Employee Pension Plans (Tables)

12 Months Ended

May 31, 2020

Components of Net Periodic Pension Cost for the Defined Benefit Plan and Defined Contribution Plans

The following table summarizes the components of net periodic pension cost for the defined benefit plan and the defined contribution plans for the years ended May 31:

(in thousands)	2020			2019			2018
Defined benefit plan:
Interest cost	$	1,352		$	1,503		$	1,522
Return on plan assets		(1,928	)		(532	)		(1,361	)
Net amortization and deferral		628			(918	)		(20	)
Net periodic pension cost on defined benefit plan		52			53			141
Settlement cost		-			760			-
Defined contribution plans		16,495			16,308			14,972
Total retirement plan cost	$	16,547		$	17,121		$	15,113

Actuarial Assumptions Used for Defined Benefit Plan

The following actuarial assumptions were used for our defined benefit plan:

	2020			2019			2018
To determine benefit obligation:
Discount rate		2.65	%		3.57	%		4.02	%
To determine net periodic pension cost:
Discount rate		3.57	%		4.02	%		3.94	%
Expected long-term rate of return		7.00	%		7.00	%		7.00	%

Reconciliation of the Changes in the Projected Benefit Obligation and Fair Value of Plan Assets and the Funded Status of the Gerstenslager Plan

The following tables provide a reconciliation of the changes in the projected benefit obligation and fair value of plan assets and the funded status of the Gerstenslager Plan as of, and for the fiscal years ended May 31:

(in thousands)	2020			2019
Change in benefit obligation
Benefit obligation, beginning of year	$	38,519		$	38,010
Interest cost		1,352			1,503
Actuarial loss		7,671			1,868
Benefits paid		(1,375	)		(1,201	)
Settlements		-			(1,661	)
Benefits obligation, end of year	$	46,167		$	38,519
Change in plan assets
Fair value, beginning of year	$	26,258		$	27,212
Return on plan assets		1,928			532
Company contributions		1,699			1,376
Benefits paid		(1,375	)		(1,201	)
Settlements		-			(1,661	)
Fair value, end of year		28,510			26,258
Funded status	$	(17,657	)	$	(12,261	)
Amounts recognized in the consolidated balance sheets consist of:
Other liabilities	$	(17,657	)	$	(12,261	)
Accumulated other comprehensive loss		25,413			18,370
Amounts recognized in accumulated other comprehensive loss consist of:
Net loss		25,413			18,370
Total	$	25,413		$	18,370

Other Changes in Plan Assets And Benefit Obligations Recognized in OCI

The following table shows other changes in plan assets and benefit obligations recognized in OCI during the fiscal years ended May 31:

(in thousands)	2020			2019
Net loss	$	(7,596	)	$	(3,227	)
Amortization of prior service cost		-			-
Amortization of net loss		553			441
Extraordinary charges		-			759
Total recognized in other comprehensive loss	$	(7,043	)	$	(2,027	)
Total recognized in net periodic benefit cost and other comprehensive income	$	7,095		$	2,839

Plan Assets for Defined Benefit Plan

Plan assets for the defined benefit plan consisted principally of the following as of the respective measurement dates:

	May 31,			May 31,
	2020			2019
Asset category:
Equity securities		42	%		43	%
Debt securities		44	%		45	%
Other		14	%		12	%
Total		100	%		100	%

Estimated Future Benefits Expected to be Paid

The following estimated future benefits, which reflect expected future service, as appropriate, are expected to be paid under the defined benefit plan during the fiscal years noted:

(in thousands)
2021	$	1,404
2022	$	1,470
2023	$	1,516
2024	$	1,569
2025	$	1,635
2026-2030	$	9,740

Fair Value, Measurements, Recurring

Plan Assets for Defined Benefit Plan

The following table sets forth, by level within the fair value hierarchy, a summary of the defined benefit plan’s assets measured at fair value on a recurring basis at May 31, 2020:

			Quoted		Significant
			Prices		Other		Significant
			in Active		Observable		Unobservable
			Markets		Inputs		Inputs
(in thousands)	Fair Value		(Level 1)		(Level 2)		(level 3)
Investment:
Money market funds	$	1,613	$	1,613	$	-	$	-
Bond funds		12,619		12,619		-		-
Equity funds		11,885		11,885		-		-
Administrative funds		2,393		2,393
Total	$	28,510	$	28,510	$	-	$	-

The following table sets forth, by level within the fair value hierarchy, a summary of the defined benefit plan’s assets measured at fair value on a recurring basis at May 31, 2019:

			Quoted		Significant
			Prices		Other		Significant
			in Active		Observable		Unobservable
			Markets		Inputs		Inputs
(in thousands)	Fair Value		(Level 1)		(Level 2)		(level 3)
Investment:
Money market funds	$	3,109	$	3,109	$	-	$	-
Bond funds		11,865		11,865		-		-
Equity funds		11,284		11,284		-		-
Total	$	26,258	$	26,258	$	-	$	-