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EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2018
Defined Benefit Plan [Abstract]  
Pension and postretirement benefit plans obligations and fair value of plan assets
Obligations and Funded Status - The following table sets forth our retirement and other postretirement benefit plans benefit obligations and fair value of plan assets for the periods indicated:
 
 
Retirement Benefits
 
Other Postretirement Benefits
 
 
December 31,
 
December 31,
 
 
2018
 
2017
 
2018
 
2017
Change in benefit obligation
 
(Thousands of dollars)
Benefit obligation, beginning of period
 
$
481,615

 
$
428,386

 
$
57,938

 
$
54,823

Service cost
 
7,339

 
6,896

 
845

 
662

Interest cost
 
17,659

 
18,645

 
2,108

 
2,261

Plan participants’ contributions
 
—

 
—

 
1,050

 
901

Actuarial loss (gain)
 
(24,345
)
 
41,678

 
(10,233
)
 
3,456

Benefits paid
 
(15,274
)
 
(13,990
)
 
(4,868
)
 
(4,165
)
Benefit obligation, end of period
 
466,994

 
481,615

 
46,840

 
57,938

 
 
 
 
 
 
 
 
 
Change in plan assets
 
 

 
 

 
 

 
 

Fair value of plan assets, beginning of period
 
306,008

 
261,671

 
34,133

 
29,550

Actual return on plan assets
 
(12,350
)
 
50,827

 
(998
)
 
5,385

Employer contributions
 
12,300

 
7,500

 
1,100

 
2,000

Plan participants’ contributions
 
—

 
—

 
1,050

 
901

Benefits paid
 
(15,274
)
 
(13,990
)
 
(4,485
)
 
(3,703
)
Fair value of plan assets, end of period
 
290,684

 
306,008

 
30,800

 
34,133

Balance at December 31
 
$
(176,310
)
 
$
(175,607
)
 
$
(16,040
)
 
$
(23,805
)
 
 
 
 
 
 
 
 
 
Current liabilities
 
$
(4,514
)
 
$
(4,544
)
 
$
—

 
$
—

Noncurrent liabilities
 
(171,796
)
 
(171,063
)
 
(16,040
)
 
(23,805
)
Balance at December 31
 
$
(176,310
)
 
$
(175,607
)
 
$
(16,040
)
 
$
(23,805
)
Components of net periodic benefit cost for pension and postretirement benefit plans
Components of Net Periodic Benefit Cost - The following table sets forth the components of net periodic benefit cost for our retirement and other postretirement benefit plans for the periods indicated:
 
 
Retirement Benefits
 
Other Postretirement Benefits
 
 
Years Ended December 31,
 
Years Ended December 31,
 
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
 
 
(Thousands of dollars)
Components of net periodic benefit cost
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
7,339

 
$
6,896

 
$
6,501

 
$
845

 
$
662

 
$
596

Interest cost
 
17,659

 
18,645

 
19,820

 
2,108

 
2,261

 
2,404

Expected return on plan assets
 
(23,917
)
 
(21,376
)
 
(20,348
)
 
(2,690
)
 
(2,257
)
 
(2,124
)
Amortization of prior service credit
 
—

 
—

 
—

 
(1,662
)
 
(1,662
)
 
(1,662
)
Amortization of net loss
 
17,060

 
13,586

 
10,966

 
1,338

 
1,679

 
1,046

Net periodic benefit cost
 
$
18,141

 
$
17,751

 
$
16,939

 
$
(61
)
 
$
683

 
$
260
Amounts recognized in other comprehensive income (loss)
Other Comprehensive Income (Loss) - The following table sets forth the amounts recognized in other comprehensive income (loss) related to our retirement benefits and other postretirement benefits for the periods indicated:
 
 
Retirement Benefits
 
Other Postretirement Benefits
 
 
Years Ended December 31,
 
Years Ended December 31,
 
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
 
 
(Thousands of dollars)
Net gain (loss) arising during the period
 
$
(16,351
)
 
$
(16,572
)
 
$
(33,043
)
 
$
6,545

 
$
(328
)
 
$
(5,128
)
Amortization of prior service credit
 
—

 
—

 
—

 
(1,662
)
 
(1,662
)
 
(1,662
)
Amortization of net loss
 
17,060

 
13,586

 
10,966

 
1,338

 
1,679

 
1,046

Deferred income taxes (a)
 
(18,928
)
 
(960
)
 
8,831

 
(2,831
)
 
82

 
2,297

Total recognized in other comprehensive income (loss)
 
$
(18,219
)
 
$
(3,946
)
 
$
(13,246
)
 
$
3,390

 
$
(229
)
 
$
(3,447
)

(a) - Year ended December 31, 2018, includes the impact of adopting ASU 2018-02.
Amounts in accumulated other comprehensive income (loss)
The table below sets forth the amounts in accumulated other comprehensive loss that had not yet been recognized as components of net periodic benefit expense for the periods indicated:
 
 
Retirement Benefits
 
Other Postretirement Benefits
 
 
December 31,
 
December 31,
 
 
2018
 
2017
 
2018
 
2017
 
 
(Thousands of dollars)
Prior service credit
 
$
—

 
$
—

 
$
227

 
$
1,889

Accumulated loss
 
(160,212
)
 
(160,921
)
 
(5,108
)
 
(12,991
)
Accumulated other comprehensive loss
 
(160,212
)
 
(160,921
)
 
(4,881
)
 
(11,102
)
Deferred income taxes
 
43,286

 
62,214

 
1,567

 
4,398

Accumulated other comprehensive loss, net of tax
 
$
(116,926
)
 
$
(98,707
)
 
$
(3,314
)
 
$
(6,704
)
Weighted-average assumptions used to determine benefit obligations and net periodic benefit costs
Actuarial Assumptions - The following table sets forth the weighted-average assumptions used to determine benefit obligations for retirement and other postretirement benefits for the periods indicated:
 
 
Retirement Benefits
 
Other Postretirement Benefits
 
 
December 31,
 
December 31,
 
 
2018
 
2017
 
2018
 
2017
Discount rate
 
4.50%
 
3.75%
 
4.50%
 
3.75%
Compensation increase rate
 
3.65%
 
3.00%
 
N/A
 
N/A

The following table sets forth the weighted-average assumptions used to determine net periodic benefit costs for the periods indicated:
 
 
Years Ended December 31,
 
 
2018
 
2017
 
2016
Discount rate - retirement plans
 
3.75%
 
4.50%
 
5.25%
Discount rate - other postretirement plans
 
3.75%
 
4.25%
 
5.00%
Expected long-term return on plan assets
 
8.00%
 
7.75%
 
7.75%
Compensation increase rate
 
3.00%
 
3.10%
 
3.10%
Assumed health care cost trend rates
Health Care Cost Trend Rates - The following table sets forth the assumed health care cost-trend rates for the periods indicated:
 
 
2018
 
2017
Health care cost-trend rate assumed for next year
 
6.50%
 
7.00%
Rate to which the cost-trend rate is assumed to decline
(the ultimate trend rate)
 
5.00%
 
5.00%
Year that the rate reaches the ultimate trend rate
 
2022
 
2022
Schedule of allocation of plan assets
Plan Assets - Our investment strategy is to invest plan assets in accordance with sound investment practices that emphasize long-term fundamentals. The goal of this strategy is to maximize investment returns while managing risk in order to meet the plan’s current and projected financial obligations. The investment policy follows a glide path approach toward liability-driven investing that shifts a higher portfolio weighting to fixed income as the plan's funded status increases. The purpose of liability-driven investing is to structure the asset portfolio to more closely resemble the pension liability and thereby more effectively hedge against changes in the liability. The plan’s current investments include a diverse blend of various domestic and international equities, investments in various classes of debt securities, real estate and hedge funds. The target allocation for the assets of our retirement plan as of December 31, 2018, is as follows:
Domestic and international equities
 
42
%
Long duration fixed income
 
30
%
Return-seeking credit
 
11
%
Hedge funds
 
10
%
Real estate funds
 
7
%
Total
 
100
%

As part of our risk management for the plans, minimums and maximums have been set for each of the asset classes listed above. All investment managers for the plan are subject to certain restrictions on the securities they purchase and, with the exception of indexing purposes, are prohibited from owning our stock.

The following tables set forth the plan assets by fair value category as of the measurement date for our defined benefit pension and other postretirement benefit plans:
 
 
Pension Benefits
 
 
December 31, 2018
Asset Category
 
Level 1
 
Level 2
 
Level 3
 
Subtotal
 
Measured at NAV (d)
 
Total
 
 
(Thousands of dollars)
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities (a)
 
$
58

 
$
—

 
$
—

 
$
58

 
$
116,790

 
$
116,848

Real estate funds
 
—

 
—

 
—

 
—

 
20,569

 
20,569

Government obligations
 
—

 
—

 
—

 
—

 
48,913

 
48,913

Corporate obligations (b)
 
—

 
—

 
—

 
—

 
69,377

 
69,377

Common/collective trusts
 
—

 
3,961

 
—

 
3,961

 
—

 
3,961

Cash
 
95

 
—

 
—

 
95

 
—

 
95

Other investments (c)
 
—

 
—

 
—

 
—

 
30,921

 
30,921

Fair value of plan assets
 
$
153

 
$
3,961

 
$
—

 
$
4,114

 
$
286,570

 
$
290,684

(a) - This category represents securities of the respective market sector from diverse industries.
(b) - This category represents bonds from diverse industries.
(c) - This category represents alternative investments in limited partnerships, which can be redeemed with a 30-day notice with no further restrictions. There are no unfunded capital commitments.
(d) - Plan asset investments measured at fair value using the net asset value per share.

 
 
Pension Benefits
 
 
December 31, 2017
Asset Category
 
Level 1
 
Level 2
 
Level 3
 
Subtotal
 
Measured at NAV (d)
 
Total
 
 
(Thousands of dollars)
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities (a)
 
$
176,347

 
$
19,199

 
$
—

 
$
195,546

 
$
—

 
$
195,546

Government obligations
 
—

 
19,481

 
—

 
19,481

 
—

 
19,481

Corporate obligations (b)
 
—

 
62,981

 
—

 
62,981

 
—

 
62,981

Common/collective trusts
 
—

 
6,621

 
—

 
6,621

 
—

 
6,621

Cash
 
298

 
—

 
—

 
298

 
—

 
298

Other investments (c)
 
—

 
—

 
—

 
—

 
21,081

 
21,081

Fair value of plan assets
 
$
176,645

 
$
108,282

 
$
—

 
$
284,927

 
$
21,081

 
$
306,008

(a) - This category represents securities of the respective market sector from diverse industries.
(b) - This category represents bonds from diverse industries.
(c) - This category represents alternative investments in limited partnerships, which can be redeemed with a 30-day notice with no further restrictions. There are no unfunded capital commitments.
(d) - Plan asset investments measured at fair value using the net asset value per share.

 
 
Other Postretirement Benefits
 
 
December 31, 2018
Asset Category
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(Thousands of dollars)
Investments:
 
 
 
 
 
 
 
 
Equity securities (a)
 
$
1,792

 
$
—

 
$
—

 
$
1,792

Money market funds
 
1

 
413

 
—

 
414

Insurance and group annuity contracts
 
—

 
28,594

 
—

 
28,594

Fair value of plan assets
 
$
1,793

 
$
29,007

 
$
—

 
$
30,800

(a) - This category represents securities of the respective market sector from diverse industries.
 
 
Other Postretirement Benefits
 
 
December 31, 2017
Asset Category
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(Thousands of dollars)
Investments:
 
 
 
 
 
 
 
 
Equity securities (a)
 
$
1,951

 
$
—

 
$
—

 
$
1,951

Money market funds
 
—

 
1,515

 
—

 
1,515

Insurance and group annuity contracts
 
—

 
30,667

 
—

 
30,667

Fair value of plan assets
 
$
1,951

 
$
32,182

 
$
—

 
$
34,133

(a) - This category represents securities of the respective market sector from diverse industries.
Pension benefits and postretirement benefit payments expected to be paid
The following table sets forth the defined benefit pension and other postretirement benefits payments expected to be paid in 2019 through 2028:
 
 
Pension
Benefits
 
Other Postretirement
Benefits
Benefits to be paid in:
 
(Thousands of dollars)
2019
 
$
17,014

 
$
3,114

2020
 
$
18,164

 
$
3,237

2021
 
$
19,215

 
$
3,230

2022
 
$
20,279

 
$
3,346

2023
 
$
21,362

 
$
3,315

2024 through 2028
 
$
122,012

 
$
16,178