NOTE 11. PENSIONS AND OTHER BENEFIT PROGRAMS

Following are the components of net periodic benefit costs (credits):

	Three Months Ended
	March 31,
	2018			2017
U.S. defined-benefit plans:
Pension benefits
Service cost of benefits earned during the period	$	1.4		$	2.1
Interest cost on projected benefit obligation		11.5			12.5
Expected return on plan assets		(24.0	)		(24.8	)
Amortization of prior service cost		-			0.4
Amortization of net actuarial loss		5.0			4.2
Net periodic pension (credit)	$	(6.1	)	$	(5.6	)
Retiree health and life insurance benefits
Service cost of benefits earned during the period	$	-		$	0.1
Interest cost on projected benefit obligation		0.6			0.7
Amortization of prior service credit		-			-
Amortization of net actuarial gain		(1.4	)		(0.9	)
Net periodic postretirement (credit)	$	(0.8	)	$	(0.1	)

We also have an unfunded non-U.S. defined benefit pension plan in Germany, which will not be acquired by Knauf in connection with the announced sale of our EMEA and Pacific Rim segments that is reported as a component of our Unallocated Corporate segment. The income statement impact of this plan was immaterial in the first quarters of 2018 and 2017.

As required by ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” the service cost component of net benefit cost is represented as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are presented in the income statement separately from the service cost component and outside a subtotal of income from operations. For the first quarter of 2018 as part of operating expenses, $0.9 million of service cost is represented in cost of goods sold and $0.5 million in SG&A expenses. The remaining $8.3 million of net periodic credits are recorded in other non-operating income, net on the Condensed Consolidated Statement of Earnings. For the first quarter of 2017, $1.3 million of service cost is represented in cost of goods sold, $0.9 million of service cost is represented in SG&A expenses. The remaining $7.9 million of net periodic credits, are recorded in other non-operating income, net on the Condensed Consolidated Statement of Earnings.