Employee and Retiree Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2018



	Pension Benefits			Other Postretirement Benefits
(Thousands of dollars)	2018		2017	2018	2017
Change in benefit obligation
Obligation at January 1	$	881,932	815,593	106,276	106,679
Service cost		8,994	8,279	1,965	1,601
Interest cost		26,168	27,047	3,427	3,444
Participant contributions		–	–	2,104	2,075
Actuarial loss (gain)		(57,378)	60,855	(13,778)	(3,077)
Medicare Part D subsidy		–	–	325	318
Exchange rate changes		(12,742)	18,751	(67)	46
Benefits paid		(41,132)	(39,910)	(5,473)	(4,810)
Prior Service Cost		737	–	–	–
Other		(28,934)	(8,683)	–	–
Obligation at December 31		777,645	881,932	94,779	106,276
Change in plan assets
Fair value of plan assets at January 1		563,825	519,357	–	–
Actual return on plan assets		(18,951)	50,079	–	–
Employer contributions		24,357	24,918	3,044	2,417
Participant contributions		–	–	2,104	2,075
Medicare Part D subsidy		–	–	325	318
Exchange rate changes		(12,071)	18,064	–	–
Benefits paid		(41,132)	(39,910)	(5,473)	(4,810)
Other		(28,934)	(8,683)	–	–
Fair value of plan assets at December 31		487,094	563,825	–	–
Funded status and amounts recognized in the Consolidated Balance Sheets at December 31
Deferred charges and other assets		11,039	5,905	–	–
Other accrued liabilities		(9,175)	(8,856)	(5,101)	(5,392)
Deferred credits and other liabilities		(292,415)	(315,156)	(89,678)	(100,884)
Funded status and net plan liability recognized at December 31	$	(290,551)	(318,107)	(94,779)	(106,276)



(Thousands of dollars)	Pension Benefits		Other Postretirement Benefits
Net actuarial loss	$	(239,030)	13,969
Prior service (cost) credit		(5,568)	–
	$	(244,598)	13,969



(Thousands of dollars)	Pension Benefits		Other Postretirement Benefits
Net actuarial loss	$	(14,117)	(391)
Prior service (cost) credit		(956)	–
	$	(15,073)	(391)



	Projected Benefit Obligations			Accumulated Benefit Obligations		Fair Value of Plan Assets
(Thousands of dollars)	2018		2017	2018	2017	2018	2017
Funded qualified plans where accumulated benefit obligation exceeds fair value of plan assets	$	457,446	691,923	447,793	640,230	316,543	540,161
Unfunded nonqualified and directors' plans where accumulated benefit obligation exceeds fair value of plan assets		158,228	172,364	150,586	163,319	–	–
Unfunded other postretirement plans		94,808	106,276	94,808	106,276	–	–


	Pension Benefits				Other Postretirement Benefits
(Thousands of dollars)		2018	2017	2016	2018	2017	2016
Service cost	$	8,994	8,279	8,136	1,965	1,601	1,864
Interest cost		26,168	27,047	25,185	3,427	3,444	3,800
Expected return on plan assets		(29,236)	(28,941)	(28,154)	–	–	–
Amortization of prior service cost (credit)		1,021	1,026	1,204	(38)	(74)	(75)
Amortization of transitional (asset) liability		–	–	–	–	–	–
Recognized actuarial loss		21,893	16,691	16,165	–	–	5
		28,840	24,102	22,536	5,354	4,971	5,594
Termination benefits expense		–	–	–	–	–	–
Curtailment expense		–	–	822	–	–	(19)
Net periodic benefit expense	$	28,840	24,102	23,358	5,354	4,971	5,575



	Benefit Obligations				Net Periodic Benefit Expense
	Pension Benefits		Other Postretirement Benefits		Pension Benefits		Other Postretirement Benefits
	December 31		December 31		Year		Year
	2018	2017	2018	2017	2018	2017	2018	2017
Discount rate	4.07%	3.42%	3.73%	3.73%	3.54%	3.66%	4.32%	4.33%
Expected return on plan assets	5.37%	5.64%	–	–	5.37%	5.64%	–	–
Rate of compensation increase	3.28%	3.52%	–	–	3.52%	3.52%	–	–



(Thousands of dollars)	Pension Benefits		Other Postretirement Benefits
2018	$	37,266	5,754
2019		37,565	5,839
2020		38,606	5,994
2021		39,660	6,130
2022		39,908	6,171
2023-2027		207,633	32,109



(Thousands of dollars)	1% Increase		1% Decrease
Effect on total service and interest cost components of net periodic postretirement benefit expense for the year ended December 31, 2018	$	1,049	(813)
Effect on the health care component of the accumulated postretirement benefit obligation at December 31, 2018		12,656	(10,350)

At December 31, 2018, the fair value measurements of retirement plan assets within the fair value hierarchy are included in the table that follows.



			Fair Value Measurements Using
(Thousands of dollars)	Fair Value at December 31, 2018		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Domestic Plans
Equity securities:
U.S. core equity	$	62,105	62,105	–	–
U.S. small/midcap		19,436	19,436	–	–
Hedged funds and other alternative strategies		45,844	–	10,789	35,055
International commingled trust fund		63,089	–	63,089	–
Emerging market commingled equity fund		15,355	–	15,355	–
Fixed income securities:
U.S. fixed income		87,526	–	87,526	–
International commingled trust fund		13,274	–	13,274	–
Emerging market mutual fund		4,570	–	4,570	–
Cash and equivalents		5,344	5,344	–	–
Total Domestic Plans		316,543	86,885	194,603	35,055
Foreign Plans
Equity securities funds		67,165	–	67,165	–
Fixed income securities funds		89,417	–	89,417	–
Diversified pooled fund		10,762	–	10,762	–
Cash and equivalents		3,207	–	3,207	–
Total Foreign Plans		170,551	–	170,551	–
Total	$	487,094	86,885	365,154	35,055

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

At December 31, 2017, the fair value measurements of retirement plan assets within the fair value hierarchy are included in the table that follows.



			Fair Value Measurements Using
(Thousands of dollars)	Fair Value at December 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Domestic Plans
Equity securities:
U.S. core equity	$	67,343	67,343	–	–
U.S. small/midcap		24,544	24,544	–	–
Hedged funds and other alternative strategies		50,522	–	12,572	37,950
International commingled trust fund		83,960	–	83,960	–
Emerging market commingled equity fund		20,774	–	20,774	–
Fixed income securities:
U.S. fixed income		79,890	–	79,890	–
International commingled trust fund		13,122	–	13,122	–
Emerging market mutual fund		5,266	–	5,266	–
Cash and equivalents		5,871	5,871	–	–
Total Domestic Plans		351,292	97,758	215,584	37,950
Foreign Plans
Equity securities funds		78,666	–	78,666	–
Fixed income securities funds		103,314	–	103,314	–
Diversified pooled fund		23,665	–	23,665	–
Cash and equivalents		6,888	–	6,888	–
Total Foreign Plans		212,533	–	212,533	–
Total	$	563,825	97,758	428,117	37,950



(Thousands of dollars)	Hedged Funds and Other Alternative Strategies
Total at December 31, 2016		$	34,114
Actual return on plan assets:
Relating to assets held at the reporting date			3,836
Relating to assets sold during the period			–
Purchases, sales and settlements			–
Total at December 31, 2017			37,950
Actual return on plan assets:
Relating to assets held at the reporting date			(2,921)
Relating to assets sold during the period			–
Purchases, sales and settlements			–
Total at December 31, 2018		$	35,029



	Pension Benefits			Other Postretirement Benefits
(Thousands of dollars)	2018		2017	2018	2017
Benefit obligation at December 31	$	173,860	222,483	812	791
Fair value of plan assets at December 31		170,551	212,535	–	–
Net plan liabilities recognized		3,309	9,948	812	791
Net periodic benefit expense (benefit)		3,983	194	146	133