U.K. Pension Plan (Notes)

9 Months Ended

Sep. 30, 2016

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

U.K. PENSION PLAN:

In connection with the acquisition of Freightliner, the Company assumed a defined benefit pension plan for its U.K. employees through a standalone shared cost arrangement within the Railways Pension Scheme (Pension Program). The Pension Program is managed and administered by a professional pension administration company and is overseen by trustees with professional advice from independent actuaries and other advisers. The Pension Program is a shared cost arrangement with required contributions shared between Freightliner and its employees, with Freightliner contributing 60% and the remaining 40% contributed by active employees. The Company engages independent actuaries to compute the amounts of liabilities and expenses relating to the Pension Program subject to the assumptions that the Company selects.

The following tables summarize the components of the Pension Program related to the net benefit costs recognized in labor and benefits in the Company's consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015 (amounts in thousands):



	Three Months Ended September 30,
	2016						2015
	GBP			USD			GBP			USD
Service cost	£	2,394		$	3,143		£	2,767		$	4,286
Interest cost	2,227			2,923			2,223			3,444
Expected return on plan assets	(2,846		)	(3,737		)	(2,738		)	(4,241		)
Net periodic benefit cost	£	1,775		$	2,329		£	2,252		$	3,489



	Nine Months Ended September 30,
	2016						2015
	GBP			USD			GBP			USD
Service cost	£	7,182		$	10,006		£	5,232		$	8,061
Interest cost	6,681			9,308			3,977			6,132
Expected return on plan assets	(8,538		)	(11,896		)	(5,478		)	(8,438		)
Net periodic benefit cost	£	5,325		$	7,418		£	3,731		$	5,755

During the nine months ended September 30, 2016, the Company contributed £5.0 million (or $6.5 million at the September 30, 2016 exchange rate) to fund the Pension Program. The Company expects to contribute £1.7 million (or $2.2 million at the September 30, 2016 exchange rate) to the Pension Program for the remainder of 2016. The Pension Program's assets may undergo significant changes over time as a result of market conditions. In the event that the Pension Program's projected assets and liabilities reveal additional funding requirements, the shared cost arrangement generally means that the Company will be required to pay 60% of any additional contributions, with active members contributing the remaining 40%, in each case over an agreed recovery period. If the Pension Program was to be terminated and wound up, any deficit would fall entirely on the Company and could not be shared with active members. Currently, the Company has no intention of terminating the Pension Program.