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 and six month periods ended November 30, 2013:


	U.S. Plans						Non-U.S. Plans
	Three Months Ended November 30,						Three Months Ended November 30,
Pension Benefits	2013			2012			2013			2012
(In thousands)
Service cost	$	6,764		$	6,488		$	1,109		$	1,050
Interest cost		4,510			4,060			1,799			1,769
Expected return on plan assets		(5,191	)		(4,358	)		(2,096	)		(1,846	)
Amortization of:
Prior service cost		84			87			1			2
Net actuarial losses recognized		3,305			4,222			624			692

Net Periodic Benefit Cost	$	9,472		$	10,499		$	1,437		$	1,667


	U.S. Plans						Non-U.S. Plans
	Three Months Ended November 30,						Three Months Ended November 30,
Postretirement Benefits	2013			2012			2013		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			134		114

Net Periodic Benefit Cost	$	30		$	70		$	778	$	691


	U.S. Plans						Non-U.S. Plans
	Six Months Ended November 30,						Six Months Ended November 30,
Pension Benefits	2013			2012			2013			2012
(In thousands)
Service cost	$	13,528		$	12,976		$	2,218		$	2,100
Interest cost		9,020			8,120			3,599			3,538
Expected return on plan assets		(10,381	)		(8,716	)		(4,191	)		(3,692	)
Amortization of:
Prior service cost		167			174			2			4
Net actuarial losses recognized		6,611			8,444			1,247			1,384

Net Periodic Benefit Cost	$	18,945		$	20,998		$	2,875		$	3,334


	U.S. Plans						Non-U.S. Plans
	Six Months Ended November 30,						Six Months Ended November 30,
Postretirement Benefits	2013			2012			2013			2012
(In thousands)
Service cost	$	—		$	—		$	654		$	576
Interest cost		162			176			634			578
Amortization of:
Prior service (credit)		(44	)		(44	)		—			—
Net actuarial (gains) losses recognized		(58	)		8			267			228

Net Periodic Benefit Cost	$	60		$	140		$	1,555		$	1,382

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 November 30, 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.