NOTE 7 — PENSION PLANS

We offer defined benefit pension plans, defined contribution pension plans, as well as several unfunded health care benefit plans primarily for certain of our retired employees. The following tables provide the retirement-related benefit plans’ impact on income before income taxes for the three month periods ended August 31, 2013:


	U.S. Plans						Non-U.S. Plans
	Three Months Ended						Three Months Ended
Pension Benefits	August 31, 2013			August 31, 2012			August 31, 2013			August 31, 2012
	(In thousands)
Service cost	$	6,764		$	6,488		$	1,109		$	1,050
Interest cost		4,510			4,060			1,800			1,769
Expected return on plan assets		(5,190	)		(4,358	)		(2,095	)		(1,846	)
Amortization of:
Prior service cost		83			87			1			2
Net actuarial losses recognized		3,306			4,222			623			692

Net Periodic Benefit Cost	$	9,473		$	10,499		$	1,438		$	1,667


	U.S. Plans						Non-U.S. Plans
	Three Months Ended						Three Months Ended
Postretirement Benefits	August 31, 2013			August 31, 2012			August 31, 2013		August 31, 2012
	(In thousands)
Service cost	$	—		$	—		$	327	$	288
Interest cost		81			88			317		289
Amortization of:
Prior service (credit)		(22	)		(22	)
Net actuarial (gains) losses recognized		(29	)		4			133		114

Net Periodic Benefit Cost	$	30		$	70		$	777	$	691

We previously disclosed in our financial statements for the fiscal year ended May 31, 2013 that we expected to contribute approximately $27.4 million to our retirement plans in the U.S. and approximately $7.4 million to plans outside the U.S. during the current fiscal year. As of August 31, 2013, this has not changed.

We have determined that our postretirement medical plan provides prescription drug benefits that will qualify for the federal subsidy provided by the Medicare Prescription Drug, Improvement and Modernization Act of 2003. For all groups of retirees, we have assumed that the subsidy will continue indefinitely.