17. Defined Benefit Pension Obligation

On March 1, 2013, the Company established a defined benefit pension plan for employees in its Switzerland subsidiary. The plan provides benefits to employees upon retirement, death or disability. The Company uses December 31 as the year-end measurement date for this plan.

Summarized information regarding changes in the plan obligations and plan assets, the funded status and the amounts recorded as of December 31, 2014 is as follows:


*In thousands*	2014			2013
Benefit obligation, beginning of year	$	7,876		$	—
Benefit obligation at plan establishment		—			5,621
Service cost		1,081			994
Interest cost		163			105
Plan participants’ contributions		486			283
Actuarial loss (gain)		3,057			(192	)
Employee vested funds brought to plan, net		2,183			1,065
Translation gain		(636	)

Benefit obligation, end of year		14,210			7,876

Fair value of plan assets, beginning of year		5,998			—
Fair value of plan assets at plan establishment		—			3,853
Actual return on plan assets		130			77
Employer contributions		1,285			720
Plan participants’ contributions		483			283
Employee vested funds brought to plan, net		2,183			1,065
Translation loss		(459	)		—

Fair value of plan assets, end of year		9,620			5,998

Unfunded liability as of December 31, 2014	$	4,590		$	1,878

This unfunded liability is recognized in other long-term liabilities in the accompanying consolidated balance sheet as of December 31, 2014 and 2013.

The projected benefit obligation, the accumulated benefit obligation and the fair value of the plan assets as of December 31, 2014 and 2013 were as follows:


*In thousands*	2014		2013
Projected benefit obligation	$	14,210	$	7,876
Accumulated benefit obligation	$	13,839	$	7,947
Fair value of plan assets	$	9,619	$	5,998

The net periodic benefit cost for the defined benefit pension plan for the year ended December 31, 2014 and 2013 were as follows:


*In thousands*	2014			2013
Service cost	$	1,081		$	994
Interest cost		163			105
Expected return on plan assets		(137	)		(85	)
Amortization of prior service cost		150			134

Net periodic benefit cost	$	1,257		$	1,148

Other changes in the plan assets and the benefit obligation that are recognized in accumulated other comprehensive income (loss) and other comprehensive loss for the years ended December 31, 2014 and 2013 were as follows:


*In thousands*	2014			2013
Pension liability OCI, beginning of year	$	(1,495	)
Establishment of plan		—		$	(1,768	)
Net gain		(3,014	)		139
Amortization of prior service cost		150			134

Total	$	(4,359	)	$	(1,495	)

The prior service cost for the defined benefit pension plan that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year is $275.

The assumptions used to determine the benefit obligation at December 31, 2014 and 2013 were as follows:


	2014			2013
Discount rate		1.25	%		2.25	%
Rate of compensation		1.50	%		1.50	%

The assumptions used to determine net periodic benefit costs for 2014 and 2013 were as follows:


	2014			2013
Discount rate		1.25	%		2.00	%
Expected long-term return on plan		1.25	%		2.00	%
Rate of compensation increase		1.50	%		1.50	%

The assets of the plan are held in a collective investment account. All plan investments are classified as level 2 within the fair value hierarchy.

The Company expects to contribute approximately $1.8 million to its defined benefit pension plan in 2015.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:


*In thousands*
2015	$	588
2016		639
2017		678
2018		704
2019		730
2020-2024		4,126

	$	7,465