NOTE 8—PENSION PLANS

In 2014 we elected to change our accounting method for recognizing actuarial gains and losses for our pension and other postretirement benefit plans. In connection with our accounting change we have revised previously reported amounts to conform to our current method of accounting.

Net periodic benefit gain for our non-contributory qualified defined benefit pension plan and several of our non-qualified supplemental defined benefit pension plans (the “Domestic Plans”) and our J. Ray McDermott, S.A. Third Country National Employees Pension Plan (the “TCN Plan”) includes the following components:

	Domestic Plans
	Three months ended June 30,						Six months ended June 30,
	2015			2014			2015			2014
	(In thousands)
Interest cost	$	5,425		$	6,709		$	10,807		$	13,487
Expected return on plan assets		(6,677	)		(6,876	)		(13,354	)		(13,751	)
Recognized net actuarial loss and other		-			217			-			-
Net periodic (benefit) cost	$	(1,252	)	$	50		$	(2,547	)	$	(264	)

	TCN Plan
	Three months ended June 30,						Six months ended June 30,
	2015			2014			2015			2014
	(In thousands)
Interest cost	$	406		$	475		$	813		$	950
Expected return on plan assets		(710	)		(740	)		(1,420	)		(1,480	)
Net periodic benefit	$	(304	)	$	(265	)	$	(607	)	$	(530	)