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Postretirement Benefits
 12 Months Ended
May 31, 2021
Postemployment Benefits [Abstract]  
Postretirement Benefits

NOTE O — POSTRETIREMENT BENEFITS

We sponsor several unfunded-healthcare-benefit plans for certain of our retired employees, as well as postretirement life insurance for certain key former employees. Eligibility for these benefits is based upon various requirements. The following table illustrates the effect on operations of these plans for the three years ended May 31, 2021:

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

(In thousands)

 

2021

 

2020

 

2019

 

 

2021

 

2020

 

2019

 

Service cost - benefits earned during the period

 

$

-

 

$

-

 

$

-

 

 

$

1,959

 

$

1,661

 

$

1,507

 

Interest cost on the accumulated obligation

 

 

74

 

 

149

 

 

192

 

 

 

1,286

 

 

1,089

 

 

1,122

 

Amortization of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service (credit)

 

 

(167

)

 

(219

)

 

(219

)

 

 

-

 

 

-

 

 

-

 

Net actuarial (gains) losses

 

 

42

 

 

(66

)

 

(26

)

 

 

590

 

 

611

 

 

442

 

Net Postretirement Benefit (Income) Cost

 

$

(51

)

$

(136

)

$

(53

)

 

$

3,835

 

$

3,361

 

$

3,071

 

 

The changes in benefit obligations of the plans at May 31, 2021 and 2020 were as follows:

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

(In thousands)

 

2021

 

2020

 

 

2021

 

2020

 

Accumulated postretirement benefit obligation at beginning of year

 

$

4,182

 

$

4,990

 

 

$

38,389

 

$

37,663

 

Service cost

 

 

-

 

 

-

 

 

 

1,959

 

 

1,661

 

Interest cost

 

 

74

 

 

149

 

 

 

1,286

 

 

1,089

 

Benefit payments

 

 

(1,902

)

 

(1,659

)

 

 

(673

)

 

(639

)

Actuarial (gains) losses

 

 

152

 

 

702

 

 

 

(6,415

)

 

(683

)

Currency exchange rate changes

 

 

-

 

 

-

 

 

 

5,428

 

 

(702

)

Accumulated and accrued postretirement benefit obligation at end of year

 

$

2,506

 

$

4,182

 

 

$

39,974

 

$

38,389

 

 

In determining the postretirement benefit amounts outlined above, measurement dates as of May 31 for each period were applied.

Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2021 and 2020 are as follows:

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

(In thousands)

 

2021

 

2020

 

 

2021

 

2020

 

Current liabilities

 

$

(238

)

$

(385

)

 

$

(931

)

$

(805

)

Noncurrent liabilities

 

 

(2,268

)

 

(3,797

)

 

 

(39,043

)

 

(37,584

)

Net Amount Recognized

 

$

(2,506

)

$

(4,182

)

 

$

(39,974

)

$

(38,389

)

 

The following table presents the pretax net actuarial (loss) and prior service credits recognized in accumulated other comprehensive income (loss) not affecting retained earnings:

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

(In thousands)

 

2021

 

2020

 

 

2021

 

2020

 

Net actuarial (loss)

 

$

(497

)

$

(386

)

 

$

(5,901

)

$

(11,331

)

Prior service credits

 

 

281

 

 

448

 

 

 

-

 

 

-

 

Total recognized in accumulated other comprehensive income not affecting retained

   earnings

 

$

(216

)

$

62

 

 

$

(5,901

)

$

(11,331

)

 

 

The following table includes the changes recognized in other comprehensive income:

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

(In thousands)

 

2021

 

2020

 

 

2021

 

2020

 

Changes in plan assets and benefit obligations recognized in other comprehensive

   income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service cost

 

$

-

 

$

-

 

 

$

-

 

$

-

 

Net loss (gain) arising during the year

 

 

152

 

 

702

 

 

 

(6,415

)

 

(683

)

Effect of exchange rates on amounts included in AOCI

 

 

-

 

 

-

 

 

 

1,574

 

 

(266

)

Amounts recognized as a component of net periodic benefit cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization or curtailment recognition of prior service credit

 

 

167

 

 

219

 

 

 

-

 

 

-

 

Amortization or settlement recognition of net gain (loss)

 

 

(41

)

 

66

 

 

 

(590

)

 

(611

)

Total recognized in other comprehensive loss (income)

 

$

278

 

$

987

 

 

$

(5,431

)

$

(1,560

)

 

The following weighted-average assumptions were used to determine our year-end benefit obligations and net periodic postretirement benefit costs under the plans:

 

 

 

U.S. Plans

 

 

 

Non-U.S. Plans

 

 

 

 

 

 

 

 

 

 

 

 

Year-End Benefit Obligations

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

 

 

Discount rate

 

 

2.47

%

 

 

 

2.44

%

 

 

 

3.51

%

 

 

 

3.32

%

 

 

 

 

 

 

 

 

 

 

 

Current healthcare cost trend rate

 

 

6.07

%

 

 

 

6.68

%

 

 

 

5.68

%

 

 

 

5.73

%

 

 

 

 

 

 

 

 

 

 

 

Ultimate healthcare cost trend rate

 

 

4.36

%

 

 

 

4.36

%

 

 

 

3.70

%

 

 

 

3.70

%

 

 

 

 

 

 

 

 

 

 

 

Year ultimate healthcare cost trend rate will be realized

 

 

2037

 

 

 

 

2037

 

 

 

 

2040

 

 

 

 

2040

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Plans

 

 

 

Non-U.S. Plans

 

 

Net Periodic Postretirement Cost

 

2021

 

2020

 

2019

 

2021

 

2020

 

2019

Discount rate

 

 

2.44

%

 

 

 

3.44

%

 

 

 

4.03

%

 

 

 

3.32

%

 

 

 

3.22

%

 

 

 

3.70

%

 

Healthcare cost trend rate

 

 

6.68

%

 

 

 

7.29

%

 

 

 

7.86

%

 

 

 

5.73

%

 

 

 

5.77

%

 

 

 

6.02

%

 

Ultimate healthcare cost trend rate

 

 

4.36

%

 

 

 

4.36

%

 

 

 

4.36

%

 

 

 

3.70

%

 

 

 

3.70

%

 

 

 

4.20

%

 

Year ultimate healthcare cost trend rate will be realized

 

 

2037

 

 

 

 

2037

 

 

 

 

2037

 

 

 

 

2040

 

 

 

 

2040

 

 

 

 

2032

 

 

 

 

We expect to pay approximately $1.2 million to $1.5 million in estimated postretirement benefits in each of the next five years.  In the five years thereafter (2027-2031), we expect to pay a cumulative total of $9.3 million.