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BENEFIT PLANS
6 Months Ended
Jun. 30, 2017
BENEFIT PLANS [Abstract]  
BENEFIT PLANS

Note 10: Benefit Plans



We sponsor three qualified, noncontributory defined benefit pension plans. These plans cover substantially all employees hired before July 2007, other than those covered by union-administered plans. Normal retirement age is 65, but the plans contain provisions for earlier retirement. Benefits for the Salaried Plan and the Chemicals Hourly Plan are generally based on salaries or wages and years of service; the Construction Materials Hourly Plan provides benefits equal to a flat dollar amount for each year of service. In addition to these qualified plans, we sponsor three unfunded, nonqualified pension plans.



Effective July 2007, we amended our defined benefit pension plans to no longer accept new participants. Effective December 2013, we amended our defined benefit pension plans to freeze future benefit accruals after December 2015 for salaried pension participants.



The following table sets forth the components of net periodic pension benefit cost:





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

PENSION BENEFITS

Three Months Ended

 

 

Six Months Ended

 



June 30

 

 

June 30

 

in thousands

2017 

 

 

2016 

 

 

2017 

 

 

2016 

 

Components of Net Periodic Benefit Cost

 

 

 

 

 

 

 

 

 

 

 

Service cost

$        1,654 

 

 

$        1,336 

 

 

$        3,308 

 

 

$        2,672 

 

Interest cost

9,058 

 

 

9,126 

 

 

18,115 

 

 

18,252 

 

Expected return on plan assets

(12,096)

 

 

(12,890)

 

 

(24,192)

 

 

(25,781)

 

Amortization of prior service cost (credit)

335 

 

 

(10)

 

 

670 

 

 

(21)

 

Amortization of actuarial loss

1,823 

 

 

1,541 

 

 

3,647 

 

 

3,082 

 

Net periodic pension benefit cost (credit)

$           774 

 

 

$          (897)

 

 

$        1,548 

 

 

$       (1,796)

 

Pretax reclassifications from AOCI included in

 

 

 

 

 

 

 

 

 

 

 

  net periodic pension benefit cost

$        2,158 

 

 

$        1,531 

 

 

$        4,317 

 

 

$        3,061 

 



The contributions to pension plans for the six months ended June  30, 2017 and 2016, as reflected on the Condensed Consolidated Statements of Cash Flows, pertain to benefit payments under nonqualified plans. While we do not expect to be required to make contributions to the qualified plans during 2017, we do expect to make a discretionary qualified plan contribution of approximately $10,600,000.



In addition to pension benefits, we provide certain healthcare and life insurance benefits for some retired employees. In 2012, we amended our postretirement healthcare plan to cap our portion of the medical coverage cost at the 2015 level. Substantially all our salaried employees and, where applicable, certain of our hourly employees may become eligible for these benefits if they reach a qualifying age and meet certain service requirements. Generally, Company-provided healthcare benefits end when covered individuals become eligible for Medicare benefits, become eligible for other group insurance coverage or reach age 65, whichever occurs first.



The following table sets forth the components of net periodic other postretirement benefit cost:







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

OTHER POSTRETIREMENT BENEFITS

Three Months Ended

 

 

Six Months Ended

 



June 30

 

 

June 30

 

in thousands

2017 

 

 

2016 

 

 

2017 

 

 

2016 

 

Components of Net Periodic Benefit Cost

 

 

 

 

 

 

 

 

 

 

 

Service cost

$           291 

 

 

$           280 

 

 

$           583 

 

 

$           561 

 

Interest cost

315 

 

 

303 

 

 

630 

 

 

605 

 

Amortization of prior service credit

(1,059)

 

 

(1,059)

 

 

(2,118)

 

 

(2,118)

 

Amortization of actuarial gain

(396)

 

 

(437)

 

 

(793)

 

 

(875)

 

Net periodic postretirement benefit credit

$          (849)

 

 

$          (913)

 

 

$       (1,698)

 

 

$       (1,827)

 

Pretax reclassifications from AOCI included in

 

 

 

 

 

 

 

 

 

 

 

  net periodic postretirement benefit credit

$       (1,455)

 

 

$       (1,496)

 

 

$       (2,911)

 

 

$       (2,993)