Note F – Employee and Retiree Benefit Plans

The Company has defined benefit pension plans that are principally noncontributory and cover most full-time employees. All pension plans are funded except for the U.S. and Canadian nonqualified supplemental plans and the U.S. Directors’ plan. All U.S. tax qualified plans meet the funding requirements of federal laws and regulations. Contributions to foreign plans are based on local laws and tax regulations. The Company also sponsors health care and life insurance benefit plans, which are not funded, that cover most active and retired U.S. employees. Additionally, most U.S. retired employees are covered by a life insurance benefit plan. The health care benefits are contributory; the life insurance benefits are noncontributory.

Note F – Employee and Retiree Benefit Plans (Contd.)

The table that follows provides the components of net periodic benefit expense for the three-month periods ended March 31, 2017 and 2016.



	Three Months Ended March 31,
	Pension Benefits			Other Postretirement Benefits
(Thousands of dollars)		2017	2016	2017		2016
Service cost	$	2,032	3,153		425		673
Interest cost		6,719	5,608		966		1,108
Expected return on plan assets		(7,185)	(5,385)		–		–
Amortization of prior service cost (credit)		254	319		(18)		(21)
Recognized actuarial loss		3,554	3,529		–		39
Curtailments		–	822		–		(19)
Net periodic benefit expense	$	5,374	8,046		1,373		1,780

Curtailment expense for the three months ended March 31, 2016, shown in the table above relate to restructuring activities in the U.S. undertaken by the Company in the first quarter 2016. During the three-month period ended March 31, 2017, the Company made contributions of $9.7 million to its defined benefit pension and postretirement benefit plans. Remaining required funding in 2017 for the Company’s defined benefit pension and postretirement plans is anticipated to be $21.1 million.