Pension and Defined Contribution Plans (Tables)

12 Months Ended

Aug. 31, 2025

Schedule of Domestic and International Pension Plans

The following tables reflect the status of our domestic (U.S. based) and international pension plans as of the dates presented (in millions):


	Domestic Plans				International Plans
	August 31,				August 31,
	2025		2024		2025		2024
Change in benefit obligation:
Benefit obligation at beginning of year	$	163.8	$	159.8	$	34.0	$	34.6
Service cost	4.6		3.6		0.8		0.9
Interest cost	7.8		7.8		1.9		2.0

Actuarial (gains) losses	(12.1)		3.7		(2.2)		(0.1)
Settlements	(95.2)		—		(1.4)		—

Benefits paid	(12.2)		(11.1)		(2.4)		(1.9)
Other	—		—		1.2		(1.5)
Benefit obligation at end of year	56.7		163.8		31.9		34.0
Change in plan assets:
Fair value of plan assets at beginning of year	134.5		132.7		34.6		32.1
Actual (loss) return on plan assets	(1.6)		9.5		(3.2)		3.2
Employer contributions	0.9		3.4		1.0		—
Benefits paid	(12.2)		(11.1)		(1.6)		(1.3)
Settlements	(95.2)		—		(2.6)		—

Other	—		—		0.7		0.6
Fair value of plan assets at end of year	26.4		134.5		28.9		34.6

Funded status at the end of year	$	(30.3)	$	(29.3)	$	(3.0)	$	0.6

Amounts recognized in the consolidated balance sheets consist of:
Non-current assets	$	5.4	$	8.4	$	4.3	$	4.9
Current liabilities	(3.4)		(4.2)		(0.4)		(0.3)
Non-current liabilities	(32.3)		(33.5)		(6.9)		(4.0)
Net amount recognized in consolidated balance sheets	$	(30.3)	$	(29.3)	$	(3.0)	$	0.6
Accumulated benefit obligation	$	55.6	$	162.5	$	29.0	$	31.8
Pre-tax amounts in accumulated other comprehensive loss:
Prior service cost	$	—	$	(0.1)	$	(0.2)	$	—
Net actuarial loss	(4.8)		(43.5)		12.4		(8.8)
Amounts in accumulated other comprehensive loss	$	(4.8)	$	(43.6)	$	12.2	$	(8.8)
Pensions plans in which benefit obligation exceeds plan assets:
Projected benefit obligation	$	35.7	$	37.7	$	7.3	$	4.3
Accumulated benefit obligation	34.6		36.4		4.4		2.9

Pensions plans in which plan assets exceed benefit obligation:
Projected benefit obligation	$	21.0	$	126.1	$	24.6	$	29.7
Accumulated benefit obligation	21.0		126.1		24.6		28.9
Plan assets	26.4		134.5		28.9		34.6

Schedule of Net Periodic Pension Cost

Net periodic pension cost during the periods presented included the following components before tax (in millions):


	Domestic Plans						International Plans
	2025		2024		2023		2025		2024		2023
Service cost	$	4.6	$	3.6	$	3.8	$	0.8	$	0.9	$	0.8
Interest cost	7.8		7.8		7.4		1.9		2.0		1.6
Expected return on plan assets	(6.7)		(6.7)		(7.5)		(1.7)		(2.0)		(2.1)
Amortization of prior service cost	—		0.1		2.6		0.1		—		—

Recognized actuarial loss	1.6		1.7		2.4		1.0		1.6		0.6
Settlement loss (gain)	33.2		—		—		(2.3)		—		—
Net periodic pension cost	$	40.5	$	6.5	$	8.7	$	(0.2)	$	2.5	$	0.9

Schedule of Weighted Average Assumptions Used

Weighted average assumptions used in computing the benefit obligation are as follows:


	Domestic Plans				International Plans
	2025		2024		2025		2024
Discount rate	5.3	%	4.9	%	6.9	%	5.9	%
Rate of compensation increase	5.0	%	5.0	%	4.5	%	3.4	%

Weighted average assumptions used in computing net periodic pension cost are as follows:


	Domestic Plans						International Plans
	2025		2024		2023		2025		2024		2023
Discount rate	4.9	%	5.1	%	4.4	%	5.9	%	5.9	%	4.9	%
Expected return on plan assets	5.3	%	5.3	%	5.5	%	5.4	%	4.7	%	6.4	%
Rate of compensation increase	5.0	%	5.0	%	5.0	%	3.4	%	3.5	%	3.5	%

Schedule of Pension Plan Asset Allocation

Our pension plan asset allocation by asset category as of the dates presented is as follows:


	% of Plan Assets
	Domestic Plans				International Plans
	2025		2024		2025		2024
Equity securities	14.0	%	17.2	%	—	%	—	%
Fixed income securities	71.6	%	77.3	%	0.4	%	93.2	%
Multi-strategy investments	—	%	—	%	—	%	6.8	%
Real estate	14.4	%	5.5	%	—	%	—	%
Guaranteed insurance policies	—	%	—	%	99.6	%	—	%
Total	100.0	%	100.0	%	100.0	%	100.0	%

The following tables present the fair value of the domestic pension plan assets by major category as of the dates presented (in millions):


	Fair Value as of		Fair Value Measurements
	August 31, 2025		(Level 1)		(Level 2)		(Level 3)
Assets included in the fair value hierarchy:
Fixed-income investments	$	10.9	$	—	$	10.9	$	—
U.S. Treasury investments	5.2		—		5.2		—
Mutual funds:
Domestic large cap equity fund	1.7		1.7		—		—
Foreign equity fund	1.4		1.4		—		—
Collective trust: Domestic small cap equities	0.6		—		0.6		—
Short-term fixed income investments	2.8		2.8		—		—
Total assets in the fair value hierarchy	22.6
Assets calculated at net asset value:

Real estate fund	3.8
Total assets at net asset value	3.8
Total assets at fair value	$	26.4


	Fair Value as of		Fair Value Measurements
	August 31, 2024		(Level 1)	(Level 2)		(Level 3)
Assets included in the fair value hierarchy:
Fixed-income investments	$	63.8	—	$	63.8	—
US Treasury investments	34.4		—	34.4		—
Mutual funds:
Domestic large cap equity fund	11.5		11.5	—		—
Foreign equity fund	6.7		6.7	—		—
Collective trust: Domestic small cap equities	4.9		—	4.9		—
Short-term fixed income investments	5.8		5.8	—		—
Total assets in the fair value hierarchy	127.1
Assets calculated at net asset value:

Real estate fund	7.4
Total assets at net asset value	7.4
Total assets at fair value	$	134.5

The following tables present the fair value of the international pension plan assets by major category as of the dates presented (in millions):


	Fair Value as of		Fair Value Measurements

	August 31, 2025		(Level 1)		(Level 2)		(Level 3)


Short-term fixed income investments	$	0.1	$	0.1	$	—	$	—


Insurance policy	28.8		—		—		28.8
Total assets at fair value	$	28.9


	Fair Value as of		Fair Value Measurements

	August 31, 2024		(Level 1)		(Level 2)		(Level 3)


Short-term fixed income investments	$	0.2	$	0.2	$	—	$	—
Multi-strategy investments	2.3		—		2.3		—
Fixed-income investments	32.1		—		32.1		—




Total assets at fair value	$	34.6

Schedule of Reconciliation Fair Value Measurements

The following table presents a reconciliation of the beginning and ending balances of the fair value measurements using significant unobservable inputs (Level 3) (in millions):


	Year Ended August 31,
	2025
Beginning balance	$	—
Purchases	32.0
Unrealized loss	(3.2)
Ending balance	$	28.8

Schedule of Expected Benefit Payments

Benefit payments are expected to be paid as follows during the years ending August 31 (in millions):


	Domestic Plans		International Plans
2026	$	4.1	$	2.0
2027	4.1		2.1
2028	6.9		2.3
2029	6.0		2.4
2030	4.9		2.6
2031-2035	25.6		16.8

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details

ACUITY INC. (DE) 10-K