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Pension and Postretirement Benefit Obligations
6 Months Ended
Jun. 30, 2019
Compensation And Retirement Disclosure [Abstract]  
Pension and Postretirement Benefit Obligations

17.Pension and Postretirement Benefit Obligations

 

Pension Plans

 

There are two Company-sponsored pension plans. The primary Company-sponsored pension plan was frozen as of June 30, 2006 and no benefits accrued to participants after this date. The second Company-sponsored pension plan (the “Bargaining Plan”) is for certain employees under collective bargaining agreements. Benefits under the Bargaining Plan are determined in accordance with negotiated formulas for the respective participants. Contributions to the plans are based on actuarially determined amounts and are limited to the amounts currently deductible for income tax purposes.

 

The components of net periodic pension cost were as follows:

 

 

 

Second Quarter

 

 

First Half

 

(in thousands)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Service cost

 

$

1,206

 

 

$

1,413

 

 

$

2,413

 

 

$

2,825

 

Interest cost

 

 

3,062

 

 

 

2,856

 

 

 

6,125

 

 

 

5,712

 

Expected return on plan assets

 

 

(2,574

)

 

 

(3,852

)

 

 

(5,148

)

 

 

(7,704

)

Recognized net actuarial loss

 

 

900

 

 

 

933

 

 

 

1,801

 

 

 

1,866

 

Amortization of prior service cost

 

 

7

 

 

 

6

 

 

 

12

 

 

 

12

 

Net periodic pension cost

 

$

2,601

 

 

$

1,356

 

 

$

5,203

 

 

$

2,711

 

 

The Company did not make any contributions to the two Company sponsored pension plans during the first half of 2019. Contributions to the two Company-sponsored pension plans are expected to be in the range of $1 million to $2 million for the remainder of 2019.

 

Postretirement Benefits

 

The Company provides postretirement benefits for a portion of its current employees. The Company recognizes the cost of postretirement benefits, which consist principally of medical benefits, during covered employees’ periods of active service. The Company does not pre-fund these benefits and has the right to modify or terminate certain of these benefits in the future.

 

The components of net periodic postretirement benefit cost were as follows:

 

 

 

Second Quarter

 

 

First Half

 

(in thousands)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Service cost

 

$

389

 

 

$

503

 

 

$

778

 

 

$

1,005

 

Interest cost

 

 

693

 

 

 

696

 

 

 

1,386

 

 

 

1,392

 

Recognized net actuarial loss

 

 

195

 

 

 

499

 

 

 

391

 

 

 

998

 

Amortization of prior service cost

 

 

(322

)

 

 

(462

)

 

 

(646

)

 

 

(924

)

Net periodic postretirement benefit cost

 

$

955

 

 

$

1,236

 

 

$

1,909

 

 

$

2,471