Pension and Other Postretirement Benefits

9 Months Ended

Mar. 31, 2021

Retirement Benefits [Abstract]

Pension and Other Postretirement Benefits

Pension and Other Postretirement Benefits

The components of the net periodic benefit cost related to the Company’s pension and other postretirement benefits for the three and nine months ended March 31, 2021 and 2020 were as follows:

Three months ended March 31,	Pension Plans				Other Postretirement Plans
($ in millions)	2021		2020		2021		2020
Service cost	$	2.4	$	2.4	$	0.7	$	0.7
Interest cost	9.8		11.7		1.9		2.3
Expected return on plan assets	(14.1)		(15.5)		(1.6)		(1.8)
Amortization of net loss	3.8		3.9		0.9		0.6
Amortization of prior service cost (benefit)	0.5		0.5		(1.0)		(1.0)
Settlement charge	8.9		—		—		—
Net periodic benefit costs	$	11.3	$	3.0	$	0.9	$	0.8

Nine months ended March 31,	Pension Plans				Other Postretirement Plans
($ in millions)	2021		2020		2021		2020
Service cost	$	7.2	$	7.3	$	2.0	$	2.0
Interest cost	29.6		35.1		5.8		6.8
Expected return on plan assets	(41.9)		(46.6)		(4.8)		(5.3)
Amortization of net loss	12.4		11.6		2.7		1.9
Amortization of prior service cost (benefit)	1.5		1.6		(3.1)		(2.9)
Settlement charge	8.9		—		—		—
Net periodic benefit costs	$	17.7	$	9.0	$	2.6	$	2.5

In the quarter ended March 31, 2021, the Company evaluated the need for settlement accounting under Accounting Standards Codification (“ASC”) 715-30-35-82 based on the higher than normal lump-sum payments made during the current fiscal year in the Company's largest defined benefit plan. The Company determined that it was probable the lump-sum payments would exceed the threshold of service cost and interest cost components and settlement accounting was required. The Company recorded a settlement charge of $8.9 million in the quarter ended March 31, 2021 within other expense, net. The settlement triggered a remeasurement for the affected benefit plan in the quarter ended March 31, 2021 using a weighted average discount rate of 3.21 percent compared to the rate of 3.02 percent utilized at June 30, 2020. The impact of the remeasurement reduced the anticipated full fiscal year net periodic benefit costs by $3.1 million of which $0.8 million was recognized within pension earnings, interest and deferrals in the current quarter. The remeasurement also resulted in a reduction of accrued pension liabilities and accumulated other comprehensive loss of $116.7 million based on the current discount rate and better than anticipated investment returns.

During the nine months ended March 31, 2021 and 2020, the Company made $10.9 million and $4.9 million, respectively, of contributions to its qualified defined benefit pension plans. The Company currently expects to contribute $9.0 million to its qualified defined benefit pension plans during the remainder of fiscal year 2021.