Pension Plans (Tables) - Pension Plan, Defined Benefit

12 Months Ended

May 31, 2017

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)	2017			2016			2015			2017			2016			2015
Service cost	$	37,603		$	32,808		$	30,359		$	4,070		$	4,061		$	4,611
Interest cost		17,323			17,995			20,119			4,614			5,070			7,184
Expected return on plan assets		(25,007	)		(25,749	)		(24,308	)		(7,109	)		(7,571	)		(8,611	)
Amortization of:
Prior service cost		217			234			294			(24	)		(2	)		39
Net actuarial losses recognized		22,160			16,759			13,890			2,150			1,739			2,004
Curtailment/settlement (gains) losses		-			87						904			57
Net Pension Cost	$	52,296		$	42,134		$	40,354		$	4,605		$	3,354		$	5,227

Changes in Benefit Obligations and Plan Assets

The changes in benefit obligations and plan assets, as well as the funded status of our pension plans at May 31, 2017 and 2016, were as follows:

	U.S. Plans						Non-U.S. Plans
(In thousands)	2017			2016			2017			2016
Benefit obligation at beginning of year	$	589,046		$	537,465		$	187,064		$	191,386
Service cost		37,603			32,808			4,070			4,061
Interest cost		17,323			17,995			4,614			5,070
Benefits paid		(28,587	)		(26,932	)		(4,977	)		(7,078	)
Participant contributions								933			830
Plan amendments								(196	)		(349	)
Plan settlements/curtailments					(272	)		(4,546	)		(630	)
Actuarial (gains)/losses		(23,437	)		27,982			16,697			1,778
Acquisitions and transfers
Premiums paid								(109	)		(121	)
Currency exchange rate changes								(7,666	)		(7,883	)
Benefit Obligation at End of Year	$	591,948		$	589,046		$	195,884		$	187,064
Fair value of plan assets at beginning of year	$	314,216		$	327,427		$	169,464		$	176,437
Actual return on plan assets		44,924			(21,742	)		21,216			1,619
Employer contributions		106,928			35,735			5,753			6,042
Participant contributions								933			830
Benefits paid		(28,587	)		(26,932	)		(4,977	)		(7,078	)
Premiums paid								(109	)		(121	)
Plan settlements/curtailments					(272	)		(4,471	)		(595	)
Currency exchange rate changes								(7,881	)		(7,670	)
Fair Value of Plan Assets at End of Year	$	437,481		$	314,216		$	179,928		$	169,464
(Deficit) of plan assets versus benefit obligations at end of year	$	(154,467	)	$	(274,830	)	$	(15,956	)	$	(17,600	)
Net Amount Recognized	$	(154,467	)	$	(274,830	)	$	(15,956	)	$	(17,600	)
Accumulated Benefit Obligation	$	489,918		$	483,944		$	183,038		$	175,394

Amounts Recognized in Consolidated Balance Sheet

Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2017 and 2016 are as follows:

	U.S. Plans						Non-U.S. Plans
(In thousands)	2017			2016			2017			2016
Noncurrent assets	$	-		$	-		$	998		$	4,297
Current liabilities		(7	)		(15	)		(512	)		(468	)
Noncurrent liabilities		(154,460	)		(274,815	)		(16,442	)		(21,429	)
Net Amount Recognized	$	(154,467	)	$	(274,830	)	$	(15,956	)	$	(17,600	)

Relationship between Plans Benefit Obligations and Assets

The following table summarizes the relationship between our plans' benefit obligations and assets:

	U.S. Plans
	2017				2016
(In thousands)	Benefit Obligation		Plan Assets		Benefit Obligation		Plan Assets
Plans with projected benefit obligations in excess of plan assets	$	591,948	$	437,481	$	589,046	$	314,216
Plans with accumulated benefit obligations in excess of plan assets		489,918		437,481		483,944		314,216
Plans with assets in excess of projected benefit obligations		-		-		-		-
Plans with assets in excess of accumulated benefit obligations		-		-		-		-
	Non-U.S. Plans
	2017				2016
(In thousands)	Benefit Obligation		Plan Assets		Benefit Obligation		Plan Assets
Plans with projected benefit obligations in excess of plan assets	$	147,560	$	130,605	$	141,627	$	119,730
Plans with accumulated benefit obligations in excess of plan assets		44,797		31,653		46,464		31,868
Plans with assets in excess of projected benefit obligations		48,324		49,323		45,437		49,734
Plans with assets in excess of accumulated benefit obligations		138,241		148,275		128,930		137,596

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)	2017			2016			2017			2016
Net actuarial loss	$	(205,942	)	$	(271,456	)	$	(41,000	)	$	(43,272	)
Prior service (costs) credits		(252	)		(469	)		185			9
Total recognized in accumulated other comprehensive    income not affecting retained earnings	$	(206,194	)	$	(271,925	)	$	(40,815	)	$	(43,263	)

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)		2017			2016			2017			2016
Changes in plan assets and benefit obligations recognized in other    comprehensive income:
	Prior service cost	$	-		$	-		$	(196	)	$	(349	)
	Net loss (gain) arising during the year		(43,353	)		75,474			2,515			7,731
	Effect of exchange rates on amounts included in AOCI								(1,736	)		(1,953	)
Amounts recognized as a component of net periodic benefit cost:
	Amortization or curtailment recognition of prior service (cost)		(217	)		(234	)		24			(7	)
	Amortization or settlement recognition of net (loss)		(22,160	)		(16,846	)		(3,054	)		(1,823	)
	Total recognized in other comprehensive loss (income)	$	(65,730	)	$	58,394		$	(2,447	)	$	3,599

Amounts in Accumulated Other Comprehensive Income (Loss) that have not yet been Recognized in Net Periodic Pension Cost, but will be Recognized in Consolidated Statements of Income

The following table presents the amounts in accumulated other comprehensive income (loss) as of May 31, 2017 that have not yet been recognized in net periodic pension cost, but will be recognized in our Consolidated Statements of Income during the fiscal year ending May 31, 2018:

(In thousands)	U.S. Plans			Non-U.S. Plans
Net actuarial loss	$	(14,325	)	$	(1,675	)
Prior service (cost) credit	$	(117	)	$	25

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	2017			2016			2017			2016
Discount rate		3.81	%		3.85	%		2.79	%		3.13	%
Rate of compensation increase		3.80	%		3.80	%		3.00	%		2.81	%

	U.S. Plans									Non-U.S. Plans
Net Periodic Pension Cost	2017			2016			2015			2017			2016			2015
Discount rate		3.85	%		4.25	%		4.30	%		3.13	%		3.26	%		3.82	%
Expected return on plan assets		7.89	%		7.90	%		8.25	%		4.50	%		4.49	%		5.18	%
Rate of compensation increase		3.80	%		3.80	%		3.81	%		2.81	%		2.81	%		3.30	%

Weighted-Average Actual and Target Allocation of Plan Assets

The following tables illustrate the weighted-average actual and target allocation of plan assets:

	U.S. Plans
	Target Allocation			Actual Asset Allocation
(Dollars in millions)	as of May 31, 2017			2017		2016
Equity securities		55	%	$	295.2	$	234.7
Fixed income securities		25	%		82.4		72.1
Cash (1)					59.7		7.1
Other		20	%		0.2		0.3
Total assets		100	%	$	437.5	$	314.2
	Non-U.S. Plans
	Target Allocation			Actual Asset Allocation
(Dollars in millions)	as of May 31, 2017			2017		2016
Equity securities		40	%	$	83.8	$	71.7
Fixed income securities		41	%		65.9		67.4
Cash
Property and other		19	%		30.2		30.4
Total assets		100	%	$	179.9	$	169.5

Pension Plan Assets Categorized using Fair Value Hierarchy

The following tables present our pension plan assets as categorized using the fair value hierarchy at May 31, 2017 and 2016:

U.S. Plans
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at May 31, 2017
U.S. Treasury and other government	$	-	$	7,923	$	-	$	7,923
State and municipal bonds				628				628
Foreign bonds				1,623				1,623
Mortgage-backed securities				20,211				20,211
Corporate bonds				17,976				17,976
Stocks - large cap		20,999						20,999
Stocks - mid cap		8,128						8,128
Stocks - small cap		16,423						16,423
Stocks - international		2,639						2,639
Mutual funds - equity				247,037				247,037
Mutual funds - fixed				34,014				34,014
Cash and cash equivalents		59,674						59,674
Limited partnerships						206		206
Total	$	107,863	$	329,412	$	206	$	437,481

Non-U.S. Plans
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at May 31, 2017
Pooled equities	$	-	$	82,626	$	-	$	82,626
Pooled fixed income				65,649				65,649
Foreign bonds				252				252
Insurance contracts						30,181		30,181
Mutual funds				1,181				1,181
Cash and cash equivalents		39						39
Total	$	39	$	149,708	$	30,181	$	179,928

U.S. Plans
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at May 31, 2016
U.S. Treasury and other government	$	-	$	9,533	$	-	$	9,533
State and municipal bonds				532				532
Foreign bonds				1,095				1,095
Mortgage-backed securities				12,289				12,289
Corporate bonds				21,035				21,035
Stocks - large cap		28,686						28,686
Stocks - mid cap		12,350						12,350
Stocks - small cap		24,361						24,361
Stocks - international		3,538						3,538
Mutual funds - equity				165,784				165,784
Mutual funds - fixed				27,611				27,611
Cash and cash equivalents		7,108						7,108
Limited partnerships						294		294
Total	$	76,043	$	237,879	$	294	$	314,216

Non-U.S. Plans
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at May 31, 2016
Pooled equities	$	-	$	70,452	$	-	$	70,452
Pooled fixed income				67,144				67,144
Foreign bonds				231				231
Insurance contracts						30,379		30,379
Mutual funds				1,214				1,214
Cash and cash equivalents		44						44
Total	$	44	$	139,041	$	30,379	$	169,464

Activity that Occurred for Level Three Assets

The following table includes the activity that occurred during the years ended May 31, 2017 and 2016 for our Level 3 assets:

			Actual Return on Plan Assets For:
	Balance at		Assets Still Held		Assets Sold		Purchases, Sales and			Balance at
(In thousands)	Beginning of Period		at Reporting Date		During Year		Settlements, net (1)			End of Period
Year ended May 31, 2017	$	30,673		1,096		-		(1,382	)	$	30,387
Year ended May 31, 2016		31,669		191		9		(1,196	)		30,673

(1) Includes the impact of exchange rate changes during the year.