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Pension Plans and Other Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]  
Summary of contributions to qualified defined contribution plan, 401(k), non-qualified defined contribution plan and total assets of the plans
Contributions to employees' accounts under the qualified defined contribution plan, the 401(k) plan and the non-qualified defined contribution plan, as well as total assets of the plans, were as follows:
 
 
 
Year Ended December 31,
 
 
 
2016
 
2015
 
2014
 
401(k) plan
 
 
 
 
 
 
 
 
 
 
Contributions to employees’ accounts
 
$
6,918
 
$
6,466
 
$
2,753
 
Total assets at the end of the year
 
 
177,352
 
 
161,956
 
 
132,053
 
 
 
 
 
 
 
 
 
 
 
 
Qualified defined contribution plan
 
 
 
 
 
 
 
 
 
 
Contributions to employees’ accounts
 
 
-
 
 
-
 
 
4,580
 
Total assets at the end of the year
 
 
-
 
 
9,118
 
 
123,008
 
 
 
 
 
 
 
 
 
 
 
 
Non-qualified defined contribution plan
 
 
 
 
 
 
 
 
 
 
Contributions to employees’ accounts
 
 
72
 
 
122
 
 
74
 
Total assets at the end of the year
 
 
-
 
 
-
 
 
-
 
Defined benefit plan and the supplemental defined benefit plans
The change in the Company’s AOCI for the defined benefit plans for the year ended December 31, 2014 was primarily attributable to loss recognition in 2014, due to settlement accounting as well as loss amortization included in net periodic benefit cost for 2014. This loss recognition was partially offset by liability losses in 2014 due to a decrease in the discount rate as well as a change in the mortality assumption.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Supplemental
 
 
 
Defined Benefit Plan
 
 
Defined Benefit Plans
 
 
 
Year Ended December 31,
 
 
Year Ended December 31,
 
 
 
2016
 
2015
 
 
2014
 
 
2016
 
2015
 
 
2014
 
Components of net periodic pension (income) expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefit accrual
 
$
-
 
$
-
 
 
$
-
 
 
$
-
 
$
-
 
 
$
-
 
Other expenses
 
 
650
 
 
450
 
 
 
360
 
 
 
-
 
 
-
 
 
 
-
 
Interest cost
 
 
1,244
 
 
1,189
 
 
 
1,679
 
 
 
687
 
 
654
 
 
 
716
 
Expected return on plan assets
 
 
(1,675)
 
 
(1,875)
 
 
 
(2,402)
 
 
 
-
 
 
-
 
 
 
-
 
Settlement loss
 
 
-
 
 
-
 
 
 
2,668
 
 
 
-
 
 
-
 
 
 
-
 
Amortization of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior service cost
 
 
-
 
 
-
 
 
 
-
 
 
 
-
 
 
-
 
 
 
-
 
Actuarial loss
 
 
393
 
 
1,626
 
 
 
1,371
 
 
 
233
 
 
273
 
 
 
157
 
Net periodic pension expense
 
$
612
 
$
1,390
 
 
$
3,676
 
 
$
920
 
$
927
 
 
$
873
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Changes in plan assets and benefit obligations included in other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior service cost
 
$
-
 
$
-
 
 
$
-
 
 
$
-
 
$
-
 
 
$
-
 
Net actuarial loss (gain)
 
 
175
 
 
930
 
 
 
(1,037)
 
 
 
488
 
 
(845)
 
 
 
2,431
 
Amortization of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior service cost
 
 
-
 
 
-
 
 
 
-
 
 
 
-
 
 
-
 
 
 
(2)
 
Actuarial loss
 
 
(393)
 
 
(1,626)
 
 
 
(1,371)
 
 
 
(233)
 
 
(273)
 
 
 
(157)
 
Total recognized in other comprehensive income (loss)
 
$
(218)
 
$
(696)
 
 
$
(2,408)
 
 
$
255
 
$
(1,118)
 
 
$
2,272
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average assumptions used to determine expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
 
4.20
%
 
3.66
%
 
 
4.46
%
 
 
4.20
%
 
3.66
%
 
 
4.46
%
Expected return on plan assets
 
 
6.50
%
 
6.75
%
 
 
7.50
%
 
 
6.50
%
 
*
 
 
 
*
 
Annual rate of salary increase
 
 
*
 
 
*
 
 
 
*
 
 
 
*
 
 
*
 
 
 
*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average assumptions used to determine benefit obligations as of December 31:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
 
3.90
%
 
4.20
%
 
 
3.66
%
 
 
3.90
%
 
4.20
%
 
 
3.66
%
Expected return on plan assets
 
 
6.50
%
 
6.75
%
 
 
7.50
%
 
 
6.50
%
 
*
 
 
 
*
 
Annual rate of salary increase
 
 
*
 
 
*
 
 
 
*
 
 
 
*
 
 
*
 
 
 
*
 
 
 
 
*
Not applicable.
Fair value hierarchy for the Company's defined benefit pension plan assets
Fair values of the equity security funds and fixed income funds have been determined from public quotations. The following table presents the fair value hierarchy for the Company’s defined benefit pension plan assets, excluding cash held.
 
 
 
 
 
 
Fair Value Measurements at
 
 
 
 
 
 
Reporting Date Using
 
 
 
Total
 
Level 1
 
Level 2
 
Level 3
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset category
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity security funds (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
 
$
9,836
 
$
-
 
$
9,836
 
$
-
 
International
 
 
2,492
 
 
-
 
 
2,492
 
 
-
 
Fixed income funds
 
 
12,402
 
 
-
 
 
12,402
 
 
-
 
Short-term investment funds
 
 
716
 
 
716
 
 
-
 
 
-
 
Total
 
$
25,446
 
$
716
 
$
24,730
 
$
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset category
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity security funds (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
 
$
10,844
 
$
-
 
$
10,844
 
$
-
 
International
 
 
2,681
 
 
-
 
 
2,681
 
 
-
 
Fixed income funds
 
 
13,720
 
 
-
 
 
13,720
 
 
-
 
Short-term investments funds
 
 
422
 
 
422
 
 
-
 
 
-
 
Total
 
$
27,667
 
$
422
 
$
27,245
 
$
-
 
 
 
(1)
None of the trust fund assets for the defined benefit pension plan have been invested in shares of HMEC’s common stock.
Summary of change in accumulated postretirement benefit obligations
A one percentage point change in the assumed health care cost trend rate for each year would change the accumulated postretirement benefit obligations as follows:
 
 
 
December 31,
 
 
 
2014
 
Accumulated postretirement benefit obligations
 
 
 
 
Effect of a one percentage point increase
 
 
*
 
Effect of a one percentage point decrease
 
 
*
 
 
 
 
 
 
Service and interest cost components of the net periodic postretirement benefit expense
 
 
 
 
Effect of a one percentage point increase
 
 
*
 
Effect of a one percentage point decrease
 
 
*
 
 
 
 
 
 
Weighted average assumptions used to determine benefit obligations as of December 31:
 
 
 
 
Discount rate
 
 
3.66
%
Healthcare cost trend rate
 
 
*
 
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)
 
 
*
 
Year the rate is assumed to reach the ultimate trend rate
 
 
*
 
Expected return on plan assets
 
 
*
 
 
 
 
 
 
Weighted average assumptions used to determine net periodic benefit cost for the years ended December 31:
 
 
 
 
Discount rate
 
 
4.46
%
Healthcare cost trend rate
 
 
*
 
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)
 
 
*
 
Year the rate is assumed to reach the ultimate trend rate
 
 
*
 
Expected return on plan assets
 
 
*
 
 
*
Not applicable.
Summary of minimum funding requirement and the expected full year contributions for the Company's plans
The following table discloses that minimum funding requirement and the expected full year contributions for the Company’s plans.
 
 
 
Defined Benefit Pension Plans
 
 
 
Defined
 
Supplemental
 
 
 
Benefit
 
Defined Benefit
 
 
 
Plan
 
Plans
 
 
 
 
 
 
 
 
 
Minimum funding requirement for 2017
 
$
-
 
 
N/A
 
Expected contributions (approximations) for the year ended December 31, 2017 as of the time of this Form 10-K (1)
 
 
-
 
$
1,318
 
 
N/A - Not applicable.
(1)
  HMEC’s Annual Report on Form 10-K for the year ended December 31, 2016.
Estimated future benefit payments
Estimated future benefit payments as of December 31, 2016 were as follows:
 
 
 
2017
 
2018
 
2019
 
2020
 
2021
 
2022-2026
 
Pension plans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defined benefit plan
 
$
2,850
 
$
2,752
 
$
3,043
 
$
2,431
 
$
2,180
 
$
10,275
 
Supplemental retirement plans
 
 
1,318
 
 
1,305
 
 
1,291
 
 
1,274
 
 
1,256
 
 
5,909
 
Postretirement Benefit Costs [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Funded status of the defined benefit, supplemental retirement pension plans and postretirement benefits other than pensions
The following table presents the funded status of postretirement benefits other than pensions of active and retired employees (including employees on disability more than 2 years) as of December 31, 2014 (the measurement date) reconciled with amounts recognized in the Company's Consolidated Balance Sheets. The tables present postretirement expenses and liabilities only for those years in which the Company incurred expenses or accrued liabilities.
 
 
 
December 31,
 
 
 
2014
 
Change in accumulated postretirement benefit obligations:
 
 
 
 
Accumulated postretirement benefit obligations at beginning of year
 
$
1,130
 
Changes during fiscal year:
 
 
 
 
Service cost
 
 
-
 
Interest cost
 
 
46
 
Plan amendment
 
 
-
 
Settlements
 
 
(965)
 
Employer payments net of participant contributions
 
 
(95)
 
Actuarial (gain) loss
 
 
(116)
 
Accumulated postretirement benefit obligations at end of year
 
$
-
 
Unfunded status
 
$
-
 
 
 
 
 
 
Total amount recognized in Consolidated Balance Sheets, all in Other liabilities
 
$
-
 
 
 
 
 
 
Amounts recognized in accumulated other comprehensive income (loss) (“AOCI”):
 
 
 
 
Prior service cost (credit)
 
$
-
 
Net actuarial loss (gain)
 
 
-
 
Total amount recognized in AOCI
 
$
-
 
 
 
 
Year Ended
 
 
 
December 31,
 
 
 
2014
 
Components of net periodic benefit:
 
 
 
 
Service cost
 
$
-
 
Interest cost
 
 
46
 
Curtailment gain
 
 
(713)
 
Settlement gain
 
 
(1,439)
 
Amortization of prior service cost
 
 
(628)
 
Amortization of prior gain
 
 
(246)
 
Net periodic income
 
$
(2,980)
 
Pension Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Funded status of the defined benefit, supplemental retirement pension plans and postretirement benefits other than pensions
The following tables summarize the funded status of the defined benefit and supplemental retirement pension plans as of December 31, 2016, 2015 and 2014 (the measurement dates) and identify (1) the assumptions used to determine the projected benefit obligation and (2) the components of net pension cost for the defined benefit plan and supplemental retirement plans for the following periods:
 
 
 
 
 
 
 
 
 
 
 
 
Supplemental
 
 
 
Defined Benefit Plan
 
Defined Benefit Plans
 
 
 
December 31,
 
December 31,
 
 
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
 
Change in benefit obligation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Projected benefit obligation at beginning of year
 
$
31,233
 
$
34,279
 
$
39,483
 
$
17,004
 
$
18,524
 
$
16,706
 
Service cost
 
 
650
 
 
450
 
 
360
 
 
-
 
 
-
 
 
-
 
Interest cost
 
 
1,244
 
 
1,189
 
 
1,679
 
 
687
 
 
654
 
 
716
 
Plan amendments
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Actuarial loss (gain)
 
 
(220)
 
 
(1,371)
 
 
1,254
 
 
488
 
 
(845)
 
 
2,431
 
Benefits paid
 
 
(3,500)
 
 
(3,314)
 
 
(1,737)
 
 
(1,332)
 
 
(1,329)
 
 
(1,329)
 
Settlements
 
 
-
 
 
-
 
 
(6,760)
 
 
-
 
 
-
 
 
-
 
Projected benefit obligation at end of year
 
$
29,407
 
$
31,233
 
$
34,279
 
$
16,847
 
$
17,004
 
$
18,524
 
Change in plan assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
 
$
27,667
 
$
31,408
 
$
35,879
 
$
-
 
$
-
 
$
-
 
Actual return on plan assets
 
 
1,766
 
 
200
 
 
2,535
 
 
-
 
 
-
 
 
-
 
Employer contributions
 
 
-
 
 
-
 
 
2,000
 
 
1,332
 
 
1,329
 
 
1,329
 
Benefits paid
 
 
(3,500)
 
 
(3,314)
 
 
(1,737)
 
 
(1,332)
 
 
(1,329)
 
 
(1,329)
 
Expenses paid
 
 
(487)
 
 
(627)
 
 
(509)
 
 
-
 
 
-
 
 
-
 
Settlements
 
 
-
 
 
-
 
 
(6,760)
 
 
-
 
 
-
 
 
-
 
Fair value of plan assets at end of year
 
$
25,446
 
$
27,667
 
$
31,408
 
$
-
 
$
-
 
$
-
 
Funded status
 
$
(3,961)
 
$
(3,566)
 
$
(2,871)
 
$
(16,847)
 
$
(17,004)
 
$
(18,524)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prepaid (accrued) benefit expense
 
$
8,653
 
$
9,265
 
$
10,656
 
$
(11,210)
 
$
(11,622)
 
$
(12,024)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total amount recognized in
Consolidated Balance Sheets, all in Other liabilities
 
$
(3,961)
 
$
(3,566)
 
$
(2,871)
 
$
(16,847)
 
$
(17,004)
 
$
(18,524)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amounts recognized in accumulated other comprehensive income (loss) (“AOCI”):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior service cost
 
$
-
 
$
-
 
$
-
 
$
-
 
$
-
 
$
-
 
Net actuarial loss
 
 
12,613
 
 
12,831
 
 
13,527
 
 
5,637
 
 
5,382
 
 
6,500
 
Total amount recognized in AOCI
 
$
12,613
 
$
12,831
 
$
13,527
 
$
5,637
 
$
5,382
 
$
6,500
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Information for pension plans with an accumulated benefit obligation greater than plan assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Projected benefit obligation
 
$
29,407
 
$
31,233
 
$
34,279
 
$
16,847
 
$
17,004
 
$
18,524
 
Accumulated benefit obligation
 
 
29,407
 
 
31,233
 
 
34,279
 
 
16,847
 
 
17,004
 
 
18,524
 
Fair value of plan assets
 
 
25,446
 
 
27,667
 
 
31,408
 
 
-
 
 
-
 
 
-