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Postretirement Benefits (Tables)
 12 Months Ended
May 31, 2013
POSTRETIREMENT BENEFITS
  
Components of Net Periodic Pension and Postretirement Costs

The following table illustrates the effect on operations of these plans for the three years ended May 31, 2013:

 

     U.S. Plans     Non-U.S. Plans  

(In thousands)

    2013     2012     2011     2013      2012      2011  

Service cost—Benefits earned during the period

    $ —       $ —       $ 5     $ 1,185      $ 745      $ 736  

Interest cost on the accumulated obligation

      349       416       439       1,188        968        925  

Amortization of:

               

Prior service cost

      (86 )      (86 )      (86 )         

Unrecognized losses

      16       (58 )      (191 )      470        72        89  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Net Periodic Postretirement Expense

    $ 279     $ 272     $ 167     $ 2,843      $ 1,785      $ 1,750  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  
Amounts Recognized in Consolidated Balance Sheet

Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2013 and 2012 are as follows:

 

     U.S. Plans     Non-U.S. Plans  

(In thousands)

    2013     2012     2013     2012  

Current liabilities

    $ (642 )    $ (714 )    $ (486 )    $ (428 ) 

Noncurrent liabilities

      (7,872 )      (8,963 )      (27,929 )      (24,089 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net Amount Recognized

    $ (8,514 )    $ (9,677 )    $ (28,415 )    $ (24,517 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
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 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)

    2013      2012     2013     2012  

Net actuarial gain (loss)

    $ 996      $ (35 )    $ (10,950 )    $ (9,441 ) 

Prior service credits

      516        603      
  

 

 

     

 

 

    

 

 

    

 

 

  

Total recognized in accumulated other comprehensive income not affecting retained earnings

    $ 1,512      $ 568     $ (10,950 )    $ (9,441 ) 
  

 

 

     

 

 

    

 

 

    

 

 

  
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)

    2013     2012      2013     2012  

Changes in plan assets and benefit obligations recognized in other comprehensive income:

          

Prior service cost

    $ —       $ —        $ —       $ —    

Net loss (gain) arising during the year

      (1,014 )      754        1,988       6,979  

Effect of exchange rates on amounts included in AOCI

           (9 )      (409 ) 

Amounts recognized as a component of net periodic benefit cost:

          

Amortization or curtailment recognition of prior service credit (cost)

      86       86       

Amortization or settlement recognition of net gain (loss)

      (16 )      58        (470 )      (72 ) 
  

 

 

    

 

 

     

 

 

    

 

 

  

Total recognized in other comprehensive loss (income)

    $ (944 )    $ 898      $ 1,509     $ 6,498  
  

 

 

    

 

 

     

 

 

    

 

 

  
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 postretirement benefit costs under the plans:

 

     U.S. Plans     Non-U.S. Plans  

Year-End Benefit Obligations

    2013    2012     2013     2012  

Discount rate

    3.95%      3.75 %      4.50 %      4.75 % 

Current healthcare cost trend rate

    7.54%      7.70 %      6.43 %      6.92 % 

Ultimate healthcare cost trend rate

    4.50%      4.50 %      4.20 %      4.20 % 

Year ultimate healthcare cost trend rate will be realized

    2029      2029        2030       2030  
  

 

   

 

 

    

 

 

    

 

 

  
     U.S. Plans     Non-U.S. Plans  

Net Periodic Postretirement Cost

    2013     2012     2011     2013     2012     2011  

Discount rate

      3.75 %      4.75 %      5.75 %      4.75 %      5.75 %      5.75 % 

Healthcare cost trend rate

      7.70 %      7.87 %      8.04 %      6.92 %      7.00 %      7.40 % 

Ultimate healthcare cost trend rate

      4.50 %      4.50 %      4.50 %      4.20 %      4.50 %      4.50 % 

Year ultimate healthcare cost trend rate will be realized

      2029        2029       2029       2030       2030       2030  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Changes in Benefit Obligations

The changes in benefit obligations of the plans at May 31, 2013 and 2012 were as follows:

 

     U.S. Plans     Non-U.S. Plans  

(In thousands)

    2013     2012     2013     2012  

Accumulated postretirement benefit obligation at beginning of year

    $ 9,677     $ 9,103     $ 24,517     $ 17,557  

Service cost

          1,185       745  

Interest cost

      349       416       1,188       968  

Benefit payments

      (572 )      (665 )      (441 )      (369 ) 

Medicare subsidy received

      74       69      

Actuarial (gains) losses

      (1,014 )      754       1,988       6,979  

Currency exchange rate changes

          (22 )      (1,363 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Accumulated and accrued postretirement benefit obligation at end of year

    $ 8,514     $ 9,677     $ 28,415     $ 24,517  
  

 

 

    

 

 

    

 

 

    

 

 

  
Increasing or Decreasing Current Healthcare Cost Trend Rates by One Percentage would affect Accumulated Postretirement Benefit Obligation and Net Postretirement Expense

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, 2013 and 2012:

 

     U.S. Plans     Non-U.S. Plans  

(In thousands)

    2013     2012     2013     2012  

1% Increase in trend rate

         

Accumulated Benefit Obligation

    $ 296     $ 390     $ 9,080     $ 3,920  

Postretirement Cost

      15       21       647       473  
  

 

 

    

 

 

    

 

 

    

 

 

  

1% Decrease in trend rate

         

Accumulated Benefit Obligation

    $ (265 )    $ (348 )    $ (3,802 )    $ (5,176 ) 

Postretirement Cost

      (13 )      (19 )      (481 )      (351 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
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)

    2013     2012     2011     2013     2012     2011  

Service cost

    $ 25,950     $ 19,906     $ 16,957     $ 4,337     $ 3,731     $ 3,535  

Interest cost

      16,240       15,307       13,738       7,246       8,076       7,622  

Expected return on plan assets

      (17,431 )      (17,416 )      (12,558 )      (7,715 )      (7,867 )      (7,057 ) 

Amortization of:

             

Prior service cost

      348       352       358       7       10       12  

Net actuarial losses recognized

      16,888       8,510       7,919       2,771       2,169       2,472  

Curtailment/settlement (gains) losses

      72       —         83       234       —         (26 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Pension Cost

    $ 42,067     $ 26,659     $ 26,497     $ 6,880     $ 6,119     $ 6,558  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Amounts Recognized in Consolidated Balance Sheet

Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2013 and 2012 are as follows:

 

      U.S. Plans     Non-U.S. Plans  

(In thousands)

    2013     2012     2013     2012  

Noncurrent assets

    $ —       $ —       $ —       $ 42  

Current liabilities

      (43 )      (43 )      (436 )      (492 ) 

Noncurrent liabilities

      (160,683 )      (186,762 )      (30,501 )      (37,570 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net Amount Recognized

    $ (160,726 )    $ (186,805 )    $ (30,937 )    $ (38,020 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
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)

    2013     2012     2013     2012  

Net actuarial loss

    $ (161,835 )    $ (205,086 )    $ (57,882 )    $ (62,750 ) 

Prior service (costs)

      (1,331 )      (1,679 )      (51 )      (93 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total recognized in accumulated other comprehensive income not affecting retained earnings

    $ (163,166 )    $ (206,765 )    $ (57,933 )    $ (62,843 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
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)

    2013     2012     2013     2012  

Changes in plan assets and benefit obligations recognized in other comprehensive income:

         

Prior service cost

    $ —       $ —       $ —       $ —    

Net loss (gain) arising during the year

      (26,291 )      106,459       (2,197 )      24,441  

Effect of exchange rates on amounts included in AOCI

          300       (3,852 ) 

Amounts recognized as a component of net periodic benefit cost:

         

Amortization or curtailment recognition of prior service credit (cost)

      (348 )      (352 )      (48 )      (10 ) 

Amortization or settlement recognition of net gain (loss)

      (16,960 )      (8,510 )      (2,966 )      (2,169 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total recognized in other comprehensive loss (income)

    $ (43,599 )    $ 97,597     $ (4,911 )    $ 18,410  
  

 

 

    

 

 

    

 

 

    

 

 

  
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

    2013     2012           2013     2012        

Discount rate

      4.45 %      4.25 %        3.95 %      4.19 %   

Rate of compensation increase

      3.14 %      3.15 %        3.32 %      3.76 %   
  

 

 

    

 

 

      

 

 

    

 

 

    
     U.S. Plans     Non-U.S. Plans  

Net Periodic Pension Cost

    2013     2012     2011     2013     2012     2011  

Discount rate

      4.25 %      5.25 %      5.75 %      4.19 %      5.14 %      5.26 % 

Expected return on plan assets

      8.50 %      8.50 %      8.75 %      5.32 %      5.63 %      5.75 % 

Rate of compensation increase

      3.15 %      3.15 %      3.28 %      3.76 %      3.83 %      3.81 %