OSHKOSH CORPORATION NOTES OF CONSOLIDATED FINANCIAL STATEMENTS
Post-Employment Benefits Year Ended December 31,
2025
2024
2023
Components of net periodic post-employment benefit cost: Service cost
$
1.4 $
1.7 $
1.7 2.1
Interest cost
2.4
2.5
Amortization of prior service cost Amortization of net actuarial gain
(1.4) (0.1)
(1.5)
(1.4) (0.2)
—
Net periodic post-employment benefit cost
$
2.3 $
2.7 $
2.2
Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial (gain) loss
$
6.7 $
(5.1)
$
7.5 1.4 0.2 9.1
Amortization of prior service cost Amortization of net actuarial gain
1.4 0.1
1.5
—
$
8.2 $
(3.6)
$
Weighted-average assumptions: Discount rate Expected return on plan assets
5.41%
4.76%
4.95%
n/a n/a Components of net periodic benefit cost other than “Service cost” and “Expenses paid” are included in “Miscellaneous, net” in the Consolidated Statements of Income. n/a Amounts expected to be recognized in pension benefit costs during 2026 included in “Accumulated other comprehensive loss” in the Consolidated Balance Sheet at December 31, 2025 are prior service costs of $1.6 million ($1.2 million net of tax) and unrecognized net actuarial gains of $5.7 million ($4.4 million net of tax). The Company’s policy is to fund the pension plans in amounts that comply with contribution limits imposed by law. The Company expects to make contributions to its pension plans of approximately $5 million in 2026. The Company’s Board of Directors has appointed an Investment Committee (Committee), which consists of members of management, to manage the investment of the Company’s pension plan assets. The Committee has established and operates under an Investment Policy. The Committee determines the asset allocation and target ranges based upon periodic asset/liability studies and capital market projections. The Committee retains external investment managers to invest the assets and an adviser to monitor the performance of the investment managers. The Investment Policy prohibits certain investment transactions, such as commodity contracts, margin transactions, short selling and investments in Company securities, unless the Committee gives prior approval. The weighted average of the Company’s pension plan asset allocations and target allocations at December 31, 2025 by asset category for the Company's pension plans managed by the Committee, were as follows: Target % Actual Asset Category: Fixed income 30% - 40% 35% Large-cap equity 25% - 40% 33% Mid-cap equity 10% - 20% 17% Small-cap equity 5% - 15% 14% Other 0% - 5% 1% 100% The Company’s pension plan investment strategy is based on an expectation that, over time, equity securities will provide higher returns than debt securities. The plans primarily minimize the risk of larger losses under this strategy through
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