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 |
) |
|