XML 66 R23.htm IDEA: XBRL DOCUMENT v3.3.0.814
Employee Benefit Plans
9 Months Ended
Sep. 30, 2015
Compensation and Retirement Disclosure [Abstract]  
Employee Benefit Plans
Employee Benefit Plans
The Company previously sponsored a cash balance defined benefit pension plan that covered substantially all of its salaried employees (the “Pension Plan”). In November 2012, the Board of Directors approved the termination of the Pension Plan. The Pension Plan was frozen in March 2013 pending regulatory approvals, which were received in August 2014. As of December 31, 2014, the Pension Plan assets have been distributed to Pension Plan participants and $7.9 million was distributed to the Company’s 401(k) Plan to pay additional future benefits to current and future 401(k) plan participants for up to the next seven years. Subsequent to these distributions, the remaining Pension Plan assets of $23.8 million were reverted to the Company in December 2014.
A summary of the net periodic pension cost related to the Pension Plan for the three and nine months ended September 30, 2014 are as follows:
 
 
Three Months Ended September 30, 2014
 
Nine Months Ended September 30, 2014
Interest cost
 
$
149

 
$
496

Expected loss on assets
 
137

 
412

Settlement charges
 
529

 
969

Amortization of loss
 
115

 
373

Net periodic pension cost
 
$
930

 
$
2,250


As of September 30, 2014, the assumptions used to develop net periodic pension cost and benefit obligations were the discount rate of 3.75% and expected long-term rate on plan assets of 0%.
Deferred Compensation Plan
The Company maintains a 401(k) retirement plan covering substantially all officers and employees, which permits participants to defer up to the maximum allowable amount determined by the IRS of their eligible compensation.
As part of the Pension Plan termination described above, the Company directed the Pension Plan to transfer $7.9 million of the Pension Plan’s surplus assets into a suspense account in the Company’s 401(k) Plan. The Company has retained the risks and rewards of ownership of these assets; therefore, the assets held in the suspense account are included in the Company’s condensed consolidated financial statements until they are allocated to participants. At September 30, 2015 and December 31, 2014, the fair values of these assets were recorded in Restricted investments on the Company’s Condensed Consolidated Balance Sheets and were $7.2 million and $7.9 million, respectively.
The Company expenses the fair value of the assets at the time the assets are allocated to participants, which is expected to be up to the next seven years. During the nine months ended September 30, 2015, the Company recorded an expense of $0.9 million for the fair value of the assets that were allocated to participants during that period. In addition, any gains and losses on these assets are reflected in the Company’s condensed consolidated financial statements and were less than a $0.1 million gain for the three and nine months ended September 30, 2015. Refer to Note 7, Financial Instruments and Fair Value Measurements.