A subsidiary acquired in 2012 sponsors a defined benefit plan. The benefits under the defined benefit plan are based on each employee’s years of service and compensation. Effective February 28, 2007, the plan was closed to all new entrants, and effective February 28, 2010, all benefit accruals under the plan were frozen.

Net Periodic Pension Cost and Pension Benefit Obligation

Net periodic pension cost consists of the following components for the years ended December 31:



	Pension Benefits			Pension Benefits			Pension Benefits
	2018			2017			2016
Service cost	$	—		$	—		$	—
Interest cost on benefit obligation	1,641			1,725			1,855
Expected return on plan assets	(1,948		)	(1,830		)	(1,863		)
Curtailment and settlements	1,039			—			929
Amortization of actuarial losses	258			222			137
Net periodic benefit cost	$	990		$	117		$	1,058

The above costs are included within Other income, net on the Consolidated Statements of Operations.

The following weighted average assumptions were used to determine net periodic costs at December 31:



	Pension Benefits		Pension Benefits		Pension Benefits
	2018		2017		2016
Discount rate	3.83	%	4.32	%	4.69	%
Expected return on plan assets	7.00	%	7.40	%	7.40	%
Rate of compensation increase	N/A		N/A		N/A

The expected return on plan assets is a long-term assumption established by considering historical and anticipated returns of the asset classes invested in by the pension plan and the allocation strategy currently in place among those classes.

Other changes in plan assets and benefit obligation recognized in Other Comprehensive Income (Loss) consist of the following components for the years ended December 31:



	Pension Benefits			Pension Benefits
	2018			2017
Current year actuarial (gain) loss	$	(520	)	$	1,558
Amortization of actuarial loss	(258		)	(222		)
Total recognized in other comprehensive (income) loss	$	(778	)	$	1,336
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	212		$	1,453

The following table summarizes the change in benefit obligations and fair values of plan assets for the years ended December 31:



	2018			2017
Change in benefit obligation:
Benefit obligation, Beginning balance	$	43,750		$	40,722
Interest Cost	1,641			1,725
Actuarial losses	(3,522		)	3,088
Benefits paid	(3,931		)	(1,785		)
Benefit obligation, Ending balance	37,938			43,750
Change in plan assets:
Fair value of plan assets, Beginning balance	27,977			24,482
Actual return on plan assets	(2,093		)	3,360
Employer contributions	1,228			1,920
Benefits paid	(3,931		)	(1,785		)
Fair value of plan assets, Ending balance	23,181			27,977
Unfunded status	$	14,757		$	15,773

Amounts recognized in the balance sheet at December 31 consist of the following:



	Pension Benefits		Pension Benefits
	2018		2017
Non-current liability	$	14,757	$	15,773
Net amount recognized	$	14,757	$	15,773

Amounts recognized in Accumulated Other Comprehensive Loss before income taxes consists of the following components for the years ended December 31:



	Pension Benefits		Pension Benefits
	2018		2017
Accumulated net actuarial losses	$	12,878	$	13,656
Amount recognized	$	12,878	$	13,656

In 2019, the Company estimates that it will recognize $266 of net actuarial losses from accumulated other comprehensive loss, net into net periodic cost related to the pension plan.

The following weighted average assumptions were used to determine benefit obligations as of December 31:



	Pension Benefits		Pension Benefits
	2018		2017
Discount rate	4.42	%	3.83	%
Rate of compensation increase	N/A		N/A

The discount rate assumptions at December 31, 2018 and 2017 were determined independently. A yield curve was produced for a universe containing the majority of U.S.-issued AA-graded corporate bonds, all of which were non-callable (or callable with make-whole provisions). The discount rate was developed as the level equivalent rate that would produce the same present value as that using spot rates aligned with the projected benefit payments.

Fair Value of Plan Assets and Investment Strategy

The fair value of the plan assets as of December 31 is as follows:



	December 31, 2018		Level 1		Level 2		Level 3
Asset Category:
Money Market Fund – Short Term Investments	$	1,736	$	1,736	$	—	$	—
Mutual Funds	21,445		21,445		—		—
Total	$	23,181	$	23,181	$	—	$	—



	December 31, 2017		Level 1		Level 2		Level 3
Asset Category:
Money Market Fund – Short Term Investments	$	1,695	$	1,695	$	—	$	—
Mutual Funds	26,282		26,282		—		—
Total	$	27,977	$	27,977	$	—	$	—

The pension plans weighted-average asset allocation for the years ended December 31, 2018, and 2017 are as follows:



	Target Allocation		Actual Allocation		Actual Allocation
	2018		2018		2017
Asset Category:
Equity Securities	65.0	%	67.0	%	68.9	%
Debt Securities	30.0	%	25.5	%	25.0	%
Cash/Cash Equivalents and Short Term Investments	5.0	%	7.5	%	6.1	%
	100.0	%	100.0	%	100.0	%

The goals of the pension plan investment program are to fully fund the obligation to pay retirement benefits in accordance with the plan documents and to provide returns that, along with appropriate funding from the Company, maintain an asset/liability ratio that is in compliance with all applicable laws and regulations and assures timely payment of retirement benefits.

Equity securities primarily include investments in large-cap and mid-cap companies primarily located in the United States, as well as a smaller percentage invested in large-cap and mid-cap companies located outside of the United States. Debt securities are diversified across different asset types with bonds issued in the United States as well as outside the United States. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the preceding tables.

Cash Flows

The pension plan contributions are deposited into a trust, and the pension plan benefit payments are made from trust assets. During 2018, the Company contributed $1,228 to the pension plan. The Company estimates that it will make approximately $1,156 in contributions to the pension plan in 2019. Fluctuations in actual market returns as well as changes in general interest rates will result in changes in the market value of plan assets and may result in increased or decreased retirement benefit costs and contributions in future periods.

The following estimated benefit payments, which reflect expected future service, as appropriate, are expected to be paid in the years ending December 31:



Period	Amount
2019	$	1,690
2020	1,857
2021	1,848
2022	1,912
2023	2,139
2024 – 2027	11,047