XML 67 R41.htm IDEA: XBRL DOCUMENT v3.22.2
Employee Pension Plans (Tables)
12 Months Ended
May 31, 2022
Components of Net Periodic Pension for Defined Benefit Pension and Other Postretirement Benefit Plans

The following table summarizes the components of net periodic pension for our defined benefit pension and other postretirement benefit plans for the fiscal years ended May 31:

 

(in thousands)

 

2022

 

 

2021

 

 

2020

 

Defined benefit plans:

 

 

 

 

 

 

 

 

 

Interest cost

 

 

2,621

 

 

 

1,205

 

 

 

1,352

 

Return on plan assets

 

 

(4,473

)

 

 

(4,289

)

 

 

(1,928

)

Net amortization and deferral costs

 

 

546

 

 

 

3,058

 

 

 

628

 

Settlement cost (2)

 

 

1,357

 

 

 

18

 

 

 

-

 

Defined contribution plans

 

 

18,036

 

 

 

17,562

 

 

 

16,495

 

Net periodic benefit cost (1)

 

$

18,087

 

 

$

17,554

 

 

$

16,547

 

 

(1)
During fiscal year 2022, we also incurred $85 (in thousands) in net periodic benefit cost related to the Tempel Steel Company Postretirement Benefit Plan.
(2)
Relates to the settlement of certain participant balances within the Gerstenslager Plan.
Weighted-Average Assumptions Used used to Determine Unfunded Benefit Obligation and Net Periodic Benefit Cost

The following weighted-average assumptions were used to determine the unfunded benefit obligation and net periodic benefit cost:

 

 

 

2022

 

 

2021

 

 

2020

 

Benefit obligation:

 

 

 

 

 

 

 

 

 

Discount rate

 

 

4.27

%

 

 

2.90

%

 

 

2.65

%

Net periodic pension cost:

 

 

 

 

 

 

 

 

 

Discount rate

 

 

2.74

%

 

 

2.65

%

 

 

3.57

%

Expected long-term rate of return

 

 

6.75

%

 

 

7.00

%

 

 

7.00

%

 

Reconciliation of the Changes in the Projected Benefit Obligation and Fair Value of Plan Assets and the Funded Status for Defined-benefit Plans

The following tables provide a reconciliation of the changes in the projected benefit obligation and the fair value of plan assets and the funded status for our defined benefit plans:

 

 

 

Pension Benefits

 

 

Other Benefits

 

(in thousands)

 

2022

 

 

2021(1)

 

 

2022

 

 

2021(1)

 

Change in benefit obligation

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation, beginning of year

 

$

41,195

 

 

$

46,167

 

 

$

-

 

 

$

-

 

Service cost

 

 

-

 

 

 

-

 

 

 

15

 

 

 

-

 

Interest cost

 

 

2,621

 

 

 

1,205

 

 

 

70

 

 

 

-

 

Actuarial gain

 

 

(24,755

)

 

 

(4,814

)

 

 

(873

)

 

 

-

 

Benefits paid

 

 

(4,511

)

 

 

(1,345

)

 

 

(125

)

 

 

-

 

Settlements

 

 

(2,929

)

 

 

(18

)

 

 

-

 

 

 

-

 

Participant contributions

 

 

-

 

 

 

-

 

 

 

8

 

 

 

-

 

Benefit obligations acquired

 

 

101,946

 

 

 

-

 

 

 

4,982

 

 

 

-

 

Benefits obligation, end of year

 

$

113,567

 

 

$

41,195

 

 

$

4,077

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in plan assets

 

 

 

 

 

 

 

 

 

 

 

 

Fair value, beginning of year

 

$

33,136

 

 

$

28,510

 

 

$

-

 

 

$

-

 

Return on plan assets

 

 

(11,379

)

 

 

4,289

 

 

 

-

 

 

 

-

 

Company contributions

 

 

2,308

 

 

 

1,700

 

 

 

117

 

 

 

-

 

Benefits paid

 

 

(4,511

)

 

 

(1,345

)

 

 

(125

)

 

 

-

 

Settlements

 

 

(2,929

)

 

 

(18

)

 

 

-

 

 

 

-

 

Participant contributions

 

 

-

 

 

 

-

 

 

 

8

 

 

 

-

 

Plan assets acquired

 

 

66,768

 

 

 

-

 

 

 

-

 

 

 

-

 

Fair value, end of year

 

 

83,393

 

 

 

33,136

 

 

 

-

 

 

 

-

 

Funded status

 

$

(30,174

)

 

$

(8,059

)

 

$

(4,077

)

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts recognized in the consolidated balance sheets consist of:

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

$

(30,174

)

 

$

(8,059

)

 

$

(4,077

)

 

$

-

 

Accumulated other comprehensive loss

 

 

6,736

 

 

 

17,541

 

 

 

(873

)

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts recognized in accumulated other comprehensive loss consist of:

 

 

 

 

 

 

 

 

 

 

 

 

Net loss (income)

 

 

6,736

 

 

 

17,541

 

 

 

(873

)

 

 

-

 

Total

 

$

6,736

 

 

$

17,541

 

 

$

(873

)

 

$

-

 

 

(1)
Activity presented for fiscal 2021 does not include the Tempel defined benefit domestic funded pension plan and other postretirement plans. These plans were assumed on December 1, 2021 in conjunction with the acquisition of Tempel. See “Note Q – Acquisitions" for additional information.
Other Changes in Plan Assets And Benefit Obligations Recognized in OCI

The following table shows other changes in plan assets and benefit obligations recognized in OCI during the fiscal years ended May 31:

 

 

 

Pension Benefits

 

 

Other Benefits

 

(in thousands)

 

2022

 

 

2021 (1)

 

 

2022

 

 

2021 (1)

 

Net (gain) loss

 

$

(8,903

)

 

$

7,097

 

 

$

(873

)

 

$

-

 

Amortization of net (gain) loss

 

 

(546

)

 

 

775

 

 

 

-

 

 

 

-

 

Settlement cost

 

 

(1,357

)

 

 

-

 

 

 

-

 

 

 

 

Total recognized in other comprehensive (gain) loss

 

$

(10,806

)

 

$

7,872

 

 

$

(873

)

 

$

-

 

Total recognized in net periodic benefit cost and other comprehensive income

 

$

(10,704

)

 

$

(7,898

)

 

$

(787

)

 

$

-

 

 

(1)
Activity presented for fiscal 2021 does not include the Tempel defined benefit domestic funded pension plan and other postretirement plans. These plans were assumed on December 1, 2021 in conjunction with the acquisition of Tempel. See “Note Q – Acquisitions" for additional information
Plan Assets for Defined Benefit Plan

Plan assets for the defined benefit plans consisted principally of the following as of the respective measurement dates:

 

 

 

May 31,

 

 

May 31,

 

 

 

2022

 

 

2021

 

Asset category:

 

 

 

 

 

 

Equity securities

 

 

45

%

 

 

48

%

Fixed-income funds

 

 

39

%

 

 

38

%

Hedge funds

 

 

11

%

 

 

0

%

Other

 

 

5

%

 

 

14

%

Total

 

 

100

%

 

 

100

%

Estimated Future Benefits Expected to be Paid

The following estimated future benefits, which reflect expected future service, as appropriate, are expected to be paid under the defined benefit and other postretirement plans during the fiscal years as follows:

 

(in thousands)

 

Pension Benefits

 

 

Other Benefits

 

2023

 

$

7,449

 

 

$

387

 

2024

 

$

7,086

 

 

$

368

 

2025

 

$

7,255

 

 

$

355

 

2026

 

$

7,463

 

 

$

336

 

2027

 

$

7,860

 

 

$

316

 

2028-2032

 

$

38,243

 

 

$

1,372

 

Fair Value, Measurements, Recurring  
Plan Assets for Defined Benefit Plan

The following table sets forth, by level within the fair value hierarchy, a summary of the defined benefit plans' assets measured at fair value on a recurring basis at May 31, 2022:

 

 

 

 

 

 

Quoted

 

 

Significant

 

 

 

 

 

 

 

 

 

Prices

 

 

Other

 

 

Significant

 

 

 

 

 

 

in Active

 

 

Observable

 

 

Unobservable

 

 

 

 

 

 

Markets

 

 

Inputs

 

 

Inputs

 

(in thousands)

 

Fair Value

 

 

(Level 1)

 

 

(Level 2)

 

 

(level 3)

 

Investment:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,238

 

 

$

1,238

 

 

$

-

 

 

$

-

 

Fixed-income funds

 

 

11,287

 

 

 

11,287

 

 

 

-

 

 

 

-

 

Equity funds

 

 

37,352

 

 

 

37,352

 

 

 

-

 

 

 

-

 

Administrative funds

 

 

2,946

 

 

 

2,946

 

 

 

-

 

 

 

-

 

Commingled fund investments

 

 

 

 

 

 

 

 

 

 

 

 

  measured at net asset value1:

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-income funds

 

 

21,056

 

 

 

-

 

 

 

-

 

 

 

-

 

Hedge funds

 

 

9,514

 

 

 

-

 

 

 

-

 

 

 

-

 

Total

 

$

83,393

 

 

$

52,823

 

 

$

-

 

 

$

-

 

 

 

1 Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy.

 

The following table sets forth, by level within the fair value hierarchy, a summary of the defined benefit plans' assets measured at fair value on a recurring basis at May 31, 2021:

 

 

 

 

 

 

Quoted

 

 

Significant

 

 

 

 

 

 

 

 

 

Prices

 

 

Other

 

 

Significant

 

 

 

 

 

 

in Active

 

 

Observable

 

 

Unobservable

 

 

 

 

 

 

Markets

 

 

Inputs

 

 

Inputs

 

(in thousands)

 

Fair Value

 

 

(Level 1)

 

 

(Level 2)

 

 

(level 3)

 

Investment:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

1,664

 

 

$

1,664

 

 

$

-

 

 

$

-

 

Fixed-income funds

 

 

12,629

 

 

 

12,629

 

 

 

-

 

 

 

-

 

Equity funds

 

 

16,022

 

 

 

16,022

 

 

 

-

 

 

 

-

 

Administrative funds

 

 

2,821

 

 

 

2,821

 

 

 

-

 

 

 

-

 

Total

 

$

33,136

 

 

$

33,136

 

 

$

-

 

 

$

-