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 nine month periods ended February 28, 2017 and February 29, 2016:

	U.S. Plans						Non-U.S. Plans
	Three Months Ended						Three Months Ended
	February 28,			February 29,			February 28,			February 29,
Pension Benefits	2017			2016			2017			2016
(In thousands)
Service cost	$	9,401		$	8,202		$	1,127		$	1,067
Interest cost		4,331			4,499			1,224			1,319
Expected return on plan assets		(6,252	)		(6,437	)		(1,886	)		(1,978	)
Amortization of:
Prior service cost		54			58
Net actuarial losses recognized		5,540			4,190			573			455
Net Periodic Benefit Cost	$	13,074		$	10,512		$	1,038		$	863

	U.S. Plans						Non-U.S. Plans
	Three Months Ended						Three Months Ended
	February 28,			February 29,				February 28,			February 29,
Postretirement Benefits	2017			2016			2017			2016
(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
	Nine Months Ended						Nine Months Ended
	February 28,			February 29,			February 28,			February 29,
Pension Benefits	2017			2016			2017			2016
(In thousands)
Service cost	$	28,203		$	24,606		$	3,381		$	3,201
Interest cost		12,993			13,497			3,672			3,965
Expected return on plan assets		(18,756	)		(19,311	)		(5,658	)		(5,944	)
Amortization of:
Prior service cost		162			174			-			-
Net actuarial losses recognized		16,620			12,570			1,719			1,369
Settlement		-			-			-			91
Net Periodic Benefit Cost	$	39,222		$	31,536		$	3,114		$	2,682

	U.S. Plans						Non-U.S. Plans
	Nine Months Ended						Nine Months Ended
	February 28,			February 29,				February 28,			February 29,
Postretirement Benefits	2017			2016			2017			2016
(In thousands)
Service cost	$	-		$	-		$		852	$		843
Interest cost		171			177				666			663
Amortization of:
Prior service (credit)		(174	)		(186	)			-			-
Net actuarial (gains) losses recognized		-			-				180			183
Net Periodic Benefit Cost	$	(3	)	$	(9	)	$		1,698	$		1,689

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 February 28, 2017, this has not changed.