XML 43 R23.htm IDEA: XBRL DOCUMENT v3.25.3
Employee Benefit Plans
 12 Months Ended
Sep. 27, 2025
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 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 September 27, 2025, the participants in the RSP and RSP(+) owned 1,778,645 Class B shares.
Expense for all defined contribution plans consists of:
202520242023
U.S. defined contribution plans$50,900 $51,456 $45,868 
Non-U.S. defined contribution plans10,699 9,993 8,650 
Total expense for defined contribution plans$61,599 $61,449 $54,518 
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
  
2025202420252024
Change in projected benefit obligation:
Projected benefit obligation at prior year measurement date$575,426 $494,876 $151,637 $130,174 
Service cost9,881 10,775 3,087 2,580 
Interest cost26,897 27,891 5,307 5,720 
Contributions by plan participants— — 165 170 
Actuarial (gains) losses(25,562)62,473 (8,581)12,198 
Foreign currency exchange impact— — 3,134 7,737 
Benefits paid(22,803)(19,313)(7,016)(6,125)
Curtailments— — — (32)
Settlements— — (892)(565)
Other(842)(1,276)(130)(220)
Projected benefit obligation at measurement date$562,997 $575,426 $146,711 $151,637 
Change in plan assets:
Fair value of assets at prior year measurement date$472,633 $392,444 $113,776 $97,184 
Actual return on plan assets22,105 94,443 760 9,883 
Employer contributions6,389 6,335 (4,443)7,511 
Contributions by plan participants— — 165 170 
Benefits paid(22,803)(19,313)(7,016)(6,125)
Settlements— — (892)(565)
Foreign currency exchange impact— — 116 5,938 
Other(842)(1,276)(130)(220)
Fair value of assets at measurement date$477,482 $472,633 $102,336 $113,776 
Funded status and amount recognized in assets and liabilities$(85,515)$(102,793)$(44,375)$(37,861)
Amount recognized in assets and liabilities:
Long-term assets$— $— $15,254 $15,640 
Current and long-term pension liabilities(85,515)(102,793)(59,629)(53,501)
Amount recognized in assets and liabilities$(85,515)$(102,793)$(44,375)$(37,861)
Amount recognized in AOCIL, before taxes:
Prior service cost (credit)$— $— $683 $746 
Actuarial losses100,570 128,544 12,643 18,216 
Amount recognized in AOCIL, before taxes$100,570 $128,544 $13,326 $18,962 
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 $676,061 in 2025 and $687,292 in 2024. At the measurement date in 2025, our plans had fair values of plan assets totaling $579,818. The following table provides aggregate information for the pension plans, which have accumulated benefit obligations in excess of plan assets:
September 27, 2025September 28, 2024
Accumulated benefit obligation$144,215 $187,366 
Fair value of plan assets4,462 50,619 
The following table provides aggregate information for the pension plans, which have projected benefit obligations in excess of plan assets:
September 27, 2025September 28, 2024
Projected benefit obligation$664,656 $679,547 
Fair value of plan assets519,513 523,253 
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
  
202520242023202520242023
Assumptions for net periodic benefit cost:
Service cost discount rate5.1 %6.0 %5.5 %2.9 %4.7 %4.5 %
Interest cost discount rate4.8 %5.8 %5.4 %4.0 %4.6 %4.5 %
Return on assets7.3 %7.3 %6.5 %4.2 %4.4 %4.3 %
Rate of compensation increase3.2 %3.8 %3.8 %2.5 %3.2 %3.2 %
Assumptions for benefit obligations:
Discount rate5.5 %5.0 %5.9 %4.8 %4.1 %4.7 %
Rate of compensation increase3.2 %3.2 %3.8 %2.5 %2.4 %3.2 %
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 2025, we assumed an average rate of return on U.S. pension assets of approximately 7.3% measured over a planning horizon with reasonable and acceptable levels of risk. The rate of return was based on the actual asset allocation of 41% in equity securities and 59% in fixed income securities at September 28, 2024. In determining our non-U.S. pension expense for 2025, we assumed an average rate of return on non-U.S. pension assets of approximately 4.2% measured over a planning horizon with reasonable and acceptable levels of risk.
The weighted average asset allocations by asset category for the pension plans as of September 27, 2025 and September 28, 2024 are as follows:
  
U.S. PlansNon-U.S. Plans
  
Target2025
Actual		2024
Actual		Target2025
Actual		2024
Actual
Asset category:
Equity47%-53%49%41%15%-35%24%26%
Fixed Income47%-53%51%59%30%-50%45%43%
Other—%—%—%30%-40%31%31%
The valuation methodologies used for pension plan assets measured at fair value have been applied consistently.
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.

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.

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

Money market funds: Institutional short-term investment vehicles valued daily.

Cash and cash equivalents: Direct cash holdings valued at cost (Level 1) or cash collateral for the initial margin requirements on futures contracts (Level 2) which approximates fair value.

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

Unit linked 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 13 - Fair Value, as of September 27, 2025 and September 28, 2024.
U.S. Plans, September 27, 2025
Level 1
Level 2
Level 3
Total
Investments at fair value:
Money market funds$— $14,089 $— $14,089 
Cash and cash equivalents— 8,000 — 8,000 
Total investments in fair value hierarchy— 22,089 — 22,089 
Investments measured at NAV practical expedient (1)
455,393 
Total investments at fair value$— $22,089 $— $477,482 
Non-U.S. Plans, September 27, 2025Level 1Level 2Level 3Total
Investments at fair value:
Mutual funds:
Equity funds$— $2,474 $— $2,474 
Fixed income funds— 5,227 — 5,227 
Equity securities6,116 — — 6,116 
Fixed income securities— 22,228 — 22,228 
Collective investment trusts— 23,012 — 23,012 
Unit linked funds— 14,417 — 14,417 
Money market funds— 496 — 496 
Cash and cash equivalents1,320 — — 1,320 
Insurance contracts and other— — 27,046 27,046 
Total investments at fair value$7,436 $67,854 $27,046 $102,336 
U.S. Plans, September 28, 2024Level 1Level 2Level 3Total
Investments at fair value:
Shares of registered investment companies:
Equity funds$181,871 $— $— $181,871 
Fixed income funds153,575 — — 153,575 
Money market funds— 7,834 — 7,834 
Cash and cash equivalents— 6,420 — 6,420 
Total investments in fair value hierarchy
335,446 14,254 — 349,700 
Investments measured at NAV practical expedient (1)
122,933 
Total investments at fair value$335,446 $14,254 $— $472,633 
Non-U.S. Plans, September 28, 2024Level 1Level 2Level 3Total
Investments at fair value:
Mutual funds:
Equity funds$— $8,041 $— $8,041 
Fixed income funds— 7,626 — 7,626 
Equity securities6,970 — — 6,970 
Fixed income securities— 23,263 — 23,263 
Collective investment trusts— 22,788 — 22,788 
Unit linked funds— 12,164 — 12,164 
Money market funds— 1,224 — 1,224 
Cash and cash equivalents1,102 — — 1,102 
Insurance contracts and other
— — 30,598 30,598 
Total investments at fair value$8,072 $75,106 $30,598 $113,776 
(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:
  
  
Non-U.S. Plans
Balance at September 30, 2023$1,618 
Return on assets31 
Purchases from contributions to Plans28,524 
Settlements paid in cash(1,143)
Foreign currency translation
1,568 
Balance at September 28, 202430,598 
Return on assets(1,418)
Purchases from contributions to Plans1,164 
Settlements paid in cash(3,075)
Foreign currency translation(223)
Balance at September 27, 2025$27,046 
The following table summarizes investments measured at fair value based on NAV per share as of September 27, 2025:
Fair Value
September 27, 2025September 28, 2024Unfunded CommitmentsRedemption FrequencyRedemption Notice Period
Collective investment trusts$446,595 $111,831 $— Daily1-5 days
Limited partnerships (1)
8,798 11,102 3,273 Varies10-45 days
Total$455,393 $122,933 $3,273 
(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 defined benefit plans is as follows:
  
U.S. PlansNon-U.S. Plans
202520242023202520242023
Service cost$9,881 $10,775 $12,913 $3,087 $2,580 $2,674 
Interest cost26,897 27,891 28,112 5,307 5,720 5,448 
Expected return on plan assets(31,601)(27,267)(28,589)(4,193)(4,420)(4,244)
Amortization of prior service cost— — — 58 57 55 
Amortization of actuarial loss11,908 12,289 13,449 778 209 399 
Settlement (gain) loss— — 12,542 (129)(77)(151)
Total expense for defined benefit plans
$17,085 $23,688 $38,427 $4,908 $4,069 $4,181 
Benefits expected to be paid to the participants of the plans are:
 
U.S. Plans
Non-U.S. Plans
2026$24,959 $7,766 
202727,607 7,643 
202830,247 8,965 
202933,786 9,044 
203036,178 9,010 
Five years thereafter201,660 45,850 
We presently anticipate contributing approximately $5,700 to the SERP Trust for the non-qualified plan and $4,500 to the non-U.S. plans in 2026.
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 2025 and 2024 are shown in the following table:
September 27, 2025September 28, 2024
Change in Accumulated Postretirement Benefit Obligation (APBO):
APBO at prior year measurement date$2,253 $2,840 
Service cost6 11 
Interest cost88 144 
Contributions by plan participants328 382 
Benefits paid(828)(798)
Actuarial (gains) losses(36)(326)
APBO at measurement date$1,811 $2,253 
Funded status$(1,811)$(2,253)
Accrued postretirement benefit liability$1,811 $2,253 
Amount recognized in AOCIL, before taxes:
Actuarial gains2,362 3,717 
Amount recognized in AOCIL, before taxes$2,362 $3,717 
The cost of the postretirement benefit plan is as follows:
202520242023
Service cost$6 $11 $16 
Interest cost88 144 166 
Amortization of actuarial gain(1,391)(1,861)(2,321)
Net periodic postretirement benefit income$(1,297)$(1,706)$(2,139)
As of the measurement date, the assumed discount rate used in the accounting for the postretirement benefit obligation was 4.7% in 2025, 4.5% in 2024 and 5.6% in 2023. The assumed service cost discount rate and interest cost discount rate used in the accounting for the net periodic postretirement benefit cost were 4.3% and 4.4%, respectively in 2025, 5.4% and 5.7%, respectively in 2024 and 5.1% and 5.1%, respectively in 2023.
For measurement purposes, a 8.0% annual per capita rate of increase of medical and drug costs were assumed for 2026, 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 $52,100, $46,424 and $38,702 in 2025, 2024 and 2023, respectively.