Pension and Postretirement Benefits

6 Months Ended

Jun. 30, 2019

General Discussion Of Pension And Other Postretirement Benefits [Abstract]

Pension And Other Postretirement Benefits Disclosure [Text Block]

Note 8 – Pension and Other Postretirement Benefits

The components of net periodic benefit cost for the three and six months ended June 30, 2019 and 2018 are as follows:

	Three Months Ended June 30,								Six Months Ended June 30,
					Other								Other
					Postretirement								Postretirement
	Pension Benefits				Benefits				Pension Benefits				Benefits
		2019		2018		2019		2018		2019		2018		2019		2018
Service cost	$	978	$	960	$	2	$	3	$	1,963	$	1,948	$	4	$	5
Interest cost		1,105		1,032		36		33		2,216		2,081		71		66
Expected return on plan assets		(978)		(1,274)		—		—		(1,962)		(2,564)		—		—
Actuarial loss amortization		773		793		—		14		1,549		1,593		—		29
Prior service cost amortization		(41)		(29)		—		—		(83)		(60)		—		—
Net periodic benefit cost	$	1,837	$	1,482	$	38	$	50	$	3,683	$	2,998	$	75	$	100

The Company previously disclosed in its Annual Report filed on Form 10-K and 10-K/A for the year ended December 31, 2018 that the Company began the process of terminating the Company’s primary non-contributory U.S. pension plan (the “U.S. Pension Plan”) during the fourth quarter of 2018. As part of this process, and considering the fully funded status of the U.S. Pension Plan, the asset allocation of the U.S. Pension Plan was adjusted modeling a glide path that is more heavily allocated to fixed income securities with lengthened durations to match the projected liabilities. As a result, the expected return on plan assets declined during the three and six months ended June 30, 2019 compared to the three and six months ended June 30, 2018. In order to terminate the U.S. Pension Plan in accordance with Internal Revenue Service and Pension Benefit Guaranty Corporation requirements, the Company will be required to fully fund the U.S. Pension Plan on a termination basis and will commit to contribute additional assets if necessary, to do so. The amount necessary to do so is not yet known but is currently estimated to be between $0 and $10 million. In addition, the Company expects to record a non-cash pension settlement charge at plan termination. This settlement charge will include the

immediate recognition into expense of the related unrecognized losses within AOCI on the balance sheet as of the plan termination date. The Company does not have a current estimate for this future settlement charge, however, the gross AOCI related to the U.S. Pension Plan was approximately $19 million as of June 30, 2019. The Company currently estimates that the U.S. Pension Plan termination will be completed during 2020.

Employer Contributions

The Company previously disclosed in its Annual Report filed on Form 10-K and 10-K/A for the year ended December 31, 2018 that it expected to make minimum cash contributions of $5.2 million to its pension plans and approximately $0.4 million to its other postretirement benefit plans in 2019. As of June 30, 2019, $3.3 million and $0.2 million of contributions have been made to the Company’s pension plans and its postretirement benefit plans, respectively.