XML 35 R24.htm IDEA: XBRL DOCUMENT v3.19.2
Employee Benefit Plans
 6 Months Ended
Jun. 30, 2019
Defined Benefit Plan [Abstract]  
Employee Benefit Plans
16. Employee Benefit Plans

Retirement Plans

The Company sponsors qualified defined benefit pension plans covering certain employees of the Company and its subsidiaries, although the U.S. qualified and non-qualified defined benefit plans are closed to new entrants. The plans’ benefits are generally based on years of service and employee compensation. The Company also provides to certain management employees, through non-qualified plans, supplemental retirement benefits in excess of qualified plan limits imposed by federal tax law.

The tables below set forth the components of the Company’s net periodic (income) expense relating to retirement benefit plans. The service cost component is recognized within selling, general and administrative expenses and cost of goods and services, depending on the functional area of the underlying employees included in the plans, and the non-operating components of pension costs are included within other income, net in the Condensed Consolidated Statements of Earnings. The amounts recorded to discontinued operations represent the net periodic benefit expense for several non-U.S. qualified and U.S. non-qualified plans that were transferred to Apergy at the spin-off date of May 9, 2018.
Qualified Defined Benefits
 Three Months Ended June 30,  Six Months Ended June 30, 
 U.S. Plan Non-U.S. PlansU.S. Plan Non-U.S. Plans
 20192018201920182019201820192018
Service cost $1,754 $2,303 $1,291 $1,534 $3,508 $5,287 $2,836 $3,111 
Interest cost4,756 5,153 1,207 1,343 9,513 10,255 2,448 2,721 
Expected return on plan assets(8,534)(9,745)(1,608)(2,037)(17,068)(19,956)(3,126)(4,128)
Amortization:
Prior service cost (credit)76 339 (138)(111)151 426 (196)(226)
Recognized actuarial loss— 870 708 782 — 2,801 1,525 1,585 
Transition obligation— — — 1 — — — 2 
Net periodic (income) expense$(1,948)$(1,080)$1,460 $1,512 $(3,896)$(1,187)$3,487 $3,065 
Less: Discontinued operations— 273 — 73 — 950 — 247 
Net periodic (income) expense - Continuing operations$(1,948)$(1,353)$1,460 $1,439 $(3,896)$(2,137)$3,487 $2,818 

Non-Qualified Supplemental Benefits
Three Months Ended June 30,  Six Months Ended June 30, 
2019201820192018
Service cost$486 $660 $971 $1,355 
Interest cost668 808 1,335 1,701 
Amortization:
   Prior service cost703 1,351 1,406 2,314 
   Recognized actuarial gain(570)(281)(1,140)(536)
Net periodic expense$1,287 $2,538 $2,572 $4,834 
Less: Discontinued operations— 97 — 351 
Net periodic expense - Continuing operations$1,287 $2,441 $2,572 $4,483 

Post-Retirement Benefit Plans

The Company also maintains post-retirement benefit plans, although these plans are closed to new entrants. The supplemental and post-retirement benefit plans are supported by the general assets of the Company. The following table sets forth the components of the Company’s net periodic expense relating to its post-retirement benefit plans:
 Three Months Ended June 30,  Six Months Ended June 30, 
 2019201820192018
Service cost$5 $7 $10 $15 
Interest cost78 72 156 145 
Amortization:
   Prior service cost3 4 7 7 
   Recognized actuarial gain(16)(7)(35)(15)
Net periodic expense$70 $76 $138 $152 

The total amount amortized out of accumulated other comprehensive earnings into net periodic pension and post-retirement expense totaled $766 and $2,948 for the three months ended June 30, 2019 and 2018, respectively, and $1,718 and $6,358 for the six months ended June 30, 2019 and 2018, respectively.
Defined Contribution Retirement PlansThe Company also offers defined contribution retirement plans which cover the majority of its U.S. employees, as well as employees in certain other countries. The Company’s expense relating to defined contribution plans were $13,247, and $11,144 for the three months ended June 30, 2019 and 2018, respectively, and $26,153 and $24,014 for the six months ended June 30, 2019 and 2018.