Employee Benefit Plan (Tables)

12 Months Ended

Oct. 31, 2019

Obligations and Funded Status of U.S. Plans at October 31:



	Pension Benefits						Other Post Retirement Benefits
	2019			2018			2019			2018
Change in benefit obligation:
Benefit obligation at beginning of year	$	(79,898	)	$	(89,063	)	$	(283	)	$	(313	)
Interest cost	(3,366		)	(3,166		)	(11		)	(11		)
Actuarial gain/(loss)	(12,995		)	7,849			(21		)	12
Benefits paid	5,062			4,482			32			29
Benefit obligation at end of year	(91,197		)	(79,898		)	(283		)	(283		)
Change in plan assets:
Fair value of plan assets at beginning of year	65,646			69,215			—			—
Actual return on plan assets	6,672			468			—			—
Employer contributions	1,351			445			32			29
Benefits paid	(5,062		)	(4,482		)	(32		)	(29		)
Fair value of plan assets at end of year	68,607			65,646			—			—
Funded status, benefit obligations in excess of plan assets	$	(22,590	)	$	(14,252	)	$	(283	)	$	(283	)

Amounts Recorded in the Liability Section of the Consolidated Balance Sheet

The following amounts are recorded in the liabilities section of the consolidated balance sheets as follows:



	Pension Benefits						Other Post Retirement Benefits
	2019			2018			2019			2018
Other accrued expenses (1)	$	—		$	—		$	(39	)	$	(39	)
Long-term benefit liabilities	(22,590		)	(14,252		)	(244		)	(244		)
Total	$	(22,590	)	$	(14,252	)	$	(283	)	$	(283	)

(1) As pension assets exceed expected benefit payments over the next year, liabilities for the pension plan are considered long-term.

Components of Net Periodic Benefit Cost



Components of Net Periodic Benefit Cost U.S. Plans
	Pension Benefits									Other Post Retirement Benefits
	2019			2018			2017			2019		2018		2017
Interest cost	$	3,366		$	3,166		$	3,282		$	11	$	11	$	13
Expected return on plan assets	(3,341		)	(3,357		)	(3,455		)	—		—		—
Amortization of net actuarial loss	1,150			1,311			1,508			6		7		10
Net periodic benefit cost	$	1,175		$	1,120		$	1,335		$	17	$	18	23

Amortization of Net Actuarial Loss

We expect to recognize in the consolidated statements of operations the following amounts that will be amortized from accumulated other comprehensive loss in fiscal 2020.




	Pension Benefits		Other Post Retirement Benefits
Amortization of net actuarial loss	$	1,497	$	8

Net Actuarial Loss in Other Comprehensive Income

We have recognized the following cumulative pre-tax actuarial losses, prior service costs and transition obligations in accumulated other comprehensive loss:



	Pension Benefits				Other Post Retirement Benefits
	2019		2018		2019		2018

Net actuarial loss	$	46,224	$	37,710	$	80	$	64

Recognized in accumulated other comprehensive loss	$	46,224	$	37,710	$	80	$	64

The following table provides additional details of the amounts recognized into net earnings from accumulated other comprehensive loss, net of tax:



		Pension and Post Retirement Plan Liability (1)			Marketable Securities Adjustment (1)			Interest Rate Swap Adjustment (2)			Foreign Currency Translation Adjustment (3)			Accumulated Other Comprehensive Loss
Balance at October 31, 2017		$	(27,847	)	$	(2	)	$	(1,319	)	$	(13,069	)	$	(42,237	)
	Other comprehensive income (loss), net of tax	(124		)	(131		)	864			(8,810		)	(8,201		)
	Amounts reclassified from accumulated other comprehensive loss, net of tax	4,972			122			772			—			5,866
	Net current-period other comprehensive income (loss)	4,848			(9		)	1,636			(8,810		)	(2,335		)
	Reclassification to retained earnings (4)	(6,138		)	(7		)	(213		)	—			(6,358		)
Balance at October 31, 2018		$	(29,137	)	$	(18	)	$	104		$	(21,879	)	$	(50,930	)
	Other comprehensive income (loss), net of tax	939			—			(949		)	(4,636		)	(4,646		)
	Amounts reclassified from accumulated other comprehensive loss, net of tax	(9,685		)	18			217			—			(9,450		)
	Net current-period other comprehensive income (loss)	(8,746		)	18			(732		)	(4,636		)	(14,096		)
Balance at October 31, 2019		$	(37,883	)	$	—		$	(628	)	$	(26,515	)	$	(65,026	)

(1) Amounts reclassified from accumulated other comprehensive loss, net of tax are classified with manufacturing expenses included in cost of goods sold on the statements of operations.

(2) Amounts reclassified from accumulated other comprehensive income loss, net of tax are classified with interest expense included on the statements of operations.

(3) The net investment derivative instrument is recognized in accumulated other comprehensive loss and reclassified to income in the same period when a gain or loss related to that net investment in foreign operation is included in income.

(4) In the three months ended July 31, 2018, Shiloh early adopted ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." As a result, the stranded tax effects resulting from the TCJA enacted in December 2017 were reclassified from accumulated other comprehensive loss to retaining earnings.

Minimum Liability Included in Other Comprehensive Income

Additional Information on U.S. Plans



	Pension Benefits					Other Post Retirement Benefits
	2019		2018			2019		2018
Increase (decrease) in minimum liability included in other comprehensive income (loss)	$	8,514	$	(6,272	)	$	15	$	(20	)

Assumptions

Assumptions for U.S. Plans:



Weighted-average assumptions used to determine benefit obligations at October 31	Pension Benefits						Other Post Retirement Benefits
	2019		2018		2017		2019		2018		2017
Discount rate	3.05	%	4.35	%	3.65	%	3.05	%	4.35	%	3.65	%



	Pension Benefits						Other Post Retirement Benefits
Weighted-average assumptions used to determine net periodic benefit costs for years ended October 31	2019		2018		2017		2019		2018		2017
Discount rate	4.35	%	3.65	%	3.70	%	4.35	%	3.65	%	3.70	%
Expected long-term return on plan assets	6.50	%	6.50	%	6.50	%	—		—		—

Assumed Health Care Cost Trend Rates



	October 31,
Assumed health care trend rates	2019	2018
Health care cost trend rate assumed for next year	6.8%	7.0%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	4.5%	4.5%
Year that the rate reaches the ultimate trend rate	2030	2027

Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

A one-percentage point change in assumed health care cost trend rates would have the following effects at October 31, 2019:



	One-Percentage Point Increase		One-Percentage Point Decrease
Effect on total of service and interest cost components	$	3	$	(2	)
Effect on post retirement obligation	$	20	$	(18	)

Allocation of Plan Assets

pension plan weighted-average asset allocations at October 31, 2019 and 2018, by asset category and comparison to the target allocation percentage are as follows:



	Target Allocation Percentage	Plan Assets at October 31,
	Target Allocation Percentage	2019	2018
Asset Category
Equity securities	30-70%	62%	59%
Debt securities	30-70%	33%	35%
Real estate	0-10%	5%	6%
Total		100%	100%

Investments Measured At Fair Value

Investments totaling $68,607 and $65,646 at October 31, 2019 and 2018 measured at fair value on a recurring basis are summarized below:



			Fair Value Measurements				Fair Value Measurements
			October 31, 2019				October 31, 2018
			Quoted Prices in Active Markets for Identical Assets (Level 1) Market Valuation Technique		Plan Assets Measured at Net Asset Value		Quoted Prices in Active Markets for Identical Assets (Level 1) Market Valuation Technique		Plan Assets Measured at Net Asset Value

U.S. Plans
Investments
	Equity
		Large U.S. Equity	$	15,382	$	5,545	$	14,269	$	5,131
		Small/Mid U.S. Equity	8,371		665		7,540		601
		International Equity	11,363		—		10,062		—
	Fixed Income
		Money Market	—		868		—		754
		Corporate	18,544		3,782		18,963		4,144
	Real Estate (Primarily Commercial)		—		4,087		—		4,182
Total Investments			$	53,660	$	14,947	$	50,834	$	14,812

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
2020		$	5,220		$	39
2021		4,210			29
2022		4,590			27
2023		5,010			24
2024		4,870			23
2025-2029		25,700			91