Defined benefit pension obligation

3 Months Ended

Mar. 31, 2017

12. Defined benefit pension obligation

In connection with the Acquisition, we assumed a defined benefit pension plan for the former ARIAD employees. In addition, we established another defined benefit pension plan for other Incyte employees in Europe. The pension plans provide benefits to employees upon retirement, death or disability.

The net periodic benefit cost for the three months ended March 31, 2017 was as follows (in thousands):


	Three Months Ended
	March 31, 2017
Service cost	$	616
Interest cost		46
Expected return on plan assets		(35)
Amortization of prior service cost		12
Amortization of actuarial losses		34
Net periodic benefit cost	$	673

We expect to contribute a total of $2.0 million to the plans in 2017 inclusive of the amounts contributed to the plan during the current period. As of March 31, 2017, $7.2 million of accrued pension obligation is recorded in other long term liabilities on the condensed consolidated balance sheets.