Employee Retirement Plans |
12 Months Ended |
|---|---|
May 31, 2025 | |
| Retirement Benefits [Abstract] | |
| Employee Retirement Plans | Note L – Employee Retirement Plans
Defined Contribution Retirement Plans
We provide retirement benefits to employees mainly through defined contribution retirement plans. Eligible participants make pre-tax contributions based on elected percentages of eligible compensation, subject to annual addition and other limitations imposed by the Code and the various plans’ provisions. Company contributions consist of employer matching contributions, annual or monthly employer contributions and discretionary contributions, based on individual plan provisions. We incurred charges of $9,289, $9,678, and $9,644 in fiscal 2025, fiscal 2024 and fiscal 2023, respectively, for our defined contribution retirement plans.
Defined Benefit Pension Plan
Historically, we sponsored the Gerstenslager Plan, a frozen non-contributory pension plan which covered certain employees based on age and length of service. In August 2022, we purchased an annuity contract from a third-party insurance company to transfer approximately 31% of the total projected benefit obligation. In February 2024, we completed a similar transaction and annuitized the remaining projected benefit obligation. As a result of these transactions: 1) we incurred settlement charges of $4,774 and $8,010 during fiscal 2023 and fiscal 2024, respectively, primarily related to the reclassification of actuarial losses out of AOCI and into miscellaneous income (expense), net in our consolidated statements of earnings; 2) we were relieved of all responsibility for these pension obligations; and 3) the insurance company is now required to pay and administer benefits to the remaining beneficiaries of the Gerstenslager Plan. There was no remaining projected benefit obligation, plan assets or net unfunded liability at May 31, 2025 and May 31, 2024. There were no net periodic benefit costs associated with the Gerstenslager Plan in fiscal 2025. Except as noted above with regards to settlement charges in August 2022 and February 2024, net periodic benefit costs were not material during fiscal 2024 and fiscal 2023. |