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Postretirement Benefits (Tables)
12 Months Ended
May. 31, 2015
Pension Plan, 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)

   2015     2014     2013     2015     2014     2013  

Service cost

   $ 30,359     $ 27,056     $ 25,950     $ 4,611     $ 4,375     $ 4,337  

Interest cost

     20,119       18,039       16,240       7,184       7,382       7,246  

Expected return on plan assets

     (24,308     (20,761     (17,431     (8,611     (8,411     (7,715

Amortization of:

            

Prior service cost

     294       334       348       39       19       7  

Net actuarial losses recognized

     13,890       13,222       16,888       2,004       2,448       2,771  

Curtailment/settlement (gains) losses

         72         44       234  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Pension Cost

$ 40,354   $ 37,890   $ 42,067   $ 5,227   $ 5,857   $ 6,880  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Amounts Recognized in Consolidated Balance Sheet

Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2015 and 2014 are as follows:

 

     U.S. Plans      Non-U.S. Plans  

(In thousands)

   2015      2014      2015      2014  

Noncurrent assets

   $ 5      $ —        $ 1,280      $ 227  

Current liabilities

     (15      (15      (402      (458

Noncurrent liabilities

     (210,028      (194,462      (15,827      (24,858
  

 

 

    

 

 

    

 

 

    

 

 

 

Net Amount Recognized

$ (210,038 $ (194,477 $ (14,949 $ (25,089
  

 

 

    

 

 

    

 

 

    

 

 

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

The following table presents the pretax net actuarial loss and prior service (costs) recognized in accumulated other comprehensive

income (loss) not affecting retained earnings:

 

     U.S. Plans      Non-U.S. Plans  

(In thousands)

   2015      2014      2015      2014  

Net actuarial loss

   $ (212,828    $ (185,320    $ (39,307    $ (52,573

Prior service (costs)

     (703      (997      (357      (423
  

 

 

    

 

 

    

 

 

    

 

 

 

Total recognized in accumulated other comprehensive income not affecting retained earnings

$ (213,531 $ (186,317 $ (39,664 $ (52,996
  

 

 

    

 

 

    

 

 

    

 

 

 
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)

   2015      2014      2015      2014  

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

           

Prior service cost

   $ —        $ —        $ —        $ 384  

Net loss (gain) arising during the year

     41,398        36,707        (5,518      (2,673

Effect of exchange rates on amounts included in AOCI

           (5,771      (137

Amounts recognized as a component of net periodic benefit cost:

           

Amortization or curtailment recognition of prior service (cost)

     (294      (334      (39      (19

Amortization or settlement recognition of net (loss)

     (13,890      (13,222      (2,004      (2,492
  

 

 

    

 

 

    

 

 

    

 

 

 

Total recognized in other comprehensive loss (income)

$ 27,214   $ 23,151   $ (13,332 $ (4,937
  

 

 

    

 

 

    

 

 

    

 

 

 
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

   2015     2014     2015     2014  

Discount rate

     4.25     4.30     3.26     3.82

Rate of compensation increase

     3.80     3.81     2.81     3.30

 

     U.S. Plans     Non-U.S. Plans  

Net Periodic Pension Cost

   2015     2014     2013     2015     2014     2013  

Discount rate

     4.30     4.45     4.25     3.82     3.95     4.19

Expected return on plan assets

     8.25     8.50     8.50     5.18     5.37     5.32

Rate of compensation increase

     3.81     3.14     3.15     3.30     3.32     3.76
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, 2015:

 

     U.S. Plans     Non-U.S. Plans  

(In thousands)

   2015     2014     2013     2015      2014      2013  

Service cost - Benefits earned during the period

   $ —       $ —       $ —       $ 1,173      $ 1,264      $ 1,185  

Interest cost on the accumulated obligation

     263       297       349       1,155        1,225        1,188  

Amortization of:

              

Prior service (credit)

     (247     (153     (86        

Net actuarial (gains) losses

     (136     (144     16       391        516        470  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Net Periodic Postretirement (Benefit) Expense

$ (120 $ —     $ 279   $ 2,719   $ 3,005   $ 2,843  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 
Amounts Recognized in Consolidated Balance Sheet

Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2015 and 2014 are as follows:

 

     U.S. Plans      Non-U.S. Plans  

(In thousands)

   2015      2014      2015      2014  

Current liabilities

   $ (430    $ (410    $ (454    $ (522

Noncurrent liabilities

     (7,210      (6,377      (24,192      (27,733
  

 

 

    

 

 

    

 

 

    

 

 

 

Net Amount Recognized

$ (7,640 $ (6,787 $ (24,646 $ (28,255
  

 

 

    

 

 

    

 

 

    

 

 

 
Pretax Net Actuarial Loss and Prior Service (Costs) 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)

   2015      2014      2015      2014  

Net actuarial gain (loss)

   $ 124      $ 1,080      $ (5,968    $ (9,136

Prior service credits

     1,587        1,834        
  

 

 

    

 

 

    

 

 

    

 

 

 

Total recognized in accumulated other comprehensive income not affecting retained earnings

$ 1,711   $ 2,914   $ (5,968 $ (9,136
  

 

 

    

 

 

    

 

 

    

 

 

 
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)

   2015      2014      2015      2014  

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

           

Prior service cost

   $ —        $ (1,471    $ —        $ —    

Net loss (gain) arising during the year

     820        (228      (1,751      (766

Effect of exchange rates on amounts included in AOCI

           (1,026      (532

Amounts recognized as a component of net periodic benefit cost:

           

Amortization or curtailment recognition of prior service credit (cost)

     247        153        

Amortization or settlement recognition of net gain (loss)

     136        144        (391      (516
  

 

 

    

 

 

    

 

 

    

 

 

 

Total recognized in other comprehensive loss (income)

$ 1,203   $ (1,402 $ (3,168 $ (1,814
  

 

 

    

 

 

    

 

 

    

 

 

 
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

   2015     2014          2015     2014  

Discount rate

     3.95     4.00        4.00     4.40

Current healthcare cost trend rate

     11.34     12.28        6.06     6.31

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

   2015     2014     2013     2015     2014     2013  

Discount rate

     4.00     3.95     3.75     4.40     4.50     4.75

Healthcare cost trend rate

     12.28     7.54     7.70     6.31     6.43     6.92

Ultimate healthcare cost trend rate

     4.50     4.50     4.50     4.20     4.20     4.20

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, 2015 and 2014 were as follows:

 

     U.S. Plans      Non-U.S. Plans  

(In thousands)

   2015      2014      2015      2014  

Accumulated postretirement benefit obligation at beginning of year

   $ 6,787      $ 8,514      $ 28,255      $ 28,415  

Service cost

     —          —          1,173        1,264  

Interest cost

     263        297        1,155        1,225  

Benefit payments

     (230      (362      (536      (421

Medicare subsidy received

     —          37        

Plan amendments

     —          (1,471      

Actuarial (gains) losses

     820        (228      (1,751      (766

Currency exchange rate changes

           (3,650      (1,462
  

 

 

    

 

 

    

 

 

    

 

 

 

Accumulated and accrued postretirement benefit obligation at end of year

$ 7,640   $ 6,787   $ 24,646   $ 28,255  
  

 

 

    

 

 

    

 

 

    

 

 

 
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, 2015 and 2014:

 

     U.S. Plans      Non-U.S. Plans  

(In thousands)

   2015      2014      2015      2014  

1% Increase in trend rate

           

Accumulated Benefit Obligation

   $ 334      $ 239      $ 6,430      $ 6,502  

Postretirement Cost

     10        11        675        727  
  

 

 

    

 

 

    

 

 

    

 

 

 

1% Decrease in trend rate

Accumulated Benefit Obligation

$ (290 $ (209 $ (3,295 $ (5,011

Postretirement Cost

  (8   (10   (499   (534