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Postretirement Benefits
12 Months Ended
May 31, 2024
Postemployment Benefits [Abstract]  
Postretirement Benefits

NOTE O — POSTRETIREMENT BENEFITS

We sponsor several unfunded-healthcare-benefit plans for certain of our retired associates, as well as postretirement life insurance for certain former associates. 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, 2024:

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

(In thousands)

 

2024

 

2023

 

2022

 

 

2024

 

2023

 

2022

 

Service cost

 

$

-

 

$

-

 

$

-

 

 

$

2,259

 

$

1,951

 

$

1,623

 

Interest cost

 

 

87

 

 

84

 

 

41

 

 

 

1,550

 

 

1,374

 

 

1,124

 

Amortization of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service (credit)

 

 

-

 

 

(121

)

 

(161

)

 

 

-

 

 

-

 

 

-

 

Net actuarial (gains) losses

 

 

(15

)

 

43

 

 

61

 

 

 

(49

)

 

(51

)

 

121

 

Net Postretirement Benefit Cost (Income)

 

$

72

 

$

6

 

$

(59

)

 

$

3,760

 

$

3,274

 

$

2,868

 

The changes in benefit obligations of the plans at May 31, 2024 and 2023 were as follows:

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

(In thousands)

 

2024

 

2023

 

 

2024

 

2023

 

Accumulated postretirement benefit obligation at beginning of year

 

$

1,768

 

$

2,260

 

 

$

31,037

 

$

30,645

 

Service cost

 

 

-

 

 

-

 

 

 

2,259

 

 

1,951

 

Interest cost

 

 

87

 

 

84

 

 

 

1,550

 

 

1,374

 

Benefit payments

 

 

(149

)

 

(207

)

 

 

(674

)

 

(557

)

Actuarial (gains)

 

 

(85

)

 

(369

)

 

 

(7,983

)

 

(276

)

Currency exchange rate changes

 

 

-

 

 

-

 

 

 

(131

)

 

(2,100

)

Accumulated and accrued postretirement benefit obligation at end of year

 

$

1,621

 

$

1,768

 

 

$

26,058

 

$

31,037

 

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, 2024 and 2023 are as follows:

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

(In thousands)

 

2024

 

2023

 

 

2024

 

2023

 

Current liabilities

 

$

(194

)

$

(207

)

 

$

(895

)

$

(989

)

Noncurrent liabilities

 

 

(1,427

)

 

(1,561

)

 

 

(25,163

)

 

(30,048

)

Net Amount Recognized

 

$

(1,621

)

$

(1,768

)

 

$

(26,058

)

$

(31,037

)

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

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

(In thousands)

 

2024

 

2023

 

 

2024

 

2023

 

Net actuarial gain

 

$

170

 

$

99

 

 

$

11,785

 

$

3,838

 

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

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

(In thousands)

 

2024

 

2023

 

 

2024

 

2023

 

Changes in plan assets and benefit obligations recognized in other comprehensive loss
   (income):

 

 

 

 

 

 

 

 

 

 

Net (gain) arising during the year

 

$

(85

)

$

(369

)

 

$

(7,983

)

$

(276

)

Effect of exchange rates on amounts included in AOCI

 

 

-

 

 

-

 

 

 

(13

)

 

265

 

Amounts recognized as a component of net periodic benefit cost:

 

 

 

 

 

 

 

 

 

 

Amortization or curtailment recognition of prior service credit

 

 

-

 

 

121

 

 

 

-

 

 

-

 

Amortization or settlement recognition of net gain (loss)

 

 

15

 

 

(44

)

 

 

49

 

 

51

 

Total recognized in other comprehensive loss (income)

 

$

(70

)

$

(292

)

 

$

(7,947

)

$

40

 

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

 

2024

 

2023

 

2024

 

2023

 

Discount rate

 

 

5.50

%

 

 

 

5.20

%

 

 

 

5.03

%

 

 

 

5.10

%

Current healthcare cost trend rate

 

 

8.90

%

 

 

 

6.00

%

 

 

 

5.21

%

 

 

 

5.53

%

Ultimate healthcare cost trend rate

 

 

4.04

%

 

 

 

4.03

%

 

 

 

3.70

%

 

 

 

3.70

%

Year ultimate healthcare cost trend rate will be realized

 

 

2049

 

 

 

 

2045

 

 

 

 

2040

 

 

 

 

2040

 

 

 

 

U.S. Plans

 

 

 

Non-U.S. Plans

 

 

Net Periodic Postretirement Cost

 

2024

 

2023

 

2022

 

2024

 

2023

 

2022

Discount rate

 

 

5.20

%

 

 

 

4.36

%

 

 

 

2.47

%

 

 

 

5.10

%

 

 

 

5.13

%

 

 

 

3.51

%

 

Current healthcare cost trend rate

 

 

6.00

%

 

 

 

6.23

%

 

 

 

6.07

%

 

 

 

5.53

%

 

 

 

5.58

%

 

 

 

5.68

%

 

Ultimate healthcare cost trend rate

 

 

4.03

%

 

 

 

4.03

%

 

 

 

4.36

%

 

 

 

3.70

%

 

 

 

3.70

%

 

 

 

3.70

%

 

Year ultimate healthcare cost trend rate will be realized

 

 

2045

 

 

 

 

2045

 

 

 

 

2037

 

 

 

 

2040

 

 

 

 

2040

 

 

 

 

2040

 

 

We expect to pay approximately $1.1 million to $1.4 million in estimated postretirement benefits in each of the next five years. In the five years thereafter (2030-2034), we expect to pay a cumulative total of $8.1 million.