Employee and Retiree Benefit Plans

6 Months Ended

Jun. 30, 2015

Employee and Retiree Benefit Plans [Abstract]

Employee and Retiree Benefit Plans

Note G – Employee and Retiree Benefit Plans

The Company has defined benefit pension plans that are principally noncontributory and cover most full-time employees.  All pension plans are funded except for the U.S. and Canadian nonqualified supplemental plans and the U.S. directors’ plan.  All U.S. tax qualified plans meet the funding requirements of federal laws and regulations.  Contributions to foreign plans are based on local laws and tax regulations.  The Company also sponsors health care and life insurance benefit plans, which are not funded, that cover most active and retired U.S. employees.  Additionally, most U.S. retired employees are covered by a life insurance benefit plan.  The health care benefits are contributory; the life insurance benefits are noncontributory.

The table that follows provides the components of net periodic benefit expense for the three-month and six-month periods ended June 30, 2015 and 2014.

	Three Months Ended June 30,
	Pension Benefits			Other Postretirement Benefits
(Thousands of dollars)	2015		2014	2015		2014
Service cost	$	4,772	6,284		828		672
Interest cost		7,971	8,253		1,192		1,277
Expected return on plan assets		(8,724)	(8,528)		–		–
Amortization of prior service cost		198	228		(20)		(20)
Amortization of transitional asset		274	212		3		2
Recognized actuarial loss		3,891	1,733		190		59
		8,382	8,182		2,193		1,990
Special termination benefits		8,606	–		–		–
Curtailments		306	–		–		–
Net periodic benefit expense	$	17,294	8,182		2,193		1,990
	Six Months Ended June 30,
	Pension Benefits			Other Postretirement Benefits
(Thousands of dollars)		2015	2014	2015		2014
Service cost	$	9,853	12,840		1,656		1,344
Interest cost		15,921	16,468		2,384		2,555
Expected return on plan assets		(17,411)	(17,008)		–		–
Amortization of prior service cost		393	453		(41)		(41)
Amortization of transitional asset		545	420		3		3
Recognized actuarial loss		7,782	3,466		385		118
		17,083	16,639		4,387		3,979
Special termination benefits		8,606	–		–		–
Curtailments		306	–		–		–
Net periodic benefit expense	$	25,995	16,639		4,387		3,979

Termination and curtailment expenses shown in the table above relate to restructuring activities in the U.S. undertaken by the Company in the second quarter 2015.

During the six-month period ended June 30, 2015, the Company made contributions of $30.1 million to its defined benefit pension and postretirement benefit plans.  Remaining required funding in 2015 for the Company’s defined benefit pension and postretirement plans is anticipated to be $6.1million.