NOTE 13 — 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, 2017 and 2016:

	U.S. Plans						Non-U.S. Plans
	Three Months Ended						Three Months Ended
	November 30,			November 30,			November 30,			November 30,
Pension Benefits	2017			2016			2017			2016
(In thousands)
Service cost	$	9,465		$	9,401		$	1,175		$	1,127
Interest cost		4,379			4,331			1,145			1,224
Expected return on plan assets		(8,086	)		(6,252	)		(1,978	)		(1,886	)
Amortization of:
Prior service cost (credit)		29			54			(6	)
Net actuarial losses recognized		3,618			5,540			419			573
Net Periodic Benefit Cost	$	9,405		$	13,074		$	755		$	1,038

	U.S. Plans						Non-U.S. Plans
	Three Months Ended						Three Months Ended
	November 30,			November 30,			November 30,		November 30,
Postretirement Benefits	2017			2016			2017		2016
(In thousands)
Service cost	$	-		$	-		$	311	$	284
Interest cost		43			57			224		222
Amortization of:
Prior service (credit)		(55	)		(58	)
Net actuarial losses recognized		6						79		60
Net Periodic Benefit (Credit) Cost	$	(6	)	$	(1	)	$	614	$	566

	U.S. Plans						Non-U.S. Plans
	Six Months Ended						Six Months Ended
	November 30,			November 30,			November 30,			November 30,
Pension Benefits	2017			2016			2017			2016
(In thousands)
Service cost	$	18,930		$	18,802		$	2,350		$	2,254
Interest cost		8,758			8,662			2,290			2,448
Expected return on plan assets		(16,172	)		(12,504	)		(3,956	)		(3,772	)
Amortization of:
Prior service cost		58			108			(12	)		-
Net actuarial losses recognized		7,236			11,080			838			1,146
Net Periodic Benefit Cost	$	18,810		$	26,148		$	1,510		$	2,076

	U.S. Plans						Non-U.S. Plans
	Six Months Ended						Six Months Ended
	November 30,			November 30,			November 30,		November 30,
Postretirement Benefits	2017			2016			2017		2016
(In thousands)
Service cost	$	-		$	-		$	622	$	568
Interest cost		86			114			448		444
Amortization of:
Prior service (credit)		(110	)		(116	)		-		-
Net actuarial losses recognized		12			-			158		120
Net Periodic Benefit (Credit) Cost	$	(12	)	$	(2	)	$	1,228	$	1,132

The decrease in pension and postretirement benefit cost from fiscal 2017 to 2018 reflects the impact of increased asset values, which we expect will generate higher returns, and a change in estimate for lump sum valuations. 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, 2017 that we expected to contribute approximately $1.0 million to our retirement plans in the U.S. and approximately $7.0 million to plans outside the U.S. during the current fiscal year. As of November 30, 2017, this has not changed.