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Employee Benefit Plans
 12 Months Ended
Nov. 30, 2018
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
 
The Company maintains a number of defined benefit and defined contribution plans to provide retirement benefits for employees. These plans are maintained and contributions are made in accordance with the Employee Retirement Income Security Act of 1974 (“ERISA”), local statutory law, or as determined by the Board of Directors. The plans generally provide benefits based upon years of service and compensation. Pension plans are funded except for a U.S. non-qualified pension plan for certain key employees and certain foreign plans. The Company uses a November 30 measurement date for its plans.

Defined Benefit Plans
 
The Company’s defined benefit plans generally provide benefits based on years of service and compensation for salaried employees and under negotiated non-wage based formulas for union-represented employees.

Changes in benefit obligations and plan assets are as follows:
 
2019
 
2018
 
(Dollars in millions)
Change in Benefit Obligation:
 
 
 
Benefit obligation at beginning of year
$
259.5

 
$
288.1

Service cost
2.9

 
2.6

Interest cost
10.2

 
9.0

Actuarial loss (gain)
34.7

 
(21.6
)
Benefits and expenses paid net of retiree contributions
(17.8
)
 
(18.1
)
Exchange rate changes
(0.2
)
 
(0.5
)
Benefit Obligation at End of Year
289.3

 
259.5

 
 
 
 
Change in Plan Assets:
 
 
 
Fair value of plan assets at beginning of year
207.5

 
217.2

Actual return on assets
17.4

 
2.1

Employer contributions
6.5

 
6.3

Benefits and expenses paid
(18.3
)
 
(18.1
)
Fair Value of Plan Assets at End of Year
213.1

 
207.5

Funded Status at November 30
$
(76.2
)
 
$
(52.0
)
Amounts Recognized in the Consolidated Balance Sheets:
 
 
 
Current liability
$
(0.7
)
 
$
(0.4
)
Non-current liability
(75.5
)
 
(51.6
)
Net Amount Recognized
$
(76.2
)
 
$
(52.0
)


As of November 30, 2019 and 2018, the amounts included in Accumulated Other Comprehensive Income (Loss) that have not yet been recognized in net periodic benefit cost consist of:
 
2019
 
2018
 
(Dollars in millions)
Net actuarial loss
$
(148.0
)
 
$
(119.7
)
Prior service credit
$
(0.5
)
 
$
—



The after-tax amount of unrecognized net actuarial loss at November 30, 2019 was $133.3 million. The estimated net loss for defined benefit plans that will be amortized from Accumulated Other Comprehensive Loss during 2020 is $6.5 million.
 
Net Periodic Benefit Cost 

Net periodic benefit cost (income) consisted of the following for the years ended November 30:
 
2019
 
2018
 
2017
 
(Dollars in millions)
Net Periodic Benefit Cost:
 
 
 
 
 
Service costs for benefits earned
$
2.9

 
$
2.6

 
$
2.8

Interest costs on benefit obligation
10.2

 
9.0

 
9.3

Assumed return on plan assets
(15.7
)
 
(15.7
)
 
(15.3
)
Amortization of net loss
4.6

 
5.4

 
4.9

Curtailment and settlement (gain) loss
—

 
—

 
0.4

Total
$
2.0

 
$
1.3

 
$
2.1



The Company made $6.5 million and $6.3 million in contributions to its plans during 2019 and 2018, respectively. The Company expects to make a contribution to its pension plans of $6.6 million in 2020. The Company anticipates pension expense to be approximately $1.2 million in 2020.

Future service benefits are frozen for all participants under the Company's U.S. defined benefit plan. All benefits earned by affected employees through the effective dates of the freezes have become fully vested with the affected employees eligible to receive benefits upon retirement, as described in the Plan document.
 
Estimated future benefit payments to retirees from the Company's pension plans are as follows: 2020 - $18.0 million, 2021 - $17.7 million, 2022 - $18.4 million, 2023 - $18.2 million, 2024 - $17.9 million, and 2025 - 2029 - $88.4 million.
 
Information regarding pension plans with accumulated benefit obligations in excess of plan assets is as follows:
 
2019
 
2018
 
(Dollars in millions)
U.S. Pension Plans:
 
 
 
Projected benefit obligation
$
275.5

 
$
247.7

Accumulated benefit obligation
$
275.5

 
$
247.7

Fair value of plan assets
$
212.5

 
$
206.9

Non-U.S. Pension Plans:
 
 
 
Projected benefit obligation
$
13.8

 
$
11.8

Accumulated benefit obligation
$
9.9

 
$
8.6

Fair value of plan assets
$
0.6

 
$
0.6



Assumptions
 
Weighted average assumptions used to measure the benefit obligation for the Company’s defined benefit plans as of November 30, 2019 and 2018 were as follows:
 
Pension Plans
 
2019
 
2018
Weighted Average Assumptions:
 
 
 
Discount rate used for liability determination
3.07
%
 
4.41
%
Annual rates of salary increase (non-U.S. plans)
3.39
%
 
3.35
%

Weighted average assumptions used to measure the net periodic benefit cost for the Company’s defined benefit plans as of November 30, 2019, 2018, and 2017 were as follows:
 
Pension Plans
 
2019
 
2018
 
2017
Weighted Average Assumptions:
 
 
 
 
 
Discount rate used for expense determination
4.41
%
 
3.66
%
 
4.12
%
Assumed long-term rate of return on plan assets
7.68
%
 
7.68
%
 
7.68
%
Annual rates of salary increase (non-U.S. plans)
3.35
%
 
3.47
%
 
3.44
%

 
The discount rate used for the liability determination reflects the current rate at which the pension liabilities could be effectively settled at the end of the year. The discount rate used spot rates on a yield curve matching benefit payments to determine the weighted average discount rate that would be applied in determining the benefit obligation at November 30, 2019. The decrease in the discount rate used for liability determination in 2019 is primarily due to a downward shift in the yield curve. The increase in the discount rate used for expense determination in 2019 is due to a general increase in interest rates in the current economic environment. The assumed long-term rate of return on plan assets assumption is based on the weighted average expected return of the various asset classes in the plans’ portfolios. The asset class return is developed using historical asset return performance, as well as current market conditions, such as inflation, interest rates, and equity market performance. The rate of compensation increase is based on management's estimates using historical experience and expected increases in rates.

Pension Plans Assets
 
The Company’s defined benefit plans are funded primarily through asset trusts or through general assets of the Company. The Company employs a total return on investments approach for its U.S. defined benefit pension plan assets. A mix of equity securities, fixed income securities, and collective trusts are used to maximize the long-term rate of return on assets for the level of acceptable risk. Asset allocation at November 30, 2019, target allocation for 2019, and expected long-term rate of return by asset category are as follows:
Asset Category
Target
Allocation
 
Percentage of Plan Assets
At November 30,
2019
2019
 
2018
Equity securities
62
%
 
56
%
 
52
%
Fixed income securities
19
%
 
18
%
 
16
%
Collective trusts and other
19
%
 
26
%
 
32
%
Total
100
%
 
100
%
 
100
%




The following table summarizes, by level within the fair value hierarchy, the U.S. defined benefit plans’ assets at November 30, 2019 and November 30, 2018:
 
 
Total
 
Level 1
 
Level 2
 
Level 3
2019
 
 
 
(Dollars in millions)
 
 
Money market funds
 
$
0.1

 
$
0.1

 
$
—

 
$
—

Registered investment companies:
 
 
 
 
 
 
 
 
Equity mutual funds
 
119.6

 
119.6

 
—

 
—

Fixed income mutual funds
 
37.9

 
37.9

 
—

 
—

Total registered investment companies
 
$
157.6

 
$
157.6

 
$
—

 
$
—

Collective trust funds:
 
 
 
 
 
 
 
 
Core property collective
 
27.6

 
 
 
 
 
 
Structured credit collective
 
26.1

 
 
 
 
 
 
Energy debt collective
 
1.3

 
 
 
 
 
 
Total collective trust funds measured at NAV
 
55.0

 
 
 
 
 
 
 
 
$
212.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
 
 
 
 
 
 
 
Money market funds
 
$
0.1

 
$
0.1

 
$
—

 
$
—

Registered investment companies:
 
 
 
 
 
 
 
 
Equity mutual funds
 
108.4

 
108.4

 
—

 
—

Fixed income mutual funds
 
33.1

 
33.1

 
—

 
—

Total registered investment companies
 
$
141.6

 
$
141.6

 
$
—

 
$
—

Collective trust funds:
 
 
 
 
 
 
 
 
Core property collective
 
25.8

 
 
 
 
 
 
Structured credit collective
 
26.4

 
 
 
 
 
 
Energy debt collective
 
13.1

 
 
 
 
 
 
Total collective trust funds measured at NAV
 
65.3

 
 
 
 
 
 
 
 
$
206.9

 
 
 
 
 
 

 
Money market funds are valued at a net asset value ("NAV") of $1.00 per share held by the plan at year end, which approximates fair value.
Registered investment companies are valued at quoted market prices. The fair value of the participation units owned by the Plan in the collective trust funds are based on the NAV of participating units held by the Plan. Investments in real estate partnerships are valued at the fair value of the underlying assets based on comparable sales value for similar assets, discounted cash flow models, appraisals, and other valuation techniques.

The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although 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 at the reporting date.

A reconciliation of the beginning and ending Level 3 measurements is as follows:
 
Real Estate
Partnerships
 
(Dollars in millions)
Balance November 30, 2017
$
0.3

Redemptions
(0.2
)
Unrealized net gains or losses included in funded status
(0.1
)
Balance November 30, 2018
—

Redemptions
—

Realized net gains or losses included in funded status
—

Balance November 30, 2019
$
—



The following table summarizes the Plan’s investments with a reported NAV, which are measured at NAV as a practical expedient to estimate fair value and are not classified in the fair value hierarchy as of November 30, 2019 and 2018:
 
November 30,
 
2019
 
2018
 
(Dollars in millions)
SEI Structured Credit Collective Fund(a)
$
26.1

 
$
26.4

SEI Energy Debt Collective Investment Trust(b)
$
1.3

 
$
13.1

SEI Core Property Collective Investment Trust(c)
$
27.6

 
$
25.8



(a)
The SEI Structured Credit Collective Fund seeks to provide high general returns by investing in collateralized debt obligations (“CDO’s”) and other structured credit instruments. This fund requires a two-year non-redemption period after which investments can be redeemed at any time; however, a 90 day redemption notification period is required. The Plan has satisfied all funding obligations related to this investment and has surpassed the two-year non-redemption period.
(b)
The SEI Energy Debt Collective Investment Trust seeks to generate high total returns by primarily investing in debt securities of U.S. and international energy companies denominated in U.S. dollars. This trust will invest in investment grade bonds, below investment grade bonds, loans, rights issues, or equities of U.S. companies. Equity investments will be limited. In most cases, equity investments will be attached to a debt investment for extending credit or if received in a restructuring, though the Sub-Adviser is permitted to add-on to an existing equity position through a secondary market transaction.
(c)
The SEI Core Property Collective Investment Trust, seeks both current income and long-term capital appreciation through investing in underlying funds that acquire, manage, and dispose of commercial real estate properties. This trust expects to invest at least 85% of its assets in open-end core underlying funds focused on properties in the U.S. with "core" meaning high-quality, low-leveraged, income-generating office, industrial, retail, and multi-family properties, generally fully-leased to credit-worthy companies and governmental entities. Up to 5% of this trust's net assets may be invested in liquid real estate strategies (publicly-traded REITs) for cash management purposes and the fund may have up to a 15% allocation to non-core sectors and strategies.

Defined Contribution Plans
The Company also sponsors a defined contribution 401(k) plan. Participation in this plan is available to substantially all U.S. salaried employees and to certain groups of U.S. hourly employees. Company contributions to this plan are based on either a percentage of employee contributions or on a specified amount per hour based on the provisions of the applicable collective bargaining agreement. Contribution expense to this plan was approximately $2.5 million in 2019, $2.6 million in 2018, and $2.6 million in 2017. The defined contribution 401(k) plan contained approximately 0.6 million and 0.7 million of the Company's common shares at November 30, 2019 and November 30, 2018, respectively.

Health Care Plans
The Company provides retiree medical plans for certain retired U.S. employees of which there were 46 retired participants as of November 30, 2019. The plan is frozen to new participants. The plans generally provide for cost sharing in the form of retiree contributions, deductibles, and coinsurance between the Company and its retirees, and a fixed cost cap on the amount the Company pays annually to provide future retiree medical coverage. For 2019, the Company reduced its exposure to liability under these plans by fully insuring benefits for a significant number of plan participants. For the remaining participants, these post-retirement benefits are unfunded. All benefits were accrued by the date the employee become eligible for benefits. Retirees in certain other countries are provided similar benefits by plans sponsored by local governments.

Changes in benefit obligations are as follows:
 
2019
 
2018
 
(Dollars in millions)
Change in Benefit Obligation:
 
 
 
Benefit obligation at beginning of year
$
5.9

 
$
6.9

Interest cost
0.2

 
0.2

Actuarial (gain) loss
0.4

 
(0.4
)
Benefits paid net of retiree contributions
(0.6
)
 
(0.8
)
Benefit Obligation at End of Year
5.9

 
5.9

 
 
 
 
Change in Plan Assets:
 
 
 
Fair value of plan assets at beginning of year
—

 
—

Employer contributions
0.7

 
0.8

Benefits and expenses paid, net of retiree contributions
(0.7
)
 
(0.8
)
Fair Value of Plan Assets at End of Year
—

 
—

Funded Status at November 30
$
(5.9
)
 
$
(5.9
)
 
 
 
 
Amounts Recognized in the Consolidated Balance Sheets:
 
 
 
Current liability
(0.6
)
 
(0.6
)
Non-current liability
(5.3
)
 
(5.3
)
Net Amount Recognized
$
(5.9
)
 
$
(5.9
)


As of November 30, 2019 and 2018, the amounts included in Accumulated Other Comprehensive Income (Loss) that have not been recognized in net periodic benefit cost consist of:
 
 
2019
 
2018
 
(Dollars in millions)
Net actuarial gain
$
8.6

 
$
10.6

Prior service credit
$
0.2

 
$
—


    
The after-tax amount of unrecognized net actuarial gain at November 30, 2019 was $14.0 million. The estimated net gain for post-retirement health care plans that will be amortized from Accumulated Other Comprehensive Loss during 2020 is $0.8 million.

Net periodic benefit cost (income) consisted of the following for the years ended, November 30:
 
2019
 
2018
 
2017
 
(Dollars in millions)
Interest costs on benefit obligation
$
0.2

 
$
0.2

 
$
0.2

Amortization of net gain
(1.3
)
 
(0.9
)
 
(1.0
)
Total
$
(1.1
)
 
$
(0.7
)
 
$
(0.8
)


Estimated future benefit payments for the retiree health care plans are as follows:
 
Benefit
Payments
 
(Dollars in millions)
2020
$
0.6

2021
0.6

2022
0.5

2023
0.5

2024
0.5

2025 - 2029
2.0


 
The Company expects to record non-cash retiree medical health care reduction of expenses of approximately $0.6 million in 2020.
 
 
Assumptions 
 
2019
 
2018
 
2017
Weighted Average Assumptions:
 
 
 
 
 
Discount rate used for liability determination
3.00
%
 
4.41
%
 
3.62
%
Discount rate used for expense determination
4.41
%
 
3.62
%
 
4.00
%
Current health care cost trend rate assumed for the next year
6.60
%
 
7.10
%
 
7.60
%
Ultimate trend rate for health care costs
4.50
%
 
4.50
%
 
4.50
%
Year reached
2037

 
2037

 
2037


 
The discount rate reflects the current rate at which the retiree medical liabilities could be effectively settled at the end of the year. The discount rate used spot rates on a yield curve matching benefit payments to determine the weighted average discount rate that would be applied in determining the benefit obligation at November 30, 2019. Because the Company’s retiree health care benefits are capped, assumed health care cost trend rates have a minimal effect on the amounts reported for the retiree health care plans. A 1% increase or decrease in the current health care cost trend rate would have an impact of less than $0.1 million on net periodic cost and the benefit obligation.