RETIREMENT AND POSTRETIREMENT BENEFIT PLANS

9 Months Ended

Sep. 30, 2015

Compensation and Retirement Disclosure [Abstract]

RETIREMENT AND POSTRETIREMENT BENEFIT PLANS

The components of total pension cost were as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Service cost	$	4,693		$	4,228		$	15,153		$	14,372
Interest cost	6,494			10,647			27,238			31,924
Expected return on plan assets	(9,003		)	(16,940		)	(40,983		)	(51,009		)
Amortization of prior service cost	(157		)	(154		)	(469		)	(461		)
Amortization of net loss	2,886			4,815			14,578			13,246
Settlement/curtailment loss	136,331			1,562			136,331			1,562
Defined benefit plans	141,244			4,158			151,848			9,634
Multi-employer plans	196			250			624			781
Defined contribution plans	1,904			2,898			7,865			8,551
Total pension cost	$	143,344		$	7,306		$	160,337		$	18,966

The Company voluntarily contributed $47,000 to its defined benefit plans in the United States during the nine months ended September 30, 2015.

In August 2015, the Lincoln Electric Company, plan sponsor of the Lincoln Electric Retirement Annuity Program ("RAP") and subsidiary of the Company, entered into an agreement to purchase a group annuity contract from The Principal Financial Group ("The Principal"). Under the agreement, The Principal assumed the obligation to pay future pension benefits for specified U.S. retirees and surviving beneficiaries who retired on or before June 1, 2015 and are currently receiving payments from the RAP. The transaction will not change the amount of the monthly pension benefit received by affected retirees and surviving beneficiaries. The purchase was funded by existing plan assets and required no additional cash contribution. The Company recorded a pension settlement charge of $136,331 for the three and nine months ended September 30, 2015, primarily related to the purchase of the group annuity contract.