Company utilizes a service-based approach in accounting for most of its postemployment benefits. Under this approach, the costs of benefits are recognized over the eligible employees’ service period. The Company has elected to delay recognition of actuarial gains and losses that result from changes in assumptions.

Postemployment benefit costs for the years ended September 30 included the following components:


	2011			2010			2009

Service cost	$	13,327		$	11,409		$	9,944
Interest cost		5,054			4,379			5,435
Amortization of prior service credit		(1,697	)		(1,697	)		(1,697	)
Amortization of loss		10,490			7,777			4,323

	$	27,174		$	21,868		$	18,005

The unfunded status of the postemployment benefit plans, which are not funded, was $137,575 and $112,751 at September 30, 2011 and 2010, respectively. The amounts recognized in Accumulated other comprehensive (loss) income before income taxes for the net actuarial loss was $116,442 and $76,220 at September 30, 2011 and 2010, respectively. The estimated net actuarial loss that will be amortized from the Accumulated other comprehensive (loss) income into postemployment benefit cost over the next fiscal year is $13,942.

Savings Incentive Plan

The Company has a voluntary defined contribution plan (“Savings Incentive Plan”) covering eligible employees in the United States. The Company matches contributions for eligible employees to 75% of employees’ contributions, up to a maximum of 4.5% of each employee’s eligible compensation. The cost of the Savings Incentive Plan was $36,535 in 2011, $34,097 in 2010 and $36,438 in 2009. The Company guarantees employees’ contributions to the fixed income fund of the Savings Incentive Plan, which consists of diversified money market instruments. The amount guaranteed was $240,113 at September 30, 2011.