SEC Document


The fair value of the assets held by our pension plans has increased at May 31, 2017 since our previous measurement date at May 31, 2016, due primarily to gains in the stock market and our plan contributions. Plan liabilities have increased slightly due to a decrease in interest rates. We have decreased our recorded liability for the net underfunded status of our pension plans. Additionally, the assumptions to value lump sums were updated to incorporate future expectations of the IRS mortality and interest rates. Due to slightly lower discount rates, increased

asset values and a change in estimate for lump sum valuations, we expect pension expense in fiscal 2018 to be below our fiscal 2017 expense level by approximately $8.0 million. Any future declines in the value of our pension plan assets or increases in our plan liabilities could require us to increase our recorded liability for the net underfunded status of our pension plans and could also require accelerated and higher cash contributions to our pension plans.

 

Amounts recognized in the Consolidated Balance Sheets for the years ended May 31, 2017 and 2016 are as follows:

 

           U.S. Plans           Non-U.S. Plans  
(In thousands)         2017     2016               2017     2016      

Noncurrent assets

      $     $ -            $ 998     $ 4,297     

Current liabilities

        (7     (15)             (512     (468)    

Noncurrent liabilities

        (154,460     (274,815)             (16,442     (21,429)    

Net Amount Recognized

      $   (154,467)     $   (274,830)           $     (15,956)     $     (17,600)    

The following table summarizes the relationship between our plans’ benefit obligations and assets:

 

    U.S. Plans  
         2017                 2016  
(In thousands)         Benefit
Obligation
     Plan Assets              Benefit
Obligation
     Plan Assets  

Plans with projected benefit obligations in excess of plan assets

     $ 591,948      $ 437,481           $ 589,046      $ 314,216    

Plans with accumulated benefit obligations in excess of plan assets

       489,918        437,481             483,944        314,216    

Plans with assets in excess of projected benefit obligations

       -          -             -          -    

Plans with assets in excess of accumulated benefit obligations

         -          -                   -          -    
   

 

Non-U.S. Plans

 
         2017                 2016  
(In thousands)         Benefit
Obligation
     Plan Assets              Benefit
Obligation
     Plan Assets  

Plans with projected benefit obligations in excess of plan assets

     $ 147,560      $ 130,605           $ 141,627      $ 119,730    

Plans with accumulated benefit obligations in excess of plan assets

       44,797        31,653             46,464        31,868    

Plans with assets in excess of projected benefit obligations

       48,324        49,323             45,437        49,734    

Plans with assets in excess of accumulated benefit obligations

         138,241        148,275                   128,930        137,596    

The following table presents the pretax net actuarial loss and prior service (costs) recognized in accumulated other comprehensive income (loss) not affecting retained earnings:

 

          U.S. Plans             Non-U.S. Plans  
(In thousands)        2017       2016                 2017       2016      

Net actuarial loss

     $ (205,942   $ (271,456)           $ (41,000   $ (43,272)    

Prior service (costs) credits

       (252     (469)             185       9     

Total recognized in accumulated other comprehensive income not affecting retained earnings

     $ (206,194   $ (271,925)           $ (40,815   $ (43,263)    

 

The following table includes the changes recognized in other comprehensive income:

 

    
          U.S. Plans             Non-U.S. Plans  
(In thousands)        2017       2016                 2017       2016      

Changes in plan assets and benefit obligations recognized in other comprehensive income:

              

Prior service cost

     $ -       $ -            $ (196   $ (349)    

Net loss (gain) arising during the year

       (43,353     75,474              2,515       7,731     

Effect of exchange rates on amounts included in AOCI

               (1,736     (1,953)    

Amounts recognized as a component of net periodic benefit cost:

              

Amortization or curtailment recognition of prior service (cost)

       (217     (234)             24       (7)    

Amortization or settlement recognition of net (loss)

       (22,160     (16,846)             (3,054     (1,823)     

Total recognized in other comprehensive loss (income)

     $ (65,730   $ 58,394            $ (2,447   $ 3,599    

 

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