Pension Plans (Tables) - Pension Benefits

12 Months Ended

May 31, 2022

Components of Net Periodic Pension and Postretirement Costs

Net periodic pension cost consisted of the following for the year ended May 31:

	U.S. Plans									Non-U.S. Plans
(In thousands)	2022			2021			2020			2022			2021			2020
Service cost	$	47,655		$	44,520		$	39,425		$	5,023		$	6,355		$	5,400
Interest cost		15,366			15,223			20,415			4,948			5,308			4,842
Expected return on plan assets		(41,544	)		(33,115	)		(34,291	)		(7,691	)		(7,286	)		(7,118	)
Amortization of:
Prior service cost (credit)		5			8			9			(139	)		(150	)		(36	)
Net actuarial losses recognized		16,900			30,005			18,516			465			2,377			2,029
Curtailment/settlement losses		16			-			-			7			356			86
Net Pension Cost	$	38,398		$	56,641		$	44,074		$	2,613		$	6,960		$	5,203

Changes in Benefit Obligations and Plan Assets

The changes in benefit obligations and plan assets, as well as the funded status of our pension plans at May 31, 2022 and 2021, were as follows:

	U.S. Plans						Non-U.S. Plans
(In thousands)	2022			2021			2022			2021
Benefit obligation at beginning of year	$	822,073		$	762,739		$	232,028		$	210,278
Service cost		47,655			44,520			5,023			6,355
Interest cost		15,366			15,223			4,948			5,308
Benefits paid		(59,795	)		(64,139	)		(7,657	)		(9,248	)
Participant contributions		-			-			1,138			1,140
Plan amendments		-			-			293			-
Plan settlements/curtailments		(190	)		-			(1,330	)		(2,342	)
Actuarial (gains)/losses		(121,374	)		63,730			(34,638	)		(7,774	)
Premiums paid		-			-			(107	)		(103	)
Currency exchange rate changes		-			-			(17,164	)		28,414
Benefit Obligation at End of Year	$	703,735		$	822,073		$	182,534		$	232,028
Fair value of plan assets at beginning of year	$	672,377		$	516,550		$	239,853		$	194,874
Actual (loss) return on plan assets		(61,036	)		157,702			(25,430	)		21,350
Employer contributions		65,604			62,264			4,626			7,119
Participant contributions		-			-			1,138			1,140
Benefits paid		(59,795	)		(64,139	)		(7,657	)		(9,248	)
Premiums paid		-			-			(107	)		(103	)
Plan settlements/curtailments		(190	)		-			(1,330	)		(2,327	)
Currency exchange rate changes		-			-			(17,718	)		27,048
Fair Value of Plan Assets at End of Year	$	616,960		$	672,377		$	193,375		$	239,853
(Deficit)/Surplus of plan assets versus benefit obligations at end of year	$	(86,775	)	$	(149,696	)	$	10,841		$	7,825
Net Amount Recognized	$	(86,775	)	$	(149,696	)	$	10,841		$	7,825
Accumulated Benefit Obligation	$	610,433		$	702,315		$	172,141		$	217,012

Amounts Recognized in Consolidated Balance Sheet

Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2022 and 2021 are as follows:

	U.S. Plans						Non-U.S. Plans
(In thousands)	2022			2021			2022			2021
Noncurrent assets	$	77		$	-		$	22,399		$	22,698
Current liabilities		(8	)		(8	)		(443	)		(471	)
Noncurrent liabilities		(86,844	)		(149,688	)		(11,115	)		(14,402	)
Net Amount Recognized	$	(86,775	)	$	(149,696	)	$	10,841		$	7,825

Relationship between Plans Benefit Obligations and Assets

The following table summarizes the relationship between our plans' benefit obligations and assets:

	U.S. Plans
	2022				2021
(In thousands)	Benefit Obligation		Plan Assets		Benefit Obligation		Plan Assets
Plans with projected benefit obligations in excess of plan assets	$	702,511	$	615,659	$	822,073	$	672,377
Plans with accumulated benefit obligations in excess of plan assets		10,542		10,024		702,315		672,377
Plans with assets in excess of projected benefit obligations		1,224		1,301		-		-
Plans with assets in excess of accumulated benefit obligations		599,891		606,936		-		-
	Non-U.S. Plans
	2022				2021
(In thousands)	Benefit Obligation		Plan Assets		Benefit Obligation		Plan Assets
Plans with projected benefit obligations in excess of plan assets	$	36,607	$	25,049	$	45,294	$	30,421
Plans with accumulated benefit obligations in excess of plan assets		32,808		22,844		43,522		30,421
Plans with assets in excess of projected benefit obligations		145,927		168,326		186,734		209,432
Plans with assets in excess of accumulated benefit obligations		139,333		170,531		173,490		209,432

Pretax Net Actuarial (Loss) Gain and Prior Service (Cost) Recognized in Accumulated Other Comprehensive Income (Loss) not Affecting Retained Earnings

The following table presents the pretax net actuarial loss and prior service (cost) recognized in accumulated other comprehensive income (loss) not affecting retained earnings:

	U.S. Plans						Non-U.S. Plans
(In thousands)	2022			2021			2022			2021
Net actuarial loss	$	(214,607	)	$	(250,317	)	$	(25,984	)	$	(30,045	)
Prior service (costs) credits		(7	)		(12	)		518			1,023
Total recognized in accumulated other comprehensive    income not affecting retained earnings	$	(214,614	)	$	(250,329	)	$	(25,466	)	$	(29,022	)

Changes Recognized in Other Comprehensive Income

The following table includes the changes recognized in other comprehensive income:

		U.S. Plans						Non-U.S. Plans
(In thousands)		2022			2021			2022			2021
Changes in plan assets and benefit obligations recognized in other    comprehensive income:
	Prior service cost	$	-		$	-		$	294		$	-
	Net (gain) arising during the year		(18,794	)		(60,857	)		(1,517	)		(21,838	)
	Effect of exchange rates on amounts included in AOCI		-			-			(1,999	)		6,465
Amounts recognized as a component of net periodic benefit cost:
	Amortization or curtailment recognition of prior service (cost) benefit		(5	)		(8	)		139			150
	Amortization or settlement recognition of net (loss)		(16,916	)		(30,005	)		(473	)		(2,748	)
	Total recognized in other comprehensive (income)	$	(35,715	)	$	(90,870	)	$	(3,556	)	$	(17,971	)

Weighted-Average Assumptions used to Determine Benefit Obligations and Net Periodic and Postretirement Costs

The following weighted-average assumptions were used to determine our year-end benefit obligations and net periodic pension cost under the plans:

	U.S. Plans						Non-U.S. Plans
Year-End Benefit Obligations	2022			2021			2022			2021
Discount rate		4.43	%		2.75	%		4.02	%		2.72	%
Rate of compensation increase		3.21	%		3.19	%		2.94	%		2.91	%

	U.S. Plans									Non-U.S. Plans
Net Periodic Pension Cost	2022			2021			2020			2022			2021			2020
Discount rate		2.76	%		2.78	%		3.65	%		2.72	%		2.49	%		2.61	%
Expected return on plan assets		6.50	%		7.00	%		7.40	%		3.46	%		3.30	%		3.91	%
Rate of compensation increase		3.19	%		3.19	%		3.80	%		2.91	%		2.86	%		2.86	%

Weighted-Average Actual and Target Allocation of Plan Assets

The following tables illustrate the weighted-average actual and target allocation of plan assets:

	U.S. Plans
	Target Allocation			Actual Asset Allocation
(Dollars in millions)	as of May 31, 2022			2022		2021
Equity securities		55	%	$	326.2	$	387.1
Fixed income securities		20	%		117.0		112.0
Multi-class		20	%		136.6		150.8
Cash		5	%		37.0		22.3
Other					0.2		0.2
Total assets		100	%	$	617.0	$	672.4
	Non-U.S. Plans
	Target Allocation			Actual Asset Allocation
(Dollars in millions)	as of May 31, 2022			2022		2021
Equity securities		37	%	$	69.2	$	103.4
Fixed income securities		52	%		101.1		108.2
Cash					0.1		0.1
Property and other		11	%		23.0		28.2
Total assets		100	%	$	193.4	$	239.9

Pension Plan Assets Categorized using Fair Value Hierarchy

The following tables present our pension plan assets as categorized using the fair value hierarchy at May 31, 2022 and 2021:

U.S. Plans
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at May 31, 2022
U.S. Treasury and other government	$	-	$	34,902	$	-	$	34,902
State and municipal bonds		-		576		-		576
Foreign bonds		-		1,150		-		1,150
Mortgage-backed securities		-		10,254		-		10,254
Corporate bonds		-		23,883		-		23,883
Stocks - large cap		30,295		-		-		30,295
Mutual funds - equity		-		295,905		-		295,905
Mutual funds - multi-class		-		136,583		-		136,583
Mutual funds - fixed		-		16,368		-		16,368
Cash and cash equivalents		37,004		-		-		37,004
Limited partnerships		-		-		166		166
Investments measured at NAV (1)								29,874
Total	$	67,299	$	519,621	$	166	$	616,960

(1)In accordance with Subtopic 820-10, Fair Value Measurements and Disclosures, certain investments that are measured at fair value using the net asset value ("NAV") per share practical expedient have not been classified in the fair value hierarchy. The investments that are measured at fair value using NAV per share included in the table above are intended to permit reconciliation of the fair value hierarchy to the fair value of the plan assets at the end of each period.

Non-U.S. Plans
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at May 31, 2022
Pooled equities	$	-	$	68,067	$	-	$	68,067
Pooled fixed income		-		100,151		-		100,151
Foreign bonds		-		920		-		920
Insurance contracts		-		-		23,013		23,013
Mutual funds		-		1,115		-		1,115
Cash and cash equivalents		109		-		-		109
Total	$	109	$	170,253	$	23,013	$	193,375

U.S. Plans
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at May 31, 2021
U.S. Treasury and other government	$	-	$	20,752	$	-	$	20,752
State and municipal bonds		-		767		-		767
Foreign bonds		-		1,068		-		1,068
Mortgage-backed securities		-		17,628		-		17,628
Corporate bonds		-		42,370		-		42,370
Stocks - large cap		40,332		-		-		40,332
Mutual funds - equity		-		346,790		-		346,790
Mutual funds - multi-class		-		150,838		-		150,838
Mutual funds - fixed		-		29,440		-		29,440
Cash and cash equivalents		22,224		-		-		22,224
Limited partnerships		-		-		168		168
Total	$	62,556	$	609,653	$	168	$	672,377

Non-U.S. Plans
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at May 31, 2021
Pooled equities	$	-	$	101,975	$	-	$	101,975
Pooled fixed income		-		107,457		-		107,457
Foreign bonds		-		717		-		717
Insurance contracts		-		-		28,230		28,230
Mutual funds		-		1,397		-		1,397
Cash and cash equivalents		77		-		-		77
Total	$	77	$	211,546	$	28,230	$	239,853

Activity that Occurred for Level Three Assets

The following table includes the activity that occurred during the years ended May 31, 2022 and 2021 for our Level 3 assets:

			Actual Return on Plan Assets For:
	Balance at		Assets Still Held			Assets Sold		Purchases, Sales and			Balance at
(In thousands)	Beginning of Period		at Reporting Date			During Year		Settlements, net (1)			End of Period
Year ended May 31, 2022	$	28,398		(1,009	)		-		(4,210	)	$	23,179
Year ended May 31, 2021		27,437		455			-		506			28,398

(1)Includes the impact of exchange rate changes during the year.