XML 54 R36.htm IDEA: XBRL DOCUMENT v3.19.2
Pension and Other Postretirement Benefits (Tables)
 12 Months Ended
Apr. 30, 2019
Retirement Benefits [Abstract]  
Change in present value of pension and other postretirement benefit obligation
The following table shows how the present value of our projected benefit obligations changed during each of the last two years. 
 
Pension Benefits
 
Medical and Life
Insurance Benefits
 
2018
 
2019
 
2018
 
2019
Obligation at beginning of year
$
893

 
$
903

 
$
52

 
$
50

Service cost
24

 
24

 
1

 
1

Interest cost
29

 
34

 
1

 
2

Net actuarial loss (gain)
2

 
28

 
(1
)
 
—

Plan amendments
6

 
—

 
—

 
—

Retiree contributions
—

 
—

 
1

 
1

Benefits paid
(51
)
 
(81
)
 
(4
)
 
(4
)
Obligation at end of year
$
903

 
$
908

 
$
50

 
$
50
Expected benefit payments over the next 10 years
Expected benefit payments (net of retiree contributions) over the next 10 years are as follows:
 
Pension Benefits
 
Medical and Life
Insurance Benefits
2020
$
59

 
$
3

2021
58

 
3

2022
59

 
3

2023
60

 
3

2024
61

 
3

2025 – 2029
414

 
16
Fair value of pension plan assets by category, as well as the actual and target allocations
The following table shows the fair value of pension plan assets by category as of the end of the last two years. (Fair value levels are defined in Note 15.)
 
Level 1
 
Level 2
 
Level 3
 
Total
April 30, 2018
 
 
 
 
 
 
 
Equity securities
$
89

 
$
—

 
$
—

 
$
89

Cash and temporary investments
—

 
—

 
—

 
—

Limited partnership interest1
—

 
—

 
4

 
4

 
$
89

 
$
—

 
$
4

 
93

Investments measured at net asset value:
 
 
 
 
 
 
 
Commingled trust funds2:
 
 
 
 
 
 
 
Equity funds
 
 
 
 
 
 
226

Fixed income funds
 
 
 
 
 
 
362

Real estate funds
 
 
 
 
 
 
66

Short-term investments
 
 
 
 
 
 
5

Limited partnership interests3
 
 
 
 
 
 
27

Hedge funds4
 
 
 
 
 
 
1

 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
$
780

 
 
 
 
 
 
 
 
April 30, 2019
 
 
 
 
 
 
 
Equity securities
$
79

 
$
—

 
$
—

 
$
79

Cash and temporary investments
29

 
—

 
—

 
29

Limited partnership interest1
—

 
—

 
3

 
3

 
$
108

 
$
—

 
$
3

 
111

Investments measured at net asset value:
 
 
 
 
 
 
 
Commingled trust funds2:
 
 
 
 
 
 
 
Equity funds
 
 
 
 
 
 
157

Fixed income funds
 
 
 
 
 
 
370

Real estate funds
 
 
 
 
 
 
66

Short-term investments
 
 
 
 
 
 
23

Limited partnership interests3
 
 
 
 
 
 
27

Hedge funds4
 
 
 
 
 
 
—

 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
$
754

 
 
1 This limited partnership interest was initially valued at cost and has been adjusted to fair value as determined in good faith by management of the partnership using various factors, and does not meet the requirements for reporting at the net asset value (NAV). The valuation requires significant judgment due to the absence of quoted market prices, the inherent lack of liquidity, and the long-term nature of the investment. This limited partnership has a term expiring in 2020, although this period may be extended.
2 Commingled trust fund valuations are based on the NAV of the funds as determined by the fund administrators and reviewed by us. NAV represents the underlying assets owned by the fund, minus liabilities and divided by the number of shares or units outstanding. Generally, for commingled trust funds other than real estate, redemptions are permitted daily with no notice period. The real estate fund is redeemable quarterly with 110 days’ notice.
3 These limited partnership interests were initially valued at cost and have been adjusted using NAV per audited financial statements. Investments are generally not eligible for immediate redemption and have original terms averaging 10 to 13 years, although those periods may be extended.
4 Hedge fund valuations are based primarily on the NAV of the funds as determined by fund administrators and reviewed by us. During our review, we determine whether it is necessary to adjust a valuation for inherent liquidity and redemption issues that may exist within a fund’s underlying assets or fund unit values.
Change in fair value of Level 3 assets
The following table shows how the fair value of the Level 3 assets changed during each of the last two years. There were no transfers of assets between Level 3 and either of the other two levels.
 
Level 3
Balance as of April 30, 2017
$
4

Return on assets held at end of year
1

Sales and settlements
(1
)
Balance as of April 30, 2018
4

Sales and settlements
(1
)
Balance as of April 30, 2019
$
3
Change in fair value of pension plan Assets
The following table shows how the total fair value of all pension plan assets changed during each of the last two years. (We do not have assets set aside for postretirement medical or life insurance benefits.) 
 
Pension Benefits
 
Medical and Life
Insurance Benefits
 
2018
 
2019
 
2018
 
2019
Assets at beginning of year
$
623

 
$
780

 
$
—

 
$
—

Actual return on assets
53

 
34

 
—

 
—

Retiree contributions
—

 
—

 
1

 
1

Company contributions
155

 
21

 
3

 
3

Benefits paid
(51
)
 
(81
)
 
(4
)
 
(4
)
Assets at end of year
$
780

 
$
754

 
$
—

 
$
—
Funded status of plans
The following table shows the funded status of our plans.
 
Pension Benefits
 
Medical and Life
Insurance Benefits
April 30,
2018
 
2019
 
2018
 
2019
Assets
$
780

 
$
754

 
$
—

 
$
—

Obligations
(903
)
 
(908
)
 
(50
)
 
(50
)
Funded status
$
(123
)
 
$
(154
)
 
$
(50
)
 
$
(50
)
Funded status is recorded on the accompanying consolidated balance sheets
The funded status is recorded on the accompanying consolidated balance sheets as follows: 
 
 

Pension Benefits
 
Medical and Life
Insurance Benefits
April 30,
 
2018
 
2019
 
2018
 
2019
Other assets
 
$
26

 
$
2

 
$
—

 
$
—

Accounts payable and accrued expenses
 
(5
)
 
(6
)
 
(3
)
 
(3
)
Accrued postretirement benefits
 
(144
)
 
(150
)
 
(47
)
 
(47
)
Net liability
 
$
(123
)
 
$
(154
)
 
$
(50
)
 
$
(50
)
Accumulated other comprehensive income (loss), before tax:
 
 
 
 
 
 
 
 
Net actuarial gain (loss)
 
$
(291
)
 
$
(298
)
 
$
(10
)
 
$
(10
)
Prior service credit (cost)
 
(9
)
 
(8
)
 
13

 
10

 
 
$
(300
)
 
$
(306
)
 
$
3

 
$
—
Pension plans that have assets in excess of their accumulated benefit obligations with those whose assets are less than their obligations
The following table compares our pension plans whose assets exceed their accumulated benefit obligations with those whose obligations exceed their assets. (As noted above, we have no assets set aside for postretirement medical or life insurance benefits.) 
 
Plan Assets
 
Accumulated
Benefit Obligation
 
Projected
Benefit Obligation
April 30,
2018
 
2019
 
2018
 
2019
 
2018
 
2019
Plans with assets in excess of accumulated benefit obligation
$
780

 
$
754

 
$
669

 
$
668

 
$
754

 
$
752

Plans with accumulated benefit obligation in excess of assets
—

 
—

 
123

 
136

 
149

 
156

Total
$
780

 
$
754

 
$
792

 
$
804

 
$
903

 
$
908
Pension expense
The following table shows the components of the pension cost recognized during each of the last three years. The amount for each year includes amortization of the prior service cost/credit and net actuarial loss/gain included in accumulated other comprehensive loss as of the beginning of the year. 
 
Pension Benefits
 
2017
 
2018
 
2019
Service cost
$
26

 
$
24

 
$
24

Interest cost
35

 
29

 
34

Expected return on assets
(41
)
 
(41
)
 
(47
)
Amortization of:
 
 
 
 
 
Prior service cost (credit)
1

 
1

 
1

Net actuarial loss (gain)
25

 
21

 
19

Settlement charge
1

 
—

 
15

Net cost
$
47

 
$
34

 
$
46
Postretirement medical and life insurance benefit expense
The following table shows the components of the postretirement medical and life insurance benefits cost that we recognized during each of the last three years. 
 
Medical and Life Insurance Benefits
 
2017
 
2018
 
2019
Service cost
$
1

 
$
1

 
$
1

Interest cost
2

 
1

 
2

Amortization of:
 
 
 
 
 
Prior service cost (credit)
(3
)
 
(3
)
 
(3
)
Net actuarial loss (gain)
1

 
1

 
1

Net cost
$
1

 
$
—

 
$
1
Amounts recognized in other comprehensive income
The following table shows the pre-tax effect of these amounts on OCI during each of the last three years.
 
Pension Benefits
 
Medical and Life
Insurance Benefits
 
2017
 
2018
 
2019
 
2017
 
2018
 
2019
Prior service credit (cost)
$
(1
)
 
$
(6
)
 
$
—

 
$
4

 
$
—

 
$
—

Net actuarial gain (loss)
24

 
10

 
(41
)
 
—

 
1

 
—

Amortization reclassified to earnings:
 
 
 
 
 
 
 
 
 
 
 
Prior service cost (credit)
1

 
1

 
1

 
(3
)
 
(3
)
 
(3
)
Net actuarial loss (gain)
26

 
21

 
34

 
1

 
1

 
1

Net amount recognized in OCI
$
50

 
$
26

 
$
(6
)
 
$
2

 
$
(1
)
 
$
(2
)
Assumptions used in computing benefit plan obligations
The weighted-average assumptions used in computing benefit plan obligations as of the end of the last two years were as follows:
 

Pension Benefits
 
Medical and Life
Insurance Benefits
 
2018
 
2019
 
2018
 
2019
Discount rate
4.23
%
 
4.04
%
 
4.20
%
 
3.98
%
Rate of salary increase
4.00
%
 
4.00
%
 
n/a

 
n/a
Assumptions used in computing benefit plan expense
assumptions used in computing benefit plan cost during each of the last three years were as follows: 
 
Pension Benefits
 
Medical and Life
Insurance Benefits
 
2017
 
2018
 
2019
 
2017
 
2018
 
2019
Discount rate for service cost
4.02
%
 
4.29
%
 
4.30
%
 
3.96
%
 
4.39
%
 
4.34
%
Discount rate for interest cost
4.02
%
 
3.40
%
 
3.93
%
 
3.96
%
 
3.35
%
 
3.90
%
Rate of salary increase
4.00
%
 
4.00
%
 
4.00
%
 
n/a

 
n/a

 
n/a

Expected return on plan assets
7.00
%
 
6.75
%
 
6.50
%
 
n/a

 
n/a

 
n/a
Assumed health care cost trend rates
The assumed health care cost trend rates as of the end of the last two years were as follows: 
 
Medical and Life
Insurance Benefits
 
2018
 
2019
Health care cost trend rate assumed for next year
7.70
%
 
7.30
%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)
5.00
%
 
5.00
%
Year that the rate reaches the ultimate trend rate
2025

 
2025