Employee Benefit Plans

9 Months Ended

Apr. 30, 2022

Retirement Benefits, Description [Abstract]

Employee Benefit Plans

Employee Benefit Plans

The Company has defined benefit pension plans for certain 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, 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 April 30,				Nine Months Ended April 30,
	2022		2021		2022		2021
Service cost	$	1.8	$	2.0	$	5.4	$	6.1
Interest cost	2.4		2.5		7.4		7.4
Expected return on assets	(6.2)		(5.9)		(18.7)		(17.6)
Prior service cost amortization	0.1		0.1		0.2		0.4
Actuarial loss amortization	1.8		2.1		5.4		6.2
Settlement charge	1.1		1.1		2.3		1.1
Curtailment charge	—		—		—		0.8
Net periodic pension costs	$	1.0	$	1.9	$	2.0	$	4.4

In the second and third quarters of fiscal 2022, the Company recorded pension settlement charges of $1.2 million and $1.1 million, respectively, as a result of lump sum distributions exceeding the service and interest cost components of the annual net periodic pension cost. The corresponding remeasurements resulted in a decrease in the Company’s net pension assets and a corresponding adjustment to other comprehensive loss in the Condensed Consolidated Statement of Comprehensive Income of $1.7 million and $7.6 million in the second and third quarters of fiscal 2022, respectively. 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 pension benefits to certain employees. Additionally, in the third quarter of fiscal 2021, the Company recorded a pension settlement charge of $1.1 million as a result of lump sum distributions exceeding the service and interest cost components of the annual net periodic pension cost. The corresponding remeasurements resulted in an increase in the Company’s net pension assets, as well as a corresponding adjustment to other comprehensive loss in the Condensed Consolidated Statement of Comprehensive Income of $25.4 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.