Defined benefit pension obligation

6 Months Ended

Jun. 30, 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 was as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Service cost	$	680	$	120	$	1,296	$	120
Interest cost		52		10		98		10
Expected return on plan assets		(38)		(8)		(73)		(8)
Amortization of prior service cost		13		18		25		18
Amortization of actuarial losses		34		—		68		—
Net periodic benefit cost	$	741	$	140	$	1,414	$	140

We expect to contribute a total of $2.1 million to the plans in 2017 inclusive of the amounts contributed to the plan during the current period. As of June 30, 2017, $7.4 million of accrued pension obligation is recorded in other long term liabilities on the condensed consolidated balance sheets.