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EMPLOYEE BENEFITS - POSTRETIREMENT
 6 Months Ended
Jun. 30, 2017
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
EMPLOYEE BENEFITS - POSTRETIREMENT
EMPLOYEE BENEFITS - POSTRETIREMENT
 
The Company has a postretirement healthcare benefits plan that provides coverage for a majority of its U.S. employees (and their dependents) hired prior to January 1, 2013, should they elect to maintain such coverage upon retirement. Covered employees become eligible for participation when they qualify for retirement while working for the Company. Participation in the plan is voluntary and requires participants to make contributions toward the cost of the plan, as determined by the Company.

The net periodic benefit costs charged to operating expenses, which are valued at the measurement date of January 1 and recognized evenly throughout the year, consisted of the following components (in thousands of dollars):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Service cost
$
1,897

 
$
2,060

 
$
3,794

 
$
4,119

Interest cost
2,148

 
2,463

 
4,297

 
4,927

Expected return on assets
(2,857
)
 
(2,528
)
 
(5,714
)
 
(5,056
)
Amortization of unrecognized (gains) losses
(656
)
 
32

 
(1,311
)
 
64

Amortization of prior service credits
(1,622
)
 
(1,672
)
 
(3,244
)
 
(3,344
)
Net periodic (benefits) costs
$
(1,090
)
 
$
355

 
$
(2,178
)
 
$
710


 
The Company has established a Group Benefit Trust to fund the plan and process benefit payments. The funding of the trust is an estimated amount which is intended to allow the maximum deductible contribution under the Internal Revenue Code of 1986 (IRC), as amended.  There are zero minimum funding requirements and the Company did not make contributions to the trust during the six months ended June 30, 2017. The Company intends to follow its practice of funding the maximum deductible amounts under the IRC.