Retirement Benefits

9 Months Ended

Jun. 30, 2020

RETIREMENT BENEFITS

The components of net periodic benefit cost for our defined benefit pension plans for the three and nine months ended 30 June 2020 and 2019 were as follows:


	Pension Benefits
	2020			2019
Three Months Ended 30 June	U.S.	International	U.S.	International
Service cost	$5.9	$5.7	$5.4	$4.8
Interest cost	22.9	6.0	28.2	9.0
Expected return on plan assets	(47.2)	(18.8)	(43.2)	(18.9)
Prior service cost amortization	0.3	—	0.3	—
Actuarial loss amortization	20.9	4.7	16.3	2.7

Settlements	0.3	—	0.3	—

Special termination benefits	—	—	—	—
Other	—	0.2	—	0.2
Net Periodic (Benefit) Cost	$3.1	($2.2)	$7.3	($2.2)



	Pension Benefits
	2020			2019
Nine Months Ended 30 June	U.S.	International	U.S.	International
Service cost	$17.5	$17.4	$16.1	$14.6
Interest cost	68.5	18.4	85.0	27.0
Expected return on plan assets	(141.6)	(57.7)	(129.4)	(57.0)
Prior service cost amortization	0.9	—	0.9	0.1
Actuarial loss amortization	62.9	14.5	48.9	8.3

Settlements	1.8	—	6.1	0.2

Special termination benefits	—	—	0.7	—
Other	—	0.6	—	0.6
Net Periodic (Benefit) Cost	$10.0	($6.8)	$28.3	($6.2)

Our service costs are primarily included within "Cost of sales" and "Selling and administrative" on our consolidated income statements. The amount of service costs capitalized in the first nine months of fiscal years 2020 and 2019 were not material. The non-service related costs, including pension settlement losses, are presented outside operating income within "Other non-operating income (expense), net."

For the nine months ended 30 June 2020 and 2019, our cash contributions to funded pension plans and benefit payments under unfunded pension plans were $24.6 and $31.0, respectively. Total contributions for fiscal year 2020 are expected to be approximately $30 to $40. During fiscal year 2019, total contributions were $40.2.

Certain of our pension plans provide for a lump sum benefit payment option at the time of retirement, or for corporate officers, six months after their retirement date. A participant’s vested benefit is considered settled upon cash payment of the lump sum. We recognize pension settlement losses when cash payments exceed the sum of the service and interest cost components of net periodic benefit cost of the plan for the fiscal year. For the nine months ended 30 June 2020 and 2019, we recognized pension settlement losses of $1.8 and $6.3, respectively, to accelerate recognition of a portion of actuarial losses deferred in accumulated other comprehensive loss, primarily associated with the U.S. supplementary pension plan.

U.K. Lloyds Pensions Equalization Ruling On 26 October 2018, the United Kingdom High Court issued a ruling related to the equalization of pension plan participants’ benefits for the gender effects of Guaranteed Minimum Pensions. As a result of this ruling, we estimated the impact of retroactively increasing benefits in our U.K. plan in accordance with the High Court ruling. We treated the additional benefits as a prior service cost, which resulted in an increase to our projected benefit obligation and accumulated other comprehensive loss of $4.7 during the first quarter of fiscal year 2019. We are amortizing this cost over the average remaining life expectancy of the U.K. participants.