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BENEFIT PLANS
6 Months Ended
Jun. 30, 2018
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 for salaried pension participants. Effective December 31, 2015, we amended our defined benefit pension plans to freeze earnings 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

2018 

 

 

2017 

 

 

2018 

 

 

2017 

 

Components of Net Periodic Benefit Cost

 

 

 

 

 

 

 

 

 

 

 

Service cost

$        1,429 

 

 

$        1,654 

 

 

$        2,858 

 

 

$        3,308 

 

Interest cost

8,875 

 

 

9,058 

 

 

17,751 

 

 

18,115 

 

Expected return on plan assets

(14,797)

 

 

(12,096)

 

 

(29,594)

 

 

(24,192)

 

Amortization of prior service cost

335 

 

 

335 

 

 

670 

 

 

670 

 

Amortization of actuarial loss

2,456 

 

 

1,823 

 

 

4,913 

 

 

3,647 

 

Net periodic pension benefit cost (credit)

$       (1,702)

 

 

$           774 

 

 

$       (3,402)

 

 

$        1,548 

 

Pretax reclassifications from AOCI included in

 

 

 

 

 

 

 

 

 

 

 

  net periodic pension benefit cost

$        2,791 

 

 

$        2,158 

 

 

$        5,583 

 

 

$        4,317 

 



The contributions to pension plans for the six months ended June 30, 2018 and 2017, as reflected on the Condensed Consolidated Statements of Cash Flows, pertain to benefit payments under nonqualified plans and a first quarter 2018 discretionary qualified plan contribution of $100,000,000.



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

2018 

 

 

2017 

 

 

2018 

 

 

2017 

 

Components of Net Periodic Benefit Cost

 

 

 

 

 

 

 

 

 

 

 

Service cost

$           340 

 

 

$           291 

 

 

$           679 

 

 

$           583 

 

Interest cost

310 

 

 

315 

 

 

620 

 

 

630 

 

Amortization of prior service credit

(990)

 

 

(1,059)

 

 

(1,981)

 

 

(2,118)

 

Amortization of actuarial gain

(325)

 

 

(396)

 

 

(649)

 

 

(793)

 

Net periodic postretirement benefit credit

$          (665)

 

 

$          (849)

 

 

$       (1,331)

 

 

$       (1,698)

 

Pretax reclassifications from AOCI included in

 

 

 

 

 

 

 

 

 

 

 

  net periodic postretirement benefit credit

$       (1,315)

 

 

$       (1,455)

 

 

$       (2,630)

 

 

$       (2,911)

 



We present the service cost component of net periodic benefit cost in cost of revenues and selling, administrative and general expense consistent with employee compensation costs. The other components of net periodic benefit cost (credit) are reported within other nonoperating income in our accompanying Condensed Consolidated Statements of Comprehensive Income.