NOTE 10. 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 September 30,
	Pension						OPEB
(Dollars in thousands)	2018			2017			2018			2017
Service cost	$	2,181		$	1,688		$	99		$	3
Interest cost		4,344			4,024			391			316
Expected return on plan assets		(5,095	)		(4,601	)		—			—
Amortization of prior service cost (credit)		46			72			(2,219	)		(2,219	)
Amortization of actuarial loss		4,148			3,621			327			384
Net periodic cost (benefit)	$	5,624		$	4,804		$	(1,402	)	$	(1,516	)

	Nine Months Ended September 30,
	Pension						OPEB
(Dollars in thousands)	2018			2017			2018			2017
Service cost	$	6,272		$	5,065		$	242		$	10
Interest cost		12,648			12,072			1,091			947
Expected return on plan assets		(14,938	)		(13,805	)		—			—
Amortization of prior service cost (credit)		139			216			(6,658	)		(6,658	)
Amortization of actuarial loss		12,442			10,863			983			1,153
Net periodic cost (benefit)	$	16,563		$	14,411		$	(4,342	)	$	(4,548	)

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 September 30, 2018
(Dollars in thousands)	Pension			OPEB			Total
Balance at June 30, 2018	$	118,191		$	(2,627	)	$	115,564
Amortization of defined benefit items, net of tax:¹
Prior service credit (cost)		(34	)		1,642			1,608
Actuarial loss		(3,069	)		(242	)		(3,311	)
Total reclassification for the period		(3,103	)		1,400			(1,703	)
Balance at September 30, 2018	$	115,088		$	(1,227	)	$	113,861


	Three Months Ended September 30, 2017
(Dollars in thousands)	Pension			OPEB			Total
Balance at June 30, 2017	$	116,121		$	(6,943	)	$	109,178
Amortization of defined benefit items, net of tax:¹
Prior service credit (cost)		(44	)		1,353			1,309
Actuarial loss		(2,209	)		(234	)		(2,443	)
Total reclassification for the period		(2,253	)		1,119			(1,134	)
Balance at September 30, 2017	$	113,868		$	(5,824	)	$	108,044

	Nine Months Ended September 30, 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)		(103	)		4,927			4,824
Actuarial loss		(9,207	)		(727	)		(9,934	)
Total reclassification for the period		(9,310	)		4,200			(5,110	)
Amortization reclassified from AOCL²		23,787			(372	)		23,415
Balance at September 30, 2018	$	115,088		$	(1,227	)	$	113,861


	Nine Months Ended September 30, 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)		(132	)		4,061			3,929
Actuarial loss		(6,627	)		(703	)		(7,330	)
Total reclassification for the period		(6,759	)		3,358			(3,401	)
Balance at September 30, 2017	$	113,868		$	(5,824	)	$	108,044

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

² See Note 2: Recent Accounting Pronouncements discussing the $23.3 million reclassification from AOCL to accumulated deficit.

FUNDED STATUS OF ACQUIRED PENSION PLAN ASSETS AND ASSUMED BENEFIT OBLIGATIONS

Consistent with accounting for the merger as the acquirer in a business combination, pension assets acquired and benefit obligations assumed were remeasured to reflect their funded status as of the date of the acquisition of Deltic. See Note 3: Merger with Deltic. 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 nine months ended September 30, 2018 and 2017, we paid non-qualified supplemental pension benefits of $1.3 million and $1.2 million, and OPEB benefits of $2.6 million and $2.6 million, respectively. During the nine months ended September 30, 2018 we made qualified pension benefit contributions of $52.1 million, of which $44.0 million were voluntary contributions. The $52.1 million contributions were designated for and included as deductions on our 2017 income tax return which allowed us to deduct those amounts at a higher rate. During the nine months ended September 30, 2017 we made qualified pension benefit contributions of $5.3 million.