NOTE 6 — 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, 2014 and 2013:


	U.S. Plans						Non-U.S. Plans
	Three Months Ended						Three Months Ended
	November 30,						November 30,
Pension Benefits	2014			2013			2014			2013
(In thousands)
Service cost	$	7,564		$	6,764		$	1,231		$	1,109
Interest cost		5,002			4,510			1,891			1,799
Expected return on plan assets		(6,034	)		(5,191	)		(2,296	)		(2,096	)
Amortization of:
Prior service cost		74			84			10			1
Net actuarial losses recognized		3,472			3,305			536			624

Net Periodic Benefit Cost	$	10,078		$	9,472		$	1,372		$	1,437


	U.S. Plans						Non-U.S. Plans
	Three Months Ended						Three Months Ended
	November 30,						November 30,
Postretirement Benefits	2014			2013			2014		2013
(In thousands)
Service cost	$	—		$	—		$	313	$	327
Interest cost		66			81			308		317
Amortization of:
Prior service (credit)		(62	)		(22	)
Net actuarial (gains) losses recognized		(34	)		(29	)		104		134

Net Periodic Benefit Cost	$	(30	)	$	30		$	725	$	778


	U.S. Plans						Non-U.S. Plans
	Six Months Ended						Six Months Ended
	November 30,						November 30,
Pension Benefits	2014			2013			2014			2013
(In thousands)
Service cost	$	15,128		$	13,528		$	2,462		$	2,218
Interest cost		10,004			9,020			3,782			3,599
Expected return on plan assets		(12,068	)		(10,381	)		(4,592	)		(4,191	)
Amortization of:
Prior service cost		148			167			20			2
Net actuarial losses recognized		6,944			6,611			1,072			1,247

Net Periodic Benefit Cost	$	20,156		$	18,945		$	2,744		$	2,875


	U.S. Plans						Non-U.S. Plans
	Six Months Ended						Six Months Ended
	November 30,						November 30,
Postretirement Benefits	2014			2013			2014		2013
(In thousands)
Service cost	$	—		$	—		$	626	$	654
Interest cost		132			162			616		634
Amortization of:
Prior service (credit)		(124	)		(44	)		—		—
Net actuarial (gains) losses recognized		(68	)		(58	)		208		267

Net Periodic Benefit Cost	$	(60	)	$	60		$	1,450	$	1,555

We previously disclosed in our financial statements for the fiscal year ended May 31, 2014 that we expected to contribute approximately $53.1 million to our retirement plans in the U.S. and approximately $6.3 million to plans outside the U.S. during the current fiscal year. As of November 30, 2014, 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. However, effective January 1, 2014, we changed our retiree medical offering to a Medicare Advantage Plan. Under the Medicare Advantage Plan, any Part D subsidy belongs to the insurance carrier. Our results reflect this change.