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Postretirement Benefits (Tables) - Postretirement Benefits - Unfunded-Health-Care-Benefit Plans
12 Months Ended
May 31, 2018
Components of Net Periodic Pension and Postretirement Costs

The following table illustrates the effect on operations of these plans for the three years ended May 31, 2018:

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

(In thousands)

 

2018

 

2017

 

2016

 

 

2018

 

2017

 

2016

 

Service cost - benefits earned during the period

 

$

-

 

$

-

 

$

-

 

 

$

1,307

 

$

1,097

 

$

1,061

 

Interest cost on the accumulated obligation

 

 

173

 

 

229

 

 

235

 

 

 

939

 

 

854

 

 

832

 

Amortization of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service (credit)

 

 

(220

)

 

(235

)

 

(247

)

 

 

 

 

 

 

 

 

 

 

Net actuarial (gains) losses

 

 

24

 

 

 

 

 

 

 

 

 

332

 

 

230

 

 

229

 

Net Postretirement Benefit (Income) Cost

 

$

(23

)

$

(6

)

$

(12

)

 

$

2,578

 

$

2,181

 

$

2,122

 

 

Changes in Benefit Obligations

The changes in benefit obligations of the plans at May 31, 2018 and 2017 were as follows:

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

(In thousands)

 

2018

 

2017

 

 

2018

 

2017

 

Accumulated postretirement benefit obligation at beginning of year

 

$

5,892

 

$

7,653

 

 

$

27,868

 

$

25,420

 

Service cost

 

 

 

 

 

 

 

 

 

1,307

 

 

1,097

 

Interest cost

 

 

173

 

 

229

 

 

 

939

 

 

854

 

Benefit payments

 

 

(297

)

 

(2,383

)

 

 

(604

)

 

(529

)

Actuarial (gains) losses

 

 

(400

)

 

393

 

 

 

2,638

 

 

1,766

 

Currency exchange rate changes

 

 

 

 

 

 

 

 

 

1,133

 

 

(740

)

Accumulated and accrued postretirement benefit obligation at end of year

 

$

5,368

 

$

5,892

 

 

$

33,281

 

$

27,868

 

 

Amounts Recognized in Consolidated Balance Sheet

Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2018 and 2017 are as follows:

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

(In thousands)

 

2018

 

2017

 

 

2018

 

2017

 

Current liabilities

 

$

(427

)

$

(411

)

 

$

(696

)

$

(522

)

Noncurrent liabilities

 

 

(4,941

)

 

(5,481

)

 

 

(32,585

)

 

(27,346

)

Net Amount Recognized

 

$

(5,368

)

$

(5,892

)

 

$

(33,281

)

$

(27,868

)

 

Pretax Net Actuarial Loss and Prior Service (Costs) Recognized in Accumulated Other Comprehensive Income (Loss) not Affecting Retained Earnings

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

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

(In thousands)

 

2018

 

2017

 

 

2018

 

2017

 

Net actuarial gain (loss)

 

$

124

 

$

(299

)

 

$

(9,951

)

$

(7,354

)

Prior service credits

 

 

887

 

 

1,107

 

 

 

 

 

 

 

 

Total recognized in accumulated other comprehensive income not affecting retained

   earnings

 

$

1,011

 

$

808

 

 

$

(9,951

)

$

(7,354

)

 

Changes Recognized in Other Comprehensive Income

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

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

(In thousands)

 

2018

 

2017

 

 

2018

 

2017

 

Changes in plan assets and benefit obligations recognized in other comprehensive

   income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service cost

 

$

-

 

$

-

 

 

$

-

 

$

-

 

Net loss (gain) arising during the year

 

 

(400

)

 

393

 

 

 

2,638

 

 

1,766

 

Effect of exchange rates on amounts included in AOCI

 

 

 

 

 

 

 

 

 

291

 

 

(168

)

Amounts recognized as a component of net periodic benefit cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization or curtailment recognition of prior service credit (cost)

 

 

220

 

 

234

 

 

 

 

 

 

 

 

Amortization or settlement recognition of net gain (loss)

 

 

(24

)

 

-

 

 

 

(332

)

 

(230

)

Total recognized in other comprehensive loss (income)

 

$

(204

)

$

627

 

 

$

2,597

 

$

1,368

 

 

Weighted-Average Assumptions used to Determine Benefit Obligations and Net Periodic and Postretirement Costs

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

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

 

 

 

 

 

 

Discount rate

 

 

4.03

%

 

 

3.61

%

 

 

3.70

%

 

 

3.61

%

 

 

 

 

 

 

 

 

Current healthcare cost trend rate

 

 

7.86

%

 

 

14.75

%

 

 

6.02

%

 

 

5.85

%

 

 

 

 

 

 

 

 

Ultimate healthcare cost trend rate

 

 

4.36

%

 

 

4.36

%

 

 

4.20

%

 

 

4.20

%

 

 

 

 

 

 

 

 

Year ultimate healthcare cost trend rate will be realized

 

 

2037

 

 

 

2037

 

 

 

2032

 

 

 

2030

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

Net Periodic Postretirement Cost

 

2018

 

 

2017

 

 

2016

 

 

2018

 

 

2017

 

 

2016

 

Discount rate

 

 

3.61

%

 

 

3.76

%

 

 

3.95

%

 

 

3.61

%

 

 

3.92

%

 

 

4.00

%

Healthcare cost trend rate

 

 

14.75

%

 

 

10.37

%

 

 

11.34

%

 

 

5.85

%

 

 

5.98

%

 

 

6.06

%

Ultimate healthcare cost trend rate

 

 

4.36

%

 

 

4.36

%

 

 

4.50

%

 

 

4.20

%

 

 

4.20

%

 

 

4.20

%

Year ultimate healthcare cost trend rate will be realized

 

 

2037

 

 

 

2037

 

 

 

2029

 

 

 

2030

 

 

 

2030

 

 

 

2030

 

 

Increasing or Decreasing Current Healthcare Cost Trend Rates by One Percentage would affect Accumulated Postretirement Benefit Obligation and Net Postretirement Expense

We utilize a sensitivity analysis to measure the potential impact of changes in our healthcare cost trend rate on our Consolidated Financial Statements. Increasing or decreasing current healthcare cost trend rates by 1% would affect our accumulated postretirement benefit obligation and net postretirement expense by the following amounts for the years ended May 31, 2018 and 2017:

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

(In thousands)

 

2018

 

2017

 

 

2018

 

2017

 

1% Increase in Healthcare Cost Trend Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated benefit obligation

 

$

185

 

$

229

 

 

$

6,978

 

$

6,410

 

Postretirement cost

 

 

7

 

 

9

 

 

 

673

 

 

547

 

1% Decrease in Healthcare Cost Trend Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated benefit obligation

 

$

(163

)

$

(201

)

 

$

(5,391

)

$

(5,016

)

Postretirement cost

 

 

(6

)

 

(8

)

 

 

(493

)

 

(406

)