Benefit Plans

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

There were no Pension Plan contributions for the three-month and nine-month periods ended September 30, 2018 and 2017.

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



	Three Months Ended September 30,						Nine Months Ended September 30,						Affected Line Item in the Consolidated Condensed Statements of Income
(In thousands)	2018			2017			2018			2017
Service cost	$	1,637		$	1,317		$	4,911		$	3,951		Employee benefits
Interest cost	1,309			1,271			3,927			3,813			Other components of net periodic pension benefit income
Expected return on plan assets	(3,354		)	(2,863		)	(10,062		)	(8,589		)	Other components of net periodic pension benefit income
Amortization of prior service cost	—			—			—			—			Other components of net periodic pension benefit income
Recognized net actuarial loss	340			144			1,020			432			Other components of net periodic pension benefit income
Net periodic pension benefit income	$	(68	)	$	(131	)	$	(204	)	$	(393	)

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 and nine months ended September 30, 2018 and 2017 was as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,				Affected Line Item in the Consolidated Condensed Statement of Income
(In thousands)	2018		2017		2018		2017
Service cost	$	157	$	185	$	635	$	555	Employee benefits
Interest cost	188		161		349		483		Miscellaneous expense
Total SERP expense	$	345	$	346	$	984	$	1,038

Previously, the net periodic benefit income/expense related to Park’s Pension Plan and the expense related to the SERP Agreements had been recorded within the "Employee benefits" line item. 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 September 30, 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 and nine months ended September 30, 2017.



(in thousands)	Three Months Ended September 30, 2017		Nine Months Ended September 30, 2017
Other components of net periodic pension benefit income
As previously reported	$	—	$	—
As reported under new guidance	1,448		4,344

Total other income
As previously reported	$	22,089	$	58,847
As reported under new guidance	23,537		63,191

Employee benefits expense
As previously reported	$	4,656	$	14,756
As reported under new guidance	5,943		18,617

Miscellaneous expense
As previously reported	$	2,764	$	5,847
As reported under new guidance	2,925		6,330

Total other expense
As previously reported	$	49,811	$	145,379
As reported under new guidance	51,259		149,723