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Postretirement Benefit Plans
3 Months Ended
Mar. 31, 2019
Compensation And Retirement Disclosure [Abstract]  
Postretirement Benefit Plans

10.

POSTRETIREMENT BENEFIT PLANS

Defined Benefit Pension Plans

The Company sponsors various funded qualified and unfunded non-qualified defined benefit pension plans, the most significant of which cover employees in the U.S. and U.K. locations. The U.S. and U.K. defined benefit pension plans are frozen and service benefits are no longer being accrued.

Components of Net Periodic Benefit Cost

 

 

UNITED STATES

 

 

UNITED KINGDOM

 

(In thousands)

 

Three Months Ended

March 31

 

 

Three Months Ended

March 31

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Interest cost

 

$

1,661

 

 

$

1,539

 

 

$

142

 

 

$

148

 

Expected return on plan assets

 

 

(2,361

)

 

 

(2,321

)

 

 

(201

)

 

 

(231

)

Amortization of net actuarial loss

 

 

652

 

 

 

937

 

 

 

63

 

 

 

57

 

Net periodic benefit cost

 

$

(48

)

 

$

155

 

 

$

4

 

 

$

(26

)

 

Employer Contributions

U.S. Plans

As a result of pension funding relief provisions included in the Highway and Transportation Funding Act of 2014, the Company is not required to make contributions to the funded U.S. qualified defined benefit plans. Approximately $312,000 is expected to be paid related to the unfunded non-qualified plans in 2019. Of such amount, $143,000 had been paid related to the non-qualified plans as of March 31, 2019.

U.K. Plan

The Company’s U.K. subsidiary expects to contribute approximately $476,000 to its defined benefit pension plan in 2019. Of such amount, $173,000 had been contributed to the plan as of March 31, 2019.

Defined Contribution Plans

The Company sponsors retirement savings defined contribution plans that cover eligible U.S. and U.K. employees. The Company’s U.S. retirement plans include two qualified plans, one of which is a 401(k) plan and one of which is an employee stock ownership plan, and one non-qualified supplemental executive plan. In the three months ended March 31, 2019 and 2018, the Company made profit sharing contributions into the qualified retirement plans for U.S. employees and for certain non-U.S. employees. Profit sharing contributions were determined using a formula applied to Company earnings. In 2018, profit sharing contributions for U.S. employees, who received the majority of profit sharing contributions, were made partly in cash paid to the 401(k) plan and partly in Company common stock. In 2019, profit sharing contributions were made in Company common stock. Profit sharing contributions are allocated to participant accounts on the basis of participant base earnings.

Defined contribution plan expenses for the Company’s qualified contribution plans were as follows:

(In thousands)

 

Three Months Ended

March 31

 

 

 

2019

 

 

2018

 

Retirement savings contributions

 

$

2,409

 

 

$

1,757

 

Profit sharing contributions

 

 

882

 

 

 

942

 

Total defined contribution plan expenses

 

$

3,291

 

 

$

2,699

 

 

The Company has a rabbi trust to fund the obligations of its non-qualified supplemental executive defined contribution plans (supplemental plans). The trust comprises various mutual fund investments selected by the participants of the supplemental plans. In accordance with the accounting guidance for rabbi trust arrangements, the assets of the trust and the obligations of the supplemental plans are reported on the Company’s consolidated balance sheets. The Company elected the fair value option for the mutual fund investment assets so that offsetting changes in the mutual fund values and defined contribution plan obligations would be recorded in earnings in the same period. Therefore, the mutual funds are reported at fair value with any subsequent changes in fair value recorded in the consolidated statements of income. The liabilities related to the supplemental plans increase (i.e., supplemental plan expense is recognized) when the value of the trust assets appreciates and decrease when the value of the trust assets declines (i.e., supplemental plan income is recognized). At March 31, 2019, the balance of the trust assets was $1,677,000, which equaled the balance of the supplemental plan liabilities (see the long-term investments section in Note 4 for further information regarding the Company’s mutual fund assets).