v3.21.2
Retirement Plans
 3 Months Ended
Aug. 31, 2021
Compensation And Retirement Disclosure [Abstract]  
Retirement Plans

(6) Retirement Plans

We sponsor programs that provide retirement benefits to most of our employees. These programs include defined benefit pension plans, defined contribution plans, and postretirement healthcare plans. Key terms of our retirement plans are provided in our Annual Report.

Our retirement plans costs for the three-month periods ended August 31 were as follows (in millions):

 

 

 

2021

 

 

2020

 

Defined benefit pension plans, net

 

$

(3

)

 

$

25

 

Defined contribution plans

 

 

180

 

 

 

159

 

Postretirement healthcare plans

 

 

22

 

 

 

21

 

 

 

$

199

 

 

$

205

 

 

 

Net periodic benefit cost of the pension and postretirement healthcare plans for the three-month periods ended August 31 included the following components (in millions):

 

 

 

U.S. Pension Plans

 

 

International Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Service cost

 

$

208

 

 

$

213

 

 

$

15

 

 

$

23

 

 

$

12

 

 

$

11

 

Other retirement plans expense (income):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Interest cost

 

 

256

 

 

 

240

 

 

 

12

 

 

 

10

 

 

 

10

 

 

 

10

 

    Expected return on plan assets

 

 

(478

)

 

 

(446

)

 

 

(14

)

 

 

(12

)

 

 

—

 

 

 

—

 

   Amortization of prior service credit and other

 

 

(2

)

 

 

(2

)

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

 

(224

)

 

 

(208

)

 

 

(2

)

 

 

(3

)

 

 

10

 

 

 

10

 

 

 

$

(16

)

 

$

5

 

 

$

13

 

 

$

20

 

 

$

22

 

 

$

21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For 2022, no pension contributions are required for our tax-qualified U.S. domestic pension plans (“U.S. Pension Plans”) as they are fully funded under the Employee Retirement Income Security Act. We made no voluntary contributions to our U.S. Pension Plans during the first quarter of 2022.

In 2020, we announced the closing of our U.S.-based defined benefit pension plans to new non-union employees hired on or after January 1, 2020. We will introduce an all-401(k) plan retirement benefit structure for eligible employees with a higher company match of up to 8% across all U.S.-based operating companies in 2022. During calendar 2021, current eligible employees under the Portable Pension Account (“PPA”) pension formula were given a one-time option to continue to be eligible for pension compensation credits under the existing PPA formula and remain in the existing 401(k) plan with its match of up to 3.5%, or to cease receiving compensation credits under the PPA and move to the new 401(k) plan with the higher company match of up to 8%. Changes to the new 401(k) plan structure will become effective beginning January 1, 2022. While this new program will provide employees greater flexibility and reduce our long-term pension costs, it will not have a material impact on current or near-term financial results.