Pension plans and other postretirement benefits

6 Months Ended

Jun. 30, 2022

Compensation And Retirement Disclosure [Abstract]

Pension plans and other postretirement benefits

8. Pension plans and other postretirement benefits

The Company provides defined benefit pension and other postretirement benefits (including health care and life insurance benefits) to qualified retired employees. Net periodic defined benefit cost for defined benefit plans consisted of the following:

	Pension Benefits						Other Postretirement Benefits
	Three Months Ended June 30
	2022			2021			2022			2021
	(In thousands)
Service cost	$	4,543		$	5,234		$	993		$	258
Interest cost on projected benefit obligation		22,080			15,502			671			329
Expected return on plan assets		(50,083	)		(35,774	)		—			—
Amortization of prior service cost (credit)		133			151			(311	)		(1,194	)
Amortization of net actuarial loss (gain)		5,322			22,359			(416	)		(347	)
Net periodic cost (benefit)	$	(18,005	)	$	7,472		$	937		$	(954	)
	Pension Benefits						Other Postretirement Benefits
	Six Months Ended June 30
	2022			2021			2022			2021
	(In thousands)
Service cost	$	8,814		$	10,257		$	1,225		$	506
Interest cost on projected benefit obligation		38,347			30,936			1,026			656
Expected return on plan assets		(87,233	)		(71,724	)		—			—
Amortization of prior service cost (credit)		258			276			(1,386	)		(2,369	)
Amortization of net actuarial loss (gain)		9,947			44,509			(741	)		(647	)
Net periodic cost (benefit)	$	(29,867	)	$	14,254		$	124		$	(1,854	)

Service cost is reflected in salaries and employee benefits expense in the consolidated statement of income. The other components of net periodic benefit cost are reflected in other costs of operations. Expenses incurred in connection with the Company's defined contribution pension and retirement savings plans totaled $35 million and $25 million for the three months ended June 30, 2022 and 2021, respectively, and $66 million and $58 million for the six months ended June 30, 2022 and 2021, respectively, and are included in salaries and employee benefits expense.

Prior to 2022, net actuarial losses were generally amortized over the average remaining service periods of active participants in the Company’s defined benefit pension plan. If substantially all of the plan’s participants are inactive, GAAP provides for the average remaining life expectancy of the participants to be used instead of average remaining service period in determining such amortization. Substantially all of the participants in the Company’s defined benefit pension plan were inactive and beginning in 2022 the average remaining life expectancy is now utilized prospectively to amortize the net unrecognized losses. The change increased the amortization period by approximately sixteen years and reduced the amount of amortization of unrecognized losses recorded for the three and six months ended June 30, 2022 from what would have been recorded without such change in amortization period by $9 million and $18 million, respectively.