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Employee and Retiree Benefit Plans
 3 Months Ended
Mar. 31, 2016
Employee and Retiree Benefit Plans [Abstract]  
Employee and Retiree Benefit Plans

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



The table that follows provides the components of net periodic benefit expense for the three-month period ended March 31, 2015.







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended March 31,



Pension Benefits

 

Other Postretirement Benefits

(Thousands of dollars)

 

2016

 

 

2015

 

2016

 

2015

Service cost

$

 3,153 

 

 

 5,081 

 

 

 673 

 

 

 828 

Interest cost

 

 5,608 

 

 

 7,950 

 

 

 1,108 

 

 

 1,192 

Expected return on plan assets

 

 (5,385)

 

 

 (8,687)

 

 

– 

 

 

– 

Amortization of prior service cost

 

 319 

 

 

 195 

 

 

 (21)

 

 

 (21)

Amortization of transitional asset

 

– 

 

 

 271 

 

 

– 

 

 

– 

Recognized actuarial loss

 

 3,529 

 

 

 3,891 

 

 

 39 

 

 

 195 

Curtailments

 

 822 

 

 

– 

 

 

 (19)

 

 

– 

Net periodic benefit expense

$

 8,046 

 

 

 8,701 

 

 

 1,780 

 

 

 2,194 



 

 

 

 

 

 

 

 

 

 

 



Curtailment expense for the three months ended March 31, shown in the table above relate to restructuring activities in the U.S. undertaken by the Company in the first quarter 2016.  During the three-month period ended March 31, 2016, the Company made contributions of $3.5 million to its defined benefit pension and postretirement benefit plans.  Remaining required funding in 2016 for the Company’s defined benefit pension and postretirement plans is anticipated to be $10.3 million.