7. Employee Benefit Plans

The Company maintains a noncontributory defined benefit pension plan for all domestic nonunion employees employed on or prior to December 31, 2013, who meet certain requirements of age, length of service and hours worked per year. Plan benefits are based upon years of service and average compensation, as defined.

In July 2016, we amended our domestic noncontributory defined benefit pension plan to eliminate credit for future service and compensation increases, effective as of September 30, 2016. The amendment resulted in a curtailment of the pension plan. During the three months ended September 30, 2016, we recorded a pension curtailment gain of $6,822 in other comprehensive income and an offsetting reduction in the liability for pension benefits included in other liabilities. We also modified the 401(k) retirement savings plan, effective October 1, 2016, to include, for all domestic employees, a non-elective Company contribution of 3% of compensation and an additional discretionary contribution of up to 4% of compensation, depending on the employee’s age and years of service.

Separately, we offered a lump sum settlement option to certain pension plan participants. During the three months ended December 31, 2016, we recognized a partial settlement of the pension plan with respect to the lump sum settlement, which resulted in a charge to the consolidated statement of operations of $1,702, which we recorded as a component of selling, general and administrative expenses.

Net periodic pension expense was:

	Three Months						Six Months
For the Periods Ended December 31	2016			2015			2016			2015
Service cost – benefits earned during the period		$	284		$	751		$	845		$	1,470
Interest cost on benefit obligation			505			757			1,048			1,446
Expected return on plan assets			(843)			(846)			(1,706)			(1,588)
Amortization of net actuarial (gain) loss and prior service costs			105			508			452			892
Settlement cost			1,702			—			1,702			—
Net periodic pension expense		$	1,753		$	1,170		$	2,341		$	2,220