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Employee Benefit Plans
 12 Months Ended
Oct. 02, 2021
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]  
Employee Benefit Plans Employee Benefit Plans
We maintain multiple employee benefit plans, covering employees at certain locations.
Our qualified U.S. defined benefit pension plan is not open to new entrants. New employees are not eligible to participate in the pension plan. Instead, we make contributions for those employees to an employee-directed investment fund in the Moog Inc. Retirement Savings Plan ("RSP"), which consists of two defined contribution options, the RSP and the RSP(+). Effective January 1, 2020, all employees hired prior to January 1, 2019 are eligible to either participate in the new RSP(+) or remain in the existing RSP. All employees hired after January 1, 2019 are automatically enrolled in the new RSP(+). The Company’s contributions to both the RSP and RSP(+) are based on a percentage of the employee’s eligible compensation and age and are in addition to the employer match on voluntary employee contributions. The Company's contributions and the employer match were both enhanced under the new RSP(+).
The RSP and RSP(+) includes an employee stock ownership feature. As one of the investment alternatives, participants in the RSP and RSP(+) can acquire our stock at market value. Shares are allocated and compensation expense is recognized as the employer share match is earned. At October 2, 2021, the participants in the RSP and RSP(+) owned 1,644,078 Class B shares.
As of January 1, 2021, one of our non-U.S. defined benefit plans was replaced by a defined contribution plan. The transaction eliminated balance sheet exposure for the plan, reducing the projected benefit obligation by $63,333, the fair value of plan assets by $57,643 and resulted in a curtailment gain of $5,830.
On September 16, 2020, we entered into an agreement to purchase a single premium non-participating group annuity contract and transferred the future benefit obligations and annuity administration for certain retirees and beneficiaries in our qualified U.S defined benefit pension plan. This settlement reduced the projected benefit obligation and fair value of assets by $486,615 and resulted in a one-time settlement charge of $121,324.
The changes in projected benefit obligations and plan assets and the funded status of the U.S. and non-U.S. defined benefit plans are as follows:
  
U.S. PlansNon-U.S. Plans
  
2021202020212020
Change in projected benefit obligation:
Projected benefit obligation at prior year measurement date$688,689 $1,065,937 $264,419 $249,575 
Service cost22,488 23,033 5,290 6,771 
Interest cost17,103 30,597 2,277 2,785 
Contributions by plan participants— — 380 832 
Actuarial (gains) losses(13,815)97,438 2,224 (3,572)
Foreign currency exchange impact— — 68 16,256 
Benefits paid(8,298)(40,246)(5,271)(5,278)
Curtailments— — (5,690)81 
Settlements— (486,615)(58,604)(2,999)
Other(1,178)(1,455)— (32)
Projected benefit obligation at measurement date$704,989 $688,689 $205,093 $264,419 
Change in plan assets:
Fair value of assets at prior year measurement date$615,872 $1,004,163 $170,765 $166,242 
Actual return on plan assets28,718 134,871 11,552 (5,088)
Employer contributions5,399 5,154 8,119 7,017 
Contributions by plan participants— — 380 832 
Benefits paid(8,298)(40,246)(5,271)(5,278)
Settlements— (486,615)(58,604)(2,999)
Foreign currency exchange impact— — 825 10,071 
Other(1,178)(1,455)— (32)
Fair value of assets at measurement date$640,513 $615,872 $127,766 $170,765 
Funded status and amount recognized in assets and liabilities$(64,476)$(72,817)$(77,327)$(93,654)
Amount recognized in assets and liabilities:
Long-term assets$40,873 $30,887 $9,266 $3,862 
Current and long-term pension liabilities(105,349)(103,704)(86,593)(97,516)
Amount recognized in assets and liabilities$(64,476)$(72,817)$(77,327)$(93,654)
Amount recognized in AOCIL, before taxes:
Prior service cost (credit)$— $— $940 $56 
Actuarial losses158,445 184,156 49,196 60,721 
Amount recognized in AOCIL, before taxes$158,445 $184,156 $50,136 $60,777 
Our funding policy is to contribute at least the amount required by law in the respective countries.
The total accumulated benefit obligation as of the measurement date for all defined benefit pension plans was $832,053 in 2021 and $868,316 in 2020. At the measurement date in 2021, our plans had fair values of plan assets totaling $768,279. The following table provides aggregate information for the pension plans, which have accumulated benefit obligations in excess of plan assets:
October 2, 2021October 3, 2020
Accumulated benefit obligation$223,933 $277,404 
Fair value of plan assets48,884 97,872 
The following table provides aggregate information for the pension plans, which have projected benefit obligations in excess of plan assets:
October 2, 2021October 3, 2020
Projected benefit obligation$256,084 $312,995 
Fair value of plan assets64,143 111,776 
Weighted-average assumptions used to determine net periodic benefit cost and weighted-average assumptions used to determine benefit obligations as of the measurement dates are as follows:
  
U.S. PlansNon-U.S. Plans
  
202120202019202120202019
Assumptions for net periodic benefit cost:
Service cost discount rate3.1 %3.5 %4.4 %1.5 %1.6 %2.9 %
Interest cost discount rate2.6 %2.9 %4.1 %1.2 %1.3 %2.6 %
Return on assets5.0 %4.5 %5.3 %3.2 %2.7 %3.5 %
Rate of compensation increase3.3 %2.9 %3.5 %2.6 %2.1 %2.5 %
Assumptions for benefit obligations:
Discount rate3.2 %3.0 %3.3 %1.8 %1.4 %1.6 %
Rate of compensation increase3.5 %3.3 %2.9 %2.8 %2.2 %2.1 %
Pension plan investment policies and strategies are developed on a plan specific basis, which varies by country. The overall objective for the long-term expected return on both domestic and international plan assets is to earn a rate of return over time to meet anticipated benefit payments in accordance with plan provisions. The long-term investment objective of both the domestic and international retirement plans is to maintain the economic value of plan assets and future contributions by producing positive rates of investment return after subtracting inflation, benefit payments and expenses. Each of the plan’s strategic asset allocations is based on this long-term perspective and short-term fluctuations are viewed with appropriate perspective.
The U.S. qualified defined benefit plan’s assets are invested for long-term investment results. To accommodate the long-term investment horizon while providing appropriate liquidity, the plan maintains a liquid cash reserve sufficient to allow the plan to meet its benefit payment, fee and expense obligations. Its assets are broadly diversified to help alleviate the risk of adverse returns in any one security or investment class. The international plans’ assets are invested in both low-risk and high-risk investments in order to achieve the long-term investment strategy objective. Investment risks for both domestic and international plans are considered within the context of the entire asset allocation, rather than on a security-by-security basis.
The U.S. qualified defined benefit plan and certain international plans have investment committees that are responsible for formulating investment policies, developing manager guidelines and objectives and approving and managing qualified advisors and investment managers. The guidelines established for each of the plans define permitted investments within each asset class and apply certain restrictions such as limits on concentrated holdings in order to meet overall investment objectives.
Pension obligations and the related costs are determined using actuarial valuations that involve several assumptions. The return on assets assumption reflects the average rate of return expected on funds invested or to be invested to provide for the benefits included in the projected benefit obligation. In determining the return on assets assumption, we consider the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance. Asset management objectives include maintaining an adequate level of diversification to reduce interest rate and market risk and to provide adequate liquidity to meet immediate and future benefit payment requirements.
In determining our U.S. pension expense for 2021, we assumed an average rate of return on U.S. pension assets of approximately 5.0% measured over a planning horizon with reasonable and acceptable levels of risk. The rate of return was based on the actual asset allocation of 37% in equity securities and 63% in fixed income securities at October 3, 2020. As a result of the pension settlement transaction, we modified our asset allocation to align our investment portfolio to maintain the funded status of the plan. In determining our non-U.S. pension expense for 2021, we assumed an average rate of return on non-U.S. pension assets of approximately 3.2% measured over a planning horizon with reasonable and acceptable levels of risk. The rate of return assumed an average asset allocation of 40% in equity securities and 60% in fixed income securities and other investments.
The weighted average asset allocations by asset category for the pension plans as of October 2, 2021 and October 3, 2020 are as follows:
  
U.S. PlansNon-U.S. Plans
  
Target2021
Actual		2020
Actual		Target2021
Actual		2020
Actual
Asset category:
Equity30%-40%35%37%25%-45%32%24%
Fixed Income60%-70%65%63%45%-65%63%38%
Other—%—%—%5%-15%5%38%
 
The valuation methodologies used for pension plan assets measured at fair value have been applied consistently.
Cash and cash equivalents: Direct cash holdings valued at cost, which approximates fair value.
Money market funds: Institutional short-term investment vehicles valued daily.

Shares of registered investment companies: Consists of both equity and fixed income mutual funds. Valued at quoted market prices that represent the net asset value ("NAV") of shares held by the plan at year end.

Fixed income securities: Valued using methods, such as dealer quotes, available trade information, spreads, bids and offers provided by a pricing vendor.

Equity securities: Traded on national exchanges are valued at the last reported sales price. Investments denominated in foreign currencies are translated into U.S. dollars using the last reported exchange rate.

Collective investment trust: NAV of the fund is calculated daily by the investment manager.

Unit linked life insurance funds: NAV value of the fund is calculated daily by the investment manager.

Investment in insurance contracts: Valued at contract value, which is the fair value of the underlying investment of the insurance company.
Limited partnerships: Valued at NAV of units held. The NAV is used as a practical expedient to estimate fair value. The NAV is based on the fair value of the underlying investments held by the fund less its liability. This practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different from the reported NAV.
Securities or other assets for which market quotations are not readily available or for which market quotations do not represent the value at the time of pricing (including certain illiquid securities) are fair valued in accordance with procedures established under the supervision and responsibility of the Trustee of that investment. Such procedures may include the use of independent pricing services or affiliated advisor pricing, which use prices based upon yields or prices of securities of comparable quality, coupon, maturity and type, indications as to values from dealers, operating data and general market conditions.
The following tables present the consolidated plan assets using the fair value hierarchy, which is described in Note 12, Fair Value, as of October 2, 2021 and October 3, 2020.
U.S. Plans, October 2, 2021
Level 1
Level 2
Level 3
Total
Investments at fair value:
Shares of registered investment companies:
Equity funds$200,929 $— $— $200,929 
Fixed income funds261,945 — — 261,945 
Money market funds— 25,275 — 25,275 
Total investments in fair value hierarchy462,874 25,275 — 488,149 
Investments measured at NAV practical expedient (1)152,364 
Total investments at fair value$462,874 $25,275 $— $640,513 
Non-U.S. Plans, October 2, 2021Level 1Level 2Level 3Total
Investments at fair value:
Mutual funds:
Equity funds$— $6,971 $— $6,971 
Fixed income funds— 8,152 — 8,152 
Equity securities9,843 — — 9,843 
Fixed income securities— 18,594 — 18,594 
Collective investment trusts— 21,681 — 21,681 
Unit linked life insurance funds— 58,643 — 58,643 
Money market funds— 542 — 542 
Cash and cash equivalents349 — — 349 
Insurance contracts and other— — 2,991 2,991 
Total investments at fair value$10,192 $114,583 $2,991 $127,766 
U.S. Plans, October 3, 2020Level 1Level 2Level 3Total
Investments at fair value:
Shares of registered investment companies:
Equity funds$197,580 $— $— $197,580 
Fixed income funds390,695 — — 390,695 
Money market funds— 6,281 — 6,281 
Total investments in fair value hierarchy
588,275 6,281 — 594,556 
Investments measured at NAV practical expedient (1)21,316 
Total investments at fair value$588,275 $6,281 $— $615,872 
Non-U.S. Plans, October 3, 2020Level 1Level 2Level 3Total
Investments at fair value:
Mutual funds:
Equity funds$— $6,159 $— $6,159 
Fixed income funds— 7,558 — 7,558 
Equity securities8,689 — — 8,689 
Fixed income securities— 17,930 — 17,930 
Collective investment trusts— 19,636 — 19,636 
Unit linked life insurance funds— 53,607 — 53,607 
Money market funds— 576 — 576 
Cash and cash equivalents149 — — 149 
Insurance contracts and other
— — 56,461 56,461 
Total investments at fair value$8,838 $105,466 $56,461 $170,765 
(1)Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the total retirement plan assets.
The following is a roll forward of the consolidated plan assets classified as Level 3 within the fair value hierarchy:
  
  
U.S. PlansNon-U.S. PlansTotal
Balance at September 28, 2019$505 $56,213 $56,718 
Return on assets4 (4,671)(4,667)
Purchases from contributions to Plans— 2,508 2,508 
Settlements paid in cash(509)(1,274)(1,783)
Foreign currency translation
— 3,685 3,685 
Balance at October 3, 2020— 56,461 56,461 
Return on assets— 2,882 2,882 
Purchases from contributions to Plans— 1,914 1,914 
Settlements paid in cash— (59,180)(59,180)
Foreign currency translation— 914 914 
Balance at October 2, 2021$— $2,991 $2,991 
The following table summarizes investments measured at fair value based on NAV per share as of October 2, 2021:
Fair Value
October 2, 2021October 3, 2020Unfunded CommitmentsRedemption FrequencyRedemption Notice Period
Collective investment trusts$128,941 $— $— Daily5 days
Limited partnerships (1)23,423 21,316 4,280 Varies10-45 days
Total$152,364 $21,316 $4,280 
(1)Investments in limited partnerships held by us invest primarily in emerging markets, equity and equity related securities. The strategy for the partnerships is to have exposure to certain markets or to securities that are judged to achieve superior earnings growth and/or judged undervalued relative to intrinsic value.
The preceding methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although we believe the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
Expense for all defined benefit plans is as follows:
  
U.S. PlansNon-U.S. Plans
202120202019202120202019
Service cost$22,488 $23,033 $21,003 $5,290 $6,771 $4,988 
Interest cost17,103 30,597 36,924 2,277 2,785 4,393 
Expected return on plan assets(30,543)(44,084)(45,054)(4,102)(4,577)(5,182)
Amortization of prior service cost (credit)— 133 187 45 (3)(18)
Amortization of actuarial loss13,721 25,316 26,639 5,568 4,943 2,532 
Curtailment (gain) loss— — — (5,830)100 — 
Settlement (gain) loss— 121,324 — (44)676 — 
Total expense for defined benefit plans
$22,769 $156,319 $39,699 $3,204 $10,695 $6,713 
Benefits expected to be paid to the participants of the plans are:
 
U.S. Plans
Non-U.S. Plans
2022$12,528 $6,851 
202316,274 8,784 
202419,991 7,180 
202523,607 7,511 
202627,039 8,772 
Five years thereafter181,532 43,218 
We presently anticipate contributing approximately $5,200 to the SERP Trust for the non-qualified plan and $7,900 to the non-U.S. plans in 2022.
Expense for all defined contribution plans consists of:
202120202019
U.S. defined contribution plans$36,131 $27,698 $19,848 
Non-U.S. defined contribution plans8,890 5,965 5,270 
Total expense for defined contribution plans$45,021 $33,663 $25,118 
We provide postretirement health care benefits to certain domestic retirees, who were hired prior to October 1, 1989. There are no plan assets. The changes in the accumulated benefit obligation of this unfunded plan for 2021 and 2020 are shown in the following table:
October 2, 2021October 3, 2020
Change in Accumulated Postretirement Benefit Obligation (APBO):
APBO at prior year measurement date$9,274 $8,810 
Service cost52 55 
Interest cost124 211 
Contributions by plan participants553 629 
Benefits paid(464)(668)
Actuarial (gains) losses(3,258)237 
APBO at measurement date$6,281 $9,274 
Funded status$(6,281)$(9,274)
Accrued postretirement benefit liability$6,281 $9,274 
Amount recognized in AOCIL, before taxes:
Actuarial gains6,042 3,297 
Amount recognized in AOCIL, before taxes$6,042 $3,297 
The cost of the postretirement benefit plan is as follows:
202120202019
Service cost$52 $55 $68 
Interest cost124 211 315 
Amortization of prior service credit— (259)(471)
Amortization of actuarial gain(513)(607)(713)
Net periodic postretirement benefit income$(337)$(600)$(801)
As of the measurement date, the assumed discount rate used in the accounting for the postretirement benefit obligation was 2.5% in 2021, 2.3% in 2020 and 3.0% in 2019. The assumed service cost discount rate and interest cost discount rate used in the accounting for the net periodic postretirement benefit cost were 2.5% and 1.4%, respectively in 2021, 3.1% and 2.5%, respectively in 2020 and 4.3% and 3.8%, respectively in 2019.
For measurement purposes, a 7.8% annual per capita rate of increase of medical and drug costs were assumed for 2022, gradually decreasing to 4.5% for 2035 and years thereafter.
Employee and management profit sharing reflects a discretionary payment based on our financial performance. Profit share expense was $34,257, $21,968 and $33,250 in 2021, 2020 and 2019, respectively.