v3.24.3
Pension and Other Postretirement Benefits
 12 Months Ended
Sep. 30, 2024
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]  
Pension and Other Postretirement Benefits PENSION AND OTHER POSTRETIREMENT BENEFITS
The Company maintains qualified defined benefit plans in the U.S., the U.K. and Canada for certain employees primarily within its Post Consumer Brands and Weetabix segments. Certain of the Company’s employees are eligible to participate in the Company’s postretirement benefit plans (partially subsidized retiree health and life insurance).
On February 16, 2024, the Company adopted the Post Holdings, Inc. 2024 Supplemental Executive Retirement Plan (the “SERP”), an unfunded, non-qualified defined benefit retirement plan for certain management employees of the Company that was effective on February 19, 2024. The SERP is a supplemental program that provides a cash balance benefit to each participant. The SERP participants were credited with an opening credit, based on years of past service with the Company, and accrue ongoing benefits with a pay credit equal to a percentage of certain of the participant’s annualized compensation. In addition, SERP participants are credited annually with an interest credit equal to the interest rate multiplied by the participant’s account balance as of the preceding December 1st. The Company recorded an initial projected benefit obligation of $8.3 related to the SERP during the year ended September 30, 2024, which was included in “Accumulated other comprehensive loss” on the Consolidated Balance Sheets at September 30, 2024.
The following disclosures reflect amounts related to the Company’s employees based on separate actuarial valuations, projections and certain allocations. Amounts for the Canadian plans and the SERP are included in the North America disclosures and are not disclosed separately because they do not constitute a significant portion of the combined amounts. With respect to defined benefits for Canadian Post Consumer Brands employees, eligibility is frozen to new entrants and benefit accrual is frozen for salaried employees. With respect to defined benefits for U.S. Post Consumer Brands employees, eligibility is frozen to new employees and the benefit accrual is frozen for all administrative employees and certain production employees. The benefit accrual is frozen for salaried Weetabix North America employees in the U.S. With respect to Weetabix employees in the U.K. participating in the executive and group schemes of the defined benefit pension plans and Deeside defined benefit pension plan, the plans are closed to new entrants and the benefit accrual is frozen with respect to existing participants.
Defined Benefit Pension Plans
The following table provides a reconciliation of the changes in the pension plans’ benefit obligations and fair value of assets over the two year period ended September 30, 2024 and a statement of the funded status and amounts recognized on the Consolidated Balance Sheets as of September 30, 2024 and 2023.
North AmericaOther International
As of and for the Year Ended September 30,As of and for the Year Ended September 30,
2024202320242023
Change in benefit obligation
Benefit obligation at beginning of year$92.6 $95.5 $422.0 $421.1 
Service cost2.5 2.2 0.3 — 
Interest cost5.8 5.3 25.6 23.3 
Plan participants’ contributions0.3 0.3 — — 
Net actuarial loss (gain)
11.4 (5.4)24.5 (37.5)
Business combinations— — 32.4 — 
Benefits paid(6.0)(5.4)(29.3)(25.9)
Plan amendments
8.3 — 0.1 — 
Other
— — (0.3)— 
Currency translation0.1 0.1 42.6 41.0 
Benefit obligation at end of year$115.0 $92.6 $517.9 $422.0 
Change in fair value of plan assets
Fair value of plan assets at beginning of year$108.2 $102.9 $516.4 $507.3 
Actual return on plan assets25.3 10.1 56.5 (14.3)
Employer contributions— 0.1 0.1 — 
Business combinations— — 42.7 — 
Plan participants’ contributions0.3 0.3 — — 
Benefits paid(6.0)(5.4)(29.3)(25.9)
Currency translation0.1 0.2 52.8 49.4 
Other— — (0.3)(0.1)
Fair value of plan assets at end of year127.9 108.2 638.9 516.4 
Funded status$12.9 $15.6 $121.0 $94.4 
Amounts recognized in assets or liabilities
Other assets$22.5 $15.9 $121.0 $94.4 
Other liabilities(9.6)(0.3)— — 
Net amount recognized$12.9 $15.6 $121.0 $94.4 
Amounts recognized in accumulated OCI
Net actuarial (gain) loss $(8.0)$(2.7)$50.2 $47.7 
Prior service cost8.1 0.4 9.9 10.3 
Total$0.1 $(2.3)$60.1 $58.0 
Weighted-average assumptions used to determine benefit obligation
Discount rate — U.S. pension plan
5.09 %6.06 %n/an/a
Discount rate — Canadian plans4.64 %5.68 %n/an/a
Discount rate — SERP
4.87 %n/an/an/a
Discount rate — Other international plansn/an/a5.17 %5.67 %
Rate of compensation increase — U.S. pension plan
3.00 %3.00 %n/an/a
Rate of compensation increase — Canadian plans2.75 %2.75 %n/an/a
Rate of compensation increase — SERP
3.00 %n/an/an/a
Rate of compensation increase — Other international plansn/an/a2.48 %3.02 %
Interest crediting rate — SERP
4.90 %n/an/an/a
The aggregate accumulated benefit obligation for the North America pension plans was $114.3 and $91.8 at September 30, 2024 and 2023, respectively. The aggregate accumulated benefit obligation for the Other International pension plans was $517.9 and $422.0 at September 30, 2024 and 2023, respectively.
The following table presents information for the SERP, which had accumulated benefit obligations and projected benefit obligations in excess of fair value of plan assets at September 30, 2024.
Projected benefit obligation
$9.5 
Accumulated benefit obligation
9.5 
Fair value of plan assets
— 
The following tables present the components of net periodic benefit cost (income) for the pension plans including amounts recognized in OCI. Service cost was reported in “Cost of goods sold” and “Selling, general and administrative expenses” and all other components of net periodic benefit cost (income) were reported in “Other income, net” in the Consolidated Statements of Operations.
North America
Year Ended September 30,
202420232022
Components of net periodic benefit cost (income)
Service cost$2.5 $2.2 $4.3 
Interest cost5.8 5.3 3.5 
Expected return on plan assets(8.1)(7.5)(7.0)
Recognized net actuarial (gain) loss(0.5)(0.2)1.6 
Recognized prior service cost0.7 0.1 0.1 
Net periodic benefit cost (income)
$0.4 $(0.1)$2.5 
Weighted-average assumptions used to determine net benefit cost (income)
Discount rate — U.S. pension plan
6.06 %5.65 %3.05 %
Discount rate — Canadian plans5.68 %5.12 %3.32 %
Discount rate — SERP
5.99 %n/an/a
Rate of compensation increase — U.S. pension plan
3.00 %3.00 %3.00 %
Rate of compensation increase — Canadian plans2.75 %2.75 %2.75 %
Rate of compensation increase — SERP
n/an/an/a
Expected return on plan assets — U.S. pension plan
7.00 %6.50 %5.75 %
Expected return on plan assets — Canadian plans6.00 %5.75 %5.25 %
Expected return on plan assets — SERP
n/an/an/a
Changes in plan assets and benefit obligation recognized in OCI
Net gain$(5.7)$(8.0)$(4.7)
Recognized gain (loss)0.5 0.2 (1.6)
Plan inception (a)
8.3 — — 
Recognized prior service cost(0.7)(0.1)(0.1)
Total recognized in OCI (before tax effects)$2.4 $(7.9)$(6.4)
(a)Amount represents the initial projected benefit obligation recorded related to the SERP during the year ended September 30, 2024.
Other International
Year Ended September 30,
202420232022
Components of net periodic benefit income
Service cost$0.3 $— $— 
Interest cost25.6 23.3 15.7 
Expected return on plan assets(34.7)(30.8)(24.8)
Recognized net actuarial loss0.1 0.1 — 
Recognized prior service cost0.5 0.4 0.4 
Net periodic benefit income$(8.2)$(7.0)$(8.7)
Weighted-average assumptions used to determine net benefit income
Discount rate 5.67 %5.15 %2.05 %
Rate of compensation increase3.02 %3.85 %3.45 %
Expected return on plan assets6.26 %5.63 %2.73 %
Changes in plan assets and benefit obligation recognized in OCI
Net loss$2.6 $7.6 $46.2 
Recognized loss(0.1)(0.1)— 
Prior service cost
0.1 — — 
Recognized prior service cost(0.5)(0.4)(0.4)
Total recognized in OCI (before tax effects)$2.1 $7.1 $45.8 
The Company does not expect to make contributions to its defined benefit North America and Other International pension plans during fiscal 2025.
The expected return on North America pension plan assets was determined based on historical and expected future returns of the various asset classes using the target allocation. The broad target allocations are 57.9% equity securities, 37.8% fixed income and bonds, 3.3% real assets and 1.0% cash and cash equivalents. At September 30, 2024, equity securities were 62.0%, fixed income and bonds were 33.3%, real assets were 1.3% and cash and cash equivalents were 3.4% of the fair value of total plan assets, 97.2% of which was invested in passive index funds. At September 30, 2023, equity securities were 64.7%, fixed income and bonds were 30.2%, real assets were 1.3% and cash and cash equivalents were 3.8% of the fair value of total plan assets, 96.8% of which was invested in passive index funds. The allocation guidelines were established based on management’s determination of the appropriate risk posture and long-term objectives.
The expected return on Other International pension plan assets was determined based on historical and expected future returns of the various asset classes, using the target allocation. The broad target allocations are 63.0% fixed income and bonds, 34.4% liability driven investments and 2.6% cash and cash equivalents. At September 30, 2024, fixed income and bonds were 72.7%, liability driven investments were 24.7% and cash and cash equivalents were 2.6% of the fair value of total plan assets, 37.4% of which was invested in passive index funds. At September 30, 2023, fixed income and bonds were 75.2%, liability driven investments were 21.4% and cash and cash equivalents were 3.4% of the fair value of total plan assets, 23.7% of which was invested in passive index funds. The allocation guidelines were established by the trustees of the plan based on their determination of the appropriate risk posture and long-term objectives after consulting with management.
The following tables present the North America and Other International pension plans’ assets measured at fair value on a recurring basis and the basis for that measurement. The fair value of funds is based on quoted net asset value (“NAV”) per share held by the plans at year end.
North America
September 30, 2024September 30, 2023
TotalLevel 1Level 2TotalLevel 1Level 2
Equities$14.3 $— $14.3 $11.9 $— $11.9 
Fixed income and bonds6.2 — 6.2 5.2 — 5.2 
Cash and cash equivalents0.7 0.7 — 4.1 4.1 — 
Fair value of plan assets in the fair value hierarchy21.2 0.7 20.5 21.2 4.1 17.1 
Investments measured at NAV (a)106.7 — — 87.0 — — 
Total plan assets$127.9 $0.7 $20.5 $108.2 $4.1 $17.1 
Other International
September 30, 2024September 30, 2023
TotalLevel 1Level 2TotalLevel 1Level 2
Fixed income and bonds$350.3 $350.3 $— $280.4 $280.4 $— 
Liability driven instruments121.4 121.4 — 91.6 91.6 — 
Cash and cash equivalents5.1 5.1 — 17.4 17.4 — 
Fair value of plan assets in the fair value hierarchy476.8 476.8 — 389.4 389.4 — 
Investments measured at NAV (a)162.1 — — 127.0 — — 
Total plan assets$638.9 $476.8 $— $516.4 $389.4 $— 
(a)Includes certain investments in common collective trusts, cash equivalent funds, real assets, fixed incomes and liability driven instruments which were measured at NAV. In accordance with the practical expedient provided by ASC Topic 820, these investments have not been classified in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to the tables above.
Other Postretirement Benefits
The following table provides a reconciliation of the changes in the North America other postretirement benefit obligations over the two year period ended September 30, 2024 and a statement of the funded status and amounts recognized on the Consolidated Balance Sheets as of September 30, 2024 and 2023. Besides the North America plans, the Company does not maintain any other postretirement benefit plans.
As of and for the Year Ended September 30,
20242023
Change in benefit obligation
Benefit obligation at beginning of year$45.8 $48.3 
Service cost0.2 0.3 
Interest cost2.7 2.5 
Net actuarial loss (gain)
2.4 (3.0)
Benefits paid(2.2)(2.3)
Benefit obligation at end of year$48.9 $45.8 
Change in fair value of plan assets
Employer contributions2.2 2.3 
Benefits paid(2.2)(2.3)
Fair value of plan assets at end of year— — 
Funded status$(48.9)$(45.8)
Amounts recognized in assets or liabilities
Other current liabilities(3.2)(3.3)
Other liabilities(45.7)(42.5)
Net amount recognized$(48.9)$(45.8)
Amounts recognized in accumulated OCI
Net actuarial loss$(8.3)$(11.7)
Prior service credit— (0.7)
Total$(8.3)$(12.4)
Weighted-average assumptions used to determine benefit obligation
Discount rate — U.S. plans4.99 %6.01 %
Discount rate — Canadian plans4.73 %5.67 %
Rate of compensation increase — Canadian plans2.75 %2.75 %
The following table presents information for the other postretirement benefit plans which had accumulated benefit obligations in excess of fair value of plan assets.
September 30,
20242023
U.S. plans
Accumulated benefit obligation
$43.9 $40.6 
Fair value of plan assets
— — 
Canadian plans
Accumulated benefit obligation
$5.0 $5.2 
Fair value of plan assets
— — 
The following table presents the components of net periodic benefit loss (income) for the other postretirement benefit plans including amounts recognized in OCI. Service cost was reported in “Cost of goods sold” and “Selling, general and administrative expenses” and all other components of net periodic benefit loss (income) were reported in “Other income, net” in the Consolidated Statements of Operations.
Year Ended September 30,
202420232022
Components of net periodic benefit loss (income)
Service cost$0.2 $0.3 $0.5 
Interest cost2.7 2.5 1.5 
Recognized net actuarial (gain) loss(1.0)(0.5)0.6 
Recognized prior service credit(0.6)(4.7)(4.6)
Net periodic benefit loss (income)
$1.3 $(2.4)$(2.0)
Weighted-average assumptions used to determine net benefit loss (income)
Discount rate — U.S. plans6.01 %5.62 %2.89 %
Discount rate — Canadian plans5.67 %5.12 %3.45 %
Rate of compensation increase — Canadian plans2.75 %2.75 %2.75 %
Changes in benefit obligation recognized in OCI
Net loss (gain)
$2.5 $(3.0)$(17.5)
Recognized net actuarial gain (loss)1.0 0.5 (0.6)
Recognized prior service credit0.6 4.7 4.6 
Total recognized in OCI (before tax effects)$4.1 $2.2 $(13.5)
For September 30, 2024 measurement purposes, the assumed annual rate of increase in the future per capita cost of covered health care benefits related to domestic plans for fiscal 2025 was 6.3% for participants both under the age of 65 and over the age of 65, declining gradually to an ultimate rate of 5.0% for fiscal 2030 and beyond. For September 30, 2023 measurement purposes, the assumed annual rate of increase in the future per capita cost of covered health care benefits related to domestic plans for fiscal 2024 was 6.5% for participants both under the age of 65 and over the age of 65, declining gradually to an ultimate rate of 5.0% for fiscal 2030 and beyond. For both September 30, 2024 and 2023 measurement purposes, the assumed annual rate of increase in the future per capita cost of covered health care benefits related to Canadian plans for the following fiscal year was 4.5%, and will remain at this rate for 2025 and beyond.
Additional Information
As of September 30, 2024, expected future benefit payments and related federal subsidy receipts (Medicare Part D) in the next ten fiscal years were:
Pension Benefits
Other Benefits
Subsidy Receipts
Fiscal 2025
$31.6 $3.4 $0.1 
Fiscal 2026
32.7 3.4 0.1 
Fiscal 2027
34.0 3.4 0.2 
Fiscal 2028
34.9 3.5 0.2 
Fiscal 2029
36.3 3.4 0.2 
Fiscal 2030 - 2034
206.0 17.3 0.9 
In addition to the defined benefit plans described above, the Company sponsors a defined contribution 401(k) plan under which it makes matching contributions. The Company expensed $27.3, $21.4 and $19.6 for the years ended September 30, 2024, 2023 and 2022, respectively, related to such plan.