Notes to Consolidated Financial Statements
May 31, 2010, 2009, 2008
NOTE M — POSTRETIREMENT BENEFITS
We sponsor several, unfunded-health-care-benefit plans for certain of our retired employees as well as post-retirement life insurance
for certain key employees. 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, 2011:
The changes in benefit obligations of the plans at May 31, 2011 and 2010 were as follows:
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, 2011 and 2010 are as follows:
The following table presents the pretax net actuarial gain (loss) and prior service credits recognized in accumulated other
comprehensive income (loss) not affecting retained earnings:
The following table includes the changes recognized in other comprehensive income:
The following weighted-average assumptions were used to determine our year-end benefit obligations and net periodic
postretirement benefit costs under the plans:
Increasing or decreasing current healthcare cost trend rates by 1% would affect our accumulated postretirement benefit obligation
and net postretirement expense by the following amounts for the years ended May 31, 2011 and 2010:
We expect to pay approximately $1.2 million in estimated
postretirement benefits in each of the next five years. In the five
years thereafter (2017-2021) we expect to pay a cumulative total
of $7.8 million.
The Medicare Prescription Drug, Improvement and
Modernization Act of 2003 (the “Act”), was signed into law
on December 8, 2003. The Act provides for prescription drug
benefits under Medicare Part D and contains a subsidy to plan
sponsors who provide “actuarially equivalent” prescription drug
plans. Our actuary has determined that the prescription drug benefit provided by our postretirement plan is considered to be
actuarially equivalent to the benefits provided under the Act for
all years since inception.
We have included the impact of our portion of the Medicare
Prescription Drug, Improvement and Modernization Act of 2003
subsidy in the determination of accumulated postretirement
benefit obligation for the U.S. nonpension postretirement
benefit plan for the periods ended May 31, 2010. For the
fiscal years ended May 31, 2011 and 2010, we received
reimbursements from Medicare related to this law amounting
to approximately $100,000 each year.
