Pension Plans (Tables) - Pension Benefits

12 Months Ended

May 31, 2023

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)	2023			2022			2021			2023			2022			2021
Service cost	$	43,558		$	47,655		$	44,520		$	3,633		$	5,023		$	6,355
Interest cost		28,692			15,366			15,223			6,619			4,948			5,308
Expected return on plan assets		(38,144	)		(41,544	)		(33,115	)		(6,581	)		(7,691	)		(7,286	)
Amortization of:
Prior service cost (credit)		1			5			8			(116	)		(139	)		(150	)
Net actuarial losses recognized		17,948			16,900			30,005			473			465			2,377
Curtailment/settlement (gains) losses		(3	)		16			-			188			7			356
Net Pension Cost	$	52,052		$	38,398		$	56,641		$	4,216		$	2,613		$	6,960

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, 2023 and 2022, were as follows:

	U.S. Plans						Non-U.S. Plans
(In thousands)	2023			2022			2023			2022
Benefit obligation at beginning of year	$	703,735		$	822,073		$	182,534		$	232,028
Service cost		43,558			47,655			3,633			5,023
Interest cost		28,692			15,366			6,619			4,948
Benefits paid		(44,604	)		(59,795	)		(8,676	)		(7,657	)
Participant contributions		-			-			1,221			1,138
Plan amendments		4			-			(97	)		293
Plan settlements/curtailments		(137	)		(190	)		(2,852	)		(1,330	)
Actuarial (gains)		(34,075	)		(121,374	)		(16,004	)		(34,638	)
Premiums paid		-			-			(108	)		(107	)
Currency exchange rate changes		-			-			(7,458	)		(17,164	)
Benefit Obligation at End of Year	$	697,173		$	703,735		$	158,812		$	182,534
Fair value of plan assets at beginning of year	$	616,960		$	672,377		$	193,375		$	239,853
Actual (loss) on plan assets		(4,294	)		(61,036	)		(15,239	)		(25,430	)
Employer contributions		63,561			65,604			6,647			4,626
Participant contributions		-			-			1,221			1,138
Benefits paid		(44,604	)		(59,795	)		(8,676	)		(7,657	)
Premiums paid		-			-			(108	)		(107	)
Plan settlements/curtailments		(137	)		(190	)		(2,852	)		(1,330	)
Currency exchange rate changes		-			-			(8,248	)		(17,718	)
Fair Value of Plan Assets at End of Year	$	631,486		$	616,960		$	166,120		$	193,375
(Deficit)/Surplus of plan assets versus benefit obligations at end of year	$	(65,687	)	$	(86,775	)	$	7,308		$	10,841
Net Amount Recognized	$	(65,687	)	$	(86,775	)	$	7,308		$	10,841
Accumulated Benefit Obligation	$	598,094		$	610,433		$	148,635		$	172,141

Amounts Recognized in Consolidated Balance Sheet

Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2023 and 2022 are as follows:

	U.S. Plans						Non-U.S. Plans
(In thousands)	2023			2022			2023			2022
Noncurrent assets	$	279		$	77		$	15,641		$	22,399
Current liabilities		(8	)		(8	)		(659	)		(443	)
Noncurrent liabilities		(65,958	)		(86,844	)		(7,674	)		(11,115	)
Net Amount Recognized	$	(65,687	)	$	(86,775	)	$	7,308		$	10,841

Relationship between Plans Benefit Obligations and Assets

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

	U.S. Plans
	2023				2022
(In thousands)	Benefit Obligation		Plan Assets		Benefit Obligation		Plan Assets
Plans with projected benefit obligations in excess of plan assets	$	696,280	$	630,315	$	702,511	$	615,659
Plans with accumulated benefit obligations in excess of plan assets		44		-		10,542		10,024
Plans with assets in excess of projected benefit obligations		893		1,171		1,224		1,301
Plans with assets in excess of accumulated benefit obligations		598,050		631,486		599,891		606,936
	Non-U.S. Plans
	2023				2022
(In thousands)	Benefit Obligation		Plan Assets		Benefit Obligation		Plan Assets
Plans with projected benefit obligations in excess of plan assets	$	26,918	$	18,585	$	36,607	$	25,049
Plans with accumulated benefit obligations in excess of plan assets		24,837		17,839		32,808		22,844
Plans with assets in excess of projected benefit obligations		131,894		147,535		145,927		168,326
Plans with assets in excess of accumulated benefit obligations		123,798		148,281		139,333		170,531

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

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

	U.S. Plans						Non-U.S. Plans
(In thousands)	2023			2022			2023			2022
Net actuarial loss	$	(205,025	)	$	(214,607	)	$	(29,764	)	$	(25,984	)
Prior service (costs) credits		(10	)		(7	)		530			518
Total recognized in accumulated other comprehensive    income not affecting retained earnings	$	(205,035	)	$	(214,614	)	$	(29,234	)	$	(25,466	)

Changes Recognized in Other Comprehensive loss (Income)

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

		U.S. Plans						Non-U.S. Plans
(In thousands)		2023			2022			2023			2022
Changes in plan assets and benefit obligations recognized in other    comprehensive income:
	Prior service cost (credit)	$	4		$	-		$	(98	)	$	294
	Net loss (gain) arising during the year		8,363			(18,794	)		5,816			(1,517	)
	Effect of exchange rates on amounts included in AOCI		-			-			(1,405	)		(1,999	)
Amounts recognized as a component of net periodic benefit cost:
	Amortization or curtailment recognition of prior service (cost) benefit		(1	)		(5	)		115			139
	Amortization or settlement recognition of net (loss)		(17,945	)		(16,916	)		(660	)		(473	)
	Total recognized in other comprehensive (income) loss	$	(9,579	)	$	(35,715	)	$	3,768		$	(3,556	)

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	2023			2022			2023			2022
Discount rate		5.26	%		4.43	%		4.88	%		4.02	%
Rate of compensation increase		3.39	%		3.21	%		2.97	%		2.94	%

	U.S. Plans									Non-U.S. Plans
Net Periodic Pension Cost	2023			2022			2021			2023			2022			2021
Discount rate		4.43	%		2.76	%		2.78	%		4.02	%		2.72	%		2.49	%
Expected return on plan assets		6.50	%		6.50	%		7.00	%		3.58	%		3.46	%		3.30	%
Rate of compensation increase		3.21	%		3.19	%		3.19	%		2.94	%		2.91	%		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, 2023			2023		2022
Equity securities		55	%	$	340.1	$	326.2
Fixed income securities		20	%		129.2		117.0
Multi-class		20	%		125.3		136.6
Cash		5	%		36.6		37.0
Other					0.3		0.2
Total assets		100	%	$	631.5	$	617.0
	Non-U.S. Plans
	Target Allocation			Actual Asset Allocation
(Dollars in millions)	as of May 31, 2023			2023		2022
Equity securities		40	%	$	61.8	$	69.2
Fixed income securities		48	%		81.5		101.1
Cash					0.1		0.1
Property and other		12	%		22.7		23.0
Total assets		100	%	$	166.1	$	193.4

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, 2023 and 2022:

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, 2023
U.S. Treasury and other government	$	-	$	49,297	$	-	$	49,297
State and municipal bonds		-		450		-		450
Foreign bonds		-		690		-		690
Mortgage-backed securities		-		8,515		-		8,515
Corporate bonds		-		17,376		-		17,376
Stocks - large cap		35,467		-		-		35,467
Mutual funds - equity		-		304,590		-		304,590
Mutual funds - multi-class		-		125,345		-		125,345
Mutual funds - fixed		-		2,553		-		2,553
Cash and cash equivalents		36,573		-		-		36,573
Limited partnerships		-		-		170		170
Futures contracts		-		-		112		112
Investments measured at NAV (1)								50,348
Total	$	72,040	$	508,816	$	282	$	631,486

(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, 2023
Pooled equities	$	-	$	61,827	$	-	$	61,827
Pooled fixed income		-		80,650		-		80,650
Foreign bonds		-		774		-		774
Insurance contracts		-		-		19,136		19,136
Mutual funds - Real Estate		-		3,587		-		3,587
Cash and cash equivalents		146		-		-		146
Total	$	146	$	146,838	$	19,136	$	166,120

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

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

Activity that Occurred for Level Three Assets

The following table includes the activity that occurred during the years ended May 31, 2023 and 2022 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, 2023	$	23,179		(2,399	)		-		(1,362	)	$	19,418
Year ended May 31, 2022		28,398		(1,009	)		-		(4,210	)		23,179

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