NOTE

- PENSION AND OTHER POSTRETIREMENT BENEFITS

The Company sponsors a defined benefit pension plan (“Plan”) covering certain domestic employees. Benefits are based on each covered employee’s years of service and compensation. The Plan is funded in conformity with the funding requirements of applicable U.S. regulations. The Plan was closed to new participants effective

January

2008.

Employees hired after this date, in eligible locations, participate in an enhanced

401

(k) plan instead of the defined benefit pension plan. Employees hired prior to this date continue to accrue benefits.

Additionally, the Company sponsors defined contribution pension plans made available to all domestic and Canadian employees. The Company funds the cost of these benefits as incurred.

The Company also sponsors a non-contributory defined benefit postretirement health care plan that provides health benefits to certain domestic and Canadian retirees and eligible spouses and dependent children. The Company funds the cost of these benefits as incurred.

The following tables present the components of net periodic benefit costs:

	Pension Benefits						Postretirement Benefits
	Three Months Ended March 31 ,						Three Months Ended March 31 ,
	2019			2018			2019			2018
Service cost	$	567		$	693		$	271		$	194
Interest cost		646			606			235			141
Expected return on plan assets		(945	)		(1,204	)		-			-
Amortization of prior service cost		-			-			(282	)		(283	)
Recognized actuarial loss (gain)		391			397			7			(103	)
Settlement loss		-			387			-			-
Net periodic benefit cost	$	659		$	879		$	231		$	(51	)

During the

three

months ended

March 31, 2018,

the Company recorded a settlement loss relating to retirees that received lump-sum distributions from the Company’s defined benefit pension plan totaling

$0.4

million. These charges were the result of lump-sum payments to retirees which exceeded the Plan’s actuarial service and interest cost thresholds.

settlement loss was incurred in the

three

months ended

March 31, 2019.