Quarterly report pursuant to Section 13 or 15(d)

PENSIONS AND OTHER POSTRETIREMENT BENEFITS

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PENSIONS AND OTHER POSTRETIREMENT BENEFITS
 3 Months Ended
Mar. 31, 2018
Postemployment Benefits [Abstract]  
PENSIONS AND OTHER POSTRETIREMENT BENEFITS
NOTE 9 - 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 U.S. 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.
On January 1, 2018, we adopted the amendments to ASC 715 regarding the presentation of net periodic pension and postretirement benefit costs. We retrospectively adopted the presentation of service cost separate from the other components of net periodic costs. Service costs are classified within Cost of goods sold and operating expenses, Selling, general and administrative expenses and Miscellaneous – net while the interest cost, expected return on assets, amortization of prior service costs, net remeasurement, and other costs are classified within Other non-operating income in our Statements of Unaudited Condensed Consolidated Operations.
The following are the components of defined benefit pension and OPEB costs and credits:
Defined Benefit Pension Costs
 
(In Millions)
 
Three Months Ended
March 31,
 
2018
 
2017
Service cost
$
4.7

 
$
4.8

Interest cost
7.6

 
7.5

Expected return on plan assets
(15.0
)
 
(13.5
)
Amortization:
 
 
 
Prior service costs
0.5

 
0.6

Net actuarial loss
5.3

 
5.3

Net periodic benefit cost
$
3.1

 
$
4.7


Other Postretirement Benefits Credits
 
(In Millions)
 
Three Months Ended
March 31,
 
2018
 
2017
Service cost
$
0.5

 
$
0.5

Interest cost
2.1

 
2.1

Expected return on plan assets
(4.6
)
 
(4.4
)
Amortization:
 
 
 
Prior service credits
(0.8
)
 
(0.7
)
Net actuarial loss
1.2

 
1.2

Net periodic benefit credit
$
(1.6
)
 
$
(1.3
)

Based on funding requirements, we made pension contributions of $2.3 million for the three months ended March 31, 2018, compared to no pension contributions for the three months ended March 31, 2017. 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 months ended March 31, 2018 and March 31, 2017.