Employee Benefit Plans

3 Months Ended

Apr. 30, 2016

Compensation and Retirement Disclosure [Abstract]

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS

We maintain a qualified defined benefit pension plan (“Pension Plan”) and a nonqualified supplemental defined benefit pension plan (“Supplemental Pension Plan”) covering certain employees whose hire date occurred before April 1, 1994. On October 31, 2015, our Board of Directors approved amendments to freeze benefits and terminate the Pension Plan. The Pension Plan discontinued accruing benefits on December 31, 2015 and the termination was effective January 31, 2016. On December 2, 2015, our Board of Directors approved amendments to freeze benefits and terminate the Supplemental Pension Plan. The Supplemental Pension Plan discontinued accruing benefits on December 31, 2015 and the termination was effective December 31, 2015. We continue to expect that it will take 15 to 24 months from the date of the approved amendment to complete the termination of the Pension Plan and the Supplemental Pension Plan. The pension liability has been and will be settled through either lump sum payments or purchased annuities.

The weighted-average assumptions used to determine net periodic pension cost for our plans were as follows:

	First Quarter
	2016		2015
Discount rate	1.2	%	3.3	%
Rate of increase in compensation levels	0.0	%	2.8	%
Expected long-term rate of return	2.8	%	5.2	%

The components of combined net periodic pension cost were as follows:

	First Quarter
(In thousands)	2016			2015
Service cost - benefits earned in the period	$	—		$	512
Interest cost on projected benefit obligation	229			594
Expected investment return on plan assets	(384		)	(653		)
Amortization of actuarial loss	620			502
Amortization of prior service cost	—			1
Settlement loss	1,116			—
Net periodic pension cost	$	1,581		$	956

During the first quarter of 2016, we recognized a settlement loss of $1.1 million, which was driven by terminated vested participants electing to receive lump sum payments. If we are able to complete the full distribution of the pension plans during 2016, we will recognize the remaining unrecognized actuarial loss, or $24.4 million as of April 30, 2016, into income through settlement charges.

We currently expect to fund our entire pension liability, or $19.2 million, during the next 12 months as a result of the plan terminations.