Retirement Benefits (Tables)

12 Months Ended

Sep. 28, 2018

Principal Assumptions of Esterline, CMC and Other Non-U.S. Plans

Principal assumptions of the Esterline, CMC and other non-U.S. plans are as follows:

	Esterline U.S.				CMC				Other Non-U.S.
	Defined Benefit				Defined Benefit				Defined Benefit
	Pension Plans				Pension Plans				Pension Plans
	2018			2017	2018			2017	2018	2017
Principal assumptions as of year end:
Discount rate		4.35	%	3.75%		3.84	%	3.76%	1.50 - 9.75%	1.40 - 8.75%
Rate of increase in future    compensation levels		4.48	%	4.48%		2.75	%	2.75%	3.20 - 10.31%	2.96 - 10.29%
Assumed long-term rate of    return on plan assets		7.00	%	7.00%		5.34	%	5.19%	3.00 - 7.50%	3.25 - 8.25%

	Esterline U.S.				CMC
	Post-Retirement				Post-Retirement
	Pension Plans				Pension Plans
	2018			2017	2018			2017
Principal assumptions as of year end:
Discount rate		4.35	%	3.75%		3.48	%	3.51%
Initial weighted average health care trend rate		6.00	%	6.00%		5.70	%	5.80%
Ultimate weighted average health care trend rate		6.00	%	6.00%		4.10	%	4.10%

Allocations By Investment Type

Allocations by investment type are as follows:

		Actual
	Target	2018			2017
Plan assets allocation as of fiscal year end:
Equity securities	35 - 70%		59.5	%		58.4	%
Debt securities	30 - 65%		33.9	%		35.3	%
Cash	0%		6.6	%		6.3	%
Total			100.0	%		100.0	%

Net Periodic Pension Cost for Defined Benefit Plans

Net periodic pension cost for the Company’s defined benefit plans at the end of each fiscal year consisted of the following:

In Thousands	Defined Benefit									Post-Retirement
	Pension Plans									Benefit Plans
	2018			2017			2016			2018			2017			2016
Components of Net Periodic Cost
Service cost	$	15,790		$	15,108		$	12,861		$	361		$	385		$	342
Interest cost		17,057			15,553			18,095			402			335			473
Expected return on plan assets		(27,918	)		(25,866	)		(24,491	)		-			-			-
Settlement		-			21			2			-			-			-
Amortization of prior service cost		499			490			487			(5	)		(5	)		(17	)
Amortization of actuarial    (gain) loss		3,275			7,643			6,590			-			-			-
Net periodic cost (benefit)	$	8,703		$	12,949		$	13,544		$	758		$	715		$	798

Funded Status of Defined Benefit Pension and Post-Retirement Plans

The funded status of the defined benefit pension and post-retirement plans at the end of fiscal 2018 and 2017 were as follows:

In Thousands	Defined Benefit						Post-Retirement
	Pension Plans						Benefit Plans
	2018			2017			2018			2017
Benefit Obligations
Beginning balance	$	509,256		$	505,298		$	13,542		$	13,236
Currency translation adjustment		(5,735	)		9,340			(450	)		665
Service cost		15,790			15,108			361			385
Interest cost		17,057			15,553			402			335
Plan participants contributions		553			318			-			-
Actuarial (gain) loss		(16,124	)		(11,420	)		(349	)		(529	)
Other adjustments		(230	)		(1,254	)		-			-
Benefits paid		(25,180	)		(23,687	)		(586	)		(550	)
Ending balance	$	495,387		$	509,256		$	12,920		$	13,542
Plan Assets - Fair Value
Beginning balance	$	457,575		$	425,781		$	-		$	-
Currency translation adjustment		(5,297	)		8,170			-			-
Realized and unrealized gain (loss) on plan assets		33,859			41,566			-			-
Plan participants contributions		553			318			-			-
Company contribution		9,086			6,681			586			550
Other adjustments		474			-			-			-
Expenses paid		(1,269	)		(1,254	)		-			-
Benefits paid		(25,180	)		(23,687	)		(586	)		(550	)
Ending balance	$	469,801		$	457,575		$	-		$	-
Funded Status
Fair value of plan assets	$	469,801		$	457,575		$	-		$	-
Benefit obligations		(495,387	)		(509,256	)		(12,920	)		(13,542	)
Net amount recognized	$	(25,586	)	$	(51,681	)	$	(12,920	)	$	(13,542	)
Amount Recognized in the Consolidated Balance Sheet
Non-current asset	$	22,776		$	4,267		$	-		$	-
Current liability		(2,795	)		(1,840	)		(732	)		(669	)
Non-current liability		(45,567	)		(54,108	)		(12,188	)		(12,873	)
Net amount recognized	$	(25,586	)	$	(51,681	)	$	(12,920	)	$	(13,542	)
Amounts Recognized in Accumulated Other Comprehensive Income
Net actuarial loss (gain)	$	52,659		$	78,713		$	118		$	476
Prior service cost		3,040			2,593			-			-
Ending balance	$	55,699		$	81,306		$	118		$	476

Estimated Future Benefit Payments Expected to be Paid from Pension and Post-retirement Benefit Plans or from Assets

Estimated future benefit payments expected to be paid from the pension and post-retirement benefit plans or from the Company’s assets are as follows:

In Thousands
Fiscal Year
2019	$	30,199
2020		31,062
2021		33,024
2022		33,647
2023		35,142
2024 - 2028		183,504

Pension Plan

Allocations By Investment Type

The following table presents the fair value of the Company’s Pension Plan assets as of September 28, 2018, by asset category segregated by level within the fair value hierarchy, as described in Note 8.

In Thousands	Fair Value Hierarchy
	Level 1		Level 2		Total
Asset category:
Equity Funds:
Registered Investment Company Funds - U.S. Equity	$	121,689	$	-	$	121,689
U.S. Equity Securities		61,227		-		61,227
Non-U.S. Equity Securities		47,505		-		47,505
Commingled Trust Funds - Non-U.S. Securities		-		48,983		48,983
Fixed Income Securities:
Commingled Trust Funds - Fixed Income		-		81,081		81,081
Non-U.S. Foreign Commercial and Government Bonds		-		78,379		78,379
Cash and Cash Equivalents		30,937		-		30,937
Total	$	261,358	$	208,443	$	469,801

The following table presents the fair value of the Company’s Pension Plan assets as of September 29, 2017, by asset category segregated by level within the fair value hierarchy, as described in Note 8.

In Thousands	Fair Value Hierarchy
	Level 1		Level 2		Total
Asset category:
Equity Funds:
Registered Investment Company Funds - U.S. Equity	$	113,997	$	-	$	113,997
U.S. Equity Securities		54,640		-		54,640
Non-U.S. Equity Securities		50,395		-		50,395
Commingled Trust Funds - Non-U.S. Securities		-		48,377		48,377
Fixed Income Securities:
Commingled Trust Funds - Fixed Income		-		83,387		83,387
Non-U.S. Foreign Commercial and Government Bonds		-		77,931		77,931
Cash and Cash Equivalents		28,848		-		28,848
Total	$	247,880	$	209,695	$	457,575