Retirement Benefits

9 Months Ended

Sep. 30, 2014

Retirement Benefits

Retirement Benefits

(10) Retirement Benefits

Net periodic pension expense for the U.S. and non-U.S. defined benefit pension plans includes the following components:

	U.S. Pension Plan												Non-U.S. Pension Plans
	Three Months Ended September 30,						Nine Months Ended September 30,						Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2014			2013			2014			2013			2014			2013			2014			2013
Service cost	$	950		$	1,613		$	2,850		$	4,840		$	4,071		$	3,809		$	12,400		$	11,505
Interest cost	7,919			7,275			23,756			21,825			8,702			7,989			26,387			23,925
Expected return on assets	(7,527		)	(7,744		)	(22,579		)	(23,232		)	(12,120		)	(11,527		)	(36,729		)	(34,507		)
Amortization of prior service cost	188			26			563			77			—			—			—			—
Recognized net actuarial loss	1,109			1,510			3,326			4,530			1,943			1,683			5,923			5,058
Net periodic pension expense	$	2,639		$	2,680		$	7,916		$	8,040		$	2,596		$	1,954		$	7,981		$	5,981

The company currently expects to fund approximately $50 million to $60 million into its defined benefit pension plans during 2014, which is expected to be in excess of the minimum funding required. During the nine months ended September 30, 2014, contributions of approximately $50 million were made by the company.

The company’s Board of Directors previously approved amendments to freeze the accrual of future service-related benefits for salaried participants of the U.S. defined benefit pension plan (the “U.S. plan”) as of December 31, 2011 and craft participants of the U.S. plan as of December 31, 2013.

On October 29, 2014, the company’s Board of Directors approved an amendment to terminate the U.S. plan effective December 31, 2014. The settlement of the plan is expected to occur in late 2015, subject to regulatory approval. The company’s ultimate settlement obligation will depend  upon the nature and timing of participant settlements. Upon settlement, the company expects to recognize additional expense, consisting of unrecognized actuarial losses included in accumulated other comprehensive loss that totaled approximately $160 million as of September 30, 2014, as well as an amount by which the settlement obligation exceeds the company's accrued pension liability, which could also be significant. The company does not expect the settlement of the plan obligations to have a material impact on its cash position.