SEC Document


The following table presents the amounts in accumulated other comprehensive income (loss) as of May 31, 2017 that have not yet been recognized in net periodic pension cost, but will be recognized in our Consolidated Statements of Income during the fiscal year ending May 31, 2018:

 

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

Net actuarial loss

   $ (14,325       $ (1,675)    

Prior service (cost) credit

   $ (117       $ 25     

 

In measuring the projected benefit obligation and net periodic pension cost for our plans, we utilize actuarial valuations. These valuations include specific information pertaining to individual plan participants, such as salary, age and years of service, along with certain assumptions. The most significant assumptions applied include discount rates, expected return on plan assets and rate of compensation increases. We evaluate these assumptions, at a minimum, on an annual basis, and make required changes, as applicable. In developing our expected long-term rate of return on pension plan assets, we consider

the current and expected target asset allocations of the pension portfolio, as well as historical returns and future expectations for returns on various categories of plan assets. Expected return on assets is determined by using the weighted-average return on asset classes based on expected return for the target asset allocations of the principal asset categories held by each plan. In determining expected return, we consider both historical performance and an estimate of future long-term rates of return. Actual experience is used to develop the assumption for compensation increases.

 

The following weighted-average assumptions were used to determine our year-end benefit obligations and net periodic pension cost under the plans:

 

                    U.S. Plans                        Non-U.S. Plans        
Year-End Benefit Obligations          2017   2016        2017   2016

Discount rate

     3.81%   3.85%      2.79%   3.13%

Rate of compensation increase

     3.80%   3.80%      3.00%   2.81%

 

             U.S. Plans        Non-U.S. Plans
Net Periodic Pension Cost               2017        2016        2015                2017        2016        2015    

Discount rate

          3.85%        4.25%        4.30%              3.13%        3.26%        3.82%    

Expected return on plan assets

          7.89%        7.90%        8.25%              4.50%        4.49%        5.18%    

Rate of compensation increase

          3.80%        3.80%        3.81%              2.81%        2.81%        3.30%    

The following tables illustrate the weighted-average actual and target allocation of plan assets:

 

U.S. Plans  
   

Target Allocation  

    Actual Asset
Allocation
 
(Dollars in millions)   as of May 31, 2017       2017     2016      

Equity securities

    55%       $ 295.2     $ 234.7      

Fixed income securities

    25%         82.4       72.1      

Cash (1)

      59.7       7.1      

Other

    20%         0.2       0.3      

Total assets

    100%       $   437.5     $   314.2      
Non-U.S. Plans  
   

Target Allocation  

    Actual Asset
Allocation
 
(Dollars in millions)   as of May 31, 2017       2017     2016      

Equity securities

    40%       $ 83.8     $ 71.7      

Fixed income securities

    41%         65.9       67.4      

Cash

     

Property and other

    19%         30.2       30.4      

Total assets

    100%       $   179.9     $   169.5      
 
(1) The cash position at May 31, 2017 results from our acceleration of the planned fiscal 2018 contribution, which was deposited into the RPM International Inc. Retirement Plan during May 2017. The cash will be invested at various points in time during fiscal 2018.

 

56    RPM International Inc. and Subsidiaries


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