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Pension Plans
3 Months Ended
Aug. 31, 2014
Pension Plans

NOTE 6 — PENSION PLANS

We offer defined benefit pension plans, defined contribution pension plans, as well as several unfunded health care benefit plans primarily for certain of our retired employees. The following tables provide the retirement-related benefit plans’ impact on income before income taxes for the three month periods ended August 31, 2014 and 2013:

 

     U.S. Plans     Non-U.S. Plans  
     Three Months Ended     Three Months Ended  
     August 31,     August 31,  

Pension Benefits

   2014     2013     2014     2013  
(In thousands)                         

Service cost

   $ 7,564     $ 6,764     $ 1,231     $ 1,109  

Interest cost

     5,002       4,510       1,891       1,800  

Expected return on plan assets

     (6,034     (5,190     (2,296     (2,095

Amortization of:

        

Prior service cost

     74       83       10       1  

Net actuarial losses recognized

     3,472       3,306       487       623  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Periodic Benefit Cost

   $ 10,078     $ 9,473     $ 1,323     $ 1,438  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

    U.S. Plans     Non-U.S. Plans  
    Three Months Ended     Three Months Ended  
    August 31,     August 31,  

Postretirement Benefits

    2014         2013         2014         2013    
(In thousands)                        

Service cost

  $ —       $ —       $ 313     $ 327  

Interest cost

    66       81       308       317  

Amortization of:

       

Prior service (credit)

    (62     (22    

Net actuarial (gains) losses recognized

    (34     (29     104       133  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net Periodic Benefit Cost

  $ (30   $ 30     $ 725     $ 777  
 

 

 

   

 

 

   

 

 

   

 

 

 

We previously disclosed in our financial statements for the fiscal year ended May 31, 2014 that we expected to contribute approximately $53.1 million to our retirement plans in the U.S. and approximately $6.3 million to plans outside the U.S. during the current fiscal year. As of August 31, 2014, this has not changed.

 

We have determined that our postretirement medical plan provides prescription drug benefits that will qualify for the federal subsidy provided by the Medicare Prescription Drug, Improvement and Modernization Act of 2003. For all groups of retirees, we have assumed that the subsidy will continue indefinitely. However, effective January 1, 2014, we changed our retiree medical offering to a Medicare Advantage Plan. Under the Medicare Advantage Plan, any Part D subsidy belongs to the insurance carrier. Our results reflect this change.