Quarterly report pursuant to Section 13 or 15(d)

PENSIONS AND OTHER POSTRETIREMENT BENEFITS

v3.7.0.1
PENSIONS AND OTHER POSTRETIREMENT BENEFITS
 6 Months Ended
Jun. 30, 2017
Postemployment Benefits [Abstract]  
PENSIONS AND OTHER POSTRETIREMENT BENEFITS
NOTE 7 - 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 United States as part of a total compensation and benefits program. We do not have employee retirement benefit obligations at our Asia Pacific Iron Ore operations. 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.
The following are the components of defined benefit pension and OPEB costs and credits for the three and six months ended June 30, 2017 and 2016:
Defined Benefit Pension Costs
 
(In Millions)
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2017
 
2016
 
2017
 
2016
Service cost
$
4.7

 
$
4.5

 
$
9.5

 
$
9.0

Interest cost
7.5

 
7.5

 
15.0

 
14.9

Expected return on plan assets
(13.6
)
 
(13.7
)
 
(27.1
)
 
(27.4
)
Amortization:
 
 
 
 
 
 
 
Prior service costs
0.7

 
0.5

 
1.3

 
1.1

Net actuarial loss
5.3

 
5.3

 
10.6

 
10.5

Net periodic benefit cost
$
4.6

 
$
4.1

 
$
9.3

 
$
8.1


Other Postretirement Benefits Credit
 
(In Millions)
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2017
 
2016
 
2017
 
2016
Service cost
$
0.5

 
$
0.4

 
$
1.0

 
$
0.9

Interest cost
2.2

 
2.3

 
4.3

 
4.5

Expected return on plan assets
(4.5
)
 
(4.3
)
 
(8.9
)
 
(8.5
)
Amortization:
 
 
 
 
 
 
 
Prior service credits
(0.8
)
 
(0.9
)
 
(1.5
)
 
(1.8
)
Net actuarial loss
1.3

 
1.4

 
2.5

 
2.8

Net periodic benefit credit
$
(1.3
)
 
$
(1.1
)
 
$
(2.6
)
 
$
(2.1
)

We made pension contributions of $2.3 million for the three and six months ended June 30, 2017. We made no contributions for the three months ended June 30, 2016 and $0.3 million for the six months ended June 30, 2016. 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 June 30, 2017 and June 30, 2016.