Postretirement Benefit Plans

Korea Defined Benefit Plan

In connection with the Nesscap Acquisition on April 28, 2017, the Company assumed the defined benefit plan liability related to Nesscap Korea’s employees. Pursuant to the Labor Standards Act of Korea, employees and most executive officers with one or more years of service are entitled to lump sum separation benefits upon the termination of their employment based on their length of service and rate of pay.

The following table reflects changes in the defined benefit plan obligation for the period from acquisition to December 31, 2018 (in thousands):



	Year ended December 31,			April 29 through December 31,
	2018			2017
Change in benefit obligation:
Beginning benefit obligation	$	3,966		$	3,360
Service cost	590			361
Interest cost	110			55
Benefits paid	(503		)	(212		)
Actuarial loss	518			174
Effect of foreign currency translation	(172		)	228
Projected benefit obligation at end of year	4,509			3,966
Fair value of plan assets	20			24
Unfunded status at end of year	$	4,489		$	3,942

Amounts recognized in the consolidated balance sheets consist of (in thousands):



	As of December 31,
	2018		2017
Net defined benefit plan liability	$	4,489	$	3,942

Accumulated other comprehensive loss includes the following:
Actuarial loss before taxes	$	692	$	174

The components of net periodic pension cost and other amounts recognized in other comprehensive income (loss) before taxes are as follows (in thousands):



	Year ended December 31,		April 29 through December 31,
	2018		2017
Components of net periodic defined benefit plan cost:
Service cost	$	590	$	361
Interest cost	110		55
Net periodic defined benefit plan cost	$	700	$	416
Other amounts recognized in other comprehensive income (loss) before income taxes are as follows:
Actuarial loss on benefit obligation	$	518	$	174
Total loss recognized in other comprehensive income (loss), before taxes	518		174
Total loss recognized in net periodic defined benefit plan cost and other comprehensive income (loss), before taxes	$	1,218	$	590

Assumptions used to determine the benefit obligation and net periodic defined benefit plan cost are as follows:



	Year ended December 31,		April 29 through December 31,
	2018		2017
Discount rate	2.46	%	2.98	%
Rate of compensation increase	6.96	%	6.11	%

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands):



2019	$	372
2020	364
2021	419
2022	331
2023	414
Years 2024 through 2028	1,293
Total	$	3,193

In compliance with local labor law, the Company is required to make contributions for foreign line workers. Employer contributions of $7,000 were paid during the year ended December 31, 2018 and $6,000 were paid during the period from acquisition to December 31, 2017. The Company expects to make contributions of approximately $7,000 in 2019.

U.S. Plan

The Company has a postretirement benefit plan covering its employees in the United States. Substantially all U.S. employees are eligible to elect coverage under a contributory employee savings plan which provides for Company matching contributions based on one-half of employee contributions up to certain plan limits. The Company’s matching contributions under this plan totaled $0.4 million and $0.5 million for the years ended December 31, 2018 and 2017, respectively.