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 months ended August 31, 2018 and 2017:

	U.S. Plans						Non-U.S. Plans
	Three Months Ended						Three Months Ended
	August 31,			August 31,			August 31,			August 31,
Pension Benefits	2018			2017			2018			2017
(In thousands)
Service cost	$	9,382		$	9,465		$	1,219		$	1,175
Interest cost		5,497			4,379			1,399			1,145
Expected return on plan assets		(8,467	)		(8,086	)		(2,051	)		(1,978	)
Amortization of:
Prior service cost (credit)		29			29			(8	)		(6	)
Net actuarial losses recognized		3,272			3,618			319			419
Net Periodic Benefit Cost	$	9,713		$	9,405		$	878		$	755

	U.S. Plans						Non-U.S. Plans
	Three Months Ended						Three Months Ended
	August 31,			August 31,			August 31,		August 31,
Postretirement Benefits	2018			2017			2018		2017
(In thousands)
Service cost	$	-		$	-		$	392	$	311
Interest cost		48			43			291		224
Amortization of:
Prior service (credit)		(55	)		(55	)
Net actuarial losses recognized		(6	)		6			115		79
Net Periodic Benefit (Credit) Cost	$	(13	)	$	(6	)	$	798	$	614

Due to slightly higher discount rates and increased asset values, offset by higher interest cost and lump sum mortality rates, pension expense for fiscal 2019 is comparable to our fiscal 2018 pension expense level. 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, 2019 that we expected to contribute approximately $1.3 million to our retirement plans in the U.S. and approximately $8.1 million to plans outside the U.S. during the current fiscal year.