Defined benefit pension obligation

9 Months Ended

Sep. 30, 2017

13. 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				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Service cost	$	760	$	365	$	2,056	$	503
Interest cost		57		29		155		39
Expected return on plan assets		(43)		(23)		(116)		(31)
Amortization of prior service cost		12		—		37		—
Amortization of actuarial losses		34		—		102		—
Net periodic benefit cost	$	820	$	371	$	2,234	$	511

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 September 30, 2017 and December 31, 2016, $7.3 million and $7.1 million, respectively, of accrued pension obligation is recorded in other long term liabilities on the condensed consolidated balance sheets.