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 nine month periods ended February 28, 2018 and 2017:

	U.S. Plans						Non-U.S. Plans
	Three Months Ended						Three Months Ended
	February 28,			February 28,			February 28,			February 28,
Pension Benefits	2018			2017			2018			2017
(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			451			573
Net Periodic Benefit Cost	$	9,405		$	13,074		$	787		$	1,038

	U.S. Plans						Non-U.S. Plans
	Three Months Ended						Three Months Ended
	February 28,			February 28,			February 28,		February 28,
Postretirement Benefits	2018			2017			2018		2017
(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
	Nine Months Ended						Nine Months Ended
	February 28,			February 28,			February 28,			February 28,
Pension Benefits	2018			2017			2018			2017
(In thousands)
Service cost	$	28,395		$	28,203		$	3,525		$	3,381
Interest cost		13,137			12,993			3,435			3,672
Expected return on plan assets		(24,258	)		(18,756	)		(5,934	)		(5,658	)
Amortization of:
Prior service cost		87			162			(18	)		-
Net actuarial losses recognized		10,854			16,620			1,353			1,719
Net Periodic Benefit Cost	$	28,215		$	39,222		$	2,361		$	3,114

	U.S. Plans						Non-U.S. Plans
	Nine Months Ended						Nine Months Ended
	February 28,			February 28,			February 28,		February 28,
Postretirement Benefits	2018			2017			2018		2017
(In thousands)
Service cost	$	-		$	-		$	933	$	852
Interest cost		129			171			672		666
Amortization of:
Prior service (credit)		(165	)		(174	)		-		-
Net actuarial losses recognized		18			-			237		180
Net Periodic Benefit (Credit) Cost	$	(18	)	$	(3	)	$	1,842	$	1,698

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 February 28, 2018, we contributed an additional $52.8 million to the pension plans in the U.S., which will increase our total expected U.S. contributions for fiscal 2018 to $53.8 million.