Pensions and Other Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2020

Retirement Benefits [Abstract]

Pensions and Other Postretirement Benefit Plans

Pensions and Other Postretirement Benefit Plans

Pension Plans

The Company has defined benefit pension plans covering certain U.S. and non-U.S. employees. The U.S. qualified defined benefit pension plan has been closed to new participants since October 1998, and benefits accrued under this plan have been frozen since February 2009. As a result of the freeze, employees covered by the pension plan will receive, at retirement, benefits already accrued through February 2009 but no new benefits accrue after that date. Benefit accruals under the U.S. Supplemental Executive Retirement Plan ("SERP") were similarly frozen. The eligibility, benefit formulas, and contribution requirements for plans outside of the U.S. vary by location.

Other Postretirement Benefits

The Company also provides certain postretirement benefits to retired employees in the U.S. and Canada. The Company accrues the cost of providing postretirement benefits during the active service period of the employees. The Company currently funds the plans as claims are paid.

The composition of the net periodic benefit cost for the six months ended June 30, 2020 and 2019, was as follows:

	Pension plans				Other postretirement benefits
(in thousands)	2020		2019		2020		2019
Components of net periodic benefit cost:
Service cost	$	1,148	$	1,261	$	100	$	95
Interest cost	3,071		3,578		857		1,057
Expected return on assets	(3,415)		(4,102)		—		—
Settlement cost	145		—		—		—
Curtailment cost	233		—		—		—
Amortization of prior service cost/(credit)	16		34		(2,244)		(2,244)
Amortization of net actuarial loss	1,180		1,125		1,296		1,114
Net periodic benefit cost	$	2,378	$	1,896	$	9	$	22

The amount of net periodic pension cost is determined at the beginning of each year and generally only varies from quarter to quarter when a significant event occurs, such as a curtailment or a settlement. In the second quarter of 2020, the Company recorded expense of $0.4 million related to curtailments and settlements.

Service cost for defined benefit pension and postretirement plans are reported in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. Other components of net periodic benefit cost are presented in the income statement separately from the service cost component and outside a subtotal of income from operations, in the line item Other (income)/expense, net in the Consolidated Statements of Income.