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Employee Benefits
 12 Months Ended
Oct. 31, 2025
Retirement Benefits [Abstract]  
Employee Benefits
Note 10. Employee Benefits
Benefits Related To Workforce Optimization Initiatives
From time to time, the Company might engage in workforce optimization activities. Employee severance and other termination benefit packages are primarily determined based on established benefit arrangements, local statutory requirements, and historical benefit practices. We recognize the contractual component of these benefits when payment is probable and estimable; additional elements of severance and termination benefits associated with non-recurring benefits are recognized ratably over each employee’s required future service period. We recognized termination benefits expense of $35.0 million associated with the workforce optimization initiatives in fiscal 2025.
Retirement Income Plan
The Company's Retirement Income Plan (Plan), a defined benefit plan, is only available to full-time United States employees. On June 18, 2019, the Board of Directors of the Company approved a soft freeze of the Plan effective August 1, 2019. The Plan was closed to employees hired on or after August 1, 2019, including former participants or employees rehired on or after August 1, 2019, and employees hired in connection with a stock or asset acquisition, merger or other similar transaction on or after August 1, 2019. Existing employees already covered by the Plan, continue to accrue their benefits. The Company's contributions are designed to fund normal cost on a current basis and to fund the estimated prior service cost of benefit improvements. The unit credit actuarial cost method is used to determine the annual cost. The Company pays the entire cost of the Plan and funds such costs as they accrue. Virtually all of the assets of the Plan are comprised of equities and participation in equity and fixed income funds.
The Company uses individual spot rates along the yield curve that correspond with the timing of each benefit payment to determine the service and interest costs of components of its net periodic benefit cost utilizing the correlation of projected cash outflows and corresponding spot rates on the yield curve.
The following table sets forth the Plan's benefit obligations, fair value of the Plan assets and funded status of the Plan at October 31, 2025 and 2024, and net periodic pension costs for each of the years in the three-year periods ended October 31, 2025. The net amounts recognized in the Consolidated Balance Sheets consist of non-current liabilities. The accumulated benefit obligation was $161.4 million and $161.7 million as of October 31, 2025 and 2024.
Years Ended October 31,
(In millions)
20252024
Change in benefit obligation
Benefit obligation, beginning of year$178.9 $144.5 
Service cost9.9 8.7 
Interest cost8.7 8.4 
Benefits paid(14.6)(9.1)
Actuarial (gain) loss(4.7)26.4 
Benefit obligation, end of year$178.2 $178.9 
Change in plan assets
Fair value of plan assets, beginning of year$163.7 $137.6 
Actual return on plan assets16.3 34.8 
Employer contributions— 0.4 
Benefits paid(14.6)(9.1)
Fair value of plan assets, end of year$165.4 $163.7 
Funded status at end of year$(12.8)$(15.2)
Years Ended October 31,
(In millions)
20252024
Balances in accumulated other comprehensive income consist of:
Net loss (gain)$(2.2)$6.3 
Accumulated other comprehensive income$(2.2)$6.3 
Years Ended October 31,
(In millions)
20252024
Reconciliation of (prepaid) accrued pension cost:
(Prepaid)/Accrued pension cost at prior fiscal year end$8.9 $2.8 
Net periodic benefit cost6.1 6.5 
Contributions made during the year— (0.4)
(Prepaid)/Accrued pension cost at fiscal year end$15.0 $8.9 
Years Ended October 31,
(In millions)
202520242023
Components of net periodic benefit cost and other amounts recognized in the Consolidated Statements of Income:
Net periodic benefit cost:
Service cost$9.9 $8.7 $10.0 
Interest cost8.7 8.4 7.9 
Expected return on plan assets(12.5)(10.6)(11.1)
Net periodic pension cost$6.1 $6.5 $6.8 
Years Ended October 31,
(In millions)
202520242023
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net (gain) loss$(8.5)$2.2 $(4.0)
Total recognized in other comprehensive (income) loss$(8.5)$2.2 $(4.0)
Total recognized in net periodic benefit cost and other comprehensive (income) loss$(2.4)$8.7 $2.8 
Years Ended October 31,202520242023
Weighted-average assumptions used in computing the net periodic pension cost and projected benefit obligation at year end:
Discount rate for determining net periodic pension cost:
Projected Benefit Obligation5.32 %6.22 %5.74 %
Service Cost5.36 %6.25 %5.77 %
Interest Cost5.07 %6.05 %5.51 %
Discount rate for determining benefit obligations at year end5.32 %5.32 %6.22 %
Rate of compensation increase for determining expense4.40 %3.60 %3.60 %
Rate of compensation increase for determining benefit obligations at year end4.40 %4.40 %3.60 %
Expected rate of return on plan assets for determining net periodic pension cost8.00 %8.00 %8.00 %
Expected rate of return on plan assets at year end8.00 %8.00 %8.00 %
Measurement date for determining assets and benefit obligations at year end10/31/202510/31/202410/31/2023
The discount rate enables us to state expected future cash flows at a present value on the measurement date. The discount rate used for the Plan is based primarily on the yields of a universe of high-quality corporate bonds rated AA or above, with durations corresponding to the expected durations of the benefit obligations. A change in the discount rate will cause the present value of benefit obligations to change in the opposite direction.
The expected rate of return on plan assets was determined based on a review of historical returns, both for this plan and for medium- to large-sized defined benefit pension funds with similar asset allocations. This review generated separate expected returns for each asset class listed below. These expected future returns were then blended based on this Plan's target asset allocation.
The projected benefit obligation experienced a net gain of approximately $4.7 million during the year. This net gain is the result of assumption changes resulting in a gain of approximately $6.7 million and a loss of approximately $2.0 million due to demographic experience. The key assumption changes were the interest rates used for lump sum determination (gain of $6.7 million) and the yield curve used to determine discount rates. Changes in demographic experience were due to the net effect of retirement rates, termination rates, salary increases and other experience that was different from assumed.
Weighted-average asset allocations at year end, by asset category are as follows:
Years Ended October 31,202520242023
Asset category
Cash and cash equivalents2.0 %3.7 %2.9 %
Corporate common stock27.7 %25.2 %26.0 %
Equity mutual funds38.1 %39.9 %39.1 %
Balanced funds2.4 %2.2 %2.4 %
Alternative investments0.4 %0.8 %0.7 %
Bond mutual funds29.4 %28.2 %28.9 %
Total100.0 %100.0 %100.0 %
The Plan invests in a diversified portfolio of assets intended to minimize risk of poor returns while maximizing expected portfolio returns. To achieve the long-term rate of return, plan assets will be invested in a mixture of instruments, including but not limited to, corporate common stock (may include the Company's stock), investment grade bond funds, cash, balanced funds, real estate funds, small or large cap equity funds and international equity funds. The allocation of assets will be determined by the investment manager and will typically include 50% to 70% equities with the remainder invested in fixed income, hedging strategy funds and cash. Presently, this diversified portfolio is expected to return approximately 8% in the long run.
As of the measurement date of October 31, 2025 and October 31, 2024, all plan assets were classified as Level 1 assets except for $15.2 million and $26.7 million fixed income investments and $3.3 million and $5.7 million cash and cash equivalents, which were classified as Level 2. The Plan has an established process for determining the fair value of plan assets. For investments in equity and bond mutual funds, and real estate funds, fair value is based on observable, Level 1 inputs.
The Company closely monitors the funded status of the Plan with respect to legislative and accounting rules. The Company is expected to make contributions totaling $3.6 million to the Plan during fiscal 2026.
Years
(In millions)
2026$14.1 
202714.4 
202814.8 
202915.4 
203015.1 
2031-2035$73.7 
401(k) Savings Plan
The Company's 401(k) savings plan provides for the deferral of compensation as described in the Internal Revenue Code and is available to substantially all United States employees. Employees who participate in the 401(k) plan may elect to have up to 75% of their pre-tax salary or wages deferred and contributed to the trust established under the Plan. Cooper's contributions on account of participating employees, were $11.6 million, $10.1 million and $10.1 million for the years ended October 31, 2025, 2024 and 2023, respectively.