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Employee Benefit Plans
 9 Months Ended
Sep. 30, 2014
Compensation and Retirement Disclosure [Abstract]  
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS

Components of net periodic benefit cost were as follows:
 
Three months ended September 30,
 
Nine months ended September 30,
 
2014
 
2013
 
2014
 
2013
 
(In thousands)
Pension Benefits
 
 
 
 
 
 
 
Company-administered plans:
 
 
 
 
 
 
 
Service cost
$
3,297

 
3,994

 
$
9,892

 
12,002

Interest cost
25,280

 
22,418

 
75,990

 
67,153

Expected return on plan assets
(28,900
)
 
(26,498
)
 
(86,916
)
 
(79,335
)
Amortization of:
 
 
 
 
 
 
 
Net actuarial loss
5,900

 
8,782

 
17,714

 
26,347

Prior service credit
(445
)
 
(454
)
 
(1,340
)
 
(1,363
)
 
5,132

 
8,242

 
15,340

 
24,804

Union-administered plans
3,475

 
3,388

 
7,744

 
7,418

Net periodic benefit cost
$
8,607

 
11,630

 
$
23,084

 
32,222

 
 
 
 
 
 
 
 
Company-administered plans:
 
 
 
 
 
 
 
U.S.
$
5,389

 
8,424

 
$
16,190

 
25,317

Non-U.S.
(257
)
 
(182
)
 
(850
)
 
(513
)
 
5,132

 
8,242

 
15,340

 
24,804

Union-administered plans
3,475

 
3,388

 
7,744

 
7,418

 
$
8,607

 
11,630

 
$
23,084

 
32,222

 
 
 
 
 
 
 
 
Postretirement Benefits
 
 
 
 
 
 
 
Company-administered plans:
 
 
 
 
 
 
 
Service cost
$
112

 
245

 
$
336

 
738

Interest cost
356

 
392

 
1,069

 
1,179

Amortization of:
 
 
 
 
 
 
 
Net actuarial credit
(181
)
 
(4
)
 
(544
)
 
(11
)
Prior service credit
(616
)
 
(58
)
 
(1,844
)
 
(173
)
Net periodic benefit cost
$
(329
)
 
575

 
$
(983
)
 
1,733

Company-administered plans:
 
 
 
 
 
 
 
U.S.
$
(460
)
 
402

 
$
(1,379
)
 
1,210

Non-U.S.
131

 
173

 
396

 
523

 
$
(329
)
 
575

 
$
(983
)
 
1,733



During the nine months ended September 30, 2014, we contributed $69.5 million to our pension plans. All of the contributions to the U.S. plan for 2014 were made as of September 30, 2014. In 2014, we expect total contributions to our pension plans to be approximately $75 million.

During the three and nine months ended September 30, 2014 and 2013, we recorded estimated pension settlement charges of $1.3 million ($0.8 million after tax) and $1.3 million ($0.8 million after tax), respectively, for the exit of two U.S. multi-employer pension plans withdrawal liabilities in 2014 and one plan in 2013. These charges were recorded within “Selling, general, and administrative expenses” in our Consolidated Condensed Statement of Earnings and is included in the Union-administered plans expense.




Pension Subsequent Event

We have recently taken steps to reduce the size and potential future volatility of our U.S. defined benefit pension plan obligation.  In October 2014, we offered approximately 11,000 former employees a one-time option to receive a lump sum distribution of their benefits by the end of 2014. These employees have deferred vested benefits of approximately $370 million representing 20% of our U.S. pension plan obligations. No additional funding of the pension plan is required for this transaction as all distributions will be made out of existing plan assets. The Plan's funded status is expected to remain materially unchanged as a result of this offer. We also expect to record a one-time lump sum pension charge in the fourth quarter as a result of the partial settlement of our pension plan liability. The amount of the settlement charge will be based on the proportionate amount of unrecognized U.S. actuarial net losses equal to the settled percentage of our pension benefit obligation. The ultimate amount of the charge will depend on the acceptance rate of the offer. As of September 30, 2014, the U.S. unrecognized actuarial loss was approximately $600 million before tax.