XML 34 R22.htm IDEA: XBRL DOCUMENT v3.19.2
Post-retirement Plan
 6 Months Ended
Jun. 30, 2019
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]  
Post-retirement Plans
Post-retirement Plans

Our net periodic pension expense consisted of the following components:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
(In thousands)
Service cost - benefit earned during the period
 
$
1,198

 
$
1,106

 
$
2,397

 
$
2,235

Interest cost on projected benefit obligations
 
440

 
563

 
877

 
1,138

Expected return on plan assets
 
(811
)
 
(867
)
 
(1,621
)
 
(1,752
)
Amortization of loss
 
830

 
—

 
1,660

 
—

Net periodic pension expense
 
$
1,657

 
$
802

 
$
3,313

 
$
1,621



The expected long-term annual rates of return on plan assets are 5.00% and 2.2% for the PCLI and Sonneborn plans, respectively. These rates were used in measuring 2019 net periodic benefit costs.

The net periodic benefit credit of our post-retirement healthcare and other benefits plans consisted of the following components
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
(In thousands)
Service cost – benefit earned during the period
 
$
386

 
$
412

 
$
771

 
$
826

Interest cost on projected benefit obligations
 
266

 
234

 
531

 
471

Amortization of prior service credit
 
(870
)
 
(870
)
 
(1,741
)
 
(1,741
)
Amortization of gain
 
(22
)
 
—

 
(44
)
 
—

Net periodic post-retirement credit
 
$
(240
)
 
$
(224
)
 
$
(483
)
 
$
(444
)

The components, other than service cost, of our net periodic pension expense and net periodic post-retirement credit are recorded in Other, net in our consolidated statements of income.

Sonneborn has various post-retirement benefit plans for employees in the United States and in the Netherlands.
The plans for Sonneborn employees in the Netherlands include a defined benefit pension plan which was frozen and all plan participants became inactive in 2016. The plan assets are in the form of a third-party insurance contract that is valued based on the assets held by the insurer and insures a value which approximates the accrued benefits related to the plan’s accumulated benefit obligation. A new multiemployer pension plan was established in 2016, which is accounted for as a defined contribution plan. Also, in 2016, a new plan was established to provide future indexation benefits to participants who had accrued benefits under the expiring arrangements. Such benefits are funded by Sonneborn Refined Products B.V.
The plans for Sonneborn employees in the United States include a post-retirement medical plan and a multiemployer plan for union employees. These plans are accounted for as defined contribution plans.