RETIREMENT PLANS

We have an unfunded salary continuation plan covering certain directors, officers and other key members of management. We purchase life insurance policies on certain participants to provide in part for future liabilities. Cash surrender value of these policies, totaling $7.5 million and $6.9 million at December 31, 2016 and 2015, respectively, are included in other non-current assets in the company's consolidated balance sheets. Subject to certain vesting requirements, the plan provides for a benefit based on final average compensation, which becomes payable on the employee's death or upon attaining age 65, if retired. The plan was closed to new participants effective February 3, 2011. We have measured the plan assets and obligations of our salary continuation plan for all periods presented.

The following table summarizes the changes in plan benefit obligations:



Year Ended December 31,	2016			2015
(Dollars in thousands)
Change in benefit obligation
Beginning benefit obligation	$	28,399		$	30,047
Service cost	—			44
Interest cost	1,216			1,230
Actuarial gain	(464		)	(1,372		)
Benefit payments	(1,539		)	(1,550		)
Ending benefit obligation	$	27,612		$	28,399



Year Ended December 31,	2016			2015
(Dollars in thousands)

Change in plan assets
Fair value of plan assets at beginning of year	$	—		$	—
Employer contribution	1,539			1,550
Benefit payments	(1,539		)	(1,550		)
Fair value of plan assets at end of year	$	—		$	—

Funded Status	$	(27,612	)	$	(28,399	)

Amounts recognized in the consolidated balance sheets consist of:
Accrued expenses	(1,177		)	(1,524		)
Other non-current liabilities	(26,435		)	(26,875		)
Net amount recognized	$	(27,612	)	$	(28,399	)

Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss	$	5,692		$	6,492
Prior service cost	(1		)	(1		)
Net amount recognized, before tax effect	$	5,691		$	6,491

Weighted average assumptions used to determine benefit obligations:
Discount rate	4.4		%	4.4		%
Rate of compensation increase	3.0		%	3.0		%

Components of net periodic pension cost are described in the following table:



Year Ended December 31,	2016			2015			2014
(Dollars in thousands)
Components of net periodic pension cost:
Service cost	$	—		$	44		$	84
Interest cost	1,216			1,230			1,171
Amortization of actuarial loss	335			535			328
Net periodic pension cost	$	1,551		$	1,809		$	1,583

Weighted average assumptions used to determine net periodic pension cost:
Discount rate	4.4		%	4.2		%	4.8		%
Rate of compensation increase	3.0		%	3.0		%	3.0		%

The decrease in the 2016 net periodic pension cost compared to the 2015 cost was primarily due to decreased amortization of actuarial losses and decreased service cost from terminations and retirements. The increase in the 2015 net periodic pension cost compared to the 2014 cost was primarily due to increased amortization of actuarial losses offset by decreased service cost from terminations and retirements.

Benefit payments during the next ten years, which reflect applicable future service, are as follows:



Year Ended December 31,	Amount
(Dollars in thousands)

2017	$	1,203
2018	$	1,429
2019	$	1,405
2020	$	1,461
2021	$	1,433
Years 2022 to 2026	$	8,012

The following is an estimate of the components of net periodic pension cost in 2017:



Estimated Year Ended December 31,	2017
(Dollars in thousands)

Service cost	$	—
Interest cost	1,189
Amortization of actuarial loss	270
Estimated 2017 net periodic pension cost	$	1,459

Other Retirement Plans

We also contribute to employee retirement savings plans in the U.S. and Mexico that cover substantially all of our employees. The employer contribution totaled $1.4 million, $1.5 million and $2.0 million for the three years ended December 31, 2016, 2015 and 2014, respectively.