Employee and Retiree Benefit Plans

6 Months Ended

Jun. 30, 2017

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 North American full-time employees.  All pension plans are funded except for the U.S. nonqualified supplemental 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, 2017 and 2016.

	Three Months Ended June 30,
	Pension Benefits			Other Postretirement Benefits
(Thousands of dollars)		2017	2016	2017		2016
Service cost	$	2,030	2,770		424		675
Interest cost		6,287	8,865		967		1,107
Expected return on plan assets		(6,475)	(9,698)		–		–
Amortization of prior service cost (credit)		254	321		(19)		(20)
Amortization of transitional asset		–	–		–		2
Recognized actuarial loss		3,509	3,718		–		36
Net periodic benefit expense	$	5,605	5,976		1,372		1,800
	Six Months Ended June 30,
	Pension Benefits			Other Postretirement Benefits
(Thousands of dollars)		2017	2016	2017		2016
Service cost	$	4,062	5,923		849		1,348
Interest cost		13,006	14,473		1,933		2,215
Expected return on plan assets		(13,660)	(15,083)		–		–
Amortization of prior service cost (credit)		508	640		(37)		(41)
Amortization of transitional asset		–	–		–		2
Recognized actuarial loss		7,063	7,247		–		75
Curtailments		–	822		–		(19)
Net periodic benefit expense	$	10,979	14,022		2,745		3,580

During the six-month period ended June 30, 2017, the Company made contributions of $16.1 million to its defined benefit pension and postretirement benefit plans.  Remaining required funding in 2017 for the Company’s defined benefit pension and postretirement plans is anticipated to be $14.7million.Curtailment expense for the six months ended June 30, 2016, shown in the table above relate to restructuring activities in the U.S. undertaken by the Company in the first quarter 2016.