Employee and Retiree Benefit Plans

9 Months Ended

Sep. 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.

Note G – Employee and Retiree Benefit Plans (Contd.)

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

	Three Months Ended September 30,
	Pension Benefits			Other Postretirement Benefits
(Thousands of dollars)		2015	2014	2015		2014
Service cost	$	5,898	6,208		826		672
Interest cost		8,972	8,239		1,192		1,278
Expected return on plan assets		(10,471)	(8,506)		–		–
Amortization of prior service cost		187	227		(21)		(20)
Amortization of transitional asset		402	208		2		1
Recognized actuarial loss		3,885	1,735		193		59
Net periodic benefit expense	$	8,873	8,111		2,192		1,990
	Nine Months Ended September 30,
	Pension Benefits			Other Postretirement Benefits
(Thousands of dollars)		2015	2014	2015		2014
Service cost	$	15,751	19,048		2,482		2,016
Interest cost		24,893	24,707		3,576		3,833
Expected return on plan assets		(27,882)	(25,514)		–		–
Amortization of prior service cost		580	680		(62)		(61)
Amortization of transitional asset		947	628		5		4
Recognized actuarial loss		11,667	5,201		578		177
		25,956	24,750		6,579		5,969
Special termination benefits		8,606	–		–		–
Curtailments		306	–		–		–
Net periodic benefit expense	$	34,868	24,750		6,579		5,969

Termination and curtailment expenses for the nine months ended September 30, shown in the table above relate to restructuring activities in the U.S. undertaken by the Company in the second quarter 2015.

During the nine-month period ended September 30, 2015, the Company made contributions of $33.8 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 $2.4 million.