Defined Benefit Plans

9 Months Ended

Sep. 30, 2019

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 are as follows (dollars in thousands):



	Pension Plans
	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Service costs	$	270		$	270		$	790		$	850
Interest costs	260			260			800			850
Expected return on plan assets	(350		)	(340		)	(1,050		)	(1,190		)
Settlement/curtailment loss	—			—			—			2,500
Amortization of net loss	140			180			430			670
Net periodic benefit cost	$	320		$	370		$	970		$	3,680

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 income (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 income (expense), net in the accompanying consolidated statement of income.

The Company contributed approximately $0.6 million and $1.6 million to its defined benefit pension plans during the three and nine months ended September 30, 2019, respectively. The Company expects to contribute approximately $1.9 million to its defined benefit pension plans for the full year 2019.