Defined Benefit Plans

Net periodic pension benefit costs for the Company's defined benefit pension plans cover certain foreign employees, union hourly employees and salaried employees. The components of net periodic pension cost for the three and six months ended June 30, 2018 and 2017 are as follows (dollars in thousands):



	Pension Plans
	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
Service costs	$	280		$	270		$	580		$	550
Interest costs	290			320			590			640
Expected return on plan assets	(420		)	(360		)	(850		)	(730		)
Settlement/curtailment loss	2,500			—			2,500			—
Amortization of net loss	240			250			490			500
Net periodic benefit cost	$	2,890		$	480		$	3,310		$	960

The service cost component of net periodic benefit cost is recorded in cost of goods sold and selling, general and administrative expenses, while non-service cost components are recorded in other expense, net in the accompanying consolidated statement of income.

During the second quarter of 2018, the Company purchased an annuity contract to transfer certain retiree defined benefit obligations to an insurance company. The annuity contract was funded by plan assets. The Company recognized a one-time settlement charge of approximately $2.5 million, which is included in other expense, net in the accompanying consolidated statement of income.

The Company contributed approximately $0.6 million and $1.2 million to its defined benefit pension plans during the three and six months ended June 30, 2018, respectively. The Company expects to contribute approximately $2.3 million to its defined benefit pension plans for the full year 2018.