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Pension Plans | 12 Months Ended
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May 31, 2016
Compensation And Retirement Disclosure [Abstract] |
Pension Plans | NOTE L — PENSION PLANS We sponsor several pension plans for our employees, including our principal plan (the “Retirement Plan”), which is a non-contributory defined benefit pension plan covering substantially all domestic non-union employees. Pension benefits are provided for certain domestic union employees through separate plans. Employees of our foreign subsidiaries receive pension coverage, to the extent deemed appropriate, through plans that are governed by local statutory requirements. The Retirement Plan provides benefits that are based upon years of service and average compensation with accrued benefits vesting after five years. Benefits for union employees are generally based upon years of service, or a combination of years of service and average compensation. Our pension funding policy is to contribute an amount on an annual basis that can be deducted for federal income tax purposes, using a different actuarial cost method and different assumptions from those used for financial reporting. For the fiscal year ending May 31, 2017, we expect to contribute approximately $54.1 million to the retirement plans in the U.S. and approximately $6.0 million to our foreign plans. Historically, we estimated the service and interest cost components of net periodic pension and postretirement benefit cost by applying a single weighted-average discount rate, derived from the yield curve used to measure the benefit obligation at the beginning of the period. During the first quarter of fiscal 2016, we elected to change our approach in estimating service and interest cost by applying the split discount rate approach. Under the split discount rate approach, we estimate service and interest cost by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. We made this change in order to more precisely measure our service and interest costs, and the split discount rate approach achieves this by improving the correlation between projected benefit cash flows and the corresponding spot yield curve rates. This change will not affect the measurement of our total benefit obligation at our annual measurement date, as the change in service and interest cost is completely offset by deferred actuarial (gains)/losses that will arise at the next annual measurement date. As this change is treated as a change in estimate, the impact was reflected in the first quarter of fiscal 2016 and prospectively, and historical measurements of service and interest cost were not affected. This change in estimate reduced our fiscal 2016 annual net periodic benefit expense by approximately $5.4 million for our U.S. Plans and by approximately $1.0 million for our non-U.S. plans versus the amounts that would have been recorded had we not elected to change our approach. Accordingly, for fiscal 2016, total service cost and interest cost for all plans was $36.9 million and $23.1 million, respectively, a reduction of $0.8 million and $5.6 million, respectively, as a result of implementing the new approach. This resulted in an increase in income from continuing operations and net income for fiscal 2016 of approximately $6.4 million and $4.7 million, respectively, and an increase in basic and diluted earnings per share of $0.04 and $0.03, respectively, versus what would have been recorded had we not elected to change our approach. Net periodic pension cost consisted of the following for the year ended May 31:
|  | U.S. Plans |  |  | Non-U.S. Plans |
(In thousands) |  | 2016 |  | 2015 |  | 2014 |  |  | 2016 |  | 2015 |  | 2014 |
Service cost |  | $ | 32,808 |  | $ | 30,359 |  | $ | 27,056 |  |  | $ | 4,061 |  | $ | 4,611 |  | $ | 4,375 |
Interest cost |  |  | 17,995 |  |  | 20,119 |  |  | 18,039 |  |  |  | 5,070 |  |  | 7,184 |  |  | 7,382 |
Expected return on plan assets |  |  | (25,749 | ) |  | (24,308 | ) |  | (20,761 | ) |  |  | (7,571 | ) |  | (8,611 | ) |  | (8,411 | )
Amortization of: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Prior service cost |  |  | 234 |  |  | 294 |  |  | 334 |  |  |  | (2 | ) |  | 39 |  |  | 19 |
Net actuarial losses recognized |  |  | 16,759 |  |  | 13,890 |  |  | 13,222 |  |  |  | 1,739 |  |  | 2,004 |  |  | 2,448 |
Curtailment/settlement (gains) losses |  |  | 87 |  |  |  |  |  |  |  |  |  | 57 |  |  |  |  |  | 44 |
Net Pension Cost |  | $ | 42,134 |  | $ | 40,354 |  | $ | 37,890 |  |  | $ | 3,354 |  | $ | 5,227 |  | $ | 5,857 |
The changes in benefit obligations and plan assets, as well as the funded status of our pension plans at May 31, 2016 and 2015, were as follows:
|  | U.S. Plans |  |  | Non-U.S. Plans |
(In thousands) |  | 2016 |  | 2015 |  |  | 2016 |  | 2015 |
Benefit obligation at beginning of year |  | $ | 537,465 |  | $ | 476,590 |  |  | $ | 191,386 |  | $ | 202,168 |
Service cost |  |  | 32,808 |  |  | 30,359 |  |  |  | 4,061 |  |  | 4,611 |
Interest cost |  |  | 17,995 |  |  | 20,119 |  |  |  | 5,070 |  |  | 7,184 |
Benefits paid |  |  | (26,932 | ) |  | (24,147 | ) |  |  | (7,078 | ) |  | (6,066 | )
Participant contributions |  |  |  |  |  |  |  |  |  | 830 |  |  | 773 |
Plan amendments |  |  |  |  |  |  |  |  |  | (349 | ) |  |  |
Plan settlements/curtailments |  |  | (272 | ) |  |  |  |  |  | (630 | ) |  |  |
Actuarial (gains)/losses |  |  | 27,982 |  |  | 28,166 |  |  |  | 1,778 |  |  | 7,738 |
Acquisitions and transfers |  |  |  |  |  | 6,378 |  |  |  |  |  |  | 781 |
Premiums paid |  |  |  |  |  |  |  |  |  | (121 | ) |  | (128 | )
Currency exchange rate changes |  |  |  |  |  |  |  |  |  | (7,883 | ) |  | (25,675 | )
Benefit Obligation at End of Year |  | $ | 589,046 |  | $ | 537,465 |  |  | $ | 187,064 |  | $ | 191,386 |
Fair value of plan assets at beginning of year |  | $ | 327,427 |  | $ | 282,113 |  |  | $ | 176,437 |  | $ | 177,079 |
Actual return on plan assets |  |  | (21,742 | ) |  | 11,076 |  |  |  | 1,619 |  |  | 21,867 |
Employer contributions |  |  | 35,735 |  |  | 53,327 |  |  |  | 6,042 |  |  | 5,601 |
Participant contributions |  |  |  |  |  |  |  |  |  | 830 |  |  | 773 |
Benefits paid |  |  | (26,932 | ) |  | (24,147 | ) |  |  | (7,078 | ) |  | (6,066 | )
Premiums paid |  |  |  |  |  |  |  |  |  | (121 | ) |  | (128 | )
Plan settlements/curtailments |  |  | (272 | ) |  |  |  |  |  | (595 | ) |  |  |
Acquisitions and transfers |  |  |  |  |  | 5,058 |  |  |  |  |  |  |  |
Currency exchange rate changes |  |  |  |  |  |  |  |  |  | (7,670 | ) |  | (22,689 | )
Fair Value of Plan Assets at End of Year |  | $ | 314,216 |  | $ | 327,427 |  |  | $ | 169,464 |  | $ | 176,437 |
(Deficit) of plan assets versus benefit obligations at end of year |  | $ | (274,830 | ) | $ | (210,038 | ) |  | $ | (17,600 | ) | $ | (14,949 | )
Net Amount Recognized |  | $ | (274,830 | ) | $ | (210,038 | ) |  | $ | (17,600 | ) | $ | (14,949 | )
Accumulated Benefit Obligation |  | $ | 483,944 |  | $ | 441,306 |  |  | $ | 175,394 |  | $ | 179,998 |
The fair value of the assets held by our pension plans has decreased at May 31, 2016 since our previous measurement date at May 31, 2015, due primarily to losses in the stock market. Plan liabilities have increased due to a decrease in interest rates. As such, we have increased our recorded liability for the net underfunded status of our pension plans. Due to lower discount rates and asset values, we expect pension expense in fiscal 2017 to be above our fiscal 2016 expense level. Any future declines in the value of our pension plan assets or increases in our plan liabilities could require us to further increase our recorded liability for the net underfunded status of our pension plans and could also require accelerated and higher cash contributions to our pension plans. Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2016 and 2015 are as follows:
|  | U.S. Plans |  |  | Non-U.S. Plans |
(In thousands) |  | 2016 |  | 2015 |  |  | 2016 |  | 2015 |
Noncurrent assets |  | $ | - |  | $ | 5 |  |  | $ | 4,297 |  | $ | 1,280 |
Current liabilities |  |  | (15 | ) |  | (15 | ) |  |  | (468 | ) |  | (402 | )
Noncurrent liabilities |  |  | (274,815 | ) |  | (210,028 | ) |  |  | (21,429 | ) |  | (15,827 | )
Net Amount Recognized |  | $ | (274,830 | ) | $ | (210,038 | ) |  | $ | (17,600 | ) | $ | (14,949 | )
The following table summarizes the relationship between our plans' benefit obligations and assets:
|  | U.S. Plans |
|  | 2016 |  |  | 2015 |
(In thousands) |  | Benefit Obligation |  | Plan Assets |  |  | Benefit Obligation |  | Plan Assets |
Plans with projected benefit obligations in excess of plan assets |  | $ | 589,046 |  | $ | 314,216 |  |  | $ | 536,365 |  | $ | 326,323 |
Plans with accumulated benefit obligations in excess of plan assets |  |  | 483,944 |  |  | 314,216 |  |  |  | 440,206 |  |  | 326,323 |
Plans with assets in excess of projected benefit obligations |  |  | - |  |  | - |  |  |  | 1,100 |  |  | 1,104 |
Plans with assets in excess of accumulated benefit obligations |  |  | - |  |  | - |  |  |  | 1,100 |  |  | 1,104 |
|  | Non-U.S. Plans |
|  | 2016 |  |  | 2015 |
(In thousands) |  | Benefit Obligation |  | Plan Assets |  |  | Benefit Obligation |  | Plan Assets |
Plans with projected benefit obligations in excess of plan assets |  | $ | 141,627 |  | $ | 119,730 |  |  | $ | 141,149 |  | $ | 124,920 |
Plans with accumulated benefit obligations in excess of plan assets |  |  | 46,464 |  |  | 31,868 |  |  |  | 47,242 |  |  | 33,083 |
Plans with assets in excess of projected benefit obligations |  |  | 45,437 |  |  | 49,734 |  |  |  | 50,237 |  |  | 51,517 |
Plans with assets in excess of accumulated benefit obligations |  |  | 128,930 |  |  | 137,596 |  |  |  | 132,756 |  |  | 143,354 |
The following table presents the pretax net actuarial loss and prior service (costs) recognized in accumulated other comprehensive income (loss) not affecting retained earnings:
|  | U.S. Plans |  |  | Non-U.S. Plans |
(In thousands) |  | 2016 |  | 2015 |  |  | 2016 |  | 2015 |
Net actuarial loss |  | $ | (271,456 | ) | $ | (212,828 | ) |  | $ | (43,272 | ) | $ | (39,307 | )
Prior service (costs) |  |  | (469 | ) |  | (703 | ) |  |  | 9 |  |  | (357 | )
Total recognized in accumulated other comprehensive |  |  |  |  |  |  |  |  |  |  |  |  |  |
income not affecting retained earnings |  | $ | (271,925 | ) | $ | (213,531 | ) |  | $ | (43,263 | ) | $ | (39,664 | )
The following table includes the changes recognized in other comprehensive income:
|  |  |  | U.S. Plans |  |  | Non-U.S. Plans |
(In thousands) |  | 2016 |  | 2015 |  |  | 2016 |  | 2015 |
Changes in plan assets and benefit obligations recognized in other comprehensive income: |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Prior service cost |  | $ | - |  | $ | - |  |  | $ | (349 | ) | $ | - |
|  | Net loss (gain) arising during the year |  |  | 75,474 |  |  | 41,398 |  |  |  | 7,731 |  |  | (5,518 | )
|  | Effect of exchange rates on amounts included in AOCI |  |  |  |  |  |  |  |  |  | (1,953 | ) |  | (5,771 | )
Amounts recognized as a component of net periodic benefit cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Amortization or curtailment recognition of prior service (cost) |  |  | (234 | ) |  | (294 | ) |  |  | (7 | ) |  | (39 | )
|  | Amortization or settlement recognition of net (loss) |  |  | (16,846 | ) |  | (13,890 | ) |  |  | (1,823 | ) |  | (2,004 | )
|  | Total recognized in other comprehensive loss (income) |  | $ | 58,394 |  | $ | 27,214 |  |  | $ | 3,599 |  | $ | (13,332 | )
The following table presents the amounts in accumulated other comprehensive income (loss) as of May 31, 2016 that have not yet been recognized in net periodic pension cost, but will be recognized in our Consolidated Statements of Income during the fiscal year ending May 31, 2017:
(In thousands) |  | U.S. Plans |  |  | Non-U.S. Plans |
Net actuarial loss |  | $ | (20,804 | ) |  | $ | (2,292 | )
Prior service (cost) credit |  | $ | (217 | ) |  | $ | 2 |
In measuring the projected benefit obligation and net periodic pension cost for our plans, we utilize actuarial valuations. These valuations include specific information pertaining to individual plan participants, such as salary, age and years of service, along with certain assumptions. The most significant assumptions applied include discount rates, expected return on plan assets and rate of compensation increases. We evaluate these assumptions, at a minimum, on an annual basis, and make required changes, as applicable. In developing our expected long-term rate of return on pension plan assets, we consider the current and expected target asset allocations of the pension portfolio, as well as historical returns and future expectations for returns on various categories of plan assets. Expected return on assets is determined by using the weighted-average return on asset classes based on expected return for the target asset allocations of the principal asset categories held by each plan. In determining expected return, we consider both historical performance and an estimate of future long-term rates of return. Actual experience is used to develop the assumption for compensation increases. The following weighted-average assumptions were used to determine our year-end benefit obligations and net periodic pension cost under the plans:
|  | U.S. Plans |  |  | Non-U.S. Plans |
Year-End Benefit Obligations |  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
Discount rate |  |  | 3.85 | % |  |  | 4.25 | % |  |  | 3.13 | % |  |  | 3.26 | %
Rate of compensation increase |  |  | 3.80 | % |  |  | 3.80 | % |  |  | 2.81 | % |  |  | 2.81 | %
|  | U.S. Plans |  |  | Non-U.S. Plans |
Net Periodic Pension Cost |  | 2016 |  |  | 2015 |  |  | 2014 |  |  | 2016 |  |  | 2015 |  |  | 2014 |
Discount rate |  |  | 4.25 | % |  |  | 4.30 | % |  |  | 4.45 | % |  |  | 3.26 | % |  |  | 3.82 | % |  |  | 3.95 | %
Expected return on plan assets |  |  | 7.90 | % |  |  | 8.25 | % |  |  | 8.50 | % |  |  | 4.49 | % |  |  | 5.18 | % |  |  | 5.37 | %
Rate of compensation increase |  |  | 3.80 | % |  |  | 3.81 | % |  |  | 3.14 | % |  |  | 2.81 | % |  |  | 3.30 | % |  |  | 3.32 | %
The following tables illustrate the weighted-average actual and target allocation of plan assets:
|  | U.S. Plans |
|  | Target Allocation |  |  | Actual Asset Allocation |
(Dollars in millions) |  | as of May 31, 2016 |  |  | 2016 |  |  | 2015 |
Equity securities |  |  | 55 | % |  | $ | 234.7 |  |  | $ | 223.2 |
Fixed income securities |  |  | 25 | % |  |  | 72.1 |  |  |  | 95.9 |
Cash |  |  |  |  |  |  | 7.1 |  |  |  | 8.0 |
Other |  |  | 20 | % |  |  | 0.3 |  |  |  | 0.3 |
Total assets |  |  | 100 | % |  | $ | 314.2 |  |  | $ | 327.4 |
|  | Non-U.S. Plans |
|  | Target Allocation |  |  | Actual Asset Allocation |
(Dollars in millions) |  | as of May 31, 2016 |  |  | 2016 |  |  | 2015 |
Equity securities |  |  | 43 | % |  | $ | 71.7 |  |  | $ | 75.7 |
Fixed income securities |  |  | 38 | % |  |  | 67.4 |  |  |  | 68.9 |
Cash |  |  |  |  |  |  |  |  |  |  | 0.4 |
Property and other |  |  | 19 | % |  |  | 30.4 |  |  |  | 31.4 |
Total assets |  |  | 100 | % |  | $ | 169.5 |  |  | $ | 176.4 |
The following tables present our pension plan assets as categorized using the fair value hierarchy at May 31, 2016 and 2015:
U.S. Plans |
(In thousands) |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | Fair Value at May 31, 2016 |
U.S. Treasury and other government |  | $ | - |  |  | $ | 9,533 |  |  | $ | - |  |  | $ | 9,533 |
State and municipal bonds |  |  |  |  |  |  | 532 |  |  |  |  |  |  |  | 532 |
Foreign bonds |  |  |  |  |  |  | 1,095 |  |  |  |  |  |  |  | 1,095 |
Mortgage-backed securities |  |  |  |  |  |  | 12,289 |  |  |  |  |  |  |  | 12,289 |
Corporate bonds |  |  |  |  |  |  | 21,035 |  |  |  |  |  |  |  | 21,035 |
Stocks - large cap |  |  | 28,686 |  |  |  |  |  |  |  |  |  |  |  | 28,686 |
Stocks - mid cap |  |  | 12,350 |  |  |  |  |  |  |  |  |  |  |  | 12,350 |
Stocks - small cap |  |  | 24,361 |  |  |  |  |  |  |  |  |  |  |  | 24,361 |
Stocks - international |  |  | 3,538 |  |  |  |  |  |  |  |  |  |  |  | 3,538 |
Mutual funds - equity |  |  |  |  |  |  | 165,784 |  |  |  |  |  |  |  | 165,784 |
Mutual funds - fixed |  |  |  |  |  |  | 27,611 |  |  |  |  |  |  |  | 27,611 |
Cash and cash equivalents |  |  | 7,108 |  |  |  |  |  |  |  |  |  |  |  | 7,108 |
Limited partnerships |  |  |  |  |  |  |  |  |  |  | 294 |  |  |  | 294 |
Total |  | $ | 76,043 |  |  | $ | 237,879 |  |  | $ | 294 |  |  | $ | 314,216 |
Non-U.S. Plans |
(In thousands) |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | Fair Value at May 31, 2016 |
Pooled equities |  | $ | - |  |  | $ | 70,452 |  |  | $ | - |  |  | $ | 70,452 |
Pooled fixed income |  |  |  |  |  |  | 67,144 |  |  |  |  |  |  |  | 67,144 |
Foreign bonds |  |  |  |  |  |  | 231 |  |  |  |  |  |  |  | 231 |
Insurance contracts |  |  |  |  |  |  |  |  |  |  | 30,379 |  |  |  | 30,379 |
Mutual funds |  |  |  |  |  |  | 1,214 |  |  |  |  |  |  |  | 1,214 |
Cash and cash equivalents |  |  | 44 |  |  |  |  |  |  |  |  |  |  |  | 44 |
Total |  | $ | 44 |  |  | $ | 139,041 |  |  | $ | 30,379 |  |  | $ | 169,464 |
U.S. Plans |
(In thousands) |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | Fair Value at May 31, 2015 |
U.S. Treasury and other government |  | $ | - |  |  | $ | 9,245 |  |  | $ | - |  |  | $ | 9,245 |
State and municipal bonds |  |  |  |  |  |  | 461 |  |  |  |  |  |  |  | 461 |
Foreign bonds |  |  |  |  |  |  | 2,608 |  |  |  |  |  |  |  | 2,608 |
Mortgage-backed securities |  |  |  |  |  |  | 11,536 |  |  |  |  |  |  |  | 11,536 |
Corporate bonds |  |  |  |  |  |  | 17,894 |  |  |  |  |  |  |  | 17,894 |
Stocks - large cap |  |  | 36,554 |  |  |  |  |  |  |  |  |  |  |  | 36,554 |
Stocks - mid cap |  |  | 14,575 |  |  |  |  |  |  |  |  |  |  |  | 14,575 |
Stocks - small cap |  |  | 20,175 |  |  |  |  |  |  |  |  |  |  |  | 20,175 |
Stocks - international |  |  | 3,756 |  |  |  |  |  |  |  |  |  |  |  | 3,756 |
Mutual funds - equity |  |  |  |  |  |  | 148,207 |  |  |  |  |  |  |  | 148,207 |
Mutual funds - fixed |  |  |  |  |  |  | 54,112 |  |  |  |  |  |  |  | 54,112 |
Cash and cash equivalents |  |  | 8,019 |  |  |  |  |  |  |  |  |  |  |  | 8,019 |
Limited partnerships |  |  |  |  |  |  |  |  |  |  | 285 |  |  |  | 285 |
Total |  | $ | 83,079 |  |  | $ | 244,063 |  |  | $ | 285 |  |  | $ | 327,427 |
Non-U.S. Plans |
(In thousands) |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | Fair Value at May 31, 2015 |
Pooled equities |  | $ | - |  |  | $ | 74,159 |  |  | $ | - |  |  | $ | 74,159 |
Pooled fixed income |  |  |  |  |  |  | 68,773 |  |  |  |  |  |  |  | 68,773 |
Foreign bonds |  |  |  |  |  |  | 195 |  |  |  |  |  |  |  | 195 |
Insurance contracts |  |  |  |  |  |  |  |  |  |  | 31,384 |  |  |  | 31,384 |
Mutual funds |  |  |  |  |  |  | 1,502 |  |  |  |  |  |  |  | 1,502 |
Cash and cash equivalents |  |  | 424 |  |  |  |  |  |  |  |  |  |  |  | 424 |
Total |  | $ | 424 |  |  | $ | 144,629 |  |  | $ | 31,384 |  |  | $ | 176,437 |
The following table includes the activity that occurred during the years ended May 31, 2016 and 2015 for our Level 3 assets:
|  |  |  |  |  | Actual Return on Plan Assets For: |  |  |  |  |  |  |  |  |
|  | Balance at |  |  | Assets Still Held |  |  | Assets Sold |  |  | Purchases, Sales and |  |  | Balance at |
(In thousands) |  | Beginning of Period |  |  | at Reporting Date |  |  | During Year |  |  | Settlements, net (1) |  |  | End of Period |
Year ended May 31, 2016 |  | $ | 31,669 |  |  |  | 191 |  |  |  | 9 |  |  |  | (1,196 | ) |  | $ | 30,673 |
Year ended May 31, 2015 |  |  | 29,568 |  |  |  | 7,659 |  |  |  | 888 |  |  |  | (6,446 | ) |  |  | 31,669 |
(1) | Includes the impact of exchange rate changes during the year.
The primary objective for the investments of the Retirement Plan is to provide for long-term growth of capital without undue exposure to risk. This objective is accomplished by utilizing a strategy of equities, fixed income securities and cash equivalents in a mix that is conducive to participation in a rising market, while allowing for adequate protection in a falling market. Our Investment Committee oversees the investment allocation process, which includes the selection and evaluation of investment managers, the determination of investment objectives and risk guidelines, and the monitoring of actual investment performance. In order to manage investment risk properly, Plan policy prohibits short selling, securities lending, financial futures, options and other specialized investments except for certain alternative investments specifically approved by the Investment Committee. The Investment Committee reviews, on a quarterly basis, reports of actual Plan investment performance provided by independent third parties, in addition to its review of the Plan investment policy on an annual basis. The investment objectives are similar for our plans outside of the U.S., subject to local regulations. In general, investments for all plans are managed by private investment managers, reporting to our Investment Committee on a regular basis. The goals of the investment strategy for pension assets include: The total return of the funds shall, over an extended period of time, surpass an index composed of the Standard & Poor’s 500 Stock Index (equity), the Barclays Aggregate Bond Index (fixed income), and 30-day Treasury Bills (cash), weighted appropriately to match the asset allocation of the plans. The equity portion of the funds shall surpass the Standard & Poor’s 500 Stock Index over a full market cycle, while the fixed income portion shall surpass Barclays Aggregate Bond Index over a full market cycle. The purpose of the core fixed income fund is to increase return in the form of cash flow, provide a hedge against inflation and to reduce the volatility of the fund overall. Therefore, the primary objective of the core fixed income portion is to match the Barclays Aggregate Bond Index. The purpose of including opportunistic fixed income assets such as, but not limited to, global and high yield securities in the portfolio is to enhance the overall risk-return characteristics of the Fund. In addition to the defined benefit pension plans discussed above, we also sponsor employee savings plans under Section 401(k) of the Internal Revenue Code, which cover most of our employees in the U.S. We record expense for defined contribution plans for any employer matching contributions made in conjunction with services rendered by employees. The majority of our plans provide for matching contributions made in conjunction with services rendered by employees. Matching contributions are invested in the same manner that the participants invest their own contributions. Matching contributions charged to income were $16.3 million, $14.9 million and $13.6 million for the years ending May 31, 2016, 2015 and 2014, respectively. We expect to pay the following estimated pension benefit payments in the next five years (in millions): $48.0 in 2017, $50.0 in 2018, $53.2 in 2019, $57.1 in 2020, and $56.2 in 2021. In the five years thereafter (2022-2026) we expect to pay $302.0 million.

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- Definition Pension Plans Disclosure. + References No definition available. + Details
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- References No definition available. + Details
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