The Company has various defined benefit pension plans covering some of its employees. Plans generally provide benefits of stated amounts for each year of service. The Company funds its pension plans in accordance with the requirements of the defined benefit pension plans and, where applicable, in amounts sufficient to satisfy the minimum funding requirements of applicable laws. Additionally, in compliance with the Company’s funding policy, annual contributions to defined benefit plans are equal to the actuarial recommendations or statutory requirements in the respective countries. The Company sponsors or participates in a number of other non-U.S. pension arrangements, including various retirement and termination benefit plans, some of which are covered by local law or coordinated with government-sponsored plans, which are not significant in the aggregate. The following tables provide additional information on the pension plans as of September 30, 2019 and 2018:


	U.S. Plans				Non U.S. Plans
(in millions)	2019		2018		2019		2018
Changes in benefit obligation:
Benefit obligation, beginning of year	$	70.5	$	75.3	$	148.9	$	149.8
Service cost		0.4		0.4		1.9		2.0
Interest cost		2.8		2.7		3.4		3.6
Actuarial loss (gain)		10.3		(4.2)		27.5		1.5
Plan Amendments		—		—		0.2		—
Benefits paid		(3.8)		(3.7)		(5.9)		(5.3)
Foreign currency exchange rate changes		—		—		(8.2)		(2.7)
Benefit obligation, end of year		80.2		70.5		167.8		148.9
Changes in plan assets:
Fair value of plan assets, beginning of year		69.3		68.9		115.8		115.9
Actual return on plan assets		2.7		3.7		13.5		1.9
Employer contributions		0.4		0.4		3.1		5.6
Benefits paid		(3.8)		(3.7)		(5.9)		(5.3)
Foreign currency exchange rate changes		—		—		(6.5)		(2.3)
Fair value of plan assets, end of year		68.6		69.3		120.0		115.8
Funded Status	$	(11.6)	$	(1.2)	$	(47.8)	$	(33.1)
Amounts recognized in statement of financial position
Deferred charges and other	$	—	$	0.1	$	3.0	$	3.2
Other accrued expenses		0.3		0.4		0.5		0.4
Other long-term liabilities		11.3		0.9		50.3		35.9
Accumulated other comprehensive loss		19.3		7.5		49.9		35.8
Weighted average assumptions
Discount rate		3.04%		4.10%		0.75 - 7.70%		1.00 - 8.30%
Rate of compensation increase		N/A		N/A		2.25 - 6.00%		2.25 - 7.00%

The net loss in Accumulated Other Comprehensive Loss expected to be recognized in continuing operations during the year ended September 30, 2020 is $4.3 million.

The following table contains the components of net periodic benefit cost from defined benefit plans for the years ended September 30, 2019, 2018 and 2017:


	U.S. Plans						Non U.S. Plans
(in millions)	2019		2018		2017		2019		2018		2017
Service cost	$	0.4	$	0.4	$	0.4	$	1.9	$	2.0	$	2.5
Interest cost		2.8		2.7		2.7		3.4		3.6		3.3
Expected return on assets		(4.4)		(4.5)		(4.4)		(3.9)		(4.2)		(4.1)
Settlements and curtailments		—		—		—		0.3		0.1		0.3
Recognized net actuarial loss		0.2		1.1		1.6		1.8		1.4		2.7
Net periodic benefit cost	$	(1.0)	$	(0.3)	$	0.3	$	3.5	$	2.9	$	4.7
Weighted average assumptions
Discount rate	4.10%		3.70%		3.50%		1.00 - 8.30%		1.13 - 7.50%		1.00 - 8.68%
Expected return on plan assets	6.50%		7.00%		7.00%		1.00 - 4.01%		1.13 - 4.13%		1.00 - 3.70%
Rate of compensation increase	N/A		N/A		N/A		2.25 - 7.00%		1.37 - 7.00%		2.25 - 7.00%

The discount rate is used to calculate the projected benefit obligation. The discount rate used is based on the rate of return on government bonds as well as current market conditions of the respective countries where the plans are established. The expected return on plan assets is based on the Company’s expectation of the long-term average rate of return of the capital market in which the plans invest. The expected return reflects the target asset allocations and considers the historical returns earned for each asset category.

The Company established formal investment policies for the assets associated with these plans. Policy objectives include maximizing long-term return at acceptable risk levels, diversifying among asset classes, if appropriate, and among investment managers, as well as establishing relevant risk parameters within each asset class. Specific asset class targets are based on the results of periodic asset/liability studies. The investment policies permit variances from the targets within certain parameters. The plan assets currently do not include holdings of the Company’s common stock.

Below is a summary allocation of defined benefit plan assets as of September 30, 2019 and 2018:


	U.S. Plans				Non U.S. Plans
Asset Type	2019		2018		2019		2018
Equity Securities	62	%	63	%	—	%	—	%
Fixed Income Securities	35	%	33	%	20	%	19	%
Other	3	%	4	%	80	%	81	%
Total	100	%	100	%	100	%	100	%

The fair value of defined benefit plan assets by asset category as of September 30, 2019 and 2018 are as follows:


	September 30, 2019								September 30, 2018
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Cash & cash equivalents	$	8.3	$	—	$	—	$	8.3	$	8.4	$	—	$	—	$	8.4
Equity		16.8		13.1		—		29.9		20.5		5.1		—		25.6
Fixed income securities		21.6		—		—		21.6		21.0		—		—		21.0
Foreign equity		11.4		—		—		11.4		17.4		—		—		17.4
Foreign fixed income securities		2.1		23.6		—		25.7		2.1		21.9		—		24.0
Life insurance contracts		—		37.4		—		37.4		—		38.7		—		38.7
Other		2.2		52.1		—		54.3		2.5		47.5		—		50.0
Total plan assets	$	62.4	$	126.2	$	—	$	188.6	$	71.9	$	113.2	$	—	$	185.1

HRG had a noncontributory defined benefit pension plan (the “HRG Pension Plan”) covering certain of its former U.S. employees, which has been frozen and all existing participants are fully vested in their benefits. On November 15, 2017, HRG’s Board of Directors approved the termination of the HRG Pension Plan. The HRG Pension Plan’s termination date was February 15, 2018. The Company has purchased annuity contracts and settled all outstanding obligations with the HRG Pension Plan. As of September 30, 2019, and 2018, there is no outstanding projected benefit obligation for the HRG Pension Plan.

Additionally, HRG has an unfunded supplemental pension plan (the “HRG Supplemental Plan”) which provides supplemental retirement payments to certain former senior executives of HRG. The amounts of such payments equal the difference between the amounts received under the HRG Pension Plan and the amounts that would otherwise be received if HRG Pension Plan payments were not reduced as the result of the limitations upon compensation and benefits imposed by Federal law. Effective December 1994, the HRG Supplemental Plan was frozen.