NOTE 12. PENSIONS AND OTHER BENEFIT PROGRAMS

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2018			2017			2018			2017
U.S. defined-benefit plans:
Pension benefits
Service cost of benefits earned during the period	$	1.4		$	2.2		$	4.3		$	6.4
Interest cost on projected benefit obligation		11.5			12.1			34.6			37.0
Expected return on plan assets		(24.0	)		(24.7	)		(72.0	)		(74.3	)
Amortization of prior service cost		-			0.4			-			1.1
Amortization of net actuarial loss		5.0			4.3			15.0			12.8
Partial settlement		-			20.8			-			20.8
Net periodic pension (credit) cost	$	(6.1	)	$	15.1		$	(18.1	)	$	3.8
Retiree health and life insurance benefits
Service cost of benefits earned during the period	$	-		$	0.1		$	0.1		$	0.3
Interest cost on projected benefit obligation		0.6			0.7			1.9			2.2
Amortization of net actuarial gain		(1.4	)		(0.9	)		(4.2	)		(2.7	)
Net periodic postretirement (credit)	$	(0.8	)	$	(0.1	)	$	(2.2	)	$	(0.2	)

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. Net periodic pension cost for this plan was immaterial for the three and nine months ended September 30, 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 has been presented in the Condensed Consolidated Statement of Earnings within cost of goods sold and SG&A expenses for all periods presented, which are the same line items 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 Condensed Consolidated Statements of Earnings separately from the service cost component within other non-operating (income) expense, net. The following table presents the components of net periodic pension and postretirement (credits) costs within our Condensed Consolidated Statement of Earnings:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2018			2017		2018			2017

Service cost of benefits earned represented in cost of goods sold	$	0.9		$	1.4	$	2.7		$	4.0
Service cost of benefits earned represented in SG&A expenses		0.5			0.9		1.7			2.7
Other non-operating (income) expense		(8.3	)		12.7		(24.7	)		(3.1	)
Net periodic pension and postretirement (credit) cost	$	(6.9	)	$	15.0	$	(20.3	)	$	3.6

In 2017, certain participants in our U.S. defined benefit Retirement Income Plan (“RIP”) with deferred vested benefits were offered an opportunity to elect a lump sum distribution of the participant’s entire accrued benefit. These distributions resulted in a partial plan settlement necessitating a plan remeasurement as of August 31, 2017. The remeasurement of the RIP’s projected benefit obligation as of August 31, 2017 included a change to the MP-2017 mortality table assumption, issued by the Society of Actuaries in October 2017.