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Retirement Plans
 9 Months Ended
Feb. 29, 2020
Compensation And Retirement Disclosure [Abstract]  
Retirement Plans

(6) Retirement Plans

We sponsor programs that provide retirement benefits to most of our employees. These programs include defined benefit pension plans, defined contribution plans and postretirement healthcare plans. Key terms of our retirement plans are provided in our Annual Report.

Our retirement plans costs for the periods ended February 29, 2020 and February 28, 2019 were as follows (in millions):

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Defined benefit pension plans, net

 

$

38

 

 

$

28

 

 

$

112

 

 

$

85

 

Defined contribution plans

 

 

147

 

 

 

138

 

 

 

425

 

 

 

415

 

Postretirement healthcare plans

 

 

21

 

 

 

19

 

 

 

64

 

 

 

56

 

 

 

$

206

 

 

$

185

 

 

$

601

 

 

$

556

 

 

Net periodic benefit cost of the pension and postretirement healthcare plans for the periods ended February 29, 2020 and February 28, 2019 included the following components (in millions):

 

 

 

Three Months Ended

 

 

 

U.S. Pension Plans

 

 

International Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Service cost

 

$

192

 

 

$

173

 

 

$

25

 

 

$

23

 

 

$

10

 

 

$

9

 

Other retirement plans (income) expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Interest cost

 

 

250

 

 

 

237

 

 

 

11

 

 

 

13

 

 

 

11

 

 

 

10

 

    Expected return on plan assets

 

 

(400

)

 

 

(376

)

 

 

(13

)

 

 

(12

)

 

 

—

 

 

 

—

 

   Amortization of prior service credit and other

 

 

(26

)

 

 

(30

)

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

(176

)

 

 

(169

)

 

 

(3

)

 

 

1

 

 

 

11

 

 

 

10

 

 

 

$

16

 

 

$

4

 

 

$

22

 

 

$

24

 

 

$

21

 

 

$

19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

 

U.S. Pension Plans

 

 

International Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Service cost

 

$

576

 

 

$

517

 

 

$

73

 

 

$

72

 

 

$

31

 

 

$

26

 

Other retirement plans (income) expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Interest cost

 

 

750

 

 

 

713

 

 

 

33

 

 

 

38

 

 

 

33

 

 

 

30

 

    Expected return on plan assets

 

 

(1,201

)

 

 

(1,129

)

 

 

(39

)

 

 

(36

)

 

 

—

 

 

 

—

 

   Amortization of prior service credit and other

 

 

(78

)

 

 

(89

)

 

 

(2

)

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

 

(529

)

 

 

(505

)

 

 

(8

)

 

 

1

 

 

 

33

 

 

 

30

 

 

 

$

47

 

 

$

12

 

 

$

65

 

 

$

73

 

 

$

64

 

 

$

56

 

We made voluntary contributions to our U.S. Pension Plans of $1.0 billion during the nine months of 2020 and 2019.

During the second quarter of 2020, we announced the closing of our U.S.-based defined benefit pension plans to new non-union employees hired on or after January 1, 2020. We will introduce an all 401(k) plan retirement benefit structure for eligible employees with a higher company match of up to 8% across all U.S.-based operating companies. During 2020, current eligible employees under the Portable Pension Account (PPA) pension formula will be given a one-time option to continue to be eligible for pension compensation credits under the existing PPA formula and remain in the existing 401(k) plan with its match of up to 3.5%, or to cease receiving compensation credits under the pension plan and move to the new 401(k) plan with the higher match of up to 8%. Changes to the new 401(k) plan structure become effective beginning January 1, 2021. While this new program will provide employees greater flexibility and reduce our long-term pension costs, it will not have a material impact on current or near-term financial results.