NOTE 11. PENSION AND OTHER POSTRETIREMENT EMPLOYEE BENEFITS

The following tables detail the components of net periodic cost (benefit) of our pension plans and other postretirement employee benefits (OPEB):

	Three Months Ended March 31,
	Pension						OPEB
(Dollars in thousands)	2018			2017			2018			2017
Service cost	$	1,913		$	1,862		$	44		$	3
Interest cost		3,914			4,081			319			321
Expected return on plan assets		(4,708	)		(4,603	)		—			—
Amortization of prior service cost (credit)		46			72			(2,219	)		(2,219	)
Amortization of actuarial loss		4,150			3,856			355			398
Net periodic cost (benefit)	$	5,315		$	5,268		$	(1,501	)	$	(1,497	)

The following tables detail the pension and OPEB changes in accumulated other comprehensive loss on our Condensed Consolidated Balance Sheets, net of tax:

	Three Months Ended March 31, 2018
(Dollars in thousands)	Pension			OPEB			Total
Balance at December 31, 2017	$	100,611		$	(5,055	)	$	95,556
Amortization of defined benefit items, net of tax:¹
Prior service credit (cost)		(34	)		1,642			1,608
Actuarial loss		(3,071	)		(262	)		(3,333	)
Total reclassification for the period		(3,105	)		1,380			(1,725	)
Amounts reclassified from AOCL		23,787			(372	)		23,415
Balance at March 31, 2018	$	121,293		$	(4,047	)	$	117,246

	Three Months Ended March 31, 2017
(Dollars in thousands)	Pension			OPEB			Total
Balance at December 31, 2016	$	120,627		$	(9,182	)	$	111,445
Amortization of defined benefit items, net of tax:¹
Prior service credit (cost)		(44	)		1,354			1,310
Actuarial loss		(2,352	)		(243	)		(2,595	)
Total reclassification for the period		(2,396	)		1,111			(1,285	)
Balance at March 1, 2017	$	118,231		$	(8,071	)	$	110,160

¹	Amortization of prior service credit (cost) and amortization of actuarial loss are included in the computation of net periodic cost (benefit).

See Note 2: Recent Accounting Pronouncements discussing the $23.4 million reclassification from AOCL to accumulated deficit.

FUNDED STATUS OF AQUIRED PENSION PLAN ASSETS AND ASSUMED BENEFIT OBLIGATIONS

Consistent with accounting for the merger as the acquirer in a business combination (see Note 3: Merger with Deltic), pension assets acquired and benefit obligations assumed were remeasured to reflect their funded status as of the date of the acquisition. This included updating asset values and updating discount rates to reflect market conditions as of the date of the merger. The funded status of plan assets and the benefit obligations as of February 20, 2018 were as follows:

•

$38.7 million qualified pension plan assets

•

$62.0 million qualified and non-qualified pension plan projected benefit obligation

•

$13.5 million OPEB accumulated benefit obligation

FUNDING AND BENEFIT PAYMENTS

During the three months ended March 31, 2018 and 2017, we paid non-qualified supplemental pension benefits of $0.5 million and $0.4 million and OPEB benefits of $0.6 million and $0.6 million, respectively. We also made qualified pension benefit contributions of $8.1 million during the first quarter of 2018.