NOTE 7. PENSION PLANS

For a full description of our noncontributory defined benefit pension plans, including the U.S. plan acquired in 2017, refer to Note 10 of our 2017 Annual Report on Form 10-K.

The following sets forth the components of our net periodic pension costs associated with our noncontributory defined benefit pension plans ($ in millions):



	Three Months Ended						Six Months Ended
	June 29, 2018			June 30, 2017			June 29, 2018			June 30, 2017
U.S. Pension Benefits:
Interest cost	$	0.3		$	—		$	0.6		$	—
Expected return on plan assets	(0.3		)	—			(0.7		)	—
Net periodic pension cost	$	—		$	—		$	(0.1	)	$	—

Non-U.S. Pension Benefits:
Service cost	$	0.4		$	1.0		$	0.9		$	2.0
Interest cost	1.5			1.5			3.0			2.9
Expected return on plan assets	(1.8		)	(1.8		)	(3.7		)	(3.6		)
Amortization of net loss	0.9			1.1			1.8			2.2
Net curtailment and settlement loss recognized	0.6			—			0.6			—
Net periodic pension cost	$	1.6		$	1.8		$	2.6		$	3.5

On January 1, 2018, we retrospectively adopted ASU No. 2017-07, Compensation–Retirement Benefits (Topic 715). Accordingly, we have included all components of net periodic pension costs, with the exception of service costs, in other non-operating expenses as a component of non-operating income in the accompanying Consolidated Condensed Statements of Earnings. Service costs continue to be included in cost of sales and selling, general and administrative expenses in the accompanying Consolidated Condensed Statements of Earnings according to the classification of the participant’s compensation. This reclassification of prior year pension cost increased operating income by $0.8 million and $1.5 million for the three and six months ended June 30, 2017, respectively.

Employer Contributions

During 2018, our cash contribution requirements for our non-U.S. defined benefit pension plans are expected to be approximately $10 million. We do not expect to make contributions to the U.S. plan during 2018. The actual amounts to be contributed depend upon, among other things, legal requirements, underlying asset returns, the plan’s funded status, the anticipated tax deductibility of the contribution, local practices, market conditions, interest rates and other factors.