10. Accrued Severance Benefits

The majority of accrued severance benefits are for employees in the Company’s Korean subsidiary. Pursuant to the Employee Retirement Benefit Security Act of Korea, eligible employees and executive officers with one or more years of service are entitled to severance benefits upon the termination of their employment based on their length of service and rate of pay. As of September 30, 2018, 98% of employees of the Company were eligible for severance benefits.

Changes in accrued severance benefits are as follows (in thousands):


	Three Months Ended			Nine Months Ended			Three Months Ended			Nine Months Ended
	September 30, 2018						September 30, 2017
Beginning balance	$	146,375		$	149,795		$	130,894		$	130,144
Provisions		5,521			14,686			4,578			15,354
Severance payments		(3,250	)		(9,004	)		(1,496	)		(19,578	)
Translation adjustments		1,194			(5,637	)		(852	)		7,204

		149,840			149,840			133,124			133,124
Less: Cumulative contributions to severance insurance deposit accounts		(858	)		(858	)		—			—
The National Pension Fund		(236	)		(236	)		(243	)		(243	)
Group severance insurance plan		(598	)		(598	)		(593	)		(593	)

Accrued severance benefits, net	$	148,148		$	148,148		$	132,288		$	132,288

The severance benefits funded through the Company’s National Pension Fund and group severance insurance plan will be used exclusively for payment of severance benefits to eligible employees. These amounts have been deducted from the accrued severance benefit balance.

Beginning in July 2018, the Company contributes a certain percentage of severance benefits, accrued for eligible employees for their services from January 1, 2018, to certain severance insurance deposit accounts. These accounts consist of time deposits and other guaranteed principal and interest, and are maintained at insurance companies, banks or security companies for the benefit of employees. The Company deducts the contributions made to certain severance insurance deposit accounts from its accrued severance benefits.

The Company is liable to pay the following future benefits to its non-executive employees upon their normal retirement age (in thousands):


	Severance benefit
Remainder of 2018	$	—
2019		598
2020		1,092
2021		1,569
2022		1,343
2023		1,836
2024 – 2028		27,152

The above amounts were determined based on the non-executive employees’ current salary rates and the number of service years that will be accumulated upon their retirement dates. These amounts do not include amounts that might be paid to non-executive employees that will cease working with the Company before their normal retirement ages.

Korea’s mandatory retirement age is 60 under the Employment Promotion for the Aged Act.