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## Index to Financial Statements 

The assumptions used in the measurement of the Company’s net periodic benefit cost for 2018, 2017 and 2016 are as follows: 

<img src='content_image/1023908.jpg'>

The expected return on plan assets for the various benefit plans is based upon a review of the historical returns experienced, combined with the future expected returns based upon the asset allocation strategy employed. The plans seek to achieve an adequate return to fund the obligations in a manner consistent with the federal standards of the Employee Retirement Income Security Act and with a prudent level of diversification. 

For measurement purposes, the following trend rates were assumed for 2018 and 2017: 

<img src='content_image/1023910.jpg'>

Assumed health care cost trend rates have a significant effect on the amounts for the health care plans. A one percentage point change in assumed health care cost trend rates would have the following effects: 

<img src='content_image/1023911.jpg'>

## Pension Payments and Asset Management 

In 2018, the Company contributed $12 million to its pension plans and $1 million to its other postretirement benefit plan. The Company expects to contribute $13 million to its pension and other postretirement benefit plans in 2019. 

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: 

<img src='content_image/1023912.jpg'>

The Company’s overall investment strategy is to provide an adequate pool of assets to support both the long-term growth of plan assets and to ensure adequate liquidity exists for the near-term payment of benefit obligations to participants, retirees and beneficiaries. The Benefits Administration Committee of the Company, appointed by the Compensation Committee of the Board of Directors, administers the Company’s pension plan assets. The Benefits Administration Committee believes long-term investment performance is a function of asset-class mix and restricts the composition of pension plan assets to a combination of cash and cash equivalents, domestic equity markets, international equity markets or investment grade fixed income assets. 

