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The following table presents the pre-tax net loss, prior service cost/(credits) and transition assets/(obligations) recognized in
accumulated other comprehensive income (loss) not affecting retained earnings:
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. The Plan Investment Committee oversees the
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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.
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 United States. 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 $9.5 million, $8.6 million
and $8.2 million for the years ending May 31, 2007, 2006 and
2005, respectively.
We expect to pay the following estimated pension benefit
payments in the next five years (in millions): $12.6 in 2008;
$14.5 in 2009; $15.0 in 2010; $16.6 in 2011; $18.9 million in
2012. In the five years thereafter (2013-2017) we expect to pay
$118.5 million.
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