EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2017

Net pension cost (credit) included the following components (in thousands):



	Twelve Months Ended December 31,
	2017			2016¹
Service cost	$	90		$	79
Interest cost	2,438			2,504
Expected return on plan assets	(3,110		)	(2,577		)
Amortization of net actuarial loss	71			—
Net periodic pension cost (credit)	$	(511	)	$	6

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1Reflects net pension cost from the date of the Furmanite acquisition.

Schedule of Assumptions Used

The weighted-average assumptions used to determine benefit obligations at December 31, 2017 and 2016 are as follows:



	December 31,
	2017		2016
Discount rate	2.5	%	2.7	%
Rate of compensation increase¹	Not applicable		Not applicable
Inflation	3.1	%	3.3	%

______________

1Not applicable due to plan curtailment.

The weighted-average assumptions used to determine net periodic benefit cost (credit) for the years ended December 31, 2017 and 2016 are as follows:



	Twelve Months Ended December 31,
	2017		2016
Discount rate	2.7	%	4.0	%
Expected long-term return on plan assets	4.5	%	4.9	%
Rate of compensation increase¹	Not applicable		Not applicable
Inflation	3.3	%	2.8	%

_______________

1Not applicable due to plan curtailment.

Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets

The following table sets forth the changes in the benefit obligation and plan assets for the years ended December 31, 2017 and 2016 (in thousands):



	Twelve Months Ended December 31,
	2017			2016
Projected benefit obligation:
Beginning of year	$	89,206		$	—
Acquisition of Furmanite	—			80,410
Service cost	90			79
Interest cost	2,438			2,504
Actuarial loss	890			18,233
Benefits paid	(4,187		)	(2,804		)
Foreign currency translation adjustment and other	8,438			(9,216		)
End of year	96,875			89,206
Fair value of plan assets:
Beginning of year	67,967			—
Acquisition of Furmanite	—			66,901
Actual gain on plan assets	7,383			10,222
Employer contributions	4,350			1,182
Benefits paid	(4,187		)	(2,804		)
Foreign currency translation adjustment and other	6,386			(7,534		)
End of year	81,899			67,967
Excess projected obligation under (over) fair value of plan assets at end of year	$	(14,976	)	$	(21,239	)
Amounts recognized in accumulated other comprehensive loss:
Net actuarial loss	$	(7,221	)	$	(10,518	)

Schedule of Expected Benefit Payments

At December 31, 2017, expected future benefit payments are as follows for the years ended December 31, (in thousands):



2018	$	3,157
2019	3,608
2020	3,750
2021	3,978
2022	4,163
2023-2027	22,801
Total	$	41,457

Schedule of Allocation of Plan Assets

The following table sets forth the weighted-average asset allocation and target asset allocations as of December 31, 2017 and 2016 by asset category:



	Asset Allocations				Target Asset Allocations
	2017		2016		2017		2016
Equity securities and diversified growth funds¹	73.5	%	67.3	%	65.0	%	65.0	%
Debt securities²	25.7	%	31.6	%	35.0	%	35.0	%
Other	0.8	%	1.1	%	—	%	—	%
Total	100	%	100	%	100	%	100	%

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1	Diversified growth funds refer to actively managed absolute return funds that hold a combination of equity and debt securities.


2	Includes investments in funds with the objective to provide leveraged returns to U.K. government fixed income securities and U.K. government indexed-linked securities.

The following tables summarize the plan assets of the U.K. Plan measured at fair value on a recurring basis (at least annually) as of December 31, 2017 and 2016 (in thousands):



December 31, 2017
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3) (a)
Cash	$	651	$	651	$	—	$	—
Equity securities:
U.K. equity (b)	17,809		—		17,809		—
U.S. equity index (c)	4,370		—		4,370		—
European equity index (d)	4,378		—		4,378		—
Pacific rim equity index (e)	3,506		—		3,506		—
Japanese equity index (f)	2,733		—		2,733		—
Emerging markets equity index (g)	2,785		—		2,785		—
Diversified growth fund (h)	17,296		—		17,296		—
Global absolute return fund (i)	6,534		—		6,534		—
Fixed income securities:
Cash fund (j)	5,315		—		5,315		—
U.K. government fixed income securities (k)	6,494		—		6,494		—
U.K. government index-linked securities (l)	8,934		—		8,934		—
Total	$	80,805	$	651	$	80,154	$	—



December 31, 2016
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3) (a)
Cash	$	744	$	744	$	—	$	—
Equity securities:
U.K. equity (b)	13,927		—		13,927		—
U.S. equity index (c)	3,453		—		3,453		—
European equity index (d)	3,421		—		3,421		—
Pacific rim equity index (e)	2,645		—		2,645		—
Japanese equity index (f)	2,185		—		2,185		—
Emerging markets equity index (g)	2,014		—		2,014		—
Diversified growth fund (h)	11,637		—		11,637		—
Global absolute return fund (i)	5,821		—		5,821		—
Fixed income securities:
Cash fund (j)	7,921		—		7,921		—
U.K. government fixed income securities (k)	5,454		—		5,454		—
U.K. government index-linked securities (l)	7,825		—		7,825		—
Total	$	67,047	$	744	$	66,303	$	—

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The net asset value of the commingled equity and fixed income funds are determined by prices of the underlying securities, less the funds’ liabilities, and then divided by the number of shares outstanding. As the funds are not traded in active markets, the commingled funds are classified as Level 2 or Level 3 assets. The net asset value is corroborated by observable market data (e.g., purchase or sale activities) for Level 2 assets.


b)	This category includes investments in U.K. companies and aims to achieve a return that is consistent with the return of the FTSE All-Share Index.


c)	This category includes investments in a variety of large and small U.S. companies and aims to achieve a return that is consistent with the return of the FTSE All-World USA Index.


d)	This category includes investments in a variety of large and small European companies and aims to achieve a return that is consistent with the return of the FTSE All-World Developed Europe ex-U.K. Index.


e)	This category includes investments in a variety of large and small companies across the Australian, Hong Kong, New Zealand and Singapore markets and aims to achieve a return that is consistent with the return of the FTSE-All-World Developed Asia Pacific ex-Japan Index.


f)	This category includes investments in a variety of large and small Japanese companies and aims to achieve a return that is consistent with the return of the FTSE All-World Japan Index.


g)	This category includes investments in companies in the Emerging Markets to achieve a return that is consistent with the return of the IFC Investable Index ex-Malaysia.


h)	This category includes investments in a diversified portfolio of equity, bonds, alternatives and cash markets and aims to achieve a return that is consistent with the return of the Libor GBP 3 month +3% Index.


i)	This category includes investments in a diversified portfolio of equity and bonds combined with investment strategies based on advanced derivative techniques and aims to achieve a return over rolling three-year periods equivalent to cash plus 5% per year, gross of fees.


j)	This category includes investments in British pound sterling-denominated money market instruments and fixed-income securities issued by governments, corporations or other issuers which may be listed or traded on a recognized market.


k)	This category includes investments in funds with the objective to provide a leveraged return to U.K. government fixed income securities (gilts) that have maturity dates in 2040 and 2052.


l)	This category includes investments in funds with the objective to provide a leveraged return to various U.K. government indexed-linked securities (gilts), with maturity periods ranging from 2022 to 2062. The funds invest in U.K. government bonds and derivatives.