POSTRETIREMENT BENEFITS

12 Months Ended

May 31, 2011

Postemployment Benefits Disclosure Abstract

Postemployment Benefits Disclosure Text Block

NOTE M – POSTRETIREMENT BENEFITS

We sponsor several, unfunded-health-care-benefit plans for certain of our retired employees as well as post-retirement life insurance for certain key employees. Eligibility for these benefits is based upon various requirements. The following table illustrates the effect on operations of these plans for the three years ended May 31, 2011:

	U.S. Plans						Non-U.S. Plans
(In thousands)		2011		2010		2009		2011		2010		2009
Service cost - Benefits earned during the period	$	5	$	3	$	3	$	736	$	338	$	358
Interest cost on the accumulated obligation		439		569		576		925		664		688
Amortization of:
Prior service cost		(86)		(28)		(27)
Unrecognized losses		(191)		(137)		(96)		89		(139)
Net Periodic Postretirement Expense	$	167	$	407	$	456	$	1,750	$	863	$	1,046

The changes in benefit obligations of the plans at May 31, 2011 and 2010 were as follows:
		U.S. Plans				Non-U.S. Plans
(In thousands)		2011		2010		2011		2010
Accumulated postretirement benefit obligation at
beginning of year	$	7,936	$	8,584	$	14,974	$	8,133
Service cost		5		3		709		338
Interest cost		439		569		891		664
Benefit payments		(633)		(568)		(317)		(323)
Plan amendments				(592)
Medicare subsidy received		97		104
Actuarial (gains) losses		1,259		(164)		(33)		5,856
Currency exchange rate changes						1,333		306
Accumulated and accrued postretirement benefit
obligation at end of year	$	9,103	$	7,936	$	17,557	$	14,974
In determining the postretirement benefit amounts outlined above, measurement dates as of May 31 for each period were applied.

Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2011 and 2010 are as follows:
		U.S. Plans				Non-U.S. Plans
(In thousands)		2011		2010		2011		2010
Current liabilities	$	(672)	$	(578)	$	(380)	$	(315)
Noncurrent liabilities		(8,431)		(7,358)		(17,177)		(14,659)
Net Amount Recognized	$	(9,103)	$	(7,936)	$	(17,557)	$	(14,974)

The following table presents the pretax net actuarial gain (loss) and prior service credits recognized in accumulated other
comprehensive income (loss) not affecting retained earnings:
		U.S. Plans				Non-U.S. Plans
(In thousands)		2011		2010		2011		2010
Net actuarial gain (loss)	$	778	$	2,227	$	(2,943)	$	(2,824)
Prior service credits		689		776
Total recognized in accumulated other comprehensive
income not affecting retained earnings	$	1,467	$	3,003	$	(2,943)	$	(2,824)

The following table includes the changes recognized in other comprehensive income:
					U.S. Plans				Non-U.S. Plans
(In thousands)					2011		2010		2011		2010
Changes in plan assets and benefit obligations
	recognized in other comprehensive income:
		Prior service cost		$	-	$	(592)	$	-	$	-
		Net loss (gain) arising during the year*			1,259		(164)		(33)		5,799
		Effect of exchange rates on amounts included in AOCI							241		(57)
Amounts recognized as a component of net periodic
	benefit cost:
		Amortization or curtailment recognition of prior service
			credit (cost)		86		26
		Amortization or settlement recognition of net gain (loss)			191		138		(89)		137
		Total recognized in other comprehensive loss (income)		$	1,536	$	(592)	$	119	$	5,879
* Includes curtailment gains not recognized as a component of net periodic pension cost.

The following weighted-average assumptions were used to determine our year-end benefit obligations and net periodic postretirement
benefit costs under the plans:
		U.S. Plans			Non-U.S. Plans
Year-End Benefit Obligations		2011	2010		2011	2010
Discount rate		4.75%	5.75%		5.75%	5.75%
Current healthcare cost trend rate		7.87%	8.04%		7.00%	7.40%
Ultimate healthcare cost trend rate		4.50%	4.50%		4.50%	4.50%
Year ultimate healthcare cost trend rate will be realized		2029	2029		2030	2030
	U.S. Plans			Non-U.S. Plans
Net Periodic Pension Cost	2011	2010	2009	2011	2010	2009
Discount rate	5.75%	6.90%	6.50%	5.75%	8.00%	6.50%
Healthcare cost trend rate	8.04%	8.60%	8.50%	7.40%	10.00%	6.50%
Ultimate healthcare cost trend rate	4.50%	4.50%	5.00%	4.50%	5.00%	4.50%
Year ultimate healthcare cost trend rate will
be realized	2029	2029	2015	2030	2024	2012

Increasing or decreasing current healthcare cost trend rates by 1% would affect our accumulated postretirement benefit obligation and
net postretirement expense by the following amounts for the years ended May 31, 2011 and 2010:
		U.S. Plans				Non-U.S. Plans
(In thousands)		2011		2010		2011		2010
1% Increase in trend rate
Accumulated Benefit Obligation	$	442	$	380	$	3,938	$	3,231
Postretirement Cost		22		34		423		209
1% Decrease in trend rate
Accumulated Benefit Obligation	$	(394)	$	(338)	$	(3,039)	$	(2,499)
Postretirement Cost		(19)		(30)		(320)		(161)

We expect to pay approximately $1.2 million in estimated postretirement benefits in each of the next five years. In the five years thereafter (2017-2021) we expect to pay a cumulative total of $7.8 million.

The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the “Act”), was signed into law on December 8, 2003. The Act provides for prescription drug benefits under Medicare Part D and contains a subsidy to plan sponsors who provide “actuarially equivalent” prescription drug plans. Our actuary has determined that the prescription drug benefit provided by our postretirement plan is considered to be actuarially equivalent to the benefits provided under the Act for all years since inception.

We have included the impact of our portion of the Medicare Prescription Drug, Improvement and Modernization Act of 2003 subsidy in the determination of accumulated postretirement benefit obligation for the U.S. nonpension postretirement benefit plan for the periods ended May 31, 2010. For the fiscal years ended May 31, 2011 and 2010, we received reimbursements from Medicare related to this law amounting to approximately $100,000 each year.