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Quarterly report pursuant to Section 13 or 15(d)

PENSIONS AND OTHER POSTRETIREMENT BENEFITS

v3.10.0.1
PENSIONS AND OTHER POSTRETIREMENT BENEFITS
 6 Months Ended
Jun. 30, 2018
Postemployment Benefits [Abstract] Ìý
PENSIONS AND OTHER POSTRETIREMENT BENEFITS
NOTE 9 - PENSIONS AND OTHER POSTRETIREMENT BENEFITS
We offer defined benefit pension plans, defined contribution pension plans and OPEB plans, primarily consisting of retiree healthcare benefits, to most employees in the U.S. as part of a total compensation and benefits program. The defined benefit pension plans largely are noncontributory and benefits generally are based on a minimum formula or employees’ years of service and average earnings for a defined period prior to retirement.
On January 1, 2018, we adopted the amendments to ASC 715 regarding the presentation of net periodic pension and postretirement benefit costs. We retrospectively adopted the presentation of service cost separate from the other components of net periodic costs. Service costs are classified within Cost of goods sold and operating expenses, Selling, general and administrative expenses and Miscellaneous – net while the interest cost, expected return on assets, amortization of prior service costs/credits, net actuarial gain/loss, and other costs are classified withinÌýOther non-operating income in our Statements of Unaudited Condensed Consolidated Operations.
The following are the components of defined benefit pension and OPEB costs and credits:
Defined Benefit Pension Costs
Ìý
(In Millions)
Ìý
Three Months Ended
June 30,
Ìý
Six Months Ended
June 30,
Ìý
2018
Ìý
2017
Ìý
2018
Ìý
2017
Service cost
$
4.6

Ìý
$
4.7

Ìý
$
9.3

Ìý
$
9.5

Interest cost
7.5

Ìý
7.5

Ìý
15.1

Ìý
15.0

Expected return on plan assets
(15.0
)
Ìý
(13.6
)
Ìý
(30.0
)
Ìý
(27.1
)
Amortization:
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Prior service costs
0.6

Ìý
0.7

Ìý
1.1

Ìý
1.3

Net actuarial loss
5.3

Ìý
5.3

Ìý
10.6

Ìý
10.6

Net periodic benefit cost
$
3.0

Ìý
$
4.6

Ìý
$
6.1

Ìý
$
9.3


Other Postretirement Benefits Credits
Ìý
(In Millions)
Ìý
Three Months Ended
June 30,
Ìý
Six Months Ended
June 30,
Ìý
2018
Ìý
2017
Ìý
2018
Ìý
2017
Service cost
$
0.5

Ìý
$
0.5

Ìý
$
1.0

Ìý
$
1.0

Interest cost
2.0

Ìý
2.2

Ìý
4.1

Ìý
4.3

Expected return on plan assets
(4.6
)
Ìý
(4.5
)
Ìý
(9.2
)
Ìý
(8.9
)
Amortization:
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Prior service credits
(0.7
)
Ìý
(0.8
)
Ìý
(1.5
)
Ìý
(1.5
)
Net actuarial loss
1.3

Ìý
1.3

Ìý
2.5

Ìý
2.5

Net periodic benefit credit
$
(1.5
)
Ìý
$
(1.3
)
Ìý
$
(3.1
)
Ìý
$
(2.6
)

Based on funding requirements, we made pension contributions of $3.3 million and $5.6 million for the three and six months ended JuneÌý30, 2018, respectively, compared to $2.3 million of pension contributions for the three and six months ended JuneÌý30, 2017. OPEB contributions are typically made on an annual basis in the first quarter of each year, but due to plan funding requirements being met, no OPEB contributions were required or made for the three and six months ended JuneÌý30, 2018 and 2017.