v3.26.3
Employee Retirement Plans
 3 Months Ended
Aug. 31, 2026
Retirement Benefits [Abstract]  
Employee Retirement Plans

Note 12 – Employee Retirement Plans

In connection with the acquisition of Kloeckner, the Company assumed sponsorship of various defined benefit pension plans covering certain current and former employees of Kloeckner, primarily located in the United States, Switzerland, Germany, Austria, and Mexico (the “Kloeckner Plans”).

The Kloeckner Plans were remeasured as of the Kloeckner Acquisition date. The Kloeckner Plans are accounted for in accordance with ASC Topic 715 Compensation—Retirement Benefits. The Company does not remeasure the Kloeckner Plans on an interim basis absent a triggering event, such as a plan amendment, curtailment, or settlement. During the first quarter of fiscal 2027, the Company did not identify triggering events that would have required the remeasurement of the Kloeckner Plans.

As of the Kloeckner Acquisition date, the Company assumed U.S. defined benefit pension plans with an overfunded status of $0.1 million and defined benefit pension and other postretirement benefit plans with an underfunded status of $10.3 million, and non-U.S. defined benefit pension plans with an overfunded status of $333.8 million and an underfunded status of $8.7 million.

The Stanzwerk AG pension plan, assumed in the Sitem Group acquisition, is a funded defined benefit pension plan in Switzerland covering eligible employees. The plan’s assets are managed by a collective trust. During the first quarter of fiscal 2027, the Company recognized a $1.2 million curtailment gain related to the acquired Stanzwerk AG pension plan. The curtailment resulted from a restructuring initiative that significantly reduced expected future service for certain plan participants. A portion of the curtailment gain will be recognized in future periods as affected employees terminate employment.

There have been no material changes to the Company's previously existing defined benefit pension and other postretirement benefit plans, including the Stanzwerk AG pension plan assumed in the Sitem Group acquisition, the Tempel Employees Pension Plan, and the pension obligation assumed in the Voestalpine Nagold acquisition, since May 31, 2026. See “Note 12 – Defined Benefit Pension Plans” in the Company's Annual Report on Form 10-K for the fiscal year ended May 31, 2026 for additional information.

Net Periodic Benefit Cost

Net periodic pension and other postretirement benefit cost (benefit) for the periods presented below were as follows:

 

 

 

Three Months Ended August 31, 2026

 

 

Three Months Ended August 31, 2025

 

 

 

Pension Benefits

 

 

 

 

 

Pension Benefits

 

 

 

 

(In millions)

 

U.S.

 

 

Non-U.S.

 

 

Other Benefits

 

 

U.S.

 

 

Non-U.S.

 

 

Other Benefits

 

Defined benefit plans components of expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

-

 

 

$

3.1

 

 

$

-

 

 

$

-

 

 

$

0.4

 

 

$

-

 

Interest cost

 

 

3.2

 

 

 

4.2

 

 

 

0.1

 

 

 

0.6

 

 

 

0.2

 

 

 

0.1

 

Expected return on plan assets

 

 

(3.1

)

 

 

(9.8

)

 

 

-

 

 

 

(0.6

)

 

 

(0.4

)

 

 

-

 

Net amortization and deferral costs

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Settlement gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Curtailment gain

 

 

-

 

 

 

(1.2

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net periodic benefit cost (income)

 

$

0.1

 

 

$

(3.7

)

 

$

0.1

 

 

$

-

 

 

$

0.2

 

 

$

0.1

 

 

The service cost component is included in cost of goods sold and selling, general and administrative expense. The non-service cost components – interest cost, expected return on plan assets, and amortization of actuarial gains and losses – are included in miscellaneous income (expense), net.

Contributions

The Company contributed $2.9 million to its defined benefit pension plans during the three months ended August 31, 2026 and expects to contribute approximately $8.8 million during the remainder of fiscal 2027.