NOTE N — SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS

Defined Benefit Supplemental Executive Retirement Plan

Our unfunded noncontributory defined benefit plan ("DB SERP") covers certain senior executives, is administered by us and calls for annual payments upon retirement based on years of service and final average salary. Benefit costs and liability balances are calculated based on certain assumptions including benefits earned, discount rates, interest costs, mortality rates, and other factors. Actual results that differ from the assumptions are accumulated and amortized over future periods, affecting the recorded obligation and expense in future periods.

We believe the assumptions used are appropriate; however, changes in assumptions or differences in actual experience may affect our benefit obligation and future expenses. The DB SERP's change in net benefit cost and obligation during the three and nine months ended September 30, 2018 and 2017 is as follows:

Change in Benefit Obligation


(in thousands)	2018		2017
Benefit Obligation as of June 30	$	19,388	$	19,985
Service cost		92		85
Interest cost		150		167
Payments		(13)		(78)
Benefit Obligation as of September 30	$	19,617	$	20,159

Benefit obligation as of December 31, 2017 and 2016, respectively	$	20,793	$	21,304
Service cost		275		255
Interest cost		450		501
Payments		(1,901)		(1,901)
Benefit obligation as of September 30	$	19,617	$	20,159

Amounts Recognized in the Condensed Consolidated Balance Sheets:


(in thousands)	September 30, 2018		December 31, 2017
Accrued expenses and other current liabilities	$	1,913	$	1,913
Other liabilities		17,704		18,880
Total accrued liabilities	$	19,617	$	20,793

Defined Contribution Supplemental Executive Retirement Plan

We have a defined contribution plan ("DC SERP") that covers certain of our senior executives. Each participant is given a notional account to manage his or her annual distributions and allocate the funds among various investment options (e.g. mutual funds). These accounts are tracking accounts only for the purpose of calculating the participant’s benefit. The participant does not have ownership of the underlying mutual funds. When a participant initiates or changes the allocation of his or her notional account, we will generally make an allocation of our investments to match those chosen by the participant. While the allocation of our sub accounts is generally intended to mirror the participant’s account records (i.e. the distributions and gains or losses on those funds), the employee does not have legal ownership of any funds until payout upon retirement. The underlying investments are owned by the insurance company (and we own an insurance policy).

As of September 30, 2018 and 2017, the estimated accumulated obligation benefit is $2.9 million and $2.5 million, respectively, of which $2.6 million and $2.2 million is funded and $0.3 million and $0.3 million is unfunded at September 30, 2018 and 2017, respectively.

In connection with the DC SERP benefit obligation, we maintain a company owned life insurance policy which is measured at its cash surrender value and is presented within "Other assets" in our consolidated balance sheets. See Note G - "Other Current Assets and Other Assets" for additional information.