Benefit Plans

Park has a noncontributory defined benefit pension plan covering substantially all of its employees. The plan provides benefits based on an employee’s years of service and compensation.

There were no pension plan contributions for the three-month periods ended March 31, 2018 and 2017.

The following table shows the components of net periodic benefit income:



	Three Months Ended March 31,						Affected Line Item in the Consolidated Condensed Statement of Income
(In thousands)	2018			2017
Service cost	$	1,637		$	1,317		Employee benefits
Interest cost	1,309			1,271			Other components of net periodic benefit income
Expected return on plan assets	(3,354		)	(2,863		)	Other components of net periodic benefit income
Amortization of prior service cost	—			—			Other components of net periodic benefit income
Recognized net actuarial loss	340			144			Other components of net periodic benefit income
Net periodic benefit income	$	(68	)	$	(131	)

Park has entered into Supplemental Executive Retirement Plan Agreements (the “SERP Agreements”) with certain key officers of the Corporation and its subsidiaries which provide defined pension benefits in excess of limits imposed by federal tax law. The expense for the Corporation related to the SERP Agreements for the three months ended March 31, 2018 and 2017 was as follows:



	Three Months Ended March 31,				Affected Line Item in the Consolidated Condensed Statement of Income
(In thousands)	2018		2017
Service cost	$	185	$	233	Employee benefits
Interest cost	161		117		Miscellaneous expense
Total SERP expense	$	346	$	350

Previously, the net periodic benefit income/expense related to Park’s Pension and SERP Agreements had been recorded within employee benefits.

During the first quarter of 2018, Park adopted ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement. This ASU requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component. This ASU is required to be applied retrospectively to all periods presented. For all periods presented, this resulted in an increase in other income and an offsetting increase in other expense with no change to net income. As a practical expedient, Park used the amounts disclosed in "Note 12 - Pension Plan" of the Notes to Unaudited Consolidated Condensed Financial Statements, included under Item 1 of Part I of Park's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017 as the estimation basis for applying the retrospective presentation requirements.

The following table summarizes the impact of retrospective application of this ASU to the consolidated condensed statement of income for the three months ended March 31, 2017.



(in thousands)	Three Months Ended March 31, 2017
Other components of net periodic benefit income
As previously reported	$	—
As reported under new guidance	1,448

Total other income
As previously reported	$	17,507
As reported under new guidance	18,955

Employee benefits expense
As previously reported	$	5,181
As reported under new guidance	6,468

Miscellaneous expense
As previously reported	$	1,495
As reported under new guidance	1,656

Total other expense
As previously reported	$	47,462
As reported under new guidance	48,910