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Employee and Retiree Benefit Plans
 9 Months Ended
Sep. 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 nine-month periods ended September 30, 2016 and 2015.







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended September 30,



Pension Benefits

 

Other Postretirement Benefits

(Thousands of dollars)

 

2016

 

 

2015

 

2016

 

2015

Service cost

$

 2,610 

 

 

 5,898 

 

 

 674 

 

 

 826 

Interest cost

 

 5,913 

 

 

 8,972 

 

 

 1,109 

 

 

 1,192 

Expected return on plan assets

 

 (6,626)

 

 

 (10,471)

 

 

– 

 

 

– 

Amortization of prior service cost

 

 323 

 

 

 187 

 

 

 (21)

 

 

 (21)

Amortization of transitional asset

 

– 

 

 

 402 

 

 

 2 

 

 

 2 

Recognized actuarial loss

 

 3,617 

 

 

 3,885 

 

 

 38 

 

 

 193 

Net periodic benefit expense

$

 5,837 

 

 

 8,873 

 

 

 1,802 

 

 

 2,192 



Nine Months Ended September 30,



Pension Benefits

 

Other Postretirement Benefits

(Thousands of dollars)

 

2016

 

 

2015

 

2016

 

2015

Service cost

$

 8,533 

 

 

 15,751 

 

 

 2,022 

 

 

 2,482 

Interest cost

 

 20,386 

 

 

 24,893 

 

 

 3,324 

 

 

 3,576 

Expected return on plan assets

 

 (21,709)

 

 

 (27,882)

 

 

– 

 

 

– 

Amortization of prior service cost

 

 963 

 

 

 580 

 

 

 (62)

 

 

 (62)

Amortization of transitional asset

 

– 

 

 

 947 

 

 

 4 

 

 

 5 

Recognized actuarial loss

 

 10,864 

 

 

 11,667 

 

 

 113 

 

 

 578 



 

 19,037 

 

 

 25,956 

 

 

 5,401 

 

 

 6,579 

Special termination benefits

 

– 

 

 

 8,606 

 

 

 (19)

 

 

– 

Curtailments

 

 822 

 

 

 306 

 

 

– 

 

 

– 

Net periodic benefit expense

$

 19,859 

 

 

 34,868 

 

 

 5,382 

 

 

 6,579 



 

 

 

 

 

 

 

 

 

 

 



Curtailment expense for the nine months ended September 30, 2016 shown in the table above, relates to restructuring activities in the U.S. undertaken by the Company in the first quarter 2016.  Termination and curtailment expenses for the nine months ended September 30, 2015 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, 2016, the Company made contributions of $10.0 million to its defined benefit pension and postretirement benefit plans.  Remaining required funding in 2016 for the Company’s defined benefit pension and postretirement benefit plans is anticipated to be $2.9 million.