Employee Benefit Obligations

12 Months Ended

Dec. 31, 2018

Compensation And Retirement Disclosure [Abstract]

Note 9: Employee benefit obligations

The Company sponsors a defined benefit plan (the “Swiss Plan”) for all its employees in Switzerland for retirement benefits, as well as benefits on death or long-term disability. The liability in respect of the Swiss Plan is the projected benefit obligation calculated using the projected unit credit method. The projected benefit obligation as of December 31, 2018 represents the actuarial present value of the estimated future payments required to settle the obligation that is attributable to employee service rendered before that date. Swiss Plan assets are recorded at fair value. Pension expense is presented in the payroll expenses in the various functions in which the employees are engaged. Actuarial gains and losses arising from differences between the actual and the expected return on the Swiss Plan assets are recognized in accumulated other comprehensive income (loss) and amortized over the requisite service period. The Swiss Plan is part of a collective pension foundation managed by a top tier insurance company. The Company’s exposure under the Swiss Plan is insured. The Company has financial exposure under the Swiss Plan only in the event that the insurance company does not meet its obligations. The Company and the employees pay retirement contributions, which are defined as a percentage of the employees’ covered salaries. Interest is credited to the employees’ account at the minimum rate provided in the Swiss Plan, which represents the Swiss Plan’s primary asset. The targeted allocation for these funds is as follows:

Asset Allocation by Category as of December 31, 2018:
Asset Category:	Asset allocation (%)
Debt Securities		28
Real Estate		22
Equity Securities		28
Others		22
Total		100

The following table sets forth the Swiss Plan’s funded status and amounts recognized in the consolidated financial statements for the year ended December 31, 2018 and 2017:

	December 31,
	2018			2017
Change in Benefit Obligation
Projected benefit obligation at beginning of year	$	10,317		$	8,241
Interest cost		64			54
Company service cost		820			878
Employee contributions		486			417
Prior service cost		-			(314	)
Benefits paid		475			341
Actuarial loss		87			700
Projected benefit obligation at end of year	$	12,249		$	10,317
Change in Plan Assets
Fair value of plan assets at beginning of year	$	8,243		$	5,978
Actual return on plan assets		3			882
Employer contributions		729			625
Employee contributions		486			417
Benefits paid		475			341
Fair value of plan assets at end of year	$	9,936		$	8,243
Funded Status at End of year
Excess of obligation over assets	$	(2,313	)	$	(2,074	)
Change in Accrued Benefit Liability
Accrued benefit liability at beginning of year	$	(2,074	)	$	(2,263	)
Company contributions made during year		729			625
Net periodic benefit cost for year		(874	)		(1,036	)
Net decrease (increase) in accumulated other comprehensive loss		(94	)		600
Accrued benefit liability at end of year	$	(2,313	)	$	(2,074	)

	December 31,
	2018			2017
Non - current plan assets	$	9,936		$	8,243
Non - current liability		12,249			10,317
Accrued benefit liability at end of year	$	(2,313	)	$	(2,074	)
Projected Benefit Payments
Projected year 1	$	206		$	166
Projected year 2		205			168
Projected year 3		1,158			172
Projected year 4		195			1,124
Projected year 5		200			163
Projected year 6-10	$	2,859		$	1,053

The fair value of the plan assets is the estimated cash surrender value of the insurance contract at December 31, 2018. The level of inputs used to measure fair value was Level 2.

	Year ended December 31,
	2018			2017
Net Periodic Benefit Cost
Service cost	$	820		$	878
Interest cost (income)		69			62
Expected return on plan assets		(54	)		(42	)
Amortization of prior service costs		65			124
Amortization of transition obligation		(18	)		14
Total net periodic benefit cost	$	882		$	1,036

Weighted average assumptions:
Discount rate as of December 31	0.90%			0.60%
Expected long-term rate of return on assets	0.90%			0.60%
Rate of compensation increase	1.00%			1.00%
Mortality and disability assumptions (*)	BVG 2015 GT			BVG 2015 GT

(*)	Mortality data used for actuarial calculation.