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 September 30:
Net periodic benefit (credit) cost:
Service cost	$	1,158		$	5,356		$	2,016		$	2,050		$	499		$	524
Interest cost	8,541			8,734			2,352			2,242			2,545			2,755
Expected return on assets	(14,383		)	(13,351		)	(2,685		)	(2,488		)
Recognition of:
Unrecognized prior service cost	407			341									(1,643		)	(1,645		)
Unrecognized actuarial loss				1,334			383			474			581			8
Net periodic benefit (credit) cost	$	(4,277	)	$	2,414		$	2,066		$	2,278		$	1,982		$	1,642

Nine Months Ended September 30:
Net periodic benefit (credit) cost:
Service cost	$	6,673		$	16,128		$	6,048		$	6,255		$	1,496		$	1,538
Interest cost	25,233			22,335			7,055			5,744			7,634			7,991
Expected return on assets	(43,199		)	(34,959		)	(8,055		)	(6,260		)
Recognition of:
Unrecognized prior service cost	1,192			1,022									(4,927		)	(4,935		)
Unrecognized actuarial loss				4,657			1,149			324			1,744			24
Ongoing pension (credit) cost	(10,101		)	9,183			6,197			6,063			5,947			4,618
Settlements and curtailments	825															(9,332		)
Net periodic benefit (credit) cost	$	(9,276	)	$	9,183		$	6,197		$	6,063		$	5,947		$	(4,714	)

Service cost is recorded in Cost of goods sold and Selling, general and administrative expenses. All other components are recorded in Other expense (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 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 expects to settle the related liabilities through a combination of (i) lump sum payments to eligible participants who elect to receive them and (ii) the purchase of annuity contracts for participants who either do not elect lump sums or are already receiving benefit payments. The lump sum payments are expected to be paid in December 2018, and the annuity contracts are expected to be purchased in 2019. The Company's settlement obligation will depend on the nature of participant settlements and the prevailing market conditions. The Company currently expects the total settlement charge to be between $41 million and $61 million, with approximately $20 million to be recognized during the fourth quarter of 2018 and the remainder to be recognized in 2019. It is possible the Company could ultimately incur settlement charges outside of this estimated range as a result of unforeseen changes in prevailing market conditions. The Company will use any remaining overfunded cash surplus balances to fund replacement plan contributions.

The settlement gain recognized in the nine months ended September 30, 2017 relates to the termination of a life insurance benefit plan during the second quarter of 2017.

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.