10) PENSION PLAN

We maintain contributory and non-contributory retirement plans for eligible employees. Our contributions to the contributory plan amounted to $45.7 million, $40.7 million and $35.7 million in 2016, 2015 and 2014, respectively. The non-contributory plan is a defined benefit pension plan which covers employees of one of our subsidiaries. The benefits are based on years of service and the employee’s highest compensation for any five years of employment. Our funding policy is to contribute annually at least the minimum amount that should be funded in accordance with the provisions of ERISA.

The following table shows the reconciliation of the defined benefit pension plan as of December 31, 2016 and 2015:

	2016			2015
	(000s)
Change in plan assets:
Fair value of plan assets at beginning of year	$	106,839		$	116,697
Actual return (loss) on plan assets		8,858			(3,223	)
Benefits paid		(5,651	)		(6,086	)
Administrative expenses		(369	)		(549	)
Fair value of plan assets at end of year	$	109,677		$	106,839
Change in benefit obligation:
Benefit obligation at beginning of year	$	118,180		$	127,342
Service cost		926			1,051
Interest cost		4,997			4,912
Benefits paid		(5,651	)		(6,086	)
Actuarial (gain) loss		(7,503	)		(9,039	)
Benefit obligation at end of year	$	110,949		$	118,180
Amounts recognized in the Consolidated Balance Sheet:
Other non-current liabilities		1,272			11,341
Total amounts recognized at end of year	$	1,272		$	11,341

	2016			2015			2014
	(000s)
Components of net periodic cost (benefit)
Service cost	$	926		$	1,051		$	966
Interest cost		4,997			4,912			4,985
Expected return on plan assets		(5,708	)		(6,254	)		(7,772	)
Recognized actuarial loss		3,072			3,164			1,107
Net periodic cost	$	3,287		$	2,873		$	(714	)

	2016	2015
Measurement Dates
Benefit obligations	12/31/2016	12/31/2015
Fair value of plan assets	12/31/2016	12/31/2015

	2016			2015
Weighted average assumptions as of December 31
Discount rate		4.14	%		4.34	%
Rate of compensation increase		4.00	%		4.00	%

	2016			2015			2014
Weighted-average assumptions for net periodic benefit cost calculations
Discount rate		4.34	%		3.95	%		4.95	%
Expected long-term rate of return on plan assets		5.50	%		5.50	%		7.50	%
Rate of compensation increase		4.00	%		4.00	%		4.00	%

The accumulated benefit obligation was $110.6 million and $117.7 million as of December 31, 2016 and 2015, respectively. As of December 31, 2016, the accumulated benefit obligation exceeded the fair value of plan assets by $0.9 million. As of December 31, 2015, the accumulated benefit obligation exceeded the fair value of plan assets by $10.9 million.

We estimate that there will be a $0.9 million net loss amortized from accumulated other comprehensive income during 2017.

In May, 2015, the FASB issued ASU No. 2015-07, "Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its Equivalent)," which is effective for annual reporting periods beginning after December 15, 2015. The standard removes the requirement to categorize investments for which fair value is measured using the net asset value (NAV) per share practical expedient within the fair value hierarchy. We have adopted this standard effective January 1, 2016, and applied the guidance retrospectively. This standard impacts financial statement disclosure only. In previous reporting periods, we disclosed the full fair value hierarchy and disclosed our pension assets as level 2 within the hierarchy. Going forward, we will disclose our pension assets by asset category reported using NAV as a practical expedient for comparative years.

The market values of our pension plan assets at December 31, 2016 and December 31, 2015 by asset category are as follows:

	2016		2015
Equities:
U.S. Large Cap	$	8,547	$	8,520
U.S. Mid Cap		2,651		2,613
U.S. Small Cap		2,669		2,649
International Developed		6,534		6,406
Emerging Markets		4,360		4,114
Fixed income:
Core Fixed Income		23,719		23,782
Long Duration Fixed Income		58,312		55,931
Real Estate:
REIT Fund		2,216		2,212
Cash/Currency:				0
Cash Equivalents		669		612
Total market value	$	109,677	$	106,839

To develop the expected long-term rate of return on plan assets assumption, we considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio.

The following table shows expected benefit payments for the years ended December 31, 2017 through 2026 for our defined pension plan. There will be benefit payments under this plan beyond 2026.

Estimated Future Benefit Payments (000s)
2017	$	6,180
2018		6,421
2019		6,596
2020		6,716
2021		6,799
2022-2026		34,353
Total	$	67,065

	2016			2015
Plan Assets
Asset Category
Equity securities		23	%		23	%
Fixed income securities		75	%		75	%
Other		2	%		2	%
Total		100	%		100	%

Investment Policy, Guidelines and Objectives have been established for the defined benefit pension plan. The investment policy is in keeping with the fiduciary requirements under existing federal laws and managed in accordance with the Prudent Investor Rule. Total portfolio risk is regularly evaluated and compared to that of the plan’s policy target allocation and judged on a relative basis over a market cycle. The following asset allocation policy and ranges have been established in accordance with the overall risk and return objectives of the portfolio:

	As of 12/31/2016			Permitted Range
Total Equity		23	%	10-30%
Total Fixed Income		75	%	70-90%
Other		2	%	0-10%

In accordance with the investment policy, the portfolio will invest in high quality, large and small capitalization companies traded on national exchanges, and investment grade securities. The investment managers will not write or buy options for speculative purposes; securities may not be margined or sold short. The manager may employ futures or options for the purpose of hedging exposure, and will not purchase unregistered sectors, private placements, partnerships or commodities.