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Pension and Other Postretirement Benefits Disclosure
 12 Months Ended
Oct. 31, 2014
Employee Benefit Plans [Abstract]  
Employee Benefit Plans [Text Block]
Employee Benefit Plans
The Company maintains pension plans, which are frozen, covering its eligible employees. The Company also provides an unfunded postretirement health care benefit plan for approximately 16 retirees and their dependents. The measurement date for the Company's employee benefit plans coincides with its fiscal year end, October 31.

Obligations and Funded Status U.S. Plans At October 31
 
 
Pension Benefits
 
Other Post Retirement Benefits
 
2014
 
2013
 
2014
 
2013
Change in benefit obligation:
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
(85,128
)
 
$
(88,665
)
 
$
(894
)
 
$
(940
)
Interest cost
(3,749
)
 
(3,260
)
 
(38
)
 
(34
)
Settlements
—

 
2,271

 
—

 
—

Actuarial gain (loss)
(4,388
)
 
835

 
277

 
45

Benefits paid
4,675

 
3,691

 
16

 
35

 
 
 
 
 
 
 
 
Benefit obligation at end of year
(88,590
)
 
(85,128
)
 
(639
)
 
(894
)
Change in plan assets:
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
60,956

 
53,230

 
—

 
—

Actual return on plan assets
5,206

 
8,542

 
—

 
—

Employer contributions
4,374

 
5,146

 
16

 
35

Settlement
—

 
(2,271
)
 
—

 
—

Benefits paid
(4,675
)
 
(3,691
)
 
(16
)
 
(35
)
 
 
 
 
 
 
 
 
Fair value of plan assets at end of year
65,861

 
60,956

 
—

 
—

 
 
 
 
 
 
 
 
Funded status, benefit obligations in excess of plan assets
$
(22,729
)
 
$
(24,172
)
 
$
(639
)
 
$
(894
)
 
 
 
 
 
 
 
 



The above amounts are recorded in the liabilities section of the consolidated balance sheets as follows:
 
 
Pension Benefits
 
Other Post Retirement Benefits
 
2014
 
2013
 
2014
 
2013
Other accrued expenses
$
(3,910
)
 
$
(3,650
)
 
$
(62
)
 
$
(99
)
Long-term benefit liabilities
(18,819
)
 
(20,522
)
 
(577
)
 
(795
)
 
 
 
 
 
 
 
 
Total
$
(22,729
)
 
$
(24,172
)
 
$
(639
)
 
$
(894
)
 
 
 
 
 
 
 
 

Components of Net Periodic Benefit Cost U.S. Plans
 
 
 
 
 
 
 
 
Pension Benefits
 
Other Post Retirement Benefits
 
2014
 
2013
 
2014
 
2013
Interest cost
$
3,749

 
$
3,260

 
$
38

 
$
34

Expected return on plan assets
(4,281
)
 
(3,735
)
 
—

 
—

Settlement
—

 
1,102

 
—

 
—

Amortization of net actuarial loss
1,074

 
1,392

 
41

 
48

Net periodic benefit cost
$
542

 
$
2,019

 
$
79

 
$
82


As part of a strategy to remove liability risk and reduce payments to the Pension Benefit Guaranty Corporation, the Company elected to allow lump sum distributions from the defined benefit pension plans, of which approximately 200 former employees elected and received distributions during fiscal 2013, removing $2,271 in liability from the plan. The FASB requires a special accounting charge for settling pension obligations in this manner. During fiscal year 2013, the Company incurred $1,102 in expense for this settlement charge.
The Company expects to recognize in the consolidated statements of income the following amounts that will be amortized from accumulated other comprehensive income in fiscal 2015.
 
 
 
 
 
Pension Benefits
 
Other Post Retirement Benefits
Amortization of net actuarial loss
$1,186
 
$28
 
 
 
 

The Company has recognized the following cumulative pre-tax actuarial losses, prior service costs and transition obligations in accumulated other comprehensive income:
 
 
Pension Benefits
 
Other Post Retirement Benefits
 
2014
 
2013
 
2014
 
2013
 
 
 
 
 
 
 
 
Net actuarial loss
$
43,669

 
$
41,280

 
$
361

 
$
679

 
 
 
 
 
 
 
 
Accumulated other comprehensive income
$
43,669

 
$
41,280

 
$
361

 
$
679

 
 
 
 
 
 
 
 

 
Additional Information on U.S. Plans 
 
Pension Benefits
 
Other Post Retirement Benefits
 
2014
 
2013
 
2014
 
2013
Increase (decrease) in minimum liability included in other comprehensive income
$
(2,390
)
 
$
8,135

 
$
318

 
$
93

 
 
 
 
 
 
 
 

Assumptions U.S. Plans
 
Weighted-average assumptions used
to determine benefit obligations at October 31
 
Pension Benefits
 
Other Post Retirement Benefits
 
2014
 
2013
 
2014
 
2013
Discount rate
 
4.00
%
 
4.50
%
 
4.00
%
 
4.50
%

 
 
Pension Benefits
 
Other Post Retirement Benefits
Weighted-average assumptions used to determine net
periodic benefit costs for years ended October 31 
 
2014
 
2013
 
2014
 
2013
Discount rate
 
4.50
%
 
3.75
%
 
4.50
%
 
3.75
%
Expected long-term return on plan assets
 
7.50
%
 
7.50
%
 
—

 
—



These assumptions are used to develop the projected obligation at fiscal year end and to develop net periodic benefit cost for the subsequent fiscal year. Therefore, for fiscal 2014, the assumptions used to determine net periodic benefit costs were established at October 31, 2013, while the assumptions used to determine the benefit obligations were established at October 31, 2014

The Company uses the Principal Pension Discount Yield Curve ("Principal Curve") for the U.S. Plans as the basis for determining the discount rate for reporting pension and retiree medical liabilities. The Principal Curve has several advantages to other methods, including: transparency of construction, lower statistical errors, and continuous forward rates for all years. At October 31, 2014 the discount rate from the use of the Principal Curve was 4.00%, a decrease of 0.50% from a year ago that resulted in an increase of the benefit obligation of approximately $6,076.
    The Company determines the annual rate of return on the U.S. Plan pension assets by first analyzing the composition of its asset portfolio. Historical rates of return are applied to the portfolio. The Company's outside investment advisors and actuaries review the computed rate of return. Industry comparables and other outside guidance are also considered in the annual selection of the expected rates of return on pension assets. The long-term expected rate of return on plan assets takes into account years with exceptional gains and years with exceptional losses.
 
October 31,
Assumed health care trend rates
2014
 
2013
Health care cost trend rate assumed for next year
7.0%
 
7.0%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)
6.5%
 
6.5%
Year that the rate reaches the ultimate trend rate
2015
 
2015

 
Assumed healthcare cost trend rates have a significant effect on the amounts reported for the healthcare plan. The Company's trend rate was based on reduced health care claims experienced by a small and declining retiree population. A one-percentage point change in assumed healthcare cost trend rates would have the following effects at October 31, 2014:
 
 
One-Percentage
Point Increase 
 
One-Percentage
Point Decrease 
Effect on total of service and interest cost components
$5
 
$(6)
Effect on post retirement obligation
$59
 
$(51)


Plan Assets U.S. Plan Assets
The Company has established a targeted asset allocation percentage by asset category and rebalances the assets of each plan when pension contributions are funded. The Company's pension plan weighted-average asset allocations at October 31, 2014 and 2013, by asset category and comparison to the target allocation percentage are as follows:
 
 
Target
Allocation
Percentage
Plan Assets at October 31,
2014
 
2013
Asset Category
 
 
 
 
Equity securities
 0-70%
59%
 
60%
Debt securities
 0-70%
35%
 
34%
Real estate
0-10%
6%
 
6%
 
 
 
 
 
Total
 
100%
 
100%
 
 
 
 
 

The Company's investment policy for assets of the plans is to obtain a reasonable long-term return consistent with the level of risk assumed. The Company also seeks to control the cost of funding the plans within prudent levels of risk through the investment of plan assets and the Company seeks to provide diversification of assets in an effort to avoid the risk of large losses and to maximize the return to the plans consistent with market and economic risk.
Non-U.S. Plans
The insurance contracts guarantee a minimum rate of return. The Company has no input into the investment strategy of the assets underlying the contracts, but they are typically heavily invested in active bond markets and are highly regulated by local law.
Fair Value
The plans' investments are reported at fair value. Purchases and sale of securities are recorded on a trade-date basis. Dividends are recorded on the ex-dividend date.
FASB ASC Topic 820, Fair Value Measurements and Disclosures ("FASB ASC 820"), clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based upon assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, FASB ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:     
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the plans have the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect the plans' own assumptions about the assumptions that market participants would use in pricing an asset or liability.
An asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.
Assets and liabilities measured at fair value are based on one or more of the following three valuation techniques noted in FASB ASC 820:     
•
Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.
•
Cost approach: Amount that would be required to replace the service capacity of an asset (replacement cost).
•
Income approach: Techniques to convert future amounts to a single present amount based upon market expectations (including present value techniques, option-pricing and excess earnings models).
The following descriptions of the valuation methods and assumptions used by the plans to estimate the fair values of investments apply to investments held directly by the plans.

Mutual funds: The fair values of mutual fund investments are determined by obtaining quoted prices on nationally recognized securities exchanges (level 1 inputs).

Pooled separate accounts: The fair values of participation units held in pooled separate accounts are based on their net asset values, as reported by the managers of the pooled separate accounts as supported by the unit prices of actual purchase and sale transactions occurring as of or close to the financial statement date (level 2 inputs). With the exception of the Principal U.S. Property Separate Account, a fund sponsored by Principal Financial Group, investment and actuarial advisors of the Company, each of the pooled separate accounts invests in multiple securities. With the exception of the Principal U.S. Property Separate Account, each pooled separate account provides for daily redemptions by the plans with no advance notice requirements, and has redemption prices that are determined by the fund's net asset value per unit. Due to illiquidity of the underlying assets of the Principal U.S. Property Separate Account, which is an open-end, commingled real estate account and a separate account of Principal Life Insurance Company (Principal), Principal has imposed a withdrawal limitation that delays the payment of withdrawal requests and provides for payment of such requests on a pro rata basis as cash becomes available for distribution, as determined by Principal.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its 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.

    
Investments totaling $65,861 at October 31, 2014 and $60,956 at October 31, 2013 measured at fair value on a recurring basis are summarized below:
 
 
 
 
Fair Value Measurements
 
Fair Value Measurements
 
 
 
 
 
 
at October 31, 2014 Using
 
at October 31, 2013 Using
 
 
 
 
 
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
 
 
 
 
 
 
 
 
 
 
U.S. Plans
 
 
 
 
 
Valuation Technique
Investments
 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
 
Large U.S. Equity
 
$
10,012

 
$
13,368

 
$
9,289

 
$
12,344

 
Market
 
 
Small/Mid U.S. Equity
 
6,079

 
2,670

 
5,488
 
2,437
 
Market
 
 
International Equity
 
6,611

 
—

 
7,316
 
—

 
Market
 
Fixed Income
 
 
 
 
 
 
 
 
 
 
 
 
Government
 
—

 
284

 
—

 
278
 
Market
 
 
Corporate
 
16,162

 
6,788

 
13,933
 
6,270
 
Cost
 
Real Estate (Primarily Commercial)
 
—

 
3,887

 
—

 
3,600

 
Market
Total Investments
 
$
38,864

 
$
26,997

 
$
36,026

 
$
24,929

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-U.S. Plans
 
 
 
 
 
 
 
 
 
 
 
Insurance Contracts
 
$
510

 
$
—

 
$
—

 
$
—

 
Cost


Cash Flows
Contributions
The Company expects to contribute $4,470 to its U.S. pension plans in fiscal 2015, compared to $4,374 funded in fiscal 2014.
 
       
Estimated Future Benefit Payments
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid by the plans:
 
 
Pension Benefits
 
Other Benefits
2015
 
$
3,910

 
 
 
$
62

 
2016
 
3,750

 
 
 
66

 
2017
 
4,120

 
 
 
52

 
2018
 
3,920

 
 
 
45

 
2019
 
4,500

 
 
 
46

 
2020-2024
 
24,440

 
 
 
193

 
 
 
 
 
 
 
 
 


Non-U.S. Plans

For the Company's Swedish operations, the majority of the pension obligations are covered by insurance policies with insurance companies. Pension commitments in the Company's Polish operations are approximately $510 at the end of fiscal 2014. The liability of these comprise the present value of future obligations and is calculated on actuarial basis.

Defined Contribution Plans

In addition to the defined benefit plans described above, the Company maintains a number of defined contribution plans for its United States locations. Under the terms of the plans, eligible employees may contribute a selected percentage of their base pay. The Company matches a percentage of the employees' contributions up to a stated percentage, subject to statutory limitations. The Company recorded an expense related to the matching program of $3,230 during fiscal 2014, compared to an expense of $2,195 during fiscal 2013.