Retirement and Postretirement Plans

6 Months Ended

Mar. 31, 2020

Retirement and Postretirement Plans We sponsor six defined benefit retirement plans. Those plans include a master defined benefit retirement plan in the United States, a nonqualified supplemental executive defined benefit retirement plan, three defined benefit retirement plans covering employees in Germany and France, and a defined benefit retirement plan of Excel Medical that was acquired on January 10, 2020. Benefits for such plans are based primarily on years of service and the employee’s level of compensation in specific periods of employment. We contribute funds to trusts as necessary to provide for current service and for any unfunded projected future benefit obligation over a reasonable period of time. All of our plans have a September 30 measurement date. The following table details the components of net pension expense for our defined benefit retirement plans.


	Three Months Ended March 31						Six Months Ended March 31			Condensed Consolidated Statements of Income Item
	2020		2019		2020		2019
Service cost	$	0.4	$	0.4	$	0.8	$	0.7	Cost of goods sold
Service cost	0.8		0.7		1.6		1.5		Selling and administrative expenses
Interest cost	2.4		3.2		4.9		6.3		Investment income (expense) and other, net
Expected return on plan assets	(3.7)		(3.7)		(7.4)		(7.4)		Investment income (expense) and other, net
Amortization of unrecognized prior service cost, net	—		—		0.1		—		Investment income (expense) and other, net
Amortization of net loss	1.6		0.6		3.1		1.2		Investment income (expense) and other, net
Settlement charge	8.5		—		8.5		—		Investment income (expense) and other, net
Net pension expense	$	10.0	$	1.2	$	11.6	$	2.3

In addition to defined benefit retirement plans, we also offer two postretirement health care plans in the United States that provide health care benefits to qualified retirees and their dependents. The plans are closed to new participants and include retiree cost sharing provisions and generally extend retiree coverage for medical and prescription benefits beyond the COBRA continuation period to the date of Medicare eligibility. Annual costs related to these plans are not significant.

On March 9, 2020, we transferred pension assets totaling $40.6 million to purchase annuity contracts for a certain population of retirees with a third-party insurance company. As a result, we recognized a non-cash settlement loss of $8.5 million, which is recorded as a component of Investment income (expense) and other, net in the Condensed Consolidated Statements of Income.

We have defined contribution savings plans that cover substantially all U.S. employees and certain non-U.S. employees. The general purpose of these plans is to provide additional financial security in retirement by providing employees with an incentive to regularly save a portion of their earnings. Our contributions to the plans are based on eligibility and, in some cases, employee contributions. Expense under these plans was $10.1 million and $16.3 million for the three and six months ended March 31, 2020, and $8.3 million and $14.5 million for the three and six months ended March 31, 2019.