PENSION PLANS (Tables) (Pension Plans, Defined Benefit)

12 Months Ended

May 31, 2012

Pension Plans, Defined Benefit

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)	2012			2011			2010			2012			2011			2010
Service cost	$	19,906		$	16,957		$	14,020		$	3,731		$	3,535		$	1,971
Interest cost		15,307			13,738			13,499			8,076			7,622			7,352
Expected return on plan assets		(17,416	)		(12,558	)		(9,795	)		(7,867	)		(7,057	)		(6,068	)
Amortization of:
Prior service cost		352			358			351			10			12			9
Net actuarial losses recognized		8,510			7,919			6,554			2,169			2,472			963
Curtailment/settlement (gains) losses		—			83			—			—			(26	)		(76	)
Net Pension Cost	$	26,659		$	26,497		$	24,629		$	6,119		$	6,558		$	4,151

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, 2012 and 2011, were as follows:

	U.S. Plans						Non-U.S. Plans
(In thousands)	2012			2011			2012			2011
Benefit obligation at beginning of year	$	288,532		$	258,755		$	161,632		$	137,821
Service cost		19,906			16,957			3,731			3,535
Interest cost		15,307			13,738			8,076			7,622
Benefits paid		(13,467	)		(15,915	)		(6,337	)		(5,844	)
Participant contributions								1,035			1,007
Acquisitions								880			60
Plan amendments					68						(9	)
Actuarial losses		74,735			15,110			20,563			1,835
Settlements/Curtailments					(181	)					(2,409	)
Premiums paid								(161	)		(146	)
Currency exchange rate changes								(14,081	)		18,160
Benefit Obligation at End of Year	$	385,013		$	288,532		$	175,338		$	161,632
Fair value of plan assets at beginning of year	$	212,215		$	147,370		$	141,639		$	112,435
Actual return on plan assets		(14,309	)		30,536			3,987			11,655
Employer contributions		13,769			50,405			8,363			9,770
Participant contributions								1,035			1,007
Benefits paid		(13,467	)		(15,915	)		(6,337	)		(5,844	)
Premiums paid								(161	)		(146	)
Settlements/Curtailments					(181	)					(2,409	)
Currency exchange rate changes								(11,208	)		15,171
Fair Value of Plan Assets at End of Year	$	198,208		$	212,215		$	137,318		$	141,639
(Deficit) of plan assets versus benefit obligations at end of year	$	(186,805	)	$	(76,317	)	$	(38,020	)	$	(19,993	)
Net Amount Recognized	$	(186,805	)	$	(76,317	)	$	(38,020	)	$	(19,993	)
Accumulated Benefit Obligation	$	324,247		$	248,952		$	156,663		$	143,413

Amounts Recognized in Consolidated Balance Sheet

Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2012 and 2011 are as follows:

	U.S. Plans						Non-U.S. Plans
(In thousands)	2012			2011			2012			2011
Noncurrent assets	$	—		$	—		$	42		$	—
Current liabilities		(43	)		(43	)		(492	)		(483	)
Noncurrent liabilities		(186,762	)		(76,274	)		(37,570	)		(19,510	)
Net Amount Recognized	$	(186,805	)	$	(76,317	)	$	(38,020	)	$	(19,993	)

Relationship between Plans Benefit Obligations and Assets

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

	U.S. Plans
	2012				2011
(In thousands)	Benefit Obligation		Plan Assets		Benefit Obligation		Plan Assets
Plans with projected benefit obligation in excess of plan assets	$	385,013	$	198,208	$	288,532	$	212,215
Plans with accumulated benefit obligation in excess of plan assets		324,247		198,208		248,952		212,215

	Non-U.S. Plans
	2012				2011
(In thousands)	Benefit Obligation		Plan Assets		Benefit Obligation		Plan Assets
Plans with projected benefit obligation in excess of plan assets	$	174,358	$	136,296	$	161,632	$	141,639
Plans with accumulated benefit obligation in excess of plan assets		83,465		62,902		78,269		68,632
Plans with assets in excess of projected benefit obligations		980		1,022
Plans with assets in excess of accumulated benefit obligations		73,198		74,416		65,144		73,007

Pretax Net Actuarial Loss, Prior Service (Costs) and Transition Assets/(Obligations) Recognized in Accumulated Other Comprehensive Income (Loss) not Affecting Retained Earnings

The following table presents the pretax net actuarial loss, prior service (costs) and transition assets/(obligations) recognized in accumulated other comprehensive income (loss) not affecting retained earnings:

	U.S. Plans						Non-U.S. Plans
(In thousands)	2012			2011			2012			2011
Net actuarial loss(1)	$	(205,086	)	$	(107,137	)	$	(62,750	)	$	(44,313	)
Prior service (costs)		(1,679	)		(2,031	)		(93	)		(120	)
Total recognized in accumulated other comprehensive income not affecting retained earnings	$	(206,765	)	$	(109,168	)	$	(62,843	)	$	(44,433	)

(1) Increases in net actuarial losses arising during 2012 were primarily attributable to a lower discount rate during 2012 versus 2011 and a lower actual return on plan assets compared with the expected return on plan assets for 2012.

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)	2012			2011			2012			2011
Changes in plan assets and benefit obligations recognized in other comprehensive income:
Prior service cost	$	—		$	68		$	—		$	(9	)
Net loss (gain) arising during the year		106,459			(2,868	)		24,441			(2,763	)
Effect of exchange rates on amounts included in AOCI								(3,852	)		4,459
Amounts recognized as a component of net periodic benefit cost:
Amortization or curtailment recognition of prior service credit (cost)		(352	)		(358	)		(10	)		(12	)
Amortization or settlement recognition of net gain (loss)		(8,510	)		(8,002	)		(2,169	)		(2,446	)
Total recognized in other comprehensive loss (income)	$	97,597		$	(11,160	)	$	18,410		$	(771	)

Amounts in Accumulated Other Comprehensive Income (Loss) that have not yet been Recognized in Net Periodic Pension Cost, but will be Recognized in Consolidated Statements of Income

The following table presents the amounts in accumulated other comprehensive income (loss) as of May 31, 2012 that have not yet been recognized in net periodic pension cost, but will be recognized in our Consolidated Statements of Income during the fiscal year ending May 31, 2013:

(In thousands)	U.S. Plans			Non-U.S. Plans
Net actuarial loss	$	(15,930	)	$	(2,769	)
Prior service (costs)	$	(348	)	$	(9	)

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	2012			2011			2012			2011
Discount rate		4.25	%		5.25	%		4.19	%		5.14	%
Rate of compensation increase		3.15	%		3.15	%		3.76	%		3.83	%

	U.S. Plans									Non-U.S. Plans
Net Periodic Pension Cost	2012			2011			2010			2012			2011			2010
Discount rate		5.25	%		5.75	%		6.90	%		5.14	%		5.26	%		6.96	%
Expected return on plan assets		8.50	%		8.75	%		8.75	%		5.63	%		5.75	%		5.94	%
Rate of compensation increase		3.15	%		3.28	%		3.28	%		3.83	%		3.81	%		3.76	%

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 as of May 31, 2012			Actual Asset Allocation
(Dollars in millions)				2012		2011
Equity securities		55	%	$	111.7	$	107.8
Fixed income securities		25	%		64.4		50.7
Cash					4.5		35.0
Other		20	%		17.6		18.7
Total assets		100	%	$	198.2	$	212.2

	Non-U.S. Plans
	Target  Allocation as of May 31, 2012			Actual Asset Allocation
(Dollars in millions)				2012		2011
Equity securities		42	%	$	67.0	$	66.8
Fixed income securities		51	%		43.9		44.5
Cash		1	%		0.4		0.4
Property and other		6	%		26.0		30.0
Total assets		100	%	$	137.3	$	141.7

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, 2012 and 2011:

	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, 2012
U.S. Treasury and other government	$	—	$	7,969	$	—	$	7,969
State and municipal bonds				490				490
Foreign bonds				2,279				2,279
Mortgage-backed securities				9,169				9,169
Corporate bonds				14,647				14,647
Stocks — large cap		36,196						36,196
Stocks — mid cap		19,659						19,659
Stocks — small cap		10,413						10,413
Stocks — international		6,961						6,961
Mutual funds — equity				38,475				38,475
Mutual funds — fixed				29,806				29,806
Cash and cash equivalents		4,549						4,549
Limited partnerships						1,833		1,833
Common/collective trusts						15,762		15,762
Total	$	77,778	$	102,835	$	17,595	$	198,208

	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, 2012
Pooled equities	$	—	$	66,212	$	—	$	66,212
Pooled fixed income				43,446				43,446
Foreign bonds				433				433
Insurance contracts						25,974		25,974
Mutual funds				843				843
Cash and cash equivalents		410						410
Total	$	410	$	110,934	$	25,974	$	137,318

	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, 2011
U.S. Treasury and other government	$	—	$	2,691	$	—	$	2,691
State and municipal bonds				439				439
Foreign bonds				1,566				1,566
Mortgage-backed securities				6,531				6,531
Corporate bonds				12,653				12,653
Stocks — large cap		44,926						44,926
Stocks — mid cap		16,040						16,040
Stocks — small cap		4,754						4,754
Stocks — international		7,514						7,514
Mutual funds — equity				34,515				34,515
Mutual funds — fixed				26,873				26,873
Cash and cash equivalents		35,040						35,040
Limited partnerships						2,470		2,470
Common/collective trusts						16,203		16,203
Total	$	108,274	$	85,268	$	18,673	$	212,215

	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, 2011
Pooled equities	$	—	$	65,698	$	—	$	65,698
Pooled fixed income				44,012				44,012
Foreign bonds				402				402
Insurance contracts						30,043		30,043
Mutual funds				1,110				1,110
Cash and cash equivalents		374						374
Total	$	374	$	111,222	$	30,043	$	141,639

Activity that Occurred for Level Three Assets

The following table includes the activity that occurred during the years ended May 31, 2012 and 2011 for our Level 3 assets:

(In thousands)	Balance at Beginning of Period		Actual Return on Plan Assets For:					Purchases, Sales and Settlements, net(1)			Transfers In/Out of Level 3			Balance at End of Period
			Assets Still Held at Reporting Date		Assets Sold During Year
Year ended May 31, 2012	$	48,716		231		(619	)		(3,998	)		(761	)	$	43,569
Year ended May 31, 2011		33,337		197		1,750			5,606			7,826			48,716

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