Comprehensive Income (Loss) (Tables)

12 Months Ended

May 31, 2023

Summary of Tax Effects of Each Component of Other Comprehensive Income (Loss)

The following table summarizes the tax effects of each component of other comprehensive income (loss) for the prior three fiscal years:


	2023									2022									2021
(In thousands)	Before- Tax			Tax			Net-of- Tax			Before- Tax			Tax			Net-of- Tax			Before- Tax		Tax			Net-of- Tax
Foreign currency translation	$	(6,774	)	$	(39	)	$	(6,813	)	$	(15,808	)	$	(1,281	)	$	(17,089	)	$	9,958	$	963		$	10,921
Pension liability adjustment		5,915			(1,401	)		4,514			12,647			(2,936	)		9,711			7,684		(1,753	)		5,931
Cash flow hedges		2,585			(615	)		1,970			(79,677	)		18,818			(60,859	)		83,434		(19,682	)		63,752
Other comprehensive income (loss)	$	1,726		$	(2,055	)	$	(329	)	$	(82,838	)	$	14,601		$	(68,237	)	$	101,076	$	(20,472	)	$	80,604

Components of Changes in AOCI

he components of the changes in AOCI at the end of the prior three fiscal years were as follows:


										Accumulated
	Foreign			Pension			Cash			Other
	Currency			Liability			Flow			Comprehensive
(In thousands)	Translation			Adjustment			Hedges			Income (Loss)
Balance at May 31, 2021	$	1,779		$	(15,955	)	$	59,563		$	45,387
Other comprehensive income (loss) before reclassifications		(15,808	)		12,101			19,175			15,468
Reclassification adjustments to income (a)		-			546			(98,852	)		(98,306	)
Income tax effect		(1,281	)		(2,936	)		18,818			14,601
Balance at May 31, 2022	$	(15,310	)	$	(6,244	)	$	(1,296	)	$	(22,850	)
Other comprehensive income (loss) before reclassifications		(6,774	)		559			(22,873	)		(29,088	)
Reclassification adjustments to income (a)		-			5,356			25,458			30,814
Income tax effect		(39	)		(1,401	)		(615	)		(2,055	)
Balance at May 31, 2023	$	(22,123	)	$	(1,730	)	$	674		$	(23,179	)

(a)

The statement of earnings classification of amounts reclassified to net income include:

(1)

Pension liability adjustment – As disclosed in “Note M – Employee Pension Plans”, includes a reclassification adjustment of $4,774 related to the pension lift-out transaction to transfer a portion of the total projected benefit obligation of the Gerstenslager Company Bargaining Unit Employees’ Pension Plan to a third-party insurance company. As a result of this transaction: 1) we incurred a non-cash settlement charge of $4,774 recorded in miscellaneous income (expense), net in the consolidated statement of earnings; 2) we were relieved of all responsibility for these pension obligations; and 3) the insurance company is now required to pay and administer the retirement benefits owed to 220 beneficiaries; and

(2)

Cash flow hedges – disclosed in “Note R – Derivative Financial Instruments and Hedging Activities.”