Employee Benefit Plans

The Company maintains a non-contributory defined benefit pension plan that covers substantially all U.S. employees who were employed at December 31, 2011. After that date, no further benefits are being accrued in this plan. For the frozen pension plan, benefits are based primarily on years of service and, for certain plans, levels of compensation. The Company has taken steps towards terminating the pension plan and expects the termination to be finalized in the third quarter of 2018. The ultimate settlement obligation will depend upon the nature and timing of participant settlements at prevailing market conditions. During the three months ended June 30, 2018, in connection with the Company's ongoing activities to terminate the plan, lump-sum distributions to participants of the Plan exceeded the service and interest components of net periodic pension cost. As a result, the company recorded a pre-tax settlement charge of $8.2 million during the second quarter of 2018 due for the most part to the initial transfer of pension funds to individuals who elected to rollover their accounts or transfer them to their plan.

The Company also maintains supplemental non-qualified plans for certain officers and other key employees, and an Employee Savings and Stock Option Plan (“ESSOP”) for the majority of the U.S. employees.

The Company additionally has a postretirement healthcare benefit plan that provides medical benefits for certain U.S. retirees and eligible dependents hired prior to November 1, 2004. Employees are eligible to receive postretirement healthcare benefits upon meeting certain age and service requirements. No employees hired after October 31, 2004 are eligible to receive these benefits. This plan requires employee contributions to offset benefit costs.

The following table sets forth the components of net periodic benefit (income) cost for the three months ended June 30, 2018 and 2017 based on December 31, 2017 and 2016 actuarial measurement dates, respectively:



	Defined pension plan benefits						Other postretirement benefits
(In thousands)	2018			2017			2018			2017
Service cost (income) – benefits earned during the year	$	41		$	(11	)	$	28		$	28
Interest cost on projected benefit obligations	222			469			47			66
Expected return on plan assets	(591		)	(396		)	—			—
Amortization of prior service cost	—			—			—			(7		)
Amortization of net loss (benefit)	201			141			(15		)	(24		)
Settlement expense	8,168			—			—			—
Net periodic benefit cost	$	8,041		$	203		$	60		$	63

The following table sets forth the components of net periodic benefit cost for the six months ended June 30, 2018 and 2017 based on December 31, 2017 and 2016 actuarial measurement dates, respectively:



	Defined pension plan benefits						Other postretirement benefits
(In thousands)	2018			2017			2018			2017
Service cost – benefits earned during the year	$	70		$	13		$	62		$	63
Interest cost on projected benefit obligations	317			787			95			117
Expected return on plan assets	(835		)	(798		)	—			—
Amortization of prior service cost	—			—			(7		)	(13		)
Amortization of net loss (benefit)	289			276			(15		)	(24		)
Settlement expense	8,168			—			—			—
Net periodic benefit cost	$	8,009		$	278		$	135		$	143

The Company disclosed in its financial statements for the year ended December 31, 2017 that it was not required to make a minimum contribution to the defined benefit pension plan for the 2018 calendar year. The Company made a $1.6 million payment in June 2018 related to the 2017 plan year. The Company believes that no additional contributions will be required during 2018 as it will be terminated prior to the end of 2018.

The Company also disclosed in its financial statements for the year ended December 31, 2017 that it estimated it would pay $0.4 million in other postretirement benefits in 2018 based on actuarial estimates. As of June 30, 2018, $142,000 of such benefits have been paid. The Company continues to believe that its estimated payments for the full year are reasonable. However, such estimates contain inherent uncertainties because cash payments can vary significantly depending on the timing of postretirement medical claims and the collection of the retirees’ portion of certain costs. Note that the amount of benefits paid in calendar year 2018 will not impact the expense for postretirement benefits for 2018.