The following benefit payments were expected to be paid as of September 30, 2016:
|
| | | | | | | | |
Fiscal Year | | U.S. Plans | | Non U.S. Plans |
2017 | | $ | 5.2 |
| | $ | 5.4 |
|
2018 | | 5.3 |
| | 5.7 |
|
2019 | | 5.4 |
| | 6.4 |
|
2020 | | 5.5 |
| | 6.8 |
|
2021 | | 5.6 |
| | 7.0 |
|
2022 to 2026 | | 27.5 |
| | 40.0 |
|
The Company has established formal investment policies for the assets associated with these plans. Policy objectives include maximizing long-term return at acceptable risk levels, diversifying among asset classes, if appropriate, and among investment managers, as well as establishing relevant risk parameters within each asset class. Specific asset class targets are based on the results of periodic asset/liability studies. The investment policies permit variances from the targets within certain parameters. The plan assets currently do not include holdings of common stock of HRG or its subsidiaries.
Below is a summary allocation of all pension plan assets as of September 30, 2016 and 2015:
|
| | | | | | | | | | | | |
| | U.S. Plans | | Non U.S. Plans |
| | 2016 | | 2015 | | 2016 | | 2015 |
Asset Type | | | | | | | | |
Equity securities | | 61 | % | | 62 | % | | — | % | | 6 | % |
Fixed income securities | | 36 | % | | 35 | % | | 23 | % | | 25 | % |
Other | | 3 | % | | 3 | % | | 77 | % | | 69 | % |
Total | | 100 | % | | 100 | % | | 100 | % | | 100 | % |
The fair value of pension plan assets by asset category as of September 30, 2016 and 2015 were as follows:
|
| | | | | | | | | | | | | | | | |
| | September 30, 2016 |
| | Level 1 | | Level 2 | | Level 3 | | Total |
Defined Benefit Plan Assets: | | | | | | | | |
Equity Securities | | | | | | | | |
U.S. equity securities | | $ | 22.2 |
| | $ | 11.8 |
| | $ | — |
| | $ | 34.0 |
|
Foreign equity securities | | 10.4 |
| | 2.3 |
| | — |
| | 12.7 |
|
Debt Securities | | | | | | | | |
U.S. bonds | | 19.6 |
| | 7.1 |
| | — |
| | 26.7 |
|
Foreign bonds | | 1.9 |
| | 24.1 |
| | — |
| | 26.0 |
|
Real estate | | 1.7 |
| | 5.8 |
| | — |
| | 7.5 |
|
Life insurance contracts | | — |
| | 37.0 |
| | — |
| | 37.0 |
|
Other | | — |
| | 35.1 |
| | — |
| | 35.1 |
|
Foreign cash & cash equivalents | | 13.7 |
| | — |
| | — |
| | 13.7 |
|
Total defined benefit plan assets | | $ | 69.5 |
| | $ | 123.2 |
| | $ | — |
| | $ | 192.7 |
|
