Employee Benefit Plans

12 Months Ended

Dec. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Employee Benefit Plans

Note 10
Employee Benefit Plans

Defined Benefit Plan
The Company has a noncontributory defined-benefit pension plan (the “Plan”), which covers most of its employees. Effective December 31, 2016, the Plan was closed to all new participants. The Company accrues and makes contributions designed to fund normal service costs on a current basis using the projected unit credit with service proration method to amortize prior service costs arising from improvements in pension benefits and qualifying service prior to the establishment of the Plan over a period of approximately 30 years.

A summary of the activity in the Plan’s projected benefit obligation, assets, funded status and amounts recognized in the Company’s consolidated balance sheets is as follows:

(In thousands)	2016			2015
Projected benefit obligation:
Balance, January 1	$	78,369		$	81,342
Service cost		3,559			3,795
Interest cost		3,505			3,178
Actuarial (gain) loss		2,003			(8,358	)
Benefits paid		(1,885	)		(1,588	)
Balance, December 31	$	85,551		$	78,369
Plan assets:
Fair value, January 1	$	71,174		$	72,972
Actual return		3,879			(210	)
Employer contribution		—			—
Benefits paid		(1,885	)		(1,588	)
Fair value, December 31	$	73,168		$	71,174
Funded status:
Accrued pension liability	$	(12,383	)	$	(7,195	)

The following represent the major assumptions used to determine the projected benefit obligation of the Plan. For 2016, 2015 and 2014, the Plan’s expected benefit cash flows were discounted using the Citibank Above Median Curve. For 2016, the RP-2014 Mortality Table and the MP-2016 Mortality Improvement Table were used. For 2015, the RP-2014 Mortality Table and MP-2015 Mortality Improvement Table were used. For 2014, the RP-2014 Mortality Table and MP-2014 Mortality Improvement Table were used.

	2016		2015		2014
Weighted average discount rate	4.25	%	4.50	%	4.00	%
Rate of increase in compensation levels	(a)		(a)		(a)

       (a)        6.0% graded down to 3.25% over the first seven years of service

The accumulated benefit obligation was $74,425,000 and $68,321,000 as of December 31, 2016 and 2015, respectively. The Company does not expect to make a contribution to the Plan in 2017. The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid by the Plan:

	Amount
2017	$	2,319,000
2018		2,660,000
2019		2,814,000
2020		3,045,000
2021		3,309,000
2022-2026		21,898,000

The Plan’s pension cost included the following components:

	For the Year Ended
	December 31,
(In thousands)	2016			2015			2014
Service cost – benefits earned during the year	$	3,559		$	3,796		$	3,003
Interest cost on projected benefit obligations		3,505			3,178			3,037
Expected return on plan assets		(4,734	)		(4,864	)		(4,711	)
Net amortization and deferral		1,259			1,542			244
Net periodic pension cost	$	3,589		$	3,652		$	1,573

The following represent the major assumptions used to determine the net pension cost of the Plan:

	2016		2015		2014
Weighted average discount rate	4.50	%	4.00	%	5.00	%
Rate of increase in compensation levels	(a)		(a)		3.75	%
Expected long-term rate of return on assets	6.75	%	6.75	%	6.75	%

       (a)        6.0% graded down to 3.25% over the first seven years of service

For 2016, the RP-2014 Mortality Table and the MP-2016 Mortality Improvement Table were used. For 2015, the RP-2014 Mortality Table and the MP-2015 Mortality Improvement Table were used. For 2014, the RP-2010 Mortality Tables and the AA Mortality Improvement scale were used.

The investment objective for the Plan is to maximize total return with a tolerance for average risk. Asset allocation is a balance between fixed income and equity investments, with a target allocation of approximately 48% fixed income, 36% U.S. equity and 16% non-U.S. equity. Due to volatility in the market, this target allocation is not always desirable and asset allocations can fluctuate between acceptable ranges. The fixed income component is invested in pooled investment grade securities. The equity components are invested in pooled large cap, small/mid cap and non-U.S. stocks. The expected one-year nominal returns and annual standard deviations are shown by asset class below:

			One-Year Nominal		Annual Standard
Asset Class	% of Total Portfolio		Return		Deviation
Core Fixed Income	48	%	4.51	%	4.64	%
Large Cap U.S. Equities	10	%	7.36	%	16.14	%
Large Cap U.S. Growth Equities	18	%	7.67	%	17.31	%
Small Cap U.S. Equities	8	%	8.49	%	20.02	%
International (Developed)	15	%	8.89	%	19.35	%
International (Emerging)	1	%	10.68	%	27.66	%

Applying appropriate correlation factors between each of the asset classes the long-term rate of return on assets is estimated to be 6.50%.

A summary of the fair value measurements by type of asset is as follows:

	Fair Value Measurements as of December 31,
	2016						2015
			Quoted Prices						Quoted Prices
			in Active						in Active
			Markets for		Significant				Markets for		Significant
			Identical		Observable				Identical		Observable
			Assets		Inputs				Assets		Inputs
(In thousands)	Total		(Level 1)		(Level 2)		Total		(Level 1)		(Level 2)
Cash	$	340	$	340	$	—	$	283	$	283	$	—
Equity securities
U.S. Large Cap Growth		13,306		—		13,306		12,908		—		12,908
U.S. Small/Mid Cap Growth		5,655		—		5,655		5,418		—		5,418
Non-U. S. Core		10,588		—		10,588		10,474		—		10,474
U.S. Large Cap Passive		7,364		—		7,364		7,153		—		7,153
Emerging Markets		652		—		652		599		—		599
Fixed Income
U.S. Core		24,438		—		24,438		23,881		—		23,881
U.S. Passive		9,571		—		9,571		9,328		—		9,328
Opportunistic		1,254				1,254		1,130				1,130
Total	$	73,168	$	340	$	72,828	$	71,174	$	283	$	70,891

Supplemental Executive Retirement Plan
The Company also has an unfunded supplemental executive retirement plan (“SERP”) which covers key executives of the Company whose benefits are limited by the IRS under the Company’s qualified retirement plan. The SERP is a noncontributory plan in which the Company’s subsidiaries make accruals designed to fund normal service costs on a current basis using the same method and criteria as the Plan.

A summary of the activity in the SERP’s projected benefit obligation, funded status and amounts recognized in the Company’s consolidated balance sheets is as follows:

	December 31,
(In thousands)	2016			2015
Benefit obligation:
Balance, January 1	$	8,748		$	9,403
Service cost		133			140
Interest cost		367			348
Benefits paid		(247	)		(243	)
Actuarial (gain) loss		131			(900	)
Balance, December 31	$	9,132		$	8,748

The following represent the major assumptions used to determine the projected benefit obligation of the SERP. For 2016, 2015 and 2014, the SERP’s expected benefit cash flows were discounted using the Citigroup Above Median Curve.

	2016		2015		2014
Weighted average discount rate	4.00	%	4.25	%	3.75	%
Rate of increase in compensation levels	(a)		(a)		(a)

       (a)      6.00% graded down to 3.25% over the first seven years of service.

The accumulated benefit obligation was $7,904,000 and $7,482,000 as of December 31, 2016 and 2015, respectively. Since this is an unfunded plan, there are no plan assets. Benefits paid were $247,000 in 2016, $243,000 in 2015 and $236,000 in 2014. Expected future benefits payable by the Company over the next ten years are as follows:

	Amount
2017	$	247,000
2018		313,000
2019		312,000
2020		310,000
2021		364,000
2022-2026		3,679,000

The SERP’s pension cost included the following components:

	For the Year Ended December 31,
(In thousands)	2016		2015		2014
Service cost – benefits earned during the year	$	133	$	140	$	136
Interest cost on projected benefit obligations		367		348		377
Net amortization and deferral		295		654		431
Net periodic pension cost	$	795	$	1,142	$	944

The pretax amounts in accumulated other comprehensive loss as of December 31 were as follows:

	The Plan				SERP
(In thousands)	2016		2015		2016		2015
Prior service cost	$	—	$	—	$	—	$	—
Net actuarial loss		22,237		20,637		2,005		2,169
Total	$	22,237	$	20,637	$	2,005	$	2,169

The estimated pretax prior service cost and net actuarial loss in accumulated other comprehensive loss at December 31, 2016 expected to be recognized as components of net periodic benefit cost in 2017 for the Plan are $0 and $1,328,000, respectively. The estimated pretax prior service cost and net actuarial loss in accumulated other comprehensive loss at December 31, 2016 expected to be recognized as components of net periodic benefit cost in 2017 for the SERP are $0 and $323,000, respectively.

The Company also maintains a noncontributory profit sharing program, which covers most of its employees. Employer contributions are calculated based upon formulas which relate to current operating results and other factors. Profit sharing expense recognized in the consolidated statements of income in 2016, 2015 and 2014 was $5,367,000, $5,211,000, and $5,298,000, respectively.

The Company also sponsors a defined contribution 401(k) plan to provide additional retirement benefits to substantially all employees. Contributions under the 401(k) plan for 2016, 2015 and 2014 were $658,000, $623,000, and $584,000, respectively.