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Postretirement Benefits (Tables)
 12 Months Ended
May 31, 2016
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)

 

2016

 

2015

 

2014

 

 

2016

 

2015

 

2014

 

Service cost

 

$

32,808

 

$

30,359

 

$

27,056

 

 

$

4,061

 

$

4,611

 

$

4,375

 

Interest cost

 

 

17,995

 

 

20,119

 

 

18,039

 

 

 

5,070

 

 

7,184

 

 

7,382

 

Expected return on plan assets

 

 

(25,749

)

 

(24,308

)

 

(20,761

)

 

 

(7,571

)

 

(8,611

)

 

(8,411

)

Amortization of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service cost

 

 

234

 

 

294

 

 

334

 

 

 

(2

)

 

39

 

 

19

 

Net actuarial losses recognized

 

 

16,759

 

 

13,890

 

 

13,222

 

 

 

1,739

 

 

2,004

 

 

2,448

 

Curtailment/settlement (gains) losses

 

 

87

 

 

 

 

 

 

 

 

 

57

 

 

 

 

 

44

 

Net Pension Cost

 

$

42,134

 

$

40,354

 

$

37,890

 

 

$

3,354

 

$

5,227

 

$

5,857

 

 
Amounts Recognized in Consolidated Balance Sheet

Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2016 and 2015 are as follows:

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

(In thousands)

 

2016

 

2015

 

 

2016

 

2015

 

Noncurrent assets

 

$

-

 

$

5

 

 

$

4,297

 

$

1,280

 

Current liabilities

 

 

(15

)

 

(15

)

 

 

(468

)

 

(402

)

Noncurrent liabilities

 

 

(274,815

)

 

(210,028

)

 

 

(21,429

)

 

(15,827

)

Net Amount Recognized

 

$

(274,830

)

$

(210,038

)

 

$

(17,600

)

$

(14,949

)

 
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)

 

2016

 

2015

 

 

2016

 

2015

 

Net actuarial loss

 

$

(271,456

)

$

(212,828

)

 

$

(43,272

)

$

(39,307

)

Prior service (costs)

 

 

(469

)

 

(703

)

 

 

9

 

 

(357

)

Total recognized in accumulated other comprehensive

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  income not affecting retained earnings

 

$

(271,925

)

$

(213,531

)

 

$

(43,263

)

$

(39,664

)

 
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)

 

2016

 

2015

 

 

2016

 

2015

 

Changes in plan assets and benefit obligations recognized in other

   comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service cost

 

$

-

 

$

-

 

 

$

(349

)

$

-

 

 

 

Net loss (gain) arising during the year

 

 

75,474

 

 

41,398

 

 

 

7,731

 

 

(5,518

)

 

 

Effect of exchange rates on amounts included in AOCI

 

 

 

 

 

 

 

 

 

(1,953

)

 

(5,771

)

Amounts recognized as a component of net periodic benefit cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization or curtailment recognition of prior service (cost)

 

 

(234

)

 

(294

)

 

 

(7

)

 

(39

)

 

 

Amortization or settlement recognition of net (loss)

 

 

(16,846

)

 

(13,890

)

 

 

(1,823

)

 

(2,004

)

 

 

Total recognized in other comprehensive loss (income)

 

$

58,394

 

$

27,214

 

 

$

3,599

 

$

(13,332

)

 
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

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Discount rate

 

 

3.85

%

 

 

4.25

%

 

 

3.13

%

 

 

3.26

%

Rate of compensation increase

 

 

3.80

%

 

 

3.80

%

 

 

2.81

%

 

 

2.81

%

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

Net Periodic Pension Cost

 

2016

 

 

2015

 

 

2014

 

 

2016

 

 

2015

 

 

2014

 

Discount rate

 

 

4.25

%

 

 

4.30

%

 

 

4.45

%

 

 

3.26

%

 

 

3.82

%

 

 

3.95

%

Expected return on plan assets

 

 

7.90

%

 

 

8.25

%

 

 

8.50

%

 

 

4.49

%

 

 

5.18

%

 

 

5.37

%

Rate of compensation increase

 

 

3.80

%

 

 

3.81

%

 

 

3.14

%

 

 

2.81

%

 

 

3.30

%

 

 

3.32

%

 
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, 2016:

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

(In thousands)

 

2016

 

2015

 

2014

 

 

2016

 

2015

 

2014

 

Service cost - Benefits earned during the period

 

$

-

 

$

-

 

$

-

 

 

$

1,061

 

$

1,173

 

$

1,264

 

Interest cost on the accumulated obligation

 

 

235

 

 

263

 

 

297

 

 

 

832

 

 

1,155

 

 

1,225

 

Amortization of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service (credit)

 

 

(247

)

 

(247

)

 

(153

)

 

 

 

 

 

 

 

 

 

 

Net actuarial (gains) losses

 

 

 

 

 

(136

)

 

(144

)

 

 

229

 

 

391

 

 

516

 

Net Periodic Postretirement (Benefit) Expense

 

$

(12

)

$

(120

)

$

-

 

 

$

2,122

 

$

2,719

 

$

3,005

 

 
Amounts Recognized in Consolidated Balance Sheet

Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2016 and 2015 are as follows:

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

(In thousands)

 

2016

 

2015

 

 

2016

 

2015

 

Current liabilities

 

$

(455

)

$

(430

)

 

$

(482

)

$

(454

)

Noncurrent liabilities

 

 

(7,198

)

 

(7,210

)

 

 

(24,938

)

 

(24,192

)

Net Amount Recognized

 

$

(7,653

)

$

(7,640

)

 

$

(25,420

)

$

(24,646

)

 
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)

 

2016

 

2015

 

 

2016

 

2015

 

Net actuarial gain (loss)

 

$

94

 

$

124

 

 

$

(5,986

)

$

(5,968

)

Prior service credits

 

 

1,341

 

 

1,587

 

 

 

 

 

 

 

 

Total recognized in accumulated other comprehensive income not affecting retained

   earnings

 

$

1,435

 

$

1,711

 

 

$

(5,986

)

$

(5,968

)

 
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)

 

2016

 

2015

 

 

2016

 

2015

 

Changes in plan assets and benefit obligations recognized in other comprehensive

   income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service cost

 

$

-

 

$

-

 

 

$

-

 

$

-

 

Net loss (gain) arising during the year

 

 

29

 

 

820

 

 

 

536

 

 

(1,751

)

Effect of exchange rates on amounts included in AOCI

 

 

 

 

 

 

 

 

 

(290

)

 

(1,026

)

Amounts recognized as a component of net periodic benefit cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization or curtailment recognition of prior service credit (cost)

 

 

247

 

 

247

 

 

 

 

 

 

 

 

Amortization or settlement recognition of net gain (loss)

 

 

-

 

 

136

 

 

 

(229

)

 

(391

)

Total recognized in other comprehensive loss (income)

 

$

276

 

$

1,203

 

 

$

17

 

$

(3,168

)

 
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

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

 

 

 

 

 

 

Discount rate

 

 

3.76

%

 

 

3.95

%

 

 

3.92

%

 

 

4.00

%

 

 

 

 

 

 

 

 

Current healthcare cost trend rate

 

 

10.37

%

 

 

11.34

%

 

 

5.98

%

 

 

6.06

%

 

 

 

 

 

 

 

 

Ultimate healthcare cost trend rate

 

 

4.36

%

 

 

4.50

%

 

 

4.20

%

 

 

4.20

%

 

 

 

 

 

 

 

 

Year ultimate healthcare cost trend rate will be realized

 

 

2037

 

 

 

2029

 

 

 

2030

 

 

 

2030

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

Net Periodic Postretirement Cost

 

2016

 

 

2015

 

 

2014

 

 

2016

 

 

2015

 

 

2014

 

Discount rate

 

 

3.95

%

 

 

4.00

%

 

 

3.95

%

 

 

4.00

%

 

 

4.40

%

 

 

4.50

%

Healthcare cost trend rate

 

 

11.34

%

 

 

12.28

%

 

 

7.54

%

 

 

6.06

%

 

 

6.31

%

 

 

6.43

%

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, 2016 and 2015 were as follows:

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

(In thousands)

 

2016

 

2015

 

 

2016

 

2015

 

Accumulated postretirement benefit obligation at beginning of year

 

$

7,640

 

$

6,787

 

 

$

24,646

 

$

28,255

 

Service cost

 

 

 

 

 

 

 

 

 

1,061

 

 

1,173

 

Interest cost

 

 

235

 

 

263

 

 

 

832

 

 

1,155

 

Benefit payments

 

 

(251

)

 

(230

)

 

 

(464

)

 

(536

)

Actuarial (gains) losses

 

 

29

 

 

820

 

 

 

536

 

 

(1,751

)

Currency exchange rate changes

 

 

 

 

 

 

 

 

 

(1,191

)

 

(3,650

)

Accumulated and accrued postretirement benefit obligation at end of year

 

$

7,653

 

$

7,640

 

 

$

25,420

 

$

24,646

 

 
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, 2016 and 2015:

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

(In thousands)

 

2016

 

2015

 

 

2016

 

2015

 

1% Increase in trend rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated Benefit Obligation

 

$

313

 

$

334

 

 

$

5,552

 

$

6,430

 

Postretirement Cost

 

 

11

 

 

10

 

 

 

504

 

 

675

 

1% Decrease in trend rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated Benefit Obligation

 

$

(272

)

$

(290

)

 

$

(4,289

)

$

(3,295

)

Postretirement Cost

 

 

(9

)

 

(8

)

 

 

(383

)

 

(499

)