NOTE 12 — 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, 2016 and 2015:

	U.S. Plans						Non-U.S. Plans
	Three Months Ended						Three Months Ended
	November 30,			November 30,			November 30,			November 30,
Pension Benefits	2016			2015			2016			2015
(In thousands)
Service cost	$	9,401		$	8,202		$	1,127		$	1,067
Interest cost		4,331			4,499			1,224			1,323
Expected return on plan assets		(6,252	)		(6,437	)		(1,886	)		(1,983	)
Amortization of:
Prior service cost		54			58
Net actuarial losses recognized		5,540			4,190			573			457
Settlement											91
Net Periodic Benefit Cost	$	13,074		$	10,512		$	1,038		$	955

	U.S. Plans						Non-U.S. Plans
	Three Months Ended						Three Months Ended
	November 30,			November 30,			November 30,		November 30,
Postretirement Benefits	2016			2015			2016		2015
(In thousands)
Service cost	$	-		$	-		$	284	$	281
Interest cost		57			59			222		221
Amortization of:
Prior service (credit)		(58	)		(62	)
Net actuarial (gains) losses recognized								60		61
Net Periodic Benefit Cost	$	(1	)	$	(3	)	$	566	$	563

	U.S. Plans						Non-U.S. Plans
	Six Months Ended						Six Months Ended
	November 30,			November 30,			November 30,			November 30,
Pension Benefits	2016			2015			2016			2015
(In thousands)
Service cost	$	18,802		$	16,404		$	2,254		$	2,134
Interest cost		8,662			8,998			2,448			2,646
Expected return on plan assets		(12,504	)		(12,874	)		(3,772	)		(3,966	)
Amortization of:
Prior service cost		108			116			-			-
Net actuarial losses recognized		11,080			8,380			1,146			914
Settlement		-			-			-			91
Net Periodic Benefit Cost	$	26,148		$	21,024		$	2,076		$	1,819

	U.S. Plans						Non-U.S. Plans
	Six Months Ended						Six Months Ended
	November 30,			November 30,			November 30,		November 30,
Postretirement Benefits	2016			2015			2016		2015
(In thousands)
Service cost	$	-		$	-		$	568	$	562
Interest cost		114			118			444		442
Amortization of:
Prior service (credit)		(116	)		(124	)		-		-
Net actuarial (gains) losses recognized		-			-			120		122
Net Periodic Benefit Cost	$	(2	)	$	(6	)	$	1,132	$	1,126

The current year increases in pension and postretirement benefit cost reflect the impact of our assumptions used to determine net cost. The rate of expected return on plan assets and the effective discount rate applicable to service cost assumptions both decreased from fiscal 2016 to fiscal 2017. We expect that pension expense will fluctuate on a year-to-year basis, depending upon the investment performance of plan assets and potential changes in interest rates, but such changes are not expected to be material to our consolidated financial results. We previously disclosed in our financial statements for the fiscal year ended May 31, 2016 that we expected to contribute approximately $54.1 million to our retirement plans in the U.S. and approximately $6.0 million to plans outside the U.S. during the current fiscal year. As of November 30, 2016, this has not changed.