NOTE O — POSTRETIREMENT BENEFITS We sponsor several unfunded-healthcare-benefit plans for certain of our retired associates, as well as postretirement life insurance for certain former associates. Eligibility for these benefits is based upon various requirements. The following table illustrates the effect on operations of these plans for the three years ended May 31:
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U.S. Plans |
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Non-U.S. Plans |
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(In thousands) |
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2026 |
|
2025 |
|
2024 |
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|
2026 |
|
2025 |
|
2024 |
|
Service cost |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
|
$ |
936 |
|
$ |
1,672 |
|
$ |
2,259 |
|
Interest cost |
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|
49 |
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|
83 |
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|
87 |
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|
1,089 |
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|
1,251 |
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|
1,550 |
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Amortization of: |
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Net actuarial losses (gains) |
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34 |
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(25 |
) |
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(15 |
) |
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(1,024 |
) |
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(551 |
) |
|
(49 |
) |
Curtailment/settlement losses |
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617 |
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- |
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- |
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- |
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- |
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- |
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Net Postretirement Benefit Cost |
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$ |
700 |
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$ |
58 |
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$ |
72 |
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$ |
1,001 |
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$ |
2,372 |
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$ |
3,760 |
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The changes in benefit obligations of the plans at May 31, 2026 and 2025 were as follows:
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U.S. Plans |
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Non-U.S. Plans |
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(In thousands) |
|
2026 |
|
2025 |
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|
2026 |
|
2025 |
|
Accumulated postretirement benefit obligation at beginning of year |
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$ |
1,663 |
|
$ |
1,621 |
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$ |
24,557 |
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$ |
26,058 |
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Service cost |
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|
- |
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|
- |
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|
936 |
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|
1,672 |
|
Interest cost |
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|
49 |
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|
83 |
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|
1,089 |
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|
1,251 |
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Benefit payments |
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(746 |
) |
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(135 |
) |
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|
(648 |
) |
|
(568 |
) |
Actuarial (gains) losses |
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|
(22 |
) |
|
94 |
|
|
|
(701 |
) |
|
(3,635 |
) |
Currency exchange rate changes |
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|
- |
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- |
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|
|
(108 |
) |
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(221 |
) |
Accumulated and accrued postretirement benefit obligation at end of year |
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$ |
944 |
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$ |
1,663 |
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$ |
25,125 |
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$ |
24,557 |
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In determining the postretirement benefit amounts outlined above, measurement dates as of May 31 for each period were applied. Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2026 and 2025 are as follows:
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U.S. Plans |
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Non-U.S. Plans |
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(In thousands) |
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2026 |
|
2025 |
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|
2026 |
|
2025 |
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Current liabilities |
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$ |
(137 |
) |
$ |
(733 |
) |
|
$ |
(1,050 |
) |
$ |
(949 |
) |
Noncurrent liabilities |
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|
(807 |
) |
|
(930 |
) |
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|
(24,075 |
) |
|
(23,608 |
) |
Net Amount Recognized |
|
$ |
(944 |
) |
$ |
(1,663 |
) |
|
$ |
(25,125 |
) |
$ |
(24,557 |
) |
The following table presents the pretax net actuarial gain recognized in accumulated other comprehensive income (loss) not affecting retained earnings by fiscal year:
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U.S. Plans |
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Non-U.S. Plans |
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(In thousands) |
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2026 |
|
2025 |
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|
2026 |
|
2025 |
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Net actuarial gain |
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$ |
724 |
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$ |
51 |
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$ |
14,419 |
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$ |
14,803 |
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The following table includes the changes recognized in other comprehensive loss (income) by fiscal year:
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U.S. Plans |
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Non-U.S. Plans |
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(In thousands) |
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2026 |
|
2025 |
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|
2026 |
|
2025 |
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Changes in plan assets and benefit obligations recognized in other comprehensive loss (income): |
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Net (gain) loss arising during the year |
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$ |
(22 |
) |
$ |
94 |
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$ |
(701 |
) |
$ |
(3,635 |
) |
Effect of exchange rates on amounts included in AOCI |
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- |
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- |
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|
61 |
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|
66 |
|
Amounts recognized as a component of net periodic benefit cost: |
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Amortization or settlement recognition of net (loss) gain |
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|
(651 |
) |
|
25 |
|
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|
1,024 |
|
|
551 |
|
Total recognized in other comprehensive (income) loss |
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$ |
(673 |
) |
$ |
119 |
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$ |
384 |
|
$ |
(3,018 |
) |
The following weighted-average assumptions were used to determine our year-end benefit obligations and net periodic postretirement benefit costs under the plans by fiscal year:
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U.S. Plans |
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Non-U.S. Plans |
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Year-End Benefit Obligations |
2026 |
|
2025 |
|
2026 |
|
2025 |
|
Discount rate |
|
5.18 |
% |
|
5.17 |
% |
|
4.98 |
% |
|
4.88 |
% |
Current healthcare cost trend rate |
|
7.60 |
% |
|
8.30 |
% |
|
5.07 |
% |
|
5.13 |
% |
Ultimate healthcare cost trend rate |
|
4.00 |
% |
|
4.00 |
% |
|
3.70 |
% |
|
3.70 |
% |
Year ultimate healthcare cost trend rate will be realized |
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2048 |
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|
2048 |
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|
2040 |
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|
2040 |
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U.S. Plans |
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Non-U.S. Plans |
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Net Periodic Postretirement Cost |
2026 |
|
2025 |
|
2024 |
|
2026 |
|
2025 |
|
2024 |
|
Discount rate |
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5.17 |
% |
|
5.50 |
% |
|
5.20 |
% |
|
4.88 |
% |
|
5.03 |
% |
|
5.10 |
% |
Current healthcare cost trend rate |
|
8.30 |
% |
|
8.90 |
% |
|
6.00 |
% |
|
5.13 |
% |
|
5.21 |
% |
|
5.53 |
% |
Ultimate healthcare cost trend rate |
|
4.00 |
% |
|
4.04 |
% |
|
4.03 |
% |
|
3.70 |
% |
|
3.70 |
% |
|
3.70 |
% |
Year ultimate healthcare cost trend rate will be realized |
|
2048 |
|
|
2049 |
|
|
2045 |
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|
2040 |
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|
2040 |
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|
2040 |
|
We expect to pay approximately $1.2 million to $1.4 million in estimated postretirement benefits in each of the next five years. In the five years thereafter (2032-2036), we expect to pay a cumulative total of $8.1 million.
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