EMPLOYEE BENEFIT PLANS

The Company has one qualified non-contributory defined benefit pension plan covering a portion of its employees and an unfunded plan that provides benefits in excess of amounts allowable under current tax law in the qualified plan. Both plans are closed to new participants. Effective December 31, 2016, the Company froze benefits for all employees participating in the pension plan. In lieu of the pension plan, the Company provides those employees with an enhanced 401(k) plan match. Employee benefit plan liabilities are calculated using actuarial estimates and management assumptions. These estimates are based on historical information, along with certain assumptions about future events. Changes in assumptions, as well as changes in actual experience, could cause the estimates to change.

As of June 30, 2018, the Company has paid $1.2 million of the approximately $2.9 million in current year mandatory pension contribution requirements (based on actuarially determined estimates and IRS minimum funding requirements).

The net pension and postretirement benefit (credit) costs that have been recorded are shown in the following table:



Components of Net Periodic Benefit (Credit) Cost	Income Statement Location (a)	Pension						Postretirement
		Three Months Ended June 30,						Three Months Ended June 30,
		2018			2017			2018		2017
Components of Net Periodic Benefit (Credit) Cost
Service cost	Selling and general expenses	—			—				$2		$2
Interest cost	Interest and other miscellaneous income, net	759			815			13		13
Expected return on plan assets (b)	Interest and other miscellaneous income, net	(984		)	(945		)	—		—
Amortization of losses	Interest and other miscellaneous income, net	178			116			—		—
Net periodic benefit (credit) cost			($47	)		($14	)		$15		$15



Components of Net Periodic Benefit (Credit) Cost	Income Statement Location (a)	Pension						Postretirement
		Six Months Ended June 30,						Six Months Ended June 30,
		2018			2017			2018		2017
Components of Net Periodic Benefit (Credit) Cost
Service cost	Selling and general expenses	—			—				$3		$3
Interest cost	Interest and other miscellaneous income, net	1,510			1,630			25		26
Expected return on plan assets (b)	Interest and other miscellaneous income, net	(1,968		)	(1,891		)	—		—
Amortization of losses	Interest and other miscellaneous income, net	338			233			1		—
Net periodic benefit (credit) cost			($120	)		($28	)		$29		$29

(a)

Due to the adoption of ASU No. 2017-07, the service cost component of net periodic benefit (credit) cost is now recorded to “Selling and general expenses” in the Consolidated Statements of Income and Comprehensive Income with other compensation costs arising from services rendered by employees during the period. The other components of net periodic benefit (credit) cost (interest cost, expected return on plan assets and amortization of losses) are now recorded to “Interest and other miscellaneous income, net” in the Consolidated Statements of Income. Prior period amounts have been reclassified to conform to current period presentation. See Note 1 — Basis of Presentation for additional information.


(b)	The weighted-average expected long-term rate of return on plan assets used in computing 2018 net periodic benefit cost for pension benefits is 7.2%.