Defined Benefit Pension and Other Postretirement Benefit Plans

The Company sponsors eleven defined benefit pension plans: six in Europe, one plan in Singapore, two plans in Mexico, and with the completion of the TOKIN acquisition in April 2017, two plans in Japan. The Company funds the pension liabilities in accordance with laws and regulations applicable to those plans.

In addition, the Company maintains two frozen post-retirement benefit plans in the United States: health care and life insurance benefits for certain retired United States employees who reached retirement age while working for the Company. The health care plan is contributory, with participants’ contributions adjusted annually. The life insurance plan is non-contributory. Costs recognized for benefit plans are recorded using estimated amounts which may change as actual costs for the fiscal year are determined.

The components of net periodic benefit (income) costs relating to the Company’s pension and other postretirement benefit plans are as follows for the quarters ended June 30, 2018 and 2017 (amounts in thousands):



	Pension						Other Benefits
	Quarters Ended June 30,						Quarters Ended June 30,
	2018			2017			2018			2017
Net service cost	$	1,233		$	1,321		$	—		$	—
Interest cost	478			426			3			3
Expected return on net assets	(531		)	(505		)	—			—
Amortization:
Actuarial (gain) loss	107			90			(39		)	(47		)
Prior service cost	23			20			—			—
Total net periodic benefit (income) costs	$	1,310		$	1,352		$	(36	)	$	(44	)

All of the amounts in the table above, other than service cost, were recorded in the line item "Other (income) expense, net" in our Condensed Consolidated Statements of Operations. In fiscal year 2019, the Company expects to contribute up to $8.5 million to the pension plans, $3.4 million of which has been contributed as of June 30, 2018. For the postretirement benefit plan, the Company’s policy is to pay benefits as costs are incurred.