Employee Benefit Plans

12 Months Ended

Sep. 30, 2021

Employee Benefit Plans

Defined Benefit Plans

The Company maintains multiple employee benefit plans.

Certain of the Company’s employees in the UK were participants in a Siemen’s defined benefit plan established for employees of a UK-based operation acquired by Siemens in 2004. The plan was frozen with respect to future service credits for active employees, however the benefit formula recognized future compensation increases. The Company agreed to establish a replacement defined benefit plan, with the assets of the Siemens scheme transferring to the new scheme on April 1, 2015.

Certain of the Company’s employees in Germany also participate in a defined benefit plan. Assets equaling the plan’s accumulated benefit obligation were transferred to a German defined benefit plan sponsored by the Company upon the acquisition of EWT from Siemens. The German entity also sponsors a defined benefit plan for a small group of employees located in France.

The changes in projected benefit obligations, plan assets and the funded status of the UK and German defined benefit plans as of and for the years ended September 30, 2021 and 2020, respectively, are as follows:


	2021		2020
Change in projected benefit obligation
Projected benefit obligation at prior year measurement date	$	47,389	$	42,948
Service cost	1,156		1,125
Interest cost	482		492
Actuarial (gains) losses	(2,312)		5
Benefits paid from company assets	(738)		(173)

Foreign currency exchange impact	36		2,992
Projected benefit obligation at measurement date	$	46,013	$	47,389
Change in plan assets
Fair value of assets at prior year measurement date	27,530		25,525
Actual return on plan assets	971		205
Benefits paid	(515)		(60)
Employer contribution	258		255
Foreign currency exchange impact	394		1,605
Fair value of assets at measurement date	$	28,638	$	27,530
Funded status and amount recognized in assets and liabilities	$	(17,375)	$	(19,859)
Amount recognized in assets and liabilities
Other non‑current assets	$	2,960	$	2,831
Other non‑current liabilities	$	(20,335)	$	(22,690)
Amount recognized in accumulated other comprehensive loss, before taxes
Actuarial loss	$	7,071	$	11,235

The following table provides summary information for the UK and German plans where the projected benefit obligation is in excess of plan assets:


	September 30, 2021		September 30, 2020
Projected benefit obligation	$	46,013	$	47,389
Accumulated benefit obligation	$	24,578	$	25,489
Fair value of plan assets	$	28,638	$	27,530

The weighted average assumptions in the following table represent the rates used to develop the actuarial present value of the projected benefit obligation for the year indicated as well as net periodic pension cost for the following year. The discount rate is based on settling the obligation with high grade, high yield corporate bonds, and the rate of compensation increase is based upon actual experience. The expected return on assets is based on historical performance as well as expected future rates of return on plan assets considering the current investment portfolio mix and the long‑term investment strategy.


	2021	2020
Discount rate	1.00% - 2.03%	0.80% - 1.97%
Expected long‑term rate of return on plan assets	1.97% - 3.50%	1.98% - 2.40%
Salary scale	2.25% - 4.36%	2.25% - 4.44%
Pension increases	1.00% - 3.27%	1.00% - 2.99%

The Plan trustees for the UK and German pension plans have established investment policies and strategies. The UK Pension Committee established and implemented a liability driven investment approach to take advantage of, and seeking to protect, its well‑funded status. The German investment strategy is to close the current funding gap by taking a risk-balanced growth approach through investing assets in marketable securities.

Through a trust arrangement, the German plan assets are held in a global multi-asset fund.

The actual overall asset allocation for the UK pension plan as compared to the investment policy goals as of September 30, 2021 was as follows by asset category:


	2021 Actual		2021 Target
Equity	17.8	%	—	%
Index‑linked gilts	76.0	%	70	%
Cash	6.2	%	30	%

Pension expense for the German and UK plans were as follows:


	Year Ended September 30,
	2021		2020		2019
Service cost	$	1,156	$	1,125	$	898
Interest cost	482		492		699
Expected return on plan assets	(615)		(387)		(440)
Amortization of actuarial losses	1,042		1006		371
Pension expense for defined benefit plans	$	2,065	$	2,236	$	1,528

The components of pension expense, other than the service cost component, which is included in General and administrative expense, are included in the line item Other operating expense in the Consolidated Statements of Operations.

Benefits expected to be paid to participants of the plans are as follows:


Year Ended September 30,
2022	$	680
2023	530
2024	606
2025	727
2026	1,001
Five years thereafter	7,261
Total	$	10,805

Defined Contribution Plans

The Company maintains a defined contribution 401(k) plan, which covers all U.S.-based employees who meet minimum age and length of service requirements. Plan participants can elect to defer pre-tax compensation through payroll deductions. These deferrals are regulated under Section 401(k) of the Internal Revenue Code. Prior to January 1, 2021, the Company matched 100% of eligible participants’ deferrals that did not exceed 6% of their pay. Effective January 1, 2021, the Company matches 100% of eligible participants’ deferrals that do not exceed 4% of their pay. Also, effective January 1, 2021, the Company may make a discretionary profit sharing contribution of up to 4% of each plan participant’s compensation. All such contributions are subject to limitations imposed by the Internal Revenue Code. The Company’s total contributions were $16,559, $14,243, and $14,533 for the years ended September 30, 2021, 2020 and 2019, respectively.

Employees in the UK and Germany also participate in a defined contribution plan maintained by the Company. For the years ended September 30, 2021, 2020 and 2019, contributions made to the Company’s plan in the UK and Germany were $919, $1,021, and $796, respectively.

Deferred Compensation

On April 1, 2014, the Company adopted a non-qualified deferred compensation plan for certain highly compensated employees. The Plan matches, on a dollar-for-dollar basis, up to the first 6% of a participant’s pay. The Company’s obligation under the plan represents an unsecured promise to pay benefits in the future. In the event of bankruptcy or insolvency of the Company, assets of the plan would be available to satisfy the claims of general creditors. To increase the security of the participants’ deferred compensation plan benefits, the Company has established and funded a grantor trust (known as a rabbi trust). The rabbi trust is specifically designed so that assets are available to pay plan benefits to participants in the event the Company is unwilling or unable to pay the plan benefits for any reason other than bankruptcy or insolvency. As a result, the Company is prevented from withdrawing or accessing assets for corporate needs. Plan participants choose to receive a return on their account balances equal to the return on the various investment options. The rabbi trust assets are primarily invested in mutual funds and insurance contracts of which the rabbi trust is the owner and beneficiary.

Health Benefit Plan

The Company maintains a qualified employee health benefit plan in the U.S. and is self‑funded by the Company with respect to claims up to a certain amount. The plan requires contributions from eligible employees and their dependents.