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Health Care, Pension and Other Benefits
 6 Months Ended
Jun. 30, 2018
Retirement Benefits [Abstract]  
HEALTH CARE, PENSION AND OTHER BENEFITS
HEALTH CARE, PENSION AND OTHER BENEFITS
Shown below are the components of the Company’s net periodic benefit (credit) cost for domestic defined benefit pension plans, foreign defined benefit pension plans and postretirement benefits other than pensions:
 
(Thousands of dollars)
Domestic Defined
Benefit Pension Plans
 
Foreign Defined
Benefit Pension Plans
 
Postretirement
Benefits Other than
Pensions
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Three Months Ended June 30:
 
 
 
 
 
 
 
 
 
 
 
Net periodic benefit (credit) cost:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
1,158

 
$
5,459

 
$
2,016

 
$
2,287

 
$
499

 
$
471

Interest cost
8,540

 
7,191

 
2,351

 
1,864

 
2,544

 
2,593

Expected return on assets
(14,382
)
 
(11,299
)
 
(2,685
)
 
(2,008
)
 
 
 
 
Recognition of:
 
 
 
 
 
 
 
 
 
 
 
  Unrecognized prior service cost
406

 
340

 


 


 
(1,642
)
 
(1,645
)
Unrecognized actuarial loss


 
1,662

 
383

 
(97
)
 
582

 
5

     Ongoing pension (credit) cost
(4,278
)
 
3,353

 
2,065

 
2,046

 
1,983

 
1,424

Settlements


 


 
 
 


 


 
(9,332
)
Net pension (credit) cost
$
(4,278
)
 
$
3,353

 
$
2,065

 
$
2,046

 
$
1,983

 
$
(7,908
)
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30:
 
 
 
 
 
 
 
 
 
 
 
Net periodic benefit (credit) cost:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
5,515

 
$
10,772

 
$
4,032

 
$
4,205

 
$
997

 
$
1,014

Interest cost
16,692

 
13,601

 
4,703

 
3,502

 
5,089

 
5,236

Expected return on assets
(28,816
)
 
(21,608
)
 
(5,370
)
 
(3,772
)
 
 
 
 
Recognition of:
 
 
 
 
 
 
 
 
 
 
 
  Unrecognized prior service cost
785

 
681

 
 
 
 
 
(3,284
)
 
(3,290
)
Unrecognized actuarial loss


 
3,323

 
766

 
(150
)
 
1,163

 
16

Ongoing pension (credit) cost
(5,824
)
 
6,769

 
4,131

 
3,785

 
3,965

 
2,976

Settlements and curtailments
825

 
 
 


 
 
 


 
(9,332
)
Net periodic benefit (credit) cost
$
(4,999
)
 
$
6,769

 
$
4,131

 
$
3,785

 
$
3,965

 
$
(6,356
)

Service cost is recorded in Cost of goods sold and Selling, general and administrative expenses. All other components are recorded in Other income - net. See Note 2 for information on the adoption of ASU No. 2017-07.
During the first quarter of 2018, the Company's domestic defined benefit plan was split into two separate overfunded plans: one that will continue to operate (Ongoing Plan) and one that will be terminated (Terminating Plan). The Company provided notice to participants of the Terminating Plan of the intent to terminate the plan and applied for a determination letter. The Terminating Plan was frozen as of March 31, 2018, which resulted in a curtailment expense. During the second quarter of 2018, the Terminating Plan was terminated. The Company has begun the process of winding up the Terminating Plan, which will include settling plan liabilities by offering lump sum distributions to plan participants or purchasing annuity contracts for those who either do not elect lump sums or are already receiving benefit payments. The Company's settlement obligation will depend on the nature of participant settlements and the prevailing market conditions.
The settlement gain recognized in the second quarter of 2017 relates to the termination of a life insurance benefit plan.
For further details on the Company’s health care, pension and other benefits, see Note 6 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.