Historically, the Company maintained a non-contributory defined benefit pension plan that covered substantially all U.S. employees who were employed at December 31, 2011. After that date, no further benefits were accrued in the plan. For the frozen pension plan, benefits were based primarily on years of service and, for certain employees, levels of compensation.

The Company maintains supplemental non-qualified plans for certain officers and other key employees, and an Employee Savings and Stock Option Plan (“ESSOP”) for the majority of the U.S. employees.

The Company also has a postretirement healthcare benefit plan that provides medical benefits for certain U.S. retirees and eligible dependents hired prior to November 1, 2004. Employees are eligible to receive postretirement healthcare benefits upon meeting certain age and service requirements. No employees hired after October 31, 2004 are eligible to receive these benefits. This plan requires employee contributions to offset benefit costs.

Amounts included in accumulated other comprehensive income (loss), net of tax, at December 31, 2018 that have not yet been recognized in net periodic benefit cost are as follows:

Amounts included in accumulated other comprehensive income (loss), net of tax, at December 31, 2018 expected to be recognized in net periodic benefit cost during the fiscal year ending December 31, 2019 are as follows:

In 2018, the Company completed termination of its non-contributory defined benefit pension plan. In connection with the Company’s activities to terminate the plan, lump-sum distributions were made in the second quarter of 2018 to individuals who elected lump sum distributions, including rolling over their accounts or transferring them to a qualified Company plan. In the third quarter of 2018, annuity contracts were purchased to settle obligations for the remaining participants. As a result, the Company recorded pre-tax settlement charges of $8.2 million and $11.7 million during the second and third quarters of 2018, respectively.

The following table sets forth the components of net periodic pension cost for the years ended December 31, 2018, 2017 and 2016 based on a December 31 measurement date:

	2018			2017			2016
	(In thousands)
Service cost - benefits earned during the year	$	—		$	2		$	3
Interest cost on projected benefit obligations		305			1,228			1,711
Expected return on plan assets		(835	)		(1,596	)		(2,199	)
Amortization of net loss		262			525			575
Settlement expense		19,900			641			1,510
Net periodic pension cost	$	19,632		$	800		$	1,600

Actuarial assumptions used in the determination of the net periodic pension cost are:

	2018			2017			2016
Discount rate		2.00	%		3.90	%		4.14	%
Expected long-term return on plan assets		3.00	%		4.00	%		5.25	%
Rate of compensation increase	n/a			n/a			n/a

The Company's discount rate assumptions for the qualified pension plan are based on the average yield of a hypothetical high quality bond portfolio with maturities that approximately match the estimated cash flow needs of the plan. The assumptions for expected long-term rates of return on assets are based on historical experience and estimated future investment returns, taking into consideration anticipated asset allocations, investment strategies and the views of various investment professionals. The use of these assumptions can cause volatility if actual results differ from expected results.

The following table provides a reconciliation of benefit obligations, plan assets and funded status based on a December 31 measurement date:

	2018			2017
	(In thousands)
Change in benefit obligation:
Benefit obligation at beginning of plan year	$	42,898		$	42,030
Service cost		—			2
Interest cost		305			1,228
Actuarial loss		(198	)		2,940
Benefits paid		(43,005	)		(3,302	)
Projected benefit obligation at measurement date	$	—		$	42,898

Change in plan assets:
Fair value of plan assets at beginning of plan year	$	41,517		$	42,061
Actual return on plan assets		(1,375	)		1,933
Company contribution		2,860			825
Benefits paid		(43,002	)		(3,302	)
Fair value of plan assets at measurement date	$	—		$	41,517

Funded status of the plan:
Benefit obligation in excess of plan assets	$	—		$	(1,381	)
Benefit plan assets in excess of benefit obligation		—			—
Pension liability	$	—		$	(1,381	)

The actuarial assumption used in the determination of the benefit obligation of the above data is:

The fair value of the qualified pension plan assets was $0 at December 31, 2018 and $41.5 million at December 31, 2017.

The Company made net contributions of $1.6 million and $1.3 million in the second and third quarter of 2018, respectively, related to the 2017 plan year. No additional contributions will be required as the pension plan termination was finalized in 2018.

The fair value of the Company's qualified pension plan assets by category as of and for the year ended December 31, 2017 was as follows:

	2017
	Market value		Quoted prices in active markets for identical assets (Level 1)		Significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(In thousands)
Fixed income funds (a)	$	40,776		—	$	40,776		—
Cash/cash equivalents (b)		741		741		—		—
Total	$	41,517	$	741	$	40,776	$	—

(a)	The Fixed income funds consist of bonds. In aggregate, the funds seek to provide investment results approximating the return of the Plan’s obligations. The funds consist of long credit bonds, intermediate credit bonds, short duration government credit bonds and bank loans.

(b)	This category comprises the cash held to pay beneficiaries. The fair value of cash equals its book value.

The Company also maintains supplemental non-qualified unfunded plans for certain officers and other key employees. The expense for these plans was not material for 2018, 2017 or 2016. The discount rate used to measure the net periodic pension cost was 2.16% for 2018, 1.91% for 2017 and 4.14% for 2016. The amount accrued was $2.3 million and $2.1 million as of December 31, 2018 and 2017, respectively.

The Company has a postretirement plan that provides medical benefits for certain U.S. retirees and eligible dependents hired prior to November 1, 2004. The following table sets forth the components of net periodic postretirement benefit cost for the years ended December 31, 2018, 2017 and 2016:

	2018			2017			2016
	(In thousands)
Service cost, benefits attributed for service of active employees for the period	$	124		$	121		$	137
Interest cost on the accumulated postretirement benefit obligation		189			195			257
Net gain		(30	)		(49	)		—
Amortization of prior service credit		(13	)		(25	)		(25	)
Net periodic postretirement benefit cost	$	270		$	242		$	369

The discount rate used to measure the net periodic postretirement benefit cost was 3.65% for 2018, 4.16% for 2017 and 4.39% for 2016. It is the Company's policy to fund healthcare benefits on a cash basis. Because the plan is unfunded, there are no plan assets. The following table provides a reconciliation of the projected benefit obligation at the Company's December 31 measurement date:

	2018			2017
	(In thousands)
Benefit obligation at beginning of year	$	6,073		$	6,131
Service cost		124			121
Interest cost		189			195
Actuarial gain		(511	)		(180	)
Plan participants' contributions		547			564
Benefits paid		(871	)		(758	)
Benefit obligation and funded status at end of year	$	5,551		$	6,073

	2018		2017
	(In thousands)
Accrued compensation and employee benefits	$	367	$	370
Accrued non-pension postretirement benefits		5,184		5,703
Amounts recognized at December 31	$	5,551	$	6,073

The discount rate used to measure the accumulated postretirement benefit obligation was 4.33% for 2018 and 3.65% for 2017. The Company's discount rate assumptions for its postretirement benefit plan are based on the average yield of a hypothetical high quality bond portfolio with maturities that approximately match the estimated cash flow needs of the plan. Because the plan requires the Company to establish fixed Company contribution amounts for retiree healthcare benefits, future healthcare cost trends do not generally impact the Company's accruals or provisions.

Estimated future benefit payments of postretirement benefits, assuming increased cost sharing, expected to be paid in each of the next five years beginning with 2019 are $0.4 million through 2023, with an aggregate of $2.0 million for the five years thereafter. These amounts can vary significantly from year to year because the cost sharing estimates can vary from actual expenses as the Company is self-insured.

The ESSOP includes a voluntary 401(k) savings plan that allows certain employees to defer up to 20% of their income on a pretax basis subject to limits on maximum amounts. The Company matches 25% of each employee’s contribution, with the match percentage applying to a maximum of 7% of each employee's salary. The match is paid using the Company's Common Stock released through the ESSOP loan payments. For ESSOP shares purchased prior to 1993, compensation expense is recognized based on the original purchase price of the shares released and dividends on unreleased shares are charged to compensation expense. For shares purchased in or after 1993, expense is based on the market value of the shares on the date released and dividends on unreleased shares are charged to compensation expense. Compensation expense of $0.5 million was recognized for the match in 2018 and 2017 compared to $0.4 in 2016.

On December 31, 2010, the Company froze the qualified pension plan for its non-union participants and formed a new defined contribution feature within the ESSOP plan in which each employee received a similar benefit. On December 31, 2011, the Company froze the qualified pension plan for its union participants and included them in the same defined contribution feature within the ESSOP. Compensation expense under the defined contribution feature totaled $3.0 million in 2018 and $2.8 million in 2017.