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Pension Plans
6 Months Ended
Nov. 30, 2018
Compensation And Retirement Disclosure [Abstract]  
Pension Plans

NOTE 13 — PENSION PLANS

We offer defined benefit pension plans, defined contribution pension plans, and various postretirement benefit plans.  The following tables provide the retirement-related benefit plans’ impact on income before income taxes for the three and six months ended November 30, 2018 and 2017:

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

November 30,

 

 

November 30,

 

 

November 30,

 

 

November 30,

 

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

 

 

 

November 30,

 

 

November 30,

 

 

November 30,

 

 

November 30,

 

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 (gains) losses recognized

 

 

(6

)

 

 

6

 

 

 

115

 

 

 

79

 

Net Periodic Benefit (Credit) Cost

 

$

(13

)

 

$

(6

)

 

$

798

 

 

$

614

 

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

 

 

Six Months Ended

 

 

Six Months Ended

 

 

 

November 30,

 

 

November 30,

 

 

November 30,

 

 

November 30,

 

Pension Benefits

 

2018

 

 

2017

 

 

2018

 

 

2017

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

18,764

 

 

$

18,930

 

 

$

2,438

 

 

$

2,350

 

Interest cost

 

 

10,994

 

 

 

8,758

 

 

 

2,798

 

 

 

2,290

 

Expected return on plan assets

 

 

(16,934

)

 

 

(16,172

)

 

 

(4,102

)

 

 

(3,956

)

Amortization of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service cost (credit)

 

 

58

 

 

 

58

 

 

 

(16

)

 

 

(12

)

Net actuarial losses recognized

 

 

6,544

 

 

 

7,236

 

 

 

638

 

 

 

838

 

Net Periodic Benefit Cost

 

$

19,426

 

 

$

18,810

 

 

$

1,756

 

 

$

1,510

 

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

 

 

Six Months Ended

 

 

Six Months Ended

 

 

 

November 30,

 

 

November 30,

 

 

November 30,

 

 

November 30,

 

Postretirement Benefits

 

2018

 

 

2017

 

 

2018

 

 

2017

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

-

 

 

$

-

 

 

$

784

 

 

$

622

 

Interest cost

 

 

96

 

 

 

86

 

 

 

582

 

 

 

448

 

Amortization of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service (credit)

 

 

(110

)

 

 

(110

)

 

 

-

 

 

 

-

 

Net actuarial (gains) losses recognized

 

 

(12

)

 

 

12

 

 

 

230

 

 

 

158

 

Net Periodic Benefit (Credit) Cost

 

$

(26

)

 

$

(12

)

 

$

1,596

 

 

$

1,228

 

 

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, 2018 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, and as of November 30, 2018, those amounts remain unchanged.