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Employee and Retiree Benefit Plans
 6 Months Ended
Jun. 30, 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.



The table that follows provides the components of net periodic benefit expense for the three-month and six-month periods ended June 30, 2016 and 2015.







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended June 30,



Pension Benefits

 

Other Postretirement Benefits

(Thousands of dollars)

 

2016

 

 

2015

 

2016

 

2015

Service cost

$

 2,770 

 

 

 4,772 

 

 

 675 

 

 

 828 

Interest cost

 

 8,865 

 

 

 7,971 

 

 

 1,107 

 

 

 1,192 

Expected return on plan assets

 

 (9,698)

 

 

 (8,724)

 

 

– 

 

 

– 

Amortization of prior service cost

 

 321 

 

 

 198 

 

 

 (20)

 

 

 (20)

Amortization of transitional asset

 

– 

 

 

 274 

 

 

 2 

 

 

 3 

Recognized actuarial loss

 

 3,718 

 

 

 3,891 

 

 

 36 

 

 

 190 



 

 5,976 

 

 

 8,382 

 

 

 1,800 

 

 

 2,193 

Special termination benefits

 

– 

 

 

 8,606 

 

 

– 

 

 

– 

Curtailments

 

– 

 

 

 306 

 

 

– 

 

 

– 

Net periodic benefit expense

$

 5,976 

 

 

 17,294 

 

 

 1,800 

 

 

 2,193 



Six Months Ended June 30,



Pension Benefits

 

Other Postretirement Benefits

(Thousands of dollars)

 

2016

 

 

2015

 

2016

 

2015

Service cost

$

 5,923 

 

 

 9,853 

 

 

 1,348 

 

 

 1,656 

Interest cost

 

 14,473 

 

 

 15,921 

 

 

 2,215 

 

 

 2,384 

Expected return on plan assets

 

 (15,083)

 

 

 (17,411)

 

 

– 

 

 

– 

Amortization of prior service cost

 

 640 

 

 

 393 

 

 

 (41)

 

 

 (41)

Amortization of transitional asset

 

– 

 

 

 545 

 

 

 2 

 

 

 3 

Recognized actuarial loss

 

 7,247 

 

 

 7,782 

 

 

 75 

 

 

 385 



 

 13,200 

 

 

 17,083 

 

 

 3,599 

 

 

 4,387 

Special termination benefits

 

– 

 

 

 8,606 

 

 

– 

 

 

– 

Curtailments

 

 822 

 

 

 306 

 

 

 (19)

 

 

– 

Net periodic benefit expense

$

 14,022 

 

 

 25,995 

 

 

 3,580 

 

 

 4,387 



 

 

 

 

 

 

 

 

 

 

 



Curtailment expense for the six months ended June 30, shown in the table above, relates to restructuring activities in the U.S. undertaken by the Company in the first quarter 2016.  During the six-month period ended June 30, 2016, the Company made contributions of $6.7 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 $6.3 million.