EMPLOYEE BENEFIT PLANS

Beginning with the December 31, 2015 measurement, PLC changed its method used to estimate the service and interest cost components of net periodic benefit cost for pension and other postretirement benefits by applying a spot rate approach. Historically, PLC utilized a single weighted average discount rate derived from a selected yield curve used to measure the benefit obligation as of the measurement date. Under the new spot rate approach, the actual calculation of service and interest cost will reflect an array of spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. PLC made this change to provide a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows to the corresponding spot rates from the selected yield curve. This new approach does not affect the measurement of the total benefit obligation.

Components of the net periodic benefit cost for the three and six months ended June 30, 2016 (Successor Company), the three months ended June 30, 2015 (Successor Company), the period of February 1, 2015 to June 30, 2015 (Successor Company), and the period of January 1, 2015 to January 31, 2015 (Predecessor Company), are as follows:



	Successor Company																				Predecessor Company
	For The Three Months Ended June 30, 2016					For The Three Months Ended June 30, 2015					For The Six Months Ended June 30, 2016					February 1, 2015 to June 30, 2015					January 1, 2015 to January 31, 2015
	Defined Benefit Pension Plan			Excess Benefit Plan		Defined Benefit Pension Plan			Excess Benefit Plan		Defined Benefit Pension Plan			Excess Benefit Plan		Defined Benefit Pension Plan			Excess Benefit Plan		Defined Benefit Pension Plan			Excess Benefit Plan
	(Dollars In Thousands)																				(Dollars In Thousands)
Service cost — benefits earned during the period	$	2,906		$	313	$	2,973		$	333	$	5,812		$	625	$	4,955		$	555	$	974		$	95
Interest cost on projected benefit obligation	2,737			438		2,433			408		5,474			877		4,055			680		1,002			140
Expected return on plan assets	(3,605		)	—		(3,642		)	—		(7,211		)	—		(6,070		)	—		(1,293		)	—
Amortization of prior service cost	—			—		—			—		—			—		—			—		(33		)	1
Amortization of actuarial losses	—			—		—			—		—			—		—			—		668			138
Preliminary net periodic benefit cost	2,038			751		1,764			741		4,075			1,502		2,940			1,235		1,318			374
Settlement/curtailment expense	—			1,500		—			—		—			1,500		—			—		—			—
Total net periodic benefit costs	$	2,038		$	2,251	$	1,764		$	741	$	4,075		$	3,002	$	2,940		$	1,235	$	1,318		$	374

On May 5, 2016, the Board of Directors of Protective Life Corporation decided to convert the accrued benefit payable under the excess benefit plan as of March 31, 2016 to John D. Johns, PLC's Chairman and Chief Executive Officer, into a lump sum amount. Upon the completion of the final terms of the conversion agreement, the lump sum amount will be allocated to a book entry account that will be treated as though it were a deferral account under PLC’s deferred compensation plan for officers. Mr. Johns will continue to accrue benefits with respect to his continued service as an employee of PLC after March 31, 2016 in a manner that is consistent with the provisions of the excess benefit plan. The conversion event will require PLC to re-measure the excess benefit plan and will result in settlement expense recognition upon the completion of the final conversion agreement. PLC estimates that the re-measurement of the excess benefit plan will result in the recognition of $1.5 million in settlement expense and has been accrued during the three months ended June 30, 2016 (Successor Company). Financial re-measurement of the excess benefit plan will be performed as soon as the conversion agreement is in place.

During the six months ended June 30, 2016 (Successor Company), PLC did not make a contribution to its defined benefit pension plan. PLC will make contributions in future periods as necessary to at least satisfy minimum funding requirements. PLC may also make additional contributions in future periods to maintain an adjusted funding target attainment percentage (“AFTAP”) of at least 80% and to avoid certain Pension Benefit Guaranty Corporation (“PBGC”) reporting triggers.