NOTE

– Benefit Plans:

Defined Benefit Plans

The Company is the sponsor of

two

noncontributory qualified defined benefit pension plans, providing for normal retirement at age

65,

covering all eligible employees (as defined). Periodic benefit payments on retirement are determined based on a fixed amount applied to service or determined as a percentage of earnings prior to retirement. The Company is also the sponsor of an unfunded supplemental executive retirement plan (SERP) in which several of its employees are participants. Pension plan assets for retirement benefits consist primarily of fixed income securities and common stock equities.

Effective

June 30, 2013,

the Company

longer accrues additional benefits for future service or for future increases in compensation levels for the company

’s primary defined benefit pension plan.

Effective

December 31, 2014,

the Company

longer accrues additional benefits for future service for the Company

’s hourly defined benefit plan.

he Company recognizes the funded status of its defined benefit post retirement plans in the Company’s consolidated balance sheets.

December 31

2017,

the Company’s projected benefit obligation under its supplemental executive retirement pension plan exceeded the fair value of the plans’ assets by

$8.4

million and thus the plan is underfunded. The fair value of plan assets for the noncontributory qualified defined benefit pension plans exceeded their projected benefit obligations by

$2.2

million and thus the plans are overfunded.

It is our policy to make contributions to the various plans in accordance with statutory funding requirements and any additional funding that

may

be deemed appropriate.

he following tables present the changes in the benefit obligations and the various plan assets, the funded status of the plans, and the amounts recognized in the Company's consolidated balance sheets

December

31,

2017

and

2016:

(In thousands )	December 31,
	201 7			201 6

Changes in benefit obligatio n
Benefit obligation at beginning of yea r	$	25,258		$	24,790
Service cos t		65			57
Interest cos t		965			988
Actuarial los s		3,755			1,288
Benefits pai d		(1,657	)		(1,865	)
Benefit obligation at end of yea r		28,386			25,258

Changes in plan asset s
Fair value of plan assets at beginning of yea r		15,791			15,865
Actual return on asset s		2,413			1,291
Employer contribution s		5,598			500
Benefits pai d		(1,657	)		(1,865	)
Fair value of plan assets at end of yea r		22,145			15,791

Funded status at end of yea r	$	(6,241	)	$	(9,467	)

Amounts recognized in consolidated balance sheet
Other asset s	$	2,181		$	-
Other current liabilitie s		(103	)		-
Long-term pension liabilit y		(8,319	)		(9,467	)
		(6,241	)		(9,467	)

Amounts recognized in accumulated other comprehensive income consist of :
Net actuarial los s	$	10,903		$	9,819

Information for pension plans with projecte

benefit obligation in excess of plan asset

	December 31 ,
	201 7			201 6
Projected benefit obligatio n	$	28,386		$	25,258
Fair value of plan asset s		(22,145	)		(15,791	)
	$	6,241		$	9,467

Components of net periodic benefit cost

	201 7			201 6			201 5
Service cost - benefits earned during the perio d	$	65		$	57		$	48
Interest cost on projected benefit obligatio n		965			988			951
Expected return on plan asset s		(1,218	)		(1,188	)		(1,343	)
Recognized actuarial los s		1,042			1,027			772
Settlement los s		435			445			460
Net periodic pension cost after settlement s	$	1,289		$	1,329		$	888

The pension settlement loss

es included in the table above relates to lump sum payments made to various employees upon their retirement or termination each year.

The estimated net actuarial loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next

fiscal year is

$1.1

million.

The table below presents various assumptions used in determining the benefit obligation for each year and reflects the percentages for the various plans.

eighted-average assumptions used to determine benefit obligations at

December 31,

							Long Term Rat e
	Discount Rate						of Retur n						Salary Scale
	Corp.			Plants			Corp.			Plants			Corp.		Plants
2016		4.04	%		3.91	%		8.00	%		8.00	%		N/A		N/A
2017		3.53	%		3.45	%		8.00	%		8.00	%		N/A		N/A

Weighted-average assumptions used to determine net periodic benefit cost for years ending

December 31,

							Long Term Rate
	Discount Rate						of Retur n						Salary Scale
	Corp.			Plants			Corp.			Plant s			Corp.		Plants
2015		3.86	%		3.74	%		8.00	%		8.00	%		N/A		N/A
2016		4.19	%		4.09	%		8.00	%		8.00	%		N/A		N/A
2017		4.04	%		3.91	%		8.00	%		8.00	%		N/A		N/A

The methodology used to determine the expected rate of return on the pension plan assets was based on

a review of actual returns in the past and consideration of projected returns based upon our projected asset allocation. Our strategy with respect to our investments in pension plan assets is to be invested with a long-term outlook. Therefore, the risk and return balance of our asset portfolio should reflect a long-term horizon. Our pension plan asset allocation at

December

31,

2017,

2016

and target allocation for

2018

are as follows:

	Percentage of Plan Assets at December 31,						Target Allocation
Investment description	201 7			201 6			201 8
Equity securities		52	%		68	%		52	%
Fixed income		29	%		13	%		29	%
Other		19	%		19	%		19	%
Total		100	%		100	%		100	%

The Company

plans to contribute

$0.1

million to our defined benefit pension plans in

2018.

The following table includes projected benefit payments for the years indicated:

Year	Projected Benefit Payments
	(in thousands)
2018	$	1,467
2019	$	1,652
2020	$	2,135
2021	$	1,947
2022	$	1,979
202 3-2027	$	8,620

Rabbi Trust

In connection with the Company

’s unfunded SERP, we have life insurance contracts on the lives of designated individuals. The insurance contracts associated with the SERP are held in a Rabbi trust.

The trust is the owner and beneficiary of such insurance contracts. The policies are being utilized to help offset the costs and liabilities of the SERP. The cash surrender value of the life

insurance contracts was

$2.2

million at

December 31, 2017.

We recognized an investment gain on the cash surrender value of these life insurance contracts of

$0.3

million in

2017.

The cash surrender value of these policies is included in other assets in the Consolidated Balance Sheets as of

December 31, 2017

and

2016.

2013

we initiated a Non-Qualified Deferred Compensation Plan, and we have purchased life insurance contracts on the lives of designated individuals during

2017.

The insurance contracts associated with the Non-Qualified Deferred Compensation Plan are also held in a Rabbi trust. The trust is the owner and beneficiary of such insurance contracts. The policies are being utilized to help offset the costs and liabilities of the Non-Qualified Deferred Compensation Plan. The cash surrender value of the life insurance contracts was

$2.2

million at

December 31, 2017.

The cash surrender value of these policies is included in other assets in the Consolidated Balance Sheet as of

December 31, 2017.

The liability for participant deferrals of

$2.2

million is included in other long-term liabilities in the Consolidated Balance Sheet as of

December 31, 2017.

Defined Contribution Plan

The Company provides a defined contribution plan covering qualified employees. The plan includes a provision that allows employees to make pre-tax contributions under Section

401

(k) of the Internal Revenue Code. The plan provides for the Company to make a guaranteed match equal to

25%

of each employee

’s eligible contributions. The plan also provides the Company with the option of making an additional discretionary contribution to the plan each year. Currently the discretionary contribution is set at

of eligible employees’ payroll. The Company contributions for the years ended

December 31, 2017,

2016

and

2015

were approximately

$1.0

million,

$1.1

million and

$0.9

million, respectively.