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Employee Benefit Plans
 12 Months Ended
May 31, 2024
Retirement Benefits [Abstract]  
Employee Benefit Plans EMPLOYEE BENEFIT PLANS
Pension Plans

The Company has a defined benefit pension plan (the “UK Pension Plan”) that covers certain employees located in the United Kingdom who meet various eligibility requirements. Benefits are based on years of service and on a percentage of compensation near retirement. The UK Pension Plan is funded by contributions from the Company. The Company’s UK Pension Plan has a measurement date of May 31.

Postretirement Benefits

The Company provides postretirement benefits to eligible retired United States-based employees (the “US Postretirement Benefits”) consisting of certain healthcare and life insurance benefits. Employees became eligible for these benefits after completing certain minimum age and service requirements. Effective June 1, 2009, the Company modified the terms of the Postretirement Benefits, effectively excluding a large percentage of employees from the plan. The Company’s postretirement benefit plan has a measurement date of May 31.

The Medicare Prescription Drug, Improvement and Modernization Act (the “Medicare Act”) introduced a prescription drug benefit under Medicare (“Medicare Part D”) as well as a Federal subsidy of 28% to sponsors of retiree health care benefit plans providing a benefit that is at least actuarially equivalent to Medicare Part D. The Company has determined that the US Postretirement benefits provided to its retiree population are in aggregate the actuarial equivalent of the benefits under Medicare Part D. As a result, in fiscal 2024, 2023 and 2022, the Company recognized a cumulative reduction of its accumulated postretirement benefit obligation of $0.1, $0.1 and $0.2, respectively, due to the Federal subsidy under the Medicare Act.
The following table sets forth the weighted average actuarial assumptions utilized to determine the benefit obligations for the UK Pension Plan and the US Postretirement Benefits at May 31:
 UK Pension PlanUS Postretirement Benefits
 202420232022202420232022
Weighted average assumptions used to determine benefit obligations:      
Discount rate5.2 %5.4 %3.5 %5.5 %5.3 %4.3 %
Rate of compensation increase4.1 %4.0 %4.1 %— — — 
Weighted average assumptions used to determine net periodic benefit cost:
Discount rate5.5 %1.9 %1.6 %5.2 %3.9 %1.7 %
Expected long-term return on plan assets5.6 %4.4 %3.1 %— — — 
Rate of compensation increase4.0 %4.1 %4.1 %— — — 

To develop the expected long-term rate of return on plan assets assumption for the UK Pension Plan, the Company considers historical returns and future expectations. Considering this information and the potential for lower future returns due to a generally lower interest rate environment, the Company selected an assumed weighted average long-term rate of return on plan assets of 5.6% for the UK Pension Plan.

The following table sets forth the change in benefit obligation for the UK Pension Plan and US Postretirement Benefits at May 31: 
 UK Pension PlanUS Postretirement Benefits
 2024202320242023
Change in benefit obligation:    
Benefit obligation at beginning of year$25.1 $31.9 $8.0 $9.4 
Interest cost1.3 1.0 0.3 0.3 
Plan participants’ contributions— — 0.10.0
Actuarial losses (gains)0.9 (6.7)(0.3)(0.8)
Foreign currency translation0.7 (0.3)— — 
Benefits paid, including expenses(1.3)(0.8)(0.9)(0.9)
Benefit obligation at end of year$26.7 $25.1 $7.2 $8.0 

The net actuarial loss included in the projected benefit obligation for the UK Pension in fiscal 2024 was primarily due to the decrease in discount rate and impact of inflation. The net actuarial gain included in the projected benefit obligation for the UK Pension in fiscal 2023 was primarily due to the significant increase in discount rate and impact of inflation.

The net actuarial gain included in the projected benefit obligation for the US Postretirement Benefits in fiscal 2024 was primarily attributable to the increase in discount rate and updated census data. The net actuarial gain included in the projected benefit obligation for the US Postretirement Benefits in fiscal 2023 was primarily attributable to the increase in discount rate and updated census data.
The following table sets forth the change in plan assets for the UK Pension Plan at May 31:
 UK Pension Plan
 20242023
Change in plan assets:  
Fair value of plan assets at beginning of year$19.6 $30.4 
Actual return on plan assets1.4 (10.9)
Employer contributions1.2 1.1 
Benefits paid, including expenses(1.3)(0.8)
Foreign currency translation0.5 (0.2)
Fair value of plan assets at end of year$21.4 $19.6 

The following table sets forth the net funded status of the UK Pension Plan and US Postretirement Benefits and the related amounts recognized on the Company’s Consolidated Balance Sheets at May 31:
 UK Pension PlanUS Postretirement Benefits
 2024202320242023
Current liabilities$— $— $(1.0)$(1.0)
Non-current liabilities(5.3)(5.5)(6.2)(7.0)
Net funded balance$(5.3)$(5.5)$(7.2)$(8.0)


The following amounts were recognized in Accumulated other comprehensive income (loss) for the UK Pension Plan and US Postretirement Benefits on the Company’s Consolidated Balance Sheets at May 31:
 20242023
 UK Pension
Plan		US Postretirement
Benefits		TotalUK Pension
Plan		US Postretirement
Benefits		Total
Actuarial gain (loss)$(11.8)$1.5 $(10.3)$(12.4)$1.3 $(11.1)
Prior service credit (cost)0.0 6.7 6.7 0.0 7.5 7.5 
Amount recognized in
 Accumulated comprehensive
 income (loss) net of tax		(11.8)6.2 (5.6)(12.4)6.6 (5.8)

Income tax expense of $2.0, $2.2 and $2.2 were recognized in Accumulated other comprehensive loss at May 31, 2024, 2023 and 2022, respectively.

The following table sets forth the projected benefit obligations, accumulated benefit obligations and the fair value of plan assets with respect to the UK Pension Plan as of May 31:
UK Pension Plan
 20242023
Projected benefit obligations$26.7 $25.1 
Accumulated benefit obligations26.7 25.0 
Fair value of plan assets21.4 19.6 
The following table sets forth the net periodic benefit (cost) for the UK Pension Plan and US Postretirement Benefits for the fiscal years ended May 31:
 UK Pension PlanUS Postretirement Benefits
 202420232022202420232022
Components of net (benefit) cost:      
Interest cost1.3 1.0 0.8 0.3 0.3 0.2 
Expected return on assets(1.1)(1.3)(1.2)— — — 
Amortization of prior service (credit) loss0.0 0.0 0.0 (0.8)(0.8)(0.8)
Amortization of net actuarial (gain) loss1.3 0.5 0.9 0.0— — 
Net periodic (benefit) cost$1.5 $0.2 $0.5 $(0.5)$(0.5)$(0.6)

Actuarial gains and losses are amortized using a corridor approach. The gain or loss corridor is equal to 10% of the greater of the projected benefit obligation and the market-related value of assets. Gains and losses in excess of the corridor are amortized over the future working lifetime.

Plan Assets

The Company’s investment policy with regard to the assets in the UK Pension Plan is to actively manage, within acceptable risk parameters, certain asset classes where the potential exists to outperform the broader market.

The following table sets forth the total weighted average asset allocations for the UK Pension Plan by asset category at May 31:
UK Pension Plan
20242023
Equity securities— %29.6 %
Debt securities37.3 %— %
Cash and cash equivalents 4.1 %5.1 %
Liability-driven instruments43.5 %41.7 %
Real estate— %6.8 %
Other15.1 %16.8 %
 100.0 %100.0 %

The following table sets forth the targeted weighted average asset allocations for the UK Pension Plan included in the Company’s investment policy:
UK Pension Plan
Debt securities
37 %
Cash and cash equivalents 4 %
Liability-driven instruments44 %
Real estate— %
Other 15 %
Total 100 %

The fair values of the Company’s Pension Plan assets are measured using Level 1, Level 2 and Level 3 fair value measurements.
The following table sets forth the measurement of the Company’s Pension Plan assets at fair value by asset category at the respective dates:
 Assets at Fair Value as of May 31, 2024
UK Pension Plan
 Level 1Level 2Level 3Total
Cash and cash equivalents$0.9 $— $— $0.9 
Pooled, Common and Collective Funds (1) (2)
— 9.3 — 9.3 
Fixed Income (3)
— 8.0 — 8.0 
Annuities— — 3.2 3.2 
Total$0.9 $17.3 $3.2 $21.4 
 Assets at Fair Value as of May 31, 2023
UK Pension Plan
 Level 1Level 2Level 3Total
Cash and cash equivalents$1.0 $— $— $1.0 
Equity securities:   
  U.S. (4)
1.1 — — 1.1 
  International (5)
4.7 — — 4.7 
Pooled, Common and Collective Funds (1) (2)
— 8.2 — 8.2 
Annuities— — 3.3 3.3 
Real estate (6)
1.3 — — 1.3 
Total$8.1 $8.2 $3.3 $19.6 

(1)    Funds which invest in UK government bonds and bond index-linked investments and interest rate and inflation swaps. There are no restrictions on these investments.
(2)    Funds which invest in bond index funds available to certain qualified retirement plans but not traded openly on any public exchanges. There are no restrictions on these investments.
(3)    Funds which invest in a diversified portfolio of publicly traded government bonds, corporate bonds and mortgage-backed securities. There are no restrictions on these investments.
(4)    Funds which invest in a diversified portfolio of publicly traded U.S. common stocks of large-cap, medium-cap and small-cap companies. There are no restrictions on these investments.
(5)    Funds which invest in a diversified portfolio of publicly traded common stocks of non-U.S. companies, primarily in Europe and Asia. There are no restrictions on these investments.
(6)    Represents assets of a non-U.S. entity plan invested in a fund whose underlying investments are comprised of properties. The fund has publicly available quoted market prices and there are no restrictions on these investments.
    
The Company has purchased annuities to service fixed payments to certain retired plan participants in the UK. These annuities are purchased from investment grade counterparties. These annuities are not traded on open markets and are therefore valued based upon the actuarial determined valuation, and related assumptions, of the underlying projected benefit obligation, a Level 3 valuation technique. The fair value of these assets was $3.2 and $3.3 at May 31, 2024 and May 31, 2023, respectively. 
The following table summarizes the changes in fair value of these Level 3 assets for the fiscal years ended May 31, 2024 and 2023:

Balance at May 31, 2022$4.2 
Actual Return on Plan Assets: 
Relating to assets held at May 31, 2022
(0.9)
Relating to assets sold during the year— 
Purchases, sales and settlements, net— 
Transfers in and/or out of Level 3— 
Foreign currency translation0.0 
Balance at May 31, 2023$3.3 
Actual Return on Plan Assets: 
Relating to assets held at May 31, 2023
(0.1)
Relating to assets sold during the year— 
Purchases, sales and settlements, net— 
Transfers in and/or out of Level 3— 
Foreign currency translation0.0 
Balance at May 31, 2024$3.2 

Contributions
 
In Fiscal 2025, the Company expects to make contributions of $1.3 to the UK Pension Plan.
 
Estimated future benefit payments
 
The following table sets forth the expected future benefit payments under the UK Pension Plan and the US Postretirement Benefits by fiscal year:
 UK Pension Plan US Postretirement Benefits
 Pension benefits Benefit
payments		Medicare
subsidy
receipts
2025$1.5 $1.0 $0.0 
20261.4 0.9 0.0 
20271.4 0.9 0.0 
20281.5 0.8 0.0 
20291.5 0.7 0.0 
2030 - 20348.0 2.9 0.1 

Assumed health care cost trend rates at May 31:
20242023
Health care cost trend rate assumed for the next fiscal year6.3 %6.0 %
Rate to which the cost trend is assumed to decline (the ultimate trend rate)5.0 %5.0 %
Year that the rate reaches the ultimate trend rate20302028

Defined contribution plans

The Company also provides defined contribution plans for certain eligible employees. In the United States, the Company sponsors a 401(k) retirement plan and has contributed $8.7, $8.1 and $7.2 for fiscal years 2024, 2023 and 2022, respectively.