Employee Benefit Plans (Tables)

12 Months Ended

May 31, 2018



Obligations and Funded Status at May 31:
(in thousands)	2018			2017

Change in benefit obligation:
Projected benefit obligation, beginning of year	$	87,387		$	—
Projected benefit obligation acquired in G&K acquisition	—			84,553
Interest cost	2,818			562
Actuarial (gain) loss	(940		)	2,750
Benefits paid	(2,924		)	(478		)
Projected benefit obligation, end of year	$	86,341		$	87,387

Change in plan assets:
Fair value of plan assets, beginning of year	$	59,396		$	—
Plan assets acquired in G&K acquisition	—			57,747
Actual return on plan assets	2,309			2,127
Benefits paid	(2,924		)	(478		)
Fair value of plan assets, end of year	$	58,781		$	59,396

Funded status-net amount recognized	$	(27,560	)	$	(27,991	)

Components of Net Periodic Benefit Cost



Components of Net Periodic Benefit Cost
(in thousands)	2018			2017

Interest cost	$	2,818		$	562
Expected return on assets	(2,832		)	(590		)
Amortization of net loss	—			—
Net periodic benefit cost	$	(14	)	$	(28	)

Weighted Average Assumptions Used to Determine Benefit Obligations

The following weighted average assumptions were used to determine benefit obligations for the Pension Plan at May 31, 2018 and 2017:

The following weighted average assumptions were used to determine net periodic benefit cost for the Pension Plan for the fiscal year ended May 31, 2018 and 2017:



	2018		2017
Discount rate	3.79	%	4.00	%
Expected return on plan assets	4.90	%	5.40	%
Rate of compensation increase	N/A		N/A

Asset allocations in the pension plan

The asset allocations in the Pension Plan at May 31, 2018 and 2017 are as follows:



	2018		2018		2017
	Target Asset Allocation		Actual Asset Allocation		Actual Asset Allocation
International equity	8.0	%	7.9	%	8.3	%
Large cap equity	26.0	%	26.5	%	26.3	%
Small cap equity	5.0	%	5.6	%	5.3	%
Absolute return strategy funds	16.0	%	15.8	%	16.2	%
Fixed income	45.0	%	44.2	%	43.6	%
Long/short equity fund	—	%	—	%	0.3	%
Total	100	%	100	%	100	%

Pension plan investments using the fair value hierarchy

Information on the Pension Plan investments as of May 31, 2018 and 2017, using the fair value hierarchy discussed in Note 1 entitled Significant Accounting Polices, is as follows:



	May 31, 2018
(in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	487	$	—	$	—	$	487
U.S. government securities	2,426		3,458		—		5,884
Corporate debt	—		19,826		—		19,826
Mutual funds:
U.S. securities	27,901		—		—		27,901
International securities	4,683		—		—		4,683
Total	$	35,497	$	23,284	$	—	$	58,781



	May 31, 2017
(in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	629	$	—	$	—	$	629
U.S. government securities	1,874		3,401		—		5,275
Corporate debt	—		20,210		—		20,210
Mutual funds:
U.S. securities	28,353		—		—		28,353
International securities	4,929		—		—		4,929
Total	$	35,785	$	23,611	$	—	$	59,396

Discount rate

Rate of compensation increase