Employee and Retiree Benefit Plans

9 Months Ended

Sep. 30, 2017

Employee and Retiree Benefit Plans [Abstract]

Employee and Retiree Benefit Plans

Note F – Employee and Retiree Benefit Plans

The Company has defined benefit pension plans that are principally noncontributory and cover most North American full-time employees.  All pension plans are funded except for the U.S. nonqualified supplemental 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.  The health care benefits are contributory; the life insurance benefits are noncontributory.

The table that follows provides the components of net periodic benefit expense for the three-month and nine-month periods ended September 30, 2017 and 2016.

	Three Months Ended September 30,
	Pension Benefits			Other Postretirement Benefits
(Thousands of dollars)		2017	2016	2017		2016
Service cost	$	2,037	2,610		427		674
Interest cost		7,261	5,913		966		1,109
Expected return on plan assets		(8,070)	(6,626)		–		–
Amortization of prior service cost (credit)		259	323		(18)		(21)
Amortization of transitional asset		–	–		–		2
Recognized actuarial loss		3,610	3,617		–		38
Net periodic benefit expense	$	5,097	5,837		1,375		1,802
	Nine Months Ended September 30,
	Pension Benefits			Other Postretirement Benefits
(Thousands of dollars)		2017	2016	2017		2016
Service cost	$	6,099	8,533		1,276		2,022
Interest cost		20,267	20,386		2,899		3,324
Expected return on plan assets		(21,730)	(21,709)		–		–
Amortization of prior service cost (credit)		767	963		(55)		(62)
Amortization of transitional asset		–	–		–		4
Recognized actuarial loss		10,673	10,864		–		113
Curtailments		–	822		–		(19)
Net periodic benefit expense	$	16,076	19,859		4,120		5,382

Curtailment expense for the nine months ended September 30, 2016, shown in the table above, relates to restructuring activities in the U.S. undertaken by the Company in the first quarter of 2016.

During the nine-month period ended September 30, 2017, the Company made contributions of $24.0 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 $6.8million.