17. Employee Benefit Plans

The Company provides certain pension, health care and death benefits to eligible retirees and their dependents. The funding mechanism for such benefits varies based on the country where the retiree resides and receives benefits. Eligibility for pension coverage is based on retirement qualifications. Healthcare benefits may be subject to deductibles, co-payments and other limitations. The Company reserves the right to modify benefits unless a government agency in a certain country prohibits it from doing so.

On September 20, 2018, the Manitowoc U.S. Pension Plan (“U.S. Pension Plans”) entered into a definitive agreement with an insurance company to purchase a group annuity contract to transfer $18.6 million of the Company’s outstanding pension benefit obligations related to certain U.S. retirees and beneficiaries. The transaction closed on September 27, 2018. As a result of the transaction, the insurance company will be required to pay and administer the retirement benefits owed to the 622 retirees and beneficiaries of the U.S. Pension Plan starting on December 1, 2018. There will be no change to their monthly benefit payment amounts. In connection with this transaction, the Company recognized a non-cash pension settlement charge of $4.5 million in other income (expense) primarily related to the accelerated recognition of actuarial losses included in accumulated other comprehensive loss for the U.S. Pension Plans.

Effective July 1, 2017, The Manitowoc Company, Inc. Post-65 Retiree Health Plan (the “Plan”) was amended. Eligible retirees and their spouses were provided access to a Retiree Health Exchange where they may purchase Medicare Supplement Plans, including Medicare Advantage and Medigap plan prescription drug coverage. The enrollment and payment for this coverage is facilitated by an outside third-party, and these plans have no affiliation with the Company. To assist retirees with premium and out-of-pocket expenses they incur, the Company funds a Health Reimbursement Account (“HRA”) for each enrolled retiree. The value of the HRA is based on the plan type and premium cost for each specific retiree before the Plan was amended.

The components of periodic benefit costs for the three and nine months ended September 30, 2018 and September 30, 2017 are as follows:

	Three Months Ended September 30, 2018									Nine Months Ended September 30, 2018
							Postretirement									Postretirement
	U.S.			Non-U.S.			Health and			U.S.			Non-U.S.			Health and
	Pension			Pension			Other			Pension			Pension			Other
($ in millions)	Plans			Plans			Plans			Plans			Plans			Plans
Service cost - benefits earned during the period	$	—		$	0.5		$	0.1		$	—		$	1.5		$	0.3
Interest cost of projected benefit obligations		1.3			0.5			0.2			3.9			1.5			0.6
Expected return on plan assets		(1.5	)		(0.4	)		—			(4.5	)		(1.2	)		—
Amortization of prior service cost		—			—			(0.7	)		—			—			(2.1	)
Amortization of actuarial net loss		0.8			0.4			0.2			2.4			1.2			0.6
Pension settlement charge		4.5			—			—			4.5			—			—
Net periodic benefit costs	$	5.1		$	1.0		$	(0.2	)	$	6.3		$	3.0		$	(0.6	)

	Three Months Ended September 30, 2017									Nine Months Ended September 30, 2017
							Postretirement									Postretirement
	U.S.			Non-U.S.			Health and			U.S.			Non-U.S.			Health and
	Pension			Pension			Other			Pension			Pension			Other
($ in millions)	Plans			Plans			Plans			Plans			Plans			Plans
Service cost - benefits earned during the period	$	—		$	0.4		$	0.1		$	—		$	1.3		$	0.2
Interest cost of projected benefit obligations		1.3			0.6			0.2			4.0			1.6			0.7
Expected return on plan assets		(1.2	)		(0.4	)		—			(3.7	)		(1.1	)		—
Amortization of prior service cost		—			—			(0.3	)		—			—			(1.0	)
Amortization of actuarial net loss		0.8			0.4			0.1			2.4			1.2			0.3
Net periodic benefit costs		0.9			1.0			0.1			2.7			3.0			0.2

The components of net periodic benefit cost other than the service cost component are included in the line item “other income (expense) - net” in the Condensed Consolidated Statement of Operations.