Employee Benefits Plans

Defined Contribution Plan

We maintain a defined contribution plan covering substantially all of our employees and make discretionary matching and profit sharing contributions. The total plan cost, including employer contributions, was

$40,000

2017

and

$16,000

2016.

Employer contributions were suspended to the plan beginning in

2015.

Deferred Compensation Plan

Effective

January 1986,

we established an unfunded, nonqualified deferred compensation plan for select key executives (the “Plan”). The Plan allowed participants to defer a portion of their compensation and, upon retirement, receive an annual payment for life with a minimum of

payments. The Plan was frozen to new participants in

1991

and there are

active employees in the plan. The Plan is accounted for in accordance with ASC

715,

Pension Plans

, which results in an accrued liability based on future benefit payments owed to each participant under the Plan, utilizing mortality assumptions and a high quality corporate bond discount rate.

Corporate

-owned life insurance policies were purchased as a potential funding source for this Plan. The Company had the ability to borrow against these policies or cash them in at any time. The balance sheet

reflected

a cash surrender value asset of

$22.3

million (net of

$5.5

million in loans and accrued interest) at

December 31, 2015.

Interest was paid on the borrowings at a rate of

13.13%,

offset by a fixed rate of return of

12.63%

on the borrowed portion of the cash surrender value of these policies, resulting in a net borrowing cost of

0.50%.

The fixed return on the non-borrowed cash surrender value of these policies is

4%.

In the

first

quarter of

2016,

we liquidated the corporate-owned life insurance policies with cash surrender value of

$28.1

million. We received

$22.4

million in proceeds, net of outstanding loans and accrued interest. The decision to liquidate was made after continued review of the financial stability of Genworth Life Insurance Company, the issuer of the policies.

The growth in the cash surrender value of these policies, net of re

lated premiums and plan administrative costs, is included in operating income. Interest charges for policy loans are included in interest expenses below operating income. The growth in cash surrender value of these policies is

not

taxable unless the policies are cashed in, while the interest paid is deductible for tax purposes. The liquidation of these policies in

2016

created approximately

$24.0

million in taxable income which was offset by net operating loss carryforwards.

The impact of the deferred compensation plan and corporate owned life insur

ance policies impact on net income is as follows (in thousands):

	201 7			201 6
Growth in cash surrender value of corporate-owned life insurance policies	$	-		$	301
Deferred compensation plan expenses		232			352
Operating loss impact		(232	)		(51	)
Interest expense on loans against corporate-owned life insurance polices		-			109
Net loss impact	$	(232	)	$	(160	)

The financial status of the deferred compensation plan based on actuarially valued benefits at

December 31

follows (in thousands):

	201 7			201 6
Change in benefit obligation:
Beginning benefit obligation	$	4,669		$	4,749
Interest cost		148			160
Actuarial loss (gain)		138			210
Benefits paid		(450	)		(450	)
Ending benefit obligation	$	4,505		$	4,669
Change in plan assets:
Beginning fair value of plan assets		-			-
Employer contributions		450			450
Benefits paid		(450	)		(450	)
Ending fair value of plan assets		-			-
Funded status	$	(4,505	)	$	(4,669	)

Amount recognized in the consolidated balance sheet

(in thousands):

	201 7			201 6
Current liabilities	$	(404	)	$	(450	)
Noncurrent liabilities		(4,101	)		(4,219	)
Total	$	(4,505	)	$	(4,669	)

Amount recognized in

accumulated other comprehensive loss (in thousands):

		201 7				201 6
Net loss		$	1,806			$	1,752

Components of net periodic benefit cost and other amounts recognized in other comprehensive

loss (in thousands):

	201 7			201 6
Net periodic benefit cost:
Interest cost	$	148		$	160
Amortization of net loss		84			72
Net periodic benefit cost	$	232		$	232
Other changes in plan assets and benefit obligations recognized in other comprehensive (loss) income:
Net loss	$	138		$	210
Amortization of net loss		(84	)		(72	)
Total recognized in other comprehensive loss		54			138
Total recognized in net periodic benefit cost and other comprehensive loss	$	286		$	370

Approximately $

95,000

in accumulated other comprehensive loss is expected to be recognized as components of net periodic benefit cost during

2018.

The assumptions used to determine the plan

’s financial status and postretirement benefit cost:

	201 7			201 6
Discount rate for funded status		3.15	%		3.50	%
Discount rate for benefit cost		3.50	%		3.55	%

Estimated future benefit payments

are as follows (in thousands):

201 8			$	404
201 9				395
20 20				384
202 1				368
202 2				355
2023	-	2027		1,514

Estimated contributions for 201 8			$	404

Supplemental retirement plan and other postretirement benefits

Benefits under the supplemental retirement ceased to accrue after

1995.

Our postretirement health care benefits were terminated for current employees effective

January 1, 2010.

Prior to this termination, we provided health care benefits to eligible retired employees between the ages of

and

and provide life insurance benefits to eligible retired employees from age

until death.

The financial status of

the plans at

December 31

follows (in thousands):

	Supplemental Retirement Plan						Other Postretirement Benefits
	201 7			201 6			201 7			201 6
Change in benefit obligation:
Beginning benefit obligation	$	1,879		$	1,952		$	710		$	827
Interest cost		64			68			23			23
Plan participants ’ contributions		-			-			51			46
Actuarial (gain) loss		68			14			61			(51	)
Benefits paid		(156	)		(155	)		(152	)		(135	)
Ending benefit obligation	$	1,855		$	1,879		$	693		$	710
Change in plan assets:
Beginning fair value of plan assets		-			-			-			-
Employer contributions		155			155			101			89
Plan participants ’ contributions		-			-			51			46
Benefits paid		(155	)		(155	)		(152	)		(135	)
Ending fair value of plan assets		-			-			-			-
Funded status	$	(1,855	)	$	(1,879	)	$	(693	)	$	(710	)

Amount recognized in the consolidated balance sheet

(in thousands):

	Supplemental Retirement Plan						Other Postretirement Benefits
	201 7			201 6			201 7			201 6
Current liabilities	$	(154	)	$	(155	)	$	(88	)	$	(88	)
Noncurrent liabilities		(1,701	)		(1,724	)		(605	)		(622	)
Total	$	(1,855	)	$	(1,879	)	$	(693	)	$	(710	)

Amount recognized in

accumulated other comprehensive loss (in thousands):

	Supplemental Retirement Plan				Other Postretirement Benefits
	201 7		201 6		201 7			201 6
Net loss (gain)	$	721	$	686	$	(111	)	$	(182	)

Components of net periodic benefit cost and other amounts recognized in other comprehensive

(loss) income (in thousands):

	Supplemental Retirement Plan				Other Postretirement Benefits
	201 7		201 6		201 7			201 6
Net periodic benefit cost :
Interest cost	$	64	$	68	$	22		$	23
Amortization of net loss (gain)		33		32		(10	)		(17	)
Net periodic benefit cost	$	97	$	100	$	12		$	6

Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
Net loss (gain)	$	68		$	14		$	61	$	(51	)
Amortization of net (loss) gain		(33	)		(32	)		10		17
Total recognized in other comprehensive (loss) income	$	35		$	(18	)	$	71	$	(34	)
Total recognized in net periodic benefit cost and other comprehensive (loss) income	$	132		$	82		$	83	$	(28	)

The amounts in accumulated other comprehensive

(loss) income that are expected to be recognized as components of net periodic benefit cost during

2018

are as follows (in thousands):

		Supplemental Retirement Plan				Other Postretirement Benefits
Net loss (gain)		$	38			$	(7	)

The assumptions used to determine the plan

’s financial status and postretirement benefit cost:

	Supplemental Retirement Plan						Other Postretirement Benefits
	201 7			201 6			201 7			201 6
Discount rate for funded status		3.20	%		3.55	%		2.95	%		3.20	%
Discount rate for benefit cost		3.55	%		3.65	%		3.20	%		3.20	%
Health care cost assumed trend rate for next year											6.00	%
Rate that the cost trend rate gradually declines to											5.50	%
Year that the rate reaches the rate it is assumed to remain at										2018

An increase or decrease in the assumed health care cost trend rate of

one

percentage point in each future year would

have

effect on the accumulated postretirement benefit obligation at

December 31, 2017

or annual postretirement benefit cost.

Estimated future benefit payments

are as follows (in thousands):

			Supplemental Retirement Plan		Other Postretirement Benefits
Estimated net future benefit payments:
2018			$	154	$	88
2019				151		84
2020				147		79
2021				144		73
2022				140		67
2023	-	2027		631		246

Estimated contributions for 2018			$	154	$	88

The accrued liabilities relating to th

ese plans are included in accrued salaries, wages and benefits and in long-term liabilities.