MILLERKNOLL, INC.
For the period ended Mar 1, 2025. Filed Mar 31, 2025.
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Mar 1, 2025 · Filed Mar 31, 2025
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Employee Benefit Plans
- Employee Benefit Plans
One of the Company's wholly owned foreign subsidiaries has a defined-benefit pension plan based upon an average final pay benefit calculation. The measurement date for this plan is the last day of the fiscal year and the plan is frozen to new participants.
Prior to the end of the second quarter of fiscal 2025 the Knoll subsidiary hadone domestic defined-benefit pension plan covering eligible U.S. nonunion employees. The measurement date for this plan is the last day of the fiscal year and the plan is frozen to new participants. During the fourth quarter of the year ended June 1, 2024, the Company began the process of terminating the defined-benefit pension plan held by the Knoll subsidiary. In the second quarter of fiscal 2025, the Company completed the termination of the the defined-benefit pension plan held by the Knoll subsidiary, which was fully funded as of November 30, 2024. During the second quarter of fiscal 2025, the Company settled its obligations under the plan by providing lump-sum payments of $39.9 million to eligible participants who elected to receive them and entering into an annuity purchase contract for the remaining liability of $84.7 million. The Company recognized a pension plan termination gain of $1.5 million during the nine months ended March 1, 2025, which represents the acceleration of unamortized net actuarial losses previously included within accumulated other comprehensive income. The gain was recorded in Other (income) expense, net within our Condensed Consolidated Statements of Comprehensive Income.
The following table summarizes the components of net periodic benefit cost for the Company's defined benefit pension plans:
| Pension Benefits | ||||
|---|---|---|---|---|
| Three Months Ended March 1, 2025 | Three Months Ended March 2, 2024 | |||
| (In millions) | Domestic | International | Domestic | International |
| Interest cost | $— | $1.0 | $1.5 | $1.0 |
| Expected return on plan assets(1) | — | (1.3) | (2.3) | (1.2) |
| Expected administrative expenses | — | — | 0.2 | — |
| Net amortization loss | — | 0.2 | — | — |
| Net periodic benefit (income) cost | $— | $(0.1) | $(0.6) | $(0.2) |
| Nine Months Ended March 1, 2025 · Nine Months Ended March 2, 2024 | ||||
| (In millions) | Domestic | International | Domestic | International |
| Service cost | $0.9 | $— | $— | $— |
| Interest cost | 2.7 | 3.1 | 4.5 | 3.0 |
| Expected return on plan assets(1) | (2.0) | (4.1) | (6.9) | (3.7) |
| Expected administrative expenses | — | — | 0.6 | — |
| Net amortization loss | — | 0.5 | — | — |
| Pension plan termination gain | (1.5) | — | — | — |
| Net periodic benefit cost (income) | $0.1 | $(0.5) | $(1.8) | $(0.7) |
(1)The weighted-average expected long-term rate of return on plan assets is 4.8%.
All of the amounts in the tables above for pension benefit cost (income), other than Service cost, were included in Other (income) expense, net within our Condensed Consolidated Statements of Comprehensive Income.
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