Employee Benefit Plans

6 Months Ended

Jan. 31, 2022

Retirement Benefits, Description [Abstract]

Employee Benefit Plans

Employee Benefit Plans

The Company has defined benefit pension plans for many of its hourly and salaried employees. These plans generally provide pension benefits based on years of service and compensation level. Components of net periodic pension costs other than the service cost component are included in other (income) expense, net in the Condensed Consolidated Statements of Earnings.

Net periodic pension costs for the Company’s pension plans were as follows (in millions):

	Three Months Ended January 31,				Six Months Ended January 31,
	2022		2021		2022		2021
Service cost	$	1.8	$	1.8	$	3.6	$	4.0
Interest cost	2.5		2.5		5.0		4.9
Expected return on assets	(6.2)		(5.8)		(12.5)		(11.5)
Prior service cost amortization	—		0.1		0.1		0.2
Actuarial loss amortization	1.8		1.9		3.6		4.1
Settlement charge	1.2		—		1.2		—
Curtailment charge	—		—		—		0.8
Net periodic pension costs	$	1.1	$	0.5	$	1.0	$	2.5

In the second quarter of fiscal 2022, the Company recorded a pension settlement charge of $1.2 million as a result of lump sum distributions exceeding the service and interest cost components of the annual net periodic pension cost. The corresponding remeasurement resulted in a decrease in the Company’s pension assets and a corresponding adjustment to other comprehensive loss in the Condensed Consolidated Statement of Comprehensive Income of $1.7 million. See Note 11.

In the first quarter of fiscal 2021, the Company recorded a pension curtailment charge of $0.8 million as a result of freezing the pension benefits to certain employees. The corresponding remeasurement resulted in a decrease in the Company’s pension obligation and a corresponding adjustment to other comprehensive income in the Condensed Consolidated Statement of Comprehensive Income of $4.0 million. See Note 11.

The Company’s general funding policy is to make at least the minimum required contributions as required by applicable regulations, plus any additional amounts it determines to be appropriate. Future required pension plan contributions may change significantly depending on the actual rate of return on plan assets, discount rates and regulatory requirements.