Employee and Retiree Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2017



	Pension Benefits			Other Postretirement Benefits
(Thousands of dollars)	2017		2016	2017	2016
Change in benefit obligation
Obligation at January 1	$	815,593	794,589	106,679	115,222
Service cost		8,279	8,136	1,601	1,864
Interest cost		27,047	25,185	3,444	3,800
Participant contributions		–	–	2,075	1,278
Actuarial loss (gain)		60,855	58,236	(3,077)	(10,627)
Medicare Part D subsidy		–	–	318	510
Exchange rate changes		18,751	(30,447)	46	20
Benefits paid		(39,910)	(40,928)	(4,810)	(5,369)
Curtailments		–	822	–	(19)
Other		(8,683)	–	–	–
Obligation at December 31		881,932	815,593	106,276	106,679
Change in plan assets
Fair value of plan assets at January 1		519,357	521,682	–	–
Actual return on plan assets		50,079	61,860	–	–
Employer contributions		24,918	8,186	2,417	3,581
Participant contributions		–	–	2,075	1,278
Medicare Part D subsidy		–	–	318	510
Exchange rate changes		18,064	(30,609)	–	–
Benefits paid		(39,910)	(40,928)	(4,810)	(5,369)
Other		(8,683)	(834)	–	–
Fair value of plan assets at December 31		563,825	519,357	–	–
Funded status and amounts recognized in the Consolidated Balance Sheets at December 31
Deferred charges and other assets		5,905	7,591	–	–
Other accrued liabilities		(8,856)	(8,184)	(5,392)	(5,267)
Deferred credits and other liabilities		(315,156)	(295,643)	(100,884)	(101,412)
Funded status and net plan liability recognized at December 31	$	(318,107)	(296,236)	(106,276)	(106,679)



(Thousands of dollars)	Pension Benefits		Other Postretirement Benefits
Net actuarial loss	$	(269,063)	221
Prior service (cost) credit		(5,824)	38
	$	(274,887)	259



(Thousands of dollars)	Pension Benefits		Other Postretirement Benefits
Net actuarial loss	$	(15,890)	–
Prior service (cost) credit		(1,021)	38
	$	(16,911)	38



	Projected Benefit Obligations			Accumulated Benefit Obligations		Fair Value of Plan Assets
(Thousands of dollars)	2017		2016	2017	2016	2017	2016
Funded qualified plans where accumulated benefit obligation exceeds fair value of plan assets	$	691,923	643,174	640,230	599,730	540,161	497,894
Unfunded nonqualified and directors' plans where accumulated benefit obligation exceeds fair value of plan assets		172,364	156,088	163,319	150,780	–	–
Unfunded other postretirement plans		106,276	106,678	106,276	106,678	–	–


	Pension Benefits				Other Postretirement Benefits
(Thousands of dollars)		2017	2016	2015	2017	2016	2015
Service cost	$	8,279	8,136	17,948	1,601	1,864	3,180
Interest cost		27,047	25,185	33,168	3,444	3,800	4,883
Expected return on plan assets		(28,941)	(28,154)	(34,016)	–	–	–
Amortization of prior service cost (credit)		1,026	1,204	1,560	(74)	(75)	(82)
Amortization of transitional (asset) liability		–	–	(1)	–	–	–
Recognized actuarial loss		16,691	16,165	15,147	–	5	992
		24,102	22,536	33,806	4,971	5,594	8,973
Termination benefits expense		–	–	8,606	–	–	–
Curtailment expense		–	822	306	–	(19)	–
Net periodic benefit expense	$	24,102	23,358	42,718	4,971	5,575	8,973



	Benefit Obligations				Net Periodic Benefit Expense
	Pension Benefits		Other Postretirement Benefits		Pension Benefits		Other Postretirement Benefits
	December 31		December 31		Year		Year
	2017	2016	2017	2016	2017	2016	2017	2016
Discount rate	3.42%	3.94%	3.73%	4.41%	3.66%	3.84%	4.33%	4.24%
Expected return on plan assets	5.64%	5.62%	–	–	5.64%	5.62%	–	–
Rate of compensation increase	3.52%	3.52%	–	–	3.52%	3.52%	–	–



(Thousands of dollars)	Pension Benefits		Other Postretirement Benefits
2018	$	39,929	6,259
2019		40,236	6,280
2020		41,220	6,357
2021		42,276	6,489
2022		43,554	6,560
2023-2027		227,039	33,971



(Thousands of dollars)	1% Increase		1% Decrease
Effect on total service and interest cost components of net periodic postretirement benefit expense for the year ended December 31, 2017	$	919	(719)
Effect on the health care component of the accumulated postretirement benefit obligation at December 31, 2017		15,220	(12,277)

At December 31, 2017, the fair value measurements of retirement plan assets within the fair value hierarchy are included in the table that follows.



			Fair Value Measurements Using
(Thousands of dollars)	Fair Value at December 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Domestic Plans
Equity securities:
U.S. core equity	$	67,343	67,343	–	–
U.S. small/midcap		24,544	24,544	–	–
Hedged funds and other alternative strategies		50,522	–	12,572	37,950
International commingled trust fund		83,960	–	83,960	–
Emerging market commingled equity fund		20,774	–	20,774	–
Fixed income securities:
U.S. fixed income		79,890	–	79,890	–
International commingled trust fund		13,122	–	13,122	–
Emerging market mutual fund		5,266	–	5,266	–
Cash and equivalents		5,871	5,871	–	–
Total Domestic Plans		351,292	97,758	215,584	37,950
Foreign Plans
Equity securities funds		78,666	–	78,666	–
Fixed income securities funds		103,314	–	103,314	–
Diversified pooled fund		23,665	–	23,665	–
Cash and equivalents		6,888	–	6,888	–
Total Foreign Plans		212,533	–	212,533	–
Total	$	563,825	97,758	428,117	37,950

At December 31, 2016, the fair value measurements of retirement plan assets within the fair value hierarchy are included in the table that follows.



			Fair Value Measurements Using
(Thousands of dollars)	Fair Value at December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Domestic Plans
Equity securities:
U.S. core equity	$	61,554	61,554	–	–
U.S. small/midcap		23,103	23,103	–	–
Hedged funds and other alternative strategies		48,113	–	13,999	34,114
International commingled trust fund		67,451	–	67,451	–
Emerging market commingled equity fund		16,006	–	16,006	–
Fixed income securities:
U.S. fixed income		78,473	–	78,473	–
International commingled trust fund		13,486	–	13,486	–
Emerging market mutual fund		5,775	–	5,775	–
Cash and equivalents		7,821	7,821	–	–
Total Domestic Plans		321,782	92,478	195,190	34,114
Foreign Plans
Equity securities funds		74,108	–	74,108	–
Fixed income securities funds		97,075	–	97,075	–
Diversified pooled fund		21,463	–	21,463	–
Cash and equivalents		4,929	–	4,929	–
Total Foreign Plans		197,575	–	197,575	–
Total	$	519,357	92,478	392,765	34,114



(Thousands of dollars)	Hedged Funds and Other Alternative Strategies
Total at December 31, 2015		$	33,929
Actual return on plan assets:
Relating to assets held at the reporting date			185
Relating to assets sold during the period			–
Purchases, sales and settlements			–
Total at December 31, 2016			34,114
Actual return on plan assets:
Relating to assets held at the reporting date			3,836
Relating to assets sold during the period			–
Purchases, sales and settlements			–
Total at December 31, 2017		$	37,950



	Pension Benefits			Other Postretirement Benefits
(Thousands of dollars)	2017		2016	2017	2016
Benefit obligation at December 31	$	222,483	206,502	791	615
Fair value of plan assets at December 31		212,535	197,575	–	–
Net plan liabilities recognized		9,948	8,927	791	615
Net periodic benefit expense (benefit)		194	(2,244)	133	154